Minister of Energy | 15-05-2007
The White Paper on energy policy recognises the need for South Africa to make optimum use of all its energy sources for the benefit of all South Africans. Subsequently the Cabinet became concerned about the proliferation of energy sub-sector regulators. It is the government view that the rationalization of the different institutional arrangements and regulatory approaches to electricity, piped-gas and petroleum pipeline will ensure effectiveness, cost efficiency, compliance and the promotion of uniform regulatory methodologies and applications.
The National Energy Regulator (NERSA) will, at its core, be an economic regulator. Economic regulation as a discipline is relatively young in developing countries. This is particularly true for our continent and our country. However, regulation is not a nice-to-have but rather a necessity to balance the interest of the public, utilities and government.
There are many challenges that NERSA will have to face to become a robust and independent regulator. The key challenge will be energy poverty. In September 2005, Africa’s role in providing energy for the world was highlighted at the 18th World Petroleum Congress held in Johannesburg. It is a serious concern that energy poverty, which afflicts many Africans, did not receive prominence. Ensuring our people in South Africa and on the continent have access to safe, reliable and affordable energy is imperative. Little development can take place without access to energy.
Government has signalled its intention to put the economy on a new route and achieve an economic growth rate of 6% in the years to come. The role of energy in achieving this target is recognised and all in the sector must collectively put their shoulder to the wheel.
I have confidence in the newly appointed members of the National Energy Regulator, who are eminent persons and I am sure that they, together with the NERSA Secretariat, will do us proud in executing their mandate. I would like to thank them for making themselves available for the mammoth challenge ahead |