Johannesburg - The National Energy Regulator of South Africa (Nersa) said on Tuesday that its maximum price methodology would remain valid after PG Group and six other companies failed in their high court bid to review the methodology.
PG Group, SAB, Consol Glass, Nampak, Mondi, Distribution and Warehousing Network, and Illovo Sugar SA are customers of Sasol Gas, the dominant player in the South African piped gas market.
Commenting on the court’s ruling, which was handed down earlier this month, the Nersa member responsible for piped gas, Nomfundo Maseti, said on Tuesday: “Nersa will, therefore, continue to implement the current methodology, as well as monitor and enforce compliance with its decisions taken applying the methodology.”
In October 2013, the companies, which are members of the Gas Users’ Group, took Nersa and Sasol Gas to the North Gauteng High Court. They wanted the court to review and set aside the maximum price methodology, as well as Nersa’s March 2013 decision to approve Sasol Gas’s margin and the regulator’s approval of Sasol Gas’s transmission tariffs application for maximum gas prices and trading.