Energy30.05.2023

Solar firm pays R200,000 penalty after alleged tender shenanigans

The Competition Tribunal has confirmed that Gauteng-based solar energy firm Pacific Solar has agreed to pay a R200,000 fine as part of a consent agreement after the Competition Commission accused it of collusion.

Pacific Solar also agreed to refrain from any conduct that may violate the Competition Act and develop, implement, and monitor a competition law compliance programme as part of its corporate governance policy.

The Competition Commission accused Pacific Solar of colluding with another solar firm — Nert Technologies — with regard to the preparation and pricing of their bids in response to two separate tenders.

The first tender was issued by the Council for Geoscience in 2021 and related to the supply and delivery of multi-functional drill rigs. It included service and maintenance for three years.

In October 2021, the Council for Geoscience submitted its complaint alleging that Pacific Solar and Nert Technologies colluded when responding to its tender.

The second was a Department of Mineral Resources and Energy (DMRE) tender to appoint a panel of service providers to supply and instal home solar systems and maintain them for three years.

The DMRE submitted its complaint in May 2022 and also alleged that the two firms colluded in response to its tender.

Despite its acceptance of the R200,000 penalty and agreement to refrain from similar conduct in future, Pacific Solar has maintained its stance that it didn’t contravene the Act.

The Competition Commission, therefore, agreed to conclude the consent agreement without an admission of guilt, based on, among others, the following factors:

  • Pacific Solar is a small business and hasn’t previously been found guilty of contravening the Act; and,
  • Pacific Solar wasn’t the winning bidder for the Council of Geoscience’s tender. It was also removed from the DMRE-appointed panel of suppliers, and the department has subsequently stopped giving the firm any work.

Following its confirmation, the consent agreement concludes all proceedings between the Commission and Pacific Solar surrounding the alleged collusion.

MyBroadband tried to contact Pacific Solar and Nert Technologies for comment, but they did not immediately answer our questions.


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