Eskom now has powers and duties to shape new generation capacity.
The National Energy Regulator of South Africa (NERSA), announced that subsequent to its meeting held on Monday, 11 March 2024, a decision was made to transfer Eskom Holding’s powers and duties related to section 34 Power Purchase Agreements (PPAs), with Independent Power Producers (IPPs) to the National Transmission Company South Africa (NTCSA), in accordance with section 21(1) of the Electricity Regulation Act, 2006 (Act No. 4 of 2006).
In addition to this decision, the Energy Regulator further sanctioned the issuance of a cost recovery letter to the Transmission Company if South Africa (NTCSA).
This decision means the NTCSA replaces Eskom, as a buyer for section 34 IPP projects, and the amendment of the IPP’s generation licence. This is according to section 16(1)(d) of the Electricity Regulation Act.
The NTCSA’s trading licence will be amended accordingly.
Eskom’s application to NERSA back in December 2023, was to transfer its powers and duties under section 34 of the Electricity Regulation Act to the NTCSA.
The power utility said this is a pivotal step in its unbundling process, as outlined in the “Roadmap for Eskom.”
Nhlanhla Gumede, NERSA’s Regulator Member responsible for Electricity Regulation, expressed enthusiasm for these approvals, describing them as great and momentous decisions that are significant in advancing the unbundling process, and good for the transformation of the electricity supply industry at large.