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The Portfolio Committee on Mineral Resources and Energy has warned of an imminent energy crisis in South Africa, if nothing is done, as a matter of urgency, to turn things around.
This is after the Central Energy Fund (CEF) briefed the committee on Friday about the crisis facing national oil company PetroSA with regard to the expected depletion of indigenous feedstock by 2020.
Committee chairperson Sahlulele Luzipo said he was “concerned about the fact that a multilayered board could be responsible for slow decision-making”, which he noted was “not a sustainable business practice” in a competitive environment.
It is against this backdrop that the committee strongly believes that PetroSA should be empowered to become a strategic standalone oil and gas company.
Another issue of great concern to the committee with regard to the CEF and its subsidiaries, as well as other entities under the Department of Mineral Resources and Energy, is that many senior officials continue to appointed in an acting capacity.
“This is dangerous for the country because there is an extent to which a person in an acting capacity can take decisive decisions,” Luzipho noted, adding that the exercise is also costly.
The committee plans to convene an urgent meeting with the CEF within the next two weeks to discuss a number of issues, including access to market, a turnaround strategy, the strategic nature of some entities, legislative alignment and collaborations.
Additionally, the committee has also expressed a view similar to that of Minister Gwede Mantashe, saying that government cannot afford to abolish coal-fired power generation all at once.
The committee believes that, although the country should be moving towards renewable energy in line with the international treaties, to mitigate for climate change, coal should still be regarded as part of the Integrated Resources Plan.