Electricity Regulation Act, 2006
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- Is amended by Electricity Regulation Amendment Act, 2007
- Is amended by Electricity Regulation Amendment Act, 2024
- Amends KwaZulu and Natal Joint Services Act, 1990
- Amends National Energy Regulator Act, 2004
Electricity Regulation Act, 2006
Act 4 of 2006
- Published in Government Gazette 28992 on 5 July 2006
- Assented to on 27 June 2006
- There are multiple commencements
- [This is the version of this document from 1 January 2025.]
- [Please note that the research on this work is ongoing. Amendment, commencement and repeal information may be missing.]
Provisions | Status |
---|---|
Chapter VII, section 46 | commenced on 1 December 2004. |
Chapter I (section 1–2); Chapter II (section 3–6); Chapter III (section 7–27); Chapter IV (section 28–41); Chapter V (section 42–43); Chapter VI (section 44); Chapter VII, section 45, section 47–49 | commenced on 1 August 2006 by Proclamation R30 of 2006. |
Chapter II, section 4(b)(iii); Chapter III, section 7(1)–(4), section 9(1)–(4), section 10(1)(a)–(b), (2)(a)–(h), section 11(3)–(4), section 12(a)–(b), section 13(1)–(4), section 14(1)(c)–(z), section 15(3), section 17(3), section 18(4)–(6), section 20(2)–(5), section 21(4)(a)–(f), (5)(a)–(c), section 22(2)(a)–(b), section 23(2)(c), section 24(1)(a)–(b), (3)–(4), section 26(1)–(3); Chapter IV, section 27, section 28(1)–(3), section 41(1)–(3); Chapter V, section 30–31; Chapter VI, section 32; Chapter VII, section 33–37 | commenced on 1 May 2008. |
Chapter I, section 2A; Chapter II, section 3(2), section 4(a)(i)(dd)–(ee), (a)(v)(aa)–(bb), (a)(viii), (b)(iiA); Chapter III, section 7(1)(d)–(e), section 9(4)(c)–(e), section 14(1)(tA), section 15(1)(aA), (1A)–(1B), (4), section 17(2A), section 17A, section 18(3A), (7), section 21(3A)–(4E); Chapter V, section 30(5); Chapter VII, section 34(2)(f)–(g), (3)(c)–(f), (5)–(15), section 34A–34B, section 35(3A), section 35A–35C | not yet commenced. |
- [Amended by Electricity Regulation Amendment Act, 2007 (Act 28 of 2007) on 1 May 2008]
- [Amended by Electricity Regulation Amendment Act, 2024 (Act 38 of 2024) on 1 January 2025]
Chapter I
Interpretation
1. Definitions
In this Act, unless the context indicates otherwise—"ancillary services" means those services necessary to support the continuous and secure operation of an electric power system and necessary to maintain reliable operations of the national transmission power system and interconnected distribution power systems, including, but not limited to, those services necessary for voltage and reactive power control, automatic generation control, frequency control and black start capabilities;[definition of "ancillary services" inserted by section 1(a) of Act 38 of 2024]"balance responsible" means taking physical and financial responsibility for maintaining real-time balancing at specified metering points by submitting forecasts and participating in the energy market;[definition of "balance responsible" inserted by section 1(a) of Act 38 of 2024]"balance responsible party" means a licensed or registered generator, distributor or trader that is responsible for balance responsible activities, and which is accountable through the balancing mechanism for deviations;[definition of "balance responsible party" inserted by section 1(a) of Act 38 of 2024]"balancing mechanism" means a mechanism used by the system operator to balance the supply and demand of electricity in real time on the power system by cost effective dispatching of generation and demand resources;[definition of "balancing mechanism" inserted by section 1(a) of Act 38 of 2024]"central purchasing agency" means the entity assigned to fulfil the role of the wholesale buyer to maintain system integrity during, and after, the transition to a competitive electricity market;[definition of "central purchasing agency" inserted by section 1(a) of Act 38 of 2024]"chief executive officer" [definition of "chief executive officer" deleted by section 1(b) of Act 38 of 2024]"customer" means a person who purchases electricity or a service relating to the supply of electricity;"Department" means the department responsible for mineral resources and energy;[definition of "Department" inserted by section 1(c) of Act 38 of 2024]"Director-General" means the Director-General of the Department;[definition of "Director-General" inserted by section 1(c) of Act 38 of 2024]"direct supply agreement" means an agreement for the sale of electricity between a generation licensee or registrant or trader, acting in its capacity as such, and a customer, whether such electricity is supplied directly or through a transmission power system or a distribution power system, provided that the customer is not a transmitter, distributor or system operator or trader;[definition of "direct supply agreement" inserted by section 1(c) of Act 38 of 2024]"dispatching" means the scheduling, coordination and management of the flow of electricity produced by generation facilities into and out of a transmission power system or an interconnected distribution power system, including scheduling, coordinating and managing the start-up and shut-down of those facilities, and "dispatch" has a corresponding meaning;[definition of "dispatching" inserted by section 1(c) of Act 38 of 2024]"dispatch" has a corresponding meaning;"distribution" means the conveyance of electricity through a distribution power system excluding trading, and "distribute" and "distributing" have corresponding meanings;"distribution licensee" means a holder of a licence to operate a distribution power system;[definition of "distribution licensee" inserted by section 1(d) of Act 38 of 2024]"distribution power system" means a network for the conveyance of electricity which operates at or below a nominal voltage of 132kV but above 11kV;[definition of "distribution power system" substituted by section 1(e) of Act 38 of 2024]"distributor" means a person who distributes electricity;"end user" means a user of electricity who consumes such electricity;[definition of "end user" substituted by section 1(f) of Act 38 of 2024]"generation" means the production of electricity by any means, and "generate" and "generating" have corresponding meanings;"generation licensee" means a holder of a licence to operate a generation facility in terms of section 4(a)(i)(aa);[definition of "generation licensee" inserted by section 1(g) of Act 38 of 2024]"generator" means a person who generates electricity;"independent power producer" means any person in