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Comment Sought on Electricity Regulation Amendment Bill

February 14, 2022

Department of Mineral Resources and Energy

Draft legislation designed to provide for the setting up of the Transmission System Operator has been drawn up.

The mineral resources and energy department published the Draft Electricity Regulation Amendment Bill in Government Gazette 45898 for comment.

Cabinet approved the publication of the draft bill for comment at a virtual cabinet meeting on 9 February 2022.

In a statement, cabinet pointed out that the proposed legislation broadens the national regulatory framework for the electricity supply industry.

The draft amendments also “align the country with the international best practice in energy and provide for the functions of a Transmission System Operator, and for a licensing framework for power generation, transmission, distribution and trading”.

The draft bill aims to:

• establish a national regulatory framework for the electricity supply industry;
• make the National Energy Regulator of South Africa the custodian and enforcer of the national electricity regulatory framework;
• provide for licences and registration as the manner in which generation, transmission, distribution, system operation, reticulation, trading and the import and export of electricity are regulated;
• provide for the establishment of the Transmission System Operator, to provide a competitive multi market structure for the electricity industry, to regulate the reticulation of electricity by municipalities; and
• provide for matters connected therewith.

According to the draft bill, the Transmission System Operator will be set up to provide for an “open market that will allow for a non-discriminatory competitive electricity trading platform”.

Comment is invited within 30 days of the date of publication.