EV charging station developer objecting to Sanral's proposed policy changes
The developer of a South African nationwide network of solar-powered offgrid electric vehicle (EV) charging stations, Zero Carbon Charge (CHARGE), has formally objected to the South African National Roads Agency Limited’s (Sanral’s) proposed amendments to its Rest and Services Facilities (RSF) policy. CHARGE asserts that the proposed new policy will put private sector investment at risk, delay the rollout of critical infrastructure and create regulatory uncertainty, and do so at a key time in the country’s transition to electric road transport.
CHARGE aims to support the adoption of long-distance EVs, enable EV travel and unlock economic development in rural areas, while also reducing the pressure on the national grid. It already has a fully-operational offgrid charging station at Wolmaransstad, on the N12 highway, in the North West province. Two more, located on the N3 between Johannesburg and Durban, are scheduled to start operating in May.
The company asserts that Sanral’s draft RSF policy changes exceed the agency’s statutory powers and try to exert control over land use planning, commercial market structuring and environmental regulation. Further, certain of the provisions could be unlawful and so subject to review, under the Promotion of Administrative Justice Act (PAJA). The RSF policy amendments turn Sanral into a regulator, market planner and potential market participant, thereby creating a conflict-of-interest situation. Retrospective provisions and the adoption of discretionary approvals bring the risk of lessening investor confidence and so slowing the development of infrastructure. And the agency’s proposed changes could also violate the Competition Act.
“The rollout of EV charging infrastructure is time-sensitive and capital-intensive,” highlights CHARGE co-founder and chairperson Joubert Roux. “It depends on a policy environment that is clear, lawful and supportive of investment. In its current form, the proposed RSF policy introduces uncertainty and overreach that could significantly constrain progress at a time when fuel prices are spiking and electric mobility is critical to be independent and safeguarded from geopolitical volatility.”
CHARGE wants Sanral’s RSF policy to adhere strictly with the agency’s mandate. The policy’s scope should be restricted to access and egress approvals (regulating the safe entry to, and exit from, national roads, by vehicles); maintaining road safety by ensuring that any roadside development does not undermine road safety or compromise road operations; oversight of the positioning of infrastructure within designated zones along national roads, to preserve the safety and integrity of the roads; and, “access levies administering fees associated with access to national roads, as provided for in legislation”.
The company also recommends that Sanral’s proposed RSF policy clearly define the appropriate legislation, such as the National Environmental Management Act for environmental issues and the Spatial Planning and Land Use Management Act, for spatial planning. Also, transformation requirements should be limited to the cases in which Sanral is a landowner or a contracting partner. It should also be confirmed that the new policy will be applied only prospectively, not retrospectively, nor on current applications. And clear administrative timelines, aligned with the PAJA and procedural fairness principles, should be brought in.
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