South Africa’s new National Transmission Company gets trading licence approval from energy regulator

  • The Energy Regulator, NERSA, approved that the National Transmission Company of South Africa (SOC) Ltd (NTCSA) be issued with a trading licence. 
  • The Energy Regulator also approved an import and export licence for the NTCSA, subject to licence conditions imposed.

The service that will be rendered under the trading licence is the buying and selling of electricity as acommercial activity only. The NTCSA applied for a trading licence to buy and sell electricity from Eskom power stations, independent power producers (IPPs) under section 34 determinations, including cross-border electricity imports and IPP generators under the Eskom Holdings programmes, such as short-term power purchases only to Eskom Distribution exclusively.

The term of the NTCSA’s trading licence will be five years as a transitional arrangement to allow for transition from the exclusive trading arrangement and incorporation of changes that may emanate from the ERA amendment and price review processes. This will enable the Energy Regulator to review the licence conditions after five years.

Import export

The NTCSA intends to conduct import and export of electricity activities in terms of its import/export licence throughout the Southern African Development Community (SADC) using the NTCSA’s transmission network and the transmission systems of other SADC member countries.

The service that will be rendered under the licence is importing and exporting power in terms of power supply agreements, power purchase agreements and Southern African Power Pool (SAPP) competitive markets. NTCSA will also facilitate wheeling on behalf of cross-border utilities and receiving a wheeling service from the cross-border utilities.

The approval will enable the continuation of import and export activities presently fulfilled by Eskom Holdings SOC Ltd. Imports and exports are transacted based on power purchase agreements and power sales agreements entered into with cross-border utilities, cross-border generators, as well as via the SAPP competitive markets. The transmission network operated by the NTCSA will be used for import and export activities.

Author: Bryan Groenendaal

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