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Electricity Regulation Act, 2006 (Act No. 4 of 2006)


Regulatory Rules for Power Purchase Cost Recovery

7. Application


7.1 These rules are to provide a defined assessment framework for recovery of power purchases by the buyer. The aim in this regard is to provide a framework that is sufficiently robust that it can be applied on a consistent basis across a range of project types.


7.2 In applying the principles set out in rule 3, these rules are to cover the following:
7.2.1 Long-term power purchases entered into by the buyer as of the effective date of the rules, where long-term is defined as three (3) years or more whether procured domestically or cross-border;
7.2.2 All PPAs not yet signed by the parties as at the day of the implementation of the rules applicable;
7.2.3 Joint venture/partnership projects between Eskom/buyer and the private producers on condition that the Eskom/buyer is not a major shareholder; and
7.2.4 Unsolicited bids (the conclusion thereof will be done by NERSA).