Outa challenges ‘secrecy’ of Nersa’s Karpowership ruling
THERE is a growing concern about how the relaxing of regulations related to electricity generation will affect Karpowership SA’s controversial 20-year gas-to-power projects.
The government believes the emergency power could help alleviate South Africa’s energy crisis but the projects pose increasing legal risks.
Yesterday the Organisation Undoing Tax Abuse (Outa) announced it has lodged an application challenging the National Energy Regulator of SA’s (Nersa) “secrecy” over its decisions to grant generation licences to Karpowership and has taken legal action demanding the full record.
Outa said the secrecy hides the financial implications of the deal, estimated to be more than R200 billion for the proposed 20-year contract.
Outa’s application filed on January 23 in the Pretoria High Court, asked it to order Nersa to provide “a complete, unredacted record” of its decisions to award generation licences for the Karpowership projects.
This action is part of Outa’s main application for the court to review and set aside Nersa’s decisions to award the generation licences. But Nersa provided a heavily redacted record which led Outa to file a notice calling for the full record in terms of the court rules.
Nersa failed to comply, which caused Outa to bring this application to compel. It said the redacted record does not include information on the impact of the rand/dollar exchange rate, licence conditions or charge rates or tariffs. Andri Jennings, Outa’s attorney, said the obligation to make the record available rested with Nersa not Karpowership but “Nersa seems to act in accordance with the dictates of Karpowership instead of independently as is required from the regulator”.
Black Business Chamber secretary general Mntuwekhaya Cishe said: “We welcome Outa challenging Nersa’s secrecy in awarding generation licences to Karpowership. Needed in South Africa today, by all government-aligned entities, is transparency …
“Any secrecy in conducting business by the state and its aligned entities should be rejected,” Cishe added.
Nersa was unable to reply to questions by deadline. The regulator said it would give feedback today.