Podcasts about national energy regulator

The National Energy Regulator of South Africa (NERSA) has approved Eskom's 12.74% tariff increase for direct customers and 11.32% for municipalities. The South African Local Government Association, SALGA's Head of Energy and Electricity, Nhlanhla Ngidi is warning that the tariff increase will exacerbate illegal electricity connections as struggling consumers seek illicit means to access power. Ngidi spoke to our Senior producer, Ronald Phiri

The Democratic Alliance (DA) has rejected the National Energy Regulator of South Africa, NERSA's approved electricity tariff increases. The party is citing the significant burden it will place on South African consumers. NERSA has approved a 12.74% tariff hike for the 2025/26 financial year, substantially lower than Eskom's requested 36% increase. Elvis Presslin spoke to Kevin Mileham, DA Spokesperson on Electricity & Energy

Chris Yelland is Managing Director at EE Business Intelligence and he joins John Maytham to unpack the National Energy Regulator of South Africa’s (Nersa) decision to grant Eskom a 12.74% electricity tariff increase, effective April 1, 2025.See omnystudio.com/listener for privacy information.

Stephen Grootes speaks to Chris Yelland, Energy analyst & managing director at EE Business Intelligence about the National Energy Regulator's approval of a 12.72% electricity tariff increase for Eskom, significantly lower than the utility's requested 36% hike.See omnystudio.com/listener for privacy information.

Financial Compliance expert Paul Nel of Prisma says the solution to collecting the R92 billion owed to ESKOM by municipalities and the billions owed to Water boards is to liquidate dysfunctional municipalities in terms of the Municipal Finance Management Act after all the intervention processes of provincial and National Treasury have failed. “…it's more of a business rescue. It's not the same as what we understand on the liquidation with the private sector or any other business or private person where all the assets are sold. Not with a municipality. It is only the non-essential assets that must be sold and the full amount of that should be provided for full settlement for all its obligations, which is basically ESKOM and Water Boards." Nel says, in terms of the MFMA, a court order could also be obtained to get rid of the whole council as well as of all officials that are not adding value to the municipality. “…the big advantage of such a drastic step is that you will have a Metro or municipality with a clean sheet with no obligations.” Nel also provides figures on how ESKOM has overcharged the consumer since 2009, and gives his take on the reasons behind the continued high tariff increases. He was one of those who made a presentation to The National Energy Regulator of South Africa (NERSA) on the proposed 66% tariff hikes over the next three years.

Eskom, has applied to the National Energy Regulator of South Africa to approve a 36.1% electricity price hike from April 2025, a 11.8% price increase in 2026 and an 9.1% increase in 2027. BOSA Leader Mmusi Maimane is set to lead a picket today against NERSA's proposed electricity tariff increase, which is expected to exacerbate the economic hardship faced by many South Africans. The picket will take place outside the public hearings in Midrand, Gauteng, where activists and concerned citizens will also gather to voice their opposition. For more insight, Elvis Presslin spoke to BOSA Spokesperson, Roger Solomon

Stephen Grootes speaks to Lindo Ngema - founder of Prominent Energy Solutions about the looming 36% electricity tariff hike proposed by Eskom, as the National Energy Regulator of South Africa (Nersa) kicked off public hearings in Cape Town, sparking widespread concern and outrage among residents.See omnystudio.com/listener for privacy information.

The Democratic Alliance is set to protest against Eskom's proposed 40% tariff hike at the National Energy Regulator of South Africa, NERSA's public hearings in the Western Cape today. The hearings in Cape Town will provide a platform for the public to voice their concerns over the proposed tariff increase, which Cape Town Mayor, Geordin Hill-Lewis says will have a devastating impact on households and businesses already struggling with the cost of living crisis. He spoke to our Senior Producer, Ronald Phiri

The City of Cape Town will be opposing Eskom's 44% price hike at the National Energy Regulator of South Africa's public hearings tomorrow. Alderman Xanthea Limberg, together with a delegation from the City, will be making oral and written submissions on Eskom's Multi-Year Price Determination for the period between 2025/26 to 2027/28.See omnystudio.com/listener for privacy information.

The Democratic Alliance, DA will hold a National Day of Action across all nine provinces to oppose Eskom's proposed 36% electricity tariff increase. This significant hike, which still requires approval from the National Energy Regulator of South Africa, NERSA would come into effect on April 1 next year, adding to the already substantial financial burden on South Africans. To shed more light on this matter, Elvis Presslin spoke to Kevin Mileham, the DA's spokesperson on Electricity and Energy

The High Court in Pretoria has denied electricity regulator, National Energy Regulator of South Africa (NERSA) and the municipal association, the South African Local Government Association (SALGA) leave to appeal against its earlier judgment precluding Nersa from approving tariff increases in more than 100 municipalities. The court agreed with AfriForum and ordered that Nersa was not authorised to approve any tariff increase unless they were based on a cost-of-supply (CoS) studies. Sakina Kamwendo spoke to Morne Moster, Manager of local government  affairs at AfriForum

Sasol is looking for another court to rule in its favour by deciding to appeal the decision ofthe Pretoria Hgh Court that set aside National Energy Regulator of SA (Nersa) approval of the group's maximum gas prices for March 2014 to June 2023. Att the forefront of the matter of dragging Sasol and Nersa to court was the Industrial Gas Users Association of Southern Africa (Igua-SA), which represents industrial gas users such as Illovo, Nampak, Mondi and Arcelor Mittal SA. To hear their thoughts on the matter, we are joined by Jaco Human, CEO of Igua-SA.See omnystudio.com/listener for privacy information.

In a significant victory for consumers, the Gauteng High Court has ruled that municipal electricity distributors cannot increase their prices from July 1, 2024. This decision comes after AfriForum's successful urgent application to block the National Energy Regulator of South Africa (Nersa) from considering tariff hike requests from municipalities. The court found that distributors failed to submit the required Cost of Supply studies to Nersa, a critical requirement for tariff increases. To discuss the implications of this ruling Elvis Presslin spoke to Morné Mostert, Manager of Local Government Affairs at AfriForum

The High Court in Pretoria on FRIDAY  found that the National Energy Regulator of South Africa's (NERSA) decision to consider municipalities' applications for electricity tariff increases without the required cost studies is unlawful and invalid. According to Afriforum this means that the regulator may not consider any applications for electricity tariff increases from municipalities unless the required cost studies are also submitted. AfriForum submitted an urgent application to the court earlier this month to prevent NERSA from proceeding with these considerations. 

Eskom is seeking to increase electricity tariffs by a significant 36% in 2025, following a 12% rise earlier this year. If the National Energy Regulator of South Africa (Nersa) approves the proposal, the hike will take effect on April 1, 2025. The South African Federation of Trade Unions (SAFTU) has vehemently opposed the move, warning that it will result in the loss of free basic electricity for millions of households. Joining Elvis Presslin to discuss the implications of this proposed tariff increase is SAFTU's spokesperson, Trevor Shaku

Bongani Bingwa speaks to Morné Mostert, Manager for Local Government Affairs at Afriforum and Economist, Dawie Roodt about their urgent application in the Gauteng High Court against the National Energy Regulator of South Africa's (Nersa) increased municipal electricity tariff hikes.See omnystudio.com/listener for privacy information.

Lobby group AfriForum has brought an urgent application in the High Court in Pretoria against the National Energy Regulator of South Africa (Nersa) in hopes of preventing the regulator from considering municipalities' applications for electricity tariff increases. AfriFourm said that the tariff hike decision, which is set to be implemented on 1 July, was done “without the required cost studies,” which a 2022 High Court stipulated is required as prescribed by the Electricity Regulation Act 4 of 2006.Morné Mostert, Manager of Local Government Affairs at AfriForum, explains more now  See omnystudio.com/listener for privacy information.

Lobby group AfriForum is taking the National Energy Regulator of South Africa, Nersa to court. The group filed an urgent High Court application against Nersa's electricity tariff increases in July next month. Afriforum says Nersa should review municipal tariff applications in a legal manner. To discuss this further Elvis Presslin spoke to Afriforum Manager of Local Government Affairs, Morné Mostert

Chris Yelland, Energy Analyst and MD at EE Business Intelligence, joins Bruce Whitfield to discuss how The National Energy Regulator of South Africa (Nersa) is negotiating with authorities to potentially increase the free electricity provided to low-income households. Currently, over 8 million households in South Africa benefit from the free basic electricity (FBE) program, receiving 50 kWh per month. At the end of May, Nersa approved a new rate for FBE, which municipalities must pay Eskom for supplying this free power. Starting July 1, the rate for the 2024/25 municipal financial year will be 194.40c/kWh, a 12.5% increase from the previous rate of 172.76c/kWh. Siobhan Redford,  Economist at RMB takes host, Bruce Whitfield through The RMB/BER Business Confidence Index. It edged up ahead of the national election in May, with businesses in the country taking a wait-and-see approach to the country's future now that the results have been declared. Siphiwe Moyo, Executive Director of the Organisational Behaviour Institute, joins Bruce Whitfield to discuss fostering an inclusive work environment amidst political noise. They explore strategies for leaders and HR to navigate sensitive topics, promote open dialogue, and create a sense of belonging and respect within diverse teams. Maintaining such an environment, especially during South African coalition talks, can enhance employee engagement, productivity, and overall organisational success. Bruce Whitfield profiles Zwelakhe Mnguni, the CIO of Benguela Global Fund Managers. Mnguni grew up in a squatter camp in Sebokeng, south of Johannesburg. After finishing school, he worked as a security guard for four years to save money for his education. Despite his humble beginnings and challenging circumstances, Mnguni pursued his dreams. Today, he is a co-founder of Benguela Global Fund Managers and serves as its chief investment officer, overseeing R7.2 billion in assets under management. See omnystudio.com/listener for privacy information.

