- The National Energy Regulator of South Africa (NERSA) announced that it has approved the principles to be used when determining prices within the Electricity Supply Industry (ESI).
The approved principles to be used when determining prices within the electricity supply industry are as follows:
- Unbundling of activities across the value chain (Activity-Based Costing)
- Unbundling of services within each activity (Differentiated Load Profiles)
- Using merit order dispatch approach (least cost first determination to set tariffs for each type of load).
The approved principles mentioned above will be included in the Multi-Year Price Determination Methodology (MYPDM) to be used by licensees when applying for the 2023/24 tariffs and beyond. The Energy Regulator further approved the partial implementation of the principles to allow licensees to move to full implementation gradually.
“The Reasons for Decision (RfD) document will be published in due course,” Nersa concluded in their press release.
Author: Bryan Groenendaal