BluEnergy Trading, a subsidiary of JSE-listed Blue Label Telecoms, has been granted a multi-year energy trading licence by the National Energy Regulator of South Africa (Nersa). This landmark authorization allows the group, historically recognized for its prepaid airtime distribution and its majority stake in mobile operator Cell C, to officially buy and sell electricity. The move marks a significant strategic pivot for Blue Label, as it seeks to leverage its extensive fintech and distribution footprint to address South Africa’s shifting energy landscape.
Read: Starlink escalates public campaign for South African operating licence
BluEnergy plans to act as a vital bridge between independent power producers (IPPs) and local governments. The company’s primary competitive advantage lies in its integration with Cigicell, a Blue Label entity that already manages prepaid electricity vending for more than 95 municipalities across the country. By utilizing this existing infrastructure, BluEnergy can solve the chronic “collection problem” that often deters energy investors. This allows for the combination of long-term power purchase agreements with proven prepaid revenue collection and automated settlement systems.
According to BluEnergy CEO Aaron Suckerman, the company will operate through three specialized entities designed to cover the entire energy value chain. These divisions will focus on project development, the ownership and operation of energy assets, and the procurement and trading of power facilitated by the new Nersa licence. Suckerman noted that this structure is designed to remove traditional barriers to entry, providing municipalities with a secure and sustainable long-term solution for their energy needs.
See also
As South Africa’s power sector undergoes radical reform to allow for more private participation, Blue Label is betting that its deep municipal reach provides a unique structural advantage. Co-CEO Mark Levy emphasized that the company’s ability to act as both an offtaker and a trader, supported by a strong balance sheet and established fintech capabilities, positions the business to deliver sustainable energy solutions at scale. With the licence now secured, the company is shifting its focus toward building out its commercial project pipeline and securing supply from independent producers.
