Cape Argus

Outa challenges ‘secrecy’ of Nersa’s Karpowersh­ip ruling

- KRISTIN ENGEL kristin.engel@inl.co.za

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.

 ?? HENK KRUGER AFRICAN NEWS AGENCY (ANA) ?? A PROTEST in Saldanha a few years ago against Nersa’s licensing of Karpowersh­ips.
HENK KRUGER AFRICAN NEWS AGENCY (ANA) A PROTEST in Saldanha a few years ago against Nersa’s licensing of Karpowersh­ips.

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