AfriForum warns that Gas Bill could undermine sector with excessive state control
It is clear that the Gas Bill is not a narrow technical update but a sweeping intervention that will affect the structure of South Africa’s gas market, the rights of licensees, competition in the sector, property rights, and investor confidence. This according to AfriForum, who is currently preparing detailed comments on the proposed legislation that would expand the authority of the National Energy Regulator of South Africa (NERSA) over gas prices, tariffs and infrastructure.
The Bill gives the Minister of Electricity and Energy as well as NERSA very broad powers over, among other things, licensing, pricing, the approval of new gas facilities and supply arrangements. In its present form, it risks creating exactly the kind of uncertainty and regulatory overreach that drives investment away.
AfriForum is especially concerned about section 17 on exclusivity, section 18 on license conditions, section 27 on the gas master plan, section 28 on new gas facilities and supply, section 32 on administrative fines, section 33 on expropriation of land, section 36 on regulations, and section 39 on exemptions.
“These sections do not make minor provisions, but go to the heart of who controls the market, how much certainty investors have, and how much discretion the state will be able to exercise over private activity,” says Lambert de Klerk, AfriForum’s Manager for Environmental Affairs.
“AfriForum’s position is that South Africa needs a stable gas framework, not a system that centralises power, creates monopoly risks, and leaves major policy choices to open-ended administrative discretion. The final Bill must provide real legal certainty, protect property rights, and ensure transparency and accountability at every stage. That is the only way the sector will attract investment and deliver long-term benefit to the country.”
AfriForum will submit its formal comments on the Bill and will continue to oppose provisions that threaten competition, investment certainty and the constitutional rights of South Africans.
