Competing companies, such as mobile network operators, will now be allowed to work together on new energy projects or negotiate jointly in the procurement of alternative energy supply after the minister of trade, industry & competition Ebrahim Patel gazetted exemptions to the Competition Act.
Energy users and energy suppliers block exemptions, which were published on Thursday, will allow companies to undertake joint investment in shared infrastructure, joint financing and risk-sharing in projects, and joint training and skills development.
Users will be able to negotiate jointly with suppliers for the purchase of electricity and related products and services.
“These exemptions will enable suppliers and users to increase and optimise supply capacity, reduce the cost of energy or improve the efficiency of energy supply, and secure backup or alternative supply to minimise the effects of the current electricity supply constraints,” Patel said.
SA’s mobile network operators welcomed the move, saying it would “significantly alleviate the burden on network operators” and help curb the detrimental effects of load-shedding on the industry.
The Association of Comms and Technology, which represents operators such as Vodacom, MTN, Rain and Telkom, have been asking government to implement interventions, such as a diesel rebate and the block exemption regulations that would lessen the effect of heightened load-shedding during the winter months on the sector.
The industry body previously warned that with no intervention from the government severe load-shedding during the colder months would make it difficult for mobile network operators to keep people and businesses connected. This is despite having made substantial investments in backup power solutions to improve network resilience during load-shedding.
Responding to the newly published exemptions, it said: “By addressing the challenges posed by load-shedding, we anticipate a substantial improvement in network reliability. This, in turn, will enable network operators to find solutions that will enable the provision uninterrupted and reliable telecommunication services to end users, fostering trust and confidence in the industry.
“We foresee that with this regulatory barrier eased, network operators will have the opportunity to invest in and implement backup power solutions, ensuring consistent service delivery even in the face of power outages,” the association said.
According to the department, the objective of the block exemptions was to assist businesses that supply and/or use energy to work together to secure backup or alternative energy supply and reduce energy costs.
Companies will, however, not be exempted from fixing the selling prices of goods and services or engaging in collusive tendering.
“The energy block exemptions will remain in effect until they are withdrawn by the minister. Energy suppliers and users who have entered into agreements or practices to collaborate under the block exemptions will be given reasonable notice to wind down such agreements or practices before the withdrawal date,” the department said in a statement.
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