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Legal Advice puts REFIT in doubt

Business Report Online

27 June 2011: There was now some doubt whether the National Energy Regulator of SA (Nersa) could set a bound tariff which renewable energy companies would pay to Eskom following legal advice received by the SA Wind Energy Association from the Island Group of advocates, Ompi Aphane, the acting deputy director-general of the Energy Department, said on Friday.

Wim Trengove, the state counsel, noted that the Treasury had suggested that the renewable energy feed-in tariff (Refit) scheme was unlawful – that it did not comply with the competitive bidding requirement of the constitution and with the Preferential Procurement Policy Framework Act and that Nersa did not have the power to set a tariff to be charged by an independent power producer to Eskom.

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