REPORT OF THE PORTFOLIO COMMITTEE ON ENERGY ON ITS ACTIVITIES UNDERTAKEN
DURING THE 4TH PARLIAMENT (MAY 2009 – MARCH 2014)
TABLE OF CONTENTS
1. INTRODUCTION
2. EXECUTIVE SUMMARY
3. OVERVIEW OF THE PORTOFLIO COMMITEE ON ENERGY
DURING THE 4TH PARLIAMENT BY THE CHAIRPERSON – HON. SISA NJIKELANA
4. OPERATIONAL
CONTEXT AND REPORT FRAMEWORK
4.1. National policies and directives that have an
impact on the energy sector
4.2. A brief profile Department of
Energy (DOE)
4.2.1. SoE’s/SoC’s within the DoE
4.2.1.1.
Regulators
4.2.1.2.
Research and DevelopmentEnergy
security
4.2.2.
Legislation
4.2.2.1.
Legislation
that directly mandates the DoE
4.2.2.2.
Non-core
legislation that also impacts on the DoE
4.2.3. Strategic outcomes of the department of energy
4.2.4.
Programmes
of the Department of Energy
4.2.4.1.
Programme
1: Administration
4.2.4.2.
Programme
2: Energy Policy and Planning
4.2.4.3.
Programme
3: Petroleum and Petroleum Products Regulation
4.2.4.4.
Programme
4: Electrification and Energy Programme and Project Management
4.2.4.5.
Programme
5: Nuclear Energy
4.2.4.6.
Programme
6: Clean Energy
4.2.5. Budget Allocations for the Department of Energy since 2010
4.2.6. Some of the key achievements of
the Department of Energy - DoE (2009 – 2014)
5. REFLECTION ON THE PCE PERFORMANCE
5.1. Mandate and functions of the Portfolio Committee on Energy
5.1.1. The Portfolio Committee on Energy, as a Committee
of the National Assembly, has as its mandate, in respect to the DoE, to:
5.1.2. The mandate of the Committee fulfils the
following functions (derived from Parliament’s strategic objectives):
5.2. Method of work of the committee
5.2.1.
Committee category
5.2.2.
Processing legislation
5.2.3.
Oversight visits
5.2.4.
Media Networking Sessions
5.2.5.
Expert Testimonies- inviting experts/specialists
5.2.6.
Energy Stakeholder Meetings
5.2.7.
Roundtable discussions
5.2.8.
Extra-Parliamentary Meetings
5.2.9.
Mailing list
5.3.
Committee
focus areas during the 4th Parliament
5.4.
Reflection
on the PCE performance as guided by its strategic objectives
5.5.
Reflection on the PCE oversight performance on
annual basis and on whether the objectives of its programmes were achieved
5.5.1.
2009 to 2010
5.5.2.
2010 to 2011
5.5.3.
2011 to 2012
5.5.4.
2012 to 2013
5.5.5.
2013 to 2014
5.6. Other activities the committee undertook in the period under review
5.6.1. Public hearings
5.6.2. Energy
Stakeholder Meetings
5.6.3. Roundtables
5.6.4. Legislation
5.6.5. Oversight trips undertaken
5.6.6. Study tours undertaken
5.6.7. International Work
5.6.7.1.
General international
work
5.6.7.2.
Engagement with
international bodies
5.6.7.2.1.
Joint
workshop with the Pan African Parliament (PAP) Committee on Energy
5.6.7.3.
International
Agreements:
5.6.8. Statutory appointments
5.6.9. Interventions
5.6.10. Petitions
5.6.11. Obligations conferred on committee by legislation:
5.6.11.1. Budget Review Process
5.6.11.2. Various
recommendations from the BRR Reports
5.6.12. Role and contribution of the PCE on areas of non-achievement by the DoE
5.6.13. Summary of outstanding issues
5.6.13.1. Outstanding issues from the minutes of the PCE
5.6.13.2. Outstanding issues from the Energy Stakeholders Meetings
5.6.13.3. Outstanding issues from engagements such as Climate Change, MDG’s, etc.
6. MISCELLANEOUS
7.
KEY
CHALLENGES EMERGING
8.
KEY AREAS
FOR FUTURE WORK AS GUIDED BY PARLIAMENT’S STRATEGIC OBJECTIVES AND PCE MANDATE
9.
RECOMMENDATIONS
GLOSSARY
OF ACRONYMS
ACSA Airports Company of South Africa
ADAM Approach to
Distribution Asset Management
AFS Annual
Financial Statements
AG Auditor-General
AGSA Auditor-General
of South Africa
APP Annual
Performance Plan
ATC Announcements
Tablings Committee
BASA Banking
Association of SA
BEE Black
Economic Empowerment
BBBEE Broad
Based Black Economic Empowerment
BFP Basic
Fuel Price
BRICS Brazil, Russia, India,
China and South Africa
BRRR Budgetary Review and Recommendations Report
BRP Budget Review Process
CDM Clean Development Mechanism
CEF Central
Energy Fund
CoGTA Department
of Cooperative Governance and Traditional Affairs
COD Carbon Oxygen Demand
COP Conference of the Parties
CSP Concentrated
Solar Power
DAFF Department of Agriculture,
Forestry and Fisheries
DBSA Development
Bank of Southern Africa
DEA Department of Environmental
Affairs
DoE Department
of Energy
DPME Department
of Monitoring and Evaluation
DPSA Department
of Public Service and Administration
DPW Department
of Public Works
DST Department
of Science and Technology
DTi Department
of Trade and Industry
DUT Durban University of
Technology
EDC Energy Development Corporation
EDI Electricity
Distribution Industry
EDIH Electricity
Distribution Industry Holdings
EE Energy
Efficiency
ERA Electricity Regulation Act
ESETA Energy Sector Education and Training Authority
ESM Energy
Stakeholder Meetings
EXCO Executive
Committee
FBE Free
Basic Electricity
FBAE Free Basic
Alternative Energy
FNRBA Forum of Nuclear Regulatory Bodies in Africa
GDP Gross
Domestic Product
GTL Gas to
Liquid
HDSA Historically
Disadvantaged South Africans
IAEA International
Atomic Energy Agency
IASTED International
Association for Science and Technology for Development
IDC Industrial
Development Corporation
IEA International
Energy Agency
IEC Integrated
Energy Centre
IEP Integrated
Energy Plan
INEP Integrated
National Electrification Programme
IPAP Industrial
Policy Action Plan
IPP Independent
Power Producers
IPU Inter parliamentary Union
IRENA International
Renewable Energy Agency
IRP Integrated
Resource Plan
ISMO Independent
System Market Operator
KZN Kwazulu
Natal
LNG Liquefied
Natural Gas
LPG Liquefied
Petroleum Gas
MDG Millennium
Developmental Goal
MP Member
of Parliament
MPAT Management
Performance Assessment Tool
MPRDA Mineral and
Petroleum Resource Development Act
MRGP Maximum
Refinery Gate Price
MTBPS Medium Term Budget
Policy Statement
MTEF Medium-Term
Expenditure Framework
MTSF Medium-Term
Strategic Framework
MYPD Multi Year Price Determination
MW Megawatts
NA National
Assembly
NDP National
Development Plan
NECSA Nuclear
Energy Corporation of South Africa
NERA National Energy Regulator Act
NERSA National
Energy Regulator of South Africa
NEPAD New Partnership for Africa’s
Development
NGO Non
Governmental Organisation
NGP New
Growth Path
NMPP New
Multi-Product Pipeline
NNEECC Nuclear
Energy Executive Coordination Committee
NNR National
Nuclear Regulator
NPO Non
Profit Organisation
NRWDI National
Radioactive Waste Disposal Institute
NT National
Treasury
NUMSA National Union of Mineworkers of
South Africa
OAG Office of the
Accountant-General
PAIA Promotion
of Access to Information Act
PAP Pan African Parliament
PAPSAPEI PAP-SA Parliament Energy Initiative
PASA Petroleum
Association of South Africa
PCE Portfolio
Committee on Energy (in the National Assembly)
PFMA Public
Finance Management Act
PICC Presidential
Infrastructure Coordinating Commission
PPA Petroleum
Products Act
R&D Research
and Development
RECORD Renewable
Energy Centre for Research and Development
RED Regional Electricity
Distributors
REFIT Renewable Energy Feed-In Tariff
REIPPP Renewable
Energy Independent Power Producers Programme
RET Renewable Energy Technologies
SABS South
African Bureau of Standards
SACC SA Calcium Carbide
SADC Southern
African Development Community
SALGA South African Local Government Association
SANEDI South
African National Energy Research and Development Institute
SARS South
African Revenue Service
SASDA South African Supplier
Development Agency
SCM Supply
Chain Management
SETA Sector
Education and Training Authority
SFF Strategic Fuel Fund
SIP Strategic
Integrated Projects
SMME Small, Medium and Micro
Enterprises
SOC State
Owned Company
SONA State of
the Nation Address
SOE State-Owned
Entity
SOOG Strategic
Outcomes-Oriented Goals
SWH Solar
Water Heater
TcF Trillion
Cubic Feet
TWh Terawatt
hours
UN United
Nations
UNDP United
Nations Development Programme
UWC University
of Western Cape
1.
INTRODUCTION
Section
55 (2) of the Constitution provides for Parliament and its committees to have
oversight over the executive and any state organ. Parliament’s committees are
the engine room that gives effect to that constitutional imperative and section
56 (a) provides for the National Assembly (NA) or any of its committees to
summon any person to appear before it to give evidence on oath or affirmation,
or to produce documents. Section 56 (b) provides for any person or institution
to report to it. During the 4th Parliament (2009-2014), the
Portfolio Committee on Energy (Portfolio Committee on Energy) gave effect to
those provisions through its role in legislating, oversight and hearing public
submissions on energy related issues. This guides the
role of the PCE in terms of Parliament and hence the PCE has at its mandate and
mission.
The overarching aim
of this report is to provide an
account of the Portfolio Committee on Energy work during the 4th
Parliament and to inform the members of the new Parliament of key outstanding
issues pertaining to the oversight and legislative programme of the Department
of Energy and its entities. It provides an overview of the activities the committee
undertook during the 4th Parliament, the outcome of key activities,
as well as any challenges that emerged during the period under review and
issues that should be considered for follow up during the 5th
Parliament. It summarises the key issues for follow-up and concludes with
recommendations to strengthen operational and procedural processes to enhance
the committee’s oversight and legislative roles in future.
Prior to highlighting
the work that the Committee has done over the past five years, it is imperative
to first provide an overview of the national policies that have an impact on
the energy sector. In one way or the other these policies also, whether
directly or indirectly, guided the work of the Committee. Secondly, key
achievement of the Department of Energy (DoE) over the five year period will be
highlighted. Thirdly, the key strategic objectives of the Portfolio Committee
on Energy and the implementation thereof will be detailed in this document –
this is the main focus of this document. The fourth and last part of this
document will highlight some of the focus areas of the Committee, key areas for
future work, key challenges and recommendations.
2.
EXECUTIVE SUMMARY
Operational Context and
Report Framework are presented where firstly National Policies and directives
that have an impact on the energy sector are presented. These include the
National Development Plan (NDP), the Industrial Policy Action Plan (IPAP), the
New Growth Path (NGP) and the Medium Term Strategic Framework (MTSF) (2009-2014), Medium Term Budget
Policy Statements (MTBPS) and the State of the Nation Addresses (SONA’s 2009-2014).
A summary of key information from the annual performance
plans and the strategic plans of the Department of Energy (DoE) and a brief
profile of the DoE is provided. On 10th May 2009, President Zuma announced his new Cabinet and the appointment of, amongst
others, the Minister of Energy. The new portfolios of some of the Ministers
necessitated a re-organisation, renaming and establishment of new departments.
Subsequent to the above announcement, the DoE was established following the
split of the Department of Minerals and Energy, which resulted in two
independent Departments. The aim of the DoE is to formulate energy
policies, regulator frameworks and legislation, and oversee their
implementation to ensure energy security, promotion of environmentally-friendly
energy carriers and access to affordable and reliable energy for all South
Africans. Hence this report focuses on the DoE, its entities, programmes,
budget and some key achievements of the DoE from 2009.
With
regards to the PCE Performance, the method of work of the committee is
discussed. The committee meetings were predominantly scheduled on a Tuesday
morning but other days were utilized if there were no plenaries. The PCE also
processed legislation which was given priority in terms of Committee
obligations. Other activities of the PCE included oversight visits where the
PCE visited various projects and programmes. The PCE also conducted study tours
as a whole or as a delegation of PCE MP’s. The Committee was also involved in
Media Networking Sessions to build and foster relations with journalists that
report about issues affecting Parliament. The PCE also invited expert
testimonies from time to time by inviting experts in areas to present to the
PCE as and when necessary. The PCE was also responsible for initiating Energy
Stakeholder Meetings which was to create a platform for public discourse in the
energy sector. There were four held. The PCE also held round table discussions
which were more informal meetings as compared to the Energy Stakeholder
Meetings. Finally the PCE also held public hearings.
The key focus areas of the
PCE are also discussed in this report. In terms of the key focus areas of the
PCE in the 4th Parliament is summarised in this section. Also
included are details of the oversight over the DoE and the State Owned
Entities’ (SOE’s) activities and programmes as well as financial and
operational oversight. The PCE also focused on the Energy Policy of the DoE, focusing on the
Independent System and Market Operator Bill, outstanding legislation and policy
documentation with regard to energy planning in general. The PCE assessed
Petroleum Regulation and looked at petroleum licensing, pricing and compliance
to policies. The PCE also focused on Electrification programmes, the industry
transformation, infrastructure and community uplift programmes. Another
area the PCE also focused on clean energy including energy efficiency,
renewable energy and climate change issues. In terms of nuclear the PCE
conducted oversight on nuclear energy including the envisaged 9600MW nuclear
roll out programme, nuclear safety, waste management including the National Radioactive Waste Disposal Institute and
nuclear policy. This report then proceeds to discuss how the PCE met the key
strategic objectives it had defined itself. This section looks at the committee
activities, including Committee Meetings and oversight visits from the period
2009 to 2014 for each of the strategic objectives.
The report also highlight, other
areas that the PCE was involved in and details the public hearings, energy
stakeholder meetings, round table discussions and workshops.
In terms of Legislation, the Independent
System and Market Operator (ISMO) Bill was the only legislation handled by the
PCE, the bill was compiled and submitted to the house for adoption but was not
adopted during the 4th Parliament. The oversight trips of the PCE
covered areas of; the oil and gas industry, energy efficiency, safety,
renewable energy, the Integrated National Electrification Programme, energy
from waste and the Solar Water Heater programme.
Regarding
study tours – the PCE undertook a study tour to Mozambique in 2009 where energy
security and the impact of climate change were assessed. Again in 2010, the PCE
undertook a visit to Mozambique to look at clean energy sources. In 2010;
Members of the Committee attended a renewable energy conference in Botswana and
a study tour was undertaken to France the aim of which was to gain an insight
on the nuclear energy programme. In 2012 the PCE conducted a study tour of
energy efficiency initiatives by visiting businesses in Cape Town. The
Committee also looked at Petroleum research by visiting the PetroSA Synthetic Fuel
Centre – University of the Western
Cape (UWC). In August 2013,
the PCE conducted oversight on Liquefied Petroleum Gas (LPG) by visiting
industrial site as well as household supply facilities. The PCE also conducted
study tours on co- and tri-generation at ABSA Towers and MTN in Gauteng and
studied the potential of landfill gas by visiting the Johannesburg Metro Municipality Landfill Gas to Energy
Project in 2013.
The report covers the
international work of the Committee. The PCE held a joint workshop with the Pan
African Parliament. The establishment of PAP-SA Parliament Energy Initiative
provides a platform for Parliamentarians dealing with energy issues to share
information on the best practices to foster oversight and legislate laws in
their respective countries to attain universal access to energy and energy
security.
International agreements,
statutory appointments and Petitions are highlighted in the report. In terms of
Petitions, the Chairperson, Hon
SJ Njikelana did receive a petition from the Office of the Speaker relating to
concerns/challenges raised by the community of Matatiele Local Municipality
(KZN) focusing on inter alia, energy issues.
In terms of future focus areas of work for the
Committee, there are various pieces of legislation and
policy documents that are still outstanding and this need to be presented to
the PCE for deliberation and comment. There are policies and bills outstanding,
example,
·
The DoE has a new draft Integrated Energy
Plan and Integrated Resource Plan and these needs to be finalized.
·
The Independent System Market Operator (ISMO)
Bill was deliberated in the Committee and submitted to the House for Adoption.
This was not adopted in the 4th Parliament and 5th
Parliament needs to follow up on this.
·
From the Energy Stakeholder Meeting on the
upstream sector, it emerged that policy challenges e.g. with some of the
amendments of the proposed Minerals and Petroleum Resources Development (MRPDA)
bill to the upstream sector, that need to be addressed as clear policy
directives are needed and the DoE is to formulate a plan on identifying the
challenges and a mechanism to address them.
The
PCE – a Parliamentary Committee born during this term - has operated fairly
well over the past 5 years notwithstanding that it conducted oversight on a
literally new department – an attribute that may ascribed to a maturing
Parliament. The DoE started operating independently 2010 whilst the PCE started
meaningfully operating in the same year. The first Chairperson, (currently)
Deputy Minister Elizabeth Thabethe, took office from 2009 to 2010 and was
replaced by Hon Sisa Njikelana from late 2010 until the end of the term.
The
Committee (and the Parliament as a whole) operated in a hostile global
environment when it comes to oil and gas specifically and the international
economy generally. This implied that whilst there were expectations on the DoE
to deliver on its programmes and meet targets that was not to be easy due to
such an unfavourable environment.
Compilation
of this legacy report has been enabled by a number of policy instruments,
guidelines and directives viz.:
It
is due to such enabling instruments that the legacy report will be value to the
5th Parliament especially when it comes to planning and guiding the
activities of the PCE for the next five years.
The
character of activities of the PCE has been anchored around and was guided by
the 5 core objectives of Parliament, the Strategic Plan of the PCE over and
above its statutory mandate. Cancellation of meetings and plans was minimal and
such has helped the PCE to attain it s goals. Cooperation amongst various
members as well as between the Chairperson and the rest of the Committee were
relatively positive.
Consistent
participation of members has assisted in running the meetings fairly well and
also optimising fulfilment of the objectives of the Committee. Scrutiny of DoE
work was enhanced by the Budget Review Process given the additional tools that
were introduced by the Money Bill Amendment Act. Furthermore the introduction
of the practice of engaging the entities such as the Office of Auditor General,
the Department of Performance Monitoring and Evaluation, the Finance and Fiscal
Committee, the Audit and Risk Committee and conducting Quarterly Performance
Reports has strengthened the PCE’s oversight capacity and effectiveness.
A
number of innovative ways of advancing the work of the PCE were also introduced
and such induced a positive response from the stakeholders and the public at
large. Such activities were:
Overall
challenges range from the struggle to maximise the impact of the PCE (including
lack of assessment thereof) as well as the partial responsiveness of DoE to
issues recommended by the PCE through Parliament. Multiple memberships of MP’s
to various Parliamentary Committees has deprived the PCE of opportunities to
maximise its performance. Staffing has unfortunately not been that stable viz.:
Utilisation
of the Oversight and Accountability Model still has to be fully exploited given
the potential depicted by the model. The late introduction of the Audit and
Risk Committee by the Office of the Auditor General to participate in the
Budget Review Process coupled with the intermittent invitation and involvement
of the Audit and Risk Committee (due to lack of experience and low familiarity)
means that this aspect has to be strengthened. Hence the impact of the Audit
and Risk Committee, amongst a host of oversights tools could not be verified.
The
PCE performed its duties and functions in keeping with its strategic plan
although some of the tools and enablers in the strategic plan were not
exploited.
The
work that the Portfolio Committee on Energy has dutifully done, the experience
it amassed, the legacy it is leaving behind will serve as valuable lessons and
stepping stone for the PCE into the 5th Parliament.
4.
OPERATIONAL
CONTEXT AND REPORT FRAMEWORK
4.1. National
Policies and directives that have an impact on the energy sector
Below are the energy
issues as identified in the National Development Plan (NDP), the Industrial
Policy Action Plan (IPAP), the New Growth Path (NGP) and the Medium Term
Strategic Framework (MTSF) (2009-2014) and the State of the Nation Addresses
(SONA’s 2009-2014).
The
National Development Plan (NDP)
The NDP sets the vision of the country for the next 20
years from 2011 to 2030. Amongst other things, the plan outlines measures that
have to be taken to eradicate poverty, increase employment and reduce
inequality by 2030. Regarding electricity the NDP envisages
that by 2030 South Africa will have an adequate supply of electricity and
liquid fuels to ensure that economic activity and welfare are not disrupted,
and that at least 95 per cent of the population should have access to grid or
off grid electricity. The plan proposes that gas and other renewable resources
like wind, solar and hydro-electricity will be viable alternatives to coal and
will supply at least 20 000MW of the additional 29 000MW of electricity needed
by 2030. Other recommendations of the plan include diversifying power sources
and ownership in the electricity sector, supporting cleaner coal technologies,
and investing in human and physical capital in the 12 largest electricity
distributors
With regards to energy carriers, the NDP proposes that
the following be done on each of the following:
·
Coal: “Ensure domestic
security of coal supply for existing power stations through industry compact,
more comprehensive coal field planning and opening up the Waterberg for coal
mining.”
·
Gas: “Enable exploratory
drilling to identify economically recoverable coal seam and shale gas reserves,
while environmental investigations will continue to ascertain whether
sustainable exploitation of these resources is possible. If gas reserves are
proven and environmental concerns alleviated, then development of these
resources and gas-to-power projects should be fast -tracked. Incorporate a
greater share of gas in the energy mix, both through importing liquefied
natural gas and if reserves prove commercial, using shale gas. Develop
infrastructure for the import of liquefied natural gas, mainly for power
production, over the short to medium term. Constructing infrastructure to
import liquefied natural gas and increasing exploration to find domestic gas
feedstock (including investigating shale and coal bed methane reserves) to
diversify the energy mix and reduce carbon emissions.”
·
Electricity: “Move to
less carbon-intensive electricity production through procuring at least 20
000MW of renewable energy, increased hydro-imports from the region and
increased demand-side measures, including solar water heating. Move Eskom's
system operator, planning, power procurement, power purchasing and power
contracting functions to the independent system and market operator and accelerate
procurement of independent power producers. Ring-fence the electricity
distribution businesses of the 12 largest municipalities (which account for
percent of supply), resolve maintenance and refurbishment backlogs and develop
a financing plan, alongside investment in human capital. Revise National
Electrification Plan and ensure 90 percent grid access by 2030 (with balance
met through off-grid technologies).”
·
Liquid
fuels:
“Upgrade fuel refineries to ensure they meet new fuel quality standards and
insist on larger strategic fuel stocks to ensure security of supply. Continue
to import refined fuels, ensuring that the growing deficit in petroleum
products is met, and defer decision on a new refinery to
Moreover, in terms of the Region, the NDP indicates the
following:
·
“The continent's massive infrastructure
deficit, though debilitating, also presents great opportunities. Africa has the
weakest infrastructure in the world – average electricity costs of US$0.18 per
kilowatt-hour are about double those of other developing countries. The largest
infrastructure gaps are in energy, with citizens in 30 of the 47 countries in
sub-Saharan Africa facing regular power shortages and power interruptions.
Power outages are responsible for a loss of between 1 percent and 6 percent of
potential GDP every year.”
·
“Several of South Africa’s challenges can
only be addressed through regional cooperation. While South Africa is a
water-scarce country, several neighbouring countries have abundant supply.
