Date: 21/08/2008
Source: Department of Minerals and Energy
Title: SA: Sonjica: Introduction of Energy Bill debate
Address by Ms Buyelwa Sonjica, MP, Minister of Minerals and Energy, introducing the debate on the Energy Bill, National Assembly
Madame Speaker
Honourable Members
Ladies and gentlemen
One of the greatest challenges of our time is the issue of energy and energy security. These are so vital that most countries, including those in the developed north, have elevated them to the level where they are regarded as 'a threat to national security, our planet and our economy. We are part of the global community and, therefore, we cannot avoid these biggest challenges of our generation. Without the energy sources, the very many and unprecedented quarters of post-apartheid economic growth would have been but a mirage.
We are facing a moment in history where as Barak Obama puts it, 'the consequences of our inaction are so dangerous'. We must act now and act boldly and imaginatively to safeguard our country's energy security.
One commentator recently asked: "News reports flitting across computer screens these days seem increasingly to be related to the subject of energy. But what do they signify?" They signify the extent to which energy has occupied a central focus in the development of global economies.
Milan Kundera spoke about the struggle of memory against forgetting. Kundera may have been referring to a different era and a different context. We, however, do not have the luxury of forgetting the events of December 2005 when our country experienced fuel shortages. A study we conducted in 2006 estimated that, should we experience total fuel supply disruptions, our economy would lose R1 billion a day (in 2005 prices). It will be a dereliction of our constitutional duty, and an abomination, not to take measures to prevent that possibility.
Accordingly, the memory of the wanton disruption which was caused by the recent electricity emergency is still fresh in our minds. This emergency disrupted all sectors of our economy and caused inconvenience never experienced before in the history of our country.
We are, therefore, presenting this Bill in order to ensure that we have the means to do proper planning, not only for the supply of energy but also for the demand of that energy. In presenting this Bill, we would like to pay tribute to energy pioneers like Comrade Prakashnee Govender of Cosatu and Comrade Fred Gono of the National Union of Mineworkers and the entire leadership of these two organisations, as well as National Economic Development and Labour Council (NEDLAC) for their guidance and activism during the preparation of this Bill. The Bill makes provision for the tools that will enable us better to explain and predict demand.
We need adequately to prepare for the periods when unexpected emergencies happen. In fact, we need to give practical expression to the dictum, 'in victory plan for defeat'. This Bill ensures that we secure the supply of both energy carriers and feedstock. It contains sufficient instruments to prevent the possibility of what happened in January this year when, all of a sudden, we run out of coal for local electricity generation whilst we were busy, in a business as usual way, exporting coal.
Madam Speaker, coming out of the unfortunate events of the supply of energy in 2005 and 2006, Cabinet approved two Energy Security Master plans in the latter part of 2007; one of the plans focused on electricity and the other on liquid fuels and energy security. These plans were developed in order to put in place a holistic strategy or plan for the energy sector in order to address not only the short-term disruptions that were being faced by the country at the time, but also to ensure the security of supply in the medium to long-term.
The effective implementation of Energy Security plans necessitated the need for a legal framework which would adequately empower us to ensure the unqualified implementation of all energy security aspects as envisaged in these Master plans.
Madam Speaker, with this Bill, we aim "to ensure that diverse energy resources are available, in sustainable quantities and at affordable prices, to the South African economy, in support of economic growth and poverty alleviation, taking into account environmental management requirements and interactions amongst economic sectors."
It is for this reason that we are making provision for data and information related to energy demand, supply and generation mandatory by those who already posses it. We will also use this data to provide for energy modelling and planning. This will allow us, amongst others, to be able to conduct analyses which will assist us in promoting a sustainable and viable increase in the generation and consumption of renewable energies.
We recognise that in order to deliver on our mandate, we need skilled and dedicated personnel. We also acknowledge that there is a dearth of skills in the key areas in which we require them. Further to compound the problem, we are also competing with the private sector for these skills. It is for this reason that we are proposing the establishment of an institution which will be responsible for the promotion and implementation of energy efficient innovations and technologies; focusing not only on efficient consumption but also on efficient generation of energy. This institute will also be responsible for energy research and development.
This Bill enjoins us to make a concerted effort to ensure continued and uninterruptible supply of energy. We will do this firstly, by putting in place measures for the holding of strategic or contingency energy feed stocks and energy carriers at a national level; and secondly, by putting in place measures to ensure adequate investment in energy infrastructure as well as the maintenance thereof.
Madam Speaker, energy is a somewhat dangerous commodity. This Bill establishes measures to minimise the negative impact that energy carriers may cause to health and the environment as well as to address the safety aspects thereof, whilst recognising there role played by other government departments in these areas. Members of this house understand the pain that is inflicted on our communities who, because of circumstances beyond their control, continue to use unsafe and unhealthy fuels. Whilst we work towards finding a lasting solution to this problem, we have to work as a team to address the problems caused by use of paraffin, coal and other traditional energy carriers.
We are responding, through this Bill, to the outcry of all key industry stakeholders on the availability, and in some instances the paucity, of data and information used by state-owned entities, like Eskom, in deciding whether special rates should be affected on certain customers.
There have also been requests for the publishing of energy data that would be used to conduct analyses when reviewing energy demand and supply for previous years as well as to cater for future projections of such energy demand and supply. We have tried to balance the interests of those who need to provide data and information with those who need access to that data. We will, therefore, annually publish a list of categories of information that has been declared confidential along with the reviews, forecasts and plausible scenarios.
The development of the integrated energy plan is a vital plank that will guide activity in South Africa's energy space. This plan will take into account all other national, provincial and local plans which may be introduced from time to time, with a particular focus on those plans that impact on or are impacted by the energy sector. It will also take into account sustainable development; economic viability; environmental, health, safety and socio-economic impacts; developmental requirements of the country and lastly to ensure a sustainable balance between supply and demand. We are committed to the achievement of universal access to electricity and other modern energy carriers, particularly to poor households.
Madam Speaker, it is this national plan that will serve as a polestar and a guide for infrastructure investments as well as to assist with the selection of appropriate forms of technologies to meet the ever-increasing energy demand. It should have a long-term planning horizon and should include inputs received from the people of South Africa so that, in the end, it reflects the views of all our people.
In conclusion, Madam Speaker, as Barak Obama said: "we still have a chance to pass to our children (and in my case to Nomfundo and her children) a planet that is cleaner and safer and more prosperous than we found it. This is our moment to save future generations from global catastrophe". As members of the national liberation movement we are, through this Bill, making a humble contribution towards the transformation of our country into a modern technologically advanced developmental state, which is able successfully to take its rightful place in the world community of nations.
I, therefore, Madame Speaker, Honourable Members, ladies and gentlemen, ask the house to adopt this Bill.
Issued by: Department of Minerals and Energy
21 August 2008
Edited by: Site Administrator
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