New Intellectual Capital in PlasticsSA’s stable
The Merseta recently participated in the Wits School of Governance offering in Research Contextualisation and enrolled a cohort of Merseta Chamber members into the 3-month programme.
Plastics|SA’s Kirtida Bhana was part of the group and passed with flying colours. We congratulate Kirtida on her achievement and a further ‘shout out’ on being Top Student in her group.
Kirtida has been an active member of the Plastics Chamber for almost 9 years and has coordinated and managed the Plastics Chamber Research projects on behalf of Plastics|SA. She is also the current acting Chairperson of the Plastics Chamber.
Well done Kirtida! We are proud of you and look forward to great innovations in the years to come.
No immediate power tariff impact
No immediate power tariff impact, but first court ruling portends material future hikes
The Eskom tariff increase for 2020/21 tabled before lawmakers this week provides no scope for any further hikes this year beyond those already sanctioned for April 1 by the National Energy Regulator of South Africa (Nersa) in previous price determinations and regulatory clearing account (RCA) rulings.
The tariff will, thus, rise by 8.76% this year, marginally above the 8.1% sanctioned under the fourth multiyear price determination (MYPD4) hikes announced in early 2019, owing to the partial liquidation of RCA adjustments sanctioned by Nersa following two separate MYPD3-related RCA applications by Eskom. The adjustments will increase the Eskom tariff to 116c/kWh from 106c/kWh.
The tariff will not be affected this year by either the recent adverse court ruling against the regulator relating to its mishandling of Eskom’s 2018/19 application, or by any possible upward adjustment that could flow as a result of recently concluded RCA public hearings covering that same financial year.
Even prior to the March 10 ruling, in which Judge Jody Kollapen reviewed and set aside Nersa’s 2018/19 determination, it became clear that neither it, nor the RCA
application could have an immediate impact on the tariff, owing to the requirement that Eskom’s tariff be tabled in Parliament on or before March 15. In the event, the hike was officially tabled on March 12.
Nevertheless, the court ruling, which is one of three live legal challenges by Eskom against Nersa determinations, is more than likely to have material implications for future tariff increases.
In his judgment, Kollapen described Nersa’s treatment of Eskom’s coal and employee cost in its 2018/19 determination as not only “highly problematic” but having departed from the MYPD methodology. Therefore, the decisions taken were “procedurally unfair, irrational and unreasonable”.
Absent any appeal, the utility has the right to make a supplementary application to Nersa within 60 days of it making its RCA determination for 2018/19 to recoup “any additional amounts which it has expended in the 2018/19 tariff year and to which it would have been entitled had the original tariff determination been made lawfully.”
These additional amounts, which are likely to run to billions of rands, should be “added to the RCA balance and liquidated in accordance with additional tariff increases to be determined by Nersa”.
The regulator is expected to make its 2018/19 RCA determination before the end of the month, or possibly early in April.
In parallel, the courts will now review the merits of Eskom’scase against Nersa’s treatment of the R69-billion in government support announced for Eskom in the 2019 Budget.
In February, Kollapen turned down Eskom’s application for urgent relief on the matter, which he said would be evaluated as part of the second phase, or ‘Part B’, of Eskom’s contestation of this aspect of Nersa’s MYPD4 determination, which governs the utility’s tariff increases for the three-year period to March 31, 2022. It is not yet certain whether or not Kollapen will preside over Part B.
Comment Guidelines
Eskom regulations GM Hasha Tlhotlhalemaje tells Engineering News that Part B of the review is likely to be heard towards the end of June, with Eskom scheduled to file its supplementary founding affidavit by mid-April. Simultaneously, Eskom will push ahead with its review of Nersa’s RCA decision for years two, three and four of the MYPD3 period, for which it was granted R32-billion, rather than the R67-billion it had originally sought. It is also considering a review of the RCA for year five of the MYPD3.
Tlhotlhalemaje said that Eskom hoped that the legal processes could be wrapped up in time to influence the 2021/22 tariff, but also acknowledged that any potential appeals could delay the conclusion of the matters. For Eskom, the 2018/19 judgment set an important precedent, as it states that Nersa cannot deviate from its methodology without consultation. “The other takeaway for us is that, if Nersa decides to make a certain decision, it must substantiate that decision, it can’t just say that it is applying its judgement.
