Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Koos Bekker sells R2.5-billion in Naspers and Prosus shares

      Koos Bekker sells R2.5-billion in Naspers and Prosus shares

      23 December 2025
      Tribunal clears Vumatel's takeover of Herotel - with conditions

      Tribunal clears Vumatel’s takeover of Herotel – with conditions

      23 December 2025
      Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

      Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

      23 December 2025
      Netflix launches Afcon football show, hinting at bigger sports ambitions

      Netflix launches Afcon football show, hinting at bigger sports ambitions

      23 December 2025
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • World
      Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

      Trump space order puts the moon back at centre of US, China rivalry

      19 December 2025
      Warner Bros slams the door on Paramount

      Warner Bros slams the door on Paramount

      17 December 2025
      X moves to block bid to revive Twitter brand

      X moves to block bid to revive Twitter brand

      17 December 2025
      Oracle’s AI ambitions face scrutiny on earnings miss

      Oracle’s AI ambitions face scrutiny on earnings miss

      11 December 2025
      China will get Nvidia H200 chips - but not without paying Washington first

      China will get Nvidia H200 chips – but not without paying Washington first

      9 December 2025
    • In-depth
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      Canal+ plays hardball - and DStv viewers feel the pain

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Energy and sustainability » Nersa plan ushers in major shift in South Africa’s electricity market

    Nersa plan ushers in major shift in South Africa’s electricity market

    Nersa draft rules are set to change traditional municipal electricity revenue structures fundamentally.
    By Staff Reporter8 December 2025
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Nersa plan ushers in major shift in South Africa's electricity market

    Municipalities have until Wednesday this week to make written submission on new draft rules that will influence how they operate, budget and deliver services in the energy sector.

    This follows national energy regulator Nersa publishing its draft electricity trading rules and a consultation paper in late November. It aims to establish a fair framework for bilateral electricity trading in the country, support market development and enable greater customer choice.

    It introduces a structural shift that moves municipalities from energy retailers to regulated network service providers. While public hearings are scheduled for January, with the final rules expected to be adopted to March 2026, there are concerns that the process is being rushed with not much time for public or municipal consultations.

    If tariff restructuring is not accurate or cost-reflective, municipalities risk major revenue shortfalls

    Christo Nicholls, CEO of energy consulting company Utility Consulting Solutions, said in a statement on Friday that immediate action on both process participation and institutional readiness is critical. “Municipalities now have a historic opportunity to shape the future of electricity trading,” he said.

    Nicholls warned that complying with the draft rules requires advanced metering infrastructure capable of automated, real-time time-of-use readings and consolidated data integration across traders and generators.

    Most municipal systems are not equipped to manage multi-supplier billing, calculate wheeling credits by time-of-use period, or meet the governance requirements of the Protection of Personal Information Act.

    Municipal pressure

    The draft rules formally introduce licensed traders into the electricity market. Customers will be able to choose their electricity supplier. Municipalities will stop selling energy directly and instead manage the network. They will bill customers only for network use, services and administration.

    Nicholls said this is concerning because electricity sales currently underpin municipal budgets.

    Read: Big step forward in opening South Africa’s electricity market

    “Under the new model, this income shifts to traders. Municipalities will rely on use-of-system charges, fixed fees and administrative costs; structures many have not yet modelled or stress-tested. If tariff restructuring is not accurate or cost-reflective, municipalities risk major revenue shortfalls,” the statement said.

    The rules provide for top-up supply charges and standby capacity fees, but both require rigorous cost justification and approval from Nersa.

    According to the document, the purpose of the rules is to establish a regulatory framework for bilateral electricity trading in the retail market. They aim to facilitate customer choice, promote competition, innovation and efficiency, and ensure compliance with technical standards and legislation.

    Differentiated treatment is provided for large commercial customers and small-scale residential consumers.

    Read: Worst of electricity price hikes is over: Eskom CEO

    Phase 1 of the Nersa process is focused on transmission and high voltage customers. Phase 2 will be expanded to all customers once the market stabilises. – © 2025 NewsCentral Media

    Get breaking news from TechCentral on WhatsApp. Sign up here.



    Christo Nicholls Eskom Nersa Utility Consulting Solutions
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleIBM reportedly close to $11-billion deal to buy Confluent
    Next Article Tech jobs market in South Africa bounces back

    Related Posts

    Ramokgopa bullish on energy outlook as new projects get green light - Kgosientsho Ramokgopa

    Ramokgopa bullish on energy outlook as new projects get green light

    15 December 2025
    Eskom unveils four-subsidiary structure for future South African grid

    Eskom unveils four-subsidiary structure for future South African grid

    10 December 2025
    Green shoots are breaking through South Africa's economic static

    Green shoots are breaking through South Africa’s economic static

    8 December 2025
    Company News
    Why TechCentral is the most powerful platform for reaching IT decision makers

    Why TechCentral is the most powerful platform for reaching IT decision makers

    17 December 2025
    Business trends to watch in 2026 - Domains.co.za

    Business trends to watch in 2026

    17 December 2025
    MTN Zambia launches world's first 4G cloud smartphone solution - Huawei

    MTN Zambia launches world’s first 4G cloud smartphone solution

    17 December 2025
    Opinion
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Koos Bekker sells R2.5-billion in Naspers and Prosus shares

    Koos Bekker sells R2.5-billion in Naspers and Prosus shares

    23 December 2025
    Tribunal clears Vumatel's takeover of Herotel - with conditions

    Tribunal clears Vumatel’s takeover of Herotel – with conditions

    23 December 2025
    Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

    Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

    23 December 2025
    Netflix launches Afcon football show, hinting at bigger sports ambitions

    Netflix launches Afcon football show, hinting at bigger sports ambitions

    23 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}