The National Energy Regulator of South Africa (NERSA) has approved Sasol Gas’s application for new maximum gas prices for the third quarter while rejecting cost recovery claims and enforcing stricter pricing rules for third-party traders.
The decision, which affects industrial gas users, embedded generators and developers assessing gas-to-power project viability in South Africa’s constrained gas market, sets a maximum price of R82,69/GJ for third-party traders and R87,04/GJ for end-user customers for the period from July 1 to September 30.
NERSA directed Sasol Gas to provide quarterly cost and pricing information and to apply a minimum 5% discount to third-party traders. Adjustments will carry a three-month implementation lag and may be subject to consultation if cost changes are significant, the regulator said. “NERSA may review and subject the price adjustment to a compulsory consultation if there is a significant change in the cost of gas affecting the maximum gas price.”
The regulator declined Sasol Gas’s request for a R1,80/GJ clawback related to 2023/24 pricing, citing “unjustified” cost allocations. The trading cost level applied by Sasol was similarly disallowed with the regulator stating it was overstated and improperly included clawback-related costs.
