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Electricity Regulations on New Generation Capacity Amended

October 19, 2020

Department of Mineral Resources and Energy

Electricity Regulations on New Generation Capacity have been amended.

The mineral resources and energy department published the amended Regulations in Government Gazette 43810.

They were drawn up in terms of the Electricity Regulation Act.

Regulation 1 is amended by the insertion of a new definition on “integrated development plan”.

It “means an integrated development plan contemplated in section 25 of the Municipal Systems Act”.

The definition on “minister” is also amended to refer to the ministry of mineral resources and energy.

Changes are also introduced to Regulation 2 referring to organs of state active in the energy sector and energy storage.

A new subregulation 3 is inserted into Regulation 5 stipulating that municipalities can apply to the minister to procure or buy new generation capacity in accordance with the Integrated Resource Plan.

Municipalities are also expected to conduct and submit feasibility studies where new generation capacity projects are to be delivered through an internal mechanism and submit proof that it has complied with the provisions of section 120 of the Municipal Finance Management Act and the Municipal Public-Private Partnership Regulations where new generation capacity projects are to be delivered through an external mechanism.

Municipalities must also submit proof that the application is aligned with their Integrated Development Plan.

Regulation 9 is amended by including reference to the Public Finance Management Act, the Municipal Finance Management Act or the Municipal Systems Act.

In a statement, the department confirmed that the amendments give effect to president Ramaphosa’s commitment during the State of the Nation address that government will enable municipalities in good financial standing to develop their own power generation projects.

The department added that the amendments to the Regulations “clarify the regime applicable to municipalities when requesting Determinations under Section 34 of the Electricity Amendment Act”.

The department pointed out that an internal standard operating procedure has been put in place to ensure that requests for Section 34 Determinations are attended to in the “shortest possible time”.