National Assembly passed the Electricity Regulation Amendment Bill on Thursday, marking a significant milestone in energy sector reform. This is a move towards ending the longstanding monopoly held by Eskom in power production.

Mineral Resources and Energy Minister, Gwede Mantashe, says this bill will transform the electricity sector for the better, and have a positive impact on future generations.

The aims of the Electricity Regulation Amendment (ERA) Bill include:

• Providing an open market platform that will allow for competitive electricity trading in South Africa.
• Making provision for the creation of the Transmission Systems Operator (TSO) to act as a wheeler and dealer of electricity.
• Strengthening the role of the National Energy Regulator of South Africa (NERSA) to include powers to license entities that will implement the competitive market and have regulatory oversight during transitioning to a competitive market.
• Introducing provisions on offences and penalties to address the theft and vandalism of electricity infrastructure.

Mantashe adds that this is another milestone in the performance of the sixth administration.

“We are, therefore, convinced that the adoption of this Bill will not only give effect to Eskom unbundling reforms, but it will also encourage private sector participation in the electricity industry and thus introduce competition in the industry.”

The Cape Chamber of Commerce and Industry expressed its support for the bill, and says it anticipates a transformative impact on both the economy and private households. Cape Chamber President, Jacques Moolman, says competition in the energy market is key to addressing issues such as load shedding and reducing the long-term costs associated with power generation.

“We have been punting all along for government to allow the private sector to solve problems that state-owned enterprise monopolies cannot do efficiently. Now finally we are seeing a step in the right direction, and we look forward to working with our partners in both the public and private sector to turn policy reform into an energy-secure future.”

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