New Electricity Act will come into operation on January 1

President Cyril Ramaphosa has signed the Electricity Regulation Amendment Act into law, but just like the Basic Education Laws Amendments (Bela) Act, left out two sections, the definitions of "reticulation" and "distribution power systems".

Ramaphosa extended the Bela Act's implementation of two crucial provisions pertaining to the function of school governing boards by three months in order to allow for more discussions, especially with Afrikaans speaking people.

Ramaphosa proclaimed that the Act will come into operation on January 1, 2025.

The two debatable sections of the Electricity Act will be implemented at a later date to be announced by the president through a proclamation in the government gazette.

“In terms of section 33 of the Electricity Regulation Amendment Act, 2024 (Act No. 38 of 2024), I hereby fix January 1, 2025 as the date on which the said Act shall come into operation, save for amendments to the definitions of 'reticulation' and 'distribution power systems' in section 1 of that Act, which definitions shall come into operation on a date to be determined by the President by Proclamation in the Government Gazette,” the notice read.

One notable change in South Africa's energy sector is the electricity rules.

They are seen as an important step in assisting the country's energy transition and establishing a more equitable competitive environment between Eskom and independent power producers.

The National Assembly adopted these rules in March 2024, and the President signed them into law in August.

The Act seeks to provide an open market platform that would enable competitive wholesale or retail buying and selling of electricity.

It also provides for market operation as a new activity that may be licensed by the National Energy Regulator of South Africa (NERSA).

In one of his recent statements, Ramaphosa stated the regulator may consider factors such as security of supply, the diversity of supply and the promotion of renewable energy.

"The Act distinguishes between tariffs that must be set or approved by the Regulator, such as network charges, and those which are subject to a direct supply agreement or arise as an outcome of a competitive market," Ramaphosa at the time.

"To ensure a level playing field for competition between multiple electricity generators, the Act provides that the system operator shall not discriminate between different generators or customers in relation to dispatching or balancing the system, except for objectively justifiable and identifiable reasons approved by the Regulator." 

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