Electricity Regulation Amendment Bill: DMRE briefing

Meeting report

[PMG did not attend the meeting as this was not reflected on the Z List. The below is compiled from the official Committee minutes].

Opening

The Chairperson opened the session at 10h00, stating that the focus of the meeting was to receive a briefing from the Department of Mineral Resources and Energy (DMRE) on the Electricity Regulation Amendment Bill [B23B-2023] Sec 76

Before starting the proceedings, the Chairperson introduced Committee Members, asking the departmental delegation to introduce themselves. Thereafter the Chairperson requested the Secretary and Department to inform the meeting of any apologies.

Mr M Nhanha (DA, Eastern Cape) raised his concerns about the fact that no political principle is present, reminding the Committee of the resolution to postpone any legislative briefings in the absence of any political principle.

The Chairperson assured the Committee that the Deputy Minister has indicated that she will be present when the question session begins and that her Department should brief the committee in the interim.

Mr Nhanha was unsatisfied with the explanation and left the platform at 10h12, with the briefing on the Bill continuing.    

Briefing by the Department of Mineral Resources and Energy on the Electricity Regulation Amendment Bill [B23B-2023] Sec 76

see attached for full presentation 

Discussion 

Members of the Committee thanked the Department for a comprehensive presentation, seeking clarity on but a few issues such as why the Bill does not make electricity theft a statutory crime to circumvent any legal loopholes that would see criminals walk free with limited to no accountability. Other questions related to how the Bill will support the restructuring of Eskom, as mentioned by the President in his State of the Nation Address (SONA), as well as who will perform oversight to ensure price manipulation does not occur, how the Bill conforms with the reform agenda, how the Bill will affect consumers and how the Bill will influence loadshedding.  

The Department informed the Committee that the Bill responds directly to what the President announced in his SONA address and creates a competitive electricity market which in turn should mitigate loadshedding in the future. It was further added that the Bill strengthens National Energy Regulator of South Africa (NERSA), which will protect consumers, ensure no electricity monopoly occurs and that with competitive prices, the price of electricity will eventually decrease. The Bill provides for measures by which the regulator will perform oversight to keep prices fair with the aim of achieving lower than tariff prices for electricity.   

The Department noted the suggestion of making electricity theft a statutory crime under the Act, highlighting that electricity theft is covered under the Criminal Procedures Act and that each municipality also has their own by-laws that govern this type of crime.

The Committee thanked the Department for their presentation after no follow-up questions were asked. 

The Committee considered and adopted minutes from prior meetings. 

​The Chairperson thanked everyone for attending and adjourning the meeting at 11h33.