- According to the Electricity Regulation Act, 2006 (‘the ERA’), the National Energy Regulator of South Africa (NERSA) is vested with the statutory authority to formulate rules governing the electricity supply industry.
- This legislative mandate enables NERSA to promulgate rules addressing a broad spectrum of matters, including, but not limited to, tariff determination, network charges and other critical regulatory frameworks essential for the effective oversight and administration of the electricity sector.
Based on the outlined empowerment, NERSA is formulating Electricity Trading Rules, including Import and Export Trading Rules, under section 35 of the ERA. These rules are designed to create a fair and balanced framework for electricity traders, supporting the structured growth of the Electricity Supply Industry (ESI). The development process will involve thorough research, benchmarking, engagement with stakeholders, public hearings and workshops to ensure a comprehensive and inclusive approach.
Furthermore, NERSA seeks to provide clear guidelines for participation, compliance criteria and responsibilities for licensed traders, whether they own physical distribution assets or not. The initiative supports a competitive and transparent electricity market, benefiting generators, distributors and end-users, while promoting innovation and sustainable growth. The rules will be developed according to the following estimated timelines:
NERSA urges all interested parties to participate in shaping the future of electricity trading in South Africa.
Author: Bryan Groenendaal