Chris Yelland, Energy Analyst and MD at EE Business Intelligence, joins Bruce Whitfield to discuss how The National Energy Regulator of South Africa (Nersa) is negotiating with authorities to potentially increase the free electricity provided to low-income households. Currently, over 8 million households in South Africa benefit from the free basic electricity (FBE) program, receiving 50 kWh per month. At the end of May, Nersa approved a new rate for FBE, which municipalities must pay Eskom for supplying this free power. Starting July 1, the rate for the 2024/25 municipal financial year will be 194.40c/kWh, a 12.5% increase from the previous rate of 172.76c/kWh.See omnystudio.com/listener for privacy information.

Reneilwe Morema reports on Eskom's new stage 16 load shedding schedule which has been approved by The National Energy Regulator of South Africa (NERSA). The Stage 16 guidelines have been met with negative reviews from the citizens of South Africa, prompting the Minister of Electricity to release a statement to reassure us that ''these guidelines are just insurance measures should anything happen in the future, this how the System Operator will manage the grid, but in terms of implementing stage 16 nationally it is unlikely to happen.'' --- Send in a voice message: https://podcasters.spotify.com/pod/show/africandiasporanews/message Support this podcast: https://podcasters.spotify.com/pod/show/africandiasporanews/support

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. With the National Transmission Company South Africa (NTCSA) currently scheduled to be operationalised in July and efforts under way to ensure that the Electricity Regulation Act (ERA) Amendment Bill is passed by the current Parliament, work is now advancing on the market code for the future multimarket architecture that will progressively replace the vertically integrated structure that has prevailed for over a century. Eskom transmission MD Segomoco Scheppers will lead the NTCSA once it begins trade after addressing the remaining Companies Act requirements, having already met the key conditions of board independence, licensing and lender consent. He reported that, barring any surprises, the wholly owned Eskom subsidiary would transition towards being the transmission system operator (TSO) envisaged in the amended ERA, which by South African standards had advanced relatively speedily through the Parliamentary process. The ERA is currently being consider by the National Council of Provinces, having been endorsed by the National Assembly, and, if approved, will then be sent to President Cyril Ramaphosa, who has previously expressed an eagerness for the legislation to be promulgated as a matter of urgency. Scheppers admitted during a workshop on the draft market code that would govern the transition to a competitive industry, that he was continuously monitoring his emails for any sign of a legal challenge, following the recent issuance of creditor notices, which stipulated that any objection be lodged within 15 days of issuance and take the form of a legal challenge. However, he expressed cautious optimism that, absent any objections, the July timeframe could be met. This, after Eskom failed to meet the April 1 target date, which would have coincided with the start of the 2024/25 financial year. NEXT CHAPTER That said, he also stressed that the start of trade represented but one major milestone in a larger transformation effort, with the "next chapter" to begin once the ERA came into force and the NTCSA began integrating the TSO roles envisaged in the Act, which provides five years for such an evolution. Initially, the role of the NTCSA would be a "plug and play" version of the one performed hitherto by the transmission division. The amended ERA, however, also stipulates the following: The establishment of an independent TSO to manage the national grid, as well as system and market operations; The creation of a competitive electricity market, enabling multiple generators to compete on a level playing field; Ensure that regulation and tariffs are transparent, effective and clearly defined in scope; and Provide certainty to all market participants of their respective roles and responsibility. Speaking from the same platform as Scheppers, the Presidency's Saul Musker also highlighted that the ERA stipulated that a clear process be followed for the development by NTCSA of a market code, outlining qualifying criteria for power market participants, and for that code to be approved by the National Energy Regulator of South Africa (Nersa). The first draft of such a market code was published on April 19, following initial consultations pursued through the structure of the National Energy Crisis Committee (Necom), which was set up by Ramaphosa in July 2022 in response to the country's intensifying loadshedding crisis. Besides setting short- and medium-term goals to reduce the severity of, and eventually end, loadshedding, Necom was also instructed by Ramaphosa to "fundamentally transform the electricity sector to achieve long-term energy security". Musker said that besides the unbundling of Eskom in line with international trends and establishing the NTCSA, the key next steps related to developing a Nersa-approved market code, setting up a market operator within the NTCSA and imple...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. With the National Transmission Company South Africa (NTCSA) currently scheduled to be operationalised in July and efforts under way to ensure that the Electricity Regulation Act (ERA) Amendment Bill is passed by the current Parliament, work is now advancing on the market code for the future multimarket architecture that will progressively replace the vertically integrated structure that has prevailed for over a century. Eskom transmission MD Segomoco Scheppers will lead the NTCSA once it begins trade after addressing the remaining Companies Act requirements, having already met the key conditions of board independence, licensing and lender consent. He reported that, barring any surprises, the wholly owned Eskom subsidiary would transition towards being the transmission system operator (TSO) envisaged in the amended ERA, which by South African standards had advanced relatively speedily through the Parliamentary process. The ERA is currently being consider by the National Council of Provinces, having been endorsed by the National Assembly, and, if approved, will then be sent to President Cyril Ramaphosa, who has previously expressed an eagerness for the legislation to be promulgated as a matter of urgency. Scheppers admitted during a workshop on the draft market code that would govern the transition to a competitive industry, that he was continuously monitoring his emails for any sign of a legal challenge, following the recent issuance of creditor notices, which stipulated that any objection be lodged within 15 days of issuance and take the form of a legal challenge. However, he expressed cautious optimism that, absent any objections, the July timeframe could be met. This, after Eskom failed to meet the April 1 target date, which would have coincided with the start of the 2024/25 financial year. NEXT CHAPTER That said, he also stressed that the start of trade represented but one major milestone in a larger transformation effort, with the "next chapter" to begin once the ERA came into force and the NTCSA began integrating the TSO roles envisaged in the Act, which provides five years for such an evolution. Initially, the role of the NTCSA would be a "plug and play" version of the one performed hitherto by the transmission division. The amended ERA, however, also stipulates the following: The establishment of an independent TSO to manage the national grid, as well as system and market operations; The creation of a competitive electricity market, enabling multiple generators to compete on a level playing field; Ensure that regulation and tariffs are transparent, effective and clearly defined in scope; and Provide certainty to all market participants of their respective roles and responsibility. Speaking from the same platform as Scheppers, the Presidency's Saul Musker also highlighted that the ERA stipulated that a clear process be followed for the development by NTCSA of a market code, outlining qualifying criteria for power market participants, and for that code to be approved by the National Energy Regulator of South Africa (Nersa). The first draft of such a market code was published on April 19, following initial consultations pursued through the structure of the National Energy Crisis Committee (Necom), which was set up by Ramaphosa in July 2022 in response to the country's intensifying loadshedding crisis. Besides setting short- and medium-term goals to reduce the severity of, and eventually end, loadshedding, Necom was also instructed by Ramaphosa to "fundamentally transform the electricity sector to achieve long-term energy security". Musker said that besides the unbundling of Eskom in line with international trends and establishing the NTCSA, the key next steps related to developing a Nersa-approved market code, setting up a market operator within the NTCSA and imple...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The National Energy Regulator of South Africa (Nersa) has initiated consultations on Eskom's latest Regulatory Clearing Account (RCA) application for the 2022/23 financial year, where Eskom is requesting R9-million, its lowest RCA application since the utility began making yearly submissions under the claw-back mechanism. Given that the amount is less than 2% of Eskom's allowable revenue for the year, Nersa is not required to undertake public hearings. Nevertheless, a consultation document has been published, with virtual hearings scheduled for August 2 and 4 and a decision expected by December 2. Eskom indicates that the cost and revenue variances during the period were relatively modest largely because foregone revenue related to loadshedding during the period has not been included in the RCA. GM for regulation Hasha Tlhotlhalemaje reports that the effect of loadshedding on Eskom during the period was about R20-billion, but that this amount has been excluded from the application as has been the case historically. She also tells Engineering News that the relatively small variance does not reflect a growing convergence between Eskom and Nersa regarding RCA calculations, disputes over which have been the subject of legal action. Eskom has reviewed all RCA decisions from 2014/15 to 2020/21 in court and court processes are still under way involving about R60-billion in what the utility alleges to be incorrect RCA decisions. Tlhotlhalemaje says this view has been endorsed by a court judgment and order for the financial years 2014/15 to 2016/17 RCA decisions, which Eskom subsequently re-reviewed after Nersa failed to comply with the order. Therefore, she does not view the current small variation as reflecting a growing convergence between Nersa and Eskom on the way the RCA mechanism is being implemented. "Instead, the key variances make the difference; one of these being revenue related to loadshedding that has not been included in the RCA. "Thus, an amount of approximately R20-bilion is not recovered, which has always been the tradition, but the amount is very extreme for this financial year," Tlhotlhalemaje explains. Eskom and Nersa also not yet aligned on the methodological approach that should be taken for the next round of tariff applications. Nersa has approve Electricity Pricing Determination Rules (EPDR), which it wants to be implemented for the 2025/26 financial year. Eskom, however, says the EPDR cannot be implemented as its fails to include a method for calculating tariffs and that the prevailing multiyear price determination, or MYPD, framework and methodology will, thus, have to be used. "Eskom is complying with the court order that requires the use of whatever methodology is in existence in September 2023 for the revenue determination for 2025/26. "The process is under way for a decision by Nersa in December 2024," Tlhotlhalemaje tells Engineering News.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The National Energy Regulator of South Africa (Nersa) has initiated consultations on Eskom's latest Regulatory Clearing Account (RCA) application for the 2022/23 financial year, where Eskom is requesting R9-million, its lowest RCA application since the utility began making yearly submissions under the claw-back mechanism. Given that the amount is less than 2% of Eskom's allowable revenue for the year, Nersa is not required to undertake public hearings. Nevertheless, a consultation document has been published, with virtual hearings scheduled for August 2 and 4 and a decision expected by December 2. Eskom indicates that the cost and revenue variances during the period were relatively modest largely because foregone revenue related to loadshedding during the period has not been included in the RCA. GM for regulation Hasha Tlhotlhalemaje reports that the effect of loadshedding on Eskom during the period was about R20-billion, but that this amount has been excluded from the application as has been the case historically. She also tells Engineering News that the relatively small variance does not reflect a growing convergence between Eskom and Nersa regarding RCA calculations, disputes over which have been the subject of legal action. Eskom has reviewed all RCA decisions from 2014/15 to 2020/21 in court and court processes are still under way involving about R60-billion in what the utility alleges to be incorrect RCA decisions. Tlhotlhalemaje says this view has been endorsed by a court judgment and order for the financial years 2014/15 to 2016/17 RCA decisions, which Eskom subsequently re-reviewed after Nersa failed to comply with the order. Therefore, she does not view the current small variation as reflecting a growing convergence between Nersa and Eskom on the way the RCA mechanism is being implemented. "Instead, the key variances make the difference; one of these being revenue related to loadshedding that has not been included in the RCA. "Thus, an amount of approximately R20-bilion is not recovered, which has always been the tradition, but the amount is very extreme for this financial year," Tlhotlhalemaje explains. Eskom and Nersa also not yet aligned on the methodological approach that should be taken for the next round of tariff applications. Nersa has approve Electricity Pricing Determination Rules (EPDR), which it wants to be implemented for the 2025/26 financial year. Eskom, however, says the EPDR cannot be implemented as its fails to include a method for calculating tariffs and that the prevailing multiyear price determination, or MYPD, framework and methodology will, thus, have to be used. "Eskom is complying with the court order that requires the use of whatever methodology is in existence in September 2023 for the revenue determination for 2025/26. "The process is under way for a decision by Nersa in December 2024," Tlhotlhalemaje tells Engineering News.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The National Energy Regulator of South Africa (Nersa) has belatedly moved to quell concern that its recent approval of a new loadshedding code of practice, which increases the number of potential stages from eight to 16, represents a signal that the prospect for higher levels of loadshedding is imminent. Following extensive public consultations undertaken by the National Rationalised Specifications (NRS) Association of South Africa, the third edition of the NRS048-9 standard was approved by the regulator for use by Eskom and municipal system operators during times of electricity constraint. It increases the number of loadshedding stages from the eight outlined in the second edition to 16 with the aim of preventing the system from succumbing to a blackout; a scenario from which it could take South Africa weeks to recover. At Stage 16, which Nersa fulltime regulator for electricity Nhlanhla Gumede described as a "highly unlikely scenario", 80% of demand would go unmet, and South African households and businesses would experience 32 hours of power cuts over a 32-hour period. At Stage 8, a level not yet implemented by Eskom, 40% of the load would be shed, equating to 16 hours over 32 hours. The utility has already implemented loadshedding at Stage 6 on several occasions, which under the third edition of NRS048-9, involves 30% of the load not being met, or 12 hours of loadshedding over 32 hours. In a media briefing hosted partly to explain the code and partly to allay fears, Gumede stressed that the approval of the new code was "not an indication that greater levels of loadshedding are imminent". NRS Association management committee chairperson Vally Padayachee said the updated standard had been developed using a scenario-planning methodology across the entire country load so as to address critical uncertainties, "including the unlikely event of Stage 16". "In so doing, we significantly mitigated the propensity of human error," he added. Prior to the approval of the update to NRS048-9, Eskom and municipal system operators had no firm guidance regarding the implementation of loadshedding beyond Stage 8, which was left open to their discretion. Padayachee argued that the lack of clear guidelines beyond Stage 8 posed a risk, particularly given that system operators would be making difficult decisions in an emergency situation where stress levels would be heightened, which could in turn increase the propensity for error. The new code of practice, he added, would help prepare operators to protect the national electricity grid, as it outlined a structured and proactive approach to addressing a crisis should one arise.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The National Energy Regulator of South Africa (Nersa) has belatedly moved to quell concern that its recent approval of a new loadshedding code of practice, which increases the number of potential stages from eight to 16, represents a signal that the prospect for higher levels of loadshedding is imminent. Following extensive public consultations undertaken by the National Rationalised Specifications (NRS) Association of South Africa, the third edition of the NRS048-9 standard was approved by the regulator for use by Eskom and municipal system operators during times of electricity constraint. It increases the number of loadshedding stages from the eight outlined in the second edition to 16 with the aim of preventing the system from succumbing to a blackout; a scenario from which it could take South Africa weeks to recover. At Stage 16, which Nersa fulltime regulator for electricity Nhlanhla Gumede described as a "highly unlikely scenario", 80% of demand would go unmet, and South African households and businesses would experience 32 hours of power cuts over a 32-hour period. At Stage 8, a level not yet implemented by Eskom, 40% of the load would be shed, equating to 16 hours over 32 hours. The utility has already implemented loadshedding at Stage 6 on several occasions, which under the third edition of NRS048-9, involves 30% of the load not being met, or 12 hours of loadshedding over 32 hours. In a media briefing hosted partly to explain the code and partly to allay fears, Gumede stressed that the approval of the new code was "not an indication that greater levels of loadshedding are imminent". NRS Association management committee chairperson Vally Padayachee said the updated standard had been developed using a scenario-planning methodology across the entire country load so as to address critical uncertainties, "including the unlikely event of Stage 16". "In so doing, we significantly mitigated the propensity of human error," he added. Prior to the approval of the update to NRS048-9, Eskom and municipal system operators had no firm guidance regarding the implementation of loadshedding beyond Stage 8, which was left open to their discretion. Padayachee argued that the lack of clear guidelines beyond Stage 8 posed a risk, particularly given that system operators would be making difficult decisions in an emergency situation where stress levels would be heightened, which could in turn increase the propensity for error. The new code of practice, he added, would help prepare operators to protect the national electricity grid, as it outlined a structured and proactive approach to addressing a crisis should one arise.

