Eskom says it is preparing to take the National Energy Regulator of South Africa (NERSA) to court for breaching its own rules by approving four new electricity trading licences for Africa GreenCo, Green Electron Market, CBI Electric Apollo and Discovery Green.

The power utility says NERSA's approval of the licences, during the regulator’s public meeting on October 29, ignores formal objections to allowing more than one licence for services in the same area while the necessary trading rules for the industry are still being developed.

In July, Eskom demanded that NERSA rejects applications for private trading in energy production. This objection emerged during virtual hearings by NERSA regarding generation, trading and import-export licences for independent power producers.

In a statement, Eskom says it has instructed attorneys to initiate legal proceedings in the High Court. The power utility says the trading licences were approved without the necessary trading rules, as acknowledged by NERSA during deliberations.