FUNCTIONS
In terms of the National Energy Regulator Act 40 of 2004, the functions of the Energy Regulator are to:

• issue licences for petroleum pipelines, loading facilities, storage facilities, construction and operation of gas transmission, distribution, liquefaction and re-gasitication facilities, conversion of infrastructure, trading in gas;

• issue licences for the generation, provision, and, within an area determined by it, distribution of electricity;

• gather and store information relating to petroleum pipelines and gas;

• act as mediator or arbitrator in accordance with the provisions of this Act;

• set or approve tariffs and charges in the manner prescribed by regulation;

• monitor and take appropriate action, if necessary, to ensure that access to petroleum pipelines, loading facilities and storage facilities is provided in an expropriate land or any right in respect of land, necessary for the performance of a licensee's functions;

• promote competition in the petroleum pipeline and gas industry;

• promote the optimal use of available gas resources;

• settle customer disputes.

DECISION MAKING
NERSA is a public administrative body which performs a public function and acts as a quasi judicial body. As part of its decision making process, NERSA will be guided by the Promotion of Administration and Justice Act.

Regulatory decisions affect consumers and the public at large, particularly decisions related to tariffs, access to capacity quality of supply, new generation and licence applications. It is a legal requirement that the decision-making process is fair and transparent and that all meetings are held in public. Any decision of NERSA and the evidence, facts and reasons thereto must be available to the public except information that the Regulator regards as confidential, proprietary or commercially sensitive in terms of the Promotion of Access to Information Act.

ADVOCACY ROLE
Utilities such as Eskom, Sasol, etc. cannot increase their regulated rates or alter their conditions of service until NERSA approves the new tariffs. To obtain approval, a utility must demonstrate that such a change is merited. The utility files an application with NERSA to "prove" that an increase is justified. The advocacy role requires that there must be an independent body to represent the side of the consumers during the tariff determination, especially the voiceless consumers.

In most countries, for example the USA, an independent body for consumers will thoroughly investigate all aspects of the utility's application and develop conclusions regarding the merits of the proposals. The independent body supports its conclusions with expert testimony in evidentiary hearings before the regulator. Often, the independent body resolves the cases through negotiated agreements with the utility.