In a joint statement released on 1 July 2024, Eskom, the NTCSA, and the Department of Public Enterprises announced this achievement as a critical step in the Department's roadmap to revamp South Africa’s electricity supply industry.

“The NTCSA will own and operate the country’s national transmission system, the world-class System Operator, the grid strengthening function, energy market services, and the International Trader,” the statement read.

As a transmission system operator (TSO) and buyer, the NTCSA will expand its roles once the Electricity Regulation Amendment (ERA) bill is enacted. “The NTCSA will trade with Eskom Generation and Independent Power Producers (IPPs) using the current industry framework,” Eskom added.

The NTCSA's role as Market Operator will commence once the ERA is gazetted, creating a platform for power generators, consumers, traders, and retailers to trade, aligning South Africa’s electricity market with leading global standards.

“We are pleased to announce that NTCSA begins trading today and will focus on increasing the capacity of the national transmission grid to allow the connection of much-needed new power generation capacity,” said Eskom Board Chair, Mteto Nyati.

Nyati emphasized that the NTCSA, as a wholly-owned Eskom subsidiary, will operate under the direction of an independent board. “We look forward to contributing to a more efficient and transparent electricity industry,” he added.

NTCSA Board Chair Priscillah Mabelane reiterated the company's commitment to safe, reliable, and efficient operations. “We will ensure nondiscriminatory access to the transmission network and seek ways to accelerate the rollout of the transmission grid while fostering transparency and efficiency,” she said. “Together, we look forward to shaping a dynamic electricity market.”

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Regulatory and Structural Developments

The National Energy Regulator of South Africa (Nersa) granted the NTCSA a licence to operate the country's electricity transmission system in July 2023. Eskom welcomed this decision as a significant milestone in its unbundling programme.

Eskom also applied for a trading and import/export licence, which Nersa is considering. Six months later, Eskom announced the appointment of the NTCSA’s board of directors, comprising 12 non-executive members.

In March 2024, Nersa approved the transfer of Eskom's powers and duties related to section 34 Power Purchase Agreements with IPPs to the NTCSA and sanctioned a cost recovery letter to designate it as a buyer under the Electricity Regulation Act.

The National Council of Provinces passed the ERA Bill in mid-May 2024, aiming to create an open and competitive market for electricity trading in South Africa. This legislative move will replace Eskom’s System Operator with the TSO, transferring control of the country’s transmission grid to the NTCSA.

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