In the first-of-its-kind collaboration, the Council of Scientific and Industrial Research (CSIR), European Union (EU) and National Energy Regulator of South Africa (NERSA) recently joined forces for critical discussions on the role of regulators in South Africa’s transitioning energy sector.

The events emphasised the importance of robust regulatory frameworks to navigate the complexities of a just energy transition. South African regulators face a multifaceted task, including overseeing market competition, maintaining grid stability and promoting innovation with sustainability at the forefront. These responsibilities highlight their important role in shaping the country's energy future.

Representatives from the CSIR, EU and NERSA, alongside energy experts, explored various topics, including: 

• Unbundling South Africa’s vertically integrated power system;
• Establishing cost-reflective tariffs;
• Facilitating wheeling agreements; and
• The role of regulators in ensuring fair and equitable grid access.
   

Dr Thabo Hlalele, Head of the CSIR Energy Research Centre and moderator of the event, emphasised the significance of leveraging collective expertise in the field. “By critically examining the role of regulators amidst the energy crisis, global unbundling trends and transparent pricing structures, we can support a more effective energy sector,” he stated. 

The discussion highlighted the rapid evolution of the energy landscape, which necessitates that regulators adapt policies and frameworks to accommodate new technologies, market dynamics and geopolitical influences. Continuous critical examination ensures that regulatory approaches remain relevant, forward-thinking and equipped to address emerging challenges. Moreover, critically examining the regulator's role helps navigate the complexities of the energy sector, promote fairness and transparency, protect consumer interests and support sustainable and competitive energy markets,” he said.

South Africa’s growing population presents a unique challenge for power utilities, which face the dual pressure of maintaining a consistent power supply while simultaneously expanding the constrained grid. The government’s initiative to unbundle the state-owned, vertically integrated utility aims to address this issue. Unbundling involves the separation of generation, transmission and distribution into distinct entities to improve power supply efficiency.

Energy experts explored the legal and operational implications of unbundling within South Africa’s electricity supply industry. The role of tariffs was identified as critical in facilitating this process, specifically in relation to electricity distribution and pricing. Fair access to infrastructure and services is essential and tariffs play a pivotal role in supporting effective unbundling practices.

The discussions highlighted the challenges various energy providers face in securing equitable and equal access to transmission lines. These challenges included limited access to comprehensive data for informed decision-making and the ineffectiveness of current block tariffs in benefiting those most in need. Further discussions are needed to address these issues and unlock practical solutions. Key areas of focus should include the promotion of transparency, cost-efficiency (developing fair and sustainable pricing structures) and the identification of social and economic considerations crucial for a just energy transition. By addressing these challenges, South Africa can leverage upcoming electricity sector reforms to achieve a sustainable and equitable energy future.

- ENDS -
 

Issued by CSIR Strategic Communications

For more information, contact:
Phetolo Phatsibi: Media Relations Practitioner
Email: PPhatsibi@csir.co.za
Contact: 081 396 8871

About the CSIR:

The CSIR, an entity of the Ministry of Higher Education, Science and Innovation, is one of the leading scientific and technology research, development and implementation organisations in Africa. Constituted by an Act of Parliament in 1945 as a science council, the CSIR undertakes directed and multidisciplinary research and technological innovation, as well as industrial and scientific development, to improve the quality of life of all South Africans. For more information, visit www.csir.co.za.

Follow us on social media:

Twitter: @CSIR. Facebook: CSIRSouthAfrica. Instagram: CSIRSouthAfrica. LinkedIn: Council for Scientific and Industrial Research (CSIR). YouTube: CSIRNewMedia