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Ramokgopa urges Eskom to withdraw legal case against traders

Electricity and Energy Minister Dr Kgosientsho Ramokgopa

Electricity and Energy Minister Dr Kgosientsho Ramokgopa

8th August 2025

By: Terence Creamer

Creamer Media Editor

     

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Electricity and Energy Minister Dr Kgosientsho Ramokgopa has urged Eskom to stay or withdraw its court action to have the National Energy Regulator of South Africa’s (Nersa’s) licensing of five electricity traders in 2024 reviewed and set aside, highlighting an accelerated regulatory process to finalise the trading rules.

In a statement, the Minister makes reference to a joint statement by Business Unity South Africa and Business Leadership South Africa slamming Eskom’s legal challenge, while also acknowledging Eskom’s concerns regarding the “absence of a clear, rules-based framework to manage the transition to a competitive electricity market”. 

He noted that Nersa had initiated a process to finalise the rules and had revised its timeframe for doing so from an initial 12 months, whereby the rules would have been Gazetted in only June 2026, to only three months, or by November this year.

He described the development as a welcome recognition of the urgency of the matter, and argued that the revised timeframe presented a valuable opportunity for all stakeholders, including Eskom, to engage constructively in shaping the future trading landscape.

“Given the regulator’s accelerated process, the Minister encourages Eskom to consider staying or withdrawing its court action to allow for this participatory regulatory process to unfold without parallel legal processes that may undermine confidence or delay reform,” the Minister said.

He also used the statement to reaffirm the Ministry’s commitment to the reforms under way in the electricity sector, including the proposed unbundling of Eskom and the ongoing liberalisation of the market.

“By separating Eskom into distinct entities for generation, transmission, and distribution, this initiative is designed to create opportunities for new entrants, promote fair competition, and reduce the historical monopolistic hold in the power sector.

“This transformation aligns with long-standing commitments outlined in national energy policies and is focused on better serving the needs of all South Africans,” the statement reads.

Edited by Creamer Media Reporter

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