Expert advice on NERSA’s review of maximum gas price methodology

The maximum prices that Sasol Gas can charge its customers is regulated by a pricing methodology set by the National Energy Regulator of South Africa (NERSA). 

NERSA’s methodology was challenged by large industrial gas users and by 2019, the Constitutional Court finally issued a judgment confirming that the methodology be set aside. Genesis has been retained by Sasol Gas to provide strategic and economic advice relating to this regulated pricing methodology and its impact.

Genesis has served as an adviser in a number of areas, and has provided extensive assistance relating to various methodology approaches. Using its experience in competition matters, Genesis' work included formulating an economic framework together with a review of policy objectives to determine whether candidate pricing methodologies are appropriate. 

This included ensuring the methodologies catered adequately to the various components of the Gas Act and legislation regarding ensuring the development of the industry, which is crucial for energy security in South Africa.

Genesis has represented Sasol Gas on a number of engagements with NERSA, including multiple public hearings. Genesis continues to provide strategic advice on an ongoing basis pertaining to NERSA’s proposed gas price methodology.