Eskom has reached an agreement to suspend legal proceedings instituted against the granting of trading licences in 2024 to allow the current regulatory process to draft new trading rules to proceed in the absence of parallel litigation.

In what was a surprise development at the time, Eskom applied to the High Court in July 2025 to have the National Energy Regulator of South Africa’s (Nersa’s) decision to grant five electricity trading licences reviewed and set aside.

The application followed the issuance of licences to Green Electron Market, CBI Electric Apollo, GreenCo Power Services, Discovery Green, and NOA Group Trading and arose even though several other trading licences had already been issued over a number of preceding years.

Following pressure from Electricity and Energy Minister Dr Kgosientsho Ramokgopa, Eskom announced in September last year that it had decided to stay the application to allow for a Nersa process initiated to finalise trading rules to be concluded.

However, it emerged earlier this year that Eskom was in fact proceeding with its review application to “protect its legal position”. And during recent Nersa hearings on the draft trading rules published by the regulator, Eskom called for the rules to be re-workshopped and re-drafted, while making a point that it reserved its rights to oppose the rules legally.

In a joint statement issued on Friday, February 27, and following an agreement reached on Thursday night, it was announced that Eskom, Nersa and the five trader respondents had agreed to suspend legal proceedings.

“Following a period of constructive engagement and consultations between Eskom and the trader respondents, the parties have now jointly agreed to stay the review application,” the statement reads.

NO WITHDRAWAL

“This agreement does not constitute a withdrawal of the review application but rather a procedural stay, pending the finalisation of the applicable regulatory framework.”

It added that the decision reflected a shared intention to allow space for the ongoing regulatory processes relating to electricity trading rules and market design to proceed in an orderly and focused manner, without parallel litigation.

“The parties recognise the importance of regulatory certainty and clarity in supporting the evolution of South Africa’s electricity market.

“The parties consider the stay to be in the broader public interest and supportive of South Africa’s transition towards a competitive, transparent, and well-regulated electricity trading framework.

“Engagement between stakeholders will continue through the appropriate regulatory channels, with a view to contributing meaningfully to the development of clear, workable, and sustainable trading rules for the evolving electricity market.

“Such rules, once finalised and implemented by Nersa, will apply to all entities engaged in trading activities, including Eskom,” the statement added.

Eskom Distribution acting group executive Agnes Mlambo said in the same statement that Eskom was committed to supporting the development of a fair, transparent and sustainable electricity market that balanced innovation, competition and system stability.

“We believe that constructive engagement through the regulatory process will best serve the interests of customers, market participants and the country as a whole,” Mlambo added.