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Regulation News

Regional integration key to deploying large-scale renewables production

By: Schalk Burger     28th March 2013 The ability to import or export electricity, depending on the availability of a country’s renewable generation capacity, was key to enabling the deployment of large-scale renewable electricity generation in Africa, said a panel of experts at the Africa Energy Indaba, in Sandton, last month. An... 

Eskom’s industrial and mining customers face 9.6% tariff increase from April

By: Terence Creamer     22nd March 2013 State-owned power utility Eskom has published a breakdown of the impact of the 2013/14 tariff increases for its various customer categories, which indicates that large industrial and mining customers will face increases of 9.6% from April 1. The utility, which sought five yearly increases of 16%... 

New R1bn manganese furnace signals beneficiation support – BHP Billiton 

By: Martin Creamer     6th March 2013 South Africa’s Minerals Minister, Susan Shabangu, on Wednesday opened the largest operating furnace of its kind in the world at Samancor Manganese’s Metalloys smelter in Meyerton, allowing mining giant BHP Billiton to beneficiate close to 30% of the manganese ore it mines locally and demonstrate... 

Questions and warnings on Eskom’s push for standalone investment grade rating

By: Terence Creamer     15th February 2013 “Crying is all right in its own way while it lasts,” CS Lewis once said. “But you have to stop sooner or later, and then you still have to decide what to do.” South Africans have done much crying over the past few years as electricity prices surged and even more tears were shed during the recent... 

Japan now unlikely to phase out nuclear power 

By: Keith Campbell     11th February 2013 International Atomic Energy Agency (IAEA) director-general Yukiya Amano is of the opinion that the new Japanese government of Shinzo Abe (elected by a landslide vote in December) will not phase out the country’s use of nuclear power. Following the accident at the Fukushima Daiichi nuclear power... 

2013 Indaba attracts greater interest, expects 20% growth

By: Samantha Herbst     8th February 2013 Africa Energy Indaba (AEI) organiser Siyenza hopes to further its objective of positioning Africa as the continent of energy opportunity by delivering a comprehensive event for the fifth consecutive year. Siyenza MD Liz Hart tells Engineering News that enquiry and interest levels have grown... 

Smart metering to change electricity distribution forever, says engineer

By: Gia Costella     8th February 2013 Smart metering (SM) systems will do for electricity distribution what cellphones have done for communication – they will significantly change the way we buy, sell and consume electricity, says engineering, management and technical services provider Aurecon electrical engineer Kobus van den Berg.   

Govt to focus on gas and nuclear development in SA – Norton Rose

By: Samantha Herbst     8th February 2013 The draft Mineral and Petroleum Resources Development Act (MPRDA) Amendment Bill, which was published for public comment in December, indicates some far-reaching changes in the future, including the possibility of creating a regulatory environment to enable and facilitate exploration for and... 

‘Heavily geared’ Eskom sees no alternative to tariff rises 

By: Terence Creamer     1st February 2013 State-owned electricity provider Eskom argued on Friday that, in the absence of any immediate prospect for an equity injection, it had reached the limit of its capacity to cost-effectively raise new debt and that it, therefore, had no other option but to seek yearly increases of 16% between 2013... 

Municipalities to be hard hit – Salga 

By: Sapa     30th January 2013 Municipalities will bear the brunt of Eskom's proposed tariff hike, the SA Local Government Association said on Wednesday. "This price hike will drive them to what we call a municipal tipping point... It will drive them to a point where they wouldn't be able to meet the basic needs of the... 

No more govt support in the offing – Eskom 

By: Terence Creamer     30th January 2013 State-owned electricity utility Eskom reaffirmed on Wednesday that it had received no indication in ongoing consultations with government of its willingness to inject further equity into the business, or extend further guarantees to assist Eskom in funding its large-scale capital expenditure... 

Eskom meets with coal suppliers, calls for new supply ‘pact’

By: Terence Creamer     30th January 2013 The head of State-owned power utility Eskom Brian Dames met with the leaders of the group’s four main coal suppliers at the weekend to initiate talks on how the miners could assist it in keeping its coal costs under control, so as to limit future electricity price increases. Coal is the largest... 

