South Africa’s Energy Future at Crossroads: Experts Call to Dismantle Nersa for a Flexible, Market-Driven Power Sector

South Africa’s current electricity regulation model, overseen by the National Energy Regulator of South Africa (Nersa), faces scrutiny as experts suggest it may be holding back the transition to a more flexible, competitive energy landscape. Critics argue that Nersa’s bureaucratic licensing system and slow approval processes are stifling innovation and private investment in renewable and independent power generation. With the country grappling with a prolonged energy crisis and load-shedding, experts advocate for decentralizing regulatory control and introducing market-driven mechanisms to accelerate energy reform.

The proposed solution involves dissolving Nersa in its current form and transitioning to a new, adaptive regulatory structure that promotes competition and private sector participation. Such a move aligns with global trends where power markets are liberalized to allow multiple players access, increasing efficiency and energy security. The call to “say goodbye” to the current electricity regulator underscores the urgent need for reform to enable South Africa’s energy sector to meet growing demand and reduce dependence on Eskom’s centralized control.

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