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AfriForum warns that the Gas Bill, if implemented in its current form, will have a far-reaching impact on the country’s gas industry and will negatively affect, among other things, market structure, the regulator’s powers, the rights of licensees, property rights, and investment certainty. The civil rights organisation included this warning in its comments on the bill, which were submitted today. In its submission, AfriForum points out that the Bill contains provisions raising serious questions regarding legality, administrative fairness, constitutional property rights, and equality.

The bill expands the authority of the National Energy Regulator of South Africa (Nersa) regarding gas tariffs, pricing and infrastructure. It also grants the Minister of Electricity and Energy significant powers over licensing, new gas facilities and supply decisions. AfriForum believes that these aspects of the Bill will leave too much room for uncertainty and excessive administrative control.

Lambert de Klerk, AfriForum’s Manager for Environmental Affairs, notes that the organisation’s comments focus on various sections of the bill related to legal certainty, property rights, executive discretion, transitional protection and fair enforcement.

“These provisions are central to the operation of the entire gas framework and determine who may enter the market, how the market is regulated, the level of investor certainty, and the extent of state intervention in private activities,” De Klerk explains.

“South Africa needs a gas framework that encourages investment and development through clear rules and predictable processes. A framework that concentrates too much power in the hands of the state, creates monopoly risks and leaves critical decisions to broad discretion will have the opposite effect. The bill must provide legal certainty, protect property rights and operate transparently if it is to serve the country’s long-term interests,” he concludes.

AfriForum will continue to engage on the bill and consider all relevant remedies on provisions that weaken competition, undermine investor confidence or place constitutional rights at risk.

Issued by AfriForum