The National Energy Regulator of South Africa (NERSA) is a regulatory authority established as a juristic person in terms of Section 3 of the National Energy Regulator Act, 2004 (Act No. 40 of 2004). NERSA’s mandate is to regulate the electricity, piped-gas and petroleum pipelines industries in terms of the Electricity Regulation Act, 2006 (Act No. 4 of 2006), Gas Act, 2001 (Act No. 48 of 2001) and Petroleum Pipelines Act, 2003 (Act No. 60 of 2003). The structure of the Energy Regulator consists of nine members, five of whom are part-time and four are full-time, including the Chief Executive Officer (CEO). The Energy Regulator is supported by personnel under the direction of the CEO.
The mandate of NERSA is derived from legislation governing and prescribing the role and functions of the Regulator
To regulate the energy industry in accordance with government laws and policies, standards and international best practices in support of sustainable and orderly development.
In regulating the three industries, NERSA must adhere to sound principles and approaches to be able to deliver on its mandate and achieve its objectives. Underpinned by NERSA’s legal mandate, NERSA adopted the following internationally accepted regulatory principles to underpin its regulatory approach:
Transparency: Independence from political influence is also desirable to ensure long-term stability of regulatory practices. Avoidance of regulatory capture by some customer groups is also necessary for successful regulation.
Accountability: The Energy Regulator should be accountable for its actions and decisions. Independence must not be confused with the lack of accountability.
Integrity: The Energy Regulator should exercise honesty, fairness and sincerity in the management of the Energy Regulator’s affairs and in all its dealings with stakeholders.
Efficiency: The Energy Regulator should make the best use of resources to further the regulatory objectives by exercising objectivity and commitment to evidence-based strategies for improvement.
Public Interest: The Energy Regulator should endeavour to take decisions in the interest of the public as far as possible.