Powerships will cause massive electricity price hike in South Africa — Outa challenges Karpowership licences

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Powerships will cause massive electricity price hike in South Africa — Outa challenges Karpowership

to overturn the National Energy Regulator of South Africa’s decision to award power generation licences to Karpowership.it had approved three generating licences for the Turkish power ship company in September 2021.

It also alleges the regulator failed to provide adequate reasons for its decision and failed to consider that the Karpowership contracts would not resolve load-shedding. “By doing so, it has failed to properly exercise its mandate in terms of the Electricity Regulation Act and fulfil its oversight functions of regulator without the necessary independent checks and balances to ensure that the interests of electricity suppliers are balanced with the interests of customers, the public and the South African economy,” said Fick.

Nersa’s independent consultant also said the ships would not provide significant job opportunities like local power plants, as the company’s own staff and experts would run it. Outa added the power ships were not a simple “plug and play” option for South Africa, with lengthy licencing issues that need to be considered.

 

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