New electricity laws passed by parliament for South Africa
Minister Mantashe believes the ERA Bill will greatly change the electricity sector for the better.
The bill was passed through a majority in the National Assembly on Thursday.
The bill seeks to, amongst others:
- Provide for an open market platform that will allow for competitive electricity trading in South Africa.
- Create a Transmission Systems Operator (TSO) to manage electricity transactions.
- NERSA in South Africa should be given more power to license companies for the competitive market. They should also oversee the transition to a competitive market.
- Introduce provisions on offences and penalties to address the theft and vandalism of electricity infrastructure.
Mantashe wrote that the ERA Bill will help future generations.
The public has different opinions on creating a competitive market, setting up the TSO, and punishing those who damage electricity infrastructure. However, we believe that the new regulations will greatly change the electricity sector for future generations.
The ERA Bill went through a rigorous parliamentary process including public consultation since its introduction to the house.
Following the Batho Pele Principles, the Bill underwent thorough consultations, including public comment periods led by the DMRE and Parliament. The PCMRE also held public hearings on the ERA Bill in all provinces. We are encouraged by the strong support for the ERA Bill amendments from the people of this country.
Mantashe supports NERSA keeping the power to set prices to protect consumers from price manipulation. Mantashe agrees with NERSA having the power to set prices to prevent price manipulation and protect consumers. He also agrees with the Portfolio Committee that NERSA should step in when necessary to ensure fair prices for end-users.
The Minister said the adoption of the Bill is “yet another significant milestone in the performance of the sixth administration”.
He said that passing this Bill will help Eskom restructure and allow more private companies to enter the electricity industry. This will bring in competition.
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