the Electricity Regulation Amendment Bill, National Council of Provinces
(NCOP)
29 May 2007
Chairperson
Members of the National Council of Provinces
I would like to present to you the Electricity Regulation Amendment Bill,
after having received comments and support from all nine provinces.
At this stage, I would like to take the opportunity to thank the members of
the Select Committee for the work done here and in the provincial legislations,
and for the unanimous support the Bill enjoyed.
The Electricity Regulation Amendment Bill was first introduced as chapter 4
of the Electricity Regulation Bill which became law on 1 August 2006. The
purpose was to provide a regulatory framework that regulates the electricity
value chain encompassing generation, transmission, distribution and trading.
Due to Constitutional considerations, Parliament advised that the Bill must be
split into two parts:
* Part one: the Electricity Regulation Bill to cover all non-municipal
aspects of electricity regulation
* Part two: the Electricity Regulation Amendment Bill, to cover electricity
regulation taking into account the Constitutional rights of municipalities (or
the so-called section 76 aspects of the Bill). Our focus is now on concluding
the Electricity Regulation Amendment Bill (Part 2), or the part that relates to
the regulation of municipal reticulation services as provided for in section
155(7) of the constitution.
The rationale and intention of this legislation are:
* to provide for licensing of all reticulation service providers including
municipalities
* to provide a framework for setting of tariffs by municipalities
* to empower the Minister to prescribe regulations for municipalities in
relation to electricity reticulation services, including monitoring, compliance
and corrective action in the event of breach by municipalities
* to make provision regarding the relationship between municipalities as
service authorities, and service providers who provide reticulation services on
their behalf.
In the last quarter of 2006, the Bill was introduced in Parliament. Public
hearings were then held in the Parliamentary Portfolio Committee (PPC). The PPC
adopted the Bill in November 2006 and it was subsequently referred to the NCOP
as a Section 76 Bill.
The Bill was considered by the nine provincial legislatures for adoption
during the first quarter of 2007. As I indicated, the provinces unanimously
supported the Bill subject to certain amendments and these amendments have been
taking into account in the final Bill as presented here.
The State Law Advisor has taken these amendments into account in arriving at
the final version of the Bill, including ensuring compatibility with the
Constitution.
The Bill tabled before you today incorporates all the comments received from
stakeholders and I hope members will continue to engage on this Bill and
improve the regulatory framework of the electricity distribution industry.
This completes the institutional legislative framework which will then allow
certain regulations to be implemented in improving the delivery of reticulation
services. This Bill also ensures that National Energy Regulator of South Africa
(Nersa) plays an unambiguous role in its quest to achieve better regulation
outcomes in the entire electricity value chain.
Once again, I would like to thank the members of the NCOP Select Committee
for their invaluable contribution and support in the processing and handling of
this Bill.
Issued by: Department of Minerals and Energy
29 May 2007
Source: Department of Minerals and Energy (http://www.dme.gov.za)
