Nersa's green light to traders opposed by Eskom and Salga

The South African Local Government Association (Salga) has joined Eskom in objecting to the issuing of electricity trading licences to private entities by the National Energy Regulator of South Africa (Nersa), without electricity trading rules being in place.

- Alida de Beer

Nersa issued licences to five private traders while it only recently started with the development of a framework of rules. The approvals are being opposed by Eskom in an application to the High Court to have them all set aside.

Salga has now also called for the suspension of any further approvals of trading licences until the regulatory framework is finalised. According to Salga, municipalities face losing electricity revenue which is critical to fund energy and other local essential infrastructure.

"Allowing traders to target only high-value, reliable customers, will reduce cross-subsidisation and leave municipalities with a disproportionate share of defaulting customers," Salga said in a statement.