The National Energy Regulator of South Africa (NERSA) has approved the establishment of a new Electricity Market Advisory Forum (EMAF) to support the development of South Africa’s competitive electricity market over the next five years.
The forum, constituted under Section 5 of the Electricity Regulation Act, will advise the regulator on the finalisation and implementation of the Market Rule and Market Code, key instruments governing the structure and operation of the future market. These instruments will form the regulatory basis for the unbundled market, including the licensing of the National Transmission Company South Africa as the designated Market Operator.
According to NERSA, the EMAF is intended to ensure inclusive consultation as the regulator introduces new responsibilities such as market surveillance and enforcement – functions not previously exercised in the South African electricity context. “The EMAF is a proactive move to involve stakeholders to support the energy regulator to establish a robust and inclusive regulatory environment to oversee the nascent electricity market,” the regulator said in a statement.
NERSA is in the process of finalising the forum’s terms of reference, including the scope of its mandate, membership criteria and code of conduct. The regulator said forum members will be appointed by and report to NERSA. It will outline the process for appointing members to the EMAF in “due course”.
“It is anticipated that the EMAF’s strength will lie in the appropriate blend of institutional representation with individual expertise in establishing, operating and monitoring a functioning and competitive electricity market, including end-user perspectives,” NERSA said.
The EMAF is one of several institutional and regulatory steps expected in the lead-up to the formal establishment of the South African Wholesale Electricity Market aiming to enable open access and competitive trading in electricity.