There are other areas in which complementary national endowments offer
opportunities for mutually beneficial cooperation. For example, South Africa
should invest in and help exploit the wide range of opportunities for
low-carbon energy from hydroelectric and other clean energy sources in Southern
Africa.
·
Renewable energy sources will become
increasingly important. Sub-Saharan Africa is particularly well positioned to
develop solar and hydro-energy, and to produce bio-fuels. The Grand Inga
project could provide sufficient electricity for Africa and allow it to export
energy through interconnecting links to southern Europe. Angola, Mozambique and
Tanzania, among other countries, have the potential to produce ethanol
profitably from sugar cane on land that is not used for food crops. Africa also
has the potential to reduce emissions by protecting its forests.”
The
Industrial Policy Action Plan (IPAP)
From the IPAP, the
following issues relating to the energy sector can be drawn – issues are quoted
as per the IPAP document:
·
The
IPAP also “offers the possibility of substantially increasing aggregate demand
for the key inputs that will be required and, crucially, for the localisation
of a wide range of manufactured inputs into the infrastructure build –
particularly in the construction, metals, capital and rail transport equipment
and renewable
energy sectors.” Regarding the latter, under Public Procurement 2 the, Renewable Energy Independent Power Producer
Procurement Programme (REIPPP) is mentioned and it is indicated that “Forty-seven
bids awarded, with minimum levels of local content ranging from 25% to 45%; set
to rise to maximum 65% in solar, wind and Concentrated Solar Power (CSP) and a
local content hotline and e-mail address have been established both at the Department of Trade and Industry (DTI) and
the South African Bureau of Standard
(SABS) to deal with non-compliance on local content”.
·
Furthermore,
under Industrial Financing 1, “R5 billion private ‘green bond’ (must be)
concluded with the Public Investment Corporation to facilitate funding for
businesses looking to invest in clean energy infrastructure developments”.
·
The
IPAP recognised Biofuels, green industries, renewable energy, energy efficiency and
Nuclear Energy as some key areas to focus on and has developed key
action programmes to accelerate development in these sectors.
·
For
the renewable energy industry, SA needs to “revise the minimum local content requirements for the REIPPP and small-scale programmes”
and increase the local content threshold. “To identify and quantify
energy-efficiency products, services and components procured by central,
provincial and local government and State Owned Companies - SOCs (such as
public space lighting, street lighting, traffic lights and lights in Government
buildings) and to designate these items for local production as appropriate”
was identified as the intervention for energy efficiency.
The New
Growth Path (NGP)
This is South
Africa’s vision to place jobs at the centre of the economy, with the aim of
creating 5 million new jobs by 2020. The focus is on economic growth,
rebuilding the productive sectors of the economy, infrastructure development
and rural development. In the Green Economy Accord (which forms part of the
NGP), government has committed to the following:
Commitment One: Rollout of Solar Water Heaters: In this
commitment; Government wishes to increase the rollout to one million units by
2014, improve the localization of components, secure support from the insurance
industry for replacement of units, secure guarantees on installed units,
promote the marketing of solar-water heating systems and further promote
uniform technical and performance standards for SWH.
Commitment Two:
Invest in the Green Economy: The Industrial
Development Corporation (IDC) will set aside a capital allocation of R22
billion for green projects over the next five years and a further R3 billion
will be made available for manufacturing of green products and components.
Organised labour committed to establish social enterprises and investment
vehicles that will create jobs and support the goals of the green economy,
whereas business agreed to market opportunities within the investor
communities.
Commitment Three: Rollout of Renewable Energy: The
government has committed to the procurement of 3725MW of renewable energy by
2016, being the first step in meeting the Integrated Resource Plan (IRP) goals.
Through this also achieve a 75% localization of component manufacturing;
promote technology development and strengthen skills development.
Commitment Four: Energy Efficiency: In this,
develop a roadmap for improved energy efficiency (in line with the National
Energy Efficiency Strategy), develop internal energy efficiency targets,
develop skills and ensure behavioural changes within and outside the workplace.
Set benchmarks and focus on energy efficiency awareness campaigns.
Commitment Five: Waste Recycling, Re-Use and Recovery: Government
noted that although it aims to reduce waste, especially from industries, waste
can be used as a feedstock especially for the generation of energy.
Commitment Six: Biofuels: With the aim of
lowering carbon emissions, government has published mandatory blending
regulations in petrol (2%) and diesel (5%). Hence there is a commitment from
government to provide a supportive regulatory environment to facilitate the
development of a local biofuels industry. A Biofuels Regulatory Framework was
published in January 2014 by the DoE for public comments. Monitoring progress
on this is essential for the 5th Parliament.
Commitment Seven: Clean coal Initiatives: Government
has established a Carbon Sequestration Leadership Forum to develop clean coal
technologies and this includes underground coal gasification initiative at
Eskom and the Carbon Capture and Storage Initiative under South African
National Energy Development Institute (SANEDI).
Commitment Eight: Retrofitting: Apart from the
retrofitting of incandescent lighting, Eskom will consider new technologies
that can improve the energy efficiency of its existing coal-fired power
stations and commercial buildings will benefit from new heating and insulation
systems.
Commitment Nine: Reducing Carbon-Emission on our roads: Here
government committed to invest in mass transport systems; this includes road
and rail and ensures greater usage thereof. Government further committed to
being the first adaptors with respect to purchase and use of domestically
manufactured electric vehicles.
Commitment Ten: Electrification of Poor Communities and
Reduction of fossil fuel Open fire cooking and heating: Government
committed to accelerate programmes to increase access to electricity and
appropriate modern thermal carriers like Liquid Petroleum Gas (LPG) for cooking
and heating. Also recognised was the need to clean cooking stoves.
Commitment Eleven: Economic Development in the Green Economy:
Promotion of localization, Youth Development, Cooperation and Skills
Development: The green economy will provide significant opportunities
to create jobs and at least 80% of new employees in the manufacturing and
installation of solar water heating systems will be young people. The skills
requirement will need to be elevated as a priority in the National Skills Framework.
Commitment Twelve:
Cooperation around the United Nations COP17 and its follow up Government will
work with labour, business and community organisations to communicate the
message of partnership on the green economy as set out in the accord.
Medium
Term Strategic Framework (2009-2014)
The energy related
issues noted in the Medium Term Strategic Framework (MTSF) include:
·
It is indicated that one of the critical
activities that can drive faster economic recovery is “large investment
projects of the private sector especially projects with high labour-absorbing
impact, including security of fuel supply, environment-friendly energy and
other such products and services as well as supplier industries for
infrastructure projects”
·
It is further noted that to “to ensure
longer-run growth, government must refine and scale up implementation of its
Industrial Action Plan to support broad-based industrialisation including more
advanced manufacturing, as well as encouraging cleaner, lower-energy
technologies and green jobs.”
·
Research and Development into alternative
energy technologies were also identified as a measure to put in place
to ensure industrial competitiveness and sustained growth.
·
It is noted in the framework that the
infrastructure programme will include, among others; “Continuing with the
programme to build, revamp and maintain electricity infrastructure, including generation, distribution and reticulation to
ensure sufficiency and
sustainability of supply and development of alternative energy sources.
·
Continuing to expand pipelines for the supply of liquid fuel to
inland provinces and the country
at large and improving logistics
infrastructure (road and particularly
rail) for the transportation of goods and services including agrologistics for farming and agricultural products
– this will include more systematic
efforts to encourage movement from road to rail.”
·
Further, in developing
physical infrastructure in rural areas; Government will invest in, among
others, in energy. This is also a key area in improving service delivery to
ensure quality of life.
·
It is also noted that “the main objective of
government is to encourage sustainable resource management and use by focusing
on various interventions including the diversification of the energy mix in
pursuance of renewable energy alternatives and promotion of energy efficiency”
·
Furthermore, it is stated that, “efforts to
meet the energy efficiency target
of 12% by 2015 and renewable energy target of 10 000 GWh by
2013, will be enhanced by creating an enabling environment for renewable energy,
through for example implementing the renewable energy feed-in tariff and building the local renewable energy
manufacturing capacity”
Medium Term Budget Policy Statements
(MTBPS)
The following is noted from the MTBPS
in terms of energy (from 2009):
In
2009 the question was being asked, how do we address the country’s future
energy needs and how do we reduce the county’s future carbon emissions? In
response to the question, the following interventions were highlighted (from
2009 – 2013):
·
To boost industrial development, assist
enterprises and accelerate job creation, the Minister noted that “the MTBPS
proposes a competiveness support package of R25 billion over the next six years
to boost industrial development” with “continuing investment in energy, water,
transport and communications and infrastructure” and “alignment of trade,
investment and energy policies to support the transition to a green economy,
including private sector participation in our renewable energy production
programme.”
·
SA involvement in the 17th Conference of the
Parties to “seek to make progress in a most difficult global coordination
challenge: how to invest in a clean energy future, and how to share the costs
of this transition.”
State of
the Nation Addresses (SONA’s 2009 -2014)
·
In 2009 the President highlighted the right
of rural people to basic services like electricity and that we need to improve
our energy efficiency and reliance on renewable energy.
·
In 2010 it was announced the establishment of
the Inter-Ministerial Committee on Energy to develop the 20 year Integrated
Resource Plan. The participation of the independent power producers was also
mentioned and the establishment of ISMO, separate from Eskom. The President
also highlighted that the Municipalities must improve the provision of basic
services including electricity. More importantly, he mentioned that the poor
must be protected from rising electricity prices.
·
In the 2011 SONA, the President acknowledged
the delivery of basic services (including electricity) to the people of the
country but indicated that there are many still waiting. In this regard he
highlighted the infrastructure development programme to enable greater access
to basic services. The Eskom build programme was once again highlighted as the
President noted that energy security is critical for economic development and
job creation. He also indicated that SA needs ensure we save electricity so we
do not resort to load shedding again.
·
The President noted the ongoing concern about
high electricity cost from business and communities in 2012 and indicated that
Eskom was asked to “seek options on how the price
increase requirement may be reduced over the next few years, in support of economic
growth and job creation and give him proposals for consideration.” The
President in 2102 also highlighted the Eskom build programme, load shedding and
that 220 000 solar water geysers were installed to date. He also mentioned
the NEPAD Presidential Infrastructure Championing Initiative which includes
various inter-related projects including energy.
·
In the 2013 SONA the President highlighted
some successes in the energy sector including the roll out of transmission
infrastructure, the renewable energy programme, the roll out of the
315 000 solar water heaters, the fact that close to 200 000
households have been connected to the national electricity grid in 2012 and
that 85% (or 12.1. million) of households have access to electricity. The President
noted the slowdown of GDP growth which could negatively affect the economy and
hence the envisaged target of creating 11 million jobs by 2030. But the
President also highlighted the rapid rate of urbanization taking place in SA.
·
In the 2014 SONA,
the President noted that this SONA was a “report
of the past five years in particular and over the past 20 years in general.” The
President indicated in this SONA that the programme of action for this
financial year will be presented by the new government after the elections. The President also noted that “over the past 20 years,
remarkable achievements have been made in increasing access to services such as
water, sanitation and electricity” in terms of provision of basic services to
the people of South Africa. The President noted that there is a plan to create
6 million jobs and apart from mining, “we had identified five other job drivers
in 2009. These are tourism, agriculture, the
green economy, infrastructure development and manufacturing.” All of these
impact the energy needs and dynamics of South Africa. The President noted that
“nearly 500 informal settlements have been replaced with quality housing and
basic services over the past five years;’ but noted that some communities still
do not have basic services especially in informal settlements and rural areas.
He indicated that “we are therefore working with all spheres of government to
ensure the provision of these services, especially in the 23 municipalities
with the greatest number of backlogs.” This will have a direct bearing on
energy.
4.2. Brief profile of the Department of Energy (DoE)
On 10 May 2009 President Zuma
announced his new Cabinet and the appointment of, amongst others, the Minister
of Energy in terms of Chapter 5 (The President and National Executive), Section
91(2) of the Constitution of the Republic of South Africa, 1996 (the
Constitution). The new portfolios of some of the Ministers necessitated a
re-organisation, renaming and establishment of new departments. Subsequent to
the above announcement, the DoE was established following the split of the
Department of Minerals and Energy, which resulted in two independent
Departments. The President, in terms of Chapter 5 (The President and National
Executive), Section 97, of the Constitution, 1996, transferred the
administration and powers and functions entrusted by specified legislation to,
amongst others, the Minister of Energy by Proclamation No. 44, 2009.
The aim of the DoE is to formulate energy policies,
regulator frameworks and legislation, and oversee their implementation to
ensure energy security, promotion of environmentally-friendly energy carriers
and access to affordable and reliable energy for all South Africans. The
mandate of the Department is to ensure secure and sustainable provision of
energy for socio-economic development.
4.2.1. State Owned Entities/State
Owned Companies within the DoE
The Minister of Energy is responsible for overseeing
the following five State-Owned Entities (and their subsidiaries), which are
either classified as Schedule 2 or 3A institutions in terms of the Public
Finance Management Act, 1999 (Act 1 of 1999), as amended (PFMA):
4.2.1.1. Regulators
4.2.1.2. Research and Development
4.1.1.3. Energy Security
·
South African Nuclear Energy Corporation (NECSA) – NECSA’s functions, as outlined in section 13 of the National Energy
Act, are to: - undertake and promote research on nuclear energy, radiation
sciences and technology; - process source, special nuclear and restricted
material including uranium enrichment; and - collaborate with other entities
·
The Central Energy Fund (CEF) Group of Companies (SOC) Ltd - CEF (SOC) Ltd is involved in the search for appropriate energy
solutions to meet the future energy needs of South Africa, the Southern African
Development Community and the sub-Saharan African region, including oil, gas,
electrical power, solar energy, low-smoke fuels, biomass, wind and renewable
energy sources. CEF also manages the operation and development of the oil and
gas assets of the South African Government. CEF is also mandated to manage the
Equalisation Fund, which collects levies from the retail sales of petroleum
products to eliminate fluctuations in the retail price of liquid fuel and to
give tariff protection to the synthetic fuel industry.
·
Electricity
Distribution Industry (EDI) Holdings – EDI was a company
wholly owned by the South African Government, was establishment in March 2003,
through the then Department of Minerals and Energy, to facilitate the process
of restructuring the electricity distribution industry in South Africa. As at the
end of the 2012/13 financial year, all transactions towards the closing
down of the company as directed by Cabinet on 08 December 2010 were finalized.
The Department, in the 2012/13 year was awaiting the close-out audit
report from the Auditor-General and the Board.
4.2.2. Legislation
4.2.2.1. Legislation
that directly mandates the DoE
·
The National Energy Act, 2008
(Act No. 34 of 2008)
·
The Petroleum Products Act, 1977
(Act No. 120 of 1977), as amended
·
The Electricity Regulation Act,
2006 (Act No. 4 of 2006), as amended
·
The Central Energy Fund Act, 1977
(Act No. 38 of 1977), as amended;
·
The Nuclear Energy Act, 1999 (Act
No. 46 of 1999);
·
The National Nuclear Regulator
Act, 1999 (Act No. 47 of 1999);
·
The National Radioactive Waste
Disposal Institute Act, 2008 (Act No. 53 of 2008);
·
The Petroleum Pipelines Act, 2003
(Act No. 60 of 2003);
·
The Petroleum Pipelines Levies
Act, 2004 (Act No. 28 of 2004);
·
The Gas Act, 2001 (Act No. 48 of
2001);
·
The Gas Regulator Levies Act,
2002 (Act No. 75 of 2002);
·
The National Energy Regulator
Act, 2004 (Act No. 40 of 2004);
·
The Abolition of the National
Energy Council Act, 1991 (Act 95 of 1991);
·
The Liquid Fuel And Oil Act
Repeal Act, 1993 (Act 20 of 1993); and
·
The Coal Act Repeal Act, 1991
(Act 124 of 1991).
4.2.2.2.
Non-core legislation that also impacts on the DoE
·
The National Environmental
Management Act, 1999 (Act No. 107 of 1999),
·
The Mineral and Petroleum
Resources Development Act, 2002 (Act No. 28 of 2002),
·
The Disaster Management Act,
2002, (Act No. 57 of 2002),
·
The Hazardous Substances Act,
1973, (Act No. 16 of 1973),
·
The National Ports Act, 2005 (Act
No. 12 of 2005
4.2.3. The DoE’s Strategic Orientated Outcomes Goals
are as follows:
·
Regulation and Competition: Improved energy regulation
and competition.
·
Infrastructure: An efficient, competitive and responsive
energy infrastructure network.
·
Environmental Assets: Environmental assets and natural
resources protected and continually enhanced by cleaner energy technologies.
·
Climate Change: Mitigation against and adaptation to,
the impacts of climate change.
·
Corporate Governance: Good corporate governance for
effective and efficient service delivery.
|
Goal |
Government outcome |
Goal statement |
|
1. Universal Access and Transformation |
Outcome 2 – A long and healthy life for all South Africans; and Outcome 8 – Sustainable human settlement and improved quality of
household life. |
Efficient and diverse energy mix for universal access within a
transformed energy sector. |
|
2. Security of Supply |
Outcome 4 – Decent employment through inclusive economic growth. |
Energy supply is secure and demand is well managed. |
|
3. Regulation and Competition Improved energy regulation and
competition. |
Improved energy regulation and competition. |
|
|
4. Infrastructure |
Outcome 6 – efficient, competitive and responsive economic infrastructure
network. |
An efficient, competitive and responsive energy infrastructure
network. |
|
5. Environmental Assets |
Outcome 10 – Environmental assets and natural resources that are well
protected and continually enhanced. . |
Environmental assets and natural resources protected and continually
enhanced by cleaner energy technologies. |
|
6. Climate Change Mitigation against, and adaptation to, the impacts
of climate change |
Mitigation against, and adaptation to, the impacts of climate change. |
|
|
7. Corporate Governance |
Outcome 12 - An efficient, effective and development oriented public service and an empowered, fair and
inclusive citizenship. |
Good corporate governance for effective and efficient service
delivery. |
4.2.4.
Programmes of the Department of Energy
The Department has
six programme areas: Administration; Energy Policy and Planning; Petroleum and Petroleum Products Regulation;
Electrification and Energy Programmes and Project Management, Nuclear Energy
and Clean Energy.
4.2.4.1.
Programme 1: Administration
The
purpose of the programme is to provide corporate, executive, financial
management and accounting, information and communication technology, supply
chain, asset management support to the Department, to ensure good corporate
governance and compliance by Department and/or the Energy Sector.
4.4.4.2.
Programme 2: Energy Policy and Planning
The
purpose of the programme is to ensure evidence based planning, policy
setting and investment decisions in the
energy sector to improve the security of energy supply, regulation and
competition.
4.4.4.3.
Programme 3: Petroleum and Petroleum Products Regulation
The
purpose of the programme is to manage the regulation of petroleum and petroleum
products to ensure the optimum and orderly functioning of the petroleum
industry to achieve government’s development goals.
4.4.4.4.
Programme 4: Electrification and Energy Programme and Project Management
The purpose of the programme to manage, coordinate and
monitor programmes and projects focused on access to energy.
4.4.4.5.
Programme 5: Nuclear Energy
The
purpose of the programme is to manage the South African nuclear energy industry
and control nuclear materials in terms of international obligations, and
nuclear energy legislation and policies to ensure the peaceful use of nuclear
energy.
4.4.4.6.
Programme 6: Clean Energy
The
purpose of the programme is to manage and facilitate the development and
implementation of clean and renewable energy initiatives, as well as energy
efficiency and demand side management initiatives.
4.2.5. Department of Energy - Total Budget
Allocations since 2010
Table 1: DoE Budget Allocations
|
R million |
2010/11 |
2011/12 |
2012/13 |
2013/14 |
2014/15 |
|
Administration |
121.6 |
192.7 |
216.8 |
212.8 |
244.1 |
|
Energy Policy & Planning |
1607.2 |
1 541.9 |
1 545.3 |
45.0 |
52.6 |
|
Petroleum and Petroleum Products Regulation |
24.1 |
27.2 |
44.4 |
69.3 |
82.7 |
|
Electrification & Energy Programme and Project Management |
2 772.1 |
3 274.5 |
3 116.0 |
3 946.2 |
4 199.2 |
|
Nuclear Energy |
612.3 |
642.3 |
643.2 |
730.8 |
850.5 |
|
Clean Energy |
368.0 |
495.7 |
1 093.3 |
1 483.1 |
1 986.5 |
|
Total |
5 505.4 |
6 174.3 |
6 659.0 |
6 487.2 |
7 415.6 |
Source: National Treasury (2014). Estimates of
National Budget (pg 666)
5. REFLECTION OF THE PORTFOLIO COMMITTEE ON
ENERGY PERFORMANCE (PCE)
Vision of the Portfolio Committee on Energy
The vision of the PCE is
defined as:
To become a vibrant and effective Portfolio
Committee that legislates and conducts oversight over the implementation of departmental programmes and related entities
to improve service delivery, achieve universal access to electricity and a
transformed energy sector.
5.1. Mandate and functions of the Portfolio Committee on Energy
The Portfolio Committee on Energy is established by the
rules of the National Assembly as enshrined in Section 57(2) (a) of the
Constitution of the Republic of South Africa, Act 108 of 1996. The Committee is
therefore an extension of the National Assembly and derives its mandate from
Parliament.
5.1.1.
The Portfolio Committee on Energy, as a Committee of the National Assembly, has
as its mandate, in respect to the DoE, to:
·
Consider, amend, approve or
reject legislation;
·
Consider and approve budgets
and monitor expenditure of department
and entities;
·
Consider progress reports
from the line function department, and
entities on their respective mandates
·
Ensure that all appropriate
executive organs of state are held accountable for their actions; and Conduct
oversight of the national executive authority and of any organ of state
5.1.2.
The mandate of the Committee fulfils the following functions (derived from
Parliament’s strategic objectives):
·
Pass legislation.
·
Scrutinise and oversee executive action
·
Facilitate public participation and
involvement in the legislative and other processes.
·
Participate in, promote and oversee
co-operative government.
·
Engage in, participate and oversee
international relations.
Furthermore the
Portfolio Committee on Energy fulfils its mandate by discharging its oversight
role over the Department of Energy and its entities. The Committee also conducts oversight visits
and hold public hearings to ensure public participation and corporative
governance as enshrined in the Constitution.
5.2. Method of work of the committee
5.2.1. Committee category
Committee meetings were predominantly scheduled on a Tuesday, as the
committee was in the A-group (committees are grouped into A, B, C and D – to
avoid clashes). Being part of the Group A, meant that the committee could meet
on a Tuesday morning (09:00 -13:00) and on a Thursday afternoon and Friday if there are no plenaries (approval for the
meetings on a Thursday and Friday need to be sought from the Office of the
House Chairperson: Committees)
During the committee weeks, the Portfolio Committee on Energy were
allowed to meet on a Tuesday afternoon (14:00 – 17:00) and Wednesday morning
(09:00 – 13:00). Meetings could also be scheduled on a Thursday and/or Friday
(with the approval of the Office of the House Chairperson)
5.2.2. Processing legislation
When processing legislation, where needed the committee meetings were
scheduled on Tuesday, Wednesday, Thursday and Friday (with the approval of the
Office of the House Chairperson). This also depended on the amount of work
which had to be done during the deliberation stages of the Bill.
Also, when processing legislation the committee conducted placed
advertisements in national newspapers and regional newspapers calling for
written submissions (stakeholders have to indicate request for oral submission.
Subsequent to the “call for written submissions” the PCE will schedule public
hearings, where the different stakeholders can make oral presentations on their
written submissions to the committee. Besides placing the advert the PCE will
In certain cases also invite stakeholders to make a submission (written and
verbal).
In certain circumstances the committee will conduct workshops on the
legislation, to enhance its understanding thereof (this is very important as
some of the legislation in the energy sector is very technical and complex.
