The Energy Regulation and Markets Review - Stikeman Elliott

South Africa
loading facilities and petroleum bulk storage facilities; and all downstream supply chain
activities in respect of petroleum products. This responsibility entails the articulation
of national government policy and the making of subordinated or delegated legislation
through regulations and notices as permitted under primary legislation. The Minister is
supported in this function by the Department of Energy. These downstream activities are
primarily governed by the following laws:
a the Electricity Regulation Act (‘the ERA’); 8
b the Integrated Resource Plan for Electricity 2010–2030 (‘the IRP 2010–2030’); 9
c the Electricity Regulations on New Generation Capacity (‘the Electricity
Generation Regulations’); 10,11
d the National Energy Regulator Act; 12
e the Gas Act; 13
f the Gas Regulator Levies Act; 14
g the Gas Act Rules; 15
h the Petroleum Pipelines Act; 16
i the Petroleum Pipelines Levies Act; 17 and
j the Petroleum Products Act. 18
Some legislative amendments are currently before the National Assembly for consideration
that will significantly overhaul the aforementioned legislation. These include:
a the Electricity Regulation Second Amendment Bill (‘the ERA Amendment
Bill’); 19
8 Act 4 of 2006.
9 Electricity Regulations on the Integrated Resource Plan 2010–2030 (GN R400 in GG 34263
of 6 May 2011).
10 Promulgated in GN R399 in GG 34262 of 4 May 2011.
11 In addition to the above legislation, the electricity sector is also governed by the Constitution of the
Republic of South Africa, 1996 (the Constitution), which grants municipalities executive authority
and the right to administer electricity reticulation; the Eskom Conversion Act 13 of 2001, which
provides for Eskom’s status as a public company generally subject to company laws, under 100 per
cent state ownership (through the Ministry of Public Enterprises) and liable for the payment of
dividends and taxes; Local Government: Municipal Finance Management Act 56 of 2003, which
prescribes the framework of fiscal management of municipal entities such as municipal electricity
utilities; and the Local Government: Municipal Systems Act 32 of 2000, which prescribes the
framework for the municipal administration of electricity reticulation and tariffs.
12 Act 40 of 2004.
13 Act 48 of 2001.
14 Act 75 of 2002.
15 Gas Act Rules 2009 (GN R1251 in GG 32849 of 31 December 2009).
16 Act 60 of 2003.
17 Act 28 of 2004.
18 Act 120 of 1977.
19 Promulgated in GN 905 in GG 34870 of 19 December 2011.
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