NCOP seeks comment on Electricity Regulation Amendment Bill

25 Mar 2024

The national council of provinces (NCOP) seeks comment on the Electricity Regulation Amendment Bill.

The national assembly (NA) gave the green light to the bill and sent it to the NCOP for concurrence last week.

The bill was tabled in parliament in August 2023.

The mineral resources and energy department published the bill’s explanatory summary in Government Gazette 48441 in April 2023 in accordance with rule 276(1)(c) of the NA.

The bill was published for comment in February 2022.

Cabinet approved the publication of the bill for comment at a virtual cabinet meeting on 9 February 2022.

In a statement, cabinet pointed out that the proposed legislation broadens the national regulatory framework for the electricity supply industry.

The draft amendments also “align the country with the international best practice in energy and provide for the functions of a Transmission System Operator, and for a licensing framework for power generation, transmission, distribution and trading”.

Cabinet approved the proposed legislation in a meeting at the end of March 2023 for tabling in parliament.

The bill aims to amend the Electricity Regulation Act, 2006, so as to:

  • delete, amend, and insert certain definitions;
  • provide for the application of the Act;
  • provide for the National Energy Regulator to consider applications for licences and the issue of licences;
  • provide for revocation and deregistration of licences;
  • provide for additional electricity, new generation capacity and electricity infrastructure;
  • provide for the establishment, duties, powers and functions of the Transmission System Operator SOC Ltd and transitional measures;
  • provide for an open market platform that allows for competitive electricity trading;
  • assign the duties, powers and functions of the Transmission System Operator SOC Ltd to the National Transmission Company South Africa SOC Ltd;
  • provide for delegation and assignment;
  • provide for offences and penalties; and
  • provide for matters connected therewith.

The portfolio committee on mineral resources and energy adopted the bill with amendments.

In a recent statement, the chairperson of the portfolio committee, Sahlulele Luzipo, welcomed the passing of the bill by the NA.

“I am happy that the NA has passed the Bill that is responding to the people’s concerns about the need for setting parameters on the competitive behaviour of IPPs, as this will ensure that the sector delivers sustainable electricity at competitive prices”, he said.

According to Luzipo, this is important, not only for competition but also because it addresses global commitments around climate change issues with regards to the country’s transition in terms of the Just Energy Transition framework.

The select committee on land reform, environment, mineral resources and energy invites comments on the bill until 29 April 2024.

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(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)
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