Eskom’s National Transmission Company South Africa (NTCSA) Officially Commences Trading

by Selinda Phenyo
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ESKOM

By Phenyo Selinda

Johannesburg – The National Transmission Company South Africa (NTCSA) has officially begun trading as a distinct entity, fully owned by Eskom. This move marks a critical step in the ongoing reforms aimed at overhauling the nation’s power grid and enhancing the overall efficiency and transparency of the electricity market.

A New Dawn in Electricity Transmission

The establishment of NTCSA was celebrated in a joint media statement by Eskom, NTCSA, and the Department of Public Enterprises. The Eskom Board Chairperson, Mteto Nyati, expressed satisfaction with this pivotal development, emphasizing the entity’s focus on amplifying the capacity of the national transmission 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,” Nyati remarked. “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.”

Commitment to Reliability and Transparency

Priscillah Mabelane, the NTCSA Board Chairperson, highlighted the entity’s crucial role in shaping a dynamic and efficient electricity market. She extended gratitude to various stakeholders and underscored the importance of non-discriminatory access to the transmission network.

“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,” Mabelane stated.

About the NTCSA

According to the joint statement, NTCSA 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 include:

  • A competitive electricity market.
  • Open access to the transmission network.
  • Enhanced efficiency and transparency.

NTCSA’s Operational Framework

NTCSA will function under three primary licenses issued by the National Energy Regulator of South Africa (NERSA):

  1. Transmission Facilities Operation: Managing the transmission grid.
  2. Energy Trading: Buying energy from Eskom generators and Independent Power Producers, as procured by the Minister of Mineral Resource and Energy.
  3. Import and Export: Trading energy within 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 statement elaborated.

Towards a Competitive Market

The transition to a competitive electricity market will be initiated post the gazetting of the ERA, positioning NTCSA as the Market Operator. This role involves creating a platform for generators, consumers, traders, and retailers to trade within a regulated and transparent framework, mirroring the practices in leading global markets.

“The establishment of NTCSA 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 joint statement concluded


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