5.2.3. Oversight visits
Oversight visits to various projects and programmes are three pronged.
The visits will be scheduled as follows:
·
Visit the targeted project
·
Meet the service provider/s
·
Meet the local community
PS: Oversight work was done directly on the DoE provincial/regional
offices as well as the SOEs. Some of the oversight visits integrated study tour
aspects as well.
5.2.4. Study tours
Study tours have been conducted by either the committee as a whole, a
delegation of PCE MPs or individuals both inside and outside.
5.2.5. Media Networking Sessions
The main purpose for
the media networking session is to build and foster strong relations with
journalists that report about issues affecting Parliament. This event was
usually scheduled after hours on a Thursday evening (18:00 – 20:00). During the
period under review the committee scheduled 2 media networking sessions, one
(1) at the parliamentary precincts and one (1) outside.
5.2.6. Expert testimonies – inviting
experts/specialists
The Portfolio Committee on Energy would also invite experts/specialists
in a specific area (depending on what the Portfolio Committee on Energy is
dealing with) to attend the meetings and/or accompany the delegation on an
oversight visit. The aim of this is to get that expert/specialist view on the
area under discussion.
Expert testimonies by various experts have been presented by the PCE as
a new practice and such were immensely beneficial to members of the PCE. In
most cases the PCE has made use of the various tertiary institutions, who does
work in the energy sector to provide this service. The aim is also to foster
relations with the various tertiary institutions (see list below).
5.2.7. Energy Stakeholder Meetings
The Portfolio Committee on Energy further scheduled Energy Stakeholder
Meetings (ESMs). The aim of these Energy Stakeholder Meetings is to create a
platform for public discourse in the energy sector by facilitating structured
discussions on various topics on energy issues. These meetings are usually
scheduled on a specific Thursday afternoon (at 5pm).
The format of this forum is that the Portfolio Committee on Energy will
invite 3-4 departments/entities/private companies to present on a specific
topic, where after the Chairperson will open up the floor to all present for
questions, clarity seeking and comments. A report is compiled for consideration
and adoption of these Energy Stakeholder Meetings. These Energy Stakeholder
Meetings are usually well attended, depending on the topic (around 70 - 80
people on average). For the period under review three (4) ESMs was conducted at
Parliament and two (2) outside.
5.2.8. Roundtable discussions
The roundtable discussions are more or less like the Energy Stakeholder
Meetings, but the groups invited are smaller (20 -30 people). Discussions are
also more informal.
5.2.9. Extra-Parliamentary Meetings
The PCE held at least one meeting outside Parliament
annually for the past 3 years. Such is according to directives from the
Speaker’s Office.
5.2.10. Public hearings –
excluding legislation
In certain circumstances the committee will conduct
public hearings on a topical issue, where some of the items included:
5.2.11. Mailing list
The committee has mailing list, consisting of about 500 people (their
e-mails). This mailing list covers most of the respective sectors within the
energy sphere (liquid fuels, electricity, renewable energy etc).
The mailing list receives the various notices and invites of the
Portfolio Committee on Energy. Portfolio Committee on Energy meetings are well
attended and stakeholders are informed of the activities undertaken by the
Portfolio Committee on Energy.
5.3. Committee focus areas during the fourth term
During the 4th Parliament, the PCE
focused on some keys areas of activity.
·
Oversight over the DoE and the SOE’s
activities and programmes. This included financial as well as operational
oversight. The PCE also assessed the progress made on
Millennium Development Goals (MDGs), Government Outcomes and the Strategic
Outcomes-Orientated Goals (SOGs) and the Strategic Integrated Projects (SIPs),
including directives
from SONA on energy issues.
·
The PCE
also focused on the Energy Policy of the DoE, focusing on the ISMO Bill,
outstanding legislation and policy documentation with regard to energy planning
in general e.g. IRP and IEP and sector specific e.g. Electricity and
Hydrocarbon policies.
·
The PCE
assessed Petroleum Regulation and looked at petroleum licensing, pricing and
compliance to policies e.g. liquid fuels charter.
·
The PCE
also focused on Electrification programmes including INEP, REIPPP, the industry
transformation, infrastructure and community uplift programmes including IEC’s.
·
Another
area assessed regularly was nuclear energy including the envisaged 9600MW
nuclear roll out programme, nuclear safety, waste management including the
National Radioactive Waste Disposal Institute and nuclear policy.
·
The PCE
also focused on clean energy including energy efficiency, renewable energy and
climate change issues.
5.4. Reflection on the PCE
performance as guided by its strategic objectives
The Portfolio Committee on Energy met these objectives in
the following way:
I.
Promote
the design and implementation of broad based sector or industry empowerment
programmes with clearly defined targets based on agreements between
stakeholders. In this regard the Portfolio Committee on Energy held the
following engagements
·
In 2010, the Portfolio Committee on Energy held
public hearings on the Liquid Fuels Charter and energy industry transformation
and this was followed with an engagement with the Deputy Minister of Trade
& Industry, PetroSA, National Energy Regulator of South Africa (NERSA),
Transnet and the DoE.
·
In terms of the Liquid Fuels Charter, the
Portfolio Committee on Energy conducted oversight on the Liquid Fuels Charter audit outcomes in 2012 to gain insights on progress and challenges identified.
·
The Portfolio
Committee on Energy also, in November 2012, held an Energy Stakeholder Meeting on
Transformation in Petroleum Industry.
·
Further, the
Portfolio Committee on Energy conducted oversight on the downstream liquid
fuels sector with input by wholesalers, storage sub-sectors and retailers.
·
The Portfolio
Committee on Energy held an Energy Stakeholder Meeting on the upstream oil and
gas industry early in 2014 where industry players were given the opportunity to
air their views and one of the key outcomes of this Energy Stakeholder Meeting
was that there needs to be clear policy directives from government. Such
included issues regarding BBBEE.
·
In terms of
Biofuels, the Portfolio Committee on Energy received an Industrial Strategy
update on Biofuels in 2013. The PCE also requested that the DoE brief the
Committee on the 200 odd small biofuel producers and how the DoE is managing
this. Biofuels was a regular topic of discussion, with the DoE whenever they
presented their annual or strategic plans to the Portfolio Committee on Energy.
·
In terms of
electricity, there were engagements that the Portfolio Committee on Energy
initiated. The Portfolio Committee on Energy assessed the Industrial Development Corporation
(IDC) implementation of New Growth Path and Industrial Policy Action Plan
(IPAP2) with special reference to the green economy and renewable energy. This was followed up by a Panel discussion for Independent
Power Producers on Renewable Energy Procurement (Window 1).
·
In terms of the
Renewable Energy programme, the Africa Institute of SA & Standard
Bank discussed Investment Flows for Change with the Portfolio Committee on Energy also during this period and the
Portfolio Committee on Energy held a Meeting of stakeholders in the
renewable energy sector, entitled Exploring solutions to the challenges of
financing and certification of locally produced renewable energy products.
The Portfolio Committee on Energy ensured it received regular updates on the
Renewable Energy Independent Power Producer
Procurement Programme (REIPPP) by the DoE. Finally, it appears as if the next
major Independent Power Producer procurement drive by the DoE will be in the
area of co-generation and hence in 2013, the Portfolio Committee on Energy held
Cogeneration public hearings and this was followed up with a round table discussion early 2014 where
issues and challenges were trashed out with all stakeholders present. One of
the key recommendations that came out of the round table was that there is a
need for a national conference where issues are carefully unpacked and dealt
with. The PCE did conduct oversight on skills and technology transfer and BBBEE
procurement.
II.
Assess the
impact of the Energy Efficiency Strategy of 2005.
·
The Portfolio
Committee on Energy on a regular basis conducted oversight on energy efficiency
with regular briefings by the DoE. It further conducted oversight on such
projects in SA, including green buildings and industrial energy efficiency
projects. As part of this the Portfolio Committee on Energy reviewed a
Committee report on the Workshop on Renewable Energy Policies for
Sustainable African Development in Ghana. Some other interactions were as follows; in 2010, the Portfolio
Committee on Energy was briefed by the DoE on International Renewable Energy Agency
and soon thereafter on the Memorandum of South Africa's membership to
International Renewable Energy Agency (IRENA) & Report on International
Climate Change and Energy Excess Hearings. This was followed up in 2011 where the Portfolio Committee on Energy was briefed by South South North
Africa, Green Building Council of South Africa, PEER Africa, and Council for
Built Environment & Council for Scientific & Industrial Research
on Energy Efficiency.
·
The Portfolio
Committee on Energy also regularly was briefed on the solar water heater
programme by the DoE and conducted oversight visits to such sights, engaging
with the communities on issues and challenges. This included visits to the
South African Bureau of Standards on energy efficient standards and the
assessment and testing of energy efficient equipment, and Council for
Scientific and Industrial Research on energy efficiency programmes in late
2012.
·
The Portfolio
Committee on Energy was also regularly briefed on Energy Efficiency by the DoE
during the regular quarterly report updates and annually during their
presentations of their annual reports and five year strategic plans.
III.
Monitor
restructuring of the fragmented electricity distribution industry.
·
With regard to distribution, the Portfolio
Committee on Energy conducted oversight on this topic with briefings by the DoE
and other players including South African Local Government Association and
Municipal Infrastructure Support Agency. The Portfolio Committee on Energy
found key issues to be addressed included (a) financial constraints at
Municipal level, (b) lack of appropriate skills, especially at the smaller
municipalities and (c) lack of maintenance in the case of some Municipalities.
In terms of oversight, in 2010, the DoE briefed the Portfolio Committee on
Energy on the Electricity Distribution Industry
& Regional Electricity Distributors on the Electricity Distribution
Industry Holdings. This was followed up by briefings by the
Department of Energy & South African Local Government Association (SALGA)
on Electricity Distribution Industry
Goals in 2011 and this topic was again visited by the Portfolio
Committee on Energy with the DoE in early 2012 with four days of public
hearings being held in mid of 2012.
·
The Portfolio Committee on Energy also
regularly conducted oversight on the pilot programme ADAM and received
input by Department of Energy, South African Local Government Association,
Municipal Infrastructure Support Agency & Financial and Fiscal Commission in
2013; however independent of these dedicated meetings, there were a lot of
discussions and guidance from the Portfolio Committee on Energy, with the DoE
on the topic of distribution in general.
·
The Portfolio
Committee on Energy was also regularly briefed on the electricity distribution
industry by the DoE during the regular quarterly report updates and annually
during their presentations of their annual reports and five year strategic
plans.
IV.
Achieving
universal access to electricity
·
The Integrated
National Electrification Programme (INEP) was one of the key programmes the
Portfolio Committee on Energy exercised oversight over. During this Parliament,
the percentage households that are electrified in SA went up from 74.9% in 2010
to 85% in 2013, with over 900 000 households being electrified during this
Parliament. The Portfolio Committee on Energy regularly conducted oversight on
this topic and also conducted oversight visits, interrogating the topic and
guiding the DoE where necessary.
·
The Portfolio
Committee on Energy was also regularly briefed on the Integrated National
Electrification Programme by the DoE during the regular quarterly report
updates and annually during their presentations of their annual reports and
five year strategic plans.
V.
Monitor
promotion and progress on the utilization of Liquefied Petroleum Gas as well as
transforming the sector.
·
The Portfolio
Committee on Energy engaged the DoE on this topic numerous times in the 4th
Parliament. They also looked at this topic in numerous ways to ensure a clear
understanding of the fundamentals at play in the Liquefied Petroleum Gas
industry. In 2010 the Portfolio Committee on Energy looked at Liquefied
Petroleum Gas regulation with the DoE. This was followed up with a progress
meeting with the DoE on Implementation of the Liquefied
Petroleum Gas (LPG) Regulations and on the Two Pilot Projects implemented in
Atteridgeville & Tweefontein. Safety issues were also interrogated by the
Portfolio Committee on Energy during a meeting with the Liquefied Petroleum Gas
Safety Association. In 2012, the DoE also briefed the Portfolio
Committee on Energy on Liquefied Petroleum Gas Options for Expansion’
·
This topic was also interrogated by the
Portfolio Committee on Energy with the DoE and South African Local Government
Association as part of the Free Basic Alternative Energy discussions. The
Portfolio Committee on Energy also conducted oversight on equipment used, and availability of equipment and Liquefied Petroleum
Gas, especially for the indigent communities and further, distribution
infrastructure in particular and entire Liquefied Petroleum Gas value chain in
general,
e.g. during the oversight visit to informal settlements in Stellenbosch in July
2013
·
The Portfolio Committee on Energy further
conducted oversight on indigent households using Liquefied Petroleum Gas for
cooking purposes and further visited gas distribution companies to gain some
insights into the issues related to gas distribution in SA, e.g. during the
oversight visit to industrial sites in August 2013.
·
The Portfolio
Committee on Energy was also regularly briefed on the above aspects related to
Liquefied Petroleum Gas by the DoE during the regular quarterly report updates
and annually during their presentations of their annual reports and five year
strategic plans.
VI.
Assessing
the extent of investment and progress on the utilization of clean energy
sources
·
The Portfolio
Committee on Energy, for the duration of the 4th Parliament,
monitored the solar water heater programme carefully. The Portfolio Committee
on Energy was also regularly briefed on the utilization of clean energy sources
including the solar water heater programme by the DoE, during the regular
quarterly report updates and annually during their presentations of their
annual reports and five year strategic plans
·
The PCE conducted
oversight on installations and programmes. This was during oversight visits to
Khayalitsha in 2010, Ivory Park in 2014 and SABS (in terms of quality) in 2012.
Comments and concerns were communicated to the DoE for further action.
·
The Portfolio
Committee on Energy conducted oversight on the various aspects of the Renewable
Energy Independent Power Procurement Programme and received regular updates on
this programme from the DoE.
·
The Portfolio
Committee on Energy also was briefed on the International Renewable Energy
Agency by the DoE in 2010; assessed the National Climate Change Response Green
Paper and Conference of the Parties (COP) 17 in 2011.
·
The Portfolio
Committee on Energy also engaged with the Industrial Development Corporation
(IDC) on implementation of New Growth Path and Industrial Policy Action Plan
(IPAP2) with special reference to the green economy and renewable energy
later that year. The Committee was also briefed on the Renewable Energy
Policies for Sustainable African Development in Ghana; and at the South Africa
Renewable Energy Initiative with SANEDI in 2012. In August 2012, the Portfolio
Committee on Energy also held a meeting of stakeholders in the
renewable energy sector; Exploring solutions to the challenges of financing and
certification of locally produced renewable energy products.
·
The Portfolio Committee on Energy also
conducted oversight visits on the renewable energy programme by visiting
various wind and solar projects in SA, e.g. Drling Wind Farm in 2011 and a
solar project in 2014 in Bloemfontein
·
The Portfolio Committee on Energy also
assessed the biofuels industry of South Africa and received numerous updates
from the DoE on the Biofuels strategy.
·
The Portfolio Committee on Energy further
assessed co-generation and tri-generation and further not only received updates
from the DoE, but further held public hearing in 2013 on co-generation and
followed this up with a round table in early 2014 where the interested and
affected parties were given the opportunity to raise comments and concerns on
this topic. This information was relayed to the DoE as they were also present
at these engagements. The Portfolio Committee on Energy also visited companies
that co-generate power from these technologies e.g. ABSA and MTN.
·
The Portfolio Committee on Energy was also
briefed on the Electric Vehicle Research Project by Eskom and Nissan in 2013.
VII.
Facilitate
the formulation and review of the Energy policies
·
The Liquid Fuels Charter of the DoE. Here the
Portfolio Committee on Energy assessed this policy with the DoE on a regular
basis over the 4th Parliament. This includes the outcome of the
Audit on the Charter. To ensure the Portfolio Committee on Energy had a clear
picture in its guidance to the DoE; the Portfolio Committee on Energy further
held public hearings and an energy stakeholder meeting where both issues
related to the upstream and downstream sector were assessed with the relevant
stakeholders. The Portfolio Committee on Energy also assessed related policies
e.g. the liquid fuels infrastructure roadmap, the basic fuel price, the biofuels
strategy and in some cases actual implementation e.g. the New Multipurpose
Product Pipeline (for the transport of liquid fuels). The above topics were
well interrogated with multiple meetings over the 4th Parliament.
·
The Portfolio Committee on Energy engaged
with NERSA more than once a year on pricing related issues. The PCE conducted
oversight on electricity pricing and the Multi Year Price Determination (MYPD),
but the Portfolio Committee on Energy was also regularly briefed by NERSA (and
the DoE), on this topic, when they presented their annual reports and strategic
plans. The Portfolio Committee on Energy also attended the public hearings on
the MYPD 3 determination to gain first hand information on the concerns of the
public, related to electricity pricing policy in SA. One other policy area
interrogated by the Portfolio Committee on Energy was that of the energy
efficiency strategy. Here the Portfolio Committee on Energy held meetings with
the DoE on this topic annually. The Portfolio Committee on Energy also held
public hearings on this topic in 2012 and further conducted a few oversight
visits to assess how industry was addressing this topic.
·
The other key focus area of the Portfolio
Committee on Energy was policies of the DoE related to gender, youth and people
within the energy sector. In 2011 the Portfolio Committee on Energy had a
meeting on the topic of “Mainstreaming Gender, Youth and
People with Disabilities in the Energy Sector” and this was followed
up with numerous engagements where this was addressed with the DoE. The
Portfolio Committee on Energy further requested regular updates from the DoE on
the status of women, youth and people with disabilities in the energy sector.
·
Finally, two other policies the Portfolio
Committee on Energy also focused on were the Integrated Resource Plan (IRP) and
the Integrated Energy Plan (IEP). These are two key policies that guide the
roll out of energy resources for SA. The Portfolio Committee on Energy was
briefed numerous times on this topic by the DoE, during the 4th
Parliament
·
In 2012 was also briefed on the outcome of
the public hearings into the Integrated Resource Plan. During this Parliament,
both the Integrated Resource Plan and the Integrated Energy Plan were revised
and were released for public comment. The Portfolio Committee on Energy also
extensively debated the Independent System Market Operator (ISMO) Bill. This
bill is aimed at creating a competitive electricity market and hence promotes
the involvement of private players in the generation space. This was sent to
the House for adoption but was not adopted during the 4th
Parliament.
·
The Portfolio
Committee on Energy was also regularly briefed on the formulation and
review of the Energy policies by the DoE during
the regular quarterly report updates and annually during their presentations of
their annual reports and five year strategic plans.
VIII.
Assess the
extent of transformation in the nuclear industry including assessment of
Nuclear Policy
·
The Portfolio Committee on Energy regularly
engaged with the DoE on nuclear issues including policy. These engagements were
during the presentation of annual reports and strategic plans of both the South
African Nuclear Energy Corporation (NECSA) and the National Nuclear Regulator
(NNR), but further during the presentations of the DoE on their reports and
plans, including the quarterly reporting.
·
Additional to the above, some areas visited
in detail by the Portfolio Committee on Energy included, nuclear skills where
the NNR and NECSA briefed the Portfolio Committee on Energy in 2010 on this
topic.
·
With regard to public acceptance of nuclear:
the Portfolio Committee on Energy assessed international experience and in
2011, Électricité de France (EDF) briefed the Portfolio Committee on Energy on
stakeholder engagement and experiences on nuclear power and public acceptance
thereof. The Portfolio Committee on Energy also looked at radioactive waste
contamination at the mine dump near the Tudor Shaft Informal Settlement and
discussed with the NNR, in 2011 the relocation of the Settlement, a topic still
not closed due to a legal issue. Nuclear safety was a key issue the Portfolio
Committee on Energy dealt with and in 2012 held a discussion with a victim of
the Fukushima Nuclear Disaster that occurred in Japan. The Portfolio Committee
on Energy also attended numerous conference and engagements on the envisaged 9600MW
nuclear programme and in 2013 held a stakeholder meeting entitled, Nuclear
energy as an option for sustainable supply of energy.
·
The Portfolio
Committee on Energy was also regularly briefed on the nuclear industry by the DoE during the regular quarterly report updates and annually
during their presentations of their annual reports and five year strategic
plans.
IX.
Monitoring
safety practices and legislation in the energy sector, including assessment of
the safety levels of electrical installation
·
The Portfolio Committee on Energy conducted
oversight on safety in energy and was briefed numerous times in Committee
meetings by the DoE and the relevant stakeholders. It was also brought up
during some of the public hearings and energy stakeholder meetings held by the
Portfolio Committee on Energy. This ensured the Portfolio Committee on Energy
had a good understanding of safety issues.
·
In 2011 the Portfolio Committee on Energy
received two presentations on Liquefied Petroleum Gas, one on implementation of
regulations and the other on issues related to Liquefied Petroleum Gas.
·
In June 2012, the Portfolio Committee on
Energy held a meeting to discuss Energy Safety Issues with briefings
by Eskom, Paraffin Safety Association of Southern Africa, Liquefied Petroleum
Gas Safety Association of South Africa and the National Union of Metalworkers
of South Africa.
·
As indicated above the Portfolio Committee on
Energy was briefed on nuclear safety, numerous times during their engagements
with the DoE, Necsa and the NNR and specifically focused on the radioactive
waste contamination at the mine dump near the Tudor Shaft Informal Settlement
and the Fukushima Nuclear disaster. In 2011, the Portfolio Committee on Energy
also conducted an oversight visit to Koeberg Power Station to gain an
assessment of the safety measures employed at the station in light of the
nuclear incident in Japan.
·
The Portfolio Committee on Energy also
conducted oversight visits e.g. the visits in 2013 to Liquefied Petroleum Gas
distribution companies and to households that utilize Liquefied Petroleum Gas
as well as that were electrified by the Integrated National Electrification
programme.
X.
Monitor
promotion of private sector participation in the electricity industry
(Independent Power Producers)
·
The Renewable Energy Independent Power
Procurement Programme allows for private sector participation in energy
generation in South Africa. The Portfolio Committee on Energy exercised
oversight on this programme and in 2012 held a panel discussion for Independent
Power Producers on Renewable Energy Procurement (Window 1). This was followed
up with a meeting of stakeholders in the
renewable energy sector: Exploring solutions to the challenges of financing and
certification of locally produced renewable energy products. There
was also a follow-up meetings held in relation to Renewable Energy Independent
Power Procurement Programme, with the DoE in November 2013. The Portfolio
Committee on Energy also conducted oversight visits to this project and visited
the Letsatsi Solar Project, near Bloemfontein in early 2014, a few weeks before
it was to be connected to the grid.
·
The Portfolio Committee on Energy also held
public hearings on the Electricity Distribution Industry over four days in July
2012 assessing the various mechanisms, available to the state to address the
challenges associated with this industry.
·
The Portfolio Committee on Energy also
assessed an additional area where there could be substantial private sector
participation in the electricity industry and that was the area of
co-generation. Here, not only was the Portfolio Committee on Energy briefed by
the Department, but also held public hearings in late 2013 and convened a round
table in Johannesburg in early 2014.
·
The Portfolio Committee on Energy also
monitored the rollout of solar water heaters and conducted oversight on the
aspect of 70% local content and further conducted oversight visits to gain
firsthand experience of the compliance testing at the South African Bureau of
Standards and visited communities that were beneficiaries of this programme in
Touwsriver in 2012 and Ivory Park in 2014.
XI.
Monitor the
implementation of the Energy Act, 2008, particularity Integrated Energy Plan
and Integrated Resource Plan 2010
Majority of the
engagements of the Portfolio Committee on Energy stems from the Energy Act of
2008 as it encompasses the objectives of the state to ensure energy security
and diversity for economic growth and poverty alleviation. In this regard this
Act looks at;
·
Energy
Supply, Optimisation and Utilization – In this regard the
Portfolio Committee on Energy engaged with the DoE on numerous occasions,
assessing the programmes and alignment of the programmes to the Energy Act. All
energy carriers including, liquid fuels, gas and electricity, were assessed.
