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SA’s energy regulator exposes lack of compliance by municipal licensees

2 September 2013 – The National Energy Regulator of South Africa (Nersa) reports that four of its officials audited 18 municipal electricity distribution licensees over the 2011/12 and 2012/2013 financial years, and the results have been unsatisfactory. The objectives of the audits were to determine and ensure compliance to all the licence conditions governing the electricity business operations and to ensure that the quality of service and supply does not decline.

The assessments covered financial matters, strategic planning, asset management practices, quality of supply and service, key network operation and information technology, organisational tactics and the condition of the network.

Nersa’s findings overall on the 18 licensees were, in terms of network condition a few licensees received a reasonable rating on some factors, but the overall findings were that the majority of licensees did not comply with most of the distribution licence conditions. In addition, Nersa says that the auditors experienced a serious lack of cooperation from most of the licensees in terms of preparation for the audits and providing comment on the draft reports.

The report is available on the AMEU website at http://www.ameu.co.za/library/industry-documents/nersa/