Eskom has welcomed the decision by the National Energy Regulator of South Africa [Nersa] to issue its wholly owned subsidiary, the National Transmission Company South Africa [NTCSA], with a licence to operate the transmission system.
The power utility said on Monday the legal separation of Eskom into three entities — namely generation, distribution and transmission — is a strategic objective and key aspect of Eskom’s turnaround plan envisaged in the department of public enterprises’ “Roadmap for Eskom in a reformed electricity supply industry”.
Eskom said the transmission licence decision marked a significant milestone in the legal separation process of the transmission division.
It said the granting of the requisite operating licences to NTCSA was one of the key dependencies required to enable the operationalisation of the transmission company.
The licence, associated licence conditions and reasons for decision will be issued by Nersa in due course.
Eskom said NTCSA has also applied for a trading licence and an import/export licence, which Nersa is considering.
In its announcement on Friday, Nersa said the NTCSA is envisioned to be an independent transmission system operator incorporating, among others, the non-licensable but integrated functions of network provision, system operation and system planning.
Nersa said the NTCSA’s independence is an important signal to all stakeholders, including investors, that they will have non-discriminatory access to the transmission system.
“Further, the NTC is responsible for ensuring grid stability, to which end, it is allowed to buy and sell power, but not for profit and perform the after key integrated roles to ensure the integrity of the interconnected power system,” Nersa said.
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Eskom welcomes Nersa’s green light for its transmission company
Image: 123RF/ninefoto
Eskom has welcomed the decision by the National Energy Regulator of South Africa [Nersa] to issue its wholly owned subsidiary, the National Transmission Company South Africa [NTCSA], with a licence to operate the transmission system.
The power utility said on Monday the legal separation of Eskom into three entities — namely generation, distribution and transmission — is a strategic objective and key aspect of Eskom’s turnaround plan envisaged in the department of public enterprises’ “Roadmap for Eskom in a reformed electricity supply industry”.
Eskom said the transmission licence decision marked a significant milestone in the legal separation process of the transmission division.
It said the granting of the requisite operating licences to NTCSA was one of the key dependencies required to enable the operationalisation of the transmission company.
The licence, associated licence conditions and reasons for decision will be issued by Nersa in due course.
Eskom said NTCSA has also applied for a trading licence and an import/export licence, which Nersa is considering.
In its announcement on Friday, Nersa said the NTCSA is envisioned to be an independent transmission system operator incorporating, among others, the non-licensable but integrated functions of network provision, system operation and system planning.
Nersa said the NTCSA’s independence is an important signal to all stakeholders, including investors, that they will have non-discriminatory access to the transmission system.
“Further, the NTC is responsible for ensuring grid stability, to which end, it is allowed to buy and sell power, but not for profit and perform the after key integrated roles to ensure the integrity of the interconnected power system,” Nersa said.
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Image: 123RF/ninefoto
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