Electricity Amendment Act
(The Post News)- The Department of Energy confirmed that the new Electricity Regulation Amendment Act (ERA) will come into effect on 1 January 2025, as stated in the Proclamation Notice 236 of 2024 government gazette on the 18th of December 2024. Signed into law by President Cyril Ramaphosa in August 2024, the Act introduces sweeping changes to South Africa’s electricity sector, with the aim of addressing energy insecurity, reducing costs, and opening up the market to greater competition.
The Electricity Regulation Amendment Act amends the Electricity Regulation Act of 2006 to address current industry issues, such as pricing, charges, and tariffs; requiring NERSA to recover expenses; and promoting efficiency, supply security, diversity, and renewable energy.
As stated in the government’s fact sheet (2023), the Act creates a competitive market structure and promotes Eskom’s unbundling, which may be licensed by the National Energy Regulator of South Africa (NERSA). This will allow for multiple electricity producers to generate, transmit, and distribute electricity, thereby creating an open market platform for wholesale and retail electricity trading. Business Tech reported that the regulations were approved by the National Assembly in March.
The statement released by the Presidency in August explains that the Act will also mandate the establishment of the Transmission System Operator SOC Ltd. (TSO) as an independent entity responsible for managing the national grid within five years. The National Transmission Company of South Africa will temporarily assume this responsibility in the TSO.
The statement also emphasized that the act introduces severe penalties for those who damage or sabotage electricity infrastructure, a move aimed at addressing widespread theft and vandalism. Individuals who damage, remove, or destroy transmission, distribution, or reticulation equipment face fines of up to R1 million or five years’ imprisonment—or both. Similarly, those who unlawfully receive such infrastructure face fines of up to R5 million or 10 years’ imprisonment.
The new law also opens doors for private-sector participation in electricity generation, a move
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