Eskom’s National Transmission Company of South Africa (NTCSA) commenced operations on Monday and will operate the country’s national transmission system.
This was announced in a joint media statement by Eskom, the now-defunct department of public enterprises, and NTCSA.
“The department of public enterprises, Eskom, and the National Transmission Company of South Africa are pleased to announce that the NTCSA has officially commenced trading,” reads the statement.
“This milestone marks the NTCSA’s establishment as a duly constituted separate, distinct, and wholly owned subsidiary of Eskom Holdings and is a significant step in the department’s roadmap for Eskom towards a reformed electricity supply industry.
“The 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.”
In terms of current legislation, the three government entities said the NTCSA will play the role of the transmission system operator and buyer.
Platform for traders and consumers
“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 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 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.”
Eskom board chairperson Mteto Nyati said he is excited that the NTCSA has begun its operations.
New power generation capacity
“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,” said Nyathi.
“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.”
NTCSA board chairperson Priscillah Mabelane said the transmission company is committed to providing safe, reliable, and efficient operations.
“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,” said Mabelane.
“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, the inter-governmental steering committee comprising the Department of Minerals and Energy, National Treasury, and the shareholder representative, DPE [department of public enterprises], for their immense support in achieving this pivotal milestone.”
The three licences
The NTCSA will operate under three licences issued by the National Energy Regulator of South Africa.
The licences are for 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 minerals; and 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.
The statement reads further: “Eskom’s legal separation into three distinct entities – generation, distribution, and transmission – is aligned with its turnaround plan and the department of public works roadmap.
“Eskom expresses gratitude to all stakeholders, including employees, the government, and lenders, for their support during this transition.”
Meanwhile, on Sunday, President Cyril Ramaphosa appointed Kgosientsho Ramokgopa as the minister of electricity and energy.
The DA’s Samantha Graham will serve as Ramokgopa’s deputy.
