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Regulation News

Vaccine nationalism may create conditions for increased political turmoil – Zane Dangor

By: Sane Dhlamini     4th February 2021 Special advisor to Minister of International Relations and Cooperation Zane Dangor stated on Thursday that vaccine nationalism is the opposite of the solidarity approach that was spoken of at the outset of the coronavirus pandemic. Dangor was addressing an online discussion on ‘Trade, Patent Law... 

De Ruyter backs call for lifting of licensing cap on distributed generators to 50 MW  

By: Terence Creamer     2nd February 2021 Eskom CEO Andre de Ruyter says the State-owned utility is fully supportive of moves by large customers to develop distributed generation plants to power their operations, as well as growing calls to lift the licensing threshold from 1 MW to 50 MW so as to accelerate these investments. South... 

Eskom CEO Andre de Ruyter
Photo by Creamer Media's Donna Slater
Eskom CEO Andre de Ruyter

Embedded generation dynamics shifting from ‘buyer’s to seller’s market’  

By: Terence Creamer     2nd February 2021 Market dynamics for embedded generation projects in South Africa have shifted materially over the past 12 months as an increasing number of mines and power-heavy industrial firms moved to install renewable-energy facilities at a time when government is also starting to resume utility scale... 

Embedded generation dynamics shifting from ‘buyer’s to seller’s market’

Eskom caps 2021 extra-revenue claim at R23bn, but tells court anything less will be ‘disastrous’ 

By: Terence Creamer     29th January 2021 State-owned power utility Eskom indicated during a court hearing on Friday that it would not seek to recover more than R23-billion in additional revenue through the tariff during its 2021/22 financial year, implying that any possible hike implemented on April 1 would be capped at about 15.5%.... 

Eskom caps 2021 extra-revenue claim at R23bn, but tells court anything less will be ‘disastrous’

Eskom seeks to recover R23bn through courts amid tariff hike  

29th January 2021 The precise size of the upcoming tariff hike is not yet known as Eskom seeks to recover R23-billion more through the courts. Engineering News Editor Terence Creamer unpacks this complicated issue. 

Eskom seeks to recover R23bn through courts amid tariff hike
Eskom seeks to recover R23bn through courts, amid tariff hike

Power hike could surge beyond the 10% hinted to by Nersa as Eskom hunts R23bn more in courts  

By: Terence Creamer     28th January 2021 South Africans should brace for power hikes of about 10% this year after the National Energy Regulator of South Africa (Nersa) finalised a court-ordered re-adjudication of Eskom’s previous applications. However, the increase could be materially higher should Eskom prevail in its legal endeavour... 

Nhlanhla Gumede
Nhlanhla Gumede

Eskom approaches court to have R23bn equity injection added back this year 

By: Terence Creamer     26th January 2021 State-owned electricity utility Eskom will make the case later this month for the immediate execution of a High Court order stipulating that an amount of R23-billion stripped unlawfully from its allowable revenue in 2019 by the National Energy Regulator of South Africa be added back during its... 

Eskom approaches court to have R23bn equity injection added back this year

Evaluation of emergency-power bids ‘by February’, with renewables bidding to open in ‘first quarter’ 

By: Terence Creamer     25th January 2021 The evaluation of the 28 bids received under South Africa’s Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) is anticipated to be concluded by February 2021, the IPP Office has confirmed with Engineering News. The preferred bidders, it adds, will be announced as soon as... 

Evaluation of emergency-power bids ‘by February’, with renewables bidding to open in ‘first quarter’

As South Africa veers from NDP jobs and poverty goals ‘course corrections’ proposed  

By: Terence Creamer     21st January 2021 With the National Development Plan’s (NDP’s) goals of achieving full employment and eliminating poverty by 2030 already out of reach ahead of the onset of the deadly Covid-19 pandemic, which has since obliterated the plan’s objectives entirely, the outgoing National Planning Commission (NPC) has... 

As South Africa veers from NDP jobs and poverty goals ‘course corrections’ proposed

Raising distributed-generation licensing threshold to 50 MW would unlock at least 5 000 MW in five years, survey shows  

By: Terence Creamer     20th January 2021 Lifting the licensing threshold for distributed-generation projects to 50 MW or higher could unlock an estimated 5 000 MW of additional capacity in five years and go a long way to rapidly easing South Africa’s debilitating power supply constraints. This is the conclusion of a Meridian Economics... 

