DATE OF SUBMISSION: 03 DECEMBER 2009
NATIONAL COUNCIL OF PROVINCES
Â
QUESTION 196
QUESTION FOR WRITTEN REPLY
196. S Chen (DA-EC) to ask the Minister of Energy:
(1) Whether, during the past 12 months period for which information is
available, her department has taken any action to control the
increased gas prices in terms of the markets, the demand and supply;
if not, why not; if so, (a) what action and (b) what are the further
relevant details;
(2) Whether she will take any steps to verify that there is no price
collusion in the market; if not, why not; if so, what steps;
2) In respect of the past 12-month period for which information is
available, why there have been no price adjustments in the retail
market? CW289E
REPLY
(1) (a) LPG price is only regulated up to the refinery gate. In order
to promote accessibility and affordability of LPG for thermal
purposes the regulations pertaining to the pricing of LPG
supplied to residential customers were developed. These draft
LPG Price Regulations and the working rules were gazetted on 13
November 2009 for public comments.
(b) With regard to the issue of supply, demand, and pricing, the
Department has made numerous calls for the industry to be
cognisant of the impact of their practices. Security and
sustainable supply of energy, is one of the key policy
deliverables of my Department. Currently there is sufficient
supply and the reduction in prices will stimulate demand.
My Department will continue to engage with all the relevant
stakeholders to encourage them to invest in infrastructure and
to ensure that the industry is sustainable.
2) It is the competency of the Competition Commission to deal with
anti-competitive behaviour including price collusion in any
sector of our economy. However, it is envisaged that going
forward, the LPG Price Regulations will moderate the high
prices that are currently being charged by industry to
consumers.
(3) The retail price of LPGas is not regulated under the current
Regulatory environment. My Department announces the refinery
gate price on monthly basis. We have placed the Draft LPGas
Price regulations and the relevant working rules in the
Government gazette on 13 November 2009 for public comments.
Once finalised and approved the Regulations will empower
Government to regulate the retail price of LPGas.
[pic]