Parliament, Tuesday, 26 March 2024 – The Select Committee on Land Reform, Environment, Mineral Resources and Energy today received a briefing from the Department of Mineral Resources and Energy on the Electricity Regulation Amendment Bill.
The Bill aims to amend the regulatory framework for the electricity industry in response to prevailing conditions within the South African electricity power system and the Department of Public Enterprises’ Roadmap for Eskom in a Reformed Electricity Supply Industry, 2019.
The main purpose of the Bill is to improve the administration of the Act, provide for additional electricity generation capacity and infrastructure, establish the duties, powers and functions of the Transmission System Operator SOC Ltd, and provide for an open-market platform that allows for competitive electricity trading, among other objectives.
The Bill contains numerous provisions aimed at amending various sections of the Electricity Regulation Act, 2006. These amendments include providing clarity on definitions, extending the scope of licensable activities, empowering the regulator to issue, amend, withdraw, suspend and revoke licences, and setting and approving prices and tariffs. The Bill also introduces transitional provisions and empowers the regulator to consider the variation, suspension, deregistration or revocation of registrations.
The department told the committee about its commitment to ensuring that the amendments in the Bill will contribute to the development and sustainability of the electricity industry in South Africa. During its presentation to the committee, the department highlighted the objectives of the Electricity Regulation Amendment Bill, which include addressing challenges in the electricity sector by improving administration, providing new generation capacity, establishing a transmission system operator and introducing a competitive market in electricity trading.
The department said the proposed amendments seek to enhance efficiency in processing licence applications, hold the regulator accountable for timely responses and ensure compliance with constitutional language requirements. Furthermore, the amendments aim to ensure that licence activities are guided by specific principles, promote renewable energy and protect customers from unauthorised charges, while also establishing a framework for competitive market arrangements and private agreements.
In welcoming the briefing the committee received from the department, it thanked the department for the Bill and the amendments. The committee outlined the process that will unfold after the briefing.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE SELECT COMMITTEE ON LAND REFORM, ENVIRONMENT, MINERAL RESOURCES AND ENERGY, MS TEBOGO MODISE
For media enquiries or interviews with the Chairperson, please contact the committee’s Media Officer:
Name: Yoliswa Landu
Parliamentary Communication Services
Cell: 081 497 4694
E-mail: ylandu@parliament.gov.za
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