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Draft Electricity Regulation Amendment Bill

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Schedule 2 (exemptions)

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Draft Electricity Pricing Policy (EPP)

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Notice

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The Electricty Regulation Amendment Bill proposes amendments to the Electricity Regulation Act, 2007 (Act 28 of 2007). 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 proposed amendments form part of several steps the country is taking to reform the electricity sector towards achieving a stable and secure supply of energy. They will also strengthen the performance of the electricity industry and ultimately create a conducive environment towards growing the economy.

  • 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.

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