Tag Archive | Draft Gas Act Amendment Bill

More hints that Gas Act amendments on the way

The National Energy Regulator of South Africa (NERSA), in a presentation to the portfolio committee on energy, unveiled its strategic plan for 2011/2  indicating its intention to ask cabinet for a review of the Gas Act through an amendment Bill. From remarks made during the meeting it is apparent that the draft has been prepared and finalised.

NERSA indicated that the primary purpose for calling for changes were to redefine many issues that had changed with the passage of time in the gas industry with the many different applications that had been introduced and that discussions with stakeholders had been held.

Other matters included the drafting of strategies involving gas as far as the integrated Resource Plan of 2010 was involved in its relation to energy and power needed in the total national context.

NERSA informed the committee that a key objective was the imposition of regulatory certainty “to create a conducive environment for attracting and ensuring orderly investment”.

In looking ahead, NERSA said that one of its main items of focus would be establishing and clarifying its own mandate insofar as the fixing of tariffs and its regulatory powers to do so was concerned and there were certain anomalies that had to be cleared up and systems improved.

NERSA said that one of the issues arising regularly and which had to be rationalised was the matter of regional pricing structures that arose in geographical areas because of different conditions and costs. The regulator wanted to consider maximum pricing and placing a cap to apply to certain tariffs.

NERSA undertook, it said, its mandate promised to Parliament last year that it would continue to monitor compliance within terms of licences granted, for example the monitoring of gas supplies from Mozambique. The NERSA spokesperson said that, as regulator, about five IPP licences, in line with government’s aim of having 30% of South Africa’s power generated by IPPs and the remaining 70% by Eskom, had been granted and a further twenty eight were about to be granted.

As a body, NERSA said it was responsible for the National Energy Regulator Act, its anchor legislation, the Electricity Regulation Act, the Gas Act and the Petroleum Pipelines Act . With these, it controlled levies through section 5B of the Electricity Act, the Gas Regulator Levies Act and the Petroleum Pipeline Levies Act.

Insofar as tariffs approved were concerned, these included the major increase for Transnet and various new tariffs for Engen, Chevron, Sasol and the Tarlton storage facilities, amongst others. Continued attention was to be given to pipeline bottlenecks in Durban.

The monitoring of possible shale gas supplies emerging from exploration in the Karoo was being monitored.

Most of the discussions between NERSA and parliamentarians as a result of the presentation surrounded Eskom, which supplies 90% of the electricity needs of South Africa.

Posted in Energy, Fuel,oil,renewables, Mining, beneficiation, Trade & Industry0 Comments

Gas Act changes closer to implementation

Following the November 2011 LP Gas conference in Johannesburg, the minister of energy , Dipuo Peters, has revealed in a written reply to a parliamentary question that  the energy department is in the process of finalising a liquefied petroleum gas (LPG) strategy in the form of a new Bill to be introduced shortly.

Cabinet’s approval will be shortly sought and the result opened up for public comment, she said.

The minister indicated that she intended to table the bill in Parliament before the end of the current financial year, saying that the review process at the conference in 2011 had enabled her department to study “some of the challenges experienced by current and prospective players in the gas industry, as well as shifts in the industry landscape”.

At the end of the conference, she told the media that a strategy was being drawn up as part of government’s response to challenges of over-dependence on electricity and greenhouse gas emissions and that she wished to encourage low income households to move from paraffin and “biomass” to LP gas, wanting to see1.5 million households using LPG by 2016.

She also told the National Assembly in her responses that clarity had to be sought on issues involving the importation, storage and distribution of both LNG and CNG and that PetroSA and iGas would consider importing LNG.   Dealing with another question, minister Peters confirmed that her department was drawing up a “road map for the energy sector” on energy and climate change, which plan would be implemented in the next financial year.

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