The Portfolio Committee on Electricity and Energy has begun public hearings on the Gas Bill, with stakeholders using the public engagement process to voice support for the proposed legislation while recommending amendments aimed at improving investment certainty, promoting competition and preparing the country's energy sector for future developments.
Committee Chairperson Ms Zama Khanyase opened the meeting by informing members and participants that 33 written submissions had been received following a public call for comments published in regional newspapers in all official languages. Of these submissions, 23 stakeholders requested an opportunity to make oral presentations to the committee.
Ms Khanyase said the hearings would be conducted over two days, on 11 and 12 August, and would inform the committee’s deliberations on the Bill. The deliberations are expected to commence on 18 August, after the Department of Electricity and Energy responds to all submissions.
Ms Khanyase reminded committee members that the purpose of the session was to seek clarity on the presentations and not to engage in substantive deliberations on the Bill.
The first submission was presented by Mr Sidney Mosoane, who expressed support for the overall objectives of the Gas Bill. He argued that the current Gas Act of 2001 no longer adequately addresses the realities of South Africa's evolving gas industry.
He pointed to South Africa’s heavy dependence on gas supplies from Mozambique and warned of the approaching “gas cliff”, a significant decline in gas supplies expected from around 2028 as Mozambican gas fields begin to deplete. He explained that South Africa would likely need substantial investment in liquefied natural gas infrastructure to secure future supplies. He noted that private financiers would only commit such funding if the legislative and regulatory framework was transparent, predictable and fair.
In his recommendations, Mr Mosoane said the Bill should include stronger safeguards around ministerial determinations relating to gas infrastructure projects. He said clear procedures, limited discretion and opportunities for public comment would improve investor confidence and reduce the risk of legal challenges.
He proposed limiting exclusive gas distribution rights to prevent long-term monopolies and encourage greater competition in the sector, particularly for new entrants and black-owned businesses. Mr Mosoane called for clearer coordination between the National Energy Regulator of South Africa (NERSA) and the Competition Commission on pricing matters to avoid regulatory overlap and conflicting decisions.
He also suggested safeguards around licence suspensions and fines and recommended a quicker and more predictable process for transferring licences when projects are financed by lenders. According to Mr Mosoane, these refinements would strengthen the Bill’s ability to attract the investment needed to address South Africa's future gas supply challenges.
The committee also heard from Double U Gas, a black-owned small enterprise supplying LPG to households in townships and low-income communities. Mr Pike from Double U Gas said small traders support strong safety standards and comply with relevant regulations, but face structural barriers that make it difficult for them to compete with larger players in the market. He said the current regulatory framework places excessive administrative burdens on small-scale traders by treating them in much the same way as major gas companies.
Mr Pike told the committee that a small number of large wholesalers continue to dominate LPG supply and that this concentration limits opportunities for independent traders. He urged the committee to consider a lighter regulatory regime for smaller operators and to introduce measures that would make the market more competitive.
He raised concerns about the retention of gas cylinders by competitors, explaining that the practice often deprives small businesses of critical assets and can force them out of operation because replacing cylinders is costly.
Double U Gas proposed that NERSA be given greater powers to address cylinder exchange disputes and called for measures to help low-income households finance the costs associated with safe gas installations. Mr Pike argued that such interventions could expand access to affordable energy while creating employment opportunities in local communities.
Green Hydrogen Solutions’ presentation focused on ensuring that the Gas Bill accommodates emerging technologies such as green hydrogen. The presenter explained that although hydrogen is not yet fully cost-competitive with traditional fossil fuels, international trends point to its growing importance in future energy systems.
South Africa’s Green Hydrogen Strategy already recognises the role that hydrogen can play in supporting economic development and decarbonisation.
Mr Takolia from Green Hydrogen Solutions called for provisions that would enable hydrogen to be blended into existing gas networks and for the Bill to provide greater recognition of low-carbon and renewable gases. Mr Takolia argued that hydrogen blending could assist in mitigating the impact of future gas supply shortages while supporting the country's long-term energy transition goals.
He encouraged the development of technical standards and regulatory mechanisms that would allow hydrogen infrastructure to evolve alongside existing gas networks.
Responding to the presentations and submissions, members welcomed the contributions and raised concerns about several issues affecting the gas sector. Members highlighted the need for greater competition in gas distribution, particularly to support smaller operators and expand access to underserved communities.
Questions were raised about the affordability of gas for low-income households, the impact of anti-competitive cylinder retention practices and the future role of hydrogen in South Africa's energy mix.
Responding to questions, Mr Pike explained how the loss of cylinders affects smaller businesses and noted that customer deposits cover only a fraction of the actual replacement cost of cylinders.
Green Hydrogen Solutions expanded on the opportunities presented by hydrogen technologies by highlighting their potential to stimulate industrial development, support local manufacturing and create future economic opportunities, especially in areas with strong renewable energy resources.
The submissions received will form part of the committee's consideration of the Gas Bill as it continues its work to modernise South Africa’s gas regulatory framework and strengthen the country’s long-term energy security.
Yoliswa Landu
11 August 2026
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