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ARTICLE · 08 OCTOBER 2004

Regulatory Issues in Energy

Cliffe Dekker Hofmeyr
Cliffe Dekker Hofmeyr
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Cliffe Dekker Hofmeyr

Cliffe Dekker Hofmeyr

Cliffe Dekker Hofmeyr (CDH) is one of the largest full-service business law firms in South Africa,...

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Doing deals in any business sector requires some understanding by principals and their advisors of the regulatory framework.

South AfricaReal Estate and Construction
David Thompson
David Thompson

Doing deals in any business sector requires some understanding by principals and their advisors of the regulatory framework. If regulatory approvals are required, what are the time frames for and probabilities of obtaining these? Does the subject business require a license to operate and is this affected by changes in the identity or control of the owner of the business arising from the deal? What is the risk that regulatory change may limit or destroy the ability of the business to operate or to grow in future? A key requirement for any industry is achieving certainty regarding the structure, powers and functions of its regulator or regulators.

The new National Energy Regulator ("NER") due to be established in early 2005 in terms of the Energy Regulator Bill ("the Bill") currently before Parliament, illustrates some of the problems associated with the establishment of a new regulatory framework.

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