国际可持续发展研究所-停电和倒退：2023年南非的能源补贴

SouthAfrica’sEnergySubsidiesInventory,2023

Data,Definitions,andReferences

AnnaGeddes,MaxSchmidt

March2024

Thisdocumentprovidesadatatable,subsidyandsupportdescriptions,andreferencesfor

theInternationalInstituteforSustainableDevelopment’ssubsidyinventoryforSouthAfrica,publishedin2024.Thisworkdrawsuponapreviousstudyo

fSouthAfrica’sEnergyFiscal

Policies,

publishedin2022.

1

DataTable

Thisannexupdateisanaccompanimentto

MappingIndia’sEnergyPolicy2023.

Overthelastfewyears,IISDhasbeenpublishinganannualupdateofgovernmentsupportforenergyalongwithgovernmentreceiptsunderitsflagshipstudytitledMappingIndia’sEnergy

Policy.ThestudyaimstoimprovetransparencyandsupportGovernmentofIndia’s(GoI)

owninitiativestoensurethatenergyismoreequitable,secure,andalignedwithIndia’slong-termnet-zeroemissionstargetby2070.

Table1.MajorquantifiedenergysubsidiesinSouthAfrica,fiscalyear(FY)2017/2018–FY2022/2023(ZARmillion)

#

Policyname

Fueltype

FY2017/2018

FY2018/2019

FY2019/2020

FY2020/ 2021

FY2021/2022

FY2022/2023

1

Value-added

tax(VAT)

exemptionforsalesof

gasoline,

diesel,and

illuminating

paraffin

Oilandgas

19,794

29,279

29,186

24,765

27,086

29,835

2

RefundofFuelLevyandRoadAccidentFundLevyforDieselConsumedinSpecific

Sectors

Oilandgas

3,025

5,846

8,767

7,943

8,817

9,786

3

Petroleum

AgencySouthAfrica:

Subsidiesonproductsandproduction

Oilandgas

87

98

127

91

93

94

4

Generalfuel

levyfreezeandreduction

Oilandgas

12,592

5

Government

grantsfor

Petro-SA

trainingon

projects

Oilandgas

12

4

4

7

7

7

6

FiscalfundingfortheNew

Multi-Product

Oilandgas

1

1

0

2

0

0

2

Pipeline

Projectby

Transnet

7

FreeBasic

Electricity

(FBE)access

Electricity

7,883

8,698

9,507

10,454

10,431

10,603

8

Integrated

National

ElectrificationProgramme

(INEP)

Electricity

5,521

4,819

4,496

3,033

4,459

5,302

9

Energy

efficiencyanddemand-sidemanagementgrantfor

selected

municipalities

Electricity

203

215

227

193

221

223

10

Fundingfor

water

transportationprojects

Coal

615

534

761

527

600

1,463

11

CleanerFossilFuels

Programme

Coal

100

81

99

93

92

0

12

SouthAfricanNuclear

Energy

Corporation:

Othertransferstopublic

corporations

Nuclear

574

587

790

950

935

990

13

Exemption

fromcarbon

tax

Multiple

N/A

N/A

24,570

42,290

44,660

47,420

Total

37,815

50,162

78,535

90,348

97,401

118,317

Notes:Thisisanon-exhaustivelistofidentifiedenergysubsidies.Zerovaluesmayindicateanabsenceofdata,notnecessarilytheabsenceofsubsidies.

Sources:Items1,2,4,5,6,7,8,10,11:OrganisationforEconomicCo-operationand

Development(OECD),2023a.Items3,9,12:NationalTreasury,2023b.Item13:authors’owncalculationsbasedonDepartmentofForestry,FisheriesandtheEnvironment,2023;Eskom,2023;Sasol,2023.

3

DescriptionsofIdentifiedSubsidiesandOtherSupport

Foramoredetaileddefinitionofsubsidiesandotherformsofgovernmentsupport,seetheMethodologysectionoftheFossilFuelSubsidyTracker,

/methodology/.

OilandGasSubsidies

VATexemptionforsalesofgasoline,diesel,andilluminatingparaffin(1)

AccordingtotheValue-AddedTaxActof1991,gasoline,dieselfuel,andilluminatingparaffin(kerosene)areexemptfromtheVATnormallyleviedonsalesofmostproductsinSouth

Africa(inthecaseofenergyproducts:15%fromApril1,2018,topresent;14%previousto

that).ConsideredataxexpenditureinSouthAfrica’sbudgetsinceFY2005/2006,this

measure“iscalculatedbyestimatingthevalueforsalesandmakingassumptionsabouttheestimatedvolumesusedbyfinalconsumers”(OECD,2023b).AccordingtotheOECD

(2023),sinceFY2006/2007,ithasbeenassumedthat20%ofgasolinesalesand90%of

dieselsalesinSouthAfricaareusedforbusinesspurposes;thus,thosepurchasesareexemptfromVAT(OECD,2023b).

