The South African Wholesale Electricity Market (SAWEM) has reached a key regulatory milestone with the market code formally submitted to the National Energy Regulator of South Africa (NERSA).
The submission was confirmed during the latest Operation Vulindlela fourth quarter briefing when National Treasury officials outlined progress in electricity market reform.
Acting Chief Director of Microeconomic Policy at National Treasury Aalia Cassim said the code follows extensive stakeholder consultation and technical refinement.
“The code will define the operational and governance rules for participation in SAWEM, including trading arrangements, market participation requirements and settlement processes,” Cassim said.
The market code sets out the framework required to enable competitive trading between multiple electricity producers within a structured wholesale market.
Cassim indicated that submission of the code is a prerequisite for the planned launch of SAWEM in the third quarter of 2026.
“This will represent a structural shift away from a fully regulated pricing model towards market-based price discovery,” she said.
Implementation remains subject to regulatory approval by NERSA.
