NEW ELECTRICITY LAWS ON THE HORISON

The commencement date for the Electricity Regulation Amendment Act has been gazetted.

The act will commence on 1 January 2025.

There are two exceptions though. The definitions of “reticulation” and “distribution power systems” in section 1 of the Act will only come into operation on a date to be determined by the president. This will be done through a proclamation in the government gazette.

The Act requires the Transmission System Operator SOC Ltd (TSO) to be established as an independent entity within five years.

The Act also provides for an open market platform where the competitive wholesale or retail buying and selling of electricity will be available.

BusinessTech reports that the Act also notes that the National Energy Regulator of South Africa (NERSA) must, among other things, enable an efficient licensee to recover the full cost of the licensed activity, allow for a reasonable return proportioned to the risk of the licensed activity, and may provide incentives for continued improvement of technical and economic efficiency.

Another thing covered by the Act is the fining or imprisonment of people who unlawfully obtain cables, equipment or infrastructure. If found guilty, a person could be fined up to R5 million, 10 years in prison, or both.

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