Video: NERSA public hearing held 18 July 2024 on applications for Generation Licence and Trading, and Import and Export Licence
- Eskom has lodged its objection to the granting of generation and/trading the licences to IPP’s where Eskom customer will be taken over in an area where they currently hold a licence.
- The state-owned energy utility argue that the current rules of the National Energy Regulator of South Africa (Nersa) prohibit two or more licensees supplying the same area.
South Africa’s energy regulator, NERSA, held a public hearing yesterday (18 July 2024) on applications for Generation Licence and Trading, and Import and Export Licence. During the hearings, a representative from the state-owned power utility, Eskom, made objections to some independent power producers (IPP’s) generation licences applications. The IPP’s include amongst others, Discovery Green and Africa GreenCo.
Ms Mohlago Masekela from Eskom Distribution Division argued that if a trading licence is issued to the applicants, the holders would be entitled to sell electricity to existing Eskom customers which means there will be two suppliers of power to a specific area. “This arrangement will result in two or more licensees supplying in the same areas or to customers within another licensee’s area of supply,” Masekela said. Citing a few specific rules, she added that such a scenario is prohibited by NERSA’s rules for licensable areas of supply.
Image credit: Eskom
Masekela added that granting such generation licences would also compromise the sustainable and orderly development of electricity supply infrastructure and allow for a cherry-picking of customers. She explained that cherry-picking was already evident in one application where the energy traders have indicated their intent of contracting only with large off-takers and not smaller users.
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Masekela concluded by stating that Eskom objects to the granting of the licences where Eskom customer will be taken over.
Author: Bryan Groenendaal
