Home  »  Articles   »   Schedule 2 of Electricity Regulation Act Under Revision

Schedule 2 of Electricity Regulation Act Under Revision

December 4, 2019

Department of Mineral Resources and Energy

4 December 2019

A revised Schedule 2 of the Electricity Regulation Act will enable a more efficient process, under specific circumstances, for the registration of generators rather than licensing.

The mineral resources and energy minister, Gwede Mantashe, revealed this during an address to the national council of provinces (NCOP) on the 2019 Integrated Resource Plan.

The minister added that, once the revised Schedule 2 has been agreed to, after concurrence from NERSA, “most of the municipal generation options under “Distributed Generation” would be enabled to close the energy gap caused by deteriorating Eskom plant performance”.

He confirmed that this would mean that generation plants may only require registration and not licensing.

Distributed generation can include biomass, biogas and municipal waste.

Other issues raised with the NCOP include that new investments will need to be made in more efficient coal technologies to comply with climate and environmental requirements, additional nuclear capacity will be procured at a pace and scale that will not negatively impact on the economy, exploration to assess the magnitude of local recoverable shale and coastal gas is being pursued and partnerships are being developed for joint exploitation and beneficiation of natural gas within the SADC region.

The minister also indicated that he intends making determinations regarding “Short Term Levers to close the ‘Short term capacity and energy gap’ in line with the column under the IRP Table headlined ‘Distributed Generation’”.

He pointed out that municipalities and provincial government, with plans to develop their own generation plants, are advised to engage national treasury prior to making any commitments regarding power purchase agreements to ensure that all necessary prescripts are complied with.

Meanwhile, in a statement, the mineral resources and energy department has announced that petrol (both 93 ULP and LRP) will increase by twenty-two cents per litre with effect from 4 December 2019.

The main reason for the petrol price increase is that the average Brent Crude oil price increased from 59.72USD to 62.68USD per barrel during the period under review.

A decrease in diesel prices is due to seasonal decline in demand and sufficient refinery supplies. Weak domestic diesel demand in India also resulted in larger-than-usual diesel flows into the global market.

Other fuel price adjustments include:

• Petrol (both 95 ULP and LRP): twenty-two cents per litre (22.00 c/l) increase;
• Diesel (0.05% sulphur): fourteen point nine five cents per litre (14.95c/l) decrease;
• Diesel (0.005% sulphur): fifteen point nine five cents per litre (15.95c/l) decrease;
• Illuminating Paraffin (wholesale): seventeen point nine five cents per litre (17.95c/l) decrease;
• SMNRP for IP: twenty-four cents per litre (24.00 c/l) decrease;
• Maximum LPGas Retail Price: one hundred and two cents per kilogram (102.00 c/kg) increase.