Department of Energy on its 2016 Strategic & Annual Performance Plan

Energy

06 April 2016
Chairperson: Mr FZ Majola
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Meeting Summary

PMG did not attend the meeting. Bellow are official minutes PMG recieved from Parliament. 

Meeting report

Draft Minutes of the Portfolio Committee on Energy

Date                :    Tuesday, 06 Wednesday 2016

Time                :    09:30 – 13:00

Venue              :    Committee Room 2, Ground Floor, 120 Plein Street

Agenda            :    Briefing by the Department of Energy on their Strategic Plan, Annual Performance Plan 2016/17 and Budget Vote Nr 26

Attendance by Committee Members

 

Status

 

Name of Member

 

Political Party

 

Present

 

 

 

 

 

 

 

 

 

 

Mr FZ Majola (Chairperson)

Mr RT Mavunda

 

African National Congress (ANC)

Mr G Mackay

Mr P Van Dalen

 

Democratic Alliance (DA)

Mr J Esterhuizen

Inkatha Freedom Party (IFP)

Apologies

Ms L Makhubela-Mashele

Ms T Mahambehlala

Ms Z Faku

Mr M Matlala

Mr M Dlamini

Mr MA Tlouamma

African National Congress (ANC)

African National Congress (ANC)

African National Congress (ANC)

 African National Congress (ANC)Economic Freedom Fighters (EFF)

AGANGSA

Department of Energy

Name

Designation

Ms T Joemat-Pettersson

Minister - Energy

Mr T Zulu

Director-General

Mr O Aphane

DDG – Policy and Planning

Mr M Maluadzi

Acting DDG: Corporate Services

Dr W Barnard

DDG: Projects and Programmes

Ms Y Chetty

Financial Officer

Mr A Hlungwani

Chief Director

Parliamentary support staff

 

Parliamentary support staff

 

 

Designation

Mr A Kotze

Committee Secretary

Mr S Maboda

Researcher

Ms N Baleni

Executive Secretary in the Office of the Chairperson

Ms V Makubalo

Committee Assistant

  1. Introduction

The Chairperson welcomed all present and indicated that the purpose of the meeting was to receive a briefing from the Department of Energy on the Strategic Plan, Annual Performance Plan 2016/17 and its Budget Vote Nr 26.

  1. Presentation

The Department of Energy, proceeded to make presentations which focused to the Committee on the following:

  • Introduction
  • Who we are
  • Organisational Structure
  • Revisions to Legislatives And Other Mandates
  • Strategic Outcome Oriented Goals
  • Entities Reporting to the Minister Of Energy
  • Energy Sector Synopsis
  • Strategic Plan Highlights
  • Key Focus Areas For The 2016/17 (FY)
  • NDP, MTSF and 2016/17 APP
  • Challenges & Interventions
  • Budget Vote Allocations

The presentation documents can be obtained from the Committee Secretary.

The presentation was concluded and Members were given the opportunity to make comments and ask questions, to which the delegation from the Department of Energy responded.

  1. Discussions
  • Eskom’s performance does impact and affect the performance of the Department of Energy.
  • The Minister of Energy pointed out that it is difficult to exercise oversight over another entity which reports to another department, in this case relating to Eskom who reports to the Department of Public Enterprises.
  • The Minister of Energy stated that there are still a number of issues which still need to be addressed, i.e. transmission and distribution lines as well as the functioning of the grid.
  • The Minister stated that the Department of Energy do meet frequently with both the Department of Public Enterprises as well as Eskom.
  • The Department acknowledged that the country do really heavily on coal for electricity generation and further emphasised the importance to diversify the energy mix.
  • With regard to diversifying the energy mix, one of the department’s key areas are the renewable energy sector, specifically solar and wind energy.
  • The department further emphasised the need to accelerate gas.
  • Members pointed that in the past they used to receive the investor compacts on entities which was very useful when conducting oversight over the performance of these entities.
  • Members raised concern regarding the estimated R141 billion that was allocated for expenses for certain projects and then subsequently amended, relating to the central Energy Fund (CEF).
  • The Department of Energy has secured the expertise of the Independent Power Producers Office (IPP Office) in the Nuclear Build Programme, and the Minister further indicated that she is satisfied with the advice given by the IPP Office.
  • The Department of Energy has appointed a procurement specialist with regard to the Nuclear Build programme, to assist and advice during the procurement processes.
  • The Minister stated that once the documents are finalised relating to the Request for Proposals for nuclear it will be tabled to the Portfolio Committee on Energy.
  • With regard to legislation, the department stated that the Electricity Regulation A/B (ERA) did go through the Cabinet processes, and was sent back to the Department, which relates to issues concerning the “end state” of the energy sector.
  • The department stated that the “end state” issues are very complex and further pointed out that the “end state” will not be reflected in the bill.
  • The department pointed out that the National Regulator A/B (NERA) was approved by Cabinet on condition. The condition relates to the introduction of review body. The aim is to segregate the “referee for the player”. A requirement will also be that the review body be chaired by the Minister of Energy.
  • The R200m for the nuclear branch relates to services which include: legal advice, supply chain, financial advice, nuclear advisors etc.
  • Funding for the outer years of the nuclear branch is still work in progress.
  • Members raised regarding the Central Energy Fund’s estimated R141 billion that was allocated for expenses for certain projects and then subsequently amended.
  • With regard to the tabling of the Intergovernmental Nuclear Agreements (where its tabling (section in the Constitution) is questioned in the Western Cape High Court) members stated that certainty is needed as the outcome of the court case will affect the Committee.
  • Members further agreed that an overarching dashboard is needed to ascertain and identify whether or not previous years targets of the department have been met or not. The issue is the continuous recycling of targets.
  1. Resolution(s)
  • That the Central Energy Fund brief the committee on the R141 billion for projects, preferably before the Budget Vote debate on 22 April 2016.
  1. Adjournment

The Chairperson thanked everyone for their attendance and participation and the meeting adjourned at 12:10.

____________________________                                                                            _________     

Mr FZ Majola                                                                                                              Date

Chairperson: Portfolio Committee on Energy

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