Coal transporters ask court not to sign deals with independent power producers

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Eskom's deals with independent power producers came under scrutiny on Monday when the Coal Transporters Forum asked the high court in Pretoria to prevent the the parastatal from signing any agreements with the producers.

The matter was set down to be heard over two days, but it was finalised in less than two hours on Monday. Judgment has been reserved.

While the forum wanted to interdict Eskom from signing the power purchase agreements, it did not ask the court to review the decision by Nersa in granting generation licences to the IPPs. The forum also did not challenge the determinations issued by the minister of energy in 2011 and 2012, which outlined South Africa's new generation capacity procurement for the immediate future. This meant that the forum could not make arguments on whether IPPs should be part of the country's energy mix at all.

In its affidavit filed last year, the forum said the agreements between Eskom and the IPPs came at a time when electricity consumption was showing a decline of 1% for 2016/2017, and when Eskom had announced a surplus of 5,600MW‚ including an operating reserve of 2,000MW. Alwyn Rossouw SC, for the forum, on Monday insisted that there was no decision taken by Nersa granting generating licences to the IPPs on the court record.However, Wim Trengove SC, for the IPPs, said the forum sought to interdict the conclusion of the purchase power agreements.

 

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Coal transporters ask court not to sign deals with independent power producersEskom's deals with independent power producers came under scrutiny on Monday when the Coal Transporters Forum asked the high court in Pretoria to prevent the the parastatal from signing any agreements with the producers.
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