17 February 2012 – The National Electricity Regulator of South Africa (Nersa) has requested that municipalities be required to register and maintain a database of all small scale (less than 100 kW) embedded generation within their areas and report to the Energy Regulator on an annual basis on a number of statistics related to this generation. At the moment those conditions are guidelines but the intention is to include them in the licence conditions of the municipalities when they are renewed.

Nersa says the reason for this is that the sheer number of installations would pose significant problems for it in terms of the ability to handle the applications that would be received for license or registration. And is it questionable if it was the intention of those who drafted the Electricity Regulation Act for this kind of generation to be licensed or registered by the Energy Regulator. Nersa believes it would be most appropriate that this should be done at municipal level because the municipalities are the most impacted party.

Nersa says that these requirements will facilitate the orderly and sustainable development of the industry and should not add excessively to the regulatory burden as the information is required for the good management of these facilities by the licensees.