BUSINESS NEWS - The National Energy Regulator of South Africa (Nersa) felt it necessary to respond to a social media post claiming its chair, Thembani Bukula, holds interests in private companies that would benefit greatly if he uses his position at Nersa to push through increases in the price of electricity.
Shared thousands of times, the post reads:
“Wait for it. Thembani Bukula, the Chairperson of Nersa is also the CEO of PowerX South Africa, first private energy trading company.
He is also the non-executive director of Mahube Infrastructure, which has 5 independent power producers contracts (2 wind farm and 3 solar farms).
“Who benefits the most when Nersa increases tariffs by 32% over next 2 years? It is such a massive conflict of interest that the Nersa decision to grant Eskom tariff increase must be declared unlawful and immediately be withdrawn by Nersa.
“Cabinet ministers must be grilled for allowing Thembani Bukula appointment as chairperson of Nersa without doing any background checks for conflict of interest.”
Misleading
Nersa says in its response that the comments are incorrect and misleading, and there is no conflict of interest.
“He resigned from his position as non-executive director of Mahube Infrastructure upon his appointment as Nersa chairperson. The law requires that upon appointment every part-time regulator member (board member) must disclose to the Minister of Mineral Resources and Energy his (or her) pecuniary interest in any company (firm or association) engaged in the electricity, piped-gas and petroleum pipelines industries.
“Mr Bukula, as part-time regulator member, has duly complied in this regard and did declare his interests before taking over his position,” it said.
Mahube Infrastructure is listed on the JSE, and issued a Sens announcement on 14 September 2022 stating that Bukula had resigned as a director.
