Eskom welcomes the National Energy Regulator of South Africa (NERSA) decision to award a Market Operator Licence to the National Transmission Company South Africa SOC Ltd (NTCSA) as the next step to establishing a market for electricity and delivering competition

Thursday, 27 November 2025: Eskom Holdings welcomes the approval by NERSA of NTCSA’s Market Operator Licence as delivering the next stage of the future structure of the electricity supply industry as defined by the Electricity Regulation Amendment Act (ERAA). This is an important milestone in the country’s energy reform agenda and in building a power system that is more secure, better run, and open to wider participation.

“The awarding of the Market Operator Licence to the NTCSA represents significant progress in establishing a competitive electricity market in South Africa. It aligns with global best practice, supports a level playing field for market participation and enhances certainty for investors looking to bring new capacity into the system,” said Dan Marokane, Eskom Group Chief Executive.

“With the Market Operator now licensed, and following extensive engagement on the Market Code already undertaken with stakeholders, the necessary structures are in place for its finalisation and submission to NERSA who provides final approval. Further, the publication of the grid allocation rules will provide a clear basis for performance reporting to all stakeholders and the Electricity Market Advisory Forum will play a vital guidance and advisory role. This sends a strong signal to investors that the country remains committed to a rules-based transition to a competitive marketplace,” continued Marokane.

The ERAA provides the legal foundation for restructuring the electricity sector. It mandates the establishment of a fully independent Transmission System Operator (TSO) within five years, while allowing NTCSA to temporarily fulfil certain TSO roles during the transition. Eskom is implementing the building blocks to ensure this is achieved within the anticipated timelines.

Building a modern, transparent, and reliable power system

Eskom has transitioned from a single, vertically integrated company to a group structure.

Eskom will manage these changes responsibly, in partnership with government, regulators, organised labour, municipalities and all relevant stakeholders. A structured engagement process is underway to keep stakeholders informed, safeguard power system stability and support employees throughout the unbundling journey.

ENDS

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