Nersa formally publishes licences for new grid company

2nd February 2024

By: Terence Creamer

Creamer Media Editor


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The National Energy Regulator of South Africa (Nersa) has officially published on its website the three licences required for the operationalisation of the National Transmission Company South Africa (NTCSA), having approved their transfer from Eskom to the NTCSA last year.

The NTCSA is in the process of being established as an independent subsidiary of Eskom Holdings as part of a far-reaching restructuring process initiated in 2019 to unbundle the vertically integrated utility into three independent businesses of transmission, distribution and generation.

While the licensing has been implemented under the current Electricity Regulation Act, the transfer is also aligned with amendments currently before lawmakers aimed at facilitating a more competitive market structure.

The separation of NTCSA has also been prioritised ahead of that of distribution, whose unbundling is also well advanced, and generation, owing to the importance of having an independent transmission, system and market operator in levelling the playing field between the Eskom generators and those of independent power producers.

The NTCSA is expected to begin operating from the start of it new financial year on April 1 and it inaugural board, chaired by Priscillah Mabelane, was appointed on January 9, leaving the securing of bondholder consent as the key remaining condition precedent for operationalisation.

On February 1, Nersa published NTCSA’s transmission licence, officially issued on July 27, 2023, as well as trading and import and export licences, issued on September 14, 2023.

In terms of the transmission licence, the NTCSA has been authorised to operate the transmission facility and to undertake the roles of Transmission Network Service Provider, System Operator, Transmission System Planner, and Grid Code Secretariat.

Through the trading and import and export licences, the NTCSA can trade with generators and customers in South Africa and import and export regionally, including through the Southern African Power Pool.

The transmission and import and export licences are valid for 25 years from the date of issuance, while the trading licence is valid for five years.

Edited by Creamer Media Reporter



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