Nersa approves maximum piped gas prices for three suppliers
The National Energy Regulator of South Africa (Nersa) has approved maximum prices of gas for three natural gas suppliers Spring Lights Gas, Natural Gas Vehicles and Virtual Gas Network.
Spring Lights Gas may charge a maximum gas price of R155.34 per gigajoule (GJ) for traders or resellers of gas and a maximum price of R166.92/GJ for end-user customers, effective from July 31 this year until June 30, 2026.
The prices will be subject to a monthly adjustment with a one-month lag in its implementation until June 30, 2026, based on Spring Lights Gas’ contract with its suppliers.
In turn, Natural Gas Vehicles may charge a maximum gas price of R388.77/GJ for the period from May 1 this year to February 28, 2026. This price is for a period of ten months and will not be adjusted.
Nersa also approved a maximum gas price of R293.30/GJ for Virtual Gas Network, from May 1 this year to February 28, 2026, which will also not be adjusted.
For all three applications, the maximum gas price is exclusive of value-added tax and discounts are allowed but must be applied in accordance with the non-discrimination provisions of Section 22 of the Gas Act.
The companies are required to apply for the next maximum gas price four months before the expiry of the currently approved maximum price.
Nersa piped-gas regulation regulator member Nomfundo Maseti says the maximum price determinations are designed to militate against the lack of sufficient competition within the relevant gas-piped markets.
By setting maximum prices that serve to emulate prices in competitive markets, it facilitates conditions for effective competition.
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