With liquid fuels, the issue of security of supply and mechanisms to address
risks was extensively explored with the DoE. Alternative supplies including
biofuels and gas-to-liquid/coal-to-liquid options were also looked at. In terms
of liquid fuel utilization, the electric vehicle as an alternative to liquid
fuel powered vehicles was also assessed. With regard to gas, the Portfolio
Committee on Energy explored various options of supply with the DoE. In terms
of supply, the Portfolio Committee on Energy also looked at off shore
exploration (of both gas and liquids) and shale gas. They also extensive
visited the topic of infrastructure and explored mechanisms with the DoE to
ensure increased utilization. One of the findings of the Portfolio Committee on
Energy was that there needs to be increased gas in the Integrated Resource Plan
to ensure there is a key customer that drives demand. With regard to
electricity. The Portfolio Committee on Energy regularly looked at the topic of
diversity of supply with the DoE and discussed options available. This included
in-depth scrutiny of the renewable energy programme and co-generation as
alternative sources of electricity. The Portfolio Committee on Energy also
regularly engaged with Eskom on the topic of security of supply and the new
build. The Portfolio Committee on Energy also looked at optimisation and utilization
options with the DoE and Eskom e.g. the retrofit programme, Solar Water Heater
programme and 49M. The Portfolio Committee on Energy also exercised oversight
over distribution and transmission in South Africa with numerous meetings with
the various stakeholders. The pricing aspects of all carriers was also assessed
and the Portfolio Committee on Energy received regular updates from the various
stakeholders including the DoE, NERSA and SALGA
·
Integrated
Energy Planning – The Portfolio Committee on Energy also regularly
focused on the Integrated Resource Plan (IRP) and the Integrated Energy Plan
(IEP). The Portfolio Committee on Energy was briefed numerous times on this
topic by the DoE, during the 4th Parliament and in 2012 was also
briefed on the outcome of the public hearings into the Integrated Resource
Plan. During this Parliament, the Integrated Resource Plan was revised and this
and the Integrated Energy Plan were released for public comment.
·
South
African National Energy Development Institute – the Portfolio
Committee on Energy exercised oversight on the research activities of SANEDI
and offered guidance where necessary. This was not limited to the briefings on
the annual report and strategic plan but also on specific research areas, e.g.
SANEDI’s “Working for Energy Programme” and as an Energy Efficiency Champion in
2013.
·
The Portfolio
Committee on Energy was also regularly briefed on the formulation and
review of the Energy policies by the DoE during
the regular quarterly report updates and annually during their presentations of
their annual reports and five year strategic plans.
XII.
Climate
change and Millennium Developmental Goal pillars (focus on the one relevant to
energy issues)
·
The Portfolio Committee on
Energy addressed climate change in the following ways. The Portfolio Committee
on Energy was briefed by the Department of Environmental Affairs (DEA) on the
National Climate Change Response Green Paper and by the DoE on Conference of
the Parties 17 in 2011, and a progress report was submitted in 2012. The
Portfolio Committee on Energy also received a briefing on a Report on
International Climate Change and Energy Hearings in 2010.
·
In terms of climate change,
the next area that the Portfolio Committee on Energy focused on was that of
renewable energy as utilization of renewable energy results in reduced carbon
emissions. In 2010, the Portfolio Committee on Energy was briefed by the DoE on
the International Renewable Energy Agency including its programmes. Further in
2011 the Industrial Development Corporation also briefed the Portfolio
Committee on Energy on the implementation of New Growth Path and Industrial
Policy Action Plan (IPAP2) with special reference to the green economy and
renewable energy. The Portfolio Committee on Energy also looked at
international experience when they assessed a report on a Workshop on Renewable
Energy Policies for Sustainable African Development in Ghana. From 2012, the
focus shifted to the Renewable Energy Independent Power Producer Procurement
Programme as this was the flagship programme of the DoE that not only addressed
SA’s energy needs but also looked at climate change issues by addressing green
energy. The Portfolio Committee on Energy also held a panel discussion on this
topic the same year and also held a meeting of stakeholders in the
renewable energy sector to explore solutions to the challenges of financing and
certification of locally produced renewable energy products. The
Portfolio Committee on Energy also, in 2012 assessed SANEDI’s involvement in
the South Africa Renewable Energy Initiative, ensuring that there is focused
Research and Development to benefit SA in terms of renewable energy.
·
The activities of the DoE
speak to all the Millennium Development Goals in some form or the other. Hence
the Portfolio Committee on Energy ensured compliance to these when conducting
oversight and monitored the DoE in terms of their activities; in this regard,
the Portfolio Committee on Energy received a briefing from the DoE on the Department of Energy’s contributions
to government outcomes and Millennium Development Goals in August
2011. The DoE also briefed the PCE on updates to this during their
presentations of their annual reports to the PCE.
·
The first goal, “to
eradicate extreme poverty and hunger”, here the Portfolio Committee on Energy
monitored the Integrated National Electrification Programme that is in place to
ensure universal access to electricity and more specifically the Free Basic
Energy and Free Basic Alternative Energy programmes of the DoE. This is a key
programme that speaks to eradicating poverty and the Portfolio Committee on
Energy monitored implementation with the DoE and South African Local Government
Association. The INEP programme also speaks to the issues of “universal primary
education” as the Portfolio Committee on Energy also monitored electricity roll
out, including distribution, in communities, including schools. The Portfolio
Committee on Energy also visited this topic during oversight visits. It can be
noted that one of the areas that the Portfolio Committee on Energy conducted
oversight over, was the area of non-grid electrification, of which there are
already 66 000 connections.
·
In terms of “gender equality and empower women”, the Portfolio
Committee on Energy regularly monitored the DoE and the SoE’s with regard to
compliance, but further conducted oversight on gender equality and empowerment
of women on the Renewable Energy Independent Power Procurement Programme and
the Oil and Gas industry.
·
Another area assessed was
the role out of the solar water heater programme which speaks to the health
issues in the Millennium Development Goals and here the DoE monitored this
programme closely over the years to the current state of almost 400 000
geysers rolled out.
·
“Environmental
sustainability” issues were addressed by the DoE via the Renewable Energy
Independent Power Procurement Programme and the energy efficiency programmes.
As indicated above, this was carefully scrutinised by the Portfolio Committee
on Energy during the 4th Parliament, but one area needing
acknowledgement is that of Carbon Tax. The Portfolio Committee on Energy held a
stakeholder discussion on the Likely Impact of Carbon Tax on Energy Supply in
South Africa (and SADC) in July 2013 with the aim of allowing stakeholders to
address this topic with the Portfolio Committee on Energy and National
Treasury.
·
Finally in terms of “developing a global partnership for development the
Portfolio Committee on Energy monitored the Renewable Energy Independent Power
Procurement Programme to ensure there is local participation and that there is
skills and technology transfer. The Portfolio Committee on Energy also
monitored the international programme of the DoE to ensure sustainable
partnerships are built. In this regard, the Portfolio Committee on Energy, in
August 2013, engaged with the Pan African Parliament Committee on Transport,
Industry, Communications, Energy, Science and Technology in a Joint Workshop on
“Improvement
of the Energy Industry in Africa for Sustainable Development- The Role of
Parliaments”. Some of the
outcomes included, a need for harmonization of legislation and Pan African
Parliament (PAP) initiatives with New Partnership for Africa’s Development
(NEPAD) projects, the need for capacity building, strengthening of institutions
and access to data. There was an agreement between the two Parliaments that
there will be future engagements.
5.5. Reflection on the PCE oversight
performance on annual basis and on whether the objectives of its programmes
were achieved
Below is a reflection on the
PCE oversight performance on annual basis and on whether the objectives of its
programmes were achieved. The programmes were guided by the Key objectives of
the PCE which are as follows:
Hence
below is a Reflection on the PCE oversight performance on annual basis;
5.5.1.
2009 to 2010
In 2009, the PCE conducted
oversight on the electricity industry. They were briefed on the electricity
distribution industry twice, including the Regional Electricity Distributors.
They also conducted oversight on electricity pricing with Nersa and Eskom. The
PCE also conducted oversight on liquid petroleum gas pricing and conducted
oversight on the aviation fuel shortages with the DoE and the Airports Company
SA.
The PCE also conducted
oversight on the annual activities of DoE, Nersa, NNR, EDI and Necsa when they
presented their annual reports to the PCE.
In terms of oversight trips
undertaken, The PCE conducted an oversight trip to PetroSA’s
Gas-to-Liquids (GTL) Refinery in Mossel Bay in the Western Cape.
The PCE also undertook a study tour to Mozambique in 2009
to discuss how the growing demand for energy in an
age of rising fuel prices can most effectively be met, whilst simultaneously
addressing the growing dangers of climate change and ensuring that the poor
have adequate access to energy
In conducting the above
oversight activities, key oversight objectives 3, 4, 5, 7 and 11 of the PCE
were met. However it can be noted that all key oversight objectives of the PCE were
met, as although the PCE may not have held dedicated meetings to conduct
oversight over each object listed above, comprehensive oversight was conducted
over all the listed key objectives above, by the PCE, when the DoE presented
their annual report.
Hence the objectives of the PCE programmes
were achieved.
5.5.2.
2010 to 2011
In 2010, the PCE started the
programme by paying tribute to Mr. C. Schmidt. The PCE also conducted oversight
on Liquid Petroleum Gas (LPG) regulation and was briefed by the DoE. There was
also an update on LPG pricing, by the DoE later that year. The DoE also
presented their budget and strategic plans to the DoE early in the year. The
PCE conducted oversight on the Integrated Resource Plan twice that year with
briefings by the DoE. The PCE also conducted oversight on renewable energy and
was briefed by the DoE on the International Renewable Energy Agency and also
received a briefing on the Memorandum of South Africa's
membership to IRENA & Report on International Climate Change and Energy
Excess Hearings. The PCE also was briefed on the Energy Efficiency Strategy
2005 by the DoE. In this regard, the DoE presented the Solar water heating
programme to the PCE. The PCE also conducted oversight on training with a
briefing by the Energy Sector Education and Training Authority
(ESETA) and nuclear skills by DoE, NNR and Necsa. In terms of nuclear the DoE
briefed the PCE on Amendments to Articles VI & XIV.A of Statute of the
IAEA. The PCE also conducted oversight on the DoE when they were present with
the DoE performance review April to September. The DoE also presented the
Integrated Energy Plan to the PCE. The PCE also held two days of public hearing
in September on Liquid Fuels Charter & Energy Industry transformation. In
terms of the Liquid fuels Charter, there was also an Engagement with Deputy
Minister of Trade & Industry, PetroSA, National Energy Regulator of South
Africa (NERSA), Transnet & Department of Energy - follow-up briefings to
public hearings. The PCE once again conducted oversight on annual reports and
CEF, PetroSA, Necsa, DoE, NNR and EDI presented theirs. The PCE also dealt with
the 2010/2011 Budget Review and Recommendation Report.
In terms of oversight trips
undertaken, The PCE conducted an oversight trip to Khayelitsha, Cape Town to assess the progress made and do oversight
on the Kuyasa Energy Efficiency Project, Kuyasa is South Africa’s first
registered Clean Development Mechanism project activity which aims to retrofit
existing low-income houses with solar water heaters.
The PCE also undertook a study tour to
·
Mozambique
- To gain
further understanding of the international clean energy sources scene and
utilization thereof
·
Botswana - To honour an invitation by
the University of Botswana to the IASTED Conference on renewable energy and
gasses
·
France - To learn about the French Energy Mix and in
Particular their Nuclear Energy Programmes
In conducting the above oversight
activities, all key oversight objectives of the PCE were met, although the PCE
may not have held dedicated meetings to conduct oversight over each object
listed above, comprehensive oversight was conducted over all the listed key
objectives above, by the PCE, when the DoE presented their annual report. Hence
the objectives of the PCE programmes were achieved.
5.5.3.
2011 to 2012
In January, the PCE was
briefed on the Integrated Resource Plan 2 (IRP2) public hearings outcomes by
the DoE. The Minister and the DoE also briefed the PCE on the Integrated
National Electrification Programme. The DoE also reported on progress on
Implementation of the Liquefied Petroleum Gas (LPG) Regulations and the Two
Pilot Projects implemented in Atteridgeville & Tweefontein and the NNR
reported to the PCE on relocation of Tudor Shaft Informal
Settlement from mine dump contaminated with nuclear radioactive material.
The PCE was also briefed on the declining feedstock at the Mossgas Gas Field
project by PetroSA and thereafter looked at the Eskom Capital Expansion
programme. there was also an update on LPG issues by the DoE later that year.
The PCE then conducted oversight on the strategic plan, 3rd
Quarter performance and the budget of the DoE. In terms of electricity, the PCE
conducted oversight on the Electricity Distribution Industry
Goals with the Department of Energy & SALGA. The PCE was briefed
by the DoE on the Independent Systems Market Operator
(ISMO) Draft Bill. With regard to climate change issues, the National Climate Change Response
Green Paper was presented by the by Department of Environmental Affairs and COP
17 Progress Report by Department of Energy. The PCE was also briefed
by the DoE on Energy Efficiency and Energy Saving. Focus on Energy Efficiency: briefing
by South South North Africa, Green Building Council of South Africa, PEER
Africa, Council for Built Environment & Council for Scientific &
Industrial Research. There was also a briefing by the Industrial Development Corporation
(IDC) on implementation of New Growth Path and Industrial Policy Action Plan
(IPAP2) with special reference to the green economy and renewable energy
The PCE also conducted oversight on
the Multi-Products Pipeline Project, Wind Energy & REFIT tariffs
with the DoE. There was a briefing by Électricité de France
(EDF) on stakeholder engagement and experiences on nuclear power and public
acceptance thereof.
In terms of annual reports, the following entities presented
theirs; CEF, DoE, NNR, Nersa, Necsa and PetroSA. In this regard the PCE was
briefed on the Performance of Department of Energy
by Department of Performance Monitoring & Evaluation. The PCE
also dealt with the Budgetary Review and Recommendations process and was also
briefed by the Auditor General in this regard.
Finally the PCE also dealt with Mainstreaming Gender, Youth and
People with Disabilities in the Energy Sector with the DoE.
In terms of
oversight trips undertaken, The PCE conducted an oversight trip to
·
Cape Town – Department of Energy regional offices to
assess operations of the regional offices of the Department of Energy in the
Western Cape.
·
Koeberg Power Station to
get an understanding of safety measures employed at the station in view of the
nuclear accident in Fukushima nuclear plant in Japan
·
Darling Wind Farm where
the oversight visit was aimed at giving the Committee an insight into the
progress made on efforts to incorporate wind energy into the energy mix of the
country.
·
CEF Offices in Johannesburg to get an understanding of the
affairs of the Central Energy Fund (CEF), including all its projects,
subsidiaries
In conducting the above
oversight activities, all key oversight objectives of the PCE were met,
although the PCE may not have held dedicated meetings to conduct oversight over
each object listed above, comprehensive oversight was conducted over all the
listed key objectives above, by the PCE, when the DoE presented their annual
report, Strategic plan and presentation of their quarterly reports. Hence
the objectives of the PCE programmes were achieved.
5.5.4.
2012 to 2013
In 2012, the PCE conducted
oversight on legislation and was briefed on the National Energy Regulator
Amendment & Electricity Regulation Second Amendment Draft Bill by the DoE.
The other piece of legislation handled by the PCE was the Independent System
and Market Operator (ISMO) Bill. Here the PCE held public hearings in May and
received the department’s response to submissions and received a report back
from the task team in August and later in September where they presented
scenario building.
The DoE also presented their
response to the State of the Nation Address and Budget speech, their
international programmes and later in the year on an update on international
agreements and participation in international bodies, their third quarter and
fourth 2011/2012 performance, their strategic plan and their annual report. The
DoE also undated the PCE on the Integrated Energy plan. With regard to the
entities, the year started with a Presidential Review SOE Committee on
State-Owned Entities, reporting to Department of Energy. The
entities also presented their strategic plans as well as their annual reports
later in the year. There was also a briefing by the Energy Minister on Service Delivery
Agreement Outcomes & Department of Performance Monitoring & Evaluation
input and by Auditor-General on Department of
Energy 2011/12 Annual Report & CPUT Energy Institute review and
finally with regard to annual reports, Evaluation on Management Performance of
Department of Energy: briefing by Department of Performance Monitoring and
Evaluation. In terms of PetroSA, the department also briefed the committee on
PetroSA “Outlook 2012 to 2016”, Integrated Energy Centre Programme.
The DoE also updated the PCE
on Renewable Energy Independent Power Producer Procurement and in June held Panel discussion for Independent
Power Producers on Renewable Energy Procurement (Window 1). The PCE also held a Meeting of stakeholders in the
renewable energy sector: Exploring solutions to the challenges of financing and
certification of locally produced renewable energy products. The
Department of Energy & World Wildlife Fund briefed the PCE on Energy
outcomes of COP 17 and in February Committee Report on Workshop on
Renewable Energy Policies for Sustainable African Development in Ghana.
The PCE also held public hearings on energy efficiency in September.
Energy safety was also an issue that the PCE conducted
oversight over with briefings by Eskom, Paraffin Safety Association of Southern
Africa, Liquefied Petroleum Gas Safety Association of South Africa &
National Union of Metalworkers of South Africa. The PCE also conducted
oversight on nuclear safety with a discussion with a victim of Fukushima
Nuclear Disaster in Japan
In terms of electricity distribution, the PCE was briefed
by the Department and later held public hearings on Restructuring of
Electricity Distribution Industry in July and in terms of electricity, the PCE
conducted oversight on Electricity Pricing Policy and Impact of Multi-Year
Price Determination with Nersa and the DoE and also received an update on the
Eskom led new build programme and on Eskom Multi-Year Price Determination
(MYPD3) application to NERSA. Related to this the PCE conducted oversight on Free Basic Electricity / Alternative
Energy and Electrical Power Interruptions: solutions and strategies
and later in April the Department of
Energy, Eskom & Cennergi updated the PCE on the Solar Water Heater
programme
The PCE also conducted oversight on the oil and gas
sector. The DoE presented the progress on the Cleaner Fuels 2 programme in
March and The Liquid Fuels Charter audit outcomes
were presented to the PCE in August and also the Liquefied Petroleum Gas Option for
Expansion by Department of Energy. In November the PCE held a Energy
Stakeholder Meeting on Transformation in Petroleum Industry. The DoE also
briefed the PCE on Liquid Fuels Infrastructure Roadmap and Basic Fuel Price.
In terms of skills development, the DoE presented the
skills development in the energy sector to the PCE in September and in November
conducted oversight on Energy Sector skills development with
briefings on Local Government SETA, Construction SETA, Chemical Industries
SETA, Wholesale & Retail SETA input.
Two additional areas the PCE
conducted oversight over was Investment Flows for Change
With briefings by Africa Institute of SA & Standard
Bank and the Budgetary Review and Recommendation process
In terms of
oversight trips undertaken, The PCE conducted an oversight trip to
·
Hluleka and eLucingweni (Eastern Cape) and
Durban
(KwaZulu-Natal) to visit to refineries
and meeting with community around the refineries; visit Hybrid energy Systems;
conduct an Energy Public meeting and visit the Marianhill Landfill site
·
Oversight visit to Touwsriver Solar Park Power
project:. The Committee wanted to to engage the Community of Touwsriver, with
the view of doing an oversight in order to gain an understanding of how the
project is evolving, including understanding the challenges faced by ordinary
people and ways of addressing such challenges if any exist. The aim of the visit
is to try and understand the impact of this development project on matters of
climate change.
·
Businesses in Cape Town -
The committee undertook the visit to ascertain what businesses are doing with
regard to energy efficiency initiatives as the committee envisage undertaking
public hearings to address energy efficiency issues, during the 3rd Term 2012.
·
Century City – Aurecon Engineers and Epping – St
Gobain The committee undertook the visit to ascertain what businesses are doing
with regard to energy efficiency initiatives as the committee envisage
undertaking public hearings to address energy efficiency issues, during the 3rd
Term 2012. The visits to these projects will provide the committee the
necessary information when deliberating on energy efficiency issues not only
during its deliberations and engagements during the public hearings, but at other
forums as well. This trip can also be considered a study tour.
The PCE also undertook a study tour to PetroSA Synthetic Fuel Centre at UWC to
investigate and learn what the PetroSA Synthetic Fuel Centre does, which
focuses on improving the efficiency of the COD process and the possibility of
using alternative feed stocks such as alcohols and naphthas.
In conducting the above
oversight activities, all key oversight objectives of the PCE were met,
although the PCE may not have held dedicated meetings to conduct oversight over
each object listed above, comprehensive oversight was conducted over all the
listed key objectives above, by the PCE, when the DoE presented their annual
report, Strategic plan and presentation of their quarterly reports. Hence
the objectives of the PCE programmes were achieved.
5.5.5.
2013 to 2014
In
2013, the PCE focused on legislation this year also, and held deliberations on
the Independent System Market Operator (ISMO) Bill at a few meetings, including
deliberations on public comments and the impact study on the transfer of
transmission.
The
DoE presented their legislative programme to the PCE in February, thereafter
the implications of the State of the Nation address on the DoE; they also
presented their Strategic and Annual Performance Plan 2013; their 3rd
and 4th quarter performance reports and their annual reports; the 1st
and 2nd quarter performance report for 2013/4 in October. The
entities CEF and subsidiaries, Nersa, NNR, Necsa and SANEDI presented their
strategic plans in April and their annual reports later in the year to the PCE.
The AG presented the audit outcome with regard to the DoE and their entities to
the PCE and the Financial and Fiscal Commission briefed the PCE on its
recommendations related to energy. The PCE was also updated on Energy Strategic
Integrated Projects (SIPs) by the DoE.
In
terms of electricity, the PCE conducted oversight on Free Basic Alternative
Energy/Free Basic Electricity with presentations by the DoE. The DoE also
presented an update on the Integrated National Electricity Programme. With DoE,
Nersa, Eskom and SALGA on Eskom’s multiyear price determination application.
The PCE also conducted oversight on . the PCE also conducted
oversight on Free Basic Electricity with
Department of Cooperative Governance & Municipal Infrastructure Support
Agent (MISA) briefings, Electricity Sector restructuring & draft
Integrated Energy Plan with the DoE and Municipal Tariff Determinations:
National Energy Regulator, National Treasury, SALGA briefings; Working for
Energy: SA National Energy Development Institute updates. The PCE
also conducted oversight on electricity sector regulation with Nersa. The PCE
also received a briefing from IDC & SA Calcium Carbide on co-generation and
held public hearings into co-generation in July. In September an energy
stakeholder meeting was held on Nuclear energy as an option for sustainable
supply of energy and the PCE received an update on the Renewable Independent
Power Producer Procurement Programme by the DoE. The PCE als received an Update on pilot Approach to
Distribution Asset Management (ADAM) with input by Department of Energy, SALGA,
Municipal Infrastructure Support Agency & Financial and Fiscal Commission
In
terms of oil and gas, Nersa updated the PCE on Transnet pipeline tariff and
Sasol gas prices. The PCE conducted oversight on the downstream liquid fuels sector with
input by wholesalers, storage sub-sectors and retailers; Liquid fuels pricing
briefing by Department of Energy. The DOE also presented Industrial
Strategy update on Biofuels & Transformation of the Gas Industry.
The PCE also received a briefing from Eskom and Nissan on
the Electric Vehicle Research Project, held a second day of public hearings on
energy efficiency in January and in September conducted oversight over the National Energy Efficiency Strategy
and South African National Energy Development Institute as Energy Efficiency
Champion. The PCE also held a stakeholder discussion on Likely
Impact of Carbon Tax on Energy Supply in South Africa (and SADC) and finally a
media briefing session was held in 2013 also in terms of administrative
functions, the Budgetary Review and Recommendation process.
