Competition Act: Energy User Block Exemption Amended

Posted 05 January 2026 Written by Acts Online
Category Trade

Brought to you by SA Legal Academy: In terms of the Competition Act, No. 89 of 1998, the Department of Trade, Industry & Competition (DTIC) has gazetted amendments to the Energy User Block Exemption, 2023.

The amendments modify the regulatory framework originally issued in May 2023, which was designed to alleviate, contain, and minimise the effects of national electricity supply constraints on specific energy users. Under the revised provisions, the determination of whether a particular industry qualifies for the block exemption will be assessed by the Department on a case-by-case basis.

In evaluating these applications, the DTIC is required to act in consultation with the National Energy Regulator of South Africa (NERSA). This procedural shift ensures that exemptions are targeted at sectors where electricity constraints pose the most significant risk to economic stability or industrial output, rather than applying a broad-based categorical exemption.

What this means for you, your business, or your clients

  • For yourself: You must advise on the specific evidentiary requirements needed to demonstrate that a client’s industry meets the criteria for a case-by-case exemption under the amended 2023 regulations.
  • For your business: Firms operating in energy-intensive sectors must monitor DTIC notices to determine if their specific industry classification has been granted or denied exemption status following the NERSA consultation process.
  • For your clients: Clients seeking to collaborate with competitors to manage energy constraints must now file formal motivations with the DTIC and NERSA to secure legal protection under the block exemption framework.

Originally published at https://legalacademy.co.za/news/read/competition-act-energy-user-block-exemption-amended

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