Public hearing -Application for trading licences for Current Energy (Pty) Ltd and RBM EnergyCo (Pty) Ltd - 23 July 2026 19 June 2026

The National Energy Regulator of South Africa (NERSA) has scheduled a public hearing for July 23, 2026, to consider electricity trading licence applications from Current Energy (Pty) Ltd and RBM EnergyCo (Pty) Ltd. This hearing is a critical step in the regulatory process, reflecting South Africa's ongoing transition towards a more liberalised and competitive electricity market. For legal professionals, these proceedings highlight the evolving regulatory landscape under the Electricity Regulation Act, 2006, and the increasing opportunities and complexities associated with private sector participation in electricity trading. The outcome will provide further clarity on NERSA's approach to fostering competition and ensuring regulatory certainty in the burgeoning bilateral electricity trading market.

The National Energy Regulator of South Africa (NERSA) has announced a forthcoming public hearing on July 23, 2026, to adjudicate the electricity trading licence applications submitted by Current Energy (Pty) Ltd and RBM EnergyCo (Pty) Ltd. This event is not merely a routine administrative step but a significant indicator of the accelerating liberalisation of South Africa's electricity supply industry. As the country grapples with persistent energy challenges and actively seeks to diversify its energy mix and supply mechanisms, the role of independent electricity traders is becoming increasingly pivotal.

These applications, and NERSA's transparent process for their consideration, underscore the profound shifts occurring within the South African energy sector. The move away from a vertically integrated monopoly towards a multi-market structure, where private entities can actively participate in the buying and selling of electricity, presents both immense opportunities and complex regulatory challenges. For legal practitioners, understanding the intricacies of NERSA's licensing framework, the criteria for approval, and the broader policy objectives driving these reforms is essential for advising clients navigating this dynamic environment.

This article aims to provide legal professionals with a comprehensive overview of the legal and regulatory context surrounding these trading licence applications. It will delve into NERSA's mandate, the statutory framework governing electricity trading, the significance of public hearings, and the implications for market participants as South Africa continues its journey towards a more competitive and resilient electricity market.

NERSA, established under the National Energy Regulator Act, 2004 (Act No. 40 of 2004), serves as the custodian and enforcer of the national electricity regulatory framework in South Africa. Its mandate, as defined by the Electricity Regulation Act, 2006 (Act No. 4 of 2006) (ERA), includes regulating the generation, transmission, distribution, reticulation, trading, and import and export of electricity. A core function of NERSA is to consider applications for and issue licences for these activities, with Section 7(1)(c) of the ERA explicitly requiring a licence for any person involved in electricity trading.

The term "trading" in this context refers to the wholesale or retail buying and selling of electricity. The ERA prohibits any person from trading in electricity without a NERSA-issued licence. The regulatory framework for electricity trading has been significantly influenced by recent legislative amendments, particularly the Electricity Regulation Amendment Act (ERAA), signed into law in 2024 and effective from January 1, 2025. This amendment aims to establish a competitive wholesale electricity market and facilitate the creation of an independent transmission system operator, fundamentally altering the market structure.

Public hearings are an integral part of NERSA's licensing process, mandated by Section 11 of the ERA. They serve as a crucial mechanism for transparency and stakeholder engagement, allowing affected parties and interested stakeholders to make oral submissions on facts and evidence before the Energy Regulator makes a final decision. This ensures that NERSA's decisions are informed by a wide range of perspectives, aligning with its regulatory principles of transparency, accountability, and integrity.

The legal framework governing electricity trading licences in South Africa is primarily rooted in the Electricity Regulation Act, 2006. Section 10 of the ERA outlines the general conditions for licences, while Section 11 details the application process, including the requirement for public notification and hearings. NERSA has also developed specific "Rules for Electricity Trading" under Section 35(1) and (3) of the ERA, which aim to regulate the developing physical bilateral trading market and foster competitive practices. These rules provide clear guidelines for participation, compliance criteria, and responsibilities for licensed electricity traders, generators, and network service providers.

Applicants for trading licences, such as Current Energy (Pty) Ltd and RBM EnergyCo (Pty) Ltd, are required to provide NERSA with reasonably detailed technical, economic, and financial information. This includes, but is not limited to, details of generator and customer profiles, proposed wheeling arrangements, and commercial agreements like Power Purchase Agreements (PPAs) and Customer Power Purchase Agreements (C-PPAs). NERSA evaluates these applications against criteria such as the applicant's financial viability, technical capability, and the proposed trading model's alignment with the objectives of the ERA, which include promoting competitiveness, customer choice, and investment in the electricity supply industry.

The public hearing for Current Energy and RBM EnergyCo is particularly significant in the context of South Africa's ongoing energy market reforms. The amendments to the ERA in 2021 and 2022, which lifted the licensing threshold for generation projects, have stimulated considerable interest in electricity trading and aggregation. The recent Electricity Regulation Amendment Act, effective January 2025, further solidifies the shift towards a competitive wholesale electricity market, moving away from Eskom's historical monopoly. This legislative evolution means that NERSA's decisions on trading licences are crucial for shaping the practical implementation of these reforms.

During the public hearing, stakeholders may raise various considerations, including the impact on existing network service providers like Eskom, grid access issues, proposed tariffs, and the broader public interest. NERSA's role is to balance the interests of customers, licensees, investors, and the public, ensuring a fair and orderly transition. The development of comprehensive electricity trading rules, which NERSA aims to finalise by June 2026, will further define the operational landscape for traders, addressing aspects like network charges for third-party wheeling and market codes.

While the market is opening up, challenges remain, including navigating persistent market uncertainty and ensuring non-discriminatory access to the transmission and distribution networks. The licensing of new trading entities is a testament to the government's commitment to increasing private sector participation and fostering competition, which is expected to lead to a more resilient and cost-reflective electricity system.

The upcoming public hearing for Current Energy (Pty) Ltd and RBM EnergyCo (Pty) Ltd's electricity trading licence applications represents a pivotal moment in South Africa's energy transition. It underscores NERSA's commitment to a transparent and inclusive regulatory process as the country moves towards a more competitive and decentralised electricity market. The approval of such licences is instrumental in enabling private sector investment and participation, ultimately contributing to enhanced energy security and customer choice.

For legal practitioners, these developments necessitate a deep understanding of the Electricity Regulation Act, 2006, the NERSA Rules for Electricity Trading, and the broader policy objectives driving market liberalisation. Advising clients on the complexities of licence applications, compliance with evolving regulatory instruments, and effective participation in public hearings will be paramount. Practitioners should closely monitor NERSA's final decisions on these applications and the ongoing refinement of the electricity trading rules, as these will significantly shape the operational and commercial landscape for all participants in South Africa's transforming electricity supply industry.