Thank you very much, Madam Speaker. Hon members, one of the greatest challenges of time is the issue of energy and energy security. These are so vital that most countries, including those in the developed North have elevated them to the level where they are regarded as a threat to national security, a threat to our planet and a threat to our economy. We are part of the global community and therefore we cannot avoid these biggest challenges of our generation. Without the energy sources, the very many and unprecedented quarters of postapartheid economic growth would have been but a mirage. We are facing a moment in history in which, as Barak Obama puts it: "The consequences of our inaction are so dangerous." We must act now and act boldly and imaginatively to safeguard our country's energy security.
One commentator recently said news reports flashing on computer screens these days seem increasingly to be related to the subject of energy. But what do they signify? They signify the extent to which energy has occupied a central focus in the development of global economies. Milan Kundera spoke about the struggle of memory against forgetting. Kundera may have been referring to a different era and a different context. We however do not have the luxury of forgetting the events of December of 2005 when our country experienced fuel shortages. A study we conducted in 2006 estimated that, should we experience total fuel supply disruptions, our economy would lose R1 billion a day. That was according to the 2005 prices. It will be a dereliction of our constitutional duty and an abomination not to take measures to prevent that possibility.
Accordingly, the memory of the wanton disruption which was caused by the recent electricity emergency is still fresh in our minds. This emergency disrupted all sectors of our economy and caused inconvenience never experienced before in the history of our country.
We are therefore presenting this Bill in order to ensure that we have the means to do proper planning not only for the supply of energy but also for the demand of that energy. In presenting this Bill, we would like to pay tribute to energy pioneers like Comrade Prakashnee Govender of the Congress of South African Trade Unions and comrade of our Fred Gono respectively of the National Union of Mineworkers and the entire leadership of these two organisations as well as National Economic Development and Labour Council for their guidance and activism during the preparation of this Bill.
The Bill makes provision for the tools that will enable us better to explain and predict demand. We need adequately to prepare for the periods when unexpected emergencies happen. In fact, we need to give practical expression to the dictum: In victory planned for defeat. This Bill ensures that we secure the supply of both energy carriers and feedstock. It contains sufficient instruments to prevent the possibility of what happened in January this year when all of a sudden we ran out of coal for local electricity generation whilst we were in the business, as usual, of exporting coal.
Madam Speaker, coming out of the unfortunate events of the supply of energy in 2005-06, Cabinet approved two energy security master plans in the latter part of 2007. One of the plans focused on electricity and the other on liquid fuels and energy security. These plans were developed in order to put in place a holistic strategy or plan for the energy sector in order not only for the short-term disruptions that were being faced by the country at the time but also to ensure the security of supply in the medium to long term. The effective implementation of energy security plans necessitated the need for a legal framework which would adequately empower us to ensure the unqualified implementation of all energy security aspects as envisaged in these master plans.
Madam Speaker, with this Bill we aim to ensure that diverse energy resources are available in sustainable quantities and at affordable prices to the South African economy in support of economic growth and poverty alleviation, taking into account environmental management requirements and interaction amongst economic sectors. It is for this reason that we are making provision for data and information related to energy demand to supply and generation mandatory by those who already posses it. We will also use this data to provide for energy modelling and planning. This will allow, amongst others, us to be able to conduct analysis which will assist us in promoting a sustainable and viable increase in the generation and consumption of renewable energies. We recognise that in order to deliver on our mandate, we need skilled and dedicated personnel. We also acknowledge that there is a dearth of skills in the key areas which require them. Further, to compound the problem, we are also competing with the private sector for these skills. It is for this reason that we are proposing the establishment of an institution which will be responsible for the promotion and implementation of energy efficient innovations and technologies, focusing not only on efficient consumption but also on efficient generation of energy.
This institute will also be responsible for energy research and development. The Bill enjoins us to make a concerted effort to ensure continued uninterruptible supply of energy. We will do this firstly by putting in place measures for the holding of strategic or contingency energy feedstocks and energy carriers at a national level and secondly by putting in place measures to ensure adequate investment in energy infrastructure as well as the maintenance thereof.
Madam Speaker, energy is somewhat of a dangerous commodity. This Bill establishes measures to minimise the negative impact that energy carriers may cause to health and the environment, as well as to address the safety aspect thereof while recognising the role played by other government departments in these areas. Members of this House understand the pain that is inflicted on our communities who, because of circumstances beyond their control, continue to use unsafe and unhealthy fuels. Whilst we are working towards finding a lasting solution to this problem, we have to work as a team to address the problems caused by the use of paraffin, coal and other traditional energy carriers. We are responding through this Bill to the outcry of all key industry stakeholders on the availability and in some instances the paucity of data and information used by state-owned entities like the Electricity Supply Commissioner in deciding whether special rates should be effected with respect to certain customers.
There have also been requests for the publishing of energy data that would be used to conduct analysis when reviewing energy demand and supply for previous years as well as to cater for future projections of such energy demand and supply. We have tried to balance the interests of those who need to provide data and information with those who need to access the data. Hon members, I put the Bill and I request that the Bill be adopted. I thank you.