Eskom welcomes transmission licence but still requires trading licence and an import/export licence

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  • Eskom welcomes the decision by the National Energy Regulator of South Africa (NERSA) to issue the National Transmission Company South Africa SOC Ltd (NTCSA) with a licence to operate the Transmission system.
  • The licence and associated licence conditions and reasons for decision will be issued by NERSA in due course. Read more
  • Eskom still awaits the outcome of its trading licence and an import/export licence applications with NERSA.
  • The additional two licences are required to complete the successful unbundling of the transmission division into a wholly owned independant subsidiary of Eskom Holdings.
  • The NTCSA unbundling process has also been hampered by parent debt covenants. Read more 

The legal separation of Eskom into three entities, namely Generation, Distribution and Transmission is a strategic objective and key aspect of Eskom’s Turnaround Plan envisaged in the Department of Public Enterprises’ “Roadmap for Eskom in a reformed electricity supply industry.” The Transmission licence decision marks a significant milestone in the legal separation process of the Transmission Division.

NTCSA has also applied for a trading licence and an import/export licence, which NERSA is currently considering. The granting of the requisite operating licences to NTCSA is one of the key dependencies required to enable the operationalisation of the NTCSA.

Author: Bryan Groenendaal


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