Madam Speaker, in the light of the general lack of energy supply predicted for the future, in particular the so-called Eskom crisis experienced since 09 January 2008 this year, the inept handling of the situation by government and Eskom of the electricity crisis, as well as the fuel crisis we experienced in 2006, it is clear that a very compelling reason exists for the existence of legislation to regulate the way in which energy affairs are being conducted. Concerns relating to the exercise of powers - or rather a lack thereof - in determining the minimum level of energy stocks have emerged, following the two crises and I venture to say that another crisis is still awaiting us. I say this because, as pointed out in the Budget speech earlier this year, concerns and discussions, of which the hon Minister is aware, have already raised the possibility of a fuel crisis regarding the 2010 Soccer World Cup. In fact, due to the current lack of capacity relating to oil refining and an apparent lack of international oil companies making further investments in the oil industry in terms of oil refining capacity in South Africa, we have resorted to importing fuel in its refined form in addition to our current oil refining capacity. We know the discussions and planning regarding the future construction of possible oil refining capacity by PetroSA and Sasol in the market. But we are concerned about the timeframe for the implementation of such projects in light of our current refining shortage.
The disappointing failure and embarrassment relating to Eskom is well known, so too are the reasons therefor. As such, government's attempts, as sole shareholder of Eskom, need to increase in terms of making Eskom the reputable institution it was before. The latest downgrading of Eskom's credit rating is in itself worrying as it has a negative impact on the cost of borrowing by Eskom and therefore on the price the consumer is expected to pay for electricity.
Our views and ways of solving the electricity crisis are well known and contained in a number of discussion documents which have been presented to the hon President. The most important issue would be the restructuring of the electricity industry to allow more room for independent power providers, and coal generation by large companies to provide electricity to the national grid. This issue requires more immediate and serious attention. The National Energy Bill, though the product of many years of consultation, is unfortunately still subject to improvement. One important last-minute change by the committee was the deletion of one of the most important functions of the South African National Development Institute, or rather Sanedi. It is not clear why, when the reasons, motivations and justification for the development of renewable energy are known to everyone, which would include the Kyoto Protocol, climate warming and a generally accepted notion for the development of technology in the direction of renewable energy, that this particular function was removed as one of the three main functions of Sanedi. This is particularly so when energy efficiency and energy development in general, excluding oversight are nuclear energy, has been included as its main functions.
The shortsighted response to the deletion of this function, with particular reference thereto on the basis that the department will be in a better position to deal with it, is not credible due to the historic lack of interest it has received from the department. An important issue is the responsibility ascribed to the Minister that an integrated energy plan be gazetted on an annual basis. Hopefully this will ensure continued and realistic evaluation of the real position regarding the status of the availability of different sources of energy as a whole and so ensure timeous response to prevent potential crises even before they arise. It is therefore submitted that although the Bill can be supported in terms of its objective and the formation of Sanedi, it unfortunately does not address a fundamental opportunity to ensure that renewable energy receives the necessary attention. I thank you.