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Regulation News

Energy Minister promises ‘emphatic’ decisions on nuclear energy

By: Terence Creamer     23rd June 2009 South Africa’s new energy Minister promised on Tuesday that “emphatic decisions” would be made about the future of Eskom’s nuclear build programme. Addressing Parliament in her inaugural Budget Vote, Minister Dipuo Peters again stressed government’s intention to deploy nuclear energy as a means... 

New Companies Act to alter SA business landscape

By: Darren Parker     19th June 2009 The new Companies Act has been approved by Parliament, and assented to by the President, and is expected to come into effect in mid-2010, replacing the old Companies Act 61 of 1973 in its entirety. 

State support triggers Eskom outlook revision by Fitch

By: Terence Creamer     10th June 2009 Recent signs of explicit and implicit government support for State-owned power utility Eskom had been sufficient for Fitch Ratings to revise the utility’s national long-term rating to “stable” from “negative”. The outlook was revised to ‘negative’ in August 2007, owing to perceived challenges... 

Eskom CEO Maroga defends late tariff submission  

By: Chanel de Bruyn     9th June 2009 Eskom was of the view that as much as it had to respect deadlines, the considerable amount of funds it required and the impact that tariff increases would have on the economy, needed further dialogue, which had taken time, CEO Jacob Maroga said at public hearings held by the National Energy... 

New Energy Department outlines key priorities

By: Jade Davenport     20th May 2009 The newly-established Department of Energy on Wednesday announced its short- to medium-term priorities for the sector at a conference Cape Town. The new department, which was formed when President Jacob Zuma split the Minerals and Energy department into two portfolios, will focus on issues such... 

Uncertainty over tariff-capex dynamic forces Eskom into ‘interim’ 34% request

By: Terence Creamer     15th May 2009 After months of speculation and delay, Eskom has eventually made an application to the National Energy Regulator of South Africa (Nersa) for a price increase, submitting a request for a nominal 34% increase (25% real) for 2009/10. But the submission has been described by Eskom as merely an... 

Cost-recovery mechanism will unlock stalled IPP processes, says Eskom

By: Terence Creamer     7th May 2009 State-owned power utility Eskom said on Thursday that it was satisfied that the proposed rules for power purchase cost recovery, as outlined by the National Energy Regulator of South Africa (Nersa), would provide the basis for the utility to pursue long-awaited agreements with independent power... 

Transnet proceeding with pipeline, but warns of even higher future price spike 

By: Terence Creamer     7th May 2009 State transport utility Transnet said on Thursday that the construction of its R12-billion new multipurpose pipeline (NMPP) from Durban to Gauteng would continue as planned and would be completed and operational by December 2011, despite the regulator having turned down its 74,4% tariff-increase... 

Constitutional amendment plan likely to raise debate

By: Irma Venter     1st May 2009 Cabinet has approved plans to push ahead with an amendment to the Constitution, which will give national government new and extended powers of intervention at the local government level, says government spokesperson Themba Maseko. 

GDF Suez mulling over SA wind-energy prospects

By: Terence Creamer     21st April 2009 Global independent energy company GDF Suez, which is pursuing an open-cycle gas-turbine project in South Africa, would now also consider wind-energy investments in the country, following the recent release of a renewable energy feed-in tariff (Refit) framework by South Africa’s energy regulator.... 

Pressure mounts on Eskom to ‘leverage’ R385bn capex to stimulate SA economy  

By: Terence Creamer     21st April 2009 South African energy utility Eskom, which will spend R87-billion in 2009/10 on capital expenditure (capex) programmes, was intensifying its efforts to ensure economic- and industrial-development spin-offs from the investment, CEO Jacob Maroga said on Tuesday. The investment was part of a larger... 

New feed-in tariffs to inspire renewables projects

17th April 2009 Energy regulator the National Energy Regulator of South Africa (Nersa) has approved the Renewable Energy Feed-In Tariff (Refit) guidelines.ho 

Foundry industry reduces power use to gain competetive edge

By: Lindsey Berry     10th April 2009 The National Foundry Technology Network (NFTN) has established the Energy Utilisation project to assist foundries to reduce their energy consumption, NFTN project leader Richard Beän tells Engineering News. 

