The National Energy Regulator of South Africa (NERSA) has conducted its first tribunal sitting to enforce compliance in the electricity sector, marking the regulator’s first use of its formal tribunal powers under Section 18 of the Electricity Regulation Act of 2006, as amended.
The tribunal convened on December 18 to hear non-compliance matters against electricity licensees that breached licence conditions and National Rationalised Specifications standards. The cases arose from NERSA compliance audits, which also identified unlawful implementation of electricity outages and contraventions of Electricity Regulation Standards.
“NERSA has issued non-compliance notices and demands affected licensees take remedial action within two calendar months from the date of the notice,” said Charles Hlebela, Head of Communications at NERSA.
According to the regulator, eight matters were heard on the day. Default orders were granted against five municipalities:
- Saldanha Bay Local Municipality
- Rustenburg Local Municipality
- Ekurhuleni Metropolitan Municipality
- Kareeberg Local Municipality
- Lephalale Local Municipality
Matters relating to Greater Taung, Phokwane and Ndlambe local municipalities were, at the request of NERSA, removed from the tribunal roll. For matters concluded, notices will be issued and served to the non-compliant municipalities, directing them to comply with licence conditions and applicable regulatory requirements within two calendar months.
NERSA’s audits identified persistent and material non-compliance by certain distribution licensees including failure to ring-fence electricity distribution businesses, non-payment of bulk electricity accounts, the absence or non-implementation of maintenance plans, non-compliance with quality of supply and quality of service standards, and failure to meet occupational health and safety requirements.
The regulator warned that failure to comply with tribunal directives may result in escalation to adjudication.
“NERSA may impose administrative penalties of up to R2 million per day for each day a contravention persists until the violation is remedied, as provided in the Act,” Hlebela said.
