The organization Undoing Tax Abuse (Outa) has filed a legal challenge to overturn the approval of Karpowership’s power generation licences by SA’s National Energy Regulatory Agency.
The floating motor vessels are expected to dock at the ports of Richards Bay, Coega and Saldanha Bay. Karpowership is yet to receive environmental permits from the government. Litigation by an unsuccessful bidder also halted the deal.
On Thursday, Outa said his suit was filed against four-year-old Nersa on Tuesday in the High Court in Pretoria Karpowership companies, the Minister of Natural Resources and Energy, the Ministry of Environment and Eskom.
“We say that Nersa failed to act in the interests of SA, failed to provide adequate reasons and it has failed to take into account that Karpowership’s 20-year contingency contracts will not solve load shedding,” Outa said.
“The ships will take at least a year to provide power to the South African grid – so the rotation that’s something that can help us now is misleading.”
The deal ties the country to a 20-year contract costing more than R218 billion, Outa said.< /p>
“If the Karpowership contract comes about, the electricity price will rise even higher, which will be enormous will have an impact on the pockets of electricity consumers and taxpayers in South Africa,” the organization argues.
Business Day reported r Recently, the Department of Natural Resources & Energy and Energy extended the deadline for finalizing financial agreements for the successful bidders of its emergency power procurement program has been postponed to May.
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