West Africa will turn to private sector to close 10 000-MW power gap, but risks persist

By: Terence Creamer     6th April 2009 West Africa’s chronic power-supply vulnerabilities, together with ongoing power-sector reform in the territory, were opening up fresh opportunities for private participation, new analysis from Frost & Sullivan asserted. The region required additional capacity of at least 10 000 MW to meet power... 

Farming dairy cows and energy all at the same time

By: Terence Creamer     3rd April 2009 When Mark Holliday took ownership eight years ago of the Sunnyside dairy farm, located some five kilometres from Jeffrey’s Bay, he was struck not only by how windswept it was, but that no-one had thought to tap into this valuable resource. He “rang around” to find out whether there were any... 

Eskom may need yet more State aid, Maroga warns

By: Terence Creamer     1st April 2009 The head of South African power utility Eskom has hinted to the possibility that the State-owned enterprise may approach government for yet more support beyond the R60-billion subordinated loan and the R176-billion in guarantees already extended to help it finance its R385-billion, five-year... 

Green energy gets shot in the arm with generous SA tariff regime  

By: Terence Creamer     31st March 2009 The National Energy Regulator of South Africa (Nersa) gave South Africa’s nascent renewable-energy industry a major boost on Tuesday when it unveiled a generously priced renewable energy feed-in tariff (Refit) regime for potential wind, minihydro, landfill-gas and concentrating-solar power... 

Cosatu warns it will strike if Eskom gets 34% tariff increase  

By: Creamer Media Reporter      30th March 2009 South Africa’s largest labour federation, the Congress of South African Trade Unions (Cosatu), has again voiced its concern over State-owned Eskom’s plans to apply for an electricity tariff increase for the coming year. Cosatu said it would launch a national strike action, if the National Energy... 

Eskom may apply for a 34% tariff hike – report

By: Terence Creamer     30th March 2009 State-owned power utility Eskom might apply to the National Energy Regulator of South Africa (Nersa) for a 34% increase in electricity tariffs for the coming year, South Africa’s Business Day reported on Monday. The leading national daily said that Eskom’s board would meet this week on the... 

State support vital to give factories a renewable boost

By: Leandi Kolver     20th March 2009 The solar and alternative energy industry needs more support from government, says alternative energy company SolarCon MD Dieter Dilchert. "There is an increased demand for alternative energy in South Africa in light of the power shortage issues the country is currently undergoing, however, we... 

New wind-energy partnership sets sights on 500-MW in SA by 2014

By: Terence Creamer     19th March 2009 A newly formed South African-European renewable-energy joint venture announced plans on Thursday for the development of 500 MW of wind-energy capacity in South Africa by 2014, and revealed that its first 30-MW venture would be “construction ready” by early 2010. The joint venture comprises Irish... 

Cosatu threatens another nationwide power-tariff strike  

By: Terence Creamer     18th March 2009 South Africa’s largest labour federation has threatened another national strike should power utility Eskom’s tariff application come in at, or above, the price path outlined by the National Energy Regulator of South Africa (Nersa) last year. Congress of South African Trade Union’s (Cosatu’s)... 

Draft regulations for industrial tax incentives released 

By: Chanel de Bruyn     10th March 2009 The National Treasury on Tuesday released the draft regulations relating to tax incentives in support of government’s industrial policy strategy for public comment. Government would spend R5,6-billion over five years on the tax incentives, Department of Trade and Industry (DTI) director-general... 

SA’s climate change mitigation policy should start with sustainable energy solutions – Winkler

By: Christy van der Merwe     6th March 2009 In developing countries, such as South Africa, sustainable supply and use of energy should have development impact as the first priority, and the mitigation of climate change as a logical spin-off, argued University of Cape Town Energy Research Centre associate professor, Harald Winkler. Also a... 

BP, Transnet battle has genesis in SA’s fuel-setting inequities 

By: Terence Creamer     6th March 2009 The so-called ‘locational advantage’ of South Africa’s inland oil refineries, which itself is a factor of South Africa’s fuel-setting formula, lies at the heart of the intensifying war of words between oil group BP and State utility Transnet. The conflict, ostensibly sparked by Transnet’s tariff... 

