Legal updates and opinions
News / News
Thank you energy minister, now let’s hurry
Former Energy Minister Jeff Radebe has at last told the National Energy Regulator of South Africa (Nersa) to license applications from businesses allowing them to generate their own power and feed it into the national grid.
Radebe’s welcome move will certainly help in alleviating electricity supply constraints as it opens the generation market to allow the private sector to provide power together with Eskom.
But more needs to be done – and in a hurry to prevent the lights going out again.
Nersa is only allowed to license applications from industrial, agricultural, mining and similar businesses to generate their own capacity for projects between 1 megawatt (MW) and 10MW – without waiting for the promulgation of the new Integrated Resource Plan (IRP) which has been under discussion by the National Economic Development and Labour Council (Nedlac) for many years.
It shows what can be done when you work around the lack of progress that has hampered Nedlac for so long now. The draft IRP, tabled in August 2018, is likely to take several more months before consultation is complete.
But the newly appointed Minister needs to go even further to allow smaller generation by businesses and households that want to produce energy, mostly for their own use. Typically these entities would produce up to 1MW and will need to be registered. Nersa expects to be able to register these entities within the next two to three months.
But this is where they need to hurry, provide clarity and get this administrative hurdle out of the way.
As winter approaches, South Africa’s economy cannot afford to wait for months on end for these smaller projects to be approved. The morale of the country is also important and it would be real proof of government’s new broom election promise for there to be fewer blackouts (ideally no blackouts at all)- and demonstrable steps to a long term solution.
Fortunately, households producing less than 100 kilowatts (kWh), typically by way of solar panels, do not need to register with Nersa.
Latest News
Top ten risks for creditors of companies going into Business Rescue in 2021
Chapter 6 of the Companies Act No. 73 of 2008 Continued pressure on business and world economies due to the [...]
Information officers take note!
Promotion of Access to Information Act, 2000 regulations 1. The long-awaited Promotion of Access to Information Act, 2000 regulations ("the [...]
Advancing credit to financially distressed companies – warning signals for suppliers and creditors?
Advancing credit to financially distressed companies Continued pressure on business and world economies due to the ongoing battle with the [...]
Basics of Business Rescue
What is business rescue? Business rescue proceedings are proceedings aimed to facilitate the rehabilitation of a company that is financially [...]
Claims for non-payment in terms of Section 73A of The Basic Conditions of Employment Act
Section 73A of The Basic Conditions of Employment Act (BCEA) In 2019, the Basic Conditions of Employment Act 75 of [...]
LIBOR: The end of an era….a time for change
London Interbank Offered Rate ("LIBOR") Over the last couple of years, there has been talk in the banking and finance sector of the announcement by the UK's Financial [...]
