Question NW1253 to the Minister of Cooperative Governance and Traditional Affairs

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27 June 2017 - NW1253

Profile picture: Mulder, Dr PW

Mulder, Dr PW to ask the Minister of Cooperative Governance and Traditional Affairs

(1)(a) Whether municipalities and Eskom are obliged to apply for licences to supply electricity to South Africa and (b) whether they are regulated by the National Energy Regulator of South Africa in terms of section 36 of the Electricity Regulation Act, Act 4 of 2006; (2) whether municipal authorities, in their task of supplying electricity, are subject to the standard NRS 057:2009, read together with South African National Standard requirements SANS 474:2009; (3) whether electricity suppliers such as a municipal authority and Eskom may make use of unlicensed, uncalibrated and untested electric meters and secondary equipment which cannot guarantee an accurate account, particularly against the background of the Municipal Finance Management Act, Act 56 of 2003, and relevant electricity legislation and regulations? NW1394E

Reply:

1 (a) & (b). Yes, Section 4 of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) provides for the National Electricity Regulator of South Africa (NERSA) to issue licences for generation, transmission or distribution facility and the import or export of electricity to be involved in the trading. Rules as determined by the Regulator specify that anyone owning and operating an electricity distribution facility requires a license from the Regulator.

2 Yes, NERSA as the statutory body that oversees the electricity market, has issued a distribution metering code and a transmission code [grid code] which contains the regulations that require compliance with NRS 057. NERSA has declared compliance with NRS 057/SANS 474 to be a licence condition for all licensees and is therefore a mandatory requirement for the municipalities.

3 No, all electricity suppliers such as municipalities and Eskom must make use of certified equipment which is compliant with the relevant standards used in the metering installation and supply. NRS 057 and SANS 474 set compulsory certification for meters and all the municipalitieis should adhere to such. In terms of calibration standards, new or replacerment components of meters shall be individually calibrated by an accredited calibration laboratory before the installation. Each model of meter shall also be tested to prove that it complies with the relevant standard and accuracy class.

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