- The Organisation Undoing Tax Abuse (OUTA) has raised serious concerns about a new position paper issued by the Association of Municipal Electricity Utilities (AMEU), arguing that its guidance on safety compliance for Small-Scale Embedded Generation (SSEG) installations under 1 MVA misrepresents national legislation and could mislead municipalities, electricians and consumers.
While OUTA emphasises that public and worker safety remains paramount, the organisation says the AMEU document contains “incorrect interpretations of legislation” and introduces requirements beyond the legal authority of municipalities. OUTA warns that such guidance risks disrupting established regulatory processes and creating confusion in the electricity sector.
The AMEU asserts that its position paper was developed through consultation with subject matter experts. However, OUTA notes that the document offers no list of contributors, nor any indication that official technical committees responsible for developing electrical safety regulations and standards were involved. According to OUTA, this lack of transparency makes it unclear whether the paper reflects broad industry consensus or an internal AMEU viewpoint.
National legislation already outlines the regulatory structure for electrical installations—including SSEG—through the Electrical Installation Regulations and incorporated national standards. Under the Occupational Health and Safety Act, only the Minister of Employment and Labour may issue regulations, and only the South African Bureau of Standards (SABS) may set technical requirements for electrical installations. The Chief Inspector, through Regulation 10 of the Electrical Installation Regulations, is the sole authority for interpreting standards in the event of disputes. OUTA stresses that municipal associations such as the AMEU hold no mandate to reinterpret or supplement these national laws and standards.
One of OUTA’s chief criticisms is the AMEU’s claim that municipalities may require additional approval processes or “separate inverter commissioning documents” beyond the legally recognised Certificate of Compliance (CoC). OUTA says this directly contradicts the Electrical Installation Regulations, which grant Registered Persons exclusive authority to inspect, test and certify installations. A valid CoC, OUTA notes, confirms full legal compliance. Municipalities, which are not enforcement authorities under the Act, cannot override this certification or refuse connection on safety grounds where a CoC is in place.
OUTA also disputes AMEU’s assertion that the withdrawal of SANS 10142-1-2 left a gap in standards related to SSEG installations. According to OUTA, South Africa has already adopted IEC 60364-7-712 through direct normative reference in SANS 10142-1, which also sets clear requirements for PV systems and inverter integration. As such, OUTA says the regulatory framework remains intact and municipalities have no justification for introducing interim approval systems or engineering sign-offs.
The organisation further criticises the AMEU for presenting the NRS 097 specifications as compulsory safety standards. OUTA notes that NRS documents are utility specifications—not legally binding standards—and cannot be enforced on the public or used to support additional municipal requirements, especially for residential SSEG systems that do not feed power into the grid.
Additionally, OUTA argues that the AMEU has misstated registration requirements under the Electricity Regulation Act (ERA). The Act, OUTA notes, does not cover SSEG systems up to 100 kVA; off-grid and standby systems are exempt; systems under 100 kVA that do not export electricity are also exempt; and only systems above 100 kVA require registration with NERSA. OUTA says municipalities cannot convert exempt systems into registrable ones or create new administrative processes under the guise of safety regulation.
While calling for strict adherence to national legislation, OUTA emphasises that safety remains a shared responsibility. Municipalities may request CoCs and inspect supply-related infrastructure within the limits of the regulations. They may also report potentially unsafe installations to the Department of Employment and Labour. What they may not do, OUTA stresses, is redefine competency requirements, impose parallel approval processes or rewrite statutory safety obligations.
OUTA is urging the AMEU to work collaboratively with the broader sector by participating in an inclusive national forum convened through the South African Quality Control Council Electrical (SAQCC Electrical). The meeting is expected to bring together municipalities, the Department of Employment and Labour, SABS, Eskom and industry associations. OUTA says such cooperation is essential to ensure future guidance reflects collective expertise and aligns with national law.
The organisation reaffirms its commitment to promoting lawful, transparent and rational governance in the electricity sector, arguing that a stable regulatory environment is crucial for public safety, investor confidence and South Africa’s transition toward a more secure and decentralised energy system.
Author: Bryan Groenendaal
