Eskom to approach High Court to review decision by NERSA to grant trading licenses in its area of supply as it breaches regulators own rules

30 October 2024

Eskom has expressed concern over the recent decision by the National Energy Regulator of South Africa (NERSA) to grant trading licenses to multiple applicants, despite Eskom’s objections to allowing more than one licensee to provide electricity in the same area.

The trading licences were approved without the necessary trading rules for the industry being developed, a point acknowledged by the Regulator members during their deliberations.

The decision by the Regulator, according to Eskom, infringes upon and breaches NERSA’s own rules and the licences issued to Eskom by NERSA.

Eskom disagrees with this decision and has instructed its attorneys to initiate legal proceedings in the High Court.

Eskom, like all other participants in the electricity industry, operates based on established rules and subscribes to a rule-based transition. However, this adherence to the rules has been misinterpreted as anti-competitive behaviour, which Eskom firmly denies.

Eskom remains committed to accelerating the reform of the rules to enable a competitive energy market. As presented during the public hearing, Eskom will collaborate with various stakeholders to ensure that a competitive market is developed through a consultative legal framework.

Eskom advocates for a dynamic electricity market that ensures energy security, access and affordability, fosters growth, and delivers long-term benefits for South Africa and sub-Saharan Africa.

Issued by Eskom Media Desk, 31 October 2024