THE MAIN ASPECTS OF THE DRAFT GRID CAPACITY ALLOCATION RULES DISCUSSED IN THIS CONSULTATION PAPER

The main aspects of the draft Grid Capacity Allocation Rules discussed in this consultation paper include the following:

i. Principles of the Grid Capacity Allocation Rules
ii. Connection process requirements
iii. The queuing procedure

NERSA has not yet formed any opinions on the main aspects addressed in this consultation paper. However, it is raising these issues to encourage stakeholders to provide their opinions and input. Stakeholder feedback will assist NERSA in making a well-informed decision.

PRINCIPLES OF THE GRID CAPACITY ALLOCATION RULES

The principle of the rules is that network service providers must allow non-discriminatory access to ensure fair, transparent, equitable and open access to the grid to give effect to the first ready, first served principle.

Documents

• Appendix1_Draft Grid Capacity Allocation Rules
• Consultation Paper for Grid Capacity Allocation Rules

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Question 1: Do you think that the principle of non-discriminatory access should be based on the principle of first ready, first served? Please provide your view. *

Question 2: Do you think the aspects listed as criteria for the connection process below are adequate and relevant? Please provide your view. *CONNECTION PROCESS REQUIREMENTS
The connection process requires an applicant to submit to the relevant NSP proof of project readiness, in the form of:
a) the construction start date;
b) supplementary regulatory approvals and clearances documents;
c) necessary contracts to show that construction is or will be in place, on time;
d) completeness of design;
e) construction duration and reasonableness thereof; and
f) completeness of the financial arrangements.
g) Other: Not listed above.

Question 3: Do you think that the queuing procedure should be transparent to the extent of disclosing who is in the queue and what position the applicant is holding in the queue? Please provide your view. *THE QUEUING PROCEDURE
NSPs must develop their own queuing procedure to address multiple applicants and to ensure that certain applicants do not monopolise the grid. It must also ensure that an applicant does not lose its place in the queue if the capacity is insufficient (while awaiting grid strengthening) by being overtaken by another applicant who might have been at the back of the queue. The queuing procedure developed by NSPs must be transparent enough to disclose who is in the queue and numbers must be allocated to the applicants who are in the queue.

Question 4: In light of section 21(4) of the ERA, do you think it is the responsibility of licensees to develop the Grid Capacity Allocation Rules and submit them to the Energy Regulator for approval in terms of section 4(a)(vii), which states that the Energy Regulator must ‘enforce performance and compliance with this Act and licence conditions imposed by the Regulator in terms of this Act, and take appropriate steps in the case of non-performance or non-compliance’? Please provide your opinion. *LEGAL MANDATE
Section 21(4) of the ERA states that ‘access in terms of subsection (3) must be provided on the conditions set out in the licence of such transmitter or distributor’. This relates to the circumstances under which access must be granted or be refused.

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