By Umamah Bakharia 

Civil advocacy group Organization Undoing Tax Abuse (OUTA) has filed a legal challenge to overturn energy regulator Nersa’s Karpowership licenses.

Karpowership SA was named one of the preferred bidders in the country’s emergency power program. OUTA  says Nersa failed to look after the interests of the SA economy by granting licenses to Karpowership to generate electricity.

Speaking to Radio Islam, OUTA advocate Stefanie Fick says Nersa’s decision was irrational.

“We taking Nersa’s decision to grant these license on review and [OUTA] is asking the court to intervene and set aside that decision so that Nersa can relook at all the evidence,” says Fick.

Nersa’s decision would mean that Karpowership SA will make dock in Richards Bay, Mtubatuba and Saldanha Bay and plug into electricity grids and produce gas for electricity.

According to Fick, the deal between Nersa and Karpowership is a 20 year partnership.

She argues that the Karpowrship technology does not have the capacity to run as long as 20 years.

“Its always been used as temporary solution in countries where there is disasters,” says Fick.

Experts are warning that this deal will cost consumers with no guarantee that load shedding will end.