THE National Energy Regulator of South Africa has approved the National Transmission Company South Africa’s (NTCSA) Market Operator Licence application. According to the state-owned transmission company, this marks an important step toward establishing a fair, competitive market for electricity in South Africa.
The purpose of the Market Operator Licence is to authorise the NTCSA to operate and administer a new electricity market platform in accordance with the Electricity Regulation Amendment Act (ERAA). The approval of the licence enables further progress toward a transparent, non-discriminatory trading environment that allows a wider range of participants to compete on equal terms.
“This is a significant milestone for South Africa’s evolving electricity sector. A competitive market will unlock economic and societal benefits over time by broadening participation, stimulating investment in new capacity, and enhancing long-term system resilience. We welcome also the creation of the Electricity Market Advisory Forum (EMAF) and the Grid Capacity Allocation rules,” said Monde Bala, chief executive officer, NTCSA.
“Our team has undertaken extensive engagement on the Market Code with stakeholders across the sector. With the Market Operator now licenced, the next step is to finalise the Market Code and submit it to the National Energy Regulator of South Africa (Nersa) for its consideration and approval, thereby establishing a clear and stable rules framework for the operation of the future electricity market,” continued Bala.
Finalisation of the Market Code and Rules
With extensive preparatory work already completed, the NTCSA will now focus on finalising the Market Code for submission to Nersa, which makes the final decision on approval.
The NTCSA said it has ensured the proposed Market Code reflects broad stakeholder input and supports the transition to a competitive marketplace.
The state-owned transmission company said it will await the licence conditions and reason for decision and will submit any further information required by Nersa relating to potential conflicts of interest and independence within the context of the market development roadmap.
