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NERSA Sets Down Electricity Generators Licence Fee

June 30, 2020

Department of Mineral Resources and Energy

The mineral resources and energy department has announced the licence fee to be paid by the generators of electricity in South Africa.

In Notice 708 published in Government Gazette 43474, the department indicates that a levy of 0.08924c/kWh must be paid by licensed electricity generators to the National Energy Regulator of South Africa (NERSA).

The notice is published in terms of section 5(b) of the Electricity Act of 1987.

A licence is needed when a generator of electricity seeks to connect to the Eskom distribution network.

The levy will apply from 1 April 2020 until 31 March 2021.

Section 5(b) was the only part of the act not repealed by the Electricity Regulation Act of 2006.

Section 5b focuses on the sources of funds for NERSA.

Licence fees are one of the recognised sources, the others being donations or contributions and interest on investments.