This article was published by Creamer Media’s Engineering News on 13 March 2020.
The Power to Protect
When developing transport solutions, designers strive to find the ideal balance between high material performance, competitive pricing, style, comfort, safety, fuel efficiency and minimal environmental impact.
Innovative plastics are a key contributor, because:
- Plastic components weigh 50 percent less than similar components made from other materials, which means a 25 to 35% improvement in fuel economy.
- For every kilogram lost, your car will emit 20 kilograms less of carbon dioxide over its operating life.
- Plastics offer lightweight solutions that fulfill essential safety requirements such as fire safety.
Airplanes are a good example of how plastics and design innovation are connected in a highly modern and material challenged application. Since the 70s, the use of plastics in airplanes has grown from 4 to around 50%.
In the automotive industry, plastics allow for energy absorption, weight reduction and innovative design, while contributing to passenger safety. Features such as shock absorption for bumpers, suppression of explosion risks in fuel tanks, seat belts, airbags and other life-saving accessories such as durable plastic safety seats to protect young passengers make plastics the safest material for automotive applications.
Plastics are also in the vanguard of sustainable innovation, with the average car containing 120 kilograms of plastics (around 15% of its total weight). Modern concept cars are a perfect example of how innovation made possible with plastics also brings environmental benefits.
Courtesy PlasticsEurope.
Plastics in Agriculture
The use of plastics in agriculture helps farmers increase crop production, improve food quality and reduce the ecological footprint of their activity. Not only do plastics allow for vegetables and fruits to be grown throughout the year, no matter the season, these products are also usually of better quality than those grown in an open field.
Innovative and sustainable solutions: Thanks to the use of different plastics in agriculture, water can be saved and crops can even be planted in deserts. Plastic irrigation pipes prevent wastage of water and nutrients, rain water can be retained in reservoirs built with plastics, and the use of pesticides can be reduced by keeping crops in a closed space such as a greenhouse or, for mulching, under a plastic film.
Greenhouses and tunnels
Greenhouses and tunnels are like intensive-care units. Plants are exposed to the sunlight and can grow in ideal conditions, with protection from harmful external conditions.
Plastic reservoirs and irrigation systems
When combined, plastic reservoirs and plastic irrigation systems make an essential contribution to water management. Water can be stored in dams covered with plastic to avoid leaking and distributed via pipes, drop irrigation systems and systems for water circulation.
Silage
This application, which was developed to store animals’ grain and straw during the winter, is another proof of the value of plastics. Plastic films used to store silage are resistant and the content can be stored for years.
Other applications
Include boxes; crates for crop collecting, handling and transport; components for irrigation systems like fittings and spray cones; tapes that help hold the aerial parts of the plants in the greenhouses, or even nets to shade the interior of the greenhouses or reduce the effects of hail.
A wide range of plastics are used in agriculture, including, polyolefin, polyethylene (PE), Polypropylene (PP), Ethylene-Vinyl Accetate Copolymer (EVA), Poly-vinyl chloride (PVC) and, in less frequently, Polycarbonate (PC) and poly-methyl-methacrylate (PMMA).
Recycling and recovery opportunities: At the end of their life cycle, agricultural plastics such as greenhouse covers can be recycled. Once retrieved from the fields, plastics are usually washed to eliminate sand, herbs and pesticides, before being ground and extruded into pellets. The material can then be used again in the manufacturing of articles such as outdoor furniture.
Courtesy of PlasticsEurope.
Plastic piping – supplying our communities
Plastic piping networks form an integral, expensive, long term and extremely important part of the infrastructure of this country.
Plastic piping is used across the complete spectrum of many industries – mining, civil, irrigation, industrial, telecommunication and building. Around 150 000 tons of pipe (PVC and HDPE) is produced annually in South Africa, representing many thousands of kilometers.
High Density Polyethylene (HDPE) piprd are known for their durability, flexibility, and overall resistance to environmental stress. They are also leak-free and corrosion resistant.
