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The Minister of Mineral Resources and Energy invites interested persons and organisations to submit written comments on the draft Electricity Regulation Amendment Bill and the draft Electricity Pricing Policy (EPP)
- The proposed amendments broaden the national regulatory framework for the electricity supply industry.
- They align the country with the international best practice in energy and provide for the functions of a Transmission System Operator, and for a licensing framework for power generation, transmission, distribution and trading.
- The revised EPP seeks to strike a balance in providing affordable electricity tariffs for low-income consumers and a cost-reflective electricity tariff for all other consumers.
- The policy provides the general pricing principles, the wholesale energy and transmission pricing structure, and the distribution and retail pricing structure.
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Electricity Regulation Amendment
- To establish a national regulatory framework for the electricity supply industry;
- to make the National Energy Regulator of South Africa the custodian and enforcer of the national electricity regulatory framework;
- to provide for licences and registration as the manner in which generation, transmission, distribution, system operation, reticulation, trading and the import and export of electricity are regulated;
- to provide for the establishment of the Transmission System Operator,
- to provide a competitive multi market structure for the electricity industry,
- to regulate the reticulation of electricity by municipalities;
- and to provide for matters connected therewith.
Need for EPP and Related Policies
There is an urgent need not only for an EPP, but also for a new electricity (or energy) policy. The requirement to unbundling of Eskom, with this being a precursor to an independent system operator and the development of energy market, the electricity pricing environment is changing.
The EPP should provide direction and principles for the formulation of electricity prices in South Africa.
The EPP should also reflect the most recent policies and legislation. The EPP should not be too detailed and should indicate broad level direction. It should also define the accountabilities/responsibilities; focus on the required outcomes and the timing aspects of the outcomes.