A Gauteng-based solar energy firm, Pacific Solar Technologies, had agreed to pay a R200 000 administrative penalty, the Competition Tribunal said yesterday.
Pacific Solar is a small business and has not previously been found guilty of having contravened the Act.
This after the solar firm was accused of collusion by the Competition Commission.
The alleged collusion related to two separate tenders involving the Council for Geoscience and the Department of Mineral Resources and Energy (DMRE), respectively.
The tender issued by the Council for Geoscience in 2021 was for the supply and delivery of multi-functional drill rigs with service and maintenance for a period of three years. The DMRE tender was for the appointment of a panel of non-grid service providers to supply, install and maintain solar home systems for a three-year period.
The consent agreement stems from two separate complaints against Pacific Solar and another firm, Nert Technologies for alleged collusive tendering.
In October 2021, the Council for Geoscience submitted a complaint to the Commission alleging that Pacific Solar and Nert Technologies agreed or engaged in a concerted practice to tender collusively when responding to its tender. The Commission’s investigation found that the firms assisted each other to prepare and price their bids and that their conduct amounted to collusive tendering.
In May last year, the DMRE submitted a separate complaint to the Commission, alleging that the two firms tendered collusively in response to their tender. The Commission’s investigation concluded that they had assisted each other to prepare and price their bids in response to the DMRE tender-and that their conduct amounted to collusive tendering.
The Tribunal said in terms of the consent agreement, Pacific Solar Technologies had agreed to refrain from engaging in any conduct that might be in contravention of the Competition Act in the future. It also agreed to develop, implement and monitor a competition law compliance programme as part of its corporate governance policy.
Although Pacific Solar agreed to the terms of the consent agreement, including paying the R200 000 administrative penalty, it did not admit that it contravened the Act, as alleged by the Commission.
“The Commission, in turn, agreed to conclude the consent agreement with Pacific Solar without an admission of liability based on, among others, the following factors, read with the remedies contained in the consent agreement.
“While Pacific Solar was included in the panel of service providers in respect of the DMRE tender, it was subsequently removed from the panel and the DMRE stopped providing the firm with any work."
Following confirmation as an order by the Tribunal, it said the consent agreement concluded all proceedings between the Commission and Pacific Solar in relation to the two complaints.
Reacting to the order yesterday, Competition Commission spokesperson Siyabulela Makunga said collusion impeded competition and if it remained undetected, it could easily impact on the exponential increase of prices in a particular market.
“The Commission is satisfied that the parties agreed not to collude henceforth, but adopt competition law in their governance company policies. Their decision to settle with the Commission places them on a path of good corporate citizenship,” Makunga said.
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