The National Energy Regulator of South Africa (Nersa) has approved guidelines for implementing load shedding up to stage 16. The regulator published the latest revision of the load shedding Code of Practice. The revision was developed by experts from Eskom, the Energy Intensive User Group, among others. They say the code aims to help Eskom and municipal distributors mitigate the impact of high load-shedding stages while preventing a grid collapse. Sakina Kamwendo spoke to Vally Padayachee, Chairman of the Management Committee of the National Rationalised Specifications Association of SA and began by asking him why there was a need to revise South Africa's load shedding guidelines.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. All the suspensive conditions opening the way for the National Transmission Company of South Africa (NTCSA) to be constituted as a separate, distinct and wholly-owned subsidiary of Eskom Holdings have been met, Public Enterprises Minister Pravin Gordhan and Eskom chairperson Mteto Nyati have announced in a joint statement. Still outstanding, however, is the fulfilment of Companies Act requirements, which meant that the April deadline for the full operationalisation of the NTCSA had been missed. It is anticipated that the NTCSA will commence trading about two months after the fulfilment of these requirements. The suspensive conditions that have been met include consent from relevant lenders and creditors, the passing of resolutions by the government and the boards of NTCSA and Eskom, as well as the approvals for electricity licences and other regulatory requirements by the National Energy Regulator of South Africa. "The satisfaction of all the suspensive conditions for the merger agreement between Eskom Holdings and the NTCSA signifies a key development in the government's pursuit of a restructured, competitive and dynamic electricity market that will usher in a secure and reliable energy future for South Africans," Gordhan said, while Nyati described the development as a significant milestone in Eskom's turnaround plan. "The separation of the transmission division from Eskom will now set the NTCSA on the path for operationalisation once the necessary statutory requirements as per the Companies Act have been concluded," Nyati added. The legal separation of Eskom into three entities, namely generation, distribution and transmission, was outlined in the Department of Public Enterprises' 2019 'Roadmap for Eskom in a reformed electricity supply industry' and is also in line with legislative reforms being introduce through amendments to the Electricity Regulation Act, which was passed by the National Assembly last month. Gordhan also appointed the inaugural NTCSA board on January 9. In their statement, Gordhan and Nyati argued that the legal separation of NTCSA would improve business performance, increase lender appetite, and bolster confidence among independent power producers that they would receive fair treatment.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. All the suspensive conditions opening the way for the National Transmission Company of South Africa (NTCSA) to be constituted as a separate, distinct and wholly-owned subsidiary of Eskom Holdings have been met, Public Enterprises Minister Pravin Gordhan and Eskom chairperson Mteto Nyati have announced in a joint statement. Still outstanding, however, is the fulfilment of Companies Act requirements, which meant that the April deadline for the full operationalisation of the NTCSA had been missed. It is anticipated that the NTCSA will commence trading about two months after the fulfilment of these requirements. The suspensive conditions that have been met include consent from relevant lenders and creditors, the passing of resolutions by the government and the boards of NTCSA and Eskom, as well as the approvals for electricity licences and other regulatory requirements by the National Energy Regulator of South Africa. "The satisfaction of all the suspensive conditions for the merger agreement between Eskom Holdings and the NTCSA signifies a key development in the government's pursuit of a restructured, competitive and dynamic electricity market that will usher in a secure and reliable energy future for South Africans," Gordhan said, while Nyati described the development as a significant milestone in Eskom's turnaround plan. "The separation of the transmission division from Eskom will now set the NTCSA on the path for operationalisation once the necessary statutory requirements as per the Companies Act have been concluded," Nyati added. The legal separation of Eskom into three entities, namely generation, distribution and transmission, was outlined in the Department of Public Enterprises' 2019 'Roadmap for Eskom in a reformed electricity supply industry' and is also in line with legislative reforms being introduce through amendments to the Electricity Regulation Act, which was passed by the National Assembly last month. Gordhan also appointed the inaugural NTCSA board on January 9. In their statement, Gordhan and Nyati argued that the legal separation of NTCSA would improve business performance, increase lender appetite, and bolster confidence among independent power producers that they would receive fair treatment.

Starting from TOMORROW Eskom will be implementing  a 12.7% electricity price increase, as approved by the National Energy Regulator of South Africa (Nersa). The power utility in October 2023 applied to Nersa for the approval of its Retail Tariff and Structural Adjustment Application and the schedule of tariffs for the period from  the first of April 2024 to  the 31st of March 2025. For more Bongiwe Zwane spoke to Energy expert from the South African National Energy Development Institute (SANEDI)- Professor Sampson Mamphweli

Eskom is set to increase its electricity tariff on Monday by a whooping 12.74 per cent across the board. This was after the National Energy Regulator of South Africa (Nersa) approved the electricity tariff hike for the 2024/25 financial year in January 2023. The  South African Federation of Trade Unions has lambasted that this increase is above the inflation rate and will ultimately widen energy poverty. Sakina Kamwendo spoke to SAFTU national spokesperson, Trevor Shaku

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Electricity Minister Kgosientsho Ramokgopa reports that Eskom's eight "lender groups" have given their consent to the establishment of the National Transmission Company South Africa (NTCSA) as a separate subsidiary under Eskom Holdings. Bondholder consent was one of several key approvals required ahead of the operationalisation of the NTCSA, officially scheduled for April 1, alongside the appointment of an independent board and licensing approvals from the regulator. Ramokgopa did not name the lender groups during a briefing on March 25, saying only that the eighth and final letter of consent was provided "last week". In February, the National Energy Regulator of South Africa (Nersa) officially published the three licences required for the operationalisation of the NTCSA, having approved their transfer from Eskom in 2023. And, Public Enterprises Minister Pravin Gordhan appointed the inaugural NTCSA board on January 9. In March, South Africa's Energy Regulator also consented to the transfer of powers and duties relating to power purchase agreements with independent power producers from Eskom to the NTCSA. Nersa said in a statement that NTCSA's trading licence would be amended to reflect the change. These regulatory decisions align with an application made to Nersa by Eskom, which is unbundling its generation, transmission, and distribution businesses in line with the 'Roadmap for Eskom in a reformed electricity supply industry' published by the Department of Public Enterprises in 2019. While being advanced under the existing Electricity Regulation Act (ERA), they also accord with some of the architectural changes outlined in amendments to the ERA, which were approved by the National Assembly on March 14. The legislation will now serve before the National Council of Provinces, whose approval is also required before it can be signed into law by the President. While opposition lawmakers have raised some concerns with the amendments, particularly with regard to the discretionary powers extended to the Energy Minister and with the future role envisaged for Nersa in setting prices and tariffs, Ramokgopa argued that the legislation would "remake the South Africa energy landscape". "One of the primary interventions [of the legislation] is to make it easier to produce and sell electricity in South Africa. "In order to do this, it established what the Bill refers to as a Transmission System Operator (TSO), which is managed by a newly formed entity that is wholly owned by Eskom and by extension wholly owned by the South African public, the NTCSA," Ramokgopa explained. He said the TSO would ensure that all electricity producers were treated "equally and fairly and be allowed access to the national grid on a non-discriminatory basis". Secondly, the legislation enables a "market platform" through which electricity can be bought and sold by multiple participants. Describing the legislation as a "democratisation" of the sector, Ramokgopa also forecast that the new framework would, over time, help reduce prices through competition and innovation, improve reliability by boosting investment in supply, and introduce consumer choice.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Electricity Minister Kgosientsho Ramokgopa reports that Eskom's eight "lender groups" have given their consent to the establishment of the National Transmission Company South Africa (NTCSA) as a separate subsidiary under Eskom Holdings. Bondholder consent was one of several key approvals required ahead of the operationalisation of the NTCSA, officially scheduled for April 1, alongside the appointment of an independent board and licensing approvals from the regulator. Ramokgopa did not name the lender groups during a briefing on March 25, saying only that the eighth and final letter of consent was provided "last week". In February, the National Energy Regulator of South Africa (Nersa) officially published the three licences required for the operationalisation of the NTCSA, having approved their transfer from Eskom in 2023. And, Public Enterprises Minister Pravin Gordhan appointed the inaugural NTCSA board on January 9. In March, South Africa's Energy Regulator also consented to the transfer of powers and duties relating to power purchase agreements with independent power producers from Eskom to the NTCSA. Nersa said in a statement that NTCSA's trading licence would be amended to reflect the change. These regulatory decisions align with an application made to Nersa by Eskom, which is unbundling its generation, transmission, and distribution businesses in line with the 'Roadmap for Eskom in a reformed electricity supply industry' published by the Department of Public Enterprises in 2019. While being advanced under the existing Electricity Regulation Act (ERA), they also accord with some of the architectural changes outlined in amendments to the ERA, which were approved by the National Assembly on March 14. The legislation will now serve before the National Council of Provinces, whose approval is also required before it can be signed into law by the President. While opposition lawmakers have raised some concerns with the amendments, particularly with regard to the discretionary powers extended to the Energy Minister and with the future role envisaged for Nersa in setting prices and tariffs, Ramokgopa argued that the legislation would "remake the South Africa energy landscape". "One of the primary interventions [of the legislation] is to make it easier to produce and sell electricity in South Africa. "In order to do this, it established what the Bill refers to as a Transmission System Operator (TSO), which is managed by a newly formed entity that is wholly owned by Eskom and by extension wholly owned by the South African public, the NTCSA," Ramokgopa explained. He said the TSO would ensure that all electricity producers were treated "equally and fairly and be allowed access to the national grid on a non-discriminatory basis". Secondly, the legislation enables a "market platform" through which electricity can be bought and sold by multiple participants. Describing the legislation as a "democratisation" of the sector, Ramokgopa also forecast that the new framework would, over time, help reduce prices through competition and innovation, improve reliability by boosting investment in supply, and introduce consumer choice.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Electricity Minister Kgosientsho Ramokgopa and the Independent Power Producer Office (IPPO) have both confirmed that the curtailment framework outlined by Eskom in January is immediately available to wind IPPs preparing to bid under Bid Window Seven (BW7) of South Africa's public renewables procurement programme, launched in December. Published as an addendum to the latest Generation Connection Capacity Assessment (GCCA 2025), the framework states that 3 470 MW of additional grid capacity to connect wind generation will be made available by accepting a "reasonable share of no more than 10% of curtailment". Curtailment is defined in the document as the controlled reduction of the output of renewable energy plants as a system operator response to transmission capacity constraints. It adds that 2 680 MW of this capacity is available in the Western Cape and 790 MW in the Eastern Cape - provinces that together with the Northern Cape were shown in the original GCCA as having no remaining grid capacity to connect new generation. The absence of a curtailment framework during BW6 meant that none of the wind projects that had been vying for a 3 200 MW allocation advanced to preferred-bidder status. In his latest briefing on the implementation of the Energy Action Plan, Ramokgopa said that Eskom's January statement indicated that the capacity was "immediately available". Likewise, the IPPO told Engineering News that, while it was not able to comment in detail given that a procurement process was under way, the release of the GCCA 2025 addendum had unlocked additional grid capacity for wind projects. "This enables the department to award wind projects within the Eastern and Western Cape in alignment with the provisions of the request for proposals." The confirmation is also in line with a statement made following the most recent meeting between President Cyril Ramaphosa and his Cabinet members with senior business leaders, in which it was stated that Eskom and the National Energy Regulator of South Africa should ensure that grid capacity is available for the full allocation outlined in BW7. Government is seeking to procure 3 200 MW of wind and 1 800 MW of solar photovoltaic capacity through the round. Meanwhile, Ramokgopa reported that he would meet with the National Transmission Company South Africa (NTCSA) board on March 12 to discuss options for private sector participation in the roll-out of grid capacity in advance of the schedule outlined in the current Transmission Development Plan (TDP). At the meeting, the work that had been done regarding a possible role for the private financing, construction and operation of additional grid infrastructure would be canvassed with the NTCSA, which had overall responsibility for grid and system operations. Ramokgopa said that given Eskom's balance sheet pressures and the "ticket size" of the projects, external financing could help play a role in accelerating the TDP, particularly in the Northern Cape, Eastern Cape, and Western Cape. Eskom has indicated that it has funding available for the first three years of the TDP, during which only 1 675 km of line is planned for construction, leaving the lion's share of 14 218 km proposed for construction by 2032 to be implemented in the latter five years. He said the Ministry would share its proposals with the NTCSA having studied various options from peer countries, which had been tailored to South Africa's conditions. The idea was then for the NTCSA to champion the concept of private financing in a way that met its needs and the needs of the system. "I'm confident there will be symmetry in relation to the need for us to access that private financing, but it's now about how you do it."

