What's Happening?
The Junior Mining Council (JMC) has submitted a policy response to the National Energy Regulator of South Africa (NERSA) regarding the Draft Consultation Paper on Rules for Electricity Trading. The JMC is concerned that the proposed rules could exclude
junior mining operations from accessing competitive electricity markets. The draft rules, published in November 2025, aim to regulate South Africa's bilateral electricity market by promoting competition and ensuring fair network access. However, the JMC argues that the phased implementation approach, which initially limits participation to High Voltage (HV) customers, unfairly disadvantages junior miners connected to Medium Voltage (MV) networks. The JMC has recommended that MV-connected customers with advanced metering infrastructure be allowed to participate in Phase 1.
Why It's Important?
The JMC's response highlights the potential impact of NERSA's proposed electricity trading rules on the junior mining sector, which plays a crucial role in South Africa's economy. By advocating for more inclusive access, the JMC seeks to ensure that smaller mining operations can benefit from market reforms intended to increase competition and transparency. The outcome of this consultation could influence the future of electricity market regulation in South Africa, affecting not only the mining industry but also broader economic and energy policy. Ensuring fair access to electricity markets is vital for the sustainability and growth of junior mining companies, which contribute significantly to employment and local economic development.
What's Next?
NERSA's Draft Consultation Paper was open for public comment until late January, and the regulator will now review the submissions received. The JMC's recommendations, if considered, could lead to adjustments in the proposed rules to accommodate MV-connected customers. The outcome of this process will be closely watched by stakeholders in the mining and energy sectors. If the JMC's concerns are addressed, it could pave the way for a more equitable electricity market that supports the growth of junior mining operations. The establishment of a dedicated Energy Ombudsman or expedited NERSA tribunal, as suggested by the JMC, could also enhance dispute resolution mechanisms in the sector.