which an organ of state does not hold a direct or indirect controlling interest, which undertakes or intends to undertake the development of new generation capacity or the generation of electricity pursuant to a section 34 determination;[definition of "independent power producer" inserted by section 1(h) of Act 38 of 2024]"integrated resource plan" means an indicative, forward looking plan for electricity generation, which reflects national policy on electricity planning, which plan specifies the types of energy sources and technologies from which electricity may be generated and indicates the amount of electricity that is to be generated from each of such sources or technologies;[definition of "integrated resource plan" substituted by section 1(i) of Act 38 of 2024]"interconnected distribution power system" means a distribution power network that is interconnected to a transmission power system;[definition of "interconnected distribution power system" inserted by section 1(j) of Act 38 of 2024]"legacy independent power producer contract" means a power purchase agreement that has been concluded prior to the launch of the competitive electricity market;[definition of "legacy independent power producer contract" inserted by section 1(j) of Act 38 of 2024]"licence" means a licence issued under this Act;[definition of "licence" inserted by section 1(j) of Act 38 of 2024]"market operator" means a person licensed to operate a trading platform for power market participants and who takes no ownership of the energy traded;[definition of "market operator" inserted by section 1(j) of Act 38 of 2024]"market transaction" means a transaction that occurs in a competitive environment, either on a competitive trading platform or bilaterally;[definition of "market transaction" inserted by section 1(j) of Act 38 of 2024]"licensee" means the holder of a licence granted or deemed to have been granted by the Regulator under this Act;"Minister" means the Minister of Mineral Resources and Energy;[definition of "Minister" substituted by section 1(k) of Act 38 of 2024]"multi-market" means a hybrid market model accommodating market transactions, physical bilateral transactions and regulated transactions;[definition of "multi-market" inserted by section 1(l) of Act 38 of 2024]"Municipal Finance Management Act" means the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003);[definition of "Municipal Finance Management Act" inserted by section 1(a) of Act 28 of 2007]"Municipal Structures Act" means the Local Government: Municipal Structures Act, 1998 (Act No. 117 of 1998);[definition of "Municipal Structures Act" inserted by section 1(a) of Act 28 of 2007]"Municipal Systems Act" means the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000);[definition of "Municipal Systems Act" inserted by section 1(a) of Act 28 of 2007]"municipality" means a category of municipality that has executive authority over and the right to reticulate electricity within its area of jurisdiction in terms of the Municipal Structures Act;[definition of "municipality" inserted by section 1(a) of Act 28 of 2007]"National Energy Regulator Act" means the National Energy Regulator Act, 2004 (Act No. 40 of 2004);"national transmission power system" means the interconnected transmission power system used for the transmission of electricity produced by generation facilities for purposes of the supply of electricity to customers within and outside South Africa, above 132kV;[definition of "national transmission power system" inserted by section 1(m) of Act 38 of 2024]"new generation capacity" means additional electricity capacity, including capacity derived from new generation facilities, the expansion of existing facilities, or existing facilities not previously connected to the national transmission power system, or an interconnected distribution power system, other than—(a)the capacity of generation facilities for own use;(b)the capacity of generation facilities that supply electricity to end users pursuant to direct supply agreements;(c)the capacity of generation facilities referred to in item 1 of Schedule 2 to the Act; and(d)the capacity of generation facilities for export, which have been approved by the Minister;[definition of "new generation capacity" inserted by section 1(m) of Act 38 of 2024]"person" includes any organ of state as defined in section 239 of the Constitution;"physical bilateral transaction" means a transaction entered into by generators, customers and traders for energy production which involves the conclusion of a power purchase agreement to meet demand and supply as required by the system operator;[definition of "physical bilateral transaction" inserted by section 1(n) of Act 38 of 2024]"power market participants" means participants that meet the qualifying criteria set, and choose to participate, in the market platform established by the market operator;[definition of "power market participants" inserted by section 1(n) of Act 38 of 2024]"power purchase agreement" means an agreement between a generator and a buyer, for the sale and purchase of electricity or electricity generation capacity;[definition of "power purchase agreement" inserted by section 1(n) of Act 38 of 2024]"prescribe" means prescribe by regulation or rule;"price" means a charge for electricity to an end-user or customer reflecting the cost to serve that end-user or customer and may include a tariff determined by the Regulator, and a surcharge, tax, levy or duty imposed by a municipality in terms of section 229 of the Constitution of the Republic of South Africa, 1996;[definition of "price" substituted by section 1(o) of Act 38 of 2024]"registrant" means a person registered with the Regulator in terms of section 9;[definition of "registrant" inserted by section 1(p) of Act 38 of 2024]"regulated transaction" means a transaction that requires regulatory approval or oversight, specifically where the exercise of market power is likely or evident (for example, network charges);[definition of "regulated transaction" inserted by section 1(p) of Act 38 of 2024]"Regulator" means the National Energy Regulator established by section 3 of the National Energy Regulator Act;"reticulation" means trading or distribution of electricity and includes services associated therewith;[definition of "reticulation" inserted by section 1(p) of Act 28 of 2007]"service delivery agreement" means an agreement between a municipality and an institution or person providing electricity reticulation, either for its own account or on behalf of the municipality;[definition