Eskom takes on Nersa

POWER: BATTLE OVER FIVE TRADING LICENCES GOES TO HIGH COURT

- Antoinette Slabbert

Eskom has made good on its earlier threat to challenge energy regulator Nersa's granting of licences for electricity trading in court. It wants trading rules to be finalised first and even suggests that traders contribute to the payment of municipalities' R100 billion arrear debt for bulk purchases.

Following Nersa's publication of the reasons for its decision, Eskom has launched an application in the High Court in Pretoria to have the granting of five trading and one import/export licence reviewed and set aside.

The respondents are Nersa and the five licensees - Green Electron Market, CBI Electric Apollo, GreenCo Power Services, Discovery Green and Noa Group Trading.

This comes more than a decade after the first electricity trading licence was granted to PowerX. Nersa has so far granted around 10 such licences.

According to the agenda, the regulator will consider two more trading licences and two import/export licences at its 30 July meeting, as well as an application by a municipality for separate distribution and trading licences.

If granted, Eskom may join the new licensees in the action.

Traders, also referred to as aggregators, are essentially middle-men between independent power producers and end-users.

They enter into agreements with multiple generators and sell to multiple customers with diverse energy requirements, at a margin to compensate them for taking some of the risk.