Eskom-owned transmission company officially commences trading

The National Transmission Company South Africa (NTCSA) has officially commenced trading, marking the company’s establishment as a distinct and wholly owned subsidiary of Eskom.

The move is a also a significant step in the reform of South Africa’s electricity supply industry.

This is according a joint media statement released by Eskom, the NTCSA and the Department of Public Enterprises.

Eskom Board chairperson Mteto Nyati said the entity will focus on adding capacity to South Africa’s power grid.

“We are pleased to announce that NTCSA begins trading today and will focus on increasing the capacity of the national transmission grid to allow the connection of much-needed new power generation capacity.

“As a wholly owned subsidiary, it will operate under the direction of an independent board while providing open access to the electricity network, as envisaged during the unbundling process. We look forward to contributing to a more efficient and transparent electricity industry,” he said.

The NTCSA board chairperson, Priscillah Mabelane, said that together with the relevant departments, the entity is embarking on an important journey.

“As we embark on this exciting and critical journey, our commitment is to continue focusing on ensuring safe, reliable, and efficient operations while accelerating the development of an interconnected transmission system in line with our mandate.

“We will ensure non-discriminatory access to the transmission network and seek ways to accelerate the rollout of the transmission grid while fostering transparency and efficiency. Together, we look forward to shaping a dynamic electricity market.

“We extend our deepest gratitude to our team, Eskom, Inter-Governmental Steering Committee comprising of Department of Minerals and Energy, National Treasury and the Shareholder Representative, DPE for their immense support in achieving this pivotal milestone,” Mabelane said.

About the NTCSA

According to the joint statement, the entity will “own and operate the country’s national transmission system, the world-class System Operator, the grid strengthening function, energy market services and the International Trader”.

The benefits of legal separation from Eskom are as follows:

• A competitive electricity market.
• An open access to the transmission network.
• Enhanced efficiency and promoting transparency.

How the NTCSA will operate:

The NTCSA will operate under the three following licences issued to it by the National Energy Regulator of South Africa (NERSA):

• The operation of transmission facilities by operating and managing the transmission grid.
• Trading, in terms of which it will buy energy from Eskom generators and Independent Power Producers, as procured by the Minister of Mineral Resource and Energy.
• Import and export in terms of which it will import and export energy, as well as continue as the trading arm to and from the Southern African Power Pool (SAPP)

“In terms of current legislation, NTCSA will play the role of the Transmission System Operator and buyer. It will assume additional roles once the Electricity Regulation Amendment (ERA) Bill is passed into law. The NTCSA will trade with Eskom Generation and Independent Power Producers (IPPs) using the current industry framework.

“The transition to a competitive electricity market will only commence after the ERA is gazetted, and NTCSA will assume the additional role of Market Operator. In this capacity, it will provide a platform for generators, consumers, traders, and retailers to trade with one another, as is the case in leading countries around the world.

“The establishment of the NTCA is another step in the electricity market structure reform, aiming to enhance efficiency and promote transparency. It will act as a catalyst for much-needed improvements and upgrades within the national electricity transmission infrastructure,” the statement read. – SAnews.gov.za