Minister of Mineral Resources and Energy has tabled the Electricity Regulation Bill that will open up the electricity market.
Minister Gwede Mantashe tabled the Bill in Parliament on Friday.
President Cyril Ramaphosa also met with the presidential economic advisory council this week where they welcomed reforms in the electricity sector and other sectors to revive the economy.
“The meeting further highlighted the importance of a comprehensive and well balanced approach in the execution of the Energy Action Plan that will promote significant levels of new investment for the fundamental modernisation and restructuring of the country’s electricity sector,” said Ramaphosa’s spokesperson Vincent Magwenya.
Cabinet approved the Electricity Regulation Bill early this year and Mantashe has now sent it to the lawmakers.
The Bill will among other things strengthen the role of the National Energy Regulation of South Africa.
It will make provisions for transitional arrangements for the creation of the transmission system operator.
The transmission system operator will provide “an electricity trading platform on a multi-market basis, and provide access to the transmission network on a non-discriminatory basis,” said the Cabinet in March.
Eskom has been providing electricity in the country for many years.
The government has roped in other players in the energy sector as the country continues to struggle with load shedding.
In his State of the Nation Address Ramaphosa said the government has to take decisive action in dealing with load shedding.
As part of the measures, they need to open up the electricity market and bring in other players.
Ramaphosa said the Electricity Regulation Bill’s aims to create a competitive electricity market, sharing similar sentiments by Mantashe who said the Bill was important for the sector.