KEY POINTS
- NERSA has opened public participation on its draft 2025 Electricity Trading Rules, with written submissions due on 16 January and a public hearing on 27 January.
- The proposed rules aim to create a formal framework for bilateral electricity trading, outlining duties and participation criteria for traders, generators and cross-border players.
- The process signals a broader push to modernise South Africa’s electricity market and expand customer choice amid mounting pressure for structural reform.
The National Energy Regulator of South Africa, NERSA, has taken a fresh step toward reshaping the country’s electricity market by inviting public participation on its draft Electricity Trading Rules for 2025.
The regulator has called a public hearing for 27 January, with written submissions due on 16 January, as it works to put in place a formal regime for a sector long constrained by rigid structures and limited competition.
Draft rules aim to open the door to bilateral trading and greater customer choice
NERSA first released the draft rules on 24 October. They are being framed under Section 35 of the Electricity Regulation Act of 2006, which gives the authority the power to introduce regulations governing how electricity may be traded in the country.
The process marks one of the clearest signals yet that South Africa intends to shift toward a more flexible electricity market, where buyers and sellers can contract directly, and new players can enter without being hemmed in by legacy arrangements.
The regulator says the proposed rules have been designed to create a fair, transparent structure for bilateral electricity trading.
They outline the criteria for participation, the compliance duties that traders must meet and the responsibilities placed on licensed market participants, whether they are generators, domestic traders or cross-border operators. A central thrust of the rules is the notion of customer choice, which echoes broader efforts to give large consumers more options in securing power that is both reliable and competitively priced.
NERSA has made the draft rules, the consultation paper and the hearing notice publicly available on its website, aiming to give stakeholders time to scrutinise the proposals.
The consultation process comes as pressure rises on South Africa to modernise its electricity framework, ease the strain on the national grid and clear a path for a more decentralised trading environment. It also follows growing municipal distress and ongoing calls from local government bodies for comprehensive reform of the entire electricity value chain.
The regulator is expected to consolidate feedback from the January hearing before finalising the rules later in 2025, a move that could set the tone for how electricity is traded, priced and contracted for years to come.
For industry players, the process will determine not only who can participate in future electricity markets, but also the freedoms and responsibilities that will define a more open and competitive landscape.