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Electricity Minister Kgosientsho Ramokgopa and the Independent Power Producer Office (IPPO) have both confirmed that the curtailment framework outlined by Eskom in January is immediately available to wind IPPs preparing to bid under Bid Window Seven (BW7) of South Africa's public renewables procurement programme, launched in December. Published as an addendum to the latest Generation Connection Capacity Assessment (GCCA 2025), the framework states that 3 470 MW of additional grid capacity to connect wind generation will be made available by accepting a "reasonable share of no more than 10% of curtailment". Curtailment is defined in the document as the controlled reduction of the output of renewable energy plants as a system operator response to transmission capacity constraints. It adds that 2 680 MW of this capacity is available in the Western Cape and 790 MW in the Eastern Cape - provinces that together with the Northern Cape were shown in the original GCCA as having no remaining grid capacity to connect new generation. The absence of a curtailment framework during BW6 meant that none of the wind projects that had been vying for a 3 200 MW allocation advanced to preferred-bidder status. In his latest briefing on the implementation of the Energy Action Plan, Ramokgopa said that Eskom's January statement indicated that the capacity was "immediately available". Likewise, the IPPO told Engineering News that, while it was not able to comment in detail given that a procurement process was under way, the release of the GCCA 2025 addendum had unlocked additional grid capacity for wind projects. "This enables the department to award wind projects within the Eastern and Western Cape in alignment with the provisions of the request for proposals." The confirmation is also in line with a statement made following the most recent meeting between President Cyril Ramaphosa and his Cabinet members with senior business leaders, in which it was stated that Eskom and the National Energy Regulator of South Africa should ensure that grid capacity is available for the full allocation outlined in BW7. Government is seeking to procure 3 200 MW of wind and 1 800 MW of solar photovoltaic capacity through the round. Meanwhile, Ramokgopa reported that he would meet with the National Transmission Company South Africa (NTCSA) board on March 12 to discuss options for private sector participation in the roll-out of grid capacity in advance of the schedule outlined in the current Transmission Development Plan (TDP). At the meeting, the work that had been done regarding a possible role for the private financing, construction and operation of additional grid infrastructure would be canvassed with the NTCSA, which had overall responsibility for grid and system operations. Ramokgopa said that given Eskom's balance sheet pressures and the "ticket size" of the projects, external financing could help play a role in accelerating the TDP, particularly in the Northern Cape, Eastern Cape, and Western Cape. Eskom has indicated that it has funding available for the first three years of the TDP, during which only 1 675 km of line is planned for construction, leaving the lion's share of 14 218 km proposed for construction by 2032 to be implemented in the latter five years. He said the Ministry would share its proposals with the NTCSA having studied various options from peer countries, which had been tailored to South Africa's conditions. The idea was then for the NTCSA to champion the concept of private financing in a way that met its needs and the needs of the system. "I'm confident there will be symmetry in relation to the need for us to access that private financing, but it's now about how you do it."

