MINISTER JEFF RADEBE ON ENERGY EFFICIENCY
To kick off the annual Energy Month activities of the Department of Energy, Minister Jeff Radebe held a public lecture on energy efficiency at the University of Mpumalanga (UMP) on 4 May 2018. The event was attended by students and distinguished guests who included, among others, the Vice-Chancellor of the university, Professor Thoko Mayekiso.
ENERGY MONTH
The Department of Energy utilises the month of May (Energy Month) to create awareness of the need for energy efficiency and the challenges associated with the irresponsible use of energy, as well as an understanding that being energy efficient means being energy smart while still achieving the same output. Enhanced energy efficiency has a major role to play in meeting South Africa’s local and international commitments to the reduction of fossil fuel emissions. These Energy Month activities aim to educate people about the basics of saving energy. Some of the simplest savings strategies include switching off lights in spaces that are not in use at a particular time and using energy-saving bulbs, as well as buying energy-smart home appliances. “We have already started with our ‘Standards and Labelling Campaign’, where we remind people to always check for appliances that save energy when buying. This will help them make informed choices and help the entire country save electricity,” said Minister Radebe. The Minister took the opportunity to highlight some of the persistent barriers affecting the realisation of the full potential benefits of energy conservation and savings. However, he assured the guests attending the public lecture that it is the responsibility of his department, through implementation by the relevant energy entities, to ensure that the people have access to reliable and sustainable energy.
ENERGY-SAVING MEASURES
The Department of Energy has put a number of measures in place to promote energy efficiency. One of these includes programmes to improve the efficiency of streetlighting infrastructure, traffic lighting, and water pump and waste treatment plants. Further to this, Minister Jeff Radebe mentioned that energy efficiency in everyday home appliances can save households significant amounts of money, as these appliances account for up to 30 percent of home energy usage. The department has introduced an intervention measure in the form of the Minimum Energy Performance Standards (MEPS). This programme will be implemented in conjunction with various stakeholders and seeks to improve the efficiency of everyday household appliances. On the issue of the cost of fuel, Minister Radebe recognised that the price of fuel has been on an upward trajectory since
April 2018 due to both local and international factors. The main contributing factors to the fuel price changes are the movement in the rand/US dollar exchange and the price of crude oil, which then impact the prices of finished products. “Unfortunately, there is no crude oil in South Africa and, therefore, both crude oil and the finished products are imported, because our demand outstrips the supply from local refineries,” said Minister Radebe.
TRANSFORMATION IN THE INDUSTRY
The Department of Energy, together with industry and respective associations, is also extensively engaged in unlocking impediments to find solutions to effect radical socio-economic transformation in the petroleum and liquid fuels sector.
The Department will complete a retail audit which aims to verify and measure the extent of Broad-Based Black Economic Empowerment (B-BBEE) at the retail level in the industry, as informed by the Petroleum Products Act of 1977 (amended in 2005), the Liquid Fuels Charter, and the Broad-Based Economic Empowerment Act of 2003 (amended in 2013) and revised Codes of Good Practice.
The Minister encouraged the private sector, which has larger procurement muscle, to embrace broad-based black economic empowerment by actively buying from black-owned companies and supporting SMMEs.
The Minister emphasised that his department is committed to the goals set out in the National Development Plan (NDP), which seeks to eradicate poverty in South Africa by 2030. Despite the challenges, the department will continue to promote a climate that is conducive to reasonable profits and sustained investments in the liquid fuels industry. The department will also continue to set margins in a fair and transparent manner in order to encourage investment in the industry and to ensure that the liquid fuels products are sold to the end user at the cheapest possible price.
Following a robust and informative question-and-answer session with the audience, which included UMP students, Minister Radebe expressed his appreciation at the level of engagement from the participants and committed the department to future discussions focusing on matters of interest to the community.