Johannesburg 19 August 2024 – Business Leadership South Africa (BLSA) congratulates all involved in the amendments to the Electricity Regulation Act that were signed into law by President Cyril Ramaphosa on Friday, 16 August 2024. The amendments bring into force important changes to the electricity system in South Africa, introducing a competitive market in which multiple producers can compete to sell electricity to the grid. This is the result of a major effort by many parties, in line with the broader reforms guided by the President’s Energy Action Plan.

The inputs made over recent years by Operation Vulindlela, members of the Presidency, Eskom, and contributions from various business constituencies, including Business for South Africa, has enabled the 7th administration to commit to this important reform agenda. It will improve South Africa’s trading environment, and will support rapid investment in renewable energy.

BLSA CEO, Busisiwe Mavuso, commented, “The amendments are expected to assist in shifting the immediate energy supply constraint, while supporting the transition to a low-carbon economy and, importantly, transform the electricity sector to achieve long-term energy security.  It will enable further, positive change at Eskom to improve the availability of existing supply, accelerate private investment in generation capacity, and fast-track the procurement of new generation capacity from renewables, gas, and battery storage. Specifically, it will also improve the ability for businesses and households to invest in rooftop solar. As business, these are important to improve our operating and investment environment, and we will continue to provide our full support for the urgent implementation of next steps in the reform process”.

Urgency must be directed toward the establishment of the independent transmission company as the custodian of the national grid, while the Transmission System Operator (TSO), to be established within five years, must become a key focus project.

BLSA fully supports the development of a Market Code, with rules that will govern the competitive electricity market, as well as the provision to initiate penalties for any damage or sabotage to the grid – with fines up to R1 million or five years in prison, and the fines of up to R5-million or 10 years for those who unlawfully receive cables, equipment or infrastructure

 

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