of "service delivery agreement" inserted by section 1(p) of Act 28 of 2007]"service provider" means a person or institution or any combination of persons and institutions which provide a municipal service in terms of a service delivery agreement;[definition of "service provider" inserted by section 1(p) of Act 28 of 2007]"supply" means trading, system operation, export and import and the generation, transmission or distribution of electricity;[definition of "supply" substituted by section 1(q) of Act 38 of 2024]"system operation" means the operation of the national transmission power system in real time, including dispatching, scheduling of transmission and ancillary services, generation outage coordination, transmission congestion management and coordination, and such other activities as may be required for the reliable and efficient operation of the national transmission power system;[definition of "system operation" inserted by section 1(r) of Act 38 of 2024]"system operator" means the person who is responsible for system operation;[definition of "system operator" inserted by section 1(r) of Act 38 of 2024]"tariff" means a charge to a customer or end user in respect of a licensed activity or registered activity, other than a surcharge, tax, levy or duty imposed by a municipality in terms of section 229 of the Constitution of the Republic of South Africa, 1996;[definition of "tariff" substituted by section 1(s) of Act 38 of 2024]"trader" means a person who trades in electricity;[definition of "trader" inserted by section 1(t) of Act 38 of 2024]"trading" means the wholesale or retail buying and selling of electricity, and "trade" has a corresponding meaning;[definition of "trading" substituted by section 1(u) of Act 38 of 2024]"trading platform" means a platform where power market participants conduct trade;[definition of "trading platform" inserted by section 1(v) of Act 38 of 2024]"transmission" means the conveyance of electricity through a transmission power system, excluding system operation and trading, and "transmit" and "transmitting" have corresponding meanings;[definition of "transmission" substituted by section 1(w) of Act 38 of 2024]"transmission development plan" means the plan for the development of the national transmission power system referred to in sections 34(6)(b) and 35(3A);[definition of "transmission development plan" inserted by section 1(x) of Act 38 of 2024]"transmission power system" means a network for the conveyance of electricity which operates above a nominal voltage of 132kV including assets that are approved by the Regulator to be part of the transmission power system;[definition of "transmission power system" substituted by section 1(y) of Act 38 of 2024]"Transmission System Operator SOC Ltd" means a juristic person established in terms of section 34A(1);[definition of "Transmission System Operator SOC Ltd" inserted by section 1(z) of Act 38 of 2024]"transmitter" means a person who manages and maintains a transmission power system;[definition of "transmitter" inserted by section 1(zA) of Act 38 of 2024]"this Act" includes any regulation or rule made or issued in terms thereof; and[definition of "this Act" inserted by section 1(zA) of Act 38 of 2024]"vertically integrated licensee" means a person who holds one or more of the licences listed in section 4(a)(i), but excludes a person who only holds licences in terms of section 4(a)(i)(bb) and (cc); and[definition of "vertically integrated licensee" added by section 1(zB) of Act 38 of 2024]"vesting contract" means a contract or other financial arrangement between the National Transmission Company South Africa SOC Ltd and an Eskom generator or a distribution licensee, as the case requires, for the sale of a specified amount of electricity at a price determined by the Regulator as a mechanism to facilitate the transition to a competitive market.[definition of "vesting contract" added by section 1(zB) of Act 38 of 2024]2. Objects of Act
The objects of this Act are to—2A. Application of Act
Chapter II
Oversight of electricity industry
3. Regulator
4. Powers and duties of Regulator
The Regulator—5. Advisory forums
The Regulator may appoint forums consisting of as many members of the Regulator, employees of the Regulator and other persons as may be necessary to advise the Regulator in general or on a particular matter.6. Customer and end user forums
Chapter III
Electricity licences and registration
7. Activities requiring licensing
8. Certain activities not licensed
The Minister may, after consultation with the Regulator and stakeholders in the advisory forum referred to in section 5, determine by notice in the Gazette that any activity contemplated in section 7(1), need no longer be a licensed activity, from the date set out in such notice.[section 8 previously section 9, amended by section 3 and section 16(b) of Act 28 of 2007 and substituted by section 8 of Act 38 of 2024]9. Registration
10. Application for licence
11. Advertising of licence application
12. Information to be supplied
Before considering an application for a licence in terms of this Act, the Regulator—13. Finalisation of application
14. Conditions of licence
15. Tariff principles
16. Amendment of licence
17. Revocation of licence on application
17A. Revocation and deregistration
18. Contraventions of licence
19. Order by court
20. Renewal of licence
21. Powers and duties of licensee
22. Powers of entry and inspection
23. Electricity infrastructure not fixtures
24. Rights over roads or streets
[heading substituted by section 22(a) of Act 38 of 2024]25. Liability of licensee for damage or injury
In any civil proceedings against a licensee arising out of damage or injury caused by induction or electrolysis or in any other manner by means of electricity generated, transmitted or distributed by a licensee, such damage or injury is deemed to have been caused by the negligence of the licensee, unless there is credible evidence to the contrary.[section 25, previously section 26, renumbered by section 16(b) of Act 28 of 2007]26. Expropriation
Chapter IV
Reticulation
[Chapter IV inserted by section 10 of Act 28 of 2007]27. Duties of municipalities
Each municipality must exercise its executive authority and perform its duty by—28. Selection and appointment of external service providers
29. Key performance indicators
Chapter V
Resolution of disputes and remedies
30. Resolution of disputes by Regulator
31. Remedies against decisions of Regulator
