The National Energy Regulator of South Africa (Nersa) will today hold a public hearing on guidelines for electricity reseller tariffs.

In April, the regulator released a consultation paper on the Guidelines for Electricity Resellers Tariff in South Africa for public comment.

According to this paper, Nersa decided to develop a reseller/traders tariff instead of the regulatory framework of electricity resale following amendments to the Electricity Regulation Act.

A reseller is defined as an “unlicensed buyer of electricity from a licensed distributor for the purpose of selling it to end users within the area of distribution of such distributor at the approved tariff of such a distributor.”

In October 2011, the regulator held six regional stakeholder workshops on the guidelines. Additionally the guidelines were drawn up after complaints by customers’ complaints on the activities of resellers.                           

Nersa’s mandate is to regulate the electricity, piped-gas and petroleum pipelines industries in terms of the Electricity Regulation Act, 2006 (Act No. 4 of 2006), Gas Act, 2001 (Act No. 48 of 2001) and Petroleum Pipelines Act, 2003 (Act No. 60 of 2003).