The Energy Regulator (NERSA) approved the National Transmission Company of South Africa (SOC) Ltd (NTCSA), be issued with a trading licence.
The service to be rendered under the trading licence, is the buying and selling of electricity for commercial reasons.
According to a statement from NERSA, the NTCSA applied for a trading licence to buy and sell electricity from Eskom power stations, independent power producers (IPPs) under section 34 determinations, including cross-border electricity imports and IPP generators under the Eskom Holdings programmes, such as short-term power purchases only to Eskom Distribution exclusively.
Speaking to media, energy analyst, Chris Yelland, said NERSA’s move to grant a licence for a transmission entity, is a step in the right direction towards liberalizing the sector.
He also said consumers would pay less for electricity in the long term, as a result of this decision.
The NTCSA’s trading licence is for five years.
In addition, the Energy Regulator approved that the NTCSA be issued with an import and export licence.
This license will allow the entity to conduct import and export of electricity activities related to power purchase agreements and Southern African Power Pool (SAPP) competitive markets in the Southern African Development Community (SADC).
SA’s largest labour union federation, Cosatu, said in a statement, back in August 2022, that it was dismayed by the unbundling of Eskom, and expressed concern that the unemployment rate would worsen.
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