Brief

South Africa’s regulator proposes five‑year ban on automated electricity trading

The draft regulatory framework seeks to keep fully automated trading off the new wholesale market until it proves stable.

By Felo News Desk · Published Thu, 08 Oct 2026 08:20:15 GMT

South Africa’s energy regulator Nersa has released an 87‑page draft framework that would bar fully automated algorithmic trading from the South African Wholesale Electricity Market (Sawem) for its first five years of operation, according to techcentral.co.za.

What happened

The draft, titled the Electricity Trading Platform Regulatory Framework, defines the initial phase as the period from commercial launch until five years later. During this time, market participants may not use software that submits bids and offers without manual review. Participants can still connect via application programming interfaces, but all market‑clearing, dispatch‑scheduling and settlement algorithms must be approved by Nersa.

What the reports add

The document notes that while automated systems can improve efficiency, they also pose risks to market integrity, competition and operational stability if not properly governed. Nersa says it will review the ban based on operating experience and the maturity of risk controls, and it has asked stakeholders whether the measure is appropriate.

What was said

The draft states: “Automated algorithmic trading systems used by market participants to submit bids and offers without manual review are not permitted to interact with the trading platform during the initial phase of Sawem’s operation.”

How it came about

The framework follows the licensing of the National Transmission Company South Africa (NTCSA) as market operator in November 2025. The draft outlines six accreditation stages the platform must clear before commercial launch, and it requires 99.9% availability, annual penetration testing and a five‑year data‑retention policy.

Key facts

• Nersa proposes a five‑year ban on fully automated electricity trading in Sawem. (techcentral.co.za)
• The ban applies to algorithmic systems that submit bids without manual review. (techcentral.co.za)
• Stakeholders may comment on whether the ban is an appropriate transitional measure. (techcentral.co.za)
• NTCSA was licensed as market operator in November 2025 and must meet six accreditation stages before commercial launch. (techcentral.co.za)

Sources

• [1] techcentral.co.za — originally reported as “Nersa wants five-year ban on automated electricity trading”