The National Energy Regulator of South Africa (NERSA) has approved Sasol Gas’s maximum price application for the period from July 1, 2026, to March 31, 2028.
NERSA approved a maximum price of R97,31/GJ, excluding value-added tax, for gas supplied to end users during the first quarter of the 2026/27 financial year.
For traders and resellers, the regulator approved a maximum price of R92,44/GJ for the same period. According to NERSA, this reflects the required minimum discount of 5% on the maximum end-user price.
The approved amounts are price ceilings and do not necessarily represent the prices Sasol Gas will charge individual customers.
The maximum price will be adjusted quarterly under NERSA’s approved cost-plus methodology. The calculations will be based on Sasol Gas’s actual gas acquisition costs and volumes with adjustments implemented after a three-month lag, the regulator said. NERSA will monitor and verify the economic and acquisition cost information used in calculating the adjustments.
Sasol Gas will require NERSA’s written approval before implementing an adjustment that would increase the approved maximum price by more than 10% in any quarter. NERSA said this measure intends to subject significant increases to additional regulatory scrutiny.
Each approved maximum price will remain in force until NERSA approves a subsequent maximum price, the regulator said.
Prices beyond March 2028 deferred
NERSA deferred its consideration of Sasol Gas’s proposed maximum prices for the 2028/29 and 2029/30 financial years.
The regulator will continue assessing whether there is adequate competition in the relevant gas market. The outcome will inform NERSA’s consideration of maximum prices for the remaining periods covered by Sasol Gas’s application.
NERSA linked its decision to the anticipated decline in natural gas volumes from Mozambique – commonly referred to as the “gas cliff” – and the transition towards methane-rich gas as an alternative source.
“The changing gas supply environment has implications for gas acquisition costs, supply volumes and the prices ultimately paid by customers,” NERSA said.
“NERSA’s decision therefore seeks to provide regulatory certainty during this transition while ensuring that costs recovered through regulated prices are adequately supported and appropriately treated under the approved methodology,” said Nomfundo Maseti, NERSA’s Full-Time Regulator Member responsible for piped gas regulation.
