South Africa’s Nersa Approves Sasol Gas Maximum Pricing Structure Through 2026
The National Energy Regulator of South Africa (Nersa) has approved Sasol Gas’s application for maximum gas pricing from July 1, 2025, through June 30, 2026, following a comprehensive review of the company’s pricing structure. The decision establishes a maximum gas price of R87.04/GJ/y for end-user customers and R82.69/GJ/y for third-party traders and resellers for the initial quarter, with quarterly adjustments based on verified acquisition costs.
However, Nersa rejected Sasol Gas’s request for a clawback of R1.80/GJ/y for the difference between approved maximum gas prices and actual charges during the July-December 2023 period. The regulator also declined to approve the proposed trading cost level, stating it was overstated and included unjustified costs related to the clawback application.
The approved pricing structure includes several key provisions designed to ensure market fairness and regulatory oversight. Third-party traders and resellers must receive a minimum 5% discount from the maximum gas price, while quarterly price adjustments will be implemented with a three-month lag through June 2026. Sasol Gas must provide quarterly cost and pricing information to Nersa for ongoing monitoring and approval processes.
Nersa emphasized that the approved maximum gas pricing represents a significant step toward ensuring fair pricing, affordability, and sustainability in the piped-gas market. The regulator noted that the structure mitigates limited competition concerns while allowing licensees to recover costs and promoting industry development through affordable gas access.
Source: engineeringnews.co.za