Sapia supports the concept of a single Energy Regulator as it should result in cost savings at the "overhead level", result in reduced overall costs of administering the various energy regulators. Care should be taken to ensure that the skills required for very different nature of gas, electricity and pipeline regulation are not compromised in any way.

Sapia is pleased that petroleum products industry is not at present to come under the ambit of the single National Energy Regulator but is to remain under the direct regulation of Department of Minerals and Energy for the foreseeable future.

Sapia notes that in the Memorandum on the Objects of the Bill it is stated "It is anticipated that the Energy Regulator as defined in this Act will take on the functions of regulating the petroleum products industry at an appropriate time."

In this regard Sapia wishes to point out that in the case of the petroleum products industry regulation (of the commercial aspects) of the industry is temporary, and is to be phased out in terms of the government’s policy of managed liberalisation. Therefore if the petroleum products industry is ultimately to come under the wing of the Energy Regulator, as envisaged in the explanatory memorandum to the Bill, then this should be after managed liberalization and progressed to the extent that the commercial aspects of the industry are no longer subject to regulation. The Energy Regulator should only cover the "permanently" regulated aspects of the industry - e.g. HSE issues.

Sapia is also pleased to note that in terms of Section 10 decisions of the Energy Regulator will be disclosed to the public wherever possible and will be subject to review by the High Court at the instance of an adversely affected party.

In terms of Funding, Section 12, Sapia wishes to raise two issues:

12 (1) ( c ) What discretion will the Energy Regulator have in deciding on what "other services" it renders and how will to set its charges for these and dispute regulation? Will the Minister have a role in these matters?

Will the Energy Regulator keep any fines imposed in terms of the Acts as income or will they transferred to National Treasury?