In 2014, the PCE conducted oversight on energy efficiency
with a presentation by the DoE on the Energy Efficiency Strategy. The PCE was
also briefed by the Department of Energy on its 3rd Quarter
Performance Report for 2013/14. The PCE also held an energy stakeholder meeting
on the Assessment of the Upstream Sector in the Oil and Gas Industry. Public
hearings on the ‘Possible
transformation of the gas sector through partnerships’ was held in January at
the University of Johannesburg. The PCE also held a round table discussion on
co-generation at the SANEDI headquarters in Johannesburg. This was to allow
stakeholders, who normally cannot come to Cape Town, an opportunity to air
their views.
The PCE, in August 2013, engaged with the Pan African
Parliament Committee on Transport, Industry, Communications, Energy, Science
and Technology in a Joint Workshop on “Improvement of the Energy Industry in Africa for
Sustainable Development- The Role of Parliaments”. Some of the outcomes included, a need for
harmonization of legislation and PAP initiatives with NEPAD projects, the need
for capacity building, strengthening of institutions and access to data. There
was an agreement between the two Parliaments that there will be future
engagements.
In terms of
oversight trips undertaken in 2013, The PCE conducted an oversight trip to
·
Paarden Eiland – BPSA and Easigas – Bellville-South
Portfolio Committee on Energy visited industrial and commercial sites as well
as household supply facilities that use LPG . This can also be considered to be
a study tour.
·
SA Breweries - Newlands Portfolio Committee on
Energy will visit project that generate energy from waste. This can also be
considered to be a study tour.
In terms of study tours, as part of the PAPSAEI Joint
Workshop, the Members of the PAP Committee on Transport, Industry, Energy,
Communication, Science and Technology as well as the Members of the South
African Portfolio Committee on Energy visited three Energy projects in the
Gauteng area, focusing on waste to energy and co-generation and tri-generation
undertaken by SA entities. These were The Johannesburg Metro Municipality
Landfill Gas to Energy Project; the MTN 2MW Tri-generation Plant; and the ABSA
Towers West Energy Centre Project.
In terms of
oversight trips undertaken in 2014, The
Portfolio Committee on Energy conducted oversight on various energy related
projects in a number of provinces. The Committee plans to firstly visit solar
home systems that have been implemented in KZN. Further, the committee will
visit areas in KZN where the Renewable Energy Independent Power Producer Procurement
Programme (REIPPP) are or are being implemented, In
Gauteng, the Portfolio Committee on Energy will be holding public hearings on
transforming the gas industry through partnerships and will further focus on
cogeneration and trigeneration power initiatives and partnerships. The week
will end with a visit to Integrated National Electrification Programmes (INEP)
(and solar water heater programmes) in Gauteng.
In conducting the above
oversight activities, all key oversight objectives of the PCE were met,
although the PCE may not have held dedicated meetings to conduct oversight over
each object listed above, comprehensive oversight was conducted over all the
listed key objectives above, by the PCE, when the DoE presented their annual
report, Strategic plan and presentation of their quarterly reports. Hence
the objectives of the PCE programmes were achieved.
5.6. Other activities the committee undertook in the period under review
5.6.1. Public Hearings
5.6.2.
Energy Stakeholder Meetings
·
November 2011 – Parliament, Cape Town -
Topic: “Prospects of job creation to
local manufacturing in the renewable energy sector”.
·
January 2012 – Durban University of
Technology (DUT), Durban (KZN) - Topic: “Management of strategic fuel stocks –
options for SA”
·
June 2012 – Parliament, Cape Town - Topic: Panel discussion on Renewable Energy Procurement for Independent Power
Producers Bidding: Window 1
·
August 2012 –
Parliament, Cape Town – Topic: “Exploring solutions to challenges on
financing and certification of locally produced renewable products”
·
12 September 2013 – Parliament, Cape Town -
Topic: “Nuclear energy as an option for
sustainable supply of energy”
·
20 February 2014 – Parliament, Cape Town –
“Assessment of Upstream Sector in oil and gas industry”
5.6.3.
Roundtable discussions
5.6.4. Workshops
5.6.5. Legislation
|
Year |
Name of Legislation |
Tagging |
Objectives |
Completed/Not Completed |
|
2009/10 |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
|
|
|
2010/11 |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
|
|
|
2011/12 |
1 |
S75 |
To provide for the establishment of an Independent System and Market
Operator as a state-owned entity which will provide an independent system
operation to ensure safe, secure and efficient operation of the integrated
power system, trading of electricity at wholesale level |
Completed (reported on the bill to the House) |
|
|
|
|
|
|
|
2012/13 |
N/A |
N/A |
N/A |
|
|
|
|
|
|
|
|
2013/14 |
1 (recommitted) |
S76 |
To provide for the establishment of an Independent System and Market
Operator as a state-owned entity which will provide an independent system
operation to ensure safe, secure and efficient operation of the integrated
power system, trading of electricity at wholesale level |
Completed (reported on the Bill to the
House) |
a) Challenges emerging
The
following challenges emerged during the processing of legislation:
·
Technical/operational challenges that may have delayed legislation and/or
complicated the processing thereof
ISMO Bill [B9 – 2012] - The Department took a
long time to introduce the Bill to Parliament. The introduction of the Bill was
firstly mooted in 2010, but the Bill was eventually tabled during March 2012.
The bill was initially tagged as a Section 75, but after processing the bill,
the bill was retagged as a Section 76. During 2013, the Bill was recommitted to
the committee on which we revised the report on the Bill, which was
subsequently ATCd.
The Department’s legal unit, especially the
unit responsible for the drafting of legislation, needs to be beefed up,
considering that more legislation will be tabled in Parliament during the 5th
Parliament.
Further to the above the DoE has been
extremely slow in introducing bills to Parliament.
5.6.6. Oversight trips undertaken
The following oversight trips were undertaken:
|
Date |
Area Visited |
Objective |
Recommendations |
Responses to Recommendations |
Follow-up Issues |
Status of Report |
|
05 - 07 October
2009 |
PetroSA’s
Gas-to-Liquids (GTL) Refinery in Mossel Bay, Western Cape |
During the
deliberations at the committee’s Introductory Workshop [13-13 august 2009],
PetroSA invited the Portfolio Committee to visit the Port Elizabeth plant of
its latest oil investment with the Coega Industrial Development Zone, so as
to witness the progress made there. |
Need to collect
information from former Committee
Secretaries |
A full
feasibility study had been launched into the proposed Project Mthombo
refinery on March 26th 2013, following the signing of a two year framework
agreement with Sinopec |
The outcome of
this study needs to be presented, including the next phase of the project to
the Portfolio Committee on Energy |
Adopted |
|
17 August 2010 |
Khayelitsha,
Cape Town |
To assess the
progress made and do oversight on the Kuyasa Energy Efficiency Project,
Kuyasa is South Africa’s first registered Clean Development Mechanism
project activity which aims to retrofit existing low-income houses with
solar water heaters. |
Need to collect
information from former Committee Secretaries |
The Portfolio
Committee on Energy regularly engaged with the DoE on the topic of SWH and
the challenges and rollout thereof. The DoE focused on efforts and to date
390 000 homes have had SWH installed. |
The Portfolio
Committee on Energy still needs to follow-up that the DoE ensures it
accelerates this programme to ensure delivery of the 1 million SWH and also
addresses issues of community involvement, quality and service contracts |
Adopted |
|
28 June 2011 |
Cape Town –
Department of Energy regional offices |
Assessing
operations of the regional offices of the Department of Energy in the
Western Cape |
|
The regional
offices were restructured to make them more effective. The Portfolio
Committee on Energy regularly engaged with the DoE on the functioning of the
regional offices and specifically on the issues of interactions between the
different offices. |
The
effectiveness of the regional offices, now that they are restructured needs
to be assessed. |
Adopted |
|
29 June 2011 |
Cape Town -
Koeberg Power Station |
Getting an
understanding of safety measures employed at the station in view of the
nuclear accident in Fukushima nuclear plant in Japan |
·
Need to target public
representatives in terms of raising awareness as these public
representatives would in turn communicate with people on the ground. ·
The Committee would
engage the department in order to ensure that something was done to avail
more funds that would be dedicated towards public education around nuclear
programmes in the country. |
The DoE, NNR and
Necsa indicated that there are regular forums with communities that live
around nuclear facilities, and issues are dealt with. The DoE
indicated that they are busy with public awareness campaigns around nuclear
including radio and TV) and further, Necsa has the visitors centre to
educate the public about nuclear |
Feedback from
communities living around these facilities as to, how are their concerns
being addressed. |
Adopted |
|
29 June 2011 |
Cape Town -
Darling Wind Farm |
The oversight
visit was aimed at giving the Committee an insight into the progress made on
efforts to incorporate wind energy into the energy mix of the country. |
·
There was a need to
gather more information that will assist in the intervention of what seemed
to be a stand-off between the Community and investors of the darling wind
farm. ·
Certain allegations
about the origins of BEE partners who took 33% and that they did not come
from the darling Community needed to be probed. ·
The Committee promised
to use its interest (emanating from the 48% stake belonging to CEF) to get
to the bottom of what had caused such huge dissatisfaction from the
community. ·
The Committee promised
to channel other social concerns which emanated from the meeting to relevant
government departments and committees in parliament. |
The Portfolio
Committee on Energy has engaged with the DoE and requested that they deal
with community related issues on all REIPPP projects. The DoE indicated that
there are some issues on some projects |
The DoE to
address the Portfolio Committee on Energy on progress in this area and if
they are using lessons learnt on some projects to assist others that are
having challenges |
Adopted |
|
01 – 05 August
2011 |
CEF Offices –
Sandton, Johannesburg |
Oversight
exercise to get an understanding of the affairs of the Central Energy Fund
(CEF), including all its projects, subsidiaries. |
·
There was a need for continued interaction
and sharing of strategic activities between the Department, of Energy,
Central Energy Fund, its divisions, subsidiaries, and associates and the
Portfolio Committee for Energy. ·
The Committee expects a briefing about the
outcomes of the upcoming refinery manager’s forum expected to take place as
organised by SASDA. ·
Committee expressed an interest to get a
briefing about the profiles of new employees who may be hired to head
strategic projects under CEF. ·
Department of Energy was encouraged to lend
more support to CEF, especially regarding clean energy projects. ·
Energy efficiency in government buildings seen as important
intervention and CEF was therefore requested to consider getting involved in
such intervention. ·
The situation surrounding Phillips Trading Company needed to be
re-negotiated. ·
The committee stressed the importance of job creation in every
project. Maximising profits should not be the sole aim of initiating
projects and the committee would measure the success of every project based
on its viability financially as well as job creation ·
CEF was urged to be biased towards promoting local manufacturing as
this would play a key role in contributing to job creation. ·
For future interactions and sharing of information, CEF was
encouraged to make use of Parliamentary Library Services for any reading
material that could be relevant for Committee members. |
The refitting of
government is being spearheaded by the Department of Public Enterprises. CEF is currently
in a restructuring phase where one of the options being considered is
greater involvement in the renewable energy sector. There were regular
interactions between the DoE, CEF and the Portfolio Committee on Energy on
issues affecting CEF. |
The
restructuring of CEF needs to be monitored, to ensure it is a viable stand
alone entity. |
Adopted |
|
16 – 20 January
2012 |
·
Hluleka and eLucingweni (Eastern Cape) ·
Durban (KwaZulu-Natal) |
·
Visit to refineries and meeting with community around the refineries ·
Visit to Hybrid energy Systems ·
Energy Public meeting ·
Visit to the Marianhill Landfill site |
·
The Department of Energy is to encourage
the Council for scientific and Industrial Research (CSIR) and the SA
National Energy Development Institute (SANEDI) to salvage whatever is left
of the hybrid energy system at eLucingweni and establish a joint project
with the Walter Sisulu University for local schools in the area. ·
The Department of Energy to add focus on
the development of hybrid mini-grid or off-grid energy systems to address
rural development. ·
With regard to adverse effects from
refineries in eThekweni, the Department of Environmental and Water Affairs
to revive the joint initiative with the eThekweni Metro to address
environmental issues in the vicinity around the refineries. |
There has been
substantial investment in the off-grid electrification programme, by the DoE
and to date 66 000 homes have received off grid electricity. In terms of
landfill sites, there has been some progress in extracting methane from
these sites for the generation of electricity. |
There was a take
up of 18 of the allocated 25MW for landfill gas on the REIPP programme,
hence the Portfolio Committee on Energy needs to monitor that there is
greater take up of landfill gas in the upcoming windows. |
Adopted |
|
09 March 2012 |
Touwsriver,
Western Cape |
Oversight visit to Touwsriver Solar Park Power project: The Committee wanted to to engage the Community of Touwsriver, with
the view of doing an oversight in order to gain an understanding of how the
project is evolving, including understanding the challenges faced by
ordinary people and ways of addressing such challenges if any exist. The aim
of the visit is to try and understand the impact of this development project
on matters of climate change. |
The
Portfolio Committee on Energy recommends that the Minister of Energy should: ·
Engage extensively with the communities of
De Doorns and Touwsriver on their concerns on the project and more
specifically about the 5% stake the community has in the project. ·
Engage with the contractors and Soitec to
address concerns raised by the local communities. ·
Explore opportunities to expand this
project jointly with the Minister of Trade and Industry. ·
Ensures that public participation be
implemented as a process distinct from but linked to processes such as
Environmental Impact Assessment. |
The DoE
indicated that there are challenges with the involvement of communities in
the REIPP programmes but this is being addressed. The PCE did visit a
successful project near Bloemfontein in 2014 with this regard. |
The PCE is to
conduct oversight over the involvement of communities in the REIPP programme
and ensure that challenges identified with regard to community involvement
be addressed by the DoE The PCE conduct
oversight as to how the DoE has addressed the concerns identified in De
Doorns |
Adopted |
|
21 – 22 June
2012 |
Cape Town |
The committee
undertook the visit to ascertain what businesses are doing with regard to
energy efficiency initiatives as the committee envisage undertaking public
hearings to address energy efficiency issues, during the 3rd Term 2012. The
visits to these projects will provide the committee the necessary
information when deliberating on energy efficiency issues not only during
its deliberations and engagements during the public hearings, but at other
forums as well. |
·
Promotes Kuyasa Clean Development Mechanism Pilot Project
and facilitates its replication in the rest of the country; ·
In partnership with the
relevant Ministers, ensure that policy development for all new public
buildings to be environmentally sensitive with energy efficient designing; ·
Ensure promotion of
Industrial Energy Efficiency Improvement Project and increased resourcing of
the National Cleaner Production Centre ·
Promotes gas as an
alternative source for industrial use and reviews policy to facilitate such.
|
The DPW
indicated that they are busy with the retrofit programme. There are new
regulations with regard to buildings in South Africa. This will result in
more EE designs. The DoE is
revising the gas policies currently |
Strong
incentives exist for energy efficiency improvement in the South African
industry, namely increased profit, reduction of GHG emissions, and the need
to maintain economic competitiveness. Several case study assessments of
industry leaders in South Africa suggest that South African industry has an
even higher potential for energy cost saving. The
establishment of a fuels innovation centre at pilot-plant scale represents a
new venture as far as technology development partnerships between industry
and academia in South Africa are concerned. |
Adopted |
|
27 November 2012 |
·
Century City – Aurecon Engineers ·
Epping – St Gobain |
·
The committee undertook the visit to
ascertain what businesses are doing with regard to energy efficiency
initiatives as the committee envisage undertaking public hearings to address
energy efficiency issues, during the 3rd Term 2012. The visits to these
projects will provide the committee the necessary information when
deliberating on energy efficiency issues not only during its deliberations
and engagements during the public hearings, but at other forums as well. |
·
Promotes Kuyasa Clean Development Mechanism Pilot Project
and facilitates its replication in the rest of the country; ·
In partnership with the
relevant Ministers, ensure that policy development for all new public
buildings to be environmentally sensitive with energy efficient designing; ·
Ensure promotion of
Industrial Energy Efficiency Improvement Project and increased resourcing of
the National Cleaner Production Centre ·
Promotes gas as an
alternative source for industrial use and reviews policy to facilitate such.
|
The DPW
indicated it is in the process of retrofitting all public buildings in SA. SANEDI indicated
that it need to evolve as a EE champion of South Africa The DoE
indicated that the Gas policy is being ing revised in SA and they are in
discussions with Mozambique to access more gas. The IRP with a larger gas
footprint is also being revised, spurring on investment |
The PCE needs to
conduct oversight over the rollout of the retrofit programme in public
buildings and at municipal level. The PCE needs to
conduct oversight that the DoE puts in place mechanisms for the creation of
a EE champion in SA. The PCE needs to
conduct oversight on the revised Gas policies. |
|
|
31 July 2013 |
Stellenbosch, Klapmuts and Blue Downs |
·
Portfolio Committee on Energy visited
identified INEP projects in the Western Cape ·
Portfolio Committee on Energy will visit
Enkanini to witness utilisation of cost effective building material that is
environmentally sound including energy efficiency and solar energy |
·
The City of Cape Town to be written a
formal letter and request to address issues raised ·
The PC on Energy to arrange its own
meeting with the Gas Users group to get insight of its programmes, proposals
and concerns. ·
The Committee would require a clarification
on how the proposed changes on the Stellenbosch Municipality Indigent Policy
would affect the Free Basic Electricity (FBE), Free Basic Alternative Energy
(FBAE) subsidies and the R100 monthly fee which the community is currently
paying for solar electricity. ·
Furthermore the Committee noted the idea
of investing on bio-digester toilets through collaboration with the
Stellenbosch Municipality in order to improve household access to
sanitation, which would ultimately improve household access to gas electricity.
·
The Committee recommended the
Sustainability Institute to collaborate with the Department of Human
Settlements and the Department of Health. ·
The Sustainability Institute indicated
that an “incremental approach” to electrification appeared to be a good
approach for informal settlements. ·
It was suggested that the Department of
Energy visits the Institute and discuss options available regarding projects
of this nature. ·
The Director of the Sustainability
Institute, Mr Mark Swilling suggested that the Committee hold Public
Hearings on Incremental Approach to Energisation. |
A public hearing
was held with the gas industry that included the DoE so that they become
aware of the challenges. The DoE has been
requested to assess the grid and non-grid electrification programmes and
ensure all stakeholders form part of the process |
The PCE follow
up with City of Cape Town and Stellenbosch Municipality on issues raised The PCE evaluate
if it wishes to hold Public Hearings
on Incremental Approach to Energisation |
|
|
01 August 2013 |
·
Paarden Eiland – BPSA ·
Easigas – Bellville-South ·
SA Breweries - Newlands |
·
Portfolio Committee on Energy will visit
industrial and commercial sites as well as household supply facilities that
use LPG ·
Expert testimony on LPG industry will be
invited will be invited to the oversight visit ·
Portfolio Committee on Energy will visit project
that generate energy from waste ·
Expert testimony on waste to energy
technology will be invited to the
oversight visit |
The
Minister of Energy to address the following: ·
SAB indicated that they are willing to
partner with government in terms of skills development, investment in energy
projects and job creation (SAB sees great opportunity in clearing alien
vegetation). ·
Institutional arrangements in project
management of electrification projects at municipal level, between the
Department of Energy, ESKOM and a municipality be reviewed and improved. ·
Technical and financial approvals for
electrical installations be rationalised. ·
Reviewal of the modus operandi of payment
for electrification projects by the Department of Energy and ESKOM including
exploration of guarantees and improved formalisation. ·
Installation of solar water heaters in
Nuwe Begin with a priority on the old and disabled. ·
Arranges a meeting between the Department
of Energy and the gas industry to address all gas related issues raised in
the report. ·
Arranges a meeting with the Gas Users
Group to address their proposals and concerns. |
The DoE
indicated that the NERA amendment bill is in the process of being revised
and the PCE has requested that the role of Nersa in terms of municipalities
be assessed. The DoE
acknowledged that there are issues with regard to the current rollout of SWH
and this will be addressed in conjunction with all the relevant stakeholders
to accelerate rollout. Public hearings
were held with the gas industry. The DoE indicated it is reviewing the gas
policies |
Skills
development in the energy sector. The DoE to present their mechanism to
involve industry The working
relationship between the various stakeholders in electrification programmes
needs some attention from the DoE The Gas related
policies need to be reviewed by the PCE once updated by the DoE |
Adopted |
|
27 – 31 January
2014 |
·
Pietermaritzburg - KwaZulu-Natal, ·
Bloemfontein - Free State ·
Johannesburg (Ivory Park) - Gauteng |
The Portfolio
Committee on Energy conducted oversight on various energy related projects
in a number of provinces. The Committee plans to firstly visit solar home
systems that have been implemented in KZN. Further, the committee will visit
areas in KZN where the Renewable Energy Independent Power Producer
Procurement Programme (REIPPP) are or are being
implemented, In Gauteng, the Portfolio Committee on Energy will be holding
public hearings on transforming the gas industry through partnerships and
will further focus on cogeneration and tri-generation power initiatives and
partnerships. The week will end with a visit to Integrated National
Electrification Programmes (INEP) (and Solar water heater programmes) in
Gauteng |
·
Policy reviewal on
non-grid electricity system including budget allocation as well as the
technology to accommodate increase of power be initiated as matter of
urgency. ·
The
Department of Energy to upgrade
non/off-grid systems and also make them scalable to accommodate those who
may express additional need and appropriately address energy
poverty ·
The
Department of Energy to explore “
permanency” or long term approach on the non/off-grid electricity system in
the rural areas ·
Strong
coordination between various stakeholders especially Department of Energy,
ESKOM, and the municipalities be addressed as a matter of urgency ·
Intensive
public education and mass
communication with the help of SABC, GCIS, local community media especially
community radio stations and municipal communications units on non/off-grid
electricity system including Solar Home Systems ·
Grid electrification
programme be accelerated in both Msinga and Ndwedwe Municipalities ·
Address the huge backlog
in terms of general service delivery in Msinga Municipality ·
Improve customer care
especially for the sickly and elderly particularly at pay points ·
Explore micro-insurance
arrangements for damaged or stolen equipment ·
Department
of Energy to explore jointly with the Department of Basic Education
introduction of appropriate electrification of schools ·
Integration
of FBE and municipalities to be consistent in their allocation of subsidy –
such be done through the support of SALGA ·
A socio-economic impact
study of the programme to be conducted ·
Issues
below be referred to relevant departments and/or spheres of government for
their consideration: o
Lack
of potable water NOTE: Water
is the main challenge and need in Msinga Municipality
|
The DoE
indicated that the non-grid electrification programme was still in its infancy
but efforts will be made to accelerate it and deal with concerns raised. The DoE
indicated the non-grid solar home systems were upgraded but does not include
heating The DoE
indicated it will address the issue of the working relationship between the
different stakeholders |
Mechanisms of
communication used by the DoE to inform communities of non-grid
electrification systems The DoE, with
other Department, accelerate the rollout of grid electrification and basic
services in the Msinga and Ndwedwe areas Follow up
with Eskom and service providers on
service contracts and damaged/stolen equipment |
Adopted |
The
following challenges emerged during the oversight visit:
·
Technical/operational challenges
1.
Logistics at times posed a challenge. Vehicles were not available to
transport members when required or the drivers were not briefed as to what was
required of them
2.
Some area the PCE conducted oversight over required special (4x4)
vehicles to transport members in due to the terrain
3.
In some locations, presentation equipment was required which was not
available.
4.
In some cases, experts joined the PCE on oversight trips and hence
transport arrangements need to incorporate this
·
Content-related challenges
1.
In some cases, translation services may have been needed.
2.
In some cases not enough information was available on the sites being
visited
3.
