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

      Hollard client data dumped on the dark web

      18 September 2026
      Vumatel operating profit jumps 57% as the Vodacom deal lands

      Vumatel operating profit jumps 57% as the Vodacom deal lands

      18 September 2026
      SA's two biggest MVNOs, two very different strategies - FNB Connect Capitec Connect

      Capitec and FNB are running the same MVNO playbook

      18 September 2026
      Solar and EVs in South Africa: what the numbers actually say

      Solar and EVs in South Africa: what the numbers actually say

      18 September 2026
      The AI that builds AI has gone from 1% to 26% in five months

      The AI that builds AI has gone from 1% to 26% in five months

      18 September 2026
    • World
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      TCS | Octotel's Trevor van Zyl on the fibre merger question

      TCS | Octotel’s Trevor van Zyl on the MetroFibre merger question

      16 September 2026
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
      Rubicon's EV charging network is profitable - and growing fast - Watts & Wheels

      Rubicon’s EV charging network is profitable – and growing fast

      8 September 2026
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
    • Opinion
      The end is nigh, and the shares go on sale in October - Duncan McLeod

      The end is nigh, and the shares go on sale in October

      14 September 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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
    Get breaking news on 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.

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Christo Nicholls Eskom Nersa Utility Consulting Solutions
    WhatsApp YouTube
    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

    Solar and EVs in South Africa: what the numbers actually say

    Solar and EVs in South Africa: what the numbers actually say

    18 September 2026
    Can an online school produce a scientist? CambriLearn has an independent answer

    Can an online school produce a scientist? CambriLearn has an independent answer

    9 September 2026
    R1.5-billion to switch off the sun

    R1.5-billion to switch off the sun

    7 September 2026
    Company News
    Support ended for SQL Server 2016 - and so did the Microsoft subsidy

    Support ended for SQL Server 2016 – and so did the Microsoft subsidy

    18 September 2026
    GovTech turns 20 - and sets out to build South Africa's digital future - GovTech 2026

    GovTech turns 20 and sets out to build South Africa’s digital future

    18 September 2026
    ITA presents LEO satellite solutions for the oil and gas sector - From left, Suzanette Cruz, account manager, sales B2B; Nuno de Oliveira, sales operations analyst, sales; and Andrea Aragão, marketing manager

    ITA presents LEO satellite solutions for the oil and gas sector

    18 September 2026
    Opinion
    The end is nigh, and the shares go on sale in October - Duncan McLeod

    The end is nigh, and the shares go on sale in October

    14 September 2026
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026

    Subscribe to Updates

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

    Latest Posts

    Hollard client data dumped on the dark web

    18 September 2026
    Vumatel operating profit jumps 57% as the Vodacom deal lands

    Vumatel operating profit jumps 57% as the Vodacom deal lands

    18 September 2026
    SA's two biggest MVNOs, two very different strategies - FNB Connect Capitec Connect

    Capitec and FNB are running the same MVNO playbook

    18 September 2026
    Solar and EVs in South Africa: what the numbers actually say

    Solar and EVs in South Africa: what the numbers actually say

    18 September 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}