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Government and business have set a goal of increasing South Africa's electricity generation capacity by 10.5 GW by the end of 2025 as part of ongoing collaborative efforts to tackle growth-sapping power disruptions and reduce the intensity and almost daily frequency of loadshedding by year-end. In a briefing held following the latest meeting between President Cyril Ramaphosa's Cabinet and those senior business leaders who have committed to supporting government in overcoming its loadshedding, logistics and crime crises, the Presidency's Rudi Dicks said the capacity could arise from multiple sources, including by recovering capacity from Eskom's unreliable coal fleet. The lion's share, however, would arise from ongoing solar rooftop investment, public procurement and utility-scale projects being pursued by various companies on the back of a reform allowing distributed plants of any size to proceed without a licence, even when using the grid to wheel electricity. Eskom's Generation Recovery Plan would focus on operational improvements at Matla, Majuba, Kendal and Tutuka, as well as within Rotek, and would seek to build on recent partnership successes with business at Kusile, Kriel and Matla. However, Dicks said it would also hinge on securing "many more skilled resources" over and above the support that had been provided so far by the 75 individuals who had already been assigned to assist on a pro bono basis. While some services would continue to be delivered on that basis, work was also under way by Eskom, business and the National Treasury on a proposed mutual cooperation agreement (MCA) to enable Eskom to "procure skilled experts, strategic parts and ringfenced projects". Business for South Africa's Martin Kingston noted that such an agreement was already in place between Transnet and the Richards Bay Coal Terminal, which he described as a "cost-recovery mechanism". Dicks said the MCA sought to formalise the partnership between Eskom and the private sector, while stressing that it would be seeking a deal that not only complied with legislation and supply-chain management regulations but still allowed for some "pro bono work to continue". "Pro-bono support has already been provided but this does not cover technical engineering expertise to address both the main and auxiliary plant problems," Dicks added. Kingston, meanwhile, offered an assurance that the MCA with Eskom would be transparent and structured to either remove or manage any potential conflicts of interest. The proposed MCA follows the recent release of a report commissioned by the National Treasury in 2023 into the state of the Eskom coal power stations, in which the Vgbe-led report authors described the State-owned utility's governance structure and processes as "dysfunctional". They made several recommendations for improving the management structure, including the establishment of an interim team of independent experts, outside of Eskom and reporting to the National Treasury, whose members would be situated at the stations to follow up key risk areas and intervene if required. Dicks said the Vgbe report had confirmed the National Energy Crisis Committee's (Necom's) own analysis of the challenges, as well as what the required focus to ensure improved plant performance was. GRID FOR UPCOMING BID WINDOW? Outside of Eskom, business and government also agreed that actions should be taken to support ongoing private investment at a rooftop and utility scale, as well as ensure the success of the public procurement bid windows launched for renewables, gas-to-power and battery storage. Together, these private generation investments were expected to provide the majority of the additional 10.5 GW of capacity to be added or recovered by the end of 2025. It was also agreed that Eskom and the National Energy Regulator of...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Government and business have set a goal of increasing South Africa's electricity generation capacity by 10.5 GW by the end of 2025 as part of ongoing collaborative efforts to tackle growth-sapping power disruptions and reduce the intensity and almost daily frequency of loadshedding by year-end. In a briefing held following the latest meeting between President Cyril Ramaphosa's Cabinet and those senior business leaders who have committed to supporting government in overcoming its loadshedding, logistics and crime crises, the Presidency's Rudi Dicks said the capacity could arise from multiple sources, including by recovering capacity from Eskom's unreliable coal fleet. The lion's share, however, would arise from ongoing solar rooftop investment, public procurement and utility-scale projects being pursued by various companies on the back of a reform allowing distributed plants of any size to proceed without a licence, even when using the grid to wheel electricity. Eskom's Generation Recovery Plan would focus on operational improvements at Matla, Majuba, Kendal and Tutuka, as well as within Rotek, and would seek to build on recent partnership successes with business at Kusile, Kriel and Matla. However, Dicks said it would also hinge on securing "many more skilled resources" over and above the support that had been provided so far by the 75 individuals who had already been assigned to assist on a pro bono basis. While some services would continue to be delivered on that basis, work was also under way by Eskom, business and the National Treasury on a proposed mutual cooperation agreement (MCA) to enable Eskom to "procure skilled experts, strategic parts and ringfenced projects". Business for South Africa's Martin Kingston noted that such an agreement was already in place between Transnet and the Richards Bay Coal Terminal, which he described as a "cost-recovery mechanism". Dicks said the MCA sought to formalise the partnership between Eskom and the private sector, while stressing that it would be seeking a deal that not only complied with legislation and supply-chain management regulations but still allowed for some "pro bono work to continue". "Pro-bono support has already been provided but this does not cover technical engineering expertise to address both the main and auxiliary plant problems," Dicks added. Kingston, meanwhile, offered an assurance that the MCA with Eskom would be transparent and structured to either remove or manage any potential conflicts of interest. The proposed MCA follows the recent release of a report commissioned by the National Treasury in 2023 into the state of the Eskom coal power stations, in which the Vgbe-led report authors described the State-owned utility's governance structure and processes as "dysfunctional". They made several recommendations for improving the management structure, including the establishment of an interim team of independent experts, outside of Eskom and reporting to the National Treasury, whose members would be situated at the stations to follow up key risk areas and intervene if required. Dicks said the Vgbe report had confirmed the National Energy Crisis Committee's (Necom's) own analysis of the challenges, as well as what the required focus to ensure improved plant performance was. GRID FOR UPCOMING BID WINDOW? Outside of Eskom, business and government also agreed that actions should be taken to support ongoing private investment at a rooftop and utility scale, as well as ensure the success of the public procurement bid windows launched for renewables, gas-to-power and battery storage. Together, these private generation investments were expected to provide the majority of the additional 10.5 GW of capacity to be added or recovered by the end of 2025. It was also agreed that Eskom and the National Energy Regulator of...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. South African imports of solar panels, lithium-ion batteries and inverters climbed to a record $3.8-billion last year, or about R70-billion, while imports of wind turbines began to recover following a two-year lull, analysis compiled by Trade & Industrial Policy Strategies senior economist Gaylor Montmasson-Clair shows. Imports in 2023 were double the $1.7-billion of 2022 and lifted the overall value of the three energy components imported over the ten years from 2014 to 2023 to above $10-billion. The analysis points to an extremely strong rise in solar-panel imports last year, which was also the country's worst-ever year for loadshedding. He describes panel imports of $947-million, or R17.5-billion, as "mind boggling", while noting that imports peaked in the second quarter at $450-million. Over the full year, about 5 GW worth of panels were imported, up from 1.3 GW in 2022. Montmasson-Clair, who is also facilitator of the South African Renewable Energy Masterplan (SAREM), a multistakeholder initiative aimed at stimulating industrialisation around South Africa's renewables and battery storage investments, believes South Africa should be considering its localisation options more seriously while recognising that some of the demand may have been stimulated by the National Treasury's tax incentive. He reports that SAREM is considering various localisation drivers that boil down to ensuring that public demand from the large-scale renewables procurement programme and the roll-out of solar at public facilities play an anchoring role by supporting localisation. "Any public support should come with a degree of localisation," he argues. For manufacturers to be competitive across markets, including the private market, Montmasson-Clair says various supply-side support measures will be required, including investment incentives and possibly even carefully calibrated tariffs on a limited set of products. There is also a need to sort out the broader ecosystem, particularly through skills development, improved testing and certification facilities and a mandatory quality standard to fight sub-standard imports. The value of lithium-ion battery imports, meanwhile, reached $1.75-billion last year, more than double the $730-million recorded in the prior year. "At an average of $139/kWh, that's about 12.5 GWh, or about 3.8 GW to 5.0 GW of capacity." As with solar, the demand was underpinned primarily by loadshedding, but it also coincided with a strong rise in the registration of distributed plants with the National Energy Regulator of South Africa. Montmasson-Clair says local manufacturing, based on imported cells, is booming and should be actively supported to grow domestic production and to phase out the import of battery packs. "Once the market has consolidated or stabilised, we will have a better idea whether cell manufacturing is viable for this market segment." Meanwhile, South Africa's wind industry started importing again in 2023, following two years of inactivity, with demand underpinned by projects procured under the much-delayed Risk Mitigation Independent Power Producer Procurement Programme, alongside wind farms being built on the back of corporate power purchase agreements. Wind turbines with a combined value of $200-million were imported, mostly in the fourth quarter of last year. Montmasson-Clair argues that industrial development in the wind sector requires constant demand, which has been absent even after the resumption of public procurement in 2020 and dampened further by the fact that none of the wind projects that bid for a 3 200 MW public-auction allocation progressed to preferred bidder status. This, after Eskom claimed that there was no remaining grid-connection capacity in the Eastern, Northern and Western Cape provinces, where the country's best wind resources are ...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. South African imports of solar panels, lithium-ion batteries and inverters climbed to a record $3.8-billion last year, or about R70-billion, while imports of wind turbines began to recover following a two-year lull, analysis compiled by Trade & Industrial Policy Strategies senior economist Gaylor Montmasson-Clair shows. Imports in 2023 were double the $1.7-billion of 2022 and lifted the overall value of the three energy components imported over the ten years from 2014 to 2023 to above $10-billion. The analysis points to an extremely strong rise in solar-panel imports last year, which was also the country's worst-ever year for loadshedding. He describes panel imports of $947-million, or R17.5-billion, as "mind boggling", while noting that imports peaked in the second quarter at $450-million. Over the full year, about 5 GW worth of panels were imported, up from 1.3 GW in 2022. Montmasson-Clair, who is also facilitator of the South African Renewable Energy Masterplan (SAREM), a multistakeholder initiative aimed at stimulating industrialisation around South Africa's renewables and battery storage investments, believes South Africa should be considering its localisation options more seriously while recognising that some of the demand may have been stimulated by the National Treasury's tax incentive. He reports that SAREM is considering various localisation drivers that boil down to ensuring that public demand from the large-scale renewables procurement programme and the roll-out of solar at public facilities play an anchoring role by supporting localisation. "Any public support should come with a degree of localisation," he argues. For manufacturers to be competitive across markets, including the private market, Montmasson-Clair says various supply-side support measures will be required, including investment incentives and possibly even carefully calibrated tariffs on a limited set of products. There is also a need to sort out the broader ecosystem, particularly through skills development, improved testing and certification facilities and a mandatory quality standard to fight sub-standard imports. The value of lithium-ion battery imports, meanwhile, reached $1.75-billion last year, more than double the $730-million recorded in the prior year. "At an average of $139/kWh, that's about 12.5 GWh, or about 3.8 GW to 5.0 GW of capacity." As with solar, the demand was underpinned primarily by loadshedding, but it also coincided with a strong rise in the registration of distributed plants with the National Energy Regulator of South Africa. Montmasson-Clair says local manufacturing, based on imported cells, is booming and should be actively supported to grow domestic production and to phase out the import of battery packs. "Once the market has consolidated or stabilised, we will have a better idea whether cell manufacturing is viable for this market segment." Meanwhile, South Africa's wind industry started importing again in 2023, following two years of inactivity, with demand underpinned by projects procured under the much-delayed Risk Mitigation Independent Power Producer Procurement Programme, alongside wind farms being built on the back of corporate power purchase agreements. Wind turbines with a combined value of $200-million were imported, mostly in the fourth quarter of last year. Montmasson-Clair argues that industrial development in the wind sector requires constant demand, which has been absent even after the resumption of public procurement in 2020 and dampened further by the fact that none of the wind projects that bid for a 3 200 MW public-auction allocation progressed to preferred bidder status. This, after Eskom claimed that there was no remaining grid-connection capacity in the Eastern, Northern and Western Cape provinces, where the country's best wind resources are ...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The National Energy Regulator of South Africa (Nersa) reports that a further 124 generation facilities were registered during the third quarter of its financial year from October to December, increasing the number of facilities registered since 2018 to 1 087. The newly registered generators have a combined capacity of 605 MW and a collective investment value of R7.8-billion. Most of the projects, 122 in total, are solar photovoltaic (PV) plants, with a combined capacity of 604 MW, with two projects with a combined capacity of 1 MW being solar PV generators combined with battery energy storage systems. The Western Cape had the highest number of registrations during the period, 33 in total, with a combine capacity of 16 MW and an investment value of R222-million, but the North West attracted the biggest plants with the highest investment value. The eight projects registered in the North West have a combined capacity of 372 MW and a combined investment value of R3.54-billion. The Limpopo and Mpumalanga provinces also attracted large projects, with the 11 generators in Limpopo having a combined capacity of 83 MW, while attracting R1.82-billion in investment and Mpumalanga's five projects involving 77 MW and R1.3-billion in investment. There were 23 registrations in Gauteng (16 MW and R222-million), 14 in KwaZulu-Natal (10 MW and R140-million), 14 in the Eastern Cape (18 MW and R284-million), 11 in the Free State (12 MW and R233-million) and five in the Northern Cape (1 MW and R13-million). Nersa calculated the average investment cost for the third quarter to be R12 817/kW. It also reported that 86 generation facilities, with a combined capacity of 568 MW and an investment value of R7.2-billion, are connected to the Eskom network while 38 generation facilities are connected to the municipal distribution network and generate a total of 37 MW, with an investment value of R500-million. Trade and Industrial Policy Strategies' Gaylor Montmasson-Clair, who tracks registrations over the calendar year, reported in January that a total of 4 530 MW of renewables generators had been registered with Nersa in 2023, which he said was almost three times that registered in 2022, and more than 50 times the registration recorded in 2021. Montmasson-Clair attributed the rise to government's decision to remove licensing requirement on distributed projects.