Gas prices may drop for some users

5 Apr 2013

Smaller users of piped gas might see prices drop soon, according to the National Energy Regulator of SA (Nersa) although larger users may face price increases.

Ethel Teljeur, the Nersa member responsible for piped gas provided some background to the regulator's announcement last week.

"Our assessments show that a very large number of smaller customers have been charged above the [newly approved] maximum price, which is why [their] prices could come down immediately," she said.

Sasol Gas has applied to charge maximum prices for gas in terms of the new pricing structure in the Gas Act.

The prices are intended to set a ceiling above which operators like Sasol Gas cannot charge.

Sasol made its submission to the regulator in December.

Sasol spokesman Alex Anderson says the petrochemical company is waiting for details from Nersa before making any further announcements.

"Once Nersa has published the reasons for its decision and Sasol has had an opportunity to study the details, it will finalise its standard prices," he said.

According to Anderson the actual prices are part of commercial negotiations that Sasol must undertake with its customers,

"All customers will have to migrate to the standard prices, which will require that Sasol concludes new contracts with all its customers," he said.

Teljeur said larger customers - some of which were still paying the prices they were charged linked to coal - might have to pay more in future.

Source: The Times via I-Net Bridge

Source: I-Net Bridge

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