The National Energy Regulator of South Africa (Nersa) says there is a need to align South Africa’s energy regulatory framework with that of other countries on the continent. Nersa says this will allow easier trade and importation of gas resources.
In a presentation to the portfolio committee on Mineral Resources and Energy, Nersa CEO Advocate Nolmalanga Sithole said the regulatory measures are necessary as South Africa’s gas resources are in decline.
Sithole says, “The harmonisation of frameworks to allow cross border within the SABC region and the continent is necessary and more specifically as we have a indicated that we are experiencing a decline in gases supplies and the harmonisation, if it is done, will allow us to also get gas from other neighbouring countries.”
Nersa has highlighted a number of challenges it faces in carrying out its duties including litigation from those it oversees, including Eskom.
The entity says it has spent R62 million fighting litigation since 2020. The majority of the legal challenges were from the electricity sector, mostly Eskom.
Sithole has told the Portfolio Committee that a major challenge is the lack of updated legislation to deal with the current conditions.
“The need to finalise the review of the governing legislation and policies for the electricity industry that have not been reviewed for at least over 13 to 15 years while the industry is evolving at a high speed. And this has posed a challenge in terms of us having to regulate those changes that keep on coming in this industry. We do acknowledge the fact there is some progress, however, we believe the pace can be sped up.”
Last month, Nersa reinstated public hearings into electricity tariff increases: