The organization’s ongoing tax abuse (OUTA) still emphasizes that NERSA failed to act in the interest of South Africa. This is because it failed to consider that the deal between NERSA Karlpower won’t resolve the power cuts.
On 21 September 2021, NERSA approved the generation license application for several projects under the Risk Mitigation Independent Power Producer Procurement Programme (RMI4P), including the application for the three floating Karlpowership projects, along with the charge rate for all seven.
However, OUTA found this unacceptable that the NERSA approves the generation license, but it failed to provide the public with reasons immediately.
OUTA did argue that they want to see the National Energy Regulator(NERSA) reasons for approving the Karlpowership generation license.
“The Karpowership license application is incomplete, so NERSA should not even be considering them, outa calls on NERSA to reject the Karpowership license applications” OUTA stated. Last year the OUTA had submitted a formal public comment to NERSA opposing the Karpowership license.
OUTA finds it inexplicable that NERSA granted the Karpowership licenses while there are so many questions over the process and the Karlpowership projects.
- The environmental authorization has been refused by the Department of Forestry, Fisheries and the Environment (DFFE)
- An internal appeal process by Karpowership is still underway challenging the decision by DFFE.
- Absence of a fuel supply agreement.
- Absence of a fuel pipeline license.
- Absence of port authorization.
- Eskom has not agreed to enter into a power purchase agreement.
- A legal challenge is underway alleging failure of due process, corruption, and nepotism that will only be heard by the court in early December 2021.
Today Outa has submitted a legal challenge at Pretoria high court against NERSA Karpowership licenses,
Outa says NERSA has failed to act in the interests of South Africans and did not consider the Karpowership 20-year emergency contracts will not resolve rolling blackouts.
The controversial deal has been slammed by opposition parties, NGOs, and environmental groups and this will cost south Africa 280 billion rands over two decades.
Eskom has a sort of indemnity from the NERSA agreement in case of any inverse outcomes. Losing bidder DNG POWER HOLDING is appealing a lawsuit that alleges government officials acted corruptly in awarding the tender
Eskom has not agreed to enter into a power purchase agreement.