Imported skills could be crucial for renewables success

25th January 2013 Renewable-energy programmes will only be possible if South Africa can import the skills necessary to develop these new industries and speedily grant the required permits, says recruitment agency Landelahni Recruitment Group CEO Sandra Burmeister. The government signed contracts in November last... 

Renewables can provide 99.9% power to grid – study

18th January 2013 A well-designed combination of wind power, solar power and storage in batteries and fuel cells would nearly always exceed electricity demands, while keeping costs comparable to today’s electricity expenses, scientists at the University of Delaware (UD) and Delaware Technical Community College... 

Eskom tariff hikes unaffordable – CCCI

By: Sapa     15th January 2013 Eskom's proposed tariff increases are unaffordable and will have a devastating effect on the economy, the National Energy Regulator of SA heard on Tuesday. In a presentation to Nersa's public hearings on Eskom's proposed revenue application multi-year price determination 2013/14 to 2017/18... 

Mittal warns of further closures if power prices continue to surge

By: Terence Creamer     15th January 2013 Steel producer ArcelorMittal South Africa (Mittal) warned on Tuesday that some of its facilities had already closed as a result of the steep electricity price rises between 2007 and 2012, while others could reach a “tipping point” should Eskom’s application for five yearly tariff increases of 16%... 

Eskom’s asset revaluation, returns come under scrutiny as Nersa hearings start 

By: Terence Creamer     15th January 2013 The push back against Eskom’s request for five yearly tariff increases of 16% between 2013 and 2018 began in earnest on Tuesday when the National Energy Regulator of South Africa (Nersa) kicked off its public hearings into the application in Cape Town. In its third multiyear price determination... 

Protests planned for Nersa hearings

By: Sapa     14th January 2013 A union and civil society coalition vowed on Monday to protest against Eskom's proposed 16% electricity increase outside a public hearing in Cape Town this week. National Union of Metalworkers of South Africa (Numsa) spokesman Castro Ngobese said they would picket outside the Cape Town... 

Nersa outlines schedule for what will be highly contested Eskom hearings

By: Terence Creamer     14th December 2012 The National Energy Regulator of South Africa (Nersa) has announced the dates and venues for the upcoming public hearings on Eskom’s application for the third multiyear price determination (MYPD3). The State-owned utility has applied for average yearly price increases of 16% for the five years... 

Measuring and monitoring key to ensuring effective energy management

By: Schalk Burger     14th December 2012 Electricity monitoring should be done to determine the quantity and quality of electricity supplied to a company. This information will give the company the ability to measure its load profile over time, as well as a real-time window into its electricity use and the effectiveness of various... 

Xstrata-Merafe JV shuts furnaces as it joins Eskom buy-back

By: Idéle Esterhuizen     12th December 2012 The Xstrata-Merafe chrome venture would close five of its twenty furnaces at cetain plants for three months next year to participate in State utility Eskom’s electricity buy-back programme. JSE-listed Merafe reported on Wednesday that it estimated a loss in ferrochrome production of 100 000 t... 

Global legal practice sees SA as key to African aspirations 

By: Schalk Burger     30th November 2012 Lawyers worldwide must gain much greater insight into their clients’ industries and businesses to provide the nuanced advice necessary for clients to reduce risks to their businesses and investments in diverse countries, says law firm Baker & McKenzie global chairman Eduardo Leite. This... 

Intelligent prepaid metering improves visibility, facilitates fair billing

23rd November 2012 Smart prepaid meters provide consumers with a greater degree of scientifically verifiable data and enable better monitoring of consumption through electronic communication channels such as Internet and cellphone. Smart meters also overcome problems associated with apportioning bulk account demand... 

Eskom replaces low-pressure SWH rebates with contract model

By: Idéle Esterhuizen     14th November 2012 The rebate scheme for State utility Eskom’s low-pressure rebate solar water heaters (SWH) would be phased out in December and replaced by a contractual procurement model, residential and municipal sector manager Fikile Segole said on Wednesday. Eskom stated last year that a contractual approach... 

