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Cabinet approved a bill on the regulation of electricity that could see South Africa’s electricity being supplied by several suppliers.

The Electricity Regulation Amendment Bill will now be submitted to parliament and, according to Minister in the Presidency Khumbudzo Ntshavheni, the bill will be a priority.

Up until now, Eskom has been providing more than 90% of the electricity used in the country. The Bill outlines the steps on how government can buy power from other suppliers.

In a statement, Ntshavheni said the bill will strengthen the role of the National Energy Regulator of South Africa and allow measures to create a transmission system operator that includes the “provision of an electricity trading platform on a multi-market basis, and provide access to the transmission network on a non-discriminatory basis”.

It’s believed the Bill is a step in the right direction when it comes to a competitive power-supplying market.

According to the Government Gazette, the aim of the Bill is to establish a national regulatory framework for the electricity supply industry.

The Bill aims to make the National Energy Regulator of South Africa the custodian and enforcer of the national electricity regulatory framework.

It also outlines how suppliers can obtain licences and register to generate, transmit, distribute, operate, reticulate and trade in electricity.

Image credit: DW

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