- The National Transmission Company South Africa (NTCSA) has been granted a Market Operator Licence by the National Energy Regulator of South Africa (NERSA), marking a major step toward the establishment of a fair and competitive electricity market in the country.
The licence authorises NTCSA to operate and administer a new electricity market platform under the framework of the Electricity Regulation Amendment Act (ERAA). According to the company, the approval moves South Africa closer to a transparent, non-discriminatory trading environment in which a wider range of participants can compete on equal terms.
“This is a significant milestone for South Africa’s evolving electricity sector,” said NTCSA Chief Executive Officer Monde Bala. “A competitive market will unlock economic and societal benefits over time by broadening participation, stimulating investment in new capacity, and enhancing long-term system resilience. We also welcome the creation of the Electricity Market Advisory Forum (EMAF) and the Grid Capacity Allocation rules.”
Related news: How flexibility can unlock a multi-billion rand energy market in South Africa
Bala added that the NTCSA has held extensive consultations with sector stakeholders on the development of the Market Code. With the Market Operator now licensed, the company’s next task is to finalise the Market Code and submit it to NERSA for approval, creating a clear and stable rules framework for the future electricity market.
Next Steps: finalising the market code
The NTCSA said it has already completed substantial preparatory work and will now focus on finalising the Market Code for submission. The company emphasised that the proposed code incorporates broad stakeholder input and is designed to support the transition to a competitive marketplace.
NTCSA will also await the formal licence conditions and NERSA’s reasons for decision. The company noted that it stands ready to provide any additional information required by the regulator, particularly regarding potential conflicts of interest and issues of independence as outlined in the market development roadmap.
Author: Bryan Groenendaal
