Ability to sell electricity to multiple customers made explicit in updated 100 MW reform amendment
Mineral Resources and Energy Minister Gwede Mantashe
Photo by Creamer Media Chief Photographer Donna Slater
Mineral Resources and Energy Minister Gwede Mantashe has gazetted an updated version of the amendment to Schedule 2 of the Electricity Regulation Act that he first gazetted on August 12.
The update, which is dated August 19, makes it clear that electricity sales from sub-100 MW projects, which are exempt from licensing with the National Energy Regulator of South Africa (Nersa), can be to “one or more customers”.
The use, in the original amendment, of the term “end-use customer” had been described as ambiguous, as it could be interpreted to restrict new generators, particularly those not associated with a large single consumer, from entering into agreements with multiple off-takers.
It has been argued that a diversification of off-takers will help derisk projects in a way that makes them more attractive to funders and lowers both costs and tariffs.
The revised notice also eliminates the risk that additional regulations could be added by Nersa in the registration process, by removing the clause stating: “The following activities are exempt from the requirement to apply for and hold a licence under the Act, but these activities must comply with the code and any other authorisations and/or agreements as may be required, and must be registered with the regulator.”
The updated version also clarifies the definition of a ‘customer’ to mean a “person who purchases electricity or a service relating to the supply of electricity”.
Previously, the definition defined a customer as “a person or legal entity that has entered into an agreement with a distributor or transmitter for the provision of distribution or transmission services. A legal entity may be an embedded generator, another distributor, and end-use customer, an international customer, a retailer or a reseller”.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
As a reticulator, Egoli Gas provides natural gas to homes and businesses via underground pipes.
VISIT SHOWROOM
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
