The National Electricity Regulator (NER) was the regulatory
authority that presided over the electricity supply industry
(ESI) in South Africa. In November 2005, the National
Energy Regulator of South Africa (NERSA)
replaced the NER.
NERSA is responsible for regulating the price of pipeline
gas and petroleum, reducing monopoly in the energy sector, improving
competition and boosting economic growth.
in terms of the National Energy Regulator Act of 2004, is mandated
to regulate South Africa's electricity, piped gas and petroleum
industries and to collect levies from people holding title to
gas and petroleum.
The idea behind a single regulator for the
three industries was to improve efficiency and cut costs. It
is also expected to boost private sector participation in the
As an economic regulator, NERSA will ensure a
level playing field and prevent abuse by monopolies. While legislation
exists to govern the gas and petroleum pipeline industries,
they were previously not subject to control by a regulatory
The regulator is important as it will encourage greater
access and competition in a sector dominated by single major
players: Eskom in electricity, Petronet in petroleum and Sasol
"We are confident that public-private partnerships in these
projects will spur development of industries at the important
industrial hubs," Deputy President Phumzile Mlambo-Ngcuka,
the former energy minister, said at NERSA's launch in November
2005. "The petroleum pipeline and gas regulators will play an
important role. The establishment of a single energy regulator
is critical to the promotion of investment, diversification
of sources of fuel and the need for central coordination of
the energy industry."
For the full report, see southafrica.info.
include issuing licences, setting and approving tariffs and
charges, mediating disputes, gathering information pertaining
to gas and petroleum pipelines, and promoting the optimal use
of gas resources.