Section 10(3) of the National Energy Regulator Act applies to every decision by the Regulator taken in terms of this Act, except where this Act provides otherwise or where the Regulator sits as a tribunal, in which case section 10(4) of that Act applies.[section 31, previously section 43, renumbered by section 16(c) of Act 28 of 2007]Chapter VI
Investigations
32. Investigations
Chapter VII
General provisions
33. Entry, inspection and information gathering by Regulator
34. Additional electricity, new generation capacity and electricity transmission infrastructure
[heading substituted by section 27(a) of Act 38 of 2024]34A. Establishment, duties, powers and functions of Transmission System Operator SOC Limited
34B. Powers and functions of transmitter, system operator, market operator and central purchasing agency
35. Regulations, rules, guidelines, directives and codes of conduct and practice
35A. Delegation and assignment
35B. Offences and penalties
35C. Transitional provisions
36. Repeal of laws and savings
37. Short title and commencement
History of this document
01 January 2025 this version
01 May 2008
01 August 2006
05 July 2006
27 June 2006
01 December 2004
Uncommenced provisions
-
2A. Application of Act
2A. Application of Act
(1)This Act is applicable to the generation, transmission, distribution, reticulation, system operation, trading, and import and export, of electricity activities, and to persons undertaking such activities. (2)The Act is not applicable to the operation of generation facilities with or without battery storage— (a)for the sole purpose of providing standby or back-up electricity; (b)where the facility, irrespective of capacity (megawatts), does not have a point of connection to the facility; or (c)with a capacity of not more than 100 kilowatts, which complies with the code, has a point of connection and is subject to the distributor’s prescribed conditions relating to the continued use of the point of connection. (3)For the purposes of subsection (2), the Regulator shall prescribe the manner in which the distributor shall keep a register of each facility. [section 2A inserted by section 3 of Act 38 of 2024] -
3. Regulator (2)
(2)The Regulator has regulatory authority over persons undertaking activities, which are subject to this Act and has the powers to issue, amend, withdraw, suspend and revoke licences and determine the registration, revocation and deregistration of persons or activities in accordance with this Act. -
4. Powers and duties of Regulator (a) (i) (dd)
(dd)market operator; or -
4. Powers and duties of Regulator (a) (i) (ee)
(ee)system operator, -
4. Powers and duties of Regulator (a) (v) (aa)
(aa)establish and manage monitoring and information systems and a national information system, relating to matters within the Regulator’s jurisdiction; and -
4. Powers and duties of Regulator (a) (v) (bb)
(bb)co-ordinate the integration thereof with other relevant information systems; -
4. Powers and duties of Regulator (a) (viii)
(viii)exercise any power or perform any duty conferred or imposed on it under this Act or any other law;[suparagraph (viii) added by section 5(e) of Act 38 of 2024] -
4. Powers and duties of Regulator (b) (iiA)
(iiA)at its own instance, or following an investigation of a complaint— (aa)determine whether any person is engaged in an activity requiring a licence in terms of section 7, or registration in terms of section 9, without that person holding a licence or registration certificate in respect of that activity; and (bb)direct any person engaged in an activity requiring a licence in terms of section 7 or registration in terms of section 9, who is not in possession of the necessary licence or registration certificate, to cease such activity; or -
7. Activities requiring licensing (1) (d)
(d)be a market operator; or -
7. Activities requiring licensing (1) (e)
(e)engage in system operation; -
9. Registration (4) (c)
(c)compliance with the technical codes that may be applicable from time to time;[paragraph (c) added by section 9(c) of Act 38 of 2024] -
9. Registration (4) (d)
(d)compliance with regulatory requirements necessary for the sustained operation of the national transmission power system and interconnected distribution power systems; and[paragraph (d) added by section 9(c) of Act 38 of 2024] -
9. Registration (4) (e)
(e)payment of fees imposed by licensees for granting registrants access to their network.[paragraph (e) added by section 9(c) of Act 38 of 2024] -
14. Conditions of licence (1) (tA)
(tA)allowing the licensee to sub-contract the performance of the licensed functions, including allowing for the licensee to subcontract the maintenance and operation of the generation, transmission or distribution facilities;[paragraph (tA) inserted by section 14(e) of Act 38 of 2024] -
15. Tariff principles (1) (aA)
(aA)must allow for a reasonable return proportionate to the risk of the licensed activity; -
15. Tariff principles (1A)
(1A)Tariff determinations must take into account all planned projects reflected in the integrated resource plan and the transmission development plan insofar as these projects shall impact on the costs of the licensee, for the period during which the tariff shall apply.[subsection (1A) inserted by section 15(b) of Act 38 of 2024] -
15. Tariff principles (1B)
(1B)In the case of vertically integrated licensees, the Regulator must set or approve separate tariffs for each of the licensed activities listed in section 4(a)(i).[subsection (1B) inserted by section 15(b) of Act 38 of 2024] -
15. Tariff principles (4)
(4)Notwithstanding subsection (2), a licensee may charge a customer a tariff which has not been set or approved by the Regulator where such tariff is charged pursuant to a direct supply agreement or arises as an outcome of a competitive market.[subsection (4) added by section 15(d) of Act 38 of 2024] -
17. Revocation of licence on application (2A)
(2A)The Regulator may— (a)if it is alleged in terms of section 18(1) read with section (3A)(d), or (b)on its own assessment, revoke a license if a licensee has contravened or failed to comply with a license condition or any provision of this Act.[subsection (2A) inserted by section 17 of Act 38 of 2024] -
17A. Revocation and deregistration
17A. Revocation and deregistration