Raising distributed-generation licensing threshold to 50 MW would unlock at least 5 000 MW in five years, survey shows

Frameworks put in place for incentivised tariffs for energy-intensive users 

15th January 2021 Creamer Media's Chanel de Bruyn speaks to Engineering News Editor Terence Creamer about frameworks that have been put in place to allow companies that use electricity intensively to apply for an incentivised tariff. 

Frameworks put in place for incentivised tariffs for energy-intensive users
Frameworks put in place for incentivised tariffs for energy-intensive users

First application made for power-tariff relief under new DMRE frameworks 

By: Terence Creamer     11th January 2021 The first application for tariff relief provided for under the Negotiated Pricing Agreement (NPA) frameworks published late last year by the Department of Mineral Resources and Energy (DMRE) has been submitted to the National Energy Regulator of South Africa (Nersa) for authorisation. Nersa tells... 

First application made for power-tariff relief under new DMRE frameworks

World Bank warns of extreme poverty setback as South Africa is buffeted by Covid

By: Terence Creamer     5th January 2021 The World Bank expects the South African economy to recover by 3.3% in 2021 and return to a “near potential pace” of 1.7% in 2022 after contracting by an estimated 7.8% during Covid-afflicted 2020. However, it warns in its flagship Global Economic Prospects report, published on Tuesday, that the... 

World Bank warns of extreme poverty setback as South Africa is buffeted by Covid

Eskom outlines streamlined restructuring model to deliver independent grid company by end-2021  

By: Terence Creamer     14th December 2020 Eskom CEO Andre de Ruyter outlined a streamlined approach on Monday to the vertical separation of the State-owned utility into three businesses of generation, distribution and transmission, which he said could accelerate the process of establishing an Eskom-owned independent transmission system... 

Eskom CEO Andre de Ruyter
Photo by Creamer Media's Donna Slater
Eskom CEO Andre de Ruyter

South Africa’s renewables plan presents ‘remarkable’ industrialisation opportunity 

By: Terence Creamer     11th December 2020 The roll-out of renewable energy at the scale envisaged in South Africa’s official electricity plan to 2030 presents a “remarkable” industrialisation opportunity, the leader of the South African Renewable Energy Masterplan (SAREM) project team, Francis Jackson, argues. Jackson, who is also a... 

Completed tower sections manufactured by DCD Wind Towers, which subsequently closed down as a result of a protracted Eskom-induced procurement hiatus
Completed tower sections manufactured by DCD Wind Towers, which subsequently closed down as a result of a protracted Eskom-induced procurement hiatus

EIUG urges members to apply for relief under negotiated pricing agreement framework 

By: Terence Creamer     8th December 2020 The Energy Intensive Users Group of Southern Africa (EIUG) has welcomed the ‘Short-Term and Interim Long-Term Negotiated Pricing Agreement (NPA) frameworks’ approved by the Department of Mineral Resources and Energy (DMRE) and is encouraging its members to apply for these opportunities where... 

EIUG urges members to apply for relief under negotiated pricing agreement framework

Seifsa calls for moratorium on power hikes as Eskom makes case for cost-reflectivity 

By: Terence Creamer     7th December 2020 Steel and Engineering Industries Federation of Southern Africa (Seifsa) used the platform created by ongoing National Energy Regulator of South Africa (Nersa) hearings to call for a moratorium on additional electricity tariff hikes, arguing that further increases would undermine the country’s... 

Seifsa calls for moratorium on power hikes as Eskom makes case for cost-reflectivity

Six steps proposed for unlocking larger-scale self-gen projects, amid ongoing government resistance  

By: Terence Creamer     26th November 2020 Six steps could be taken immediately by the South African government and the energy regulator to unlock more self-generation investment by residential, commercial, industrial, mining and agricultural consumers so as to minimise power shortages and reduce the threat of load-shedding, a newly... 

Six steps proposed for unlocking larger-scale self-gen projects, amid ongoing government resistance

Nersa sets Feb 5 deadline for written comment on proposed nuclear determination 

By: Terence Creamer     23rd November 2020 The National Energy Regulator of South Africa (Nersa) has given stakeholders until February 5 to comment on a Section 34 determination received from Minerals Resources and Energy Minister Gwede Mantashe for the procurement of new nuclear capacity post-2030. The draft determination delivered to... 

