https://newsletter.en.creamermedia.com
Africa|Business|Energy|Eskom|Export|Power|SECURITY
Africa|Business|Energy|Eskom|Export|Power|SECURITY
africa|business|energy|eskom|export|power|security

Regulations prohibiting two suppliers in one area need to be changed – Eskom

26th July 2024

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

Font size: - +

State-owned power utility Eskom says the current National Energy Regulator of South Africa- (Nersa-) approved rules for Licensable Distribution Areas of Supply prohibit two or more licensees supplying in the same area.

In explaining the position it took during a July 18 virtual public hearing held by Nersa to discuss applications for trading, import and export licences, Eskom says that, if Nersa approves the trading licences applied for by the applicants, the trading licence holders will be able to sell electricity to existing Eskom customers.

This would result in multiple licensees supplying in the same area or customers within another licensee’s supply area, which is prohibited in the current rules, it states.

“It is crucial that regulatory changes keep pace with industry advancements and Eskom remains committed to reform and supporting an orderly transition based on established rules.

“Eskom advocates for a competitive and dynamic electricity market that ensures energy security, access and affordability, fosters growth and delivers long-term benefits for South Africa,” the utility says.

Additionally, some of the applicants for a trading licence have confirmed in their application that they will not supply residential or small business customers but rather only large power users. This is cherry-picking of customers,” the utility says.

The current rules and tariff decisions accommodate cross-subsidies for certain tariff categories.

If a group of contributing customers is removed from this cross-subsidy base, it will exert further pressure on the remaining customers. Large power users cherry-picked by licence applicants are subsidy-contributing customers, Eskom says.

The utility says it awaits the outcome of Nersa’s consultation process and will keep its stakeholders and the media updated on these developments.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Research Reports

Latest Multimedia

Photo of Martin Creamer
On-The-Air (06/09/2024)
6th September 2024 By: Martin Creamer

Showroom

John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Unisa, Inqaba Biotec launch next-generation DNA
Unisa, Inqaba Biotec launch next-generation DNA
4th September 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.239 0.328s - 209pq - 2rq
Subscribe Now