The National Energy Regulator of South Africa has approved the two licence applications required for the operationalisation of the National Transmission Company of South Africa , which is in the process of being established as an independent unbundled division of Eskom Holdings.
At the time, the decision to grant only one of the licences required raised concern that the unbundling could be further delayed, given that all three licences had to be transferred from Eskom for the NTCSA to be operationalised. Nersa said that NTCSA had been granted a trading licence for a period of five years, as a transitional arrangement ahead of the amendment of the Electricity Regulation Act, as well as price review processes.
The five-year trading licence empowers NTCSA to buy and sell electricity from Eskom power stations; independent power producers under section 34 determinations including cross-border electricity imports; and IPP generators under the Eskom Holdings programmes, such as short-term power purchases only to Eskom Distribution.
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