Only 5% of total electricity traded in the area is in the short-term power sector, with rates established by the seller and administered by SAPP, and the remaining is exchanged through bilateral long-term contracts with fixed taxes.
The power pool is however trying out a more competitive procedure, where prices will be established on demand and supply basis between the utilities in the nations where SAPP functions.
The new system could also witness the induction of independent power producers and other players.
Chikova said “We want to move to a level where we can introduce real time trade of electricity. It will reflect the true price of electricity and will help investments to come in, both in transmission and generation.
He added that the system is likely to go live at the beginning of October 2009.
South Africa is the major producer in the SAPP, and a key exporter in the SAPP framework, while other nations in the region, including Mozambique and Zambia export excess power to power-deprived nations such as Namibia and Zimbabwe.
East Africa is establishing a similar power pool where nearly eight nations intend to connect their power grids.
Kenya has had a long-standing connection with Uganda, and is on the brink of entering into an agreement to link its grid with Ethiopia, which is itself in negotiations to connect its grid to Sudan.
East Africa’s power pool is likely to become operational by 2015, and would subsequently link to SAPP by 2020.
