In brief, the Regulator:

• approved the Market Operator Licence for the National Transmission Company South Africa (NTCSA);
• finalised the Grid Capacity Allocation Rules (GCAR);
• constituted the Electricity Market Advisory Forum (EMAF); and
• issued a notice of public participation on the draft Electricity Trading Rules.

Taken together, these measures create clearer governance for grid access and lay the practical foundations for market-based trading alongside bilateral wheeling.

Approval of the Market Operator Licence is a pivotal step in the implementation of the Electricity Regulation Amendment Act 38 of 2024 and the transition to a multi buyer, multi seller framework. The licensed market operator will underpin the South African wholesale electricity market by administering market processes under a market code and providing a platform for balancing and settlement. While full implementation will phase in over time, the licence decision provides regulatory certainty to investors, lenders and offtakers planning for wholesale participation and for integrating trading alongside bilateral arrangements. The licence conditions will be finalised within 30 days of the approval, with the aim of addressing any conflicts of interests that may arise as a consequence of the NTSCA being a subsidiary of Eskom Holdings SOC Limited for the time being.

The NTCSA has developed the South African Wholesale Market Code, which will, as a next step, be submitted for approval by NERSA.

The GCAR will formalise readiness based allocation and queue management for scarce grid capacity. They replace the Interim GCAR introduced by Eskom. The GCAR will be gazetted and published on NERSA’s website in the coming days.

NERSA also constituted the EMAF to provide expert oversight and stakeholder input during market establishment. The forum is expected to assist with refinement of market instruments such as the South African Wholesale Market Code and to advise on transitional measures that maintain system stability as trading volumes grow. Its creation signals the Regulator’s intent to embed transparent, consultative governance as market institutions take shape. Members of EMAF are yet to be announced.

In parallel, NERSA published the draft Electricity Trading Rules and a consultation paper, with a virtual public hearing scheduled in January 2026. The draft rules outline a phased opening of trading, starting with transmission and high voltage customers, and set out licensing, reporting, metering data access, reconciliation, settlement and supplier switching protocols.

As these reforms bed down, we anticipate greater predictability on grid access, clearer pathways to market for shovel ready projects, and a progressively more competitive environment for procuring and selling electricity in South Africa.