Our projects

Since the inception of the company we have worked with a number of clients both regulators and private companies. Some of our key clients include NEDLAC, NERSA, South32, En/Power Trading and Tanzanian regulator EWURA. The advice we have provided has spanned all aspects of the electricity regulation from licensing to cost and tariff modelling.

Selected projects

Assessment of competition in the piped gas market (2018/19)

  • The National Energy Regulator of South Africa (NERSA) is tasked with approving maximum gas prices. However this mandate is dependent on a finding that there is inadequate competition in the South African piped-gas market.
  • Lungiswa Energy together with DNA Economics assisted NERSA in undertaking this assessment. We combined our extensive experience in the South African piped-gas industry and competition economics to prepare the assessment. The outcome of the assessment was a determination that there was inadequate competition in the piped-gas market in South Africa.

Review of Eskom’s business model (2018)

Eskom’s financial stability and performance has been a issue of considerable discussion and debate over the last 15 years. Lungiswa Energy assisted the National Economic Development and Labour Council (NEDLAC) to bring some clarity to this issue by undertaking a comprehensive and critical review of Eskom’s business model including costs, regulatory framework, pricing and funding concerns. This was done by considering the perspective of the three social partners – government, business and labour – that comprise NEDLAC.

Assisting new entrant in the gas to power bid for the RMIPPP (2020/21)

  • In August 2020, the South African government initiated the Risk Mitigation Independent Power Producer Programme requesting proposals for electricity generation from various energy sources.
  • Lungiswa Energy assisted a potential new Independent Power Producer navigating the complex regulatory  licensing and pricing/tariff arrangements for both electricity and gas. The project involved a licensing needs assessment and the preparation of the necessary gas and electricity pricing, tariff and financial viability models. We facilitated liaison with NERSA and developed solutions to the mismatch in statutory timelines in the licensing processes.

Modelling of costs, tariffs and revenue for electricity trading entrant (2020-ongoing)

  • Many South African municipalities are considering alternative electricity suppliers to help mitigate load shedding and lowering the cost of electricity supply.
  • Lungiswa Energy is currently assisting a new electricity trading entrant in developing a municipal revenue neutral and finance complaint solution.
  • This involves extensive modelling of municipal tariffs and revenues and extensive engagements with several municipalities to develop a common understanding of the municipal cost and revenue drivers and to develop a municipal finance compliant solution.

Independent market report on the South African gas market (2018)

  • Understanding market dynamics is critically important for any new entrant into a market.
  • Lungiswa Energy assisted a new entrant into the South African gas market by preparing an independent report on the gas industry in South Africa for inclusion in the company’s prospectus for listing on the Australian Securities Exchange.
  • The report provided an overview of the South African market including an assessment of the potential LNG market.

Other projects & publications

Get expert advice on all aspects of energy regulation

Lungiswa Energy Pty Ltd – Comp Reg No 2017/272673/07 F.B. Sheik, E. Teljeur (Directors)