On 1 July 2024, The Department of Public Enterprises (DPE), Eskom SOC Holdings Limited and the National Transmission Company South Africa (NTCSA) announced that the NTCSA officially commenced trading.
This milestone marked the NTCSA’s establishment as a duly constituted separate, distinct, and wholly owned subsidiary of Eskom Holdings, and is a significant step in the DPE Roadmap for Eskom towards a reformed electricity supply industry.
The NTCSA will own and operate the country’s national transmission system, the world-class System Operator, the grid strengthening function, energy market services and the International Trader.
In terms of current legislation, NTCSA will play the role of the Transmission System Operator and buyer. It will assume additional roles once the Electricity Regulation Amendment (ERA) Bill is passed into law. The NTCSA will trade with Eskom Generation and Independent Power Producers (IPPs) using the current industry framework. The transition to a competitive electricity market will only commence after the ERA is gazetted, and NTCSA will assume the additional role of Market Operator. In this capacity, it will provide a platform for generators, consumers, traders, and retailers to trade with one another, as is the case in leading countries around the world.
The establishment of the NTCSA is another step in the South African electricity market structure reform, aiming to enhance efficiency and promote transparency. It will act as a catalyst for much-needed improvements and upgrades within the national electricity transmission infrastructure.