South Africa’s electricity supply industry has witnessed a ‘big bang’ moment, with the Electricity Regulation Amendment Act coming into force on 1 January. The reforms represent a ground-breaking shift from a centralised Eskom to a liberalised market structure involving the private sector. Authorities hope competition will increase the reliability of supply, bring down prices and help to close an enormous infrastructure funding gap, writes Tonderayi Mukeredzi.
Drastic regulatory reforms are reshaping South Africa’s electricity supply industry (ESI) into a diversified and competitive market. With the unbundling of the state power utility Eskom into separate units for generation, transmission and distribution, already underway, a deregulated energy market dominated by private players and electricity traders, is emerging.
Through reporting and the latest data, African Energy has been closely monitoring and covering the transition and the trends towards a liberalised ESI.
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