NERSA establishes Electricity Market Advisory Forum to transform South Africa's electricity sector

The National Energy Regulator of South Africa (NERSA) has taken a significant step towards transforming the country’s electricity sector by approving the establishment of the Electricity Market Advisory Forum (EMAF). 

This new advisory body, formed under the provisions of the Electricity Regulation Act of 2006, aims to provide expert guidance on the development and regulatory oversight of South Africa’s emerging competitive electricity market.

In a statement issued on Friday, NERSA’s Head of Communications, Charles Hlebela, highlighted the importance of the EMAF in navigating the profound changes anticipated in the sector. 

“The decision recognises the transformative shift in the electricity landscape, driven by amendments to the Electricity Regulation Act (ERA), which envisage a competitive electricity market within the next five years.

“The EMAF is a strategic move to involve stakeholders early on, fostering a robust, inclusive regulatory environment to support this transition.”

Hlebela stated that the establishment of the EMAF aligns with South Africa’s broader energy reform agenda, which includes licensing a Market Operator—likely to be the National Transmission Company of South Africa (NTCSA)—and the development of comprehensive Market Rules and Codes. 

These regulations will underpin the operation of the nascent wholesale electricity market, which introduces regulatory activities that are relatively new to the South African context, such as market surveillance and enforcement.

Stakeholder Engagement and Institutional Strengthening

According to NERSA, the EMAF’s primary role will be advising NERSA on key regulatory frameworks, including the finalisation of Market Rules and Codes crucial for the market’s launch. 

It added that the forum will also provide insights on the necessary enablers for a competitive market, such as licensing procedures, operational oversight, and enforcement mechanisms.

Recognising the complexity and novelty of these activities, NERSA emphasised the importance of stakeholder consultation and institutional capacity building.

“An inclusive consultation process like the EMAF will help ensure all stakeholders are prepared for the evolving market. This initiative will foster readiness among industry players, regulators, and end-users alike, " said Hlebela.

Composition and Operational Framework

While specific details about the appointment process are yet to be finalised, NERSA indicated that the EMAF’s membership would be carefully curated to include a diverse blend of institutional representatives, industry experts, and end-user perspectives. 

The energy regulator said that the Market Rule Project Team is currently finalising the forum’s terms of reference, which will outline its scope, mandate, membership criteria, and code of conduct.

thabo.makwakwa@inl.co.za

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