Envusa Energy Achieves Milestone: Granted Electricity Trading License By The National Energy Regulator Of South Africa
Kenneth Mohammed Haddebe (South Africa)
The National Energy Regulator of South Africa (NERSA) revealed significant decisions made during its meeting on December 14, 2023, addressing crucial aspects of the country’s electricity industry.
Eskom Retail Tariff Approval for 2024/25:
The Energy Regulator greenlit Eskom’s Retail Tariff and Structural Adjustment (ERTSA) application for the 2024/25 financial year. Approved average tariff increases for various customer categories were outlined, emphasizing affordability subsidies and rural considerations.
Electricity Pricing Rule Approval:
NERSA approved the Electricity Pricing Rule, a transformative approach to tariff setting based on a five-step rate-setting process. The rule adapts to the changing electricity industry landscape, accommodating independent power generators and Eskom’s unbundling.
Envusa Energy Granted Electricity Trading License:
NERSA granted Envusa Energy (Pty) Ltd an electricity trading license. Envusa Energy, a joint venture between Anglo-American and EDF Renewables South Africa, plans to buy electricity from generators and supply it to key customers, contributing to South Africa’s renewable energy goals.
Eskom’s Negotiated Pricing Agreement Approval:
Eskom’s six-year Negotiated Pricing Agreement (NPA) for the Glencore-Merafe chrome venture ferrochrome smelter operation in Rustenburg, North West Province, received approval. This decision follows the North Gauteng High Court ruling on Eskom as the supplier for the Rustenburg smelter.
These decisions mark strategic moves in South Africa’s energy landscape, addressing tariff structures, pricing rules, trading licenses, and long-term agreements, aligning with the nation’s energy transition objectives. For detailed tariff adjustments and regulatory specifics, refer to the official NERSA documentation.
