COMPETITION ACT: ENERGY USER BLOCK EXEMPTION AMENDED

COMPETITION ACT: ENERGY USER BLOCK EXEMPTION AMENDED

• 05 January 2026
• Trade, Industry & Competition
• SA Legal Academy

The Department of Trade, Industry & Competition has gazetted amendments to a block exemption issued in May 2023 with the aim of alleviating, containing and minimising the effects on certain energy users of electricity supply constraints prevalent at the time.

Immediately in force, the amendments:

• exempt any qualifying ‘industry in distress’ from sections of the 1998 Competition Act prohibiting certain practices
• define the term ‘industry in distress’ as one ‘experiencing a substantial exit by firms, resulting in industry-wide job losses due to (ongoing) macro-economic challenges’, and
• enable collaboration in:
  • securing backup or alternative energy supply, or
  • reducing energy costs, or
  • promoting optimal, efficient energy use, or
  • sharing sites, infrastructure equipment and facilities.

Whether an industry qualifies for the exemption will be determined by the department on a case-by-case basis – in consultation with the National Energy Regulator of South Africa.

• amended exemption notice
• original exemption

Published by SA Legal Academy Policy Watch

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