Speech on Energy Regulator Bill- Second reading debate by Avril Harding
2004-08-25. The primary purpose of the legislation is to create a single regulator for electricity, piped gas and petroleum pipeline industries.
This will serve to prevent a plethora
of different structures being set up for new entrants to the sectors.
In general the consolidation will contain costs of infrastructure. This
excludes the National Nuclear Regulator which deals essentially with
safety legislation while the other regulators encompass economic
regulation. However, given the importance of nuclear energy
debates- the controversial Pebble nuclear reactor scenario for example,
some space should be found to incorporate it.
A manage liberalization strategy is supported if it leads to opportunities liberalising certain aspects of the industry.
Community participation mechanisms in NER rulings could be very costly if high court application must be sought. Some low cost appeal mechanism must be found in NER operating systems to accommodate the previously disadvantaged. This is not adequately addressed in the Bill.
Access to information
The regulations must deal clearly and concisely with what is commercially sensitive information and what grounds information will be denied. It is to be expected that there will be keen interests in energy tariffs and operational costs as it has a bearing on business. This information on tariffs and associated structures must be made available in reports by the regulator. How will the regulator set charges for these other services and dispute regulation and what will be the Minister's role be / discretion in this?
What about the regulation of Independent Power Producers, access to transmission grid for example are issues that needs further consideration. Recognition must be accommodated of the some policy changes in Electricity supply industry such as unbundling generation, transmission and distribution businesses and the advent of wholesale electricity markets.
We recommend that the funds received from each sector in form of fines be used exclusively in the sector for development, training of previously disadvantaged persons into the highly technical areas and that the Parliamentary appropriations be split equally between the different sectors.
The ID recognizes the need for one regulator to oversee various sectors as we need to get the industry dynamics rights before introduction of competitive markets. How BEE is facilitated in the process is another challenge.
We stress the importance of an affordable low cost option for community participation in decisions, rulings of the NER and that the Department tags some of the cost in this respect. Access to information and transparency around tariff setting and charges is crucial, if we are to build credibility into the process.
A manage liberalization strategy is supported if it leads to opportunities liberalising certain aspects of the industry.
Community participation mechanisms in NER rulings could be very costly if high court application must be sought. Some low cost appeal mechanism must be found in NER operating systems to accommodate the previously disadvantaged. This is not adequately addressed in the Bill.
Access to information
The regulations must deal clearly and concisely with what is commercially sensitive information and what grounds information will be denied. It is to be expected that there will be keen interests in energy tariffs and operational costs as it has a bearing on business. This information on tariffs and associated structures must be made available in reports by the regulator. How will the regulator set charges for these other services and dispute regulation and what will be the Minister's role be / discretion in this?
What about the regulation of Independent Power Producers, access to transmission grid for example are issues that needs further consideration. Recognition must be accommodated of the some policy changes in Electricity supply industry such as unbundling generation, transmission and distribution businesses and the advent of wholesale electricity markets.
We recommend that the funds received from each sector in form of fines be used exclusively in the sector for development, training of previously disadvantaged persons into the highly technical areas and that the Parliamentary appropriations be split equally between the different sectors.
The ID recognizes the need for one regulator to oversee various sectors as we need to get the industry dynamics rights before introduction of competitive markets. How BEE is facilitated in the process is another challenge.
We stress the importance of an affordable low cost option for community participation in decisions, rulings of the NER and that the Department tags some of the cost in this respect. Access to information and transparency around tariff setting and charges is crucial, if we are to build credibility into the process.
