A proposed carbon tax to be levied by the South African government could become as great a debacle as e-tolling, automotive roleplayers in the city heard at an Energy Seminar hosted by the Automotive industry Development Centre in Nelson Mandela Bay on Thursday 10 May.
Izak Swart, an Associate Director at Deloitte warned the automotive sector to monitor policy – with a policy paper due for release next month which “could have a profound impact on business.”
According to the proposed policy companies will pay an additional tax based on carbon emissions produced. Large manufacturers would be most impacted and the costs incurred by these companies would inevitably be passed down the supply chain and eventually to consumers, he said.
Swart added that the Department of Trade and Industry had developed numerous incentives to support energy efficiency including the Manufacturing Competitive Enhancement Programme – a cost sharing grant that is awarded to manufacturers that make investment in technology to make their production processes greener.
Eskom Engineering Consultant Gary Dysel urged the automotive sector to make use of incentives offered by Eskom to reduce the demand and cost of power.
Deysel said R200m in rebates had been set aside for energy saving projects of Eastern Cape companies alone to target a reduction in power demand of 40 megawatts.
He said in order to secure sustainable stability of power supply in the country it was “critical this year that we reduce national consumption by 10%”. The targeted reduced demand was 459 megawatts, the equivalent of power consumed by Port Elizabeth annually.
Eskom had established a new division in the Eastern Cape to focus on buying back energy of non-essential extra load from users he said.
John Mcinnes, Engineering Manager at Powertech Batteries said with the assistance of the AIDC’s Cleaner Production and Six Sigma Programme, Borbet then the 2nd biggest user of power in Port Elizabeth, had reduced its electricity bill by 10% and its gas consumption by 50% “which represent phenomenal savings”.
AIDC Supplier Development Manager Lance Schultz said the automotive sector was responding swiftly to implement measures to reduce power demand and the costs associated with electricity.
The AIDC in the Eastern Cape is fully owned by the Eastern Cape Development Corporation and is an implementing agency of the Eastern Cape Province, with specific focus on increasing the competitiveness of the automotive sector.
Alan Straton
Latest posts by Alan Straton (see all)
- South African Conquers Rats on the World Stage - 30 October 2026
- Old JPG on a Memory Stick? Vectorization Studio in Observatory Redraws Faded and Low-Resolution Logos by Hand - 30 October 2026
- ReAutomated Adds Robot Palletising and Case Packing Cells to Existing South African Packing Lines Without Stripping Out the Conveyors - 30 October 2026
- From a 5 KM Sprint to an Ultra: Punisher Sets Out Its Magaliesberg Obstacle Race Formats for First Timers, Teams and Fitness Clubs - 30 October 2026
- Rotary or Dual Action? Germiston’s Polisher Lists Its Machines, Buffs and Compounds for Car Paint and Metal Finishing - 30 October 2026
Switch off all Air-cons in South Africa… Electricity problem solved.