Energy department commits to transformation of sector

The department of mineral resources & energy (DMRE) gave the assurance on Thursday that it remains committed to the transformation of the country’s energy sector and wants the Electricity Regulation Amendment Bill finalised.

It insisted in a statement that it is not responsible for the delay in the processing of the bill by parliament and the certified bill was submitted to parliament by the office of the chief state law adviser (Ocsla) on Tuesday.

The statement followed a briefing on Wednesday by parliament’s senior legal adviser Frank Jenkins on the parliamentary processes regarding the bill. He said the bill had been transferred to the relevant committees of the National Assembly and the National Council of Provinces for information purposes only. This did not constitute a formal tabling of the bill as required.

Jenkins told MPs it was the minister’s responsibility to introduce the bill into parliament.

His briefing stemmed from the uncertainty over the status of the bill which will establish an independent transmission system operator.

Promulgation of the bill is vital for the impartial access of independent power producers on to the grid and for the crucial expansion of the constrained transmission network. It will accelerate the liberalisation of the energy market and provide a national framework for wheeling (the distribution of electricity between private players).

The transmission system operator will create a fair and transparent platform for the purchase of electricity without the conflict of interest stemming from Eskom being responsible for both generation and transmission.

Mineral resources & energy portfolio committee chairperson Sahlulele Luzipo stressed that if the bill is not formally introduced in September the committee will not have time before parliament rises before the elections to deal with it. This will mean that it will have to be revived by the new administration.

The department’s statement said Business Day’s reporting on the delay in the submission of the bill to parliament was “inaccurate and unverified”.

Business Day’s article referred to speculation that the deliberate delay by minerals & energy minister Gwede Mantashe in submitting the bill to parliament related to the ideological antipathy by sections of the ANC towards the unbundling of Eskom which they mistakenly see as a form of privatisation as well as his reluctance to facilitate the expansion of independent power generation. Mantashe is committed to coal-fired power stations and has dragged his feet in expediting the introduction of independent power producers.

The department said the bill was submitted to parliament in April after having been gazetted as required by the rules of parliament.

“On 5 May 2023, parliament requested the DMRE to resubmit the bill to the Ocsla for final certification after additional inputs from Operation Vulindlela and National Treasury. The DMRE indeed resubmitted the bill to the said institutions on the same day.

 “The process leading towards the promulgation of the bill into an act of parliament lies within parliament as prescribed in the rules of parliament. During this process, the department has been in constant engagements with Ocsla to ensure speedy processing of the bill.

“Subsequent to the processing and certification, the Ocsla transmitted the bill to parliament on 15 August 2023.

 “Therefore, the assertions in the Business Day article attributing the delays to the minister of mineral resources and energy are far from truth, and border on the lines of a smear campaign against the minister. It is also not true that the department submitted a different or an incorrect version of the bill to parliament.

“The DMRE would like to assure the public that it remains committed to the transformation of the country’s energy sector to enhance energy security and advance universal access to energy. It is therefore in the interest of the department to have the bill finalised expeditiously.”

ensorl@businesslive.co.za