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NERSA to Hold Hearing on Reviewed Notified Maximum Demand Rules

January 26, 2021

Department of Mineral Resources and Energy

A public hearing on the reviewed Notified Maximum Demand (NMD) and/or Maximum Export Capacity (MEC) rules is on the cards.

The mineral resources and energy department announced the hearing in Government Gazette 44098.

The National Energy Regulator (NERSA) published a consultation paper on the reviewed Notified Maximum Demand (NMD) and/or Maximum Export Capacity (MEC) rules in November 2020.

According to NERSA, the NMD is the maximum demand per Point of Delivery notified in writing by the customer and accepted by the licensee and the MEC is the maximum capacity at the Point(s) of Supply notified by the customer and accepted by the licensee for the transmission of electrical energy between a generator and the transmission or distribution system in accordance with the rules.

“The exceedance of the NMD and/or MEC places the licensees’ network under strain or safety risk and hampers the licensees’ ability to do proper network and capacity planning, which may affect other customers’ electricity supply and energy export to the distribution or transmission system.”

NERSA points out that the rules allow for an excess network capacity charge to be raised for monthly exceedances of the NMD and/or MEC.

“This pricing signal is not a permission to exceed, but an incentive for customers to stay within their contracted NMD and/or MEC and/or to notify their NMD and/or MEC correctly.”

The NMD rules were reviewed to ensure that they are applicable to all licensees and to incorporate new developments such as municipal Eskom debt, self-generation, purchasing electricity directly from Independent Power Producers and battery storage.

The hearing is set down for 1 February 2021.

Requests to participate must be submitted by 28 January 2021.