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 argues
that the proposed framework 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 but limit Phase 1 participation to High Voltage customers, potentially disadvantaging junior miners connected to Medium Voltage networks.
Why It's Important?
The JMC's response highlights the potential impact of the draft rules on the junior mining sector, which plays a crucial role in employment and local economic development. By excluding Medium Voltage customers, the rules could create a two-tier mining industry, benefiting only large mining companies. The JMC's advocacy for inclusive access is vital to ensure that smaller mining operations can compete fairly and contribute to the economy. The council also raises concerns about non-transparent tariffs and the need for a standardized methodology to prevent arbitrary pricing.
What's Next?
The JMC has called for NERSA to reconsider the eligibility criteria for Phase 1 and to introduce a transparent methodology for calculating charges. The council also suggests establishing a dedicated Energy Ombudsman for dispute resolution. NERSA's draft rules were open for public comment until late January, and the regulator is expected to review the submissions before finalizing the rules. The outcome will determine the future landscape of South Africa's electricity market and its accessibility to junior mining companies.
