The Junior Mining Council (JMC) has formally submitted its policy response to the National Energy Regulator of South Africa (NERSA) on the Draft Consultation Paper on Rules for Electricity Trading, cautioning that the proposed framework, if not refined, risks excluding junior mining operations from accessing competitive electricity markets. 

Fred Arendse, President of the Junior Mining Council, has voiced concern that the proposed approach unfairly disadvantages junior miners: “Many junior mining operations are connected to Medium Voltage (MV) distribution networks. By limiting Phase 1 participation to High Voltage (HV) customers, NERSA effectively bars a significant portion of the junior mining sector from accessing competitive electricity markets for an undefined period.” 

The Draft Consultation Paper, published on 24 November 2025, introduces new Electricity Trading Rules aimed at regulating South Africa’s growing bilateral electricity market. The rules are developed under the Electricity Regulation Act 4 of 2006 (as amended) and seek to promote competition, ensure fair network access, regulate licensing for traders, and clarify the roles of generators, traders and Network Service Providers (NSPs). 

While the JMC supports the transition towards a more competitive and transparent electricity market, it has raised material concerns regarding the proposed phased implementation, licensing requirements, cost recovery mechanisms and dispute resolution processes—particularly where these affect emerging and junior mining companies. NERSA’s draft rules propose a two-phase implementation approach, with Phase 1 limited to customers connected to Transmission and High Voltage (HV) networks. 

“In our submission to NERSA, the JMC has urged the regulator to reconsider the Phase 1 eligibility criteria, recommending that MV-connected customers with appropriate advanced metering infrastructure be permitted to participate, rather than being excluded solely on the basis of voltage level,” says Arendse. 

The JMC represents emerging and junior mining companies, exploration firms, as well as associated professional bodies, suppliers and contractors across South Africa. These operations are critical contributors to employment, local economic development and community livelihoods. 

The JMC has also raised concerns about the financial impact of standby, top-up supply and back-up capacity charges imposed by Network Service Providers. While recognising the need for cost recovery, the Council warns that poorly defined or non-transparent tariffs could be used to cross-subsidise other network costs, effectively eroding the benefits of private power purchase agreements for junior miners. The JMC has therefore called on NERSA to introduce a transparent and standardised methodology for calculating non-bypassable charges to prevent arbitrary or punitive pricing. 

In addition, the JMC has called for swift and specialised dispute resolution through the establishment of a dedicated Energy Ombudsman or an expedited NERSA tribunal. 

The JMC supports NERSA’s objective of liberalising the electricity market. However, it cautions that the proposed phased approach must not create a two-tier mining industry in which only large, Tier-1 mining companies benefit from early access to market reforms. 

NERSA’s Draft Consultation Paper was open for public comment until late January, with submissions coordinated through the Energy Council.