Blu Label Eyes New Energy Frontier After Cell C Exit

Following its strategic separation from Cell C, South African digital distribution group Blu Label is making a significant pivot into the electricity sector. Leveraging decades of experience in payments and municipal infrastructure, the company aims to become a major player across the entire power value chain.

Blu Energy, Blu Label’s energy unit, has already secured a multi-year electricity trading license from NERSA and identified over 400MW of potential capacity. The company plans to deploy up to 180MW in the near term, focusing on renewable generation, battery storage, and municipal grid integration.

“We’re moving beyond just vending commissions to capture more value across the electricity ecosystem,” explained Mark Levy, co-CEO of Blu Label. “This includes trading, wheeling power, deploying green energy solutions directly into municipal grids, and even helping municipalities improve revenue assurance.”

The company has already contracted 28MW of rooftop solar capacity and plans additional ground-mounted projects with deployments expected in late 2026 or early 2027. Blu Label estimates that unbilled or misbilled electricity revenues could reach R30 billion annually across municipalities, representing a significant opportunity.

While the energy push is new, Blu Label’s existing electricity business generated R24.3 billion in revenue last year, handling payments on behalf of utilities. The company also has deployed over 50,000 smart meters with another 10,000-15,000 in its pipeline.

The shift comes after a challenging period for Blu Label as it navigated Cell C’s restructuring, which resulted in a R5.19 billion net loss but also simplified the group’s balance sheet and created new strategic options.