Russian-South African nuclear cooperation strengthened

By: Keith Campbell     9th November 2012 A South African delegation led by the Department of Trade and Industry (DTI) has been in Russia on a two day “reconnaissance visit”, Russian nuclear company Rusatom Overseas, part of the giant State-owned Rosatom group, reported recently. The South African delegation included representatives of... 

New book seeks to demystify energy measurement and verification

26th October 2012 Measurement and Verification (M&V) is a critical component in any project where energy savings need to be quantified. 

Eskom asks Nersa to review ‘prudency’ of aluminium contracts  

By: Terence Creamer     22nd October 2012 State-owned electricity utility Eskom will submit an application to the National Energy Regulator of South Africa (Nersa) this week to review the “prudency” and “appropriateness” of its controversial legacy contracts with BHP Billiton’s aluminium smelters, in KwaZulu-Natal. The... 

Eskom seeks yearly increases of 16% to 2018 

By: Terence Creamer     22nd October 2012 State-owned electricity utility Eskom has submitted its third multiyear price determination period (MYPD3) application to the energy regulator, in which it is requesting average yearly tariff increases of 16% for the five-year period from April 1, 2013, to March 31, 2018. The utility indicated... 

SA’s renewable energy advantages outlined

By: Joanne Taylor     19th October 2012 At the International Infrastructure & Invest Convention in Johannesburg last month, South African Photovoltaic Industry Association (Sapvia) board member Christopher Haw explained that a country’s success in renewable-energy projects depended on various aspects. 

Proposed Zambezi hydropower dams pose some risks, expert warns 

12th October 2012 Existing and proposed hydropower dams are not properly evaluated for the risks of natural hydrological variability, which is extremely high in the Zambezi river, not to mention the risks posed by climate change, says US State of Wisconsin Department of Safety and Professional Services hydrologist... 

Broad-based call for grid-access rules certainty

By: Schalk Burger     12th October 2012 State-owned power utility Eskom, regulatory authority National Energy Regulator of South Africa (Nersa) and an independent power analyst called for the finalisation of revisions to laws governing grid access, the utility and independent power producers (IPPs), as this clarity will also boost... 

Concerns raised over proposed Necsa Pelindaba smelter 

By: Megan van Wyngaardt     11th October 2012 The proposed smelter at South African Nuclear Energy Corporation’s (Necsa’s) Pelindaba site is cause for concern, environmental activists and members of the public said at a hearing on Thursday. The public hearing, in Pretoria, was held by the National Nuclear Regulator (NNR) to receive comment... 

SA law firm teams up with international practice to pursue African energy prospects

By: Schalk Burger     5th October 2012 Local black economic-empowered law firm KapdiTwala has boosted its expertise in energy laws through its formal association with global law firm SNR Denton in September and will focus on the energy development opportunities in Africa’s economies, especially in renewable energy and oil and gas,... 

Latest energy efficient building solutions showcased

By: Joanne Taylor     14th September 2012 The Star Interbuild Africa expo, with Glass Expo Africa, EcoAfribuild, Plumbdrain Africa, Frigair, Woodpro Africa and Current Africa showcased the latest energy-efficient building solutions, in line with new building industry regulations, at Nasrec last month. 

Greater collaboration urged as SA moves towards multiparticipant power market

By: Schalk Burger     7th September 2012 Effective collaboration in the energy and electricity sector, between independent power producers and government, is necessary to overcome hurdles in the sector, says legal firm Werksmans Attorneys director Greg Nott. 

Eskom asked to integrate additional new-build options into tariff submission  

By: Terence Creamer     5th September 2012 State-owned electricity utility Eskom, which was asked by government last week to refrain from delivering its tariff application to the regulator to allow for the inclusion of additional scenarios, has requested clarity as to the precise nature of these new considerations so as to enable it to... 

Big users urge hard line on Eskom costs, as utility delays tariff submission 

By: Terence Creamer     31st August 2012 South Africa’s Energy Intensive User Group (EIUG) has urged the National Energy Regulator of South Africa (Nersa) to be more rigorous in its assessment of some of the cost factors informing Eskom’s application for electricity price increases for the five-year period from April 1, 2013, through to... 

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