SAPVIA talks to the DoE
4 April 2011: Chris Haw of SAPVIA spoke telephonically to Mr Aphane from the DoE this evening. A summary of the outcomes of the call are:
- DoE are concerned that if there is an over-subscription of MW to the RFP that they will not have enough criteria (which they can legally defend in the case of objections) to properly procure.
- They are also concerned that people would use the fact that they did not procure “within the law” i.e. PFMA to sue in the case that their projects were not awarded tariffs.
- They are also concerned that banks are not happy with the current cost recovery mechanism which allows for only 1025MW.
- DoE advise to “ignore” the NERSA consultation document.
- Mr Aphane stated they would procure based on the fixed price, later however, he said they might need to use price to procure projects above and beyond the 1025MW in REFIT 1.
- DoE said they had been urged to consult with us (industry) before making decisions on how the program should be altered.
- He said DoE were committing to have the RFP documents released within one month from now.
- New regulations defining the process of procurement would be published next week.