THE ENERGY INTENSIVE USER GROUP OF SOUTHERN AFRICA

Established in 1999, the Energy Intensive User Group (EIUG) of South Africa is a voluntary, non-profit association of large scale, high intensity energy consumers whose members currently account for approximately 44% of the electrical energy consumed in South Africa.
The EIUG’s main concern is about the ongoing shortfall in generating capacity and anticipated above inflation price rises. In the circumstances it is imperative for the EIUG to engage Government, Eskom, NERSA and other stakeholders to ensure rational and economically sound solutions are found to these issues threatening the national competitiveness of major industry.
 With input and support from other key advocacy organisations such as BLSA, BUSA and the Chamber of Mines the EIUG undertook a strategic review, of how best it could position itself to respond to the changing national situation, and concluded that, for at least the next 5 years the EIUG must transform into a project-based organisation, if it is to provide the leadership the situation demands. This means identifying the critical interventions required to ensure a sustainable and viable outcome of the national electricity discourse. These projects will be launched on a “as needs” basis; when required, for example, when new tariffs or regulations are being considered. For each project the EIUG will identify and provide members and policy makers the requisite facts, technical information and reports in support of better policy making and planning. Currently the EIUG is, over and above its mandated role already giving technical advice and support to Ministries and other critical stakeholders on issues such as; The Country Electricity Plan (IRP), and the Medium Term Risk Mitigation Plan (to prevent national load shedding).

THE FUTURE ROLE OF THE EIUG

The EIUG needs to play several crucial roles in supporting South Africa achieve a sustainable and affordable energy industry.
We have envisaged a forum for Internal Advocacy (providing support to members on technical and policy issues), which ensures that members get clearer perspectives on issues related to the electricity crisis, provide opportunities for members to discuss possible solutions to these issues and gain a better understanding of possible regulatory changes and the impact on their organisations. Additionally, in a role of External Advocacy, the EIUG will assist key stakeholders (including local and national government, the Regulator and other political and technical bodies) by clarifying issues, and lending support, expertise and capacity where required, thereby ensuring clarity of response and effective lobbying on those issues.
Through the collective expertise of the membership, the EIUG is able to offer Technical Leadership to members and external stakeholders by assisting them with capacity and expertise where required, addressing the lack of capacity across many of the crucial stakeholders in Government and organised Business.
The EIUG will collate and disseminate facts and data on the energy industry, thereby providing members and stakeholders better insight and ensuring a quantitative decision making platform. Furthermore, the group would act as the Industry Monitor, providing insights and information on the likely changes to the industry to members and key stakeholders and clarity on the impacts across industry.