Nersa sets Feb 5 deadline for written comment on proposed nuclear determination

More than 60 power firms signal intention to bid into ‘emergency’ scheme – IPP Office 

By: Terence Creamer     17th November 2020 South Africa’s Independent Power Producer (IPP) Office reported on Tuesday that more than 60 respondents had signalled their intention, by the October 31 deadline for doing so, to participate in the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP), through which... 

IPP Office CEO Tshifhiwa Bernard Magoro
Photo by Creamer Media's Donna Slater
IPP Office CEO Tshifhiwa Bernard Magoro

Municipalities have integrated 282 MW of embedded power and see benefits in embracing transition 

By: Terence Creamer     16th November 2020 A total of 29 South African municipalities have already approved tariff frameworks for small-scale embedded generation (SSEG), with 282 MW of mostly rooftop solar capacity having be formally integrated into municipal networks, the South African Local Government Association (Salga) reports. The... 

Municipalities have integrated 282 MW of embedded power and see benefits in embracing transition

Makwetu hailed as gentle, unwavering giant in the fight against corruption

By: Sane Dhlamini     12th November 2020 Business Unity South Africa (Busa) president Sipho Pityana has hailed outgoing Auditor-General Kimi Makwetu as a gentle and yet unwavering giant in the fight against corruption and maladministration, following the news of his death. Makwetu died on Wednesday, at a hospital in Johannesburg,... 

Kimi Makwetu
Kimi Makwetu

South Africa aims to nail down R664bn in investment pledges at Nov gathering amid Covid-19 ‘shock’ 

By: Terence Creamer     9th November 2020 The third yearly South Africa Investment Conference (SAIC), which will take place on November 17 and 18, will focus primarily on ensuring the investment pledges of R664-billion made in 2018 and 2019 are not derailed by the Covid-19 pandemic. Government also intends using the platform to... 

Trade, Industry and Competition Minister Ebrahim Patel
Trade, Industry and Competition Minister Ebrahim Patel

Eskom's losses, tariffs back in the spotlight 

6th November 2020 Creamer Media's Chanel de Bruyn speaks to Creamer Media Editor Terence Creamer about power utility Eskom's unsustainable debt position and financial loss and the tariff increases it is seeking.  

Eskom's losses, tariffs back in the spotlight
Eskom's losses, tariffs back in the spotlight

Eskom says it needs R23bn more from tariffs in 2021 to remain a going concern  

By: Terence Creamer     5th November 2020 State-owned electricity utility Eskom argued on Thursday that it required additional revenue of R23-billion for the upcoming financial year to remain a going concern and told the National Energy Regulator of South Africa (Nersa) that further tariff increases, beyond the 5.22% already approved for... 

Eskom says it needs R23bn more from tariffs in 2021 to remain a going concern

Fresh moves under way to address debt albatross at lossmaking Eskom 

By: Terence Creamer     30th October 2020 Public Enterprises Minister Pravin Gordhan said on Friday that a “second round” of work is being initiated in an effort to find a solution to Eskom’s unsustainable debt burden in line with the recent social compact between government, community, labour and business to “mobilise funding to address... 

Eskom CEO Andre de Ruyter
Photo by Creamer Media's Donna Slater
Eskom CEO Andre de Ruyter

Massive grid investment needed to unlock IRP’s 30GW-by-2030 vision  

By: Terence Creamer     20th October 2020 State-owned electricity utility Eskom is warning that a significant and accelerated expansion of South Africa’s grid infrastructure, beyond that catered for by its current R118-billion investment plan to 2030, is required to integrate the 30 GW of mainly wind and solar generators that will have... 

 Massive grid investment needed to unlock IRP’s 30GW-by-2030 vision

Eskom moves to secure R23bn granted by High Court for 2021, despite Nersa appeal  

By: Terence Creamer     19th October 2020 Eskom has launched a fresh legal bid to ensure that the automatic reintroduction of a R23-billion equity injection to its allowable revenue in 2021/22, as granted by the High Court in July, is not negated by the fact that the National Energy Regulator of South Africa (Nersa) has been granted... 

Eskom CFO Calib Cassim presenting the utility's case at MYPD4 hearings in 2019
Photo by Creamer Media's Donna Slater
Eskom CFO Calib Cassim presenting the utility's case at MYPD4 hearings in 2019

Electricity regulations amended to allow municipalities to develop or buy power  

By: Terence Creamer     16th October 2020 Mineral Resources and Energy Minister Gwede Mantashe has gazetted amendments to the electricity regulations for new electricity generation capacity, opening the way for “municipalities in good financial standing to develop their own power generation projects”.  The Gazette notice amends the... 