(1)The Regulator may vary, suspend or remove any registration on receipt of an application by a registrant or on application by a third party or upon violation of the applicable regulatory requirements. (2)The Regulator may revoke a registration under the following circumstances: (a)On application by a registrant; (b)where the facility is no longer required; or (c)when the conditions for registration as contemplated in section 9(4) are not met. (3)A registrant must, in the circumstances contemplated in subsection (2)(a), give the Regulator at least six months’ notice, in writing, of its intention to cease activities, unless the Regulator determines otherwise. [section 17A inserted by section 18 of Act 38 of 2024] -
18. Contraventions of licence (3A)
(3A)If the tribunal finds that the allegation contemplated in subsection (3) is correct it may: (a)serve a notice on the licensee directing the licensee to comply with the licence condition; (b)impose a penalty contemplated in subsection (4) or any other penalty it deems appropriate; (c)recommend the amendment of a licence condition; or (d)recommend the revocation of the licence. [subsection (3A) inserted by Act 38 of 2024] -
18. Contraventions of licence (7)
(7)The Regulator must prescribe tribunal rules or procedures.[subsection (7) added by Act 38 of 2024] -
21. Powers and duties of licensee (3A)
(3A)The system operator shall not discriminate between different generators or customers in relation to dispatching or balancing the system, except for objectively justifiable and identifiable reasons approved by the Regulator.[subsection (3A) inserted by section 20(c) of Act 38 of 2024] -
21. Powers and duties of licensee (4A)
(4A)Third party access to the transmission and distribution power system must be based on published tariffs, applicable to all eligible customers, and applied objectively and without discrimination between the system users.[subsection (4A) inserted by section 20(g) of Act 38 of 2024] -
21. Powers and duties of licensee (4B)
(4B)A transmission or distribution licensee may refuse access only where it lacks the necessary capacity, with written reasons given for such refusal.[subsection (4B) inserted by section 20(g) of Act 38 of 2024] -
21. Powers and duties of licensee (4C)
(4C)Any party requesting information on the network capacity and measures that would be necessary to reinforce the network, may be charged a reasonable fee for the costs of providing such information.[subsection (4C) inserted by section 20(g) of Act 38 of 2024] -
21. Powers and duties of licensee (4D)
(4D)Transmission and distribution licensees shall procure the energy they use to cover energy losses and reserve capacity in their system according to transparent, non-discriminatory and market-based procedures.[subsection (4D) inserted by section 20(g) of Act 38 of 2024] -
21. Powers and duties of licensee (4E)
(4E)Rules adopted by the Transmission System Operator SOC Ltd for balancing the national transmission power system and the interconnected distribution power systems, including the rules for charging system users of their networks for energy imbalance, shall be objective, transparent and non-discriminatory.[subsection (4E) inserted by section 20(g) of Act 38 of 2024] -
30. Resolution of disputes by Regulator (5)
(5)When acting as arbitrator, the Regulator or the person contemplated in subsection (2) must issue a decision on the matter, in writing, and such decision is binding on the parties to the dispute.[subsection (5) added by section 24(e) of Act 38 of 2024] -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (2) (f)
(f)where applicable, the conducting of the procurement process for the acquisition of the electricity so produced; and -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (2) (g)
(g)the extent to which the new generation capacity contemplated in paragraph (a) may be established by independent power producers and the electricity so produced supplied to customers pursuant to multiple supply agreements. -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (3) (c)
(c)whether the person who constructs, manages, maintains or operates the required electricity transmission infrastructure shall own that infrastructure; -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (3) (d)
(d)whether the electricity transmission infrastructure, or the electricity supplied by means of such infrastructure, shall be purchased or used by a person designated in the determination as the buyer or user; -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (3) (e)
(e)whether the electricity transmission infrastructure, or electricity supplied by means of the infrastructure, may only be sold to or used by the buyer or user referred to in paragraph (d); and -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (3) (f)
(f)where applicable, the conducting of the procurement process for the establishment of the required electricity transmission infrastructure. -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (5)
(5)A determination contemplated in subsection (1)(a) may be combined with a determination contemplated in subsection (1)(b).[subsection (5) added by section 27(g) of Act 38 of 2024] -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (6)
(6)In making a determination in terms of this section, the Minister— (a)must have regard to the content of the integrated resource plan and the transmission development plan, as the case may be; and (b)may deviate from the integrated resource plan or transmission development plan in an emergency or if it is necessary to do so in the national interest. [subsection (6) added by section 27(g) of Act 38 of 2024] -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (7)
(7)Prior to deviating from the integrated resource plan or transmission development plan as envisaged in subsection (6)(b), the Minister must publish a notice in the Gazette, inviting the public to comment on the proposed deviation.[subsection (7) added by section 27(g) of Act 38 of 2024] -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (8)
(8)If it is reasonable and justifiable in the circumstances, the Minister may depart from the provisions of subsection (7).[subsection (8) added by section 27(g) of Act 38 of 2024] -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (9)
