The National Energy Regulator of South Africa (NERSA) has announced a series of major regulatory approvals that mark a significant shift toward creating a competitive electricity market in the country.
Speaking at a media briefing on Thursday, the regulator confirmed that it has endorsed several foundational measures designed to reshape South Africa’s power industry over the next five years.
“These decisions recognise the profound transition underway in the electricity sector and the Energy Regulator’s central role in this new era, as enabled by the amended Electricity Regulation Act of 2006,” NERSA said. The revised law lays the groundwork for opening the market to multiple players and reducing Eskom’s dominance.
Key decisions approved by NERSA
• Issuing a Market Operator licence to the National Transmission Company South Africa (NTCSA) — a crucial step that formally empowers the NTCSA to run South Africa’s future competitive electricity market.
• Approval of Grid Capacity Allocation Rules, which will guide how different producers gain access to the national grid and ensure that available capacity is fairly allocated.
• Creation of the Electricity Market Advisory Forum (EMAF) — a body that will advise NERSA on Market Rules, the Market Code, and broader regulatory frameworks that will govern the emerging electricity market.
NERSA noted that the EMAF will also strengthen regulatory oversight and ensure that all relevant stakeholders are included as the market structure evolves.
The regulator described the establishment of the forum as a proactive step that gives industry participants a formal platform to help shape a transparent and inclusive regulatory environment. The forum’s work will support the licensing of the Market Operator and the approval of the Market Rules and Market Code.
Grid access reforms
NERSA also highlighted its 12 November 2025 approval of the Grid Capacity Allocation Rules, aimed at ensuring fair, transparent and non-discriminatory access to South Africa’s limited transmission capacity.
The new rules are designed to:
• Guarantee equitable and transparent grid access
• Improve certainty for investors and developers
• Prevent inactive or speculative projects from blocking capacity
• Maximise efficient use of existing grid infrastructure while informing future expansion
NERSA said the reforms will help accelerate the connection of viable energy projects, reduce application backlogs, streamline queue management and strengthen investor confidence as South Africa transitions toward a more open and competitive electricity market.
