Nersa stands firm on licensing private operators amidst Eskom's court battle

THE National Energy Regulator of South Africa (Nersa) has expressed confidence in its decision to grant trading licences to private electricity operators, despite Eskom’s legal challenge.

- BANELE GININDZA

Eskom contends that Nersa violated its own regulations by issuing these licences without the proper industry rules, potentially jeopardising the integrity of the electricity supply chain.

At the core of the dispute is Eskom’s frustration over licensing that permits private operators to trade electricity, diverging from the traditional path of virtual wheeling agreements.

The challenge suggests a fear that these new entrants might cherry-pick the best-paying customers, leaving Eskom burdened with slower-paying clients.

Nersa chairperson Thembani Bukula on Tuesday said the dispute Eskom had with the traders revolved around certain areas that traders will take the best paying customers and leave the utility with slow payers.