(9)The Minister has such powers as may be necessary or incidental to giving effect to a determination referred to in subsection (1)(a) or (1)(b), including the power to— (a)undertake such management and development activities, including entering into contracts, as may be necessary to prepare and conduct procurement processes for the development, construction, commissioning and operation of electricity generation facilities and electricity transmission infrastructure; (b)purchase, hire or let anything or acquire or grant any right or incur obligations for or on behalf of the State or prospective participant in any relevant procurement process for the purpose of transferring such thing or right to a successful participant; and (c)subject to the Public Finance Management Act, 1999 (Act No. 1 of 1999), issue any guarantee, indemnity or security or enter into any other transaction that binds the State to any future financial commitment that is necessary or expedient for the development, construction, commissioning or effective operation of public or privately owned generation facilities or electricity transmission infrastructure. [subsection (9) added by section 27(g) of Act 38 of 2024] -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (10)
(10)The Regulator, in exercising its powers and performing its functions under this Act— (a)is bound by any determination made by the Minister in terms of subsection (1)(a) or (b); and (b)may issue a licence or registration certificate for the activities listed in section 4(a)(i) in the absence of a determination made by the Minister in terms of subsection (1)(a) or (1)(b). [subsection (10) added by section 27(g) of Act 38 of 2024] -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (11)
(11)In exercising the powers under this section the Minister is not bound by the State Tender Board Act, 1968 (Act No. 86 of 1968).[subsection (11) added by section 27(g) of Act 38 of 2024] -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (12)
(12)A determination contemplated in this section may establish an energy infrastructure project, which includes not only new generation capacity and new electricity transmission infrastructure, but also other interconnected or related infrastructure, installations, buildings, structures, facilities, systems, services or processes, including gas infrastructure, in which case, subsections (3) and (9) shall, with the necessary changes, apply to such infrastructure, installations, buildings, structures, facilities, systems, services or processes.[subsection (12) added by section 27(g) of Act 38 of 2024] -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (13)
(13)The Regulator must, in respect of an energy infrastructure project contemplated in subsection (12), exercise its powers and perform its functions under this Act and any other statute in a coordinated and integrated manner.[subsection (13) added by section 27(g) of Act 38 of 2024] -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (14)
(14)The Minister may, in writing, direct the Regulator to conclude a memorandum of understanding with any other regulator in order to facilitate the coordinated establishment of an energy infrastructure project contemplated in subsection (12).[subsection (14) added by section 27(g) of Act 38 of 2024] -
34. Additional electricity, new generation capacity and electricity transmission infrastructure (15)
(15)For purposes of this section, "electricity transmission infrastructure" means transmission facilities or any other electricity infrastructure designated by the Minister by notice in the Gazette for this purpose, excluding electricity generation facilities.[subsection (15) added by section 27(g) of Act 38 of 2024] -
34A. Establishment, duties, powers and functions of Transmission System Operator SOC Limited
34A. Establishment, duties, powers and functions of Transmission System Operator SOC Limited
(1)Subject to section 35C(1), the Minister of Public Enterprises must establish a juristic person to be known as the "Transmission System Operator SOC Limited" in order to provide an open market platform that shall allow for competitive electricity trading. (2)The duties, powers and functions of the Transmission System Operator SOC Limited referred to in subsection (1) shall include the following: [section 34A inserted by section 28 of Act 38 of 2024](a)To be a transmitter; (b)system operation; (c)to be a market operator; and (d)to be a central purchasing agency. -
34B. Powers and functions of transmitter, system operator, market operator and central purchasing agency
34B. Powers and functions of transmitter, system operator, market operator and central purchasing agency
(1)A transmitter must— (a)implement infrastructure plans for the transmission network, incorporating the capacity and demand and outlook to ensure reliable grid services to generators and customers; (b)maintain and operate the transmission grid and coordinate outages; (c)develop and implement transmission use of system charges and transmission charges subject to the approval of the Regulator; (d)provide non-discriminatory access to the transmission power system to third parties; and (e)develop the transmission development plan. (2)A system operator must— (a)operate the integrated power system in a safe, secure, efficient and sustainable way; (b)plan in respect of the development, strengthening, upgrading and refurbishment of the national transmission power system; (c)perform forecasting and dispatch scheduling; and (d)co-operate with the Minister and any person acting as a procurer in terms of section 34, to facilitate the establishment of any new generation capacity or electricity transmission infrastructure, or acquisition of electricity, that is the subject of a section 34 determination. (3)A market operator must— (a)provide for a transparent, non-discriminatory trading platform, approved by the Regulator, for power market participants to trade; (b)develop a market code and rules, including qualifying criteria for power market participants approved by the Regulator; and (c)the market code shall include, but is not limited to, provisions related to the following: (i)The different types of markets necessary to ensure effective and secure operation of the industry including both physical and financial transactions between power market participants in the appropriate timescales, to enable the market transactions and regulated transactions; (ii)the method of operation, as well as development of systems, processes and procedures for the implementation of these markets; (iii)provisions for reconciliation in order to identify imbalances between scheduled and actual production, the consumption of electricity by power market participants, and the allocation of costs of remedial action and penalties where applicable; (iv)the qualifying criteria for power market participants, including financial and prudential requirements; (v)governance of the market code, including mechanisms for power market participants and stakeholders to propose changes to the code; and (vi)any other aspects necessary for effective and efficient market operation. (4)A transparent, non-discriminatory trading platform and trading mechanism for power market participants referred to in subsection (3)(a) is envisaged to be a competitive multi-market structure, which provides for market transactions, physical bilateral transactions and regulated transactions. (5)A central purchasing agency must— [section 34B inserted by section 28 of Act 38 of 2024](a)conclude and enter into transaction agreements as may be necessary for the procurement of electricity, including sufficient capacity and energy supply; (b)in line with the Republic’s international obligations, agreements and undertakings— (i)conclude electricity import agreements that ensure a reliable and stable supply of electricity for customers within the Republic; and (ii)conclude electricity export agreements, having regard to the interests of the Republic over the long term; (c)in relation to regulated transactions— (i)be the buyer for existing Independent Power Producer power purchase agreements, as well as new Independent Power Producer power purchase agreements, as required by Ministerial determination; (ii)conclude power purchase agreements with each Eskom generator to cover capacity payments and ancillary services for a period approved by the Regulator; (iii)conclude vesting contracts with Eskom generators and distribution licensees, as the case requires, approved by the Regulator, to manage the transition to a competitive market; (iv)trade all energy purchased under the legacy independent power producer contracts and act as the balance responsible party on behalf of the legacy independent power producer contracts. -
35. Regulations, rules, guidelines, directives and codes of conduct and practice (3A)
(3A)The Regulator must, after consultation with the Minister, make rules regarding the content of the transmission development plan, including rules relating to the inclusion in the plan of an analysis of grid connection capacity, reasonable timelines for the expansion and strengthening of the national transmission power system and the estimated cost of the transmission development, strengthening, upgrading and refurbishment envisaged in the plan.[subsection (3A) inserted by section 29(d) of Act 38 of 2024] -
35A. Delegation and assignment
35A. Delegation and assignment
(1)The Minister may, subject to such conditions he or she may impose, in writing, delegate any power conferred on him or her under this Act, except a power to make regulations, and may assign any duty so imposed on him or her, to the Director-General or any other officer in the Department. (2)The Minister is not divested of any power or exempted from any duty delegated or assigned in terms of subsection (1). (3)The Minister may at any time— (a)amend or withdraw a delegation or assignment made in terms of subsection (1); or (b)subject to subsection (4), withdraw or amend any decision made by a person exercising a power or performing a duty delegated or assigned in terms of subsection (1). (4)A decision made by a delegatee or assignee may not be withdrawn in terms of subsection (3)(b) where it confers a right or entitlement on any third party. [section 35A inserted by section 30 of Act 38 of 2024] -
35B. Offences and penalties
35B. Offences and penalties
(1)Any person who— (a)contravenes the provisions of section 7(1); (b)fails to comply with a direction issued in terms of section 4(b)(iiA)(bb); (c)obstructs or hinders any person authorised in terms of section 33(1) in the exercise of powers under section 33; (d)makes any false or misleading statement to the Regulator in connection with any matter contemplated in this Act; or (e)without lawful authority, damages, removes or destroys any transmission, distribution or reticulation cable, equipment or infrastructure, shall be guilty of an offence.(2)Any person who is convicted of an offence by a court of law referred to in subsection (1) shall be liable to a fine not exceeding R1 000 000,00 or to imprisonment for a period not exceeding five years or to both such fine and imprisonment. (3)Despite anything to the contrary contained in any other law, a Magistrates Court has jurisdiction to impose any penalty provided for in this Act. (4)Any person who, in any manner, without lawful authority, acquires or receives into his possession from any other person transmission, distribution or reticulation cable, equipment or infrastructure without having reasonable cause for believing, at the time of such acquisition or receipt, that such transmission, distribution or reticulation cable, equipment or infrastructure is the property of the person from whom he acquires or receives it or that such person has been duly authorized by the owner thereof to deal with it or dispose of it, shall be guilty of an offence. (5)Any person who is convicted of an offence referred to in subsection (4) shall be liable to a fine not exceeding R5 000 000,00 or to imprisonment for a period not exceeding ten years or to both such fine and imprisonment. [section 35B inserted by section 30 of Act 38 of 2024] -
35C. Transitional provisions
35C. Transitional provisions
(1)From the effective date of this Act, until the date that the Transmission System Operator SOC Limited referred to in section 34A(1) is established, which period shall not be longer than five years, the National Transmission Company South Africa SOC Limited— (a)is for all purposes deemed to be the Transmission System Operator SOC Ltd; (b)must perform the duties, powers and functions of the Transmission System Operator SOC Ltd; and (c)in exercising its duties, must do so in a manner that is independent and ensures fair and equitable treatment of all system users. (2)During the period of transition referred to in subsection (1), the Regulator shall exercise regulatory oversight and facilitate the transition to a competitive market. (3)Notwithstanding the provisions of subsection (1), the Regulator must, subject to the conditions determined by the Regulator, upon application by the National Transmission Company South Africa SOC Limited and after satisfying itself regarding the appropriateness thereof, issue the relevant licence to the National Transmission Company South Africa SOC Limited for the performance of the duties, powers and functions of the Transmission System Operator SOC Ltd as provided for in section 34A(2). [section 35C inserted by section 30 of Act 38 of 2024]
Cited documents 12
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Citizenship and Immigration
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Education
