Page 46 - Energize October 2022

VIEWS AND OPINION

i) A reseller must provide information on tariffs to its customers. in resolving the dispute, after which
j) Tariffs must be at rates identical to the approved equivalent tariff of the licensed NERSA’s decision will be final.
distributor. This means that no additional costs such as prepaid vending fees may be c) The licensed distributor (Eskom,
recovered in the electricity tariffs. municipality power distributor) to
k) Resellers may not charge, in addition to this tariff, other electricity costs (even if there is register all resellers and provide
a shortfall – they may also be in contravention to the Sectional Title Act). Therefore, the NERSA with the updates.
tariff rates and tariff structure according to which electricity is resold must be identical
to the approved tariff rates and tariff structure that would have been applicable had the Dispelling some of the myths
customer been supplied with electricity by the supplying licensee. and misconceptions about
l) If the tariff charged is higher the reseller may face civil proceedings. electricity reselling
m) Resellers must submit information as required by the Act and the associated supply/ Recently there seems to be some
service agreement to the licensed distributor. confusion and/or misconceptions in
n) Complaints from end-use customers about tariff, billing or service quality to be first the marketplace about inter alia certain
raised with the reseller (or its agent) and if not resolved then referred to the Licensee aspects associated with electricity
and if not resolved then to NERSA. reselling:
o) A complaint facility must be provided by the reseller.
Electricity resellers have no legal status.
Obligations that the act places on both the licensed distributor and This is untrue because electricity resellers
the reseller and reselling are governed by Schedule 2
The Act places obligations on the Reseller and the licensed distributor that will be enforced of the Act).
through the licensed distributor electricity supply/service agreement i.e., the licensed
distributor must contract that the reseller must comply with the said supply/service Electricity reselling as a process is not
agreement as per the Act. Some of these obligations are: regulated.
a) The licensed distributor must complete a supply/service level agreement with the This is also untrue because electricity
reseller wherein such agreement is inclusive of the bulk selling price to the reseller, the reselling as a process is regulated by
NERSA authorised tariffs (as applicable) that the resellers customers should be paying, Schedule 2 of the Act
and the profit margin that the reseller can make based on the said bulk selling price.
b) The reseller’s power distribution system must comply with the safety standard applied Electricity resellers are not regulated.
by the licensed distributor to its own infrastructure networks. This is untrue because electricity resellers
c) The reseller’s power distribution system will be subject to inspection and approval by are also regulated by the Act.
the licensed distributor.
d) The reseller must comply with all legal requirements and free the licensed distributor Electricity resellers must be or need to be
from all obligations related to the safety of the reseller’s network. regulated:
e) All customers within a development will have the right to request a direct supply (this • To ensure that they provide
will be subject to the licensed distributor conditions). electricity to end users at a price not
f) Resellers must register with the licensed distributor (i.e., a licensed municipality less favourable than the licenced
electricity distributor and/or Eskom). distributor in the area
g) Registration can be completed in a manner deemed fit and acceptable by the licensed • To ensure that end use customers
distributor. are not prejudiced with a higher cost
h) The licensed distributor must report to NERSA: merely because they happen to be
i. Data on all new bulk connections buying from a reseller rather than
ii. Date of registration licensed distributor
iii. Installed capacity • To ensure that the service levels
iv. Name and account provided to end use customers by
v. Stand or erf number resellers are of a similar standard to
vi. Tariff complaints received those provided by licensed distributor
vii. Disputes between reseller and licensed distributor to be referred to NERSA • To ensure that they are not prejudiced
because of having to purchase
The implementation of the act to resellers electricity from a reseller

The licensed distributor will comply with the Act in the following manner:
a) A supply agreement/service level agreement must be signed between the body Electricity resellers cannot make a profit.
corporate, owner of the block of the flats or the Reseller (as its agent) and the licensed Electricity resellers can make a profit.
distributor (includes Eskom, municipality power utility). The electricity reseller buys electricity in
b) Recourse for non-compliance will be referral to NERSA after the licensed distributor or bulk from a licensed distributor (using a
the Body Corporate, Owner of the block of the flats or the Reseller (or its agent) fails bulk supply point) and then the electricity

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