Mineral Resources and Energy Minister Gwede Mantashe
Photo by Creamer Media's Donna Slater
Mineral Resources and Energy Minister Gwede Mantashe

Gap analysis needed to guide gas-to-power industry growth

By: Darren Parker     16th October 2020 With the potential of gas as an alternative energy source in South Africa an encouraging prospect, South African Oil and Gas Alliance (Saoga) CEO Adrian Strydom says the gas-to-power industry needs to conduct an accurate gap analysis, and engage in upskilling and capacity building to ensure that... 

FLOATING GAS
South Africa will need to import liquid natural gas for the short-term future, which will serve to stimulate the market
Photo by Adobe
FLOATING GAS South Africa will need to import liquid natural gas for the short-term future, which will serve to stimulate the market

Ramaphosa promises rapid power roll-out, but two-year timeframe for solving crisis ambitious 

By: Terence Creamer     15th October 2020 President Cyril Ramaphosa listed the rapid expansion of South Africa’s electricity generation, primarily through the building of additional renewable-energy capacity, as a key priority in government’s long-waited ‘Reconstruction and Recovery Plan’, which he unveiled in Parliament on Thursday. The... 

President Cyril Ramaphosa
President Cyril Ramaphosa

Eskom yet to decide next steps after Nersa publishes reasons for 2019 RCA decision

By: Terence Creamer     12th October 2020 State-owned electricity utility Eskom says it is reviewing the detailed reasons for decision published by the National Energy Regulator of South Africa (Nersa), in which it outlines why the utility was granted a R13-billion regulatory clearing account (RCA) balance for the 2019 financial year... 

Eskom yet to decide next steps after Nersa publishes reasons for 2019 RCA decision

World Bank forecasts ‘weak’ recovery for South Africa from Covid-19 

By: Terence Creamer     8th October 2020 The World Bank expects South Africa’s recovery from the Covid-19 pandemic to be weak relative to most other countries in sub-Saharan Africa, forecasting an economic expansion of only 2.6% in 2021 on the back of a massive 7.2% contraction this year. In its latest ‘Africa’s Pulse’ publication, the... 

World Bank highlights power reforms in South Africa to reduce dependence on Eskom
Photo by Creamer Media
World Bank highlights power reforms in South Africa to reduce dependence on Eskom

Nersa granted leave to appeal R69bn Eskom equity judgment 

By: Terence Creamer     7th October 2020 The National Energy Regulator of South Africa has been granted leave to appeal the July 28 High Court decision relating to the recovery of R69-billion of government equity, which the court judged had been illegally deducted by Nersa from Eskom’s allowable revenue for the period 2019/20 to... 

Eskom CFO Calib Cassim at Nersa hearings into Eskom's allowable revenue in 2019
Photo by Creamer Media's Donna Slater
Eskom CFO Calib Cassim at Nersa hearings into Eskom's allowable revenue in 2019

DBSA appoints Rakgate to head Infrastructure Fund

By: Terence Creamer     5th October 2020 The State-owned Development Bank of Southern Africa (DBSA) has, from October 1, appointed Mohale Rakgate as its new group executive for the Infrastructure Fund, which has been established by government to support an accelerated roll-out of economic and social infrastructure. Infrastructure is... 

Mohale Rakgate
Mohale Rakgate

City of Cape Town drafting ‘mini IRP’ as it prepares way for IPP procurement 

By: Terence Creamer     2nd October 2020 The City of Cape Town, which has been pushing for the right of municipalities to procure electricity directly from independent power producers for several years, is currently compiling what it describes as a “mini” integrated resource plan to guide its future procurement decisions and actions.... 

City of Cape Town drafting ‘mini IRP’ as it prepares way for IPP procurement

IPP procurement a signal that growth-enhancing reform is moving ahead – Ramaphosa  

By: Terence Creamer     28th September 2020 President Cyril Ramaphosa says the Gazetting of a Ministerial determination enabling the development of more than 11 800 MW of new electricity capacity by independent power producers signals government’s intention to move ahead with one of the key reforms needed to unlock growth and investment in... 

President Cyril Ramaphosa
Photo by Creamer Media
President Cyril Ramaphosa
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