NERSA Invites Comments on Wholesale Price Methodology Consultation Paper

Posted 25 May 2026 Written by Acts Online
Category Minerals & Energy

Brought to you by SA Legal Academy: The National Energy Regulator of South Africa (NERSA) has released a consultation paper on the development of a wholesale price methodology, inviting stakeholders to submit written comments by 26 June 2026.

In terms of the Electricity Regulation Act, No. 4 of 2006, NERSA is mandated to regulate electricity prices and tariffs. The newly gazetted consultation paper addresses the “transitional context” in which the South African wholesale electricity market currently operates, driven by the unbundling of Eskom and the establishment of the National Transmission Company South Africa (NTCSA) as an independent market operator.

The consultation paper focuses on establishing pricing structures that will govern the evolving multi-market model. Key areas of focus in the paper include:

  • The methodology for determining wholesale energy tariffs during the transition from a single-buyer model to an open market;
  • The pricing mechanisms for energy purchases and sales by the market operator;
  • The allocation of transmission network costs and ancillary service charges; and
  • The financial viability of existing generation assets alongside newly integrated independent power producers (IPPs).

Interested parties and stakeholders are required to submit their written representations, comments, or inputs on the proposed methodology to NERSA on or before the deadline of 26 June 2026.

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

  • For yourself: No direct individual compliance obligations; impact is channelled through professional advisory roles regarding energy market restructuring.
  • For your business: Energy-intensive firms and corporate advisors must evaluate how the proposed wholesale pricing structures will affect long-term operational costs and corporate power purchase agreements (PPAs).
  • For your clients: Independent power producers, municipal distributors, and large industrial energy users should be advised to review the consultation paper and submit formal comments to NERSA by 26 June 2026 to protect their commercial interests.

Originally published at https://legalacademy.co.za/news/read/electricity-nersa-gazettes-wholesale-price-methodology-consultation-paper

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