Sapia comments in anticipation of the White Paper
Sapia looks forward to the publication of the White Paper on Energy Policy and hopes that this document will be the basis for an energy policy which will benefit all South Africans and be acceptable to all Industry role-players. The White Paper should also mark the move away from the energy policies of the past - essentially aimed at over-coming sanctions - to those of the present and future, aimed at nurturing the growth and development of South Africa.
Sapia believes that in the White Paper there should be a vision of equity, efficiency and competitiveness, and environmental sustainability. We foresee that such a vision would assist the energy sector in playing a meaningful part in realising the objectives of reconstruction and development. Sapia strongly believes that if energy policy enhances the efficiency and competitiveness of the South African economy it will contribute significantly to the success of the Growth, Employment and Redistribution strategy.
An integrated energy plan supported by:
improved statistics and information from all role-players
more
expert knowledge of the technology and economics of the energy sectors, and
more input of specialist skills within government
is essential to the
formation of a sound national policy on energy.
Only additional capacity in these three areas can ensure effective decisions on issues which are urgent - but which will have critical long term effects on the South African economy.
Sapia supports measures to increase national government capacity so that energy policies can be formulated, urgently, that will meet the complex needs of all society. The oil industry sees the policy decision-making process as so vital that it is willing to spend time and effort in providing accurate data - and even in seconding staff temporarily to the Government - without in any way compromising the independence of the Department of Minerals and Energy.
We see the need to build capacity within Government for decision-making on energy policy as fundamental to the South African economy. An Integrated Energy Plan cannot be postponed without harm to several major sectors. And there is no alternate or substitute to such a plan. The necessary capacity to handle it can be reached through consultation with appropriate advisers and/or the secondment of appropriate personnel from the energy industry to the Department - rather than through the creation of a bureaucracy which would be costly and which could take on an expensive life of its own.
Sapia would have serious reservations about the creation of yet more bodies or committees to carry out duties which we believe are the duties of the Department of Minerals and Energy. A proliferation of governance bodies will increase bureaucracy, make co-ordination of policy more complicated, impose additional burdens on industry participants and make transparency more difficult to achieve.
Sapia's interests naturally relate mainly to policy on liquid fuels and gas. An ultimate objective of minimum government intervention in the industry will, we believe, create a vigorous sector in which efficient investment decisions and strong competition will benefit all consumers.
We understand that minimum government intervention cannot mean complete laissez faire. Regulations concerning safety and environment and product quality will need to be maintained and enforced. The prevention of anti-competitive behaviour and monopolistic practices (via general legislation) is an international norm which we would expect to be a part of the new dispensation. We also recognise that in South Africa government must concern itself with how change may affect jobs and employment conditions.
Sapia's Policy Vision
Sapia subscribes to a vision of minimum government intervention in the energy sector which will deliver the following:
Free and fair competition at the retail pump and in the market
generally.
Freedom of entry to the market especially by hitherto
disadvantaged entrepreneurs.
An efficient, internationally competitive
industry.
An environment conducive to needed investment.
A fair
dispensation for the Synfuels industry in line with the national interest.
Countrywide availability of quality products at competitive prices.
Sapia
has two specific issues which it wishes to see properly addressed in the White
Paper.
Firstly there are many facets to the timing and nature of the phasing
out or changing of existing regulations. Current regulations create a delicate
balance. The removal or change of any individual element of these regulations,
without careful consideration of the overall impact, can have far reaching and
serious consequences. The White Paper must provide sufficient detail to enable
a sound judgment to be made on the viability of the proposals of phasing out or
change. This will provide a reliable basis for mapping out the transition
phase, which could contain many potential pitfalls if not properly planned.
Secondly Sapia believes that, other than measures to assist the formerly
disadvantaged sections of our society to enter the industry, entry by any
particular refiner into direct marketing should be a purely commercial matter
which should not be enshrined in or facilitated by a Government policy
document.
Sapia is ready to participate in elaborating the vision and
creating a mutually agreed timetable for the implementation of the shared
vision. It calls upon other role-players to do the same in the interests of
South Africa.