Energy Minister Jeff Radebe has previously welcomed the ruling in the application to interdict the signing of the power purchase agreements for the 27 independent power producers projects. Picture: Courtney Africa/ANA
JOHANNESBURG - Energy Minister Jeff Radebe  said last week that a percentage  of procurement contracts  for the supply of diesel to the  mining sector, defence and  state-owned enterprises should  be reserved for black-owned  petroleum companies. 

Speaking at the launch of  the Black Energy Professionals’  Association last week, Radebe  said: “The area of supply of  diesel to the mining sector,  defence and state-owned companies  is an area that should  have set asides for black-owned  petroleum companies. 

“These are major consuming  industries that can contribute  to radical socio-economic transformation.”  Avhapfani Tshifularo, executive  director of the South  African Petroleum Industry  Association (Sapia), said on  Friday that the body – which  represents the main petroleum  and liquefied petroleum gas  companies in South Africa –  was not aware of the plans to  have the set asides.  Radebe said transformation  in the country’s oil and gas sector  had not been “at the pace  that we expected”. 

He said the Department of  Energy would unlock opportunities  in the fuel retailing  sector, which he said had gross  under representation of African  women and men. 

He said the department was  conducting an audit that would  be used as a baseline from  which transformation targets  for oil companies would be set. 

He said the department had  started with work to align the  Liquid Fuels Charter to the  Broad-based Black Economic  Empowerment (B-BBEE) Act  “and to ultimately develop a  sector-specific code of good  practice in order to ensure compliance  with the B-BBEE Act.” 

Tshifularo said Sapia had  been in discussions with the  government about the alignment  of the charter to the  B-BBEE Act.  Trade and Industry Minister  Rob Davies last year published  a proclamation on the  alignment of the liquid fuels  charter and the BBBEE. 

The  proclamation said a sector code  would be adopted after “a structured  inclusive engagement”  and negotiations between the  Department of Energy, the petroleum  and liquid fuels industry  and other stakeholders.  It said a draft B-BBEE  aligned Petroleum and Liquid  Fuels Sector Code would be  agreed to by all the stakeholders,  submitted to the Minister  of Trade and Industry for issuance  by notice in the Gazette  for a 60-day public commentary  period before its approval as a  final binding document. 

Radebe said the recent signing  of power purchase agreements  between Eskom and 27  independent power producers  (IPPs) for renewable energy  projects would enhance black  participation in renewable  energy.