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Players in SA’s nascent gas industry are opposed to the energy regulator being given the power to set tariffs and prices for the entire value chain as proposed in the Gas Amendment Bill now before parliament.

It is proposed in the bill that the powers of the National Energy Regulator of SA (Nersa) be increased so that it does not merely have the power to approve maximum prices if it is evident that there is inadequate competition in the market — as in the existing act — but that it will have the power to set maximum prices and tariffs that licensees throughout the sector can charge, including for distribution. Nersa has welcomed the enhanced powers...

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