In the case of experts accompanying the PCE, in some cases, the experts
are not always easy to find
4.
More time and resources needs to be allocated to allow Committees to
conduct more detailed oversight in areas of concern
a) Issues for follow-up
The 5th
Parliament should consider following up on the following concerns that arose:
1.
In terms of Project Mthombo, the PCE needs to
exercise oversight over the following. The outcome of the feasibility study
into the proposed Project Mthombo refinery needs to be presented, including the
next phase of the project to the Portfolio Committee on Energy
2.
The Portfolio Committee on Energy still needs
to conduct oversight that the DoE ensures it accelerates the Solar Water Heater
programme to ensure delivery of the 1 million SWH and also addresses issues of
community involvement, quality and service contracts
3.
The DoE needs to present to the PCE on the
effectiveness of the DoE regional offices, now that they are restructured.
4.
Further, the mechanisms used by the DoE to
incorporate the Regional offices into National DoE office activities needs to
be demonstrated to the PCE by the DoE
5.
The PCE should conduct oversight on the
communities living around nuclear facilities as to, how are their concerns
being addressed by the DoE, the NNR and Necsa.
6.
The DoE to address the Portfolio Committee on
Energy on progress in this area and if they are using lessons learnt on some
projects to assist others that are having challenges
7.
The PCE needs to conduct oversight on the
restructuring of CEF, to ensure it is a viable standalone entity
8.
The PCE needs to conduct oversight on the REIPPP programme to ensure the
DoE is doing all necessary to ensure take up of landfill gas as part of the
programme in the upcoming windows.
9.
The PCE needs to conduct oversight on the energy challenges faced by
ordinary South Africans and how these are being addressed by the DoE
10. The DoE needs to demonstrate what it is doing,
going forward in terms of energy efficiency in South Africa
11. The PCE (in conjunction with other Portfolio
Committees) needs to conduct oversight on Energy efficient buildings in South
Africa that save energy
12. The PCE needs to conduct oversight on the
rollout of LPG for domestic use, especially for indigent communities
5.6.7. Study tours
undertaken
The following study tours were undertaken:
|
Date |
Places Visited |
Objective |
Lessons Learned |
Status of Report |
|
17–21 September
2009 |
Mozambique |
The objectives of the hearing encompassed the following;
This was the fifth
International parliamentary hearing in a series of nine organized by the
e-Parliament for African, Caribbean and Pacific legislators between 2008 and
2010. |
·
There is a need for
widespread awareness of gender differences when designing energy policies.
Men and women have different energy needs and these differences have to be
accounted for when providing a rural community with electricity. Gender
audits, like the one developed in Botswana, can help identify gender gaps in
energy policies and suggest ways to address them. ·
When planning rural
electrification, the characteristics and the needs of communities need to be
surveyed to assess whether a certain community can have grid electricity in
the near future. If extending the grid is not economically feasible it needs
to be determined which off-grid options - stand alone systems or mini-grids -
are the most suitable. ·
The legislators
unanimously agreed on the importance of building capacity within Southern
Africa and stimulating the local production of renewable technologies (such
as solar panels) instead of relying on expensive imports. This would not only
increase access to these systems and accelerate the deployment of renewables,
but would also create jobs in the region. ·
Feasibility studies on the
potential for solar thermal power should be conducted, especially in the
countries with the highest solar irradiation levels such as Namibia, Botswana
and South Africa. Furthermore, possibilities for sharing this and other
renewable sources through regional HVDC links should also be assessed. ·
A number of options were
discussed regarding the financing of renewable energies in the region. As has
been demonstrated in some African countries, Feed-in tariffs can help
encourage the uptake of on-grid renewable energies. Given that the
European-style FIT scheme may not always be suitable for off-grid rural
electrification, the “Renewable Energy Premium Tariff” - that combines the
key aspects of a FIT with government or international funding – was discussed
as a promising way to promote mini-grids in remote areas. ·
Introducing a charge on
grid-connected users, encouraging financial institutions to offer soft-loans
for RE projects and offering tax breaks and lower import tariffs for RE
technologies and necessary materials were other financing options discussed
by MPs and experts. |
Adopted |
|
18 – 21 July 2010 |
Mozambique |
To gain further
understanding of the international clean energy sources scene and utilization
thereof. |
Need to collect information from former
Committee Secretaries |
Adopted |
|
04-08 Sep 2010 |
Botswana |
To honour an invitation by the University of
Botswana to the IASTED Conference on renewable energy and gasses |
Need to collect information from former
Committee Secretaries |
Adopted |
|
03-10 November 2010 |
France |
To learn about the French Energy Mix and in
Particular their Nuclear Energy Programmes |
· Clean
electricity from renewables, that is, solar, wind, biomass and geothermal
power, deserves strong support. Government should consider investing heavily
in these forms of energy in the long run in order to embrace viable energy
mix. ·
Today, governments around the world are
embracing nuclear power as fundamental to their strategies of national energy
security and global environmental responsibility. |
Adopted |
|
27 November 2012 |
Century city – Aurecon Engineers (building) City of Cape Town initiatives Epping – St Gobain |
Visiting energy efficiency initiatives undertaken by Aurecon, City of Cape Town
and St Gobain |
· South
African businesses are undertaking energy efficiency initiatives which are
beneficial to their operations. |
Report compiled and to be adopted. |
|
27 November 2012 |
PetroSA Synthetic Fuel Centre - UWC |
To investigate and learn what the
PetroSA Synthetic Fuel Centre does, which focuses on improving the efficiency
of the COD process and the possibility of using alternative feed stocks such
as alcohols and naphthas. |
· The
establishment of a fuels innovation centre at pilot-plant scale represents a
new venture as far as technology development partnerships between industry
and academia in South Africa are concerned. The Committee wish to
congratulate the PetroSA for its vision in funding this important enterprise,
as well as the University of the Western Cape in housing on its campus a
pilot plant facility that is dedicated to technological innovation in the
national interest. |
Report compiled and to be adopted. |
|
01 August 2013 |
·
Paarden Eiland – BPSA ·
Easigas – Bellville-South ·
SA Breweries - Newlands |
·
Portfolio Committee on Energy visited
industrial and commercial sites as well as household supply facilities that
use LPG |
·
Address
complaints that have been received about the current regulations and rules
relating to Maximum Refinery Gate Price [MRGP] (LPG pricing must be at a
level that encourages importation). Maximum Retail Price for residential
customers must be in line with MRGP/import price; ·
Enable the
industry to build import facilities; and ·
Promulgate
regulated prices in line with current supply/demand situation in the country. |
Report compiled and to be adopted. |
|
10 August 2013 |
The Johannesburg Metro Municipality Landfill Gas to
Energy Project; The MTN 2MW Tri-generation Plant; and The ABSA Towers West Energy Centre Project. |
As part of the PAPSAEI Joint Workshop, the Members of the PAP
Committee on Transport, Industry, Energy, Communication, Science and
Technology as well as the Members of the South African Portfolio Committee on
Energy visited three Energy projects in the Gauteng area, focusing on waste
to energy and co-generation and tri-generation undertaken by SA entities. |
The site visits have set a
solid base for an enhanced role and contribution of PAP on continental energy
programmes and the proposed PAP-SA Parliament Energy Initiative [PAPSAPEI] in
advancing the African Agenda for a better life for all in Africa. |
Report compiled and to be adopted. |
The
following challenges emerged during the study tours:
·
Technical/operational challenges
1.
Logistics at times posed a challenge. Vehicles were not available to
transport members when required or the drivers were not briefed as to what was
required of them
2.
Some area the PCE conducted oversight over required special (4x4)
vehicles to transport members in due to the terrain
3.
In some locations, presentation equipment was required which was not
available.
4.
In some cases, experts joined the PCE on oversight trips and hence
transport arrangements need to incorporate this
5.
Facilities provided need to be conducive to learning
·
Content-related challenges
1.
In some cases, translation services may have been needed.
2.
In some cases not enough information was available on the sites being
visited
3.
In the case of experts accompanying the PCE, in some cases, the experts
are not always easy to find
4.
More time and resources needs to be allocated to allow Committees to
conduct more detailed oversight in areas of concern
b) Issues for follow-up
The 5th
Parliament should consider following up on the following concerns that arose:
1.
The PCE needs to conduct oversight on the energy needs of the different
genders as there are differences and further on the energy needs of rural
communities to guide the policies of the DoE in these areas.
2.
The PCE also needs to conduct oversight on the rollout of grid
electrification vs. non-grid electrification. That there is careful planning
that has gone into it with the involvement of all stakeholders
3.
The PCE needs to conduct oversight on possible feasibility studies into
greater solar projects for other African countries and the possibility of power
sharing
4.
Governments around the world are embracing nuclear power and the PCE
needs to conduct oversight that the DoE is tracking developments and lessons
learnt to the benefit of South Africa
5.
South African businesses are taking Energy Efficiency initiatives that
are beneficial to their business. The PCE needs to conduct oversight on this
activity to ensure this is a sustainable trend.
6.
The PCE needs to conduct oversight on the energy research centres in
South Africa, to ensure that they are not only producing beneficial research
outputs but also are activity involved in training students and staff with the
required skills to grow the energy expertise of South Africa
5.6.8. International work
5.6.8.1. General international work
The PCE has engaged with various MP’s through the
Chairperson as well as other MP’s from time to time. Such includes countries
such as China, US, Germany, etc. Various members participated in international
conferences both within and outside the country.
5.6.8.2. Engagement with international bodies
·
The
Chairperson had several engagements with various embassy representatives. These
include: China, Russia, France, Germany, Netherlands, Iraq, Iran, UK, Japan, US
etc.
·
The
PCE also undertook study tours to Mozambique, Botswana and France
·
During
the PAPSAEI workshop in August 2013, the International Energy Association (IEA)
and Nepad briefed the workshop.
5.6.8.2.1. Joint workshop with the Pan African
Parliament
The establishment of PAP-SA Parliament Energy Initiative
is in line with the strategic focus of Parliament of Republic of South Africa.
This initiative will provide a platform for Parliamentarians dealing with
energy issues to share information on the best practices to foster oversight
and legislate laws in their respective countries to attain universal access to
energy and energy security.
The ultimate goal of
this initiative is to achieve the energy security among African countries and
to ensure this, partnerships among legislators is critical in order to have a
common understanding of the African energy agenda. In order to achieve energy
security in Africa, there is a need to partner with each other through regional
energy integration, electricity power pool and sharing technical knowledge on
new energy.
5.6.7.3. International agreements
NB: Agreements were submitted to Parliament but never tabled to the
Portfolio Committee on Energy
a) Challenges emerging
The
following challenges emerged during the processing of international agreements:
·
Technical/operational challenges
One of the challenges relates to the fact that
a number international agreements have been concluded by the South Africa
government through DoE and were deposited into the Office of the Clerk of
Papers. The PCE was however not notified. The PCE has not addressed any
specific agreement that has been signed by the DoE. Furthermore the PCE has not
been informed about any other government to government agreements that have
implications on energy.
·
Content-related challenges
b) Issues for follow-up
The 5th
Parliament should consider following up on the following concerns that arose:
·
More emphasis should placed on tracking these international agreements
and that the Portfolio Committee on Energy be updated on these on a regular
basis, at least once every term (if any during that period). These updates can
either take the form of briefings or forwarding these agreements (hard or soft
copies) to the Portfolio Committee on Energy for information purposes.
5.6.8.
Statutory appointments
The following appointment processes were referred to the committee and
the resultant statutory appointments were made:
|
Date |
Type of appointment |
Period of appointment |
Status of Report |
|
N/A |
N/A |
N/A |
N/A |
a) Challenges emerging
The
following challenges emerged during the statutory appointments:
·
Technical/operational challenges
During the 4th Parliament the
Portfolio Committee on Energy found that it has minimum oversight over the
appointment of Board members of the entities. The result is that the Portfolio
Committee on Energy were unable to test whether the processes followed was done
correctly or not. The Portfolio Committee on Energy is also of the view that
its participation in these appointments can either be active or re-active.
·
Content-related challenges
b) Issues for follow-up
The 5th
Parliament should consider following up on the following concerns that arose:
·
That the Portfolio Committee on Energy play a more vigorous role with
regard to appointments of Board members and senior managers in DoE and SOEs as
guided by current statutes and procedures.
·
Regular engagements with Boards at least once every 6 months.
5.6.9. Interventions
The following interventions were referred to and processed by the
committee:
|
Title |
Date referred |
Current status |
|
N/A |
N/A |
N/A |
c) Challenges emerging
The
following challenges were experienced during the processing of interventions:
·
Technical/operational challenges
·
Content-related challenges
d) Issues for follow-up
The 5th
Parliament should consider following up on the following concerns that arose:
·
5.6.10.Petitions
The following petitions were referred to and considered by the
committee:
|
Title |
Date referred |
Current status |
|
N/A |
N/A |
N/A |
NB: The Chairperson,
Hon SJ Njikelana did receive a petition from the Office of the Speaker relating
to concerns/challenges raised by the community of Matatiele Local Municipality
(KZN) focusing on inter alia, energy issues. The petition was however not formally
referred to the committee.
e) Challenges emerging
The
following challenges were experienced during the processing of petitions:
·
Technical/operational challenges
·
Content-related challenges
f) Issues for follow-up
The 5th
Parliament should consider following up on the following concerns that arose:
·
5.6.11. Obligations conferred on committee by legislation:
5.6.11.1. Budget Review Process
The PCE has used the BRP as the new form of oversight
on the DoE as directed by the NA since 2010. Members underwent training on the
process at various stages. Reports have been generated and submitted timeously
to the House. The PCE did its best to work according to the 6 stages of the
Budget Cycle and also engaged with the Office of the Auditor General,
Department of Performance Monitoring and Evaluation, Finance and Fiscal
Commission, as well as Audit and Risk Committees of the Doe and its entities.
According to Section
5 of the Money Bills Amendment Procedure and Related Matters Act, the National
Assembly, through its committees, must annually assess the performance of each
national department. The Committee must submit an annual Budgetary Review and Recommendations
Report (BRRR) for each department that falls under its oversight
responsibilities for tabling in the National Assembly. These
should be considered by the Committee on Appropriations when it is considering
and reporting on the Medium Term Budget Policy Statement (MTBPS) to the House.
5.6.11.2. Various recommendations from the BRR
Reports.
Recommendation from the 2009/2010 BRRR
The Portfolio
Committee on Energy recommended the following:
·
That the Department of Energy should closely monitor
its expenses and carefully implement cost containment measures to avoid over
spending on the allocated budget for Programme 1.
·
That Committee on Appropriations should look
at ways to align reporting cycles and engage with Department of Cooperative Governance
and Traditional Affairs to align and synchronise national, provincial and local
spheres of government planning, budgeting and implementation of programmes.
This systemic governance issue is impeding planning and implementation of
programmes and should be seriously looked at and joint committee meeting
between Portfolio Committee on Cooperative Government and Traditional Affairs
and Portfolio Committee on Energy need to be convened to examine this matter.
·
That the Department of Energy should consider
the establishment of a designated Monitoring and Evaluation Unit that will
oversee the State-Owned Enterprises reporting to the department.
·
That the Department of Energy should
strengthen its oversight mechanisms over its State-Owned Enterprises in order
to determine if they are fulfilling their strategic mandates and identify
operational inefficiencies.
Recommendation from the 2010/11 BRRR
The Portfolio
Committee on Energy recommended the following:
·
Minister of Finance in conjunction with the
Minister of Public Service and Administration (DPSA) and the Minister of Energy
should address appropriate resourcing of the Department of Energy in both the
forthcoming Medium Term Budget Policy Statement Processes well as Budget Vote
for Energy for 2012/13. Particular reference is made to human resource,
regional offices and international activities.
·
Continental activities of the Department of
Energy should be expanded and intensified by the Minister of Energy. A
comprehensive plan on this area should be submitted to Parliament by the end of
the first quarter of 2012.
·
The Minister of Energy should address the
challenges in the distribution of electricity as a matter of urgency. These
include a restructuring of the electricity distribution industry, as well as
reviewing the legislative and regulatory environment throughout 2012. Progress
of addressing the challenges should be submitted to Parliament by the end of
June 2012.
·
Progress reporting by the Minister of Energy
on Solar Water Heaters should be improved. The Minister of Energy should
provide Parliament with quarterly progress reports as well as provide a
briefing, early in 2012 on the proposed new plan regarding the roll-out of this
programme.
·
The Minister of Energy should consider
establishing a special directorate that would oversee the performance of the
State-Owned Enterprises. Alternatively an upgrade of any existing office in
this regard should also be considered by the end of the first term of 2012.
·
Central Energy Fund (CEF) should, as part of
its restructuring process, satisfy the Portfolio Committee on Energy on how it
will raise requisite capital for its future initiatives. A report thereon
should be submitted to Parliament by the end of the first term of 2012.
·
That the campaign around changing consumer
behaviour on usage of energy (energy saving lifestyle), as one of the
objectives of the Minister of Energy, should be intensified and strengthened as
a matter of urgency.
·
Local manufacturing and beneficiation of
products (focusing on, inter alia, solar photovoltaic and renewable energy
technology) in the green economy should be prioritized by the Minister of
Energy. Due consideration should include the consideration of urban waste as a
source of energy.
·
The Renewable Energy Technology Policy and
Programme should be developed in line with the conventional grid infrastructure
by the Minister of Energy and progress on such be shared with Parliament by end
of June 2012.
·
The Minister of Energy should ensure that
electrical appliances should be labelled to indicate their energy
in/efficiencies. A report thereon should be submitted by the end of June 2012
to Parliament.
·
Fiscal incentives to address Renewable Energy
Technologies (RET’s) should be introduced by the Minister of Finance.
·
The Department of Science and Technology
should introduce standardisation of solar
PV-units to ascertain quality materials used to manufacture the units as early
as is practically possible.
·
The Minister of Energy should develop
regulations for handling, disposal and recycling of power batteries by the end
of the third quarter of 2012.
·
Establishment of an African Technology Test
Centre, in partnership with NEPAD, should be explored by the Minister of Energy
in order to standardize materials used to manufacture photovoltaics and
associated products. Progress thereon should be shared with Parliament by end
of 2012.
·
The Minister of Energy should emphasize education
focused on nuclear technology used for nuclear energy, as part of its public
education programme on energy issues. This is an effort that should be executed
in collaboration with other spheres of government. The Minister of Energy
should share the programme with Parliament by end of first quarter of 2012.
·
The Minister of Trade and Industry should
ensure that Intellectual Property Rights on Renewable Energy Technologies be
developed in a manner that it does not undermine knowledge transfer and
capacity building.
·
Optimization of Muela and Cahora Bassa
hydropower facilities should be favourably considered in the context of a South
African Development Community Regional Energy Power Pooling Programme by the
Minister of Energy. The outcome of such consideration should be integrated into
the review of Integrated Resource Plan2010 during 2012.
·
The Minister of Energy, in conjunction with
the Minister of Science and Technology, should review South Africa’s nuclear
disaster preparedness – a comprehensive, inter-sectoral and collaborative
approach which should include municipalities and provincial governments should
be embarked on by 2012.
·
The Minister of Energy should ensure
functions and competencies on nuclear and nuclear-related programmes and
activities be rationalized and harmonized amongst various Ministers and their
respective government departments and entities, e.g. Health, Science &
Technology, Mineral Resources, Water and Environmental Affairs. A report
thereon should be submitted by October 2012 to Parliament.
·
Minister of Energy should address the need
for a comprehensive radioactive waste management system through public private
partnerships and include universities and similar institutions. A report
thereon to be submitted by the end of June 2012 to Parliament.
·
Minister of Energy should, through the National
Nuclear Regulator, explore creative ways and means of strengthening Africa’s
regulatory capacity through the Forum of Nuclear Regulatory Bodies in Africa
(FNRBA). A plan thereof should be shared
with Parliament by September 2012.
·
Development Bank of Southern
Africa (DBSA) should, in conjunction with other partners in the Darling Wind
Energy Project, submit a report regarding challenges on the project to
Parliament by the end of the fourth term 2011.
·
Minister of Finance
should submit a report to the Portfolio Committee on Energy about Section 54
challenges regarding State Owned Enterprizes (SOEs) roles and status in the
Renewable Energy Feed-In Tariff (REFIT) or similar initiatives. Such report
should indicate whether there are any alternatives or likely solutions on such
challenges. Such report should be done within the first term of 2012.
·
Central Energy Fund
(CEF) should compile a proposal/plan and brief the Portfolio Committee on
Energy on its strategy regarding its decisions to embark on projects and how it
will conduct feasibility studies for such projects. Such must include future
strategy on pioneer projects.
·
Minister of Energy in partnership with the
Minister of Higher Education and Training should arrange an Indaba on Skills
Development in the Energy Sector with the aim of producing a strategy and
programme on skills development in the energy sector by the third term of 2012.
Such should be done in partnership with the business sector.
·
A Budget Review Facilitation Unit or
dedicated personnel, located in the Office of the Speaker to assist all
parliamentary committees in the budget review processes as well as monitoring
and evaluating the budget review processes, be established as a unit and
personnel be appointed as a matter of urgency
·
Minister of Performance Monitoring and
Evaluation should ensure presentation of its plan regarding the Department of
Energy for 2012-2013 financial year (or MTEF whichever is applicable) and
regular briefings on its assessment of the Department of Energy on a quarterly
basis to the Portfolio Committee on Energy as from the Phase 1 of the
forthcoming Budget Review Cycle (i.e. November 2011)
·
Minister of Finance should consider
allocating additional resources for the forthcoming Budget Vote for the
Department of Energy for the Clean Energy Programme in order to allow for
implementation of renewable energy projects.
·
The Department of Energy should report to the
Parliament on the recruitment of appropriate personnel for the Clean Energy
Programme. The latter report should be submitted to the Portfolio Committee on
Energy every six months for the three coming years.
·
The Minister of Energy should examine the
adequacy of the Strategic Fuel Fund’s (SFF)’s funding received from the fiscus.
Such effort should include a comprehensive review of fuel stocks reserves which
are currently 21 days. A report should be submitted to the Parliament by end of
the first term of 2012.
·
Minister of Energy should ensure that further
engagements be undertaken with the Mozambican authorities to explore and scale
up hydro electricity opportunities to supply South Africa with additional
renewable energy.
·
Establishment of the UN-sponsored observatory
should be explored jointly by the Minister for the National Planning Commission
(NPC), Minister of Finance and Minister for Performance Monitoring and
Evaluation (DPME) in partnership with the UN Habitat.
·
Minister of Energy should embark on a
comprehensive restructuring programme for both Central Energy Fund and PetroSA,
specifically with the aim of positioning them as strategic national entities in
the energy sector. .A report thereof should be submitted by conclusion of the
Budget Review Process of 2011/2012 i.e. October 2012.
·
The Minister of Energy should submit a brief
plan on how the Department of Energy intends to improve its strategic coherence
in programmes where it is the lead department, to the Committee by the end of
the second term of 2012.
Recommendation from the 2011/12 BRRR
Having assessed the performance of the Department of
Energy, the Portfolio Committee on Energy recommended that the Minister of
Energy should ensure the following:
·
The Department of Energy expedites the
conclusion of outstanding policy strategies and programmes in order to position
itself in the forefront of energy policy and planning. These strategies and
programmes should include the following:
o
Strategic Fuel Policy,
o
Energy Efficiency Strategy,
o
Approach to Distributions Asset Management
(ADAM),
o
Restructuring of the electricity industry,
o
Electricity Pricing Policy,
o
Bio-Fuels Policy,
o
Replacement of Regional Electricity
Distributors (REDs),
o
Free Basic Alternative Energy (FBEA),
o
Cost Recovery Mechanism for Cleaner Fuels,
o
Review of the Integrated Resource Plan (IRP),
o
Review of the Renewable Energy White Paper,
o
Integrated Energy Plan, and
o
Household Energy strategy.
