- South Africa’s state owned energy utility, Eskom, has expressed concern over the recent decision by the National Energy Regulator of South Africa (NERSA) to grant trading licences to multiple applicants, despite Eskom’s objections to allowing more than one licensee to provide electricity in the same area.
- One of applicants granted an energy trading licence is Reunert owned Apollo Energy.
Eskom argues that trading licences were approved without the necessary trading rules for the industry being developed, a point acknowledged by the Regulator members during their deliberations. “The decision by the Regulator, according to Eskom, infringes upon and breaches NERSA’s own rules and the licences issued to Eskom by NERSA” said Eskom in a statement.
“Eskom disagrees with this decision and has instructed its attorneys to initiate legal proceedings in the High Court. Eskom, like all other participants in the electricity industry, operates based on established rules and subscribes to a rule-based transition. However, this adherence to the rules has been misinterpreted as anti-competitive behaviour, which Eskom firmly denies,” the utility adds.
Eskom adds that they remain committed to accelerating the reform of the rules to enable a competitive energy market. “As presented during the public hearing, Eskom will collaborate with various stakeholders to ensure that a competitive market is developed through a consultative legal framework. Eskom advocates for a dynamic electricity market that ensures energy security, access and affordability, fosters growth, and delivers long-term benefits for South Africa and sub-Saharan Africa,” the utility concludes.”
In a statement, NERSA said they note the statement issued by Eskom on Wednesday, 30 October 2024, wherein Eskom indicated its intention to approach the High Court to review the Energy Regulator’s decision made on 29 October 2024 to approve applications for electricity trading licences. “NERSA has not yet received the review application and will advise on the way forward once the review application has been received,” the regulator added.
Apollo Africa is one of the IPP’s recently granted an electricity trading licence by Nersa.
“We’re thrilled to have our licence and to be at the forefront of this new era in the energy sector. The Electricity Regulation Amendment Act opens unprecedented opportunities for competition and cost reduction in energy,” says chief executive officer of Apollo Africa, Jenna Harris.
“We’re moving full steam ahead with our first major wind project and are dedicated to providing our customers with the reliable, cost-effective power they need. Many of our customers have already invested in rooftop solar solutions, and we’re committed to supplying the balance of their energy needs in the most efficient way possible,” adds Harris.
Other trading licences were issued to Discovery Green, Green Electron Market and GreenCo Power Services. An import/export licence was issued to GreenCo Power Services.
Author: Bryan Groenendaal
