NERSA AND KARPOWERSHIPS DEFEND THEIR LICENCES IN OUTA’s LEGAL CHALLENGE, WHILE ESKOM STANDS ON THE SIDELINES
On 26 April 2022, OUTA filed legal action aimed at blocking the planned 20-year Karpowerships’ energy deal.
OUTA filed an application in the Pretoria High Court, calling for the decision by the National Energy Regulator of South Africa (NERSA) to grant the Karpowerships generation licences to be reviewed and overturned. The respondents are NERSA, the Karpowerships, the Minister of Mineral Resources and Energy, and the Minister of Forestry, Fisheries and the Environment.
NERSA and the Karpowerships have filed notices of intention to oppose the application. Eskom is not opposing it but instead filed a notice of intention to abide by the court’s decision. Eskom’s neutral approach is worth noting as it will have to buy the power if the deal goes ahead.
There has been no response from either ministry.
A court date has not yet been set.
The Karpowerships were named as preferred bidders by the Department of Mineral Resources and Energy in the Risk Mitigation Independent Power Producer Procurement Programme. The department wants 1220MW of generation power on a 20-year contract, which has been estimated as costing more than R200 billion. OUTA opposes this as not in the interests of South Africa.
More about OUTA’s action is here.