Energy
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Felix Dube 17 Nov 2025
Nersa approves steps to foster competitive electricity market
The National Energy Regulator of South Africa (Nersa) has taken major steps towards transforming the country’s electricity sector. During a media briefing, the regulator announced that it has approved several key decisions that will pave the way for a competitive electricity market.
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“The decisions acknowledge the significant changes expected within the electricity sector and the critical role of the energy regulator, heralded by the amended Electricity Regulation Act of 2006, which includes the establishment of a competitive electricity market over the next five years," the regulator said.
These decisions include:
- Granting a market operator licence to the National Transmission Company South Africa (NTCSA), which is essential to formally establish the entity responsible for operating the future competitive electricity market.
- Approving grid capacity allocation rules that will determine how access to the national grid is allocated to different electricity producers.
- The establishment of the Electricity Market Advisory Forum (EMAF), which will play a vital role in advising the energy regulator on market rules and the market code for the development of a competitive electricity market.
The EMAF will also support regulatory oversight of market operations, ensuring readiness and stakeholder inclusivity as the electricity market evolves.
According to the regulator, the EMAF is a proactive move to involve stakeholders in supporting Nersa in establishing a robust and inclusive regulatory environment to oversee the nascent electricity market.
This includes licensing the market operator as the NTCSA’s licensed activity and approving the market rules and market code.
On 12 November 2025, the energy regulator approved the grid capacity allocation rules to ensure fair, transparent and non-discriminatory access to limited grid capacity.
Key objectives of these rules are as follows:
- Ensure fair and transparent grid access.
- Improve planning certainty for investors and developers.
- Prevent inactive projects from reserving capacity.
- Promote optimal use of existing infrastructure and guide future development.
The benefits will include accelerated access for bankable projects, reduced backlogs, improved queue management and enhanced investor confidence.