Sara-Jayne Makwala King19 December 2024 | 11:22

Power shift: New electricity laws may help lower your energy bills - expert

The Electricity Regulation Amendment Act sets out far-reaching reforms for South Africa’s electricity sector, including a competitive electricity market.

Power shift: New electricity laws may help lower your energy bills - expert

Powerlines, Electricity, Pylons, Pixabay

Africa Melane is joined by energy expert Matthew Cruz, who explains the nuances of South Africa’s new Electricity Regulation Amendment Act.

Listen below.

The Electricity Regulation Amendment Act will take effect on 1 January 2025, the Department of Energy has announced.

The new legislation will change the face of the country's energy landscape and include provisions for the establishment of a competitive electricity market.

The Act amends the Electricity Regulation Act of 2006 and aims to respond to current realities in the electricity sector. 

"It effectively allows for the democratisation, or the opening up, of our energy sector to include independent power producers."
- Matthew Cruz, Energy analyst

The amended legislation also sets out the establishment, duties, powers and functions of the Transmission System Operator (TSO).

"There will be an independent transmissions system operator... that will be accepting power onto the grid from independent power producers under the same legal framework as from Eskom... and it will be based on the price given from the generator."
- Matthew Cruz, Energy analyst

The amendments will therefore create pathways to allow for greater competition and, as a result, says Cruz, reduced energy costs.

"The price of electricity is ultimately driven down by different competitors."
- Matthew Cruz, Energy analyst
"It's ultimately to help the South African energy sector move away from the monopoly we've been seeing from Eskom."
- Matthew Cruz, Energy analyst

Scroll up to listen to the full interview from Early Breakfast with Africa Melane.