Following the declaration of a National State of Disaster to address the energy crisis, Trade, Industry and Competition Minister Ebrahim Patel on March 8 published draft exemptions from certain parts of competition laws, to enable companies to collaborate on energy matters.

Patel has, in terms of Section 10(10) of the Competition Act, gazetted a notice calling for the public to comment on the draft block exemptions for energy suppliers and users.

The purpose of the two draft block exemptions is to exempt a category of agreements and practices among energy suppliers and users from the application of Sections 4 and 5 of the Act.

These sections of the Act prohibit restrictive horizontal and vertical practices and agreements. The specific categories of agreements and practices are detailed in the gazetted notice.

The block exemptions are expected to allow for greater coordination between and among energy suppliers and users, respectively, in response to the electricity supply constraints during the National State of Disaster.

The first draft block exemption for energy suppliers is aimed at increasing and optimising the supply of energy in the market, as well as reducing the cost of energy supply.

The second draft block exemption for energy users is geared at enabling collaboration to secure backup or alternative energy supply, reduce energy costs and promote the optimisation and efficient use of energy.

“The proposed exemptions are intended to provide greater flexibility for collaboration between competitors where this can assist with addressing South Africa’s energy challenges.

“Members of the public have an opportunity to comment before a final decision is made. The terms of the proposed exemptions can be found on the website of the Competition Commission and from the Department of Trade, Industry and Competition (DTIC),” Patel outlines.    

The public and interested stakeholders are invited to submit comments in writing within a period of 15 days from the publication of the gazetted notice to AAppolis@thedtic.gov.za or IGalodikwe@thedtic.gov.za.