Eskom’s legal challenge against traders raises questions over reform momentum

Eskom has launched its long-threatened legal review of the regulator’s decision to grant licences in 2024 to five electricity traders, as well as a cross-border trading licence – a move that has again raised some concern that South Africa’s electricity reforms are stalling. Eskom’s challenge comes despite the fact that similar licences have been approved in favour of several other electricity traders over the past more than ten years and against the backdrop of the recent launch by the National Energy Regulator of South Africa (Nersa) of a process to consult on and Gazette trading rules by June next year.