NERSA begins process to develop Electricity Trading Rules

The National Energy Regulator of South Africa (NERSA) has initiated the development of formal Electricity Trading Rules, including provisions for import and export trading, to support the structured growth of South Africa’s evolving electricity market.

The move comes as South Africa transitions from a vertically integrated power system, historically dominated by Eskom, toward a more competitive and decentralised electricity supply industry. Electricity trading is expected to play an increasingly central role as independent power producers (IPPs), municipal distributors and private traders begin operating under market-based frameworks.

NERSA said the rules will provide a fair and transparent framework for all licensed traders whether or not they own distribution infrastructure. The guidelines will outline participation requirements, compliance obligations and the operational responsibilities of electricity traders across the value chain.

NERSA said the process will include broad stakeholder engagement with key milestones including a draft rules workshop and submission for approval in November 2025, submission of cross-border trading rules in March 2026, and final gazetting in June 2026. The regulator encouraged participation by IPPs, municipalities, system operators and large users, noting the initiative’s role in promoting competition, innovation and long-term market sustainability.