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NERSA Rules on Areas of Supply Drawn Up

August 20, 2019

Department of Energy

20 August 2019

Comment is sought on Draft National Energy Regulator of South Africa (NERSA) Rules for Licensable Distribution Areas of Supply.

The energy department published the Draft Rules in Government Gazette 42650.

According to the notice, the Draft NERSA Rules aim to “outline the future licensing criteria of electricity areas of supply, namely for Green and Brown field areas, Electricity Resellers and Standalone customer/End-user connections, and areas and In-Fills electrified through the Department of Mineral Resources and Energy (DMRE) Integrated National Electrification Programme (INEP) funding or any other Government funding”.

The Draft Rules are designed to set down the regulatory requirements to be followed by all Distributors and the criteria to be considered by NERSA when determining the incorporation of a new area of supply into an Electricity Distribution Licence Schedule 1 (List of Areas of Supply).

The Draft Rules focus on co-operation amongst licensees, application requirements, criteria for deciding on the inclusion of an area of supply, prohibited activities relating to areas of supply and objections relating to licensable area of supply.

The Draft Rules will apply to all Distribution Licensees that seek to apply for the inclusion of a licensable area of supply in its Licence.

Comment is invited until 13 September 2019.

Meanwhile, the department has published a Request for Proposal from municipalities in preparation for Energy Efficiency and Demand Side Management (EEDSM) projects for the 2020/21, 2021/22 and/or 2022/23 financial years.

Municipalities are expected to submit EEDSM Project proposals for funding consideration for the EEDSM grant allocation.

The department will evaluate the proposals based on a pre-determined criterion which includes, inter alia, energy savings potentials, low investment costs, quick pay-back periods and opportunity to create local jobs.

Submissions are invited until 30 September 2019.