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ELECTRICITY GENERATION LICENCING EXEMPTIONS

Michael Jackson, Corporate & Natural the publication, in the Government transmission code, or any other
Resources, Partner, Cox Yeats Attorneys Gazette of 2 September 2022, of code approved by the Electricity
draft regulations. Comment on the Regulator.
resident Ramaphosa draft regulations should have been The limit of 100MW has been
announced in his address submitted within 30 days, that is by lifted completely. This means
Pof 25 July 2022 that in 2 October 2022. that there is no limit on the
order to end loadshedding it was Section 7 of the Electricity operation of a generation facility
urgently necessary to add more Regulation Act of 2006 (the where:
capacity to the grid. This would
be achieved by accelerating Electricity Act) states that a person (a) the generation facility is
greater private investment in may not operate a generation operated to supply electricity to
generation capacity. transmission or distribution one or more customers and there
facility, import or export is no wheeling of that electricity;
In 2021 the licencing threshold electricity or be involved in the (b) the generation facility is
was increased to 100MW. trading of electricity without operated to supply electricity
Following the success of this a licence, unless the activity to one or more customers by
reform and the enthusiasm shown is exempt from a licence in wheeling, and the generator
by the private sector Ramaphosa accordance with Schedule II. has entered into a connection
announced that he would be The draft regulations propose agreement with the holder of
removing the licencing threshold to amend Schedule II. Schedule the transmission or distribution
for embedded generation II sets out which activities are licence in respect of the power
completely. All new generation exempt from the obligation to system over which the electricity
projects would not require is to be wheeled; provided that
licences, but would still have to apply for and hold a licence. the generation facility has a
be registered with the Regulator The activities exempt from connection point but does not
and comply with the technical licencing are no different from export nor import any electricity
requirements for grid connection the activities set out in the notice onto or from the transmission or Michael Jackson
and environmental legislation. which previously applied. It is distribution power system.
still not necessary to obtain a
It was recognised that the The term “connection point” is special legislation contemplated The commitments made by
State needed to act decisively licence to generate electricity if not defined (either in terms of the by President Ramaphosa President Ramaphosa in his
and speedily, and that special the facility is not connected to old regulations or the proposed to expedite the legal and address to the nation of 25 July
legislation would be tabled on an the grid. new regulation), but we assume regulatory obstacles has not yet 2022 need to be implemented. 
expedited basis to address the legal What is new is the list it is meant to be a reference to been introduced.
and regulatory obstacles to new of activities which do not “point of connection” which
generation capacity. As an interim require a licence where there refers to being connected to the It is already more than two T: +27 (0)31 536 8512
measure certain regulatory is a connection to the grid. distribution or transmission months since the address to the E: mjackson@coxyeats.co.za
W: www.coxyeats.co.za
requirements would be waived or New identified activities system. nation. Loadshedding continues
streamlined where possible and do not require a licence but and is recognised as the major
Whilst the need for licencing
within existing legislation. must comply with the code as contained in the draft obstacle to future economic
The first leg to this process was and be registered. The code regulations has fallen away, the growth.
is the distribution code, the

PIETERMARITZBURG AND MIDLANDS CHAMBER

OF BUSINESS AWARDS 2022

n just over a month, achievements of the chamber’s professional and state-owned members who establish a track individual may enter on their
the Pietermaritzburg top companies. The gala event enterprises - in addition to the record of merited achievement own initiative.
Iand Midlands Chamber at the Royal Showgrounds recognition for the top medium over and above the median Companies and individuals
of Business will present the on Friday, 11 November will enterprise, small business, level. Accordingly, invite have until Wednesday,
2022 Business Awards at its recognise eight awards. champion entrepreneur, nominations/entries from
scintillating annual banquet. franchisee of the year, and anyone within the PMCB 19 October to submit their
Sponsored by Investec, the The awards on offer include social enterprise of the year. membership are invited to applications. 
awards and banquet is one of four Business of the Year nominate a company, an entity
the highlights on the city’s accolades - manufacturing, The Chamber’s awards or an individual as the case may For more information visit
calendar that pays tribute to the services sector, retail and programme aims to recognise be, or a company, an entity or www.pmcb.org.za

Business of the Year 2019 (manufacturing): Brink Towing Systems All the winners of the 2019 event

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