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Transmission network and system operations remain a monopoly institution under electricity industry deregulation. This can be attributed to the need for efficiency and effectiveness. The unbundling of the electricity value delivery chain and introduction of competition amongst generators and distribution companies raises challenges to the operation of this vital sector of the industry. Various models for transmission network and system operations peculiar to specific industry environments have been proposed by policymakers involved in electricity deregulation. In the wider industry context, the success of these models depends on the operational framework from which their roles and functions are derived, in addition to the appropriate regulatory incentive schemes. An assessment of the proposed transmission and system operations (TSO) model for the new deregulated electricity industry in South Africa is presented in This work. The functions and regulatory regime undertaken for assessing transmission and system operations performance under deregulation are discussed.