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Environment, Climate and Wildlife
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Health and Food Safety
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Human Rights
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International Law
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Labour and Employment
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Public administration
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Human Rights
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Infrastructure and Transportation
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Labour and Employment
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Public administration
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Environment, Climate and Wildlife
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Infrastructure and Transportation
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Public administration
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Finance and Money
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Environment, Climate and Wildlife
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Finance and Money
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Documents citing this one 337
Gazette
279Judgment
46
Reported
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Reported
Constitutional law – section 41 of the Constitution of the Republic of South Africa, 1996 – principles of cooperative government and intergovernmental relations – all spheres of government and all organs of state obliged to make reasonable effort in good faith to settle intergovernmental disputes – Intergovernmental Relations Framework Act 13 of 2005, ss 40 and 41. Electricity – Electricity Regulation Act 4 of 2006, s 21(5) – interruption of electricity supply by Eskom to municipalities in financial crises and unable to pay for electricity supply – municipalities constitutionally and statutorily obliged to provide basic services, inclusive of electricity, to communities – whether Eskom entitled to interrupt electricity supply due to non-payment. Local Government – Local Government: Municipal Structures Act 117 of 1998 – Local Government: Municipal Systems Act 32 of 2000 – Local Government: Municipal Finance Management Act 56 of 2003.
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Spoliation – rights protectable by mandament van spolie – whether |
Reported
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Electricity Regulation Act 4 of 2006 – interdict and counter-application – municipality’s obligation to pay for electricity supplied to it by Eskom – interdict to prevent the interruption of the electricity supply for non-payment – counter-application to compel payment as agreed to by the municipality. |
Practice – pleadings – application for money judgment for arrear levies alleged to be due and payable to a body corporate constituted under section 2 (1) of the Sectional Titles Schemes Management Act 8 of 2011 – compliance with the applicable Management or Conduct Rules must appear from the body corporate’s papers before the money judgment can be granted. Practice – pleadings – application for an order disconnecting or limiting water and electricity supplied to a body corporate member’s unit until judgment debt is satisfied – relief affecting constitutional rights – relief not competent unless authorised by an applicable Management or Conduct Rule or agreed to by the body corporate member - Management Rule, Conduct Rule or agreement must be specifically pleaded, failing which no relief can be granted. |
Court confirms Rule Nisi for unlawful electricity disconnection due to inadequate notice and quasi-possession rights.
Electricity supply – Mandament van spolie – Confirmation of Rule Nisi – Quasi-possession and procedural requirements for notice
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The practice of "loadshedding" by Eskom to save the integrity of the national energy grid impacts prejudicially on, inter alia, Constitutional rights to health, security and education. The infringement of these rights justify judicial intervention, but to such a limited extent that the principle regarding the separation of powers is not overstepped. |
By-law
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Repealed
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Energy and Natural Resources
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Environment, Climate and Wildlife
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Energy and Natural Resources
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Environment, Climate and Wildlife
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Energy and Natural Resources
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Environment, Climate and Wildlife
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Energy and Natural Resources
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Environment, Climate and Wildlife
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Infrastructure and Transportation
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Government Notice
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Energy and Natural Resources
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Repealed
Environment, Climate and Wildlife
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Infrastructure and Transportation
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Business, Trade and Industry
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Environment, Climate and Wildlife
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Finance and Money
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Energy and Natural Resources
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Environment, Climate and Wildlife
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Government Notice 6263 of 2025 |
Energy and Natural Resources
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Environment, Climate and Wildlife
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Government Notice 6262 of 2025 |
Energy and Natural Resources
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Infrastructure and Transportation
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Government Notice 1093 of 2020 |
Energy and Natural Resources
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Infrastructure and Transportation
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Government Notice R1366 of 2016 |