- Electricity and Energy Minister Kgosientsho Ramokgopa has unveiled a “landmark” framework to open South Africa’s electricity market.
- According to Ramokgopa, the updated rules support the government’s broader plan to break Eskom’s monopoly and allow private players into the generation space.
Electricity and Energy Minister Kgosientsho Ramokgopa has unveiled what he has labelled a “landmark” framework to open South Africa’s electricity market to competition and private investment.
“This is a landmark moment. It brings order to the growing complexity of South Africa’s energy sector and provides a predictable, consistent, and fair regulatory framework for all players,” Ramokgopa said during a media briefing on Tuesday, May 6.
The updated regulations, published by the National Energy Regulator of South Africa (NERSA), replace an older system from 2012 and standardise the fees charged for using the country’s electricity transmission lines. This forms the foundation of what the government calls the “electricity wheeling framework.”
“Although we are launching this today, the groundwork began as far back as 2012. NERSA initiated a process to consult the public on these rules, but the sector has evolved rapidly, forcing constant revisions,” the minister explained.
“ We’ve now reached a point, in March 2025, where the rules are finalised and ready to be implemented.”
“The wheeling framework is a rules-based system that allows electricity to be generated in one part of the country and delivered to a customer in another using existing transmission and distribution networks.
“This means that we’re now making it possible for someone to generate electricity in one part of the country and supply it to an off-taker in another,” said Ramokgopa.
“The framework defines the rules for how those electrons move, from the source of generation, through the transmission lines, and then into municipal distribution networks.”
Similarly, when electricity is transported, tolls (or transmission fees) must be paid — first to the NTCSA for using national transmission lines, and then to municipalities once the power reaches local distribution zones.”
“So, if a mine in Limpopo sources power from a generator in the Northern Cape, they’ll use these ‘electric highways,’ paying the appropriate tolls as they move from national to municipal infrastructure.”
The minister called the wheeling framework the “most consequential intervention” in the energy sector to date.
“It’s going to help us remake the energy and electricity landscape in the country and bring to life what was envisaged in the Energy Action Plan that the president enacted in July 2022,” he said.
“It’s also consistent with our objective of ensuring that we are able to achieve energy security in the country. We are able to diversify generation sources and we don’t only rely on Eskom for electricity generation in the country.”
According to Ramokgopa, the updated rules support the government’s broader plan to break Eskom’s monopoly and allow private players into the generation space.
“This framework opens the door for mines, retailers, and businesses, especially those transitioning to greener energy, to buy electricity from producers of their choice, without relying solely on Eskom,” he explained.
“It removes the bottleneck of waiting for government-issued bid windows. Private companies can now directly negotiate supply agreements, and the wheeling rules outline how the electricity will be transported and what it will cost.”
He said NERSA, as the country’s energy regulator, will play a central role in ensuring the success of the new framework.