The National Transmission Company South Africa (NTCSA) has introduced a streamlined process for handling curtailment claims to improve settlement times for independent power producers (IPPs).
The transmission company said the new approach is already reducing outstanding claims and supporting the ongoing implementation of electricity market reforms.
The value of claims awaiting verification and settlement has fallen by 25%, from approximately R2 billion to R1.5 billion since mid-June, despite additional claims being submitted during the period, the NTCSA said.
A sharp increase in the volume and complexity of curtailment claims during April and May has created temporary bottlenecks in the verification and settlement process, the company said.
To speed up the process, the NTCSA has deployed additional resources, introduced process improvements and begun implementing a new claims management system.
The current backlog of outstanding claims remains on track to be cleared by the end of August, NTCSA Chief Executive Monde Bala said.
“The new process is intended to improve settlement efficiency as part of the ongoing implementation of electricity market reforms,” Bala said.
Curtailment occurs when electricity generators are instructed to reduce output, typically because of transmission constraints or other grid requirements. Under certain power purchase agreements, affected IPPs may be eligible to claim compensation.
The streamlined process is expected to shorten assessment and payment turnaround times for valid claims while maintaining the governance, contractual and financial controls required for claim verification, the NTCSA said. Faster settlements are also expected to improve liquidity for affected IPPs.
The transmission company said it will continue engaging with IPPs and industry associations on the increase in curtailment and the measures introduced to reduce settlement delays.
Eskom currently administers power purchase agreements covering 117 projects with a combined capacity of 10 083 MW. Curtailment is becoming an increasingly common feature of modern power systems and remains an important tool in supporting South Africa’s transition to a more diverse electricity mix, the utility said.
