Adopts Electricity Regulation Amendment Act
16 Aug 2024
On 16 August 2024, the President of the Republic of South Africa signed into law the Electricity Regulation Amendment Bill (Act 38 of 2024). The Act aims to amend the Electricity Regulation Act of 2006 to open the sector to greater competition and reduce energy costs, increase investment in new generation capacity to achieve energy security, and establish an independent transmission company as custodian of the national grid.
The Act contains the following key provisions among others:
• Establishment of Transmission System Operator: Provides for the establishment, duties, powers and functions of the Transmission System Operator SOC Ltd (TSO). The TSO must be established as an independent entity within 5 years. In the interim, the National Transmission Company of South Africa will act as the TSO.
• Competitive Electricity Market: Provides for an open market platform allowing competitive wholesale and retail buying/selling of electricity, introduces market operation as a new activity that can be licensed by NERSA, and requires development of a Market Code to govern the future competitive market
• Regulatory Changes: Clarifies principles for setting/approving prices, charges and tariffs; allows NERSA to consider factors like security of supply and promotion of renewable energy, and distinguishes between tariffs set by the regulator and those arising from competitive markets
• Infrastructure Protection: Introduces severe penalties for damage to and sabotage of infrastructure; fines up to R1 million ($56,910) or 5-years imprisonment for damaging infrastructure, and fines up to R5 million ($283,714.50) or 10 years imprisonment for unlawfully receiving stolen infrastructure
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Type:
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Entry and establishment (Ownership and control)
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Industry:
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Services (Electricity, gas, steam and air conditioning supply)
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Sources:
