Committee on electricity hears views on the Gas Bill
The Portfolio Committee on Electricity and Energy has begun public hearings on the Gas Bill.
In a media release, the committee says stakeholders who made submissions supported the Bill and proposed amendments to strengthen regulatory certainty, promote competition, improve oversight and prepare the gas sector for future energy developments.
Committee chairperson Zama Khanyase said the committee had received 33 written submissions after a public call for comments in regional newspapers and in all official languages. Of these, 23 stakeholders asked to make oral presentations.
She said the public hearings – held on August 11 and 12 – would assist the committee when it deliberates on the Bill after the Department of Electricity and Energy has responded to the submissions.
Khanyase explained that the purpose of the hearings is to seek clarity on the submissions and not to deliberate on the substance of the Bill at this stage.
The committee received presentations from industry representatives, regulators, civil society organisations and energy experts.
These included Sydney Mosoane; Green Hydrogen Solutions; Double U Gas trading as My Gas Spot; the National Energy Regulator of South Africa (Nersa); the Liquefied Petroleum Gas Association of South Africa (LPGSA); the South African Oil and Gas Alliance (SAOGA); Sasol; Natural Justice; and GroundWork.
The media statement notes that Mosoane supported the objectives of the Bill and said the Gas Act of 2001 no longer responds adequately to the changing gas industry.
He warned that South Africa remained dependent on gas supplies from Mozambique and faced a possible gas supply decline from around 2028. He said investment in liquefied natural gas infrastructure would require a transparent and predictable regulatory framework.
According to the release, Mosoane proposed stronger safeguards for Ministerial determinations on major gas infrastructure projects, clearer public participation processes and objective criteria to improve investor confidence.
He also called for limits on exclusive distribution rights, stronger coordination between NERSA and the Competition Commission, and clearer rules on licence suspensions, penalties and transfers.
Additionally, the release notes that Double U Gas welcomed stronger regulation but said small-scale liquefied petroleum gas traders continue to face barriers in the market.
The company raised concerns about the dominance of large wholesalers and said regulatory requirements should recognise the realities of small businesses operating in townships and low-income communities.
It called for a dedicated small gas trader registration category, simpler regulatory processes and improved market access. It also asked for stronger oversight of cylinder exchange systems and support for low-income households to finance safe gas installations.
Green Hydrogen Solutions said the Bill should make provision for emerging technologies such as green hydrogen and other low-carbon gases. It said hydrogen could play an important role in future energy systems and should be recognised in the Gas Master Plan and the legislative framework.
The organisation also noted that the regulatory framework should enable hydrogen blending in existing gas networks and encourage investment in hydrogen infrastructure. It said this would support energy security and South Africa’s long-term energy transition.
Moreover, the release notes that Nersa supported the Bill and said it would strengthen the regulation of gas prices and tariffs, facilitate infrastructure investment, promote competition and accommodate new technologies.
Industry bodies including LPGSA, SAOGA and Sasol also stressed the need for clear licensing processes, predictable tariff frameworks and coordination between regulators. Stakeholders said a stable regulatory environment was important for investment in gas infrastructure and for supporting energy security.
The release adds that civil society organisations, including Natural Justice and GroundWork, raised concerns about environmental governance, climate change, public participation, methane monitoring and community consultation.
They called for stronger safeguards and greater alignment between gas infrastructure development and South Africa’s just energy transition commitments.
Meanwhile, committee members asked questions about competition in the gas sector, the affordability for low-income households, support for small operators, cylinder retention practices and the future role of hydrogen in South Africa’s energy mix.
Stakeholders said the Bill should balance investment, consumer protection, innovation and broader participation in the gas economy.
Khanyase thanked stakeholders for their presentations and said their inputs would assist the committee in its consideration of the Bill.
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