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The National Energy Regulator of South Africa (Nersa) reports that a further 124 generation facilities were registered during the third quarter of its financial year from October to December, increasing the number of facilities registered since 2018 to 1 087. The newly registered generators have a combined capacity of 605 MW and a collective investment value of R7.8-billion. Most of the projects, 122 in total, are solar photovoltaic (PV) plants, with a combined capacity of 604 MW, with two projects with a combined capacity of 1 MW being solar PV generators combined with battery energy storage systems. The Western Cape had the highest number of registrations during the period, 33 in total, with a combine capacity of 16 MW and an investment value of R222-million, but the North West attracted the biggest plants with the highest investment value. The eight projects registered in the North West have a combined capacity of 372 MW and a combined investment value of R3.54-billion. The Limpopo and Mpumalanga provinces also attracted large projects, with the 11 generators in Limpopo having a combined capacity of 83 MW, while attracting R1.82-billion in investment and Mpumalanga's five projects involving 77 MW and R1.3-billion in investment. There were 23 registrations in Gauteng (16 MW and R222-million), 14 in KwaZulu-Natal (10 MW and R140-million), 14 in the Eastern Cape (18 MW and R284-million), 11 in the Free State (12 MW and R233-million) and five in the Northern Cape (1 MW and R13-million). Nersa calculated the average investment cost for the third quarter to be R12 817/kW. It also reported that 86 generation facilities, with a combined capacity of 568 MW and an investment value of R7.2-billion, are connected to the Eskom network while 38 generation facilities are connected to the municipal distribution network and generate a total of 37 MW, with an investment value of R500-million. Trade and Industrial Policy Strategies' Gaylor Montmasson-Clair, who tracks registrations over the calendar year, reported in January that a total of 4 530 MW of renewables generators had been registered with Nersa in 2023, which he said was almost three times that registered in 2022, and more than 50 times the registration recorded in 2021. Montmasson-Clair attributed the rise to government's decision to remove licensing requirement on distributed projects.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Eskom says the Electricity Pricing Determination Rules (EPDR) approved by the National Energy Regulator of South Africa (Nersa) in December cannot be implemented for the 2025/26 financial year as proposed by the regulator, owing to the time it takes to prepare, adjudicate and approve such applications. In addition, the utility has questioned whether the rules are implementable at all given how far they deviate from established standards used globally for determining electricity tariffs. Following a period of public consultation, Nersa approved the EPDR late last year. These tariffs are applicable for all licensees providing electricity to customers. The prevailing multiyear price determination (MYPD) framework and methodology has been used to determine Eskom's yearly allowable revenue since 2006. That allowable revenue is then divided by approved sales volumes for the period to determine average tariffs. The detailed Eskom tariffs to be charged in any given year are then determined by the Eskom Retail Tariff and Structural Adjustment methodology. For municipalities, Nersa is required to base tariffs on the cost of supply framework. Nersa says the revision to the way tariffs are determined has been informed by changes under way in the electricity supply industry, including the emergence of new participants in generation and trading and the unbundling of Eskom. Tariffs, it argues, will no longer be aggregated and will instead be determined for each licensed activity along the value chain - including generation, transmission, distribution and trading - based on the fixed costs, variable costs and customer-specific costs allowed by the regulator. Nersa has already acknowledged the potential difficulties in transitioning from the MYPD to the EPDR and has outlined two possible routes, described as Plan A and Plan B, for introducing the new framework. It has also noted that the MYPD was introduced even though the methodology was not fully finalised in 2006. However, Eskom GM for regulation Hasha Tlhotlhalemaje does not believe the EPDR is implementable at all and argues that neither Plan A nor Plan B can be implemented in 2025/26 as proposed, as neither plan fully accounts for the time it takes Eskom to prepare a submission and meet the relevant legislative requirements. These timing requirements have been reinforced in recent court judgments and orders, which have stipulated that only a methodology that is in place 18 months ahead of a new tariff adjustment can be applicable. That being the case, the new rules and associated methodology would have to have been approved by September 2023 for it to be implemented for the 2025/26 tariff period, which starts on April 1 next year. Furthermore, Tlhotlhalemaje argues that the EPDR approved by Nersa in December is not a complete set of rules, but rather an approach to determining tariffs based on individual customer profiles and not the system profile. "This is not possible and has not been implemented anywhere in the world and we think it will result in complete chaos," she says. While asserting that it will take Eskom at least two years to adjust to any new approach, she argues that it could take even longer for other industry participants, such as independent power producers (IPPs) and traders, given that they have had little experience of Nersa's tariff processes. "Before this can be implemented - and assuming it is implementable - a complete understanding of the process and requirements is needed. "This is not included in the rules at the moment." She notes, too, that because all licensees will be expected to provide Nersa with information before tariffs can be determined, practical tools, such as clear forms and formulas, are also required and such documentation has not yet been published or consulted. "If Nersa wishes to chan...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. Eskom says the Electricity Pricing Determination Rules (EPDR) approved by the National Energy Regulator of South Africa (Nersa) in December cannot be implemented for the 2025/26 financial year as proposed by the regulator, owing to the time it takes to prepare, adjudicate and approve such applications. In addition, the utility has questioned whether the rules are implementable at all given how far they deviate from established standards used globally for determining electricity tariffs. Following a period of public consultation, Nersa approved the EPDR late last year. These tariffs are applicable for all licensees providing electricity to customers. The prevailing multiyear price determination (MYPD) framework and methodology has been used to determine Eskom's yearly allowable revenue since 2006. That allowable revenue is then divided by approved sales volumes for the period to determine average tariffs. The detailed Eskom tariffs to be charged in any given year are then determined by the Eskom Retail Tariff and Structural Adjustment methodology. For municipalities, Nersa is required to base tariffs on the cost of supply framework. Nersa says the revision to the way tariffs are determined has been informed by changes under way in the electricity supply industry, including the emergence of new participants in generation and trading and the unbundling of Eskom. Tariffs, it argues, will no longer be aggregated and will instead be determined for each licensed activity along the value chain - including generation, transmission, distribution and trading - based on the fixed costs, variable costs and customer-specific costs allowed by the regulator. Nersa has already acknowledged the potential difficulties in transitioning from the MYPD to the EPDR and has outlined two possible routes, described as Plan A and Plan B, for introducing the new framework. It has also noted that the MYPD was introduced even though the methodology was not fully finalised in 2006. However, Eskom GM for regulation Hasha Tlhotlhalemaje does not believe the EPDR is implementable at all and argues that neither Plan A nor Plan B can be implemented in 2025/26 as proposed, as neither plan fully accounts for the time it takes Eskom to prepare a submission and meet the relevant legislative requirements. These timing requirements have been reinforced in recent court judgments and orders, which have stipulated that only a methodology that is in place 18 months ahead of a new tariff adjustment can be applicable. That being the case, the new rules and associated methodology would have to have been approved by September 2023 for it to be implemented for the 2025/26 tariff period, which starts on April 1 next year. Furthermore, Tlhotlhalemaje argues that the EPDR approved by Nersa in December is not a complete set of rules, but rather an approach to determining tariffs based on individual customer profiles and not the system profile. "This is not possible and has not been implemented anywhere in the world and we think it will result in complete chaos," she says. While asserting that it will take Eskom at least two years to adjust to any new approach, she argues that it could take even longer for other industry participants, such as independent power producers (IPPs) and traders, given that they have had little experience of Nersa's tariff processes. "Before this can be implemented - and assuming it is implementable - a complete understanding of the process and requirements is needed. "This is not included in the rules at the moment." She notes, too, that because all licensees will be expected to provide Nersa with information before tariffs can be determined, practical tools, such as clear forms and formulas, are also required and such documentation has not yet been published or consulted. "If Nersa wishes to chan...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The National Energy Regulator of South Africa (Nersa) has approved far-reaching changes to the way electricity tariffs will be set in future, but it could still take some time before the rules are fully implemented. Nersa approved the new Electricity Price Determination Rules (EPDR) on December 14, following a consultation phase, which was initiated in 2021 to find an alternative to the current multiyear price determination (MYPD) framework that has been used to set Eskom tariffs since 2006. Full-time regulatory member for electricity Nhlanhla Gumede tells Engineering News that the decision to revamp the approach to setting tariffs was informed by changes under way in the electricity supply industry, including the emergence of new participants in generation and trading and the unbundling of Eskom. In addition, the regulator had grown increasingly concerned about the steep rise in tariffs over the past number of years that, alongside a dismal industry performance, had undermined credibility and sent poor price signals. "The objective was to develop interventions to make the pricing framework more fit-for-purpose in an increasingly disaggregated industry and to drive efficiencies in both the use and production of electricity for improved price stability," Gumede explains. The move to a competitive industry, he argues, also requires a tool that focuses on the industry as a whole and not only a single licensee. Under the EPDR, tariffs will no longer be aggregated and are instead determined for each licensed activity along the value chain - including generation, transmission, distribution and trading - based on the fixed costs, variable costs and customer-specific costs allowed by the regulator. Nersa argues that such activity-based costing (ABC) should be no more data-intensive than the current methodologies, as licensees collect costing and financial data on an ongoing basis. ABC, it adds, simply requires the licensees to package the same data with a standardised set of regulatory accounts, before the allowable revenue calculations are undertaken. The proposed outcome is what Gumede describes as being "unbundled and cost reflective tariffs". Nersa is currently aiming to implement the EPDR from the 2025/26 financial year but acknowledges that transitioning from the MYPD poses challenges and timing will depend on the readiness of licensees and other effected stakeholders. Implementation also requires the finalisation of the methodology to be used by licensees to prepare a tariff submission, and no timeline has as yet been set for the publication of such a methodology. In approving the EPDR, Nersa outlined both a Plan A and a Plan B for implementation, with Plan B allowing for the use of the MYPD methodology, with certain conditions. Eskom has stated previously that it takes two years to prepare a revenue application under the MYPD and has, thus, already started preparing its submission for the 2025/26 financial year under the existing methodology. In addition, in July 2022 the High Court confirmed that any revenue application needed to be made in accordance with an existing methodology, which in the case of the EPDR still must be finalised. Therefore, Eskom is likely to argue that it is not practical to implement the EPDR in 2025, given that its submission would have to be made this year to allow Nersa time to conduct the public consultations and hearings required for the approval of municipal tariffs by March 15, 2025, as stipulated by the Finance Minister. Nevertheless, Gumede indicates that the regulator is eager to transition to the EPDR, while highlighting that the EPDR implementation plan "provides for a period of support to licensees and affected stakeholders to transition to the new pricing rules". He notes, too, that Eskom's September 2005 application for revenue f...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The National Energy Regulator of South Africa (Nersa) has approved far-reaching changes to the way electricity tariffs will be set in future, but it could still take some time before the rules are fully implemented. Nersa approved the new Electricity Price Determination Rules (EPDR) on December 14, following a consultation phase, which was initiated in 2021 to find an alternative to the current multiyear price determination (MYPD) framework that has been used to set Eskom tariffs since 2006. Full-time regulatory member for electricity Nhlanhla Gumede tells Engineering News that the decision to revamp the approach to setting tariffs was informed by changes under way in the electricity supply industry, including the emergence of new participants in generation and trading and the unbundling of Eskom. In addition, the regulator had grown increasingly concerned about the steep rise in tariffs over the past number of years that, alongside a dismal industry performance, had undermined credibility and sent poor price signals. "The objective was to develop interventions to make the pricing framework more fit-for-purpose in an increasingly disaggregated industry and to drive efficiencies in both the use and production of electricity for improved price stability," Gumede explains. The move to a competitive industry, he argues, also requires a tool that focuses on the industry as a whole and not only a single licensee. Under the EPDR, tariffs will no longer be aggregated and are instead determined for each licensed activity along the value chain - including generation, transmission, distribution and trading - based on the fixed costs, variable costs and customer-specific costs allowed by the regulator. Nersa argues that such activity-based costing (ABC) should be no more data-intensive than the current methodologies, as licensees collect costing and financial data on an ongoing basis. ABC, it adds, simply requires the licensees to package the same data with a standardised set of regulatory accounts, before the allowable revenue calculations are undertaken. The proposed outcome is what Gumede describes as being "unbundled and cost reflective tariffs". Nersa is currently aiming to implement the EPDR from the 2025/26 financial year but acknowledges that transitioning from the MYPD poses challenges and timing will depend on the readiness of licensees and other effected stakeholders. Implementation also requires the finalisation of the methodology to be used by licensees to prepare a tariff submission, and no timeline has as yet been set for the publication of such a methodology. In approving the EPDR, Nersa outlined both a Plan A and a Plan B for implementation, with Plan B allowing for the use of the MYPD methodology, with certain conditions. Eskom has stated previously that it takes two years to prepare a revenue application under the MYPD and has, thus, already started preparing its submission for the 2025/26 financial year under the existing methodology. In addition, in July 2022 the High Court confirmed that any revenue application needed to be made in accordance with an existing methodology, which in the case of the EPDR still must be finalised. Therefore, Eskom is likely to argue that it is not practical to implement the EPDR in 2025, given that its submission would have to be made this year to allow Nersa time to conduct the public consultations and hearings required for the approval of municipal tariffs by March 15, 2025, as stipulated by the Finance Minister. Nevertheless, Gumede indicates that the regulator is eager to transition to the EPDR, while highlighting that the EPDR implementation plan "provides for a period of support to licensees and affected stakeholders to transition to the new pricing rules". He notes, too, that Eskom's September 2005 application for revenue f...