The integrity of these networks, built up over many years is of critical importance, serving the water supply and sewage disposal needs of many millions of people.
Plastic is clearly no longer an alternative pipe material, but has grown to a dominant position in piping systems worldwide, with an estimated share of more than 50%.
South Africa is a dry country and water is a scarce resource. With increasing demand and inconsistent rainfall, we can no longer afford the huge losses in pipelines (estimated to be in the order of 40%). The need is for piping systems that are leak-free and durable for extended lifetimes, up to 100 years.
HDPE and PVC pipes answer this call with distinction. In addition, it is highly suitable for the rehabilitation of old pipelines.
For more information visit www.sappma.co.za (SA Plastic Pipe Manufacturers Association)
Who will really benefit from increased levies raised on plastic bags?
South Africans breathed a collective sigh of relief last week when Finance Minister Tito Mboweni announced that the tax threshold of income earners has been lowered and when nothing came of the dreaded VAT increase during the 2020 Budget Speech.
Whilst it was good news for consumers, the Minister made it clear that certain other taxes and levies would need to be raised in order to bolster the State’s coffers. To this end, he announced an increase in the plastic bag levy from 12c to 25c at the beginning of April 2020. Moreover, the Budget Review revealed that National Treasury will also be consulting on extending the current levy on plastic bags to all single-use plastics used for retail consumption, including plastic straws, utensils and packaging in 2021. An assessment of the current levy, including a clarification of the tax treatment of compostable bags, will be undertaken.
According to Plastics SA Executive Director Anton Hanekom, Minister Mboweni’s announcement of the increased plastic bag levy was clearly framed within the context of the green economy and conveyed the impression that the funds raised will be used to mitigate climate change.
“If the expected R250 million generated from raised levies is used to boost recycling and grow a circular economy, we would welcome and support the Minister’s announcement. However, past experiences (such as the failed Buyisa e-Bag initiative) have shown that Government views the plastic bag levy as an easy way to raise funds to pay for other projects that have nothing to do with the environment,” Hanekom says.
Plastics|SA calculates that almost R2 billion was raised through the levy on plastic carrier bags since it was first introduced in 2004. The levy was applied to the manufacturers of the plastic bags, but passed on to consumers. Bags were prescribed to have a thickness of 30 microns to aid recycling and promote reuse, in terms of an agreement that was reached between the departments of environmental affairs, labour and businesses.
“A section 21 company, Buyisa-e-Bag, was established to administer the funds by promoting waste minimisation and awareness initiatives in the plastics industry, expanding collector networks, creating jobs, as well as kick-starting rural collection by empowering Small Medium and Micro Enterprises (SMMEs) and creating additional capacity in non-governmental organizations (NGOs). However, the project quickly failed and less than half of the money raised went towards recycling projects. The rest was channelled into the National Revenue Fund and allocated to government departments,” Hanekom explains.
Despite the lack of government funding, the South African plastics recycling industry continued to record year-on-year growth. In 2018 alone 352 000 tons of plastics were recycled into raw material, achieving an impressive input recycling collection rate of 46.3 % for all plastics. It created permanent employment for 7 800 people and a further 58 500 income-generating jobs during this year.
“In recent years the plastics industry has made important strides forward aimed at addressing the issue of plastic bags polluting the environment. For example, plastic bag manufacturers agreed to remove fillers in order to produce bags that are fully recyclable. In addition, recycled plastic material is now used to produce most of the carrier bags sold in South Africa today. We have created an end-market for recycled plastic products and dramatically reduced the amount of waste being sent to landfill. By ensuring that the products we create become part of a circular economy, we create a win-win situation for the environment and for the industry,” Hanekom says.
“The plastics and packaging industries continue to work in close consultation with the Department of Environment, Forestry and Fisheries (DEFF) and other interest groups around developing an Extended Producer Responsibility scheme. It is our sincere hope that the money raised through the new plastic bag levy will be ring-fenced for the recycling industry and that the entire process will be managed with transparency, accountability and clear communication to all the parties concerned,” Hanekom concluded.
For more information, visit www.plasticsinfo.co.za