RefundofFuelLevyandRoadAccidentFundLevyforDieselConsumedinSpecificSectors(2)

ThefuellevyisdirectedtotheNationalRevenueFund,whiletheRoadAccidentFund(RAF)levygoestotheRAF,compensatingthoseinjuredinroadtrafficaccidents.Forthepast30years,theRAFhasbeeninsolvent.In2016,itwasannouncedthatitwouldbereplacedbyaRoadAccidentBenefitSystembasedonsocialsecurityprinciples,whichwouldsucceedthecurrentliabilityinsurancesystem.

ConsumersofdieselfuelinspecificprimaryproductionsectorshavebeenrefundedacertainpercentageofthefuellevyandRAFlevysince2000.Thesesectorsincludeland(agriculture,forestry,mining),offshore(commercialfishing,coastwiseshipping,offshoremining,coastalpatrol,marineresearchandrescue),railfreighttransportandharbourvessels,andlarge

peak-electricity-generatingplantswithacapacityexceeding200MWperplant(since2006)(Bridleetal.,2022;OECD,2023b).

PetroleumAgencySouthAfrica:Subsidiesonproductsand

production/governmentgrantsforPetroSAtrainingonprojects(3&5)

Inthepast,thePetroleum,OilandGasCorporationofSouthAfrica(PetroSA)hasreceivedtwodifferentkindsofstatesupport.Listedexplicitlyassubsidiesinthe2020

budgetreview,thestate’snationaloilcompanywasgrantedsubsidiesforitsproductsand

4

productioninanon-transparentway.Similarly,nodisaggregateddatacanbefoundforthe“trainingonprojects”thatPetroSArecordsinitsannualreports(OECD,2023b).

Generalfuellevyfreezeandreduction(4)

Anewsubsidywasintroducedinresponsetotheglobalenergycrisis:thegovernmentfrozethegeneralfuellevyonpetrolanddieselinFebruary2022andthenreduceditbyZAR1.50(USD0.90)perlitrefromApriltoJune(OECD,2023b).

FiscalfundingfortheNewMulti-ProductPipelineProjectbyTransnet(6)

Thisfundingreferstosupportforamulti-productpipelinethattransportsdieselfuel,

gasoline,andjetfuelbetweenDurbanandJamesonPark.Theprojecthasreceivedfiscal

contributionsthatcanbecountedasbudgetarysupportfortheproductionandconsumptionoffossilfuels(OECD,2023a).

ElectricitySubsidies

FreeBasicElectricity(FBE)access(7)

Since2003,thegovernmentprovidedanFBEallowanceofatleast50kWhto

disadvantagedhouseholdswithaconnectiontothenationalelectricitygrid.Deemedsufficienttoprovidebasicservices,thismeasureisfundedthroughtheso-called“localgovernmentequitableshare”thatistransferredtomunicipalitiesbythegovernmenttosupport,amongotherthings,theirprovisionof“freebasicservices,”suchaswater,

sanitation,electrification,andwasteremoval.Itsfossilfuelsupportiscalculatedasfollows:Theshareofelectricityon“localgovernmentequitableshare”spendingismultipliedbythenumberofhouseholdsreceivingFBEacrossSouthAfricaandtheshareofelectricity

producedfromcoal(OECD,2023a).

IntegratedNationalElectrificationProgramme(INEP)(8)

In1999,SouthAfricaputtheINEPinplace,whichmakesseparatepaymentsofgrantsto

municipalitiesandtransferstoEskom.Before2019,transferstoEskomwereroughlytwicethosetomunicipalities.However,the2019BudgetreducedtheINEPbyZAR58.4millionin2019/2020andasmuchasZAR558.8millionin2020/2021.Inbothcases,thefundswerereallocatedtotheUrbanSettlementsDevelopmentGrantintheDepartmentofHuman

Settlements(OECD,2023a).

Energy-EfficiencyandDemand-SideManagementGrantforSelectedMunicipalities(9)

Thisgrantfundsselectedmunicipalitiestoimplementprojectswithafocusonpublic

lightingandenergy-efficientmunicipalinfrastructure.Itcontinuestomakeprovisionfor

municipalitiestousefundingfromtheEnergy-EfficiencyandDemand-SideManagement

GrantforPlanningandPreparingfortheEnergyEfficiencyinPublicInfrastructureand

BuildingProgramme.Ultimately,theprogramaimstocreateamarketforprivatecompanies

5

toinvestinthelarge-scaleretrofittingofmunicipalinfrastructure,paidbackthroughthesavingsonenergycostsachieved(NationalTreasury,2023b).

CoalSubsidies

FundingforWaterTransportationProjects(10)

TheTrans-CaledonTunnelAuthorityhasbeenreceivingdirecttransfersfromthe

DepartmentofWaterandSanitationtosupportprojectssupplyingwatertopowerstationsandcoalmines.Amongothers,Eskom’sthermalpowerstationsandSasol’spetrochemicalinstallationsarestrategicusersofthewaterfromoneofthesupportedprojects(OECD,

2023b).

