Eskom came out guns blazing against the recent decision by the National Energy Regulator of South Africa (Nersa) to issue multiple electricity trading licenses within Eskom’s service area, a move the utility argues violates regulatory guidelines.
It said in a statement late on Wednesday night that it plans to seek a High Court review.
This development adds to an ongoing dispute about opening South Africa's power market, as Eskom contends that Nersa’s approval of additional trading licenses breaches rules designed to maintain regulated boundaries for providers.
On Tuesday, Nersa granted four new trading licenses to Africa GreenCo, Green Electron Market, CBI Electric Apollo and Discovery Green. An import/export licence was also issued to GreenCo Power Services.
There are currently six trading licences: PowerX, EnPower Trading, Neura Trading, Energy Exchange of Southern Africa, Envusa Trading and to Eskom Holdings’ National Transmission Company South Africa.
Eskom said, “The trading licenses were approved without the necessary trading rules for the industry being developed, a point acknowledged by the Regulator members during their deliberations.”
The decision by the Regulator, according to Eskom, infringes upon and breaches Nersa’s own rules and the licenses issued to Eskom by Nersa.
Eskom said it disagrees with this decision and has instructed its attorneys to initiate legal proceedings in the High Court.
Eskom said, like all other participants in the electricity industry, it operates based on established rules and subscribes to a rule-based transition.
“However, this adherence to the rules has been misinterpreted as anti-competitive behaviour, which Eskom firmly denies,” it further said.
However, the power utility made clear that it remains committed to accelerating the reform of the rules to enable a competitive energy market.
It said, “As presented during the public hearing, Eskom will collaborate with various stakeholders to ensure that a competitive market is developed through a consultative legal framework.
“Eskom advocates for a dynamic electricity market that ensures energy security, access and affordability, fosters growth, and delivers long-term benefits for South Africa and sub-Saharan Africa.”
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