NERSA Advances South Africa’s Electricity Market Reforms With Seven Key Regulatory Projects

The National Energy Regulator of South Africa (NERSA) has released the second edition of its Electricity Regulation Projects Dashboard, providing an update on major regulatory reforms currently underway in the country’s electricity sector. Updated on July 7, 2026, the dashboard is designed to improve transparency by keeping stakeholders and the public informed about the progress of key electricity regulation projects. It also aims to encourage greater public participation as South Africa continues implementing reforms under the Electricity Regulation Act of 2006 and prepares for the establishment of the South African Wholesale Electricity Market (SAWEM).

According to NERSA, seven major regulatory and market reform projects are currently in progress, with each project at a different stage of development and following specific timelines for completion. One of the most significant initiatives is the development of Trading Rules, which will govern participation, transactions, and compliance within South Africa’s future competitive electricity market. These rules are currently in their second round of public consultation, and NERSA expects to finalize them by September 30, 2026.

Another important reform is the new Market Code prepared by the National Transmission Company South Africa (NTCSA). The proposed code has already completed a written public comment period in June, followed by a public hearing held on July 1, 2026. The regulator is now reviewing stakeholder feedback before moving toward final approval.

NERSA is also working on the Transmission Development Plan (TDP) Rules, which are intended to guide long-term transmission network planning. The project is currently awaiting input from the Ministry before entering the formal public consultation stage.

To support the restructuring of the electricity market, NERSA has proposed a Vesting Contract Framework. This framework will establish rules for approving electricity contracts between the Central Purchasing Agency and Eskom’s Generation and Distribution divisions. At the same time, the regulator is developing a Wholesale Tariff Methodology that will create a transparent pricing framework for electricity traded in the wholesale market. Draft documents for both initiatives were published on May 20, 2026. Interested stakeholders have until August 4, 2026, to submit written comments, while public hearings are scheduled for August 19, 2026.

Additional regulatory work includes the development of a Price and Tariff Rule to determine unbundled electricity prices and a new set of Key Performance Indicators (KPIs) for municipalities. These KPIs are expected to improve accountability, operational efficiency, and service delivery among local electricity distributors.

NERSA has also announced several upcoming public consultation deadlines related to electricity trading and regulatory matters. A public hearing for the trading licence application of K2025370442 (Pty) Ltd is scheduled for July 16, 2026. Another trading licence application submitted by Current Energy (Pty) Ltd will accept public comments until July 20, followed by a hearing on July 23, 2026.

In addition, stakeholders have until August 14, 2026, to submit comments on Eskom’s Regulatory Clearing Account (RCA) application for the 2024/25 financial year. A public hearing on the matter is planned for September 10, 2026.

Beyond these projects, NERSA is continuing work on a Cost of Supply Framework Review, Compliance Enforcement Rules, and a Trading Platform Algorithm Framework. The regulator has encouraged utilities, industry participants, municipalities, businesses, and members of the public to actively participate in consultations by submitting comments through its official channels. NERSA believes that broad stakeholder engagement will help create a more transparent, efficient, and competitive electricity market while supporting South Africa’s ongoing energy transition.