New Licence Fee for Electricity Generators

The energy department has announced a new licence fee to be paid by the generators of electricity in South Africa.

In a notice published in the Government Gazette, the department indicates that a levy of 0.0047c/kWh must be paid by licensed electricity generators to the National Energy Regulator of South Africa.

The notice is published in terms of section 5(b) of the Electricity Act of 1987.

A licence is needed when a generator of electricity seeks to connect to the Eskom distribution network.

The new levy will apply from 1 April 2012 until 31 March 2013.

Section 5(b) was the only part of the act not repealed by the Electricity Regulation Act of 2006.

Section 5b focuses on the sources of funds for NERSA.

Licence fees are one of the recognised sources, the others being donations or contributions and interest on investments.

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