Nersa approves methodology on piped-gas

"The implementation of the maximum price methodology will ensure that Nersa exercises its regulatory oversight on piped-gas prices, and ensure fairness and transparency in the pricing of piped-gas in South Africa," said the regulator on Tuesday, 31 July 2012.

The regulator said it believed that this methodology would assist in ensuring certainty of gas prices to potential investors and market participants, as well as facilitate entry into the market.

"These findings on inadequate competition will enable the Energy Regulator to implement its methodology to approve the maximum price of gas to be charged to distributors and all classes of consumers as stipulated in section 21(1)(p) of the Gas Act, 2001 (Act no. 48 of 2001) ('the Gas Act')."

The methodology to approve maximum gas prices came into effect on 1 July 2012 with the regulator to review the inadequate competition assessment every two years to assess whether or not the current market conditions have changed.