(Ed) 2006. Energy policies for sustainable development in South Africa

6 ENERGY POLICIES FOR SUSTAINABLE DEVELOPMENT IN SOUTH AFRICA
primary goals. From 2000, energy policies focused on trying to achieve the targets and
timetables that the government set itself after 1994. These targets relate to job creation and
economic security, and recognise that development paths have to proceed in a sustainable
manner and protect both local and global environments.
In South Africa one of the primary environmental issues is adverse emissions from coal.
Nitrous oxide and sulphur dioxide from coal combustion cause serious problems for the
local environment, while the CO 2 emissions cause climate change. This is challenging to
the government – it has to balance affordability with the huge task of providing services for
the poor, while at the same time complying with local and international obligations to
protect the environment. In general the country’s energy policies broadly reflect this new
context.
2.2.2 The apartheid period
Before 1994, energy policies were designed to provide energy services based on ‘separate
development’, the apartheid government’s euphemism for racial discrimination. In the
domestic sector, this meant providing modern energy services to the ‘white’ population
group, which formed 11% of the population, and limited or no services at all to the rest of
the population. High priority was given to the needs of the industrial sector because of its
role in economic and political security. In general, this meant concentrating on electricity
and liquid fuels, as these were crucial to economic and political interests. Security, secrecy
and control characterised most of the policies that prevailed.
An important government decision in the 1950s, made for political and economic reasons,
was to produce liquid fuel from coal through the government-owned Sasol. Security of
liquid fuel supply was the main driver here. At the same time, the decision was made to
refine crude oil locally. Up to 1954, all refined oil products had been imported and
distributed by BP, Caltex, Mobil, and Shell (Trollip 1996) but now the growing demand for
liquid fuels justified the development of refineries. Production of liquid fuel started at Sasol
I in 1954 and the Mossgas plant was developed in 1992. Both plants were heavily
subsidised by the government (Trollip 1996).
Escom (the Electricity Supply Commission, forerunner of Eskom) had been producing
electricity for a long time, supplying the industrial structure including the military complex,
and a number of mainly white households. In 1987, some major changes took place,
which still significantly affect power sector reforms today. Two key statutes were
introduced: the Escom Act of 1987, and the Electricity Act of 1987. The Escom Act defined
the responsibility of the utility as providing electricity in the most cost-effective manner,
although it said nothing about supplying electricity to all citizens. The Electricity Act defined
the structure, functions and responsibilities of the Electricity Control Board and assigned
the sole right of electricity supply within municipal boundaries to local government
(Eberhard & Van Horen 1995). Five years later, in 1992, a new body called Eskom (now
with a ‘k’) was established in terms of the Electricity Act. Eskom was to be controlled by the
Electricity Council whose composition was now more representative of stakeholders. The
Electricity Council would appoint Eskom’s management board.
2.2.3 After the 1994 elections
The government that took office after the first democratic elections was committed to
democratic governance and a new constitution, and it was determined to provide basic
services to the poor and disadvantaged majority of South Africans. Modern energy,
especially electricity, was considered to be one of the main components of such services.
Government focussed its attention on electrification and liquid fuels.