The South African Wind Energy Association (SAWEA) has accused power utility Eskom of abusing its position as chief operator of SA’s national grid.

The association said Eskom was favouring its own investment in new power plants, when the power utility refused to enter into power-purchase agreements with independent power producers (IPP).

As a result, the association lodged a complaint with the National Energy Regulator of South Africa (NERSA).

“SAWEA believes that Eskom is acting in direct contravention with government’s policy to diversify the country’s energy mix,” SAWEA CEO Johan van den Berg said in a statement. He added that Eskom’s stance was incompatible with government policy, the law, and its own licence conditions and ministerial determinations.

SAWEA added that it believed Eskom was abusing its position as the chief operator of SA’s grid.

If the power utility is found guilty, SAWEA has requested that NERSA impose the maximum legislated penalty of 10% of Eskom’s annual daily turnover for each day that it continues to delay the programme.

Energy Minister Tina Joemat-Pettersson said that the government remained committed to support the determinations that were already made.

Eskom however, indicated that its choice to not enter into power-purchase agreements with IPPs was based on concerns it had about the cost of doing so. Joemat-Pettersson said these concerns were discussed with government and resolved.

There was not a long list of IPP contracts that Eskom had refused to sign, Eskom spokesman Khulu Phasiwe said. Only one contract remains unsigned and indicated that this would cost the company R63 billion over the next 20 years. Phasiwe added that Eskom will continue to sign contracts because it was “government policy”.