Energy Council of South Africa CEO, James Mackay, believes that expediting the promulgation of the Electricity Regulation Amendment (ERA) Bill, along with the unbundling of Eskom, will send a clear message to stakeholders and investors that there is political commitment to placing the country's struggling electricity sector on a sustainable path. Mackay states that the current market structure dominated by a single integrated utility is a hindrance to necessary investment in generation, transmission, and distribution. He asserts that South Africa's reform efforts are lagging behind other middle-income economies and the BRICS countries. The enactment of the ERA legislation is seen as a market signal and a commitment to reform.

Mackay, involved with the National Energy Crisis Committee, emphasizes the need for political will to push the ERA through. Business leaders met with President Cyril Ramaphosa and government ministers to appeal for the approval of the ERA Bill in the current parliamentary term. The ERA Bill is deemed critical to ending load shedding, expediting energy development, expanding transmission infrastructure, establishing a competitive electricity market, and attracting investment.

Mackay acknowledges challenges in approving the legislation ahead of the 2024 elections. However, he remains optimistic, citing the speedy passage of the Eskom debt relief package. He views Eskom's unbundling as essential to ensure a level playing field between Eskom and independent power producers and to expand the grid.

Mackay also welcomed the National Energy Regulator of South Africa's decision to grant a transmission facilities license to the National Transmission Company South Africa (NTCSA). He expects trading and import/export licenses to be transferred from Eskom to NTCSA in the near future. Despite progress, independent boards are yet to be appointed for entities like NTCSA.

Mackay believes that once unbundling is complete, new codes can be released for public comment, outlining how new market arrangements will be implemented. These reforms aim to make the electricity supply industry more sustainable amid ongoing technological changes for sector decarbonization.

Efforts are also underway to address immediate challenges, including Eskom's coal fleet performance and slow progress in adding new generation capacity. The National Energy Crisis Committee, supported by the Resource Mobilisation Fund, is focusing on reducing and eventually eliminating load shedding. Mackay foresees a potential end to load shedding by the end of next year.