The National Energy Regulator of South Africa (Nersa) has commenced with the formal investigation into a complaint lodged by the South African Wind Energy Association (Sawea) alleging that Eskom is in breach of its licence conditions regarding the delay or refusal to sign certain Power Purchase Agreements (PPAs).
In a statement, Nersa said it had appointed the regulator member primarily responsible for electricity regulation to chair the formal investigation in May.
“The panel held its first investigation hearing with the two affected parties (Eskom and Sawea) on September 14. However, the hearing was postponed to September 29, after hearing both parties on the application for postponement brought by Eskom and continued (last Friday). Eskom requested to be given sufficient time to prepare its submission.
“The investigation panel gave both parties five working days to file their submissions. The deadline for submission was close of business on September 21.
"Although Sawea had already filed its written submission with Nersa, it was able to amend or update the submission,” the energy regulator said.
“This process is different from the other processes of the energy regulator as it is a precursor to the energy regulator meeting where a report from this investigation would be tabled in terms of section 32(4) of the ERA.
"In this regard, the investigation hearing is confined to the two affected parties and is intended to allow them to make new or updated submissions to the panel as part of the formal investigation.”
The meeting of the energy regulator at which the report would be considered would be open to the public like any other meeting of the energy regulator.
Sawea lodged a grievance in October 2016 with Nersa regarding Eskom allegedly breaching its licence conditions by refusing to sign the PPAs for the renewable energy Independent Power Producers (IPP) projects, procured over two years ago, in 2015.
Sawea chief executive Brenda Martin said: “We are satisfied that the national regulator has guaranteed to conclude the investigation with due recognition for the urgency of this matter.”
The SA Renewable Energy Council (Sarec) estimates that a combined investor value of R58bn in investment will be unlocked as soon as PPAs are signed.
Over 13 000 jobs will be created during the construction process along, with over 1 900 jobs created in the operational phase.
Eskom did not respond to Nersa’s announcement and referred the Cape Times back to Nersa for comment.