The South African Electricity Traders Association (SAETA) has welcomed the recent publication of a draft Electricity Sector Market Transformation Position Paper by the Department of Electricity and Energy (DEE).

Chairperson Khaya Mbatha describes it as the first step towards achieving a Cabinet-endorsed electricity reform roadmap that includes milestones and timeframes, and facilitates improved coordination and delivery accountability.

SAETA called for such a roadmap in its ‘Policy to Power’ report that it published earlier this year, which outlined ten actions that it argued were required to move South Africa from a monopoly electricity system to a functioning multi-market model.

Having monitored these reform areas over the past six months, SAETA has concluded that there has been some progress in several areas, while also noting a lack of progress on reforms needed in electricity distribution, as well as to enable cross-border electricity trade.

Transmission expansion also remains an area of concern, with the National Transmission Company South Africa (NTCSA) having built only 270.8 km of powerlines in 2025/26 against a target of 423 km.

However, the establishment of a Grid Access Unit by the NTCSA is seen as positive, with SAETA expecting it to alleviate potential conflicts of interest in allocating access to the transmission network.

The Gazetting for public comment of the draft Electricity Sector Market Transformation Position Paper and a draft revision to the 2008 Electricity Pricing Policy is also held up as progress, albeit slow progress.

SAETA argues that finalising a Cabinet-endorsed electricity reform roadmap remains a priority in a context where no single institution can deliver the reforms alone.

“It is equally important to embed the reforms in durable institutions, policies and implementation processes. Doing so will help sustain progress over time, reduce uncertainty and ensure that the reform programme remains resilient through future leadership and administrative changes," Mbatha adds.

In relation to institutional capacity, the six-month assessment indicates some movement in addressing deficiencies at the National Energy Regulator of South Africa (Nersa), with Thero Services currently conducting an organisational assessment.

Nevertheless, key vacancies remain, including those relating to the positions of CEO and chairperson.

Addressing capacity within the DEE is also highlighted as important, given that the department is expected to assume some of the functions previously undertaken through the National Energy Crisis Committee.

President Cyril Ramaphosa’s endorsement of the Eskom Restructuring Task Team’s Phase 1 final report in July, confirming that transmission assets could be unbundled from Eskom without compromising the utility’s financial sustainability, is also highlighted in the assessment. As is the National Treasury’s decision to appoint a transaction adviser to help navigate the complex financial structures and negotiate with lenders.

SAETA says the implementation plan, which will be developed during Phase 2, will also be key to monitor as it will guide the pace of reform delivery.

Regarding the finalisation of trading rules, SAETA indicates that it views Nersa’s end of October timetable as ambitious.

Nersa, it notes, has initiated a second public consultation, after reverting back to a less contentious draft that nevertheless still included competition concerns, including restriction on traders from participating in the South African Wholesale Electricity Market (SAWEM) during the early stages.

SAETA also concludes that the launch of the SAWEM could be further delayed, with several issues still to be finalised, including the market code, the vesting contracts framework and wholesale tariff methodology.