Draft electricity pricing policy stresses principles of cost-reflectivity and standardisation

The draft Review of Electricity Pricing Policy (EPP), which has been published for public comment, seeks to provide guidelines to the National Energy Regulator of South Africa (Nersa) for a standardised, non-discriminatory approach to electricity pricing in a context of an electricity supply industry “rapidly transitioning” away from its monopoly structure to one that is market based. The document, the release of which was approved by Cabinet last week, was Gazetted by Mineral Resources and Energy Minister Gwede Mantashe on February 10, with a 30-day comment period.