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Regulation News

Eskom would be sustainable with yearly tariff rises of 25% - study

By: Terence Creamer     8th January 2010 South Africa's State-owned power utility Eskom could lop a further ten percentage points annually off its application for tariff increases of 35% a year between April 1, 2010, and March 31, 2013, and still emerge as a sustainable organisation able to fund its operations and its capital... 

Eskom tariff hearings to kick off in Mpumalanga on Jan 11

By: Terence Creamer     4th January 2010 Public hearings into Eskom's application for a 35% a year hike in its tariffs for the three-year period from April 1, 2010, to March 31, 2013, will kick off in Mpumalanga on January 11, before moving to all of South Africa's eight other provinces and culminating on January 21 at hearings... 

CIC Energy defers some work at Mmamabula, cites 'frustrating' regulatory process

By: Creamer Media Reporter      15th December 2009 CIC Energy has deferred certain financial, legal and engineering activities related to the Mmamabula energy project, in Botswana, with the company's decision driven by the South African government's development time-line for its energy sector integrated resource plan. In a statement released on... 

Eskom's rate of return likely to come under scrutiny during Nersa's January hearings 

By: Terence Creamer     11th December 2009 Debate on the rate of return proposed by State-owned power utility Eskom in its application for tariff increases of 35% a year is likely to be a key feature of stakeholder submissions to the National Energy Regulator of South Africa (Nersa), as well as the public hearing process, which will kick... 

No Kusile delay in SA's Cabinet-endorsed electricity road map 

By: Terence Creamer     3rd December 2009 There is a material misalignment between South Africa's inaugural integrated resources plan (IRP1) for power generation, which was approved by Cabinet on Wednesday, and a number of the proposals contained in State-owned power utility Eskom's revised tariff application, including disagreement... 

Eskom to sell up to 30% of Kusile in bid to secure up to R40bn in private equity  

By: Terence Creamer     1st December 2009 State-owned power utility Eskom would issue a request for proposals within weeks of its final December board meeting for an adviser to support it in securing up to R40-billion in project equity finance for its R142-billion Kusile coal-fired project. Acting executive chairperson Mpho Makwana said... 

Revised Eskom tariff details to be released on Tuesday

By: Terence Creamer     30th November 2009 Eskom's "revised submission" to the National Energy Regulator of South Africa (Nersa), which is likely to be substantially lower that the version submitted in September, was delivered on Monday evening, with details to be made public by the State-owned utility on Tuesday. Nersa told Engineering... 

R124bn Medupi pricetag another indication of Kusile's vulnerability as Eskom finalises tariff request 

By: Terence Creamer     27th November 2009 South Africa's National Treasury has indicated that the total price tag for the 4 764-MW Medupi power station, which is being developed by Eskom near Lephalale, in Limpopo province, now officially stands at R124,42-billion. Hitherto, the State-owned utility had indicated a capital cost of... 

Eskom mulling over new, lower tariff request 

By: Terence Creamer     16th November 2009 South Africa's African National Congress- (ANC-) led tripartite alliance, which met over the weekend, came out in opposition to Eskom's proposed electricity tariff increases of 45% a year for the three year period between April 1, 2010, and March 31, 2013. This is a material departure from the... 

New Eskom tariff application by the end of November 

By: Terence Creamer     13th November 2009 Power utility Eskom would submit a new and "final" tariff application to the National Energy Regulator of South Africa (Nersa) by November 30, following consultations with stakeholders, Engineering News Online has confirmed. It was unclear, however, whether this revised version would deviate... 

LPG regulations to be promulgated in ‘next few weeks’ – Peters

By: Esmarie Iannucci     9th November 2009 A recently conducted pilot project to assess the viability of using liquid petroleum gas (LPG) as an alternative energy resource for low-income households, had proven that there was an appetite for LPG in rural areas, but pricing remained an issue, Energy Minister Dipuo Peters said on Monday.... 

SA needs longer-term renewable energy targets to unlock sector's potential 

By: Christy van der Merwe     3rd November 2009 In the short-term, South Africa could provide between 10% and 20% of it’s national power requirement, solely from wind power, and if certain constraints were lifted, and longer-term targets set, even more renewable energy could be produced, and provide energy security for the country. “For South... 

