This report thoroughly examines South Africa's electricity distribution regulations. It analyses both the current state of the market and the anticipated impact of the forthcoming Electricity Regulation Amendment (ERA) Bill on the sector's regulatory framework.
This comprehensive analysis empowers investors to understand the South African electricity distribution market, identify potential opportunities for their portfolio companies arising from the evolving regulatory landscape, and develop strategies to adapt to the expected increase in attractiveness for private sector investment.
Current State of the Market: Power Distribution Regulations
South Africa's electricity distribution sector is 40% controlled by Eskom and 60% by municipalities. These municipalities purchase electricity in bulk, primarily from Eskom but also from independent power producers (IPPs), and then resell it to consumers at a markup.
The National Energy Regulator of South Africa (NERSA) is mandated to regulate the electricity distribution sector. This is outlined in Section 7 of the Electricity Regulation Act (ERA) 2006 and Clause 7 of the ERA
