The National Energy Regulator (NERSA) has granted approval for Eskom’s transfer of transmission responsibilities to the National Transmission Company South Africa (NTCSA), marking another significant step in the power utility’s unbundling process.

The approved transfer specifically pertains to Eskom’s duties regarding section 34 Power Purchase Agreements (PPAs) with Independent Power Producers (IPPs). With NERSA’s nod, NTCSA is now entrusted with the role of the buyer in the electricity sector, a move deemed integral to the utility’s restructuring process.

The regulator endorsed the issuance of a cost recovery letter to NTCSA for section 34 IPP projects and the amendment of IPPs’ generation licenses to designate NTCSA as the buyer, effectively replacing Eskom Holdings in this capacity.

Simultaneously, NERSA announced a significant decision regarding the handling of high-profile matters by its subcommittees, particularly the Electricity Subcommittee and the Petroleum Pipelines Subcommittee. The regulator resolved to enhance transparency by no longer withholding crucial details, such as the total percentage of allowed tariff/revenue recommended to the energy regulator for approval in such cases.

“This decision is in keeping with section 8(9) of the National Energy Regulator Act, which mandates that all Energy Regulator meetings must be open to the public,” the regulator said.

Previously, certain information would be withheld until a final decision was communicated to affected parties. However, with this decision, NERSA aims to ensure that, unless constrained by legal obligations, all subcommittees will fully disclose their intended recommendations to the regulator.