·
The Department of Energy mobilises at least
30 percent of the needed funding for the infrastructure backlog in conjunction
with the National Treasury, by the end of the 2012/13 financial year.
·
The Department of Energy ensures that the
restructuring process of the Central Energy Fund is concluded within the
2012/13 financial year.
·
The Department of Energy submits an update on
how it has addressed recommendations of the Budgetary Review and
Recommendations report of both 2010 and 2011 by the end of the 2012 calendar
year.
·
The Department of Energy submits a report to
the Committee relating to the Internal Audit Control strategies and plans on
how to achieve clean audits for both the Department of Energy and its entities.
·
The Department of Energy submits a strategy
and plan on its role and contribution in responding to climate change and based
COP 17 resolutions. This strategy/plan should be submitted within three months
after the adoption of this Report by the House.
·
The Department of Energy mobilises for skills
development in the energy sector by ensuring a definite review and rollout of
non-grid electrification policy and programmes within the 2012/13 financial
year.
·
The Department of Energy extends the
Household Energy Strategy to include efficiency and access to household
appliances.
·
The Department of Energy and its entities
develops a strategy on synergy between the itself and its entities within
2012/13 financial year. Such a strategy should include monitoring and evaluation
of funds transferred to entities including municipalities.
·
The Department of Energy formulates policy
and develops a strategy on energy data management especially collection
including measurement of use of Renewable Energy reporting in order to track
progress. This should be done within the 2012/13 financial year.
·
The Department of Energy addresses
outstanding issues with the Independent Power Producers (IPPs) that have
received Renewable Energy Independent Power Producer Programme (REIPPP) contracts
by the end of the calendar year.
·
The Department of Energy develops skills
development programmes in the energy sector especially the liquid fuels sector
and the electricity sector within the 2012/13 financial year.
·
The Department of Energy develops a plan on
smart-grid policy and strategy is developed within the 2012/13 financial year.
·
The Department of Energy ensures corporate
services especially skills development, legal services and monitoring and
evaluation have adopted plans by the end of the 2012 calendar year.
·
The Department of Energy develops a plan
relating to Public Participation Programme through partnerships, especially
with municipalities to be adopted within this financial year.
·
The Department of Energy ensures that an
independent verification mechanism is in place to determine the quality of
liquid fuels within this financial year.
·
The Department of Energy ensures the
readiness of South African Nuclear Energy Corporation and the National Nuclear
Regulator for the New Nuclear Build Programme is visibly geared up within this
financial year.
·
The Department of Energy ensures the full
utilization of the National Multi-Purpose Pipeline (NMPP) for various liquid
fuel products by end of current financial year.
·
The South African Nuclear Corporation works
out a turnaround strategy to avert further retrenchments.
·
The Department of Energy formulates an exit
strategy for the African Exploration and Financing Corporation by the end of
the year, including compensation for its establishment by the Central Energy
Fund within the 2012/13 financial year.
·
The Department of Energy facilitates
financing mechanisms for Clean Development Mechanism by the end of the
financial year.
·
The Department of Energy submits a report on
the Ogies Mines environment challenges within the 2012/13 financial year.
·
The Department of Energy builds internal
capacity to generate policies and legislation as a priority by end of the
2012/13 financial year
·
The Department of Energy formulates a
strategy and develops a plan on how to maintain targets on universal access on
electricity whilst shifting deadline from 2014 to 2025. These strategy and plan
to be finalized before the end of the 2012/13 financial year.
·
The Department of Energy develops a funding
and implementation plan in order to reduce the electricity distribution
infrastructure maintenance backlog of R27.4 billion to R15 billion by 2014.
This plan to include the following:
o
Funding and implementation plan in place by
March 2011,
o
Report detailing a map of distribution asset
status for 50% of all Municipalities by 2012/13
o
Initiate interventions, monitor
rehabilitation projects and reduce backlog by R8bn in 2012/13
·
The Department of Energy develops a plan that
will ensure that household access to electricity would be 92 per cent by 2014.
This plan should be completed before end of the 2012/13 financial year.
·
The Department of Energy formulates a
strategy and develops a plan to regain momentum on solar water heating
installation programme schedule. This strategy and plan should be completed
before end of the 2012/13 financial year
·
The Department of Energy develops a plan on
how reporting on demand-side savings will be improved. This plan should be
finalized before end of the 2012/13 financial year
·
The Department of Energy formulates a strategy
and develops a plan on how better mapping and targeting of indigent households
needed for Free Basic Electricity, Compact
Fluorescent Light Bulbs and solar
geysers, for Inclined Block Tariffs.
·
The Department of Energy presents an
intervention strategy and plan which is
required on Upington Solar Park Project and to clear obstacles to enable the
rapid realisation of the Renewable Energy Independent Power Producer Programme
(REIPPP) construction by end of this calendar year
·
The Department of Energy formulates an
intervention strategy and plan how to expedite the SARi programme, by end of
the current financial year
·
The Department of Energy presents an
intervention strategy and develops a plan on how 12 per cent energy
efficiency improvement target by 2015
will be achieved
·
The Department of Energy submits, during the
2012/13 financial year, a report on the New Nuclear Build Programme. This
report should articulate the following:
o
Funding model of, the New Nuclear Build
Programme,
o
Eskom’s role, and
o
The Department’s role.
·
The Department of Energy ensures that
programme and requisite resource mobilization plans are in place before end of
the 2012 calendar year.
Recommendation from the 2012/13 BRRR
The Portfolio Committee on Energy recommended that the
Minister of Energy should address the following:
·
The Grand Inga Hydro Power Project be handled
as one of the priority projects of the Department and an update be presented to
the Portfolio Committee on Energy by the 3rd term of 2014-15.
·
Energy efficiency be addressed by empowering
SANEDI in engaging in energy efficiency programmes. The strategy and plan
thereof to be presented to the Portfolio Committee on Energy by the 3rd
term of 2014-15.
·
The rate of delivery of Integrated Energy
Centres be increased and the Department builds at least three in the current financial
year, with special focus on rural areas.
·
Skills development in the energy sector, in
partnership with the relevant government entities and higher education
institutions be intensified and report back to the Portfolio Committee on
Energy by the end of the 3rd term of 2014-15.
·
Not only co-ordination of research, within
the entities it oversees, should be enhanced but assistance for the entities be
increased to ensure full value chain to commercialization of research and
development projects is maximised. Such enhanced support should be linked
improved allocation of funds. The strategy and plan thereof to be presented to
the Portfolio Committee on Energy by end of the 4th term of 2014-15.
·
Robust oversight over Energy Efficient Demand
Side Management Programme Municipalities and Eskom is intensified. The Minister
to update the Portfolio Committee on Energy by the 3rd term of
2014-15.
·
Transformation of the gas industry is firmly
in place by concluding the refinement of policy on gas and substantial investments
are mobilised as well as encouraging new entrants into the gas industry. The
Minister to present the update on strategic interventions by the 3rd
term of 2014-15.
·
Ensure replication of the Kuyasa CDM project
throughout SA on a mass scale. The Minister is to update the Portfolio
Committee on Energy by the 4th term of 2014-15.
·
In conjunction with other sectors of Government to
ensure all future designs, retrofitting and construction of government property
are energy and resource efficient and such be extended to all built environment
as a matter of urgency. The Minister of Energy, in conjunction with the
Minister of Public Works to, prepare a plan to be presented to the Portfolio
Committee on Energy by the 2nd term of 2014-15.
·
In terms of the Renewable Energy
Independent Power Producers Procurement Programme, the Minister of Energy to:
o
Urgently address challenges of the complex and
expensive bidding process, job creation, skills transfer in partnership with
other departments;
o
Reverse the lack of initiatives to take advantage of
the emerging opportunities and ensure the
establishment of a local manufacturing renewable energy industry to achieve the
60 percent target on local content;
o
To closely monitor skills transfer to emerging
businesses;
o
To ensure the 2.1 percent of project costs that are
earmarked for socio-economic development are strictly adhered to – such must
include clear guidelines on how this money should be spent;
o
Develop mechanisms to ensure South African bidders
have a higher number of local participants during subsequent phases beyond
Windows 1,2 and 3 of the REIPPPP;
o
To mobilize provincial Financial Development
Institutions to enhance their contribution on the renewable energy programmes
by the 4th term of 2014-15.
·
The Minister should include updates on the above
mentioned (a-f), to the Portfolio Committee on Energy, when updating the
committee on the Integrated Resource Plan.
·
In terms of “exploring solutions to
challenges on financing and certification of locally produced renewable
products”, the Minister of Energy to:
o
Engage with the Banking Association of SA (BASA), the
Industrial Development Corporation (IDC) and other financing entities as well
as the SABS to explore solutions to problems faced by the renewable energy
sector.
o
Engage with the National Treasury and the Department
of Cooperative Governance and Traditional Affairs (COGTA) to explore ways of
resolving the issue of local government authorities being prevented from
purchasing energy from IPP’s.
·
Formulate a compensation strategy for the
establishment of the African Mining Exploration and Financing Corporation by
the Central Energy Fund through conversion of the loans into equity.
·
In partnership with the Minister of transport
develop a green transport strategy and programme as part of the Green Energy
Strategy by the 3rd term of 2014-15.
·
Institutionalise research into fossil fuels
and present the plan to the Committee by 4th term of 2014-15
·
Explore mechanisms in addressing enhanced
funding to SANEDI
·
Explore mechanisms to enhance CEF’s
manufacturing capacity in the energy sector
·
Update the Committee on the following
investigations (once they are finalised);
o
Allegations that State employees are involved
in the procurement processes
o
Investigations relating to employees
allegedly having interest and/or performing remunerative work without approval.
o
Investigation relating to irregular
expenditure in supply chain management and one relating to employee costs.
·
Remove the reference to REDS in the ADAM
policy and programme as well as replace it by an appropriate policy directive
·
Intensify efforts on non-grid
electrification, especially in rural areas and report by 3rd term of
2014-15.
·
The Minister should, once again, ensure that
staffing is prioritised - particular reference is made on legislative capacity
as well as personnel for regional offices, international relations and
oversight unit on entities.
·
Appointment of permanent Chief Financial
Officers at entities must be urgently addressed within six months from
submission of this report.
·
Ensure that when determining the rate that
municipalities charge their customers for electricity, NERSA also meticulously
assesses the components of the rate and regularly audit the actual expenditure
of municipalities.
·
With regard to establishment of “end user
forums” ensure that NERSA, in conjunction with South African Local Government
Association and the Department of Energy to continue establish appropriate
mechanisms to roll out this programme once the relevant legislation is in
place.
·
Ensure that NECSA intensify its
transformation and present an update to the Portfolio Committee on Energy by
the 3rd term 20140-15
·
With regard to Pelchem, ensure that NECSA
must make every endeavour to ensure it is a financially viable entity and
strong focus on investing in the fluorspar industry by the 3rd term
20140-15.
·
Ensure that the NNR intensify its public
awareness campaigns as well as efforts to demystify nuclear energy.
·
Ensure NNR makes pay more attention on
“ownerless legacy sites” especially the mine dumps with radioactive waste with
the assistance of the Department of Energy and other relevant sectors of
government. The Minister should update the Committee by the 3rd term
of 2014-15.
·
Enhance the role of SANEDI on the “Working
for Energy Programme”. Update the Committee on the above three points by the 4th
term of 2014-15.
·
Ensure that research and development projects
that are developed in SANEDI are commercialised within the shortest possible
time frames whenever possible. Update the Committee on the
above three points by the 4th term of 2014-15.
·
Ensure that funding for research and development, not
only in renewable energy technology but also on the development of new products
in the energy sector be enhanced including working with SANEDI, universities
and the renewable energy industry to minimize the critical research gap that
requires funding. Update the Committee on the above three points by the 4th
term of 2014-15.
·
Ensure there is proper management of
procurement at some of the entities of CEF. The Minister is to regularly update
the Committee on this matter.
5.6.12. Role and contribution of the PCE on areas of
non-achievement by the DoE
The PCE has consistently identified
areas, tasks and programmes that the DoE was under achieving on. Such was
brought to the attention of the Department during meetings or through the Budget
Review Process. Some issues of non achievement have not been picked up as a
tracking and monitoring model has not been developed to allow this.
5.6.13. Summary of outstanding issues
Below is a list of ALL
issues that were resolved in the regular meetings of the PCE:
5.6.13.1. Outstanding issues from the minutes of the
PCE
|
Date of meeting |
Agenda |
Resolutions |
|
11 February
2014 |
|
o The
Committee requested that the DoE should brief the PCE on campaigns and
events. o The
Department of Energy should forward their MPAT report to the committee within
two weeks of this meeting. o The
committee requested that the DoE should focus on its consultant reduction
plan and present it to the committee (the Committee will identify a date). o The
DoE should negotiate with National Treasury for funds for training. o The
Committee further requested that the DoE brief the committee on the impact of
the Regulatory Accounting System (RAS) as some concerns were raised. |
|
Tuesday 15 October
2013 |
·
Briefing by the NERSA on their
Annual Report of 2012/13 ·
|
·
The committee will
schedule a follow-up meeting with NERSA to address the BHP Billiton contract. ·
NERSA should forward more
detailed information on small scale embedded generation to the Committee ·
NERSA should provide the
Committee with information on the research it conducted on alternative energy
sources. |
|
Wednesday
09 October 2013 |
·
Briefing by the Department of
Energy on their Annual Reports of 2012/13 |
·
ESKOM should forward the list of all
stakeholders who form part of the committee on nuclear. ·
The DoE should forward the
new Household Electrification Strategy to the Committee. |
|
Tuesday 20 August2013 |
Briefing
by the Department of Energy on
|
|
|
Tuesday 13 August 2013 |
|
|
|
Tuesday 06 August 2013 |
Briefing
by the Department of Energy on:
|
|
|
Wednesday 24 July 2013 |
Briefing
on the liquid fuels sector by the Department of Energy, wholesalers and
retailers |
|
|
Tuesday 18 June 2013 |
|
|
|
Tuesday 11 June 2013 |
09:00 – 11: 00 Briefing
by the ESKOM and Nissan SA on the three (3) year research project on the
Nissan Leaf electronic vehicle 11:00 – 12:50 Briefing
by the Industrial Development Corporation (IDC) and the SA Calcium Carbide
(SACC) on the co-generation project in Newcastle. 12:50
– 13:00 Consideration and
adoption of outstanding minutes |
|
|
Wednesday, 27 February 2013 |
|
|
|
Tuesday 26 February 2013 |
|
|
|
Tuesday 19 February 2013 |
|
The Chairperson requested that the
Department articulate precise reasons for the delay, for each and every bill,
and also the impact of these delays, and to forward this report to the
committee. |
|
Friday
01 February 2013 |
Briefing
by the Task Team on the further due diligence on the possible transfer of the
transmission sector to the ISMO |
|
|
Wednesday,
30 January 2013 |
Briefing by the Department
of Energy on:
|
|
|
Tuesday,
23 October 2012 |
-
Consideration and
adoption of the Budgetary Review and Recommendations Report (BRRR) 2012 -
Consideration and adoption of minutes |
|
|
Friday,
17 August 2012 |
|
|
|
Tuesday,
07 August 2012 |
|
With
regard to the scenario building and further due diligence on the ISMO Bill,
the committee resolved as follows: ·
That the Task Team update the committee
within one (1) month of this meeting on the scenario building exercise of the
ISMO Bill. ·
The Task Team updates the committee within
two (2) months of this meeting on the further due diligence on the ISMO Bill. ·
That the Task Team on a two (2) weekly
basis updates the Chairperson on the latest developments regarding the
above-mentioned issues. |
|
Tuesday,
17 April 2012 |
·
Briefing by
Exxaro and Tata on their clean-energy joint venture, namely Cennergi; ·
Briefing by the
Department of Energy on the status of the Solar Water Heater (SWH) programme |
|
|
Tuesday,
06 March 2012 |
|
|
|
Tuesday,
28 February 2012 |
|
|
|
Friday,
17 February 2012 |
·
Briefing by the
Department of Energy on the outcomes of COP 17 ·
Briefing by the
World Wildlife Fund for Nature on the Outcomes of COP 17 |
|
|
Tuesday,
14 February 2012 |
·
Briefing by the
Department of Energy on its international programmes including power
pooling and energy trade in SADC |
|
|
Tuesday,
15 November 2011 |
o Briefing by the Department of Energy on their: o 2nd Quarter Performance Report for
2011/12 o Public Participation Programme o Consideration and adoption of minutes |
o
The Department should forward the list of municipalities
that fail to comply to the committee. o
Members noted that the new Department of
Energy, after the split from the former Department of Minerals and Energy is
struggling with the current funding allocation and it is expected that the
new Department is to operate effectively and efficiently. The Committee
resolved that it must endeavour to find solutions and address the funding
shortcomings of the Department. o
The Committee resolved that the DoE must
brief the committee on the outcome of the African Energy Minister’s
Conference of 2011 during 2012. o
The committee further resolved that in
future the Department should include more details on expenditure projections
and the reports also need to contain the reasons as to why transfers was not
processed. o
The Department must forward the reports on
the Eskom issues and the quality of water to the committee. o
The committee reiterated the importance of
public participation and highlighted that quarterly reports on the progress
of the programme should be made to the Committee. |
|
Friday,
11 November 2011 |
·
Briefing by Ms K Omari (Sustainable Development
Programme Manager: Heinrich Boell Stiftung Foundation) on gender mainstreaming in the energy
sector, with a focus on the Botswana experience |
·
The members resolved that the “Learner
focus week” of the Department of Energy need to be reviewed as it only
focuses on a few individuals.
·
Members further resolved that the MoUs
signed between the DWCPD and the various departments be presented and made
available to the applicable parliamentary committees. ·
Members encouraged the DWCPD to ensure that
all processes and programmes are driven progressively and vigorously and that
all relevant stakeholders are onboard (buy-in), and that proper coordination
takes place. |
|
Tuesday,
01 November 2011 |
|
·
Necsa should forward the 31 innovation
disclosures to the committee within 2 weeks. ·
The committee resolved that Necsa should
forward their marketing campaign on nuclear awareness to the committee within
2 weeks. |
|
Tuesday,
25 October 2011 |
|
·
PetroSA should forward their list of
products to the committee. ·
PetroSA should forward their list of
subsidiaries to the committee. ·
|
|
Tuesday,
18 October 2011 |
Briefing by the National Nuclear Regulator and the
National Energy Regulator of SA on their Annual Report 2010/11 |
o
The Madibeng Local Municipality’s nuclear
disaster preparedness needs to be addressed. The committee needs to identify
a strategy on how it is going to address this issue. o
The committee needs to address the NNR’s
budget allocation, which has been decreasing over the past two years. o
The committee resolved that a follow-up
meeting be scheduled during the 1st Term of 2012 with the NERSA on
the price path of electricity. ·
|
|
Friday,
14 October 2011 |
|
·
The committee
resolved that a workshop in terms of pricing be scheduled, to determine what
the correct methodology would be.
·
|
|
Wednesday,
13 October 2011 |
|
·
The committee resolved to continue with the
report on the committee oversight visit recommendations, but that the
Committee Secretary needs to obtain the necessary reports in order for the
committee to consider those recommendations to form part of the 2011 BRRR. ·
A follow-up meeting need to be rescheduled
for the committee to consider the other oversight visit recommendations. |
|
Wednesday,
12 October 2011 |
Briefing
by the Department of Performance,Monitoring and Evaluation on the performance
of the Department of Energy as reported in their annual report 2010/11
focussing on service delivery;
|
·
The Department of Performance Monitoring
& Evaluation should forward the performance & progress reports of the
Department of Energy to the committee on a quarterly basis. |
|
Wednesday,
21 September 2011 |
Briefing by the Financial and Fiscal Commission on
their recommendations relating to energy |
|
|
Tuesday,
13 September 2011 |
Briefing by the Department of Energy on the
following:
|
·
The committee resolved that quarterly
performance report briefings by the Department will be scheduled on a
quarterly basis by the Portfolio Committee on Energy. ·
There is a need for the committee to
schedule a workshop on the Budgetary Review and Recommendations Report
processes. |
|
Tuesday,
13 October 2009 |
Briefing
by the Airports Company of South Africa (ACSA) and the Department of Energy
on the Jet Fuel Shortage and the state of readiness for the 2010 FIFA Soccer
World Cup |
|
|
Wednesday,
10 June 2009 |
Briefing
by the Department of Minerals and Energy on the Strategic Plan and Budget Vote 28 of 2009/10 |
The
meeting resolved that the Department would brief the Committee in a workshop
on a number of these issues and others. |
Additional
items outstanding
The following key issues are outstanding from the committee’s activities during
the 4th Parliament:
|
Issue(s) |
Responsibility |
|
Briefing on progress on Medupi, Kusile and Ingula power
stations by ESKOM, organised labour and business community involved in the 3
power stations |
DoE, ESKOM and NUMSA |
|
Shale gas |
Mineral Resources, Energy, Water and
Environmental Affairs, Trade & Industry, Science & Technology |
|
Legislation to be tabled to Parliament |
PCE/DoE |
|
Update by the DoE,
NNR on the IAEA report on SA readiness regarding NNBP |
DoE and NNR |
|
audit report on oil refineries as well as the revised 20-year security
plan liquid fuels; |
DoE |
|
Public hearings: Liquid Fuels downstream
sector |
DoE |
|
Briefing on power programmes in the SADC and Africa |
DoE, NEPAD and SADC (Executive and PF) |
|
Biofuels Strategy |
DoE/DAFF |
|
Colloquim: Green Economy accord in the
context of industrialization |
DoE/DTI/EDD/IDC |
|
Progress
reviewal of Liquid Fuels Charter in keeping with the BBBEE Codes of Good
Practice |
DoE |
|
Training ·
Municipal revenues, vis-a-vis
electricity, FBE and FBAE ·
Rural energy – concept, practice,
lessons learnt and case studies ·
Exploring household energy options ·
Energy poverty and electrification |
PCE |
|
Training ·
Carbon tax – overview and
implications ·
Policy alignment and the National
Development Plan on low carbon economy and energy ·
Integrated Energy Plan ·
MYPD – concept and practice |
PCE |
|
There
various pieces of legislation and policy documents that are still outstanding
and these need to be presented to the PCE for deliberation and comment. These
include, among others, the Electricity Regulation Act and National Energy
Regulator Act, the Biofuels Strategy and the Household Energy Strategy. The
DoE has a new draft IEP and IRP and these needs to be finalized. |
DoE |
|
The
Independent System Market Operator (ISMO) Bill was deliberated in the
Committee and submitted to the House for Adoption. This was not adopted in
the 4th Parliament and 5th Parliament needs to follow
up on this. |
PCE |
|
From
the Energy Stakeholder Meeting on the upstream sector, it emerged that policy
challenges that need to be addressed as clear policy directives are needed
and the DoE is to formulate a plan on identifying the challenges and a
mechanism to address them. |
DoE |
|
The
REIPPP Programme is a success story for the South Africa Energy Sector.