Petroleum industry urges finalisation of competition law exemption

By: Esmarie Iannucci     2nd November 2009 The Department of Energy (DOE) and petroleum industry roleplayers on Monday called on the Competition Commission to finalise the exemption of the industry from competition law. The petroleum industry felt that it was necessary to allow industry competitors to hold regular discussions on supply... 

Nersa seeks to stimulate debate on Eskom's tariff request with ‘issues paper'

By: Creamer Media Reporter      30th October 2009 The National Energy Regulator of South Africa (Nersa) published an "Issues Paper" at the weekend, in which it summarises Eskom's recent tariff application and raises questions aimed at supporting stakeholder participation in a process that will culminate in public hearings during January next year. 

Eskom plans global bond issuance for first half of 2010 

By: Terence Creamer     16th October 2009 South African power utility Eskom was making provision for an international bond issuance during the first half of 2010 as part of a planned programme to raise some R40-billion a year between 2010 and 2013, so as to partly cover funding shortfalls associated with its R400-billion build... 

Nersa to make Eskom tariff ruling by Feb 24

By: Terence Creamer     15th October 2009 The National Energy Regulator of South Africa (Nersa) revealed on Thursday that it would make a final determination on Eskom's tariff request by February 24, 2010, well ahead of the start of the utility's financial year on April 1, 2010. 

Eskom to face R30bn funding gap even after hikes of 45% yearly for three years 

By: Terence Creamer     13th October 2009 South Africa's financially stressed electricity utility Eskom argued on Tuesday that power prices should already be at a level of between 80 c/kWh and 88 c/kWh, rather than the prevailing 33 c/kWh, and that a rising price path was "painful, yet unavoidable" in order to migrate towards a more... 

Even Eskom's ‘smoothed' scenario will feel like a spike to consumers 

By: Terence Creamer     8th October 2009 The National Energy Regulator of South Africa (Nersa) would probably only publish power utility Eskom's tariff application in November, despite the fact that some of its contents have started to leak into the public domain. The leaks come amidst heightened interest about what is contained in the... 

Eskom at odds with those warning that 
SA could again descend into load-shedding

By: Darren Parker     2nd October 2009 Load shedding will not darken South Africa in the first quarter of next year, State-owned power utility Eskom spokesperson Fani Zulu tells Engineering News, despite claims to contrary by independent energy industry experts. 

Eskom submits tariffs request, details to be published later 

By: Terence Creamer     1st October 2009 South Africa's financially stressed power utility Eskom met the energy regulator's September 30 deadline for submission of an application for tariff increases for its 2010/11 and 2011/12 financial years, but the National Energy Regulator of South Africa (Nersa) indicated on Thursday that it would... 

Stakeholders to meet on draft energy-efficient building regulations  

By: Creamer Media Reporter      21st September 2009 The National Regulator for Compulsory Specifications (NRCS) has drafted a new part of the National Building Regulations, which will set minimum requirements for energy efficiency in buildings, and will hold a stakeholder meeting regarding the draft regulation on Tuesday. The meeting would take... 

SA's cogeneration sector needs to be 'rescued'

By: Chanel de Bruyn     16th September 2009 Cogeneration in South Africa needed to be rescued, as the sector has virtually come to a complete halt owing to a very uncertain environment, former Sappi regional manager Dave Long said on Wednesday. The next power crisis in South Africa was “looming large” with smelters and big electricity... 

Infrastructure funding uncertainties need to be removed – Actom 

By: Martin Creamer     15th September 2009 Infrastructure funding uncertainties needed to be removed to ensure job security and the sustainability of local manufacturing capacity, Actom MD Mark Wilson said on Tuesday. Speaking to Engineering News Online at the change of name of Alstom Electrical Industries to Actom, Wilson said that... 

Far more urgency needed if we are to avoid yet more power stress

By: Terence Creamer     4th September 2009 Given the economically and psychologically debilitating drama of the 2008 electricity crisis - precipitated by supply-side instability (itself a consequence of policy failure, regulatory inertia and primary-energy mismanagement) - it is frankly perplexing that there isn't more of an outcry about... 

Renewable energy industry players make Refit submissions to Nersa

By: Christy van der Merwe     3rd September 2009 The public hearings for the second phase of the renewable energy feed-in-tariff (Refit) took place at the National Energy Regulator of South Africa's (Nersa's) office in Pretoria on Thursday, with 19 presenters from industry lined up to make presentations to the Nersa panel. Nersa hearings... 

