COMMENTS ON DRAFT SA WHOLESALE ELECTRICITY MARKET CODE & RULES

A submission by a coalition of civil society organisations—including Law for Energy Transitions Africa, Natural Justice, The Green Connection, and Project 90 by 2030—providing detailed comments on the draft South African Wholesale Electricity Market (SAWEM) Code and Rules. The submission argues that the draft framework lacks sufficient alignment with constitutional rights and climate obligations, suffers from governance conflicts of interest due to the Market Operator's link to Eskom, and lacks transparency regarding costs and contracts.

• The draft SAWEM Code and Rules are not sufficiently aligned with the Constitution of the Republic of South Africa, 1996, or the Climate Change Act, 2024. The authors argue that without explicit objectives for renewable energy and climate protection, the market risks prioritising fossil-fuel-dependent systems and missing opportunities to improve public health and reduce greenhouse gas emissions.
• There is a significant conflict of interest in the proposed governance structure because the Market Operator is housed within the National Transmission Company of South Africa (NTCSA), which is a subsidiary of Eskom Holdings SOC Ltd. Since Eskom generation and distribution entities will be market participants, the authors contend that the NTCSA lacks the independence necessary for fair oversight, surveillance, and dispute resolution.
• The submission identifies a lack of transparency and public participation in the draft Code. It recommends that the Market Operator publish real-time or day-after data on prices bid into the Day Ahead Market, dispatch orders, and generation sources. Furthermore, it demands the public disclosure of all full executed contracts entered into by the Central Purchasing Agency (CPA), including vesting contracts, rather than just lists or templates.
• The proposed 'legacy charge' to cover stranded assets and costs incurred by Eskom or the State is a major concern. The authors warn that this could lead to the recovery of imprudently incurred costs from consumers without accountability, potentially resulting in higher electricity prices and a regressive cost allocation that disproportionately burdens low-income residential consumers.
• The authors criticize the 'must-run' status for certain physical trade allocations, arguing it may force inefficient and polluting coal or gas power plants to operate to the exclusion of cheaper, cleaner renewable alternatives, thereby hindering system flexibility and increasing costs.
• The submission recommends that NERSA's oversight be strengthened, specifically by giving NERSA the authority to appoint members of the Market Governance Committee (MGC) and the responsibility for determining and approving the Market Price Cap, rather than leaving these to the MGC.

APA

Natural Justice (2026). COMMENTS ON DRAFT SA WHOLESALE ELECTRICITY MARKET CODE & RULES. https://naturaljustice.org/wp-content/uploads/2026/06/SAWEM-Market-Code-Rules-Comments_NERSA_June-2026.pdf

Chicago

Natural Justice. COMMENTS ON DRAFT SA WHOLESALE ELECTRICITY MARKET CODE & RULES. 2026. https://naturaljustice.org/wp-content/uploads/2026/06/SAWEM-Market-Code-Rules-Comments_NERSA_June-2026.pdf.

Wikipedia

{{cite press release |author=Natural Justice |title=COMMENTS ON DRAFT SA WHOLESALE ELECTRICITY MARKET CODE & RULES |date=18 June 2026 |url=https://naturaljustice.org/wp-content/uploads/2026/06/SAWEM-Market-Code-Rules-Comments_NERSA_June-2026.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{naturaljustice2026comments, author = {{Natural Justice}}, title = {{COMMENTS ON DRAFT SA WHOLESALE ELECTRICITY MARKET CODE \& RULES}}, publisher = {Natural Justice}, year = {2026}, month = jun, url = {https://naturaljustice.org/wp-content/uploads/2026/06/SAWEM-Market-Code-Rules-Comments_NERSA_June-2026.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }