Eskom may lose its energy monopoly status if a new paper by the Department of Electricity and Energy paper is approved.

The position paper, which the department opened for comment last week, sets out government’s plan to transform the electricity sector and one of the strategies it proposes is a competitive wholesale electricity market where customers can choose who they buy from.

Minister of Electricity and Energy Dr Kgosientsho Ramokgopa published the document for public comment on August 21.

Loadshedding

The document acknowledges that over the past two decades the electricity sector has faced “a lack of adequate and reliable generating capacity (leading to prolonged periods of load shedding)”.

It says government interventions have helped to “successfully resolve the most recent load shedding crisis”, but adds that “further structural transformations are essential to prevent its recurrence and to build a sustainable system for the future”.

Solar power and going off grid

For households that have installed solar panels or are considering going off the grid, the document offers some clarity.

It states that “customers who are entirely off grid will not have to pay any system charges”. However, “those that rely on the grid for some power or want to sell their excess energy will be required to pay network charges”.

The document also recognises small-scale power generators connected to local distribution networks as part of the future market, though a minimum size threshold for participation will be set at a later stage.

Green energy

The document places strong emphasis on decarbonisation — reducing the carbon emissions from electricity generation — and a just energy transition.

It says “decarbonising the electricity sector must therefore be implemented in a just and inclusive manner, mitigating adverse economic impacts on workers and communities, while maximising opportunities for job creation, skills development, and broader economic participation in the transition to renewable energy sources”.

The document says the market design “must remain technology neutral and impartial to all participants”, meaning all types of energy generation should compete on equal terms.

It notes that investments supporting national carbon reduction commitments are needed for both electricity generation and network upgrades.

How to comment

Written comments on the position paper must be submitted by Sunday, September 20, at 12:00.

Comments can be sent by post to Private Bag X 96, Pretoria 0001, delivered by hand to Matimba House, 192 Visagie Street, corner Paul Kruger, Pretoria, or emailed to EMTPP.Queries@dee.gov.za.

Comments must be addressed to the Director-General of the Department of Electricity and Energy, marked for the attention of Ms Vusani Ramuntshi.

Submissions should include the name, address, contact telephone number, fax number and email address of the person or organisation commenting.

Comments received after the closing date will not be considered.

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