New generation-capacity planning regulations bode well for timely Mmamabula power purchase agreement

By: Darren Parker     21st August 2009 State-owned power utility Eskom has promised independent power producers (IPPs) that it will have its funding model ready by the end of September, which it needs to have approved by the National Energy Regulator of South Africa (Nersa) and government before allocating any more funds towards the... 

Medupi project between four and six months behind ‘contracted schedule’ 

By: Terence Creamer     17th July 2009 There had been some schedule slippages at the R100-billion Medupi project, which is being developed near Lephalale, in the Limpopo province, Eskom spokesperson Fani Zulu confirmed on Friday. Zulu told Engineering News Online that the project was now between “four- and six-months” behind the... 

Eskom says it is not yet ready to commit to buying power from $3bn Mmamabula 

By: Terence Creamer     17th July 2009 TSX-listed energy company CIC Energy announced on Friday that it had received notification from South Africa power utility Eskom that it could not, in the absence of clarity on its funding model, commit to the purchase of electricity from CIC's proposed $3-billion Mmamabula project, in Botswana.... 

100% local high quality pressure vessel, expansion joints, boiler economizer and general fabrication 

16th July 2009 South African Compensators is offering 100% locally manufactured high quality pressure vessels, tanks, expansion joints round and rectangular, boiler economizers and ducting suitable for use in the power generation, petrochemicals, mining, and paper and pulp industries. These products can be... 

SA reviews energy-efficiency strategy

By: Christy van der Merwe     8th July 2009 The methodology to monitor the achievement of energy efficiency targets, with energy efficiency indicators, has been completed, and the Department of Energy has started a review of its Energy Efficiency Strategy, which began in 2005. DoE director for energy efficiency and environment Elsa du... 

S&P's could lift Eskom watch soon, but wants finality on guarantees

By: Terence Creamer     7th July 2009 International credit ratings agency Standard & Poor's (S&P's) said on Tuesday that it would remove power utility Eskom from ‘CreditWatch' as soon as it had certainty on the execution of the R176-billion government-guarantees package - a development which it anticipated would take place within... 

From wind to fuels, IDC mulling big energy-economy role 

By: Terence Creamer     6th July 2009 South Africa's State-owned Industrial Development Corporation (IDC) expects to become increasingly active in the energy milieu, both as a partner to independent power producers (IPPs), as well as a financier of mega transport fuel projects. CEO Geoffrey Qhena tells Engineering News that its... 

Nersa says it cannot issue new guidelines to limit municipal power hikes 

By: Terence Creamer     29th June 2009 The National Energy Regulator of South Africa (Nersa) indicated on Monday that it would not draft new guidelines for the country’s municipalities directing them to pass on only justifiable electricity-price increases once the recently approved Eskom increase came into force as from Wednesday,... 

Nersa to probe Eskom’s primary energy costs  

By: Chanel de Bruyn     25th June 2009 The National Energy Regulator of South Africa (Nersa) would conduct an investigation into Eskom’s primary energy costs, and specifically the cost of coal, to establish the “prudence of the costs”, chairperson Collin Matjila reported on Thursday. This comes as respondents to Eskom’s latest 34%... 

Regulator grants Eskom 31,3% tariff increase  

By: Chanel de Bruyn     25th June 2009 The National Energy Regulator of South Africa (Nersa) on Thursday granted electricity utility Eskom a 31,3% power tariff increase, which includes an environmental levy, and warned consumers that future tariff increases would occur. State-owned Eskom, which submitted a delayed application in May,... 

SA likely to step up regulation in some industries  

By: Esmarie Iannucci     24th June 2009 South Africa would step up regulation in a number of industries, particularly where national monopolies existed, the Department of Public Enterprises (DPE) said on Wednesday. Speaking at the African Ports and Harbours congress, DPE DDG for transport Dr Andrew Shaw said that regulation had... 

Funding gaps could lead to curtailment of Eskom projects – Hogan 

By: Terence Creamer     23rd June 2009 Public Enterprises Minister Barbara Hogan warned on Tuesday that Eskom’s build programme, which was viewed as central to the South African government’s mitigating response to the prevailing economic crisis, could be curtailed and/or rephased, unless funding shortfalls could be covered by either... 

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