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The National Energy Regulator of South Africa (Nersa) has officially published on its website the three licences required for the operationalisation of the National Transmission Company South Africa (NTCSA), having approved their transfer from Eskom to the NTCSA last year. The NTCSA is in the process of being established as an independent subsidiary of Eskom Holdings as part of a far-reaching restructuring process initiated in 2019 to unbundle the vertically integrated utility into three independent businesses of transmission, distribution and generation. While the licensing has been implemented under the current Electricity Regulation Act, the transfer is also aligned with amendments currently before lawmakers aimed at facilitating a more competitive market structure. The separation of NTCSA has also been prioritised ahead of that of distribution, whose unbundling is also well advanced, and generation, owing to the importance of having an independent transmission, system and market operator in levelling the playing field between the Eskom generators and those of independent power producers. The NTCSA is expected to begin operating from the start of it new financial year on April 1 and it inaugural board, chaired by Priscillah Mabelane, was appointed on January 9, leaving the securing of bondholder consent as the key remaining condition precedent for operationalisation. On February 1, Nersa published NTCSA's transmission licence, officially issued on July 27, 2023, as well as trading and import and export licences, issued on September 14, 2023. In terms of the transmission licence, the NTCSA has been authorised to operate the transmission facility and to undertake the roles of Transmission Network Service Provider, System Operator, Transmission System Planner, and Grid Code Secretariat. Through the trading and import and export licences, the NTCSA can trade with generators and customers in South Africa and import and export regionally, including through the Southern African Power Pool. The transmission and import and export licences are valid for 25 years from the date of issuance, while the trading licence is valid for five years.