CleanerFossilFuelsProgramme(11)

Since2014,theSouthAfricanNationalEnergyDevelopmentInstitute(SANEDI)has

providedfinancialsupporttotwoprojectsthatrelyonanthracite,cokingcoal,andother

bituminouscoal(OECD,2023b).SANEDIistaskedwithcoordinatingpublicinterestenergyresearch,development,anddistribution.Derivingmostofitsrevenuefromtransfersfrom

theDepartmentofEnergy,SANEDI’sCleanerFossilFuelsProgrammecurrentlyconsistsofacarboncaptureandstorageprojectandafeasibilitystudyofshalegasinSouthAfrica

(OECD,2023b).

NuclearSubsidies

SouthAfricanNuclearEnergyCorporation:Othertransferstopubliccorporations(12)

SouthAfrica’sNuclearEnergyCorporationhasbeenreceivingadditionalfundingformanyyears.Explicitlynamedasasubsidyinthe2019budgetreview,thesameamountswere

renamed“indirecttransfers”inlaterbudgetreviews(NationalTreasury,2023b).Thenomenclaturalchangeofthesetransferswasnotaccompaniedbygreatertransparencyregardingexactlywherethesefundsaregoing.

CarbonTaxExemptions

Exemptionfromcarbontax(13)

Revenueforegonefromthecarbontaxwascalculatedviathefollowingcomponents:(1)thefixedcarbonpriceofZAR/tCO2eforagivenyear,(2)theMtCO2easSouthAfrica’scarbon

taxableindustrialemissionsforthemostrecentyear,

1

(3)theexemptionsforEskom(100%)andSasol(over90%oftotalemissions),and(4)aconservativeminimumcarbontaxrateof

1TheeighthNationalGreenhouseGasInventoryReport,SouthAfrica,2000–2020(DepartmentofForestry,

FisheriesandtheEnvironment,2023)providesdatafor2019.Thisdatahasbeenusedforcalculations,effectivelymakingtheassumptionthatemissionshavebeenconstantsincethattime.

6

60%onthetotalindustrialemissionsminusEskom’sandSasol’sexemptemissions.Twoaspectsshallbehighlighted.First,2019hasbeenchosenasthereferenceyear,asnomorerecentdataexistthatallowforgreaterprecision.Second,thecalculatedfiguresforgivenyearsarethelowerlimit,butthecarbontaxrevenueforegonecouldbemuchhigher,giventhetechnicalitiesandlackoftransparencyofexemptionstoproducersofindustrial

emissions.

Thevalueofthe3-monthdeferralofcarbontaxpaymentin2020hasnotbeencalculated.Technically,thedeferralconfersasubsidyequivalenttothevalueoftheinterestpaymentsthatwouldotherwisehavebeendueonanequivalent-sizedloan.

Non-QuantifiedSubsidiesDuetoaLackofData

Inadditiontothesubsidieslistedanddiscussedinthisreview,otheridentifiedsubsidies

havenotbeenquantifiedduetoalackofdataavailabilityorresources.However,theymaybeofsignificantvalueandcouldbenefitfromfurtherreview.Unquantifiedsubsidiesthatwereidentifiedinclude

.PetroSA’sring-fencedgrantincomefromtheCentralEnergyFundforshalegasexplorationandtraininganddevelopment;

.3months’deferralofthefirstcarbontaxpaymentinmid-2020;

.theCentralEnergyFund’sgrantfromtheDepartmentofMineralResourcesforfeasibilitystudiesfortheVaalDamprojects;

.incometaxdeductionsforexpendituresandlossesrelatingtoexplorationandpost-explorationspending;and

.subsidiestorenewableenergytechnologies.

Bailouts

ProvisionalAllocationforEskomRestructuring

Thestate-ownedelectricityutilityEskomhasrepeatedlybeenthroughrecapitalizationandhasbeenbailedoutmultipletimes(NationalTreasury,2023a).ThisprocessallowsEskomtoservicedebt,meetredemptionrequirements,andfundurgentoperationalimprovements.

Thissupportisnotcategorizedasasubsidyinthisworkbutstillcountsasaformofgovernmentsupportfortheenergysector.

7

Acknowledgements

Theauthorsofthisreportwouldliketothankthefollowingindividualsfortheirinvaluablepeerreviewcommentsandadvice:

.Dr.RicAmansure,SeniorResearcher,CentreforSustainabilityTransitions

.LieselKassier,MeridianEconomics

.Dr.TracyLedger,Head,EnergyTransitionProgramme,PARI

.Dr.NthabisengMohlakoana,Researcher,DepartmentofTechnology,PolicyandManagement,DelftUniversityofTechnology

TheauthorsarealsogratefultocolleaguesattheGlobalSubsidiesInitiativeofthe

InternationalInstituteforSustainableDevelopment,includingRichardBridle,Richard

Halsey,TaraLaan,andBathandwaVasi,whohelpedrefinethethinkingandanalysisandprovidedinputsduringtheinternalreviewprocess.WewouldalsoliketothanktheDanishMinistryofEnergy,Utilities,andClimateandtheNorwegianMinistryofForeignAffairsfortheirgenerousfinancialsupportoftheproject.Theviewsinthisreportdonotnecessarilyreflecttheviewsofthisfunderandshouldnotbeattributedtothem.

8

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