- Outstanding claims reduced from about R2 billion to R1.5 billion since mid-June.
- Utility targets full assessment and payment of approved claims by end August 2026.
- Process improvements aim to support IPP liquidity and strengthen grid stability.
The National Transmission Company South Africa is making steady progress in resolving a surge in curtailment related claims, reducing the value of outstanding claims by 25% from about R2 billion to R1.5 billion since mid-June. The figure includes new claims submitted after 14 June 2026.
The company processes around R45 billion in annual payments to Independent Power Producers. A sharp increase in both the volume and complexity of claims during April and May created temporary bottlenecks as verification and assessment requirements exceeded typical levels.
Chief executive Monde Bala said the utility remains on track to clear the backlog. He noted that all outstanding claims are expected to be assessed and approved payments completed by the end of August 2026, supported by improved settlement efficiency as part of broader market reform implementation.
The company has deployed additional resources and refined internal processes to accelerate verification and settlement while maintaining governance, contractual and financial controls. These measures are designed to improve turnaround times and support the financial position of affected IPPs.
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NTCSA continues to engage closely with IPPs and industry bodies, providing updates on curtailment volumes, claims processing performance and efforts to reduce delays. Industry response has been constructive, with ongoing dialogue aimed at improving transparency and coordination.
The utility administers power purchase agreements across 117 projects with a combined capacity of 10 083 MW. As the energy mix evolves, it is managing increasingly complex system dynamics to ensure fair participation while safeguarding security of supply and limiting costs to consumers.
Curtailment is becoming a standard feature of modern power systems with high levels of renewable energy. It occurs when generators are instructed to reduce output to keep the grid stable, often due to network constraints or periods of excess supply, particularly during low demand periods such as midday.
The variability of solar and wind generation means peak output does not align with peak demand. To maintain system reliability, baseload generation, mainly coal fired plants, continues to operate at minimum stable levels. Flexible sources such as hydro and pumped storage are adjusted first, with curtailment used as a final balancing measure when required.
Author: Bryan Groenendaal
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