Power transmission company has finally begun trading

The National Transmission Company of SA (NTCSA) has officially begun trading according to Eskom, the NTCSA and the now-defunct department of public enterprises.

The NTCSA forms part of Eskom’s legal separation into three entities, namely generation, distribution and transmission, and was announced in President Cyril Ramaphosa’s 2019 state of the nation address (Sona).

In April, electricity minister Dr Kgosientsho Ramokgopa confirmed the company was on track to start operating in July. Eskom had previously said it expected the NTCSA to begin operating from April 1.

In a statement on Monday confirming the news, the trio said: “This milestone marks the NTCSA’s establishment as a duly constituted separate, distinct and wholly owned subsidiary of Eskom and is a significant step in the road map 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.”

All three said the company, in line with legislation, would play the role of “transmission system operator and buyer”, and once the Electricity Regulation Amendment (ERA) Bill comes into effect, will take on additional roles.

“The NTCSA will trade with Eskom generation and independent power producers using the industry framework. The transition to a competitive electricity market will only commence after the ERA is gazetted and NTCSA assumes 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 statement said.

Eskom board chair Mteto Nyati said: “As we embark on the 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.

NTCSA chair Priscillah Mabelane said: “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.”

TimesLIVE