Eskom has written to the signatories of the Government Support Framework Agreement (GSFA) – which guarantees support for the State-owned utility in meeting its obligation to buy electricity from renewable-energy independent power producers (IPPs) – to discuss a possible triggering of government support in light of current constraints to recouping the costs through the tariff and the Regulatory Clearing Account (RCA) mechanism.
The GSFA is the framework agreed to between Eskom and the Ministers of Finance, Public Enterprises and Energy outlining the support that government should provide with regards to Section 34 of the Electricity Regulation Act, which governs the Ministerial determinations that facilitate the procurement of IPP capacity. It also outlines the processes to be followed in providing government support in a situation where Eskom is unable to meet its obligations as the single buyer.
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The GSFA is the framework agreed to between Eskom and the Ministers of Finance, Public Enterprises and Energy outlining the support that government should provide with regards to Section 34 of the Electricity Regulation Act, which governs the Ministerial determinations that facilitate the procurement of IPP capacity. It also outlines the processes to be followed in providing government support in a situation where Eskom is unable to meet its obligations as the single buyer.
Read more....
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