Independent Transmission Operator Issued With License

Harris Marley
Harris Marley

Global Courant

The Energy Regulator has approved that the Transmission Company of South Africa (SOC) Limited (‘NTC’) be issued with a licence to operate a transmission system in South Africa. 

“This is a milestone decision by the Energy Regulator and will immensely contribute in Eskom’s unbundling trajectory,” National Energy Regulator of South Africa (NERSA) Chairperson, Thembani Bukula, said on Friday.

President Cyril Ramaphosa announced at the 2019 State of the Nation Address, that Eskom Holdings SOC Ltd would be unbundled into three wholly owned entities: Generation, Transmission and Distribution.

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“The NTC is envisioned to be an independent transmission system operator incorporating, inter alia, the currently non-licensable but integrated functions of network provision, system operation and system planning.

“The NTC’s independence is an important signal to all stakeholders, including investors that they will have non-discriminatory access to the transmission system,” NERSA said.

The NTC is responsible for ensuring the grid stability and is allowed to buy and sell power, but not for profit.

“However, in terms of section 15(1) of the Act, the NTC will be afforded the opportunity to recover its efficiently incurred costs and a reasonable return on its assets. The Energy Regulator understands that the aforementioned provisions are both within the ambit of the Act and enable the NTC to be operationalised as an independent and reliable transmission system operator,” NERSA said.

The NTC will operate the transmission system and perform the following key integrated roles to ensure the integrity of the interconnected power system (IPS):

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Transmission Network Service Provider (TNSP) System Operator (SO) Transmission System Planner (TSP) Grid Code Secretariat
Independent Transmission Operator Issued With License

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