A move aimed at supporting investment, improving energy security and strengthening competition in the electricity market.
The amendment was published in the Government Gazette on January 5, 2026, by the Department of Trade, Industry and Competition (DTIC), updating regulations that allow certain agreements and practices by energy users to be exempt from standard competition rules under specific conditions.
The Energy Users Block Exemption is designed to enable collaboration between firms involved in energy generation, procurement and use, particularly in response to ongoing electricity supply constraints.
By widening the scope of the exemption, government is seeking to remove regulatory barriers that may slow down private investment in energy projects, especially renewable and self-generation initiatives.
Under the revised framework, qualifying energy users are permitted to co-operate on activities such as joint procurement of electricity, shared infrastructure development and arrangements that support energy efficiency and security of supply.
These collaborations would ordinarily raise competition concerns, but are now allowed provided they contribute to a reliable energy supply and do not result in excessive market power or harm to consumers.
The DTIC said the amendment reflects the urgency of addressing SA’s energy crisis while maintaining the integrity of competition law. The exemption remains subject to conditions and oversight, ensuring that cooperation between firms does not lead to price-fixing, market allocation or the exclusion of smaller players.
Energy analysts say the revised exemption could accelerate investment in alternative power generation, particularly by large industrial users who have already begun developing private renewable energy projects. Greater flexibility in cooperation may also help reduce costs, improve planning and speed up project implementation.
For African economies more broadly, SA’s approach highlights how competition policy can be adapted to support energy transition goals without undermining market fairness. Many countries across the continent face similar challenges of power shortages, rising energy costs and the need to attract private capital into electricity generation.
The amendment comes as government continues to pursue structural reforms in the energy sector, including unbundling Eskom, expanding grid capacity and increasing private sector participation. Officials have emphasised that competition policy will remain a key tool in balancing urgent energy needs with long-term economic efficiency.
–ChannelAfrica–