This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation. The National Energy Regulator of South Africa (Nersa) has officially published on its website the three licences required for the operationalisation of the National Transmission Company South Africa (NTCSA), having approved their transfer from Eskom to the NTCSA last year. The NTCSA is in the process of being established as an independent subsidiary of Eskom Holdings as part of a far-reaching restructuring process initiated in 2019 to unbundle the vertically integrated utility into three independent businesses of transmission, distribution and generation. While the licensing has been implemented under the current Electricity Regulation Act, the transfer is also aligned with amendments currently before lawmakers aimed at facilitating a more competitive market structure. The separation of NTCSA has also been prioritised ahead of that of distribution, whose unbundling is also well advanced, and generation, owing to the importance of having an independent transmission, system and market operator in levelling the playing field between the Eskom generators and those of independent power producers. The NTCSA is expected to begin operating from the start of it new financial year on April 1 and it inaugural board, chaired by Priscillah Mabelane, was appointed on January 9, leaving the securing of bondholder consent as the key remaining condition precedent for operationalisation. On February 1, Nersa published NTCSA's transmission licence, officially issued on July 27, 2023, as well as trading and import and export licences, issued on September 14, 2023. In terms of the transmission licence, the NTCSA has been authorised to operate the transmission facility and to undertake the roles of Transmission Network Service Provider, System Operator, Transmission System Planner, and Grid Code Secretariat. Through the trading and import and export licences, the NTCSA can trade with generators and customers in South Africa and import and export regionally, including through the Southern African Power Pool. The transmission and import and export licences are valid for 25 years from the date of issuance, while the trading licence is valid for five years.

The Gauteng High Court has granted the National Energy Regulator of South Africa (Nersa) an extension, to make the final decision on Eskom's revenue application for 2023/24. South Africans will wait a little longer to know how much extra to pay for electricity. Energy Expert Clyde Mallinson joins Abongile to consider what to make of the delay.See omnystudio.com/listener for privacy information.

A local environmental justice group is urging the National Energy Regulator of South Africa to not give Eskom a tariff increase of 32%.