The National Energy Regulator of South Africa (Nersa) felt it mandatory to reply to a social media put up claiming its chair, Thembani Bukula, holds pursuits in personal firms that might profit vastly if he makes use of his place at Nersa to push by way of will increase within the worth of electricity.
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Shared hundreds of occasions, the put up reads: “Wait for it. Thembani Bukula, the Chairperson of Nersa can be the CEO of PowerX South Africa, first personal vitality buying and selling firm. He can be the non-executive director of Mahube Infrastructure, which has 5 impartial energy producers contracts (2 wind farm and three photo voltaic farms).
“Who advantages probably the most when Nersa will increase tariffs by 32% over subsequent 2 years? It is such an enormous battle of curiosity that the Nersa resolution to grant Eskom tariff improve have to be declared illegal and instantly be withdrawn by Nersa.
“Cabinet ministers must be grilled for allowing Thembani Bukula appointment as chairperson of Nersa without doing any background checks for conflict of interest.”
Misleading
Nersa says in its response that the feedback are incorrect and deceptive, and there’s no battle of curiosity.
“He resigned from his place as non-executive director of Mahube Infrastructure upon his appointment as Nersa chairperson. The regulation requires that upon appointment each part-time regulator member (board member) should speak in confidence to the Minister of Mineral Resources and Energy his (or her) pecuniary curiosity in any firm (agency or affiliation) engaged within the electricity, piped-gas and petroleum pipelines industries.
“Mr Bukula, as part-time regulator member, has duly complied in this regard and did declare his interests before taking over his position,” it mentioned.
Mahube Infrastructure is listed on the JSE, and issued a Sens announcement on 14 September 2022 stating that Bukula had resigned as a director.
“Mr T Bukula advised the board that, following his appointment as chairperson of the National Energy Regulator of South Africa, he would not make himself available for re-election to the board at the AGM in terms of the company’s memorandum of incorporation and will consequently retire as independent non-executive director and member of the audit and risk committee of the company, with effect from 21 October 2022,” is alleged.
Nersa says in its assertion that Bukula does not stand to learn from any selections taken by the regulator, and that he’s not solely liable for figuring out electricity costs.
“The energy regulator board consists of nine members that make decisions on applications from Nersa licensees, including Eskom. The decisions of the regulator are solely based on the thorough analysis of the application, as well as facts and evidence presented to the energy regulator.”
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Bukula confirmed this personally to Moneyweb.
“The determination of the electricity price is based on the Electricity Regulation Act and the MYPD [multi-year price determination] methodology,” he says.
“The decisions of Nersa are [made] by the nine members of Nersa, not one person. I am the chairperson of Nersa and I communicate the decisions of Nersa.”
The multi-year worth willpower methodology relies on the speed of return and incentive-based rules, by way of the introduction of the transmission and distribution service incentive schemes and the vitality effectivity demand facet administration schemes, in accordance with data equipped by Nersa.
PowerX
Bukula continues to be CEO of PowerX which describes itself as SA’s first licensed vitality buying and selling firm.
It buys electricity from renewable vitality sources and largely sells it to clients that particularly want one of these energy to earn greenie factors.
Bukula says PowerX does not profit from electricity worth will increase.
“The ‘Use of Systems’ [or wheeling fees] that PowerX pays will increase at whatever rate Eskom will determine, thus reducing PowerX’s profitability,” he says.
Listen/Read: Eskom technology enterprise wants personal funding – PowerX CEO [Feb 2019]
Bukula says PowerX should buy from any licensed and registered energy producer and promote on to a buyer – if the facility plant is related on to the shopper.
If the facility plant is not related on to the shopper, the corporate must get approval from the community proprietor/operator to make use of its system at authorised charges.
Can PowerX protect an organization from load shedding?
“Yes,” says Bukula, “if the customer’s point of connection can be discriminated from other customers, which is not always possible.”
PowerX advertises that it’s a platform for impartial electricity producers (IPPs) to promote their energy. “We buy electricity from a variety of energy producers – spanning all renewable vitality technology applied sciences – and promote to a broad base of shoppers within the industrial and industrial sectors.
“Power procured derives from [IPPs] across the country and we tailor the Power Purchase Agreements (PPAs) to suit each project. These PPAs are anchored by the agreements we sign with municipalities which allow us to use their distribution system to wheel power over their network,” in accordance with PowerX.
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It provides that its platform assists municipalities of their drive to attain a greener setting and energy independence.
“We help develop the relevant municipalities’ renewable energy landscape to enable the independent supply of renewable energy to their respective large economic contributors and small to medium businesses alike,” it says.
Recent press releases point out that PowerX largely conducts enterprise with Nelson Mandela Bay Municipality and assists the municipality in reaching profitable commerce of inexperienced energy.
“PowerX is an aggregator of clean energy and sources power from different green technologies from all over SA and imports it into Gqeberha,” it says.
“PowerX additionally sources energy from inside mills which embrace a big wind energy producer, in addition to over 40 micro-scale photovoltaic photo voltaic services.
“These facilities contributed to over R150 million in capital investments into the local municipality. This also ensured other future revenues, cost savings and new permanent jobs in the Bay area.”
PowerX will probably be facilitating the growth of technology services inside the borders of the municipality by an additional 25 megawatts (MW), which can improve the capital funding to R650 million.
