Revealed in December 2016, When the amended Electricity Regulation Act (ERA) comes into force, it should regulate using small scale electricity generators by requiring registration with the National Power Regulator of South Africa (Nersa).
This is in keeping with Lizel Oberholzer and Jarrett Whitehead, attorneys at Norton Rose Fulbright, who say that the regulation will likely have far-reaching results, as private use of small scale Solar Generator For Sale In Pakistan has elevated dramatically in South Africa.
“It has been reported that private electricity generation from Solar Generator For Sale In Pakistan alone has elevated from 35MW in 2015 to 159MW in 2016,” mentioned Norton Rose Fulbright.
“Earlier than parliament, the Division of Power expressed concern with the lack of income that municipalities and Eskom are experiencing because of elevated private generation of energy. These considerations have been echoed by Nersa, which supported the presentation.”
In December 2016, the “Draft Licensing Exemption and Registration Notice” expresses the minister of power’s intention to exempt various classes of generation services and electrical resellers from the requirement to hold a licence below the ERA.
Underneath these regulations, instead of requiring a licence, listed activities will should be registered with Nersa.
At present any generation plant operated for demonstration or for ‘own use’, which isn't linked to the grid, is excluded from the licensing requirements below the ERA.
“The notice offers that listed generation activities, including those beforehand exempt from licensing requirements, have to be registered with Nersa,” mentioned Norton Rose Fulbright.
“Listed activities include the operation of generation services with an installed capacity of less than 1MW (each linked and unconnected to the grid) and generation services for demonstration functions and for functions of standby or back-up electricity within the event of supply interruption (irrespective of generation capacity).”
“In practice, this would mean that every home, farm, lodge, hospital and shopping center with photo voltaic panels or diesel generators (whether linked to the grid or not) with a capacity of much less that 1MW must register with Nersa.”
Though the ERA offers that registration with Nersa have to be executed on the prescribed application form and have to be accompanied by a registration charge, corresponding regulations prescribing the requirements have but to be published.
The act additionally empowers Nersa to refuse applications for registration below sure circumstances, including where an application is “opposite to the goals of the Act”.
Non-compliance with any provision of the act is a criminal offence which is punishable by a high-quality of up to R5 million and imprisonment for up to 5 years.
“We have no idea what preparations will probably be offered to accommodate present off-grid electricity customers, however it is hoped that such provisions will allow all affected events to register and avoid penalties,” mentioned Norton Rose Fulbright.
“Whereas the full implications of the proposed amendment will only change into clear as soon as candidates start attempting to register with Nersa, if managed poorly, the Division of Power’s attempt to regain some control of off-grid power generation might severely impression many people.”
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