Cape Town chamber raises concerns over electricity-distribution programme

By: Creamer Media Reporter      5th March 2009 The Cape Town regional Chamber of Commerce and Industries on Thursday expressed its concern about government’s plans to change the Constitution in order to take the responsibility for electricity distribution away from municipalities and hand it to Regional Electricity Distribution (Red)... 

Mandatory power-savings campaign could dent company earnings

By: Chanel de Bruyn     27th February 2009 The effect of the proposed power conservation programme (PCP) on the earnings of large energy users and their subsequent contribution to South Africa’s gross domestic product (GDP), emerged as the biggest concern at a stakeholder forum held to discuss the proposed policy in Pretoria earlier this... 

'Team SA' must come together to develop national energy strategy - Godsell 

By: Terence Creamer     20th February 2009 The nonexecutive chairperson of State power utility Eskom has made a strong appeal for a “Team South Africa” approach to the forging of a comprehensive “national energy strategy” for the medium term. Bobby Godsell says the strategy, which should be developed within multistakeholder forums, must... 

Moosa acted improperly, but Medupi tender not unlawful – Mushwana  

By: Chanel de Bruyn     18th February 2009 Former Eskom board chairperson Valli Moosa has been found by the Public Protector South Africa to have acted improperly during the awarding of a contract related to the construction of the Medupi coal-fired power station in 2007. However, his failure to “manage the conflict of interest” in... 

S&P’s scrutinises Eskom guarantee detail before making ratings call

By: Terence Creamer     13th February 2009 International rating agency Standard & Poor’s (S&P’s), which last year placed Eskom on a negative credit watch, would seek further details from both the South African government and the power utility regarding the precise conditions surrounding the recently announced guarantees package before... 

Businesses warn that mandatory power-savings campaign could dent earnings 

By: Chanel de Bruyn     10th February 2009 The effect of the proposed power conservation programme (PCP) on the earnings of large energy users and their subsequent contribution to South Africa's gross domestic product (GDP), emerged as the biggest concern at a stakeholder forum held to discuss the proposed policy in Pretoria on Tuesday.... 

Power prices have to begin reflecting true costs – Godsell 

By: Terence Creamer     6th February 2009 Eskom nonexecutive chairperson Bobby Godsell has taken off more or less from where his much ridiculed predecessor, Valli Moosa, left off by calling for South Africa to move rapidly towards electricity tariffs that reflected the true economic cost of production. But the former gold-mining... 

Big climate change economy likely to emerge as world seeks low-carbon future

By: Leandi Kolver     6th February 2009 If global greenhouse-gas (GHG) emission reduction opportunities are pursued to their full potential, from €200-billion to €350-billion would be spent annually on these initiatives by 2030, according to global management consulting firm McKinsey & Co. 

‘Proposed renewable tariffs too low to entice investors’ 

By: Terence Creamer     5th February 2009 Potential renewable-energy investors and clean-energy lobby groups argued overwhelmingly on Thursday that South Africa’s proposed renewable energy feed-in tariffs (Refit) were parsimonious and would be insufficient to stimulate significant levels of investment into the nascent industry. In... 

Will proposed feed-in tariffs be sufficient to kick-start South Africa’s new-energy economy? 

By: Jonathan Faurie     30th January 2009 The contemporary energy challenge is probably best defined as discovering and developing the technical solutions that can ensure more and affordable energy, while at the same time reducing the environmental impact of the energy system. 

Declining oil reserves and 
political risk to drive 
alternative energy

By: Brindaveni Naidoo     30th January 2009 The share of alternative energies in the worldwide energy supply is expected to grow significantly in the future, primarily driven by the political risk of relying on declining oil reserves and concerns about global warming, inspiring many countries to enact renewable energy standards, forecasts... 

Abu Dhabi announces 7% renewable 
energy commitment by 2020

By: Brindaveni Naidoo     30th January 2009 The government of Abu Dhabi, in the United Arab Emirates (UAE) says it will shortly publish a comprehensive energy policy, underpinned by a commitment that, by 2020, renewable energy will account for 7% of the emirate’s total power generation capacity. 

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