However it is still in its infancy stages as construction on most projects
have just begun. The 5th Parliament needs to monitor the successes
and challenges of this programme and ensure the DoE builds on this. This
includes the area of localization and skills transfer. |
PCE |
|
The transformation of the petroleum
industry and compliance to the Liquid Fuels Charter is another area that
requires some attention as progress has been less than satisfactory. |
DoE |
|
The
transformation of the gas industry is another area needing attention and
substantial investments are needed to encourage new entrants into the gas
industry. |
DoE |
|
With
reference to Indigent communities, the aspect of access to clean energy is
critical. Areas needing attention here is access to Free Basic Services
including energy. This includes access to electricity, be it grid or
non-grid. Solar water heating and clean forms of heating e.g. LPG. In this
regard price and accessibility are important. So too is safety aspects in
terms of handling these energy sources. There has been progress here but the
progress made by the DoE in this regard needs to be monitored. |
PCE |
|
The
DoE is to present their Biofuels strategy to the PCE. There are concerns
about food security and empowerment of small farmers and the issue of
management of subsidies to this industry. |
DoE |
|
In
terms of the solar water heater (SWH) programme, to date, over 350 000 units
of the envisaged 1 million units have been rollout. There is still a long way
to go as issues local content, the involvement of all spheres of government,
maintenance of units are some of the challenges arising. The 5th
Parliament also needs to assess with the DoE mechanisms to accelerate rollout
of the units. |
PCE |
|
Energy
research programmes at universities including SANEDI’s “working for energy
programme” should be monitored and co-ordinated, especially in the energy
sector. The maturity of some of these programme through to commercialization
is also important and so too the training aspect. The 5th
Parliament needs to monitor this space to ensure at least some of this
research work results in commercial benefit for South Africa. |
PCE |
|
The
National Electrification programme is one of the biggest programmes of the
DoE. Currently 85% of South African homes have electricity. The 5th
Parliament needs to monitor that universal access to electricity is achieved,
be it via grid or non-grid electrification programmes. The two need to
complement each other and all spheres of government need to work together in
this regard. Issues of distribution (especially the infrastructure) need to
be addressed. This includes funding and the skills deficit and a replacement
for Regional Electricity Distributors needs to be found. |
PCE/DoE |
|
The National Electrification programme is
one of the biggest programmes of the DoE. Currently 85% of South African
homes have electricity. The 5th Parliament needs to monitor that
universal access to electricity is achieved, be it via grid or non-grid
electrification programmes. The |
DoE/PCE |
|
Energy Efficiency initiatives needs to be
monitored including meeting the 12% energy efficiency improvement target by
2015. Further, EE programmes and initiatives are fragmented and plans to
address this needs to be explored. In this regard, the establishment of an
Energy Efficiency champion for South Africa is needed that monitors and
co-ordinates all activities in this area. |
DoE/PCE |
|
The
involvement of Women, Youth and People with Disabilities in the Energy Sector
has to be monitored on a regular basis by the 5th Parliament.
Numerous opportunities are being created in the REIPPP and related programmes
and it is important that this sector of the population is also empowered by
the opportunities being created. |
DoE/PCE |
|
One
area of concern of the 4th Parliament was that of the “ownerless
legacy sites” and one in particular is the Tudor Shaft mine dump
contamination issues. The 5th Parliament needs to monitor this
going forward. |
DoE/PCE/NNR |
|
Numerous
challenges were identified with the Free Basic Energy / Free Basic Alternative
Energy Policy. These include the indigent register, inconsistency in
execution of the policy at municipal level and the annual adjustment of the
amount allocated. The 5th Parliament needs to assess the actions
the DoE is following to manage this. |
DoE/SALGA/COGTA/PCE |
|
The
DoE’s international programme including the Grand Inga project needs to be
monitored. So too the South African Development Community Regional Energy
Power Pooling Programme, the initiatives with the Pan African Parliament and
developments at NEPAD. Regional development is important for the stability
and growth of the region and the DoE’s contribution to these needs to be
monitored. |
PCE |
|
In
terms of energy carriers, the nuclear power programme will be the biggest
infrastructure programme of the state. The PCE needs to monitor all aspects
of this, especially the preparedness of SA to meet the localization
component. Skills development is also critical and progress on plans needs to
be communicated to the 5th Parliament. The National Radioactive Waste Disposal
Institute was just established and the maturity
thereof needs to be monitored. |
DoE/NNR/NECSA/ESKOM |
|
Shale
gas and other oil and gas exploration ventures need to be monitored to ensure
it is well managed. |
PCE |
5.6.13.2.
Outstanding issues from the ESMs
|
Date |
Topic |
Outstanding issues |
|
11 November 2011 |
Prospects for job creation in local
manufacturing in the renewable energy sector |
|
|
19 January 2012 |
Management of strategic fuel stocks –
options for SA |
·
Facilitate access to storage facilities
including leasing of tanks as well as third party access to such facilities
to black owned companies. ·
Also ensure there is appropriate business
empowerment in transportation of petroleum products; ·
Ensure adequate (and expansion of) buffer
stock and tankages to store strategic stock and such should include buffer stock as well; ·
Encourage tertiary institutions to assist
in developing the necessary skills to address the skills shortages in the
petroleum sector; ·
Address concerns that the same processes
and procedures applies to both international oil companies and local BBBEE
companies; ·
Ensure that itself, the State Owned
Companies (SOCs) – PetroSA, Transnet, SFF etc, align their programmes, etc.,
with regards to the petroleum industry; ·
Mobilise more investments that are needed
to address some of the challenges experienced in this sector; ·
Facilitate industry coordination such that
all relevant stakeholders; i.e. oil companies, government etc. work together;
·
Ensure the oil majors take cognizance that
new players are entering the market and that transformation is therefore
essential. |
|
07 June 2012 |
Independent Power
Producers Renewable Energy Procurement Bidding: Window 1 |
·
The Department of Energy to
urgently consider challenges of the complex and expensive bidding process,
BBBEE policies, job creation, skills transfer and work with other departments
to address such challenges; ·
The Department of Energy to try
and reverse the lack of initiatives to take advantage of the opportunities to
increase local content had to be addressed as a matter of urgency; The Department of Energy to ensure focus
must be on the establishment of a local manufacturing renewable energy
industry particularly achieve a 60 percent local content target; ·
The Department of Energy to
closely monitor skills transfer which is also paramount; ·
The Department of Energy to
ensure the 2.1 percent of project costs that are earmarked for socio-economic
development are strictly adhered to – such must include clear guidelines on
how this money should be spent; ·
The Department of Energy should
motivate South African bidders such that there are more local participants
during subsequent phases beyond windows 1 and 2; ·
The Department of Energy to
work more intensively with Department of Economic Development and the
Department of Trade and Industry on the job creation aspect of the programme; The Department of Energy to mobilize provincial
Development Financiers to enhance their contribution on the renewable energy
programme; The Department of Energy to ensure that spending on research and
development, not only in renewable energy technology but also on the
development of new products be enhanced including working with SANEDI,
universities and the renewable energy industry to minimize the critical
research gap that requires funding. |
|
19 September 2012 |
Nuclear energy as
an option for sustainable supply of energy |
·
The Portfolio Committee on Energy needs to
monitor all aspects of this, especially the preparedness of SA to meet the
localization component. ·
Skills development is also critical and
progress on plans needs to be communicated to the 5th Parliament. ·
The National Radioactive Waste Disposal Institute was just
established and the maturity thereof needs to be monitored |
|
20 February 2012 |
Assessment of the Upstream Sector in oil
and gas industry |
·
Oil and
gas exploration ventures need to be monitored to ensure it is well managed |
5.6.13.3. Outstanding issues on
engagements such as Climate Change, MDGs
a. The
PCE addressed climate change in the following ways. The PCE was briefed by the Department
of Environmental Affairs (DEA) on the National Climate Change Response Green
Paper in 2011 and by the DoE on COP 17 in 2011, with a progress report in 2012.
The PCE also received a briefing on a Report on International Climate Change
and Energy Hearings in 2010.
b. In
terms of climate change, the next area that the PCE focused on was that of
renewable energy and in 2010, the PCE was briefed by the DoE on the
International Renewable Energy Agency. Further in 2011 the Industrial
Development Corporation also briefed the PCE on the implementation of New
Growth Path and Industrial Policy Action Plan (IPAP2) with special reference to
the green economy and renewable energy. The PCE also looked at international
experience when they assessed a report on a Workshop on Renewable Energy
Policies for Sustainable African Development in Ghana. From 2012, the focus
shifted to the Renewable Energy Independent Power Producer Procurement (REIPPP)
programme as this was the flagship programme of the DoE that not only addressed
SA’s energy needs but also looked at climate change issues by addressing green
energy. The PCE also held a panel discussion on this topic the same year and
also held a meeting of stakeholders in the
renewable energy sector to explore solutions to the challenges of financing and
certification of locally produced renewable energy products. The PCE
also, in 2012 assessed SANEDI’s involvement in the South Africa Renewable
Energy Initiative, ensuring that there is focused Research and Development to
benefit SA in terms of renewable energy.
Regarding
the Millennium Development Goals, the DoE has responded to almost all the goals.
The eight MDGs are:
·
To
eradicate extreme poverty and hunger
·
To
achieve universal primary education
·
To
promote gender equality and empower women
·
To
reduce child mortality
·
To
improve maternal health
·
To
combat HIV/AIDS, malaria and other diseases
·
To
ensure environmental sustainability
·
To
develop a global partnership for development
c. The
activities of the DoE speak to all these goals in some form or the other. Hence
the PCE ensured compliance to these and monitored the DoE in terms of their
activities; in this regard, the PCE received a briefing from the DoE on the Department of Energy’s contributions
to government outcomes and Millennium Development Goals in August
2011.
d. The
first goal, “to eradicate extreme poverty and hunger”, here the PCE monitored
the Integrated National Electrification Programme that is in place to ensure
universal access to electricity and more specifically the Free Basic Energy and
Free Basic Alternative Energy programmes of the DoE. This is a key programme
that speaks to eradicating poverty and the PCE monitored implementation with
the DoE and SALGA. The INEP programme also speaks to the issues of “universal
primary education” as the PCE also monitored electricity roll out, including
distribution, in communities, including schools. The PCE also visited this
topic during oversight visits. It can be noted that one of the areas that the
PCE conducted oversight over, was the area of non-grid electrification, of
which there are already 66 000 connections.
e. In
terms of “gender equality and
empower women”, the PCE regularly monitored the DoE and the SoE’s with regard
to compliance, but further looked at the REIPPP programme and the liquid fuel
charter. This was visited regularly over the 4th Parliament.
f. Another
area assessed was the role out of the solar water heater programme which speaks
to the health issues in the MDG’s and here the DoE monitored this programme
closely over the years to the current state of almost 400 000 geysers
rolled out.
g. “Environmental
sustainability” issues were addressed by the DoE via the REIPPP programme and
the energy efficiency programmes. As indicated above, this was carefully
scrutinised by the PCE during the 4th Parliament, but one area
needing acknowledgement is that of Carbon Tax. The PCE held a stakeholder
discussion on the Likely Impact of Carbon Tax on Energy Supply in South Africa
(and SADC) in July 2013 with the aim of allowing stakeholders to address this
topic with the PCE and National Treasury.
h. Finally
in terms of “developing a global
partnership for development the PCE monitored the REIPPP programme to ensure
there is local participation and that there is skills and technology transfer.
The PCE also monitored the international programme of the DoE to ensure
sustainable partnerships are built. In this regard, the PCE, in August 2013,
engaged with the Pan African Parliament Committee on Transport, Industry,
Communications, Energy, Science and Technology in a Joint Workshop on “Improvement of
the Energy Industry in Africa for Sustainable Development- The Role of
Parliaments”. Some of the
outcomes included, a need for harmonization of legislation and PAP initiatives
with NEPAD projects, the need for capacity building, strengthening of
institutions and access to data. There was an agreement between the two
Parliaments that there will be future engagements.
6. Miscellaneous
6.1.
Media
·
With
regard to Media Networking Sessions, the media fraternity is informed of the
activities which have been undertaken by the PC on Energy. The Media Networking
Sessions has also provided the PC on Energy the opportunity to build and foster
relations with the media fraternity.
·
When
undertaking oversight visits, representatives from the Parliamentary Media Unit
accompany the delegation to the various sites to be visited. The aim of this
practice is for the Portfolio Committee on Energy to inform the media of its
findings during these visits. This usually takes the form of media statements,
interviews with national, regional and local radio stations, newspapers
(regional and local).
7. Key
challenges emerging
Ø Effective
utilisation of the Budget Reviewal Process and Oversight and
Accountability Model has not been optimised
Ø Monitoring
of budget expenditure of the PCE needs improvement
Ø Engagement
with the National Treasury and the Standing Committee on Appropriations on BRRR
has almost not been done ever since the BRP was introduced
Ø The role
and authority of the PCE in the ratification of international agreements has
been non-existent. Event the submission of the agreements to the PCE has not
been formally done save for submission to the Clerk of Papers.
Ø Engagement
between support staff and Chairpersons has been rather terse and, at times,
less beneficial.
Ø The role
of MP’s on performance management of staff is unclear and yet poor practice of
such has a negative effect on the work of the PCE.
Ø Cooperative
government, as one of the strategic objectives of Parliament, has not been
fully activated albeit working relations with SALGA are quite visible
Ø Communication
protocol between the Office of the Chairperson and the stakeholders and members
of the public has been compromised several times
Ø Technical
and administrative support has not been up to standard viz.:
o
Late submission of minutes and reports
o
Repeated corrections of minutes and reports
o
Limited research work due to staff
limitations
o
Alleged work overload of staff
o
Consistency in working according to job
description
Ø Information
on the PCE activities does not seem to centralised i.e. the PCMS is
underutilised
Ø Training
and mentoring of support staff is rather
limited – such can be observed on the quality of support given
Ø Monitoring
and tracking by the PCE especially follow up in issues identified as well as
those decided on
Ø The
practice of including recommendations for the consideration by the DoE and even
the NA has been recent and intermittent
Ø An overall
assessment is needed to establish if the DoE is correctly funded to deliver on
all the areas that need attention for energy resource development in SA. There
are challenges in aging and required energy infrastructure to ensure economic
growth.
Ø The
development of key and critical skills in the various areas of energy
including, among others, engineering, nuclear and electricity distribution.
This area has to be carefully interrogated and managed and the 4th
Parliament proposed an indaba on skills development be held.
Ø Electricity
distribution proved to be a major challenge and the 5th Parliament
may have to assess with the DoE, the possibility of restructuring the
distribution sector including a review of the relevant legislative and
regulatory environment.
Ø The issue
of meeting departmental targets emerged as an area the DoE is grappling with
and this must be carefully interrogated with the DoE to understand the
challenges and mechanisms that will be employed to address them
Ø The issue
of transformation in the liquid fuels sector is progressing at a slow pace. The
DoE has put in some initiatives to help accelerate this but this must be
carefully interrogated.
Ø The issue
of data collection and management appeared to be a problem at the DoE. The DoE
indicated that this has now largely been addressed with the recruitment of
additional skills to manage this. The 5th Parliament however needs
to exercise strict oversight over this as national policies and legislation is
based on this.
Ø The roll
out of Integrated Energy Centres is critical, and these are being rolled out
albeit at a slow pace. This has proven to be a critical resource especially for
indigent communities and the Portfolio Committee on Energy needs to, with the
DoE, find mechanisms to accelerate this programme.
Ø The DoE
exercises oversight over the SOE’s that account to it. The 4th
Parliament noted gaps in the oversight modus operandi utilized by the DoE and
the 5th Parliament needs to interrogate this topic thoroughly with
the DoE to ensure a robust oversight model.
Ø The 5th
Parliament needs to monitor the area of Public Participation Programmes
especially with regard to energy issues and at a municipal level. End user
forums are critical to identification of problem areas and clear communication
of this back to the DoE will result in these being addressed.
7. Key
areas for future work
·
There various pieces of legislation and
policy documents that are still outstanding and these need to be presented to
the Portfolio Committee on Energy for deliberation and comment. These include,
among others,
·
The
Department of Energy expedites the conclusion of outstanding policy strategies
and programmes in order to position itself in the forefront of energy policy
and planning. These strategies and programmes should include the following:
o
Strategic Fuel Policy,
o
Energy Efficiency Strategy,
o
Approach to Distributions Asset Management
(ADAM),
o
Restructuring of the electricity industry,
o
Electricity Pricing Policy,
o
Bio-Fuels Policy,
o
Replacement of Regional Electricity
Distributors (REDs),
o
Free Basic Alternative Energy (FBAE),
o
Cost Recovery Mechanism for cleaner fuels,
o
Review of the Renewable Energy White Paper,
o
Household Energy strategy.
The DoE
has a new draft Integrated Energy Plan and Integrated Resource Plan and these
needs to be finalized.
·
The Independent System Market Operator (ISMO)
Bill was deliberated in the Committee and submitted to the House for Adoption.
This was not adopted in the 4th Parliament and 5th
Parliament needs to follow up on this.
·
From the Energy Stakeholder Meeting on the
upstream sector, it emerged that policy challenges e.g. with some of the
amendments of the proposed Minerals and Petroleum Resources Development (MPRDA)
bill to the upstream sector, that need to be addressed as clear policy
directives are needed and the DoE is to formulate a plan on identifying the
challenges and a mechanism to address them.
·
The Renewable
Energy Independent Power Procurement Programme is a success story
for the South Africa Energy Sector. However it is still in its infancy stages
as construction on most projects have just begun. The 5th Parliament
needs to monitor the successes and challenges of this programme and ensure the
DoE builds on this. This includes the area of localization and skills transfer,
greater take up of some technologies, among others.
·
The Co-generation independent power
procurement programme by the DoE which may form part of the revised integrated
Resource Plan.
·
The transformation of the petroleum industry
and compliance to the Liquid Fuels Charter is another area that requires some
attention as progress has been less than satisfactory.
·
The transformation of the gas industry is
another area needing attention and substantial investments are needed to
encourage new entrants into the gas industry as a few big (or base) customers
are needed to increase the investment in infrastructure that can be utilized
also by the new entrants.
·
With reference to Indigent communities, the
aspect of access to clean energy is critical. Areas needing attention here is
access to Free Basic Services including Free Basic Electricity and Free Basic
Alternative Energy. This includes access to electricity, be it grid or
non-grid. Solar water heating and clean forms of heating e.g. Liquefied
Petroleum Gas. In this regard price and accessibility are important. So too is
safety aspects in terms of handling these energy sources. The DoE is
experiencing challenges with the rollout of the above listed services. There
has been progress here but the progress made by the DoE in this regard needs to
be monitored.
·
The DoE is to present their Biofuels strategy
to the Portfolio Committee on Energy. There are concerns about food security
and empowerment of small farmers and the issue of management of subsidies to
this industry.
·
In terms of the solar water heater (SWH)
programme, to date, over 350 000 units of the envisaged 1 million units have
been rollout. There is still a long way to go as issues local content, the
involvement of all spheres of government, maintenance of units are some of the
challenges arising. The 5th Parliament also needs to assess with the
DoE mechanisms to accelerate rollout of the units.
·
Energy research programmes at universities
including SANEDI’s “working for energy programme” should be monitored and
co-ordinated, especially in the energy sector. The maturity of some of these
programme through to commercialization is also important and so too the
training aspect. The 5th Parliament needs to monitor this space to
ensure at least some of this research work results in commercial benefit for
South Africa.
·
The National Electrification programme is one
of the biggest programmes of the DoE. Currently 85% of South African homes have
electricity. The 5th Parliament needs to monitor that universal
access to electricity is achieved, be it via grid or non-grid electrification
programmes. The two electrification programmes (grid and non-grid) need to
complement each other and all spheres of government need to work together in
this regard. Issues of distribution (especially the infrastructure) need to be
addressed. This includes funding and the skills deficit and a replacement for
Regional Electricity Distributors needs to be found by the DoE.
·
Energy Efficiency initiatives needs to be
monitored including meeting the 12% energy efficiency improvement target by
2015. Further, EE programmes and initiatives are fragmented and plans to
address this needs to be explored. In this regard, the establishment of an
Energy Efficiency champion for South Africa is needed that monitors and
co-ordinates all activities in this area. The DoE needs to indicate to the 5th
Parliament, its plans in this sector. In this regard, one area needing
attention is that of public awareness and Consumer behaviour in terms of usage
of electricity. Mechanisms to move to energy saving lifestyles needs to be
explored. Another area is that of the green transport strategy and execution
especially at Government level. Also the retrofitting of government buildings
needs also to be monitored.
·
The involvement of Women, Youth and People
with Disabilities in the Energy Sector has to be monitored on a regular basis
by the 5th Parliament. Numerous opportunities are being created in
the Renewable Energy Independent Power Procurement Programme and related
programmes and it is important that this sector of the population is also
empowered by the opportunities being created.
·
One area of concern of the 4th
Parliament was that of the “ownerless legacy sites” and one in particular is
the Tudor Shaft mine dump contamination issues.
·
Numerous challenges were identified with the
Free Basic Energy / Free Basic Alternative Energy Policy. These include the
indigent register, inconsistency in execution of the policy at municipal level
and the annual adjustment of the amount allocated.
·
In terms of energy carriers, the nuclear
power programme will be the biggest infrastructure programme of the state. The
Portfolio Committee on Energy needs to monitor all aspects of this, especially
the manufacturing of components locally. Skills development is far from
adequate also critical and progress on plans needs to be communicated to the 5th
Parliament. The National Radioactive
Waste Disposal Institute was just established and the maturity
thereof needs to be monitored.
·
Shale gas and other oil and gas exploration
ventures need to be monitored to ensure it is well managed.
9. Recommendations
Ø As a way
to improve effective utilisation of the Budget Review Process (BRP) and
Oversight and Accountability Model the following aught to be considered:
ü Emphasis
on the 6 stages of the BRP as well as intensified engagement with OAG, DPME,
FFC, Audit and Risk Committees, Internal Audit Services, Quarterly Performance
Reports
ü Interaction
with the National Treasury and the Standing Committee on Appropriations on BRRR
be ensured and closely monitored
ü Establishment of the Joint Parliamentary
Oversight and Government Assurance Committee
ü Introduction and/or intensification of joint
oversight
1.
With other parliamentary committees in NA
2.
Between NA and NCOP parliamentary committees
3.
With international bodies such as PAP, IPU,
SADC-PF, etc has to be intensively explored
ü Oversight
on international work including international agreements
ü Linkage
with Parliamentary Democracy Offices
ü Tracking,
monitoring and advice
ü Inputs on
constituency issues be made a matter of practice
ü Individual
member oversight
Ø Legislative
Impact Assessment on each statute has to be introduced as a compulsory practice
Ø The
PCE has to as matter of practice monitor data and information management
regarding all its activities
Ø Preparations
of processing of Bills
ü The
sponsor of any Bill must be emphatic on the policy context of the proposed more
than ever before.
ü An
all-embracing workshop, involving the PCE and DoE in the main, must be an
obligation before the said Bill is processed. Focus aught to be on the Bill as
well as the environment or sector within which it will be operating. Such must
include a vivid elaboration for its introduction.
ü Expert
testimony must be encouraged to empower those engaged in processing the Bill.
ü Extended
public hearings may have to be considered for certain Bills viz.:
ü Extra-Parliamentary
public hearings;
ü Public
hearings held through electronic means i.e. video conferencing
ü Elaborate
research, including comparative analysis with other countries, must be a matter
of practice.
ü Testing
of a Bill that is introduced against government policy and the constitution
must reported to the PCE as a matter of practice
ü The
PCE should consider broadened engagement when preparing to process a Bill –
such may include visiting other countries, institutions of research and
training depending on the nature of the need and/or challenge at the time
Ø Enhancement
on capacity-building and empowerment of members of the PCE and support staff:
ü Exchange
programmes with countries where we have formal partnerships should be
facilitated during constituency period;
ü Internship
Programme, especially on the legislative, research, media, communication and
information services, should be considered to bolster such services;
ü Holiday
programme for post-graduate students has to be introduced especially for the
above areas;
ü Partnerships
with other countries as well as other international support must be exploited
too
Ø There
must be a paradigm shift on international work – engagements with counterparts
from other Parliaments aught to include various forms viz.:
ü Joint
programmes including empowerment, research, video conferencing as another form
of communication
Ø Personnel
in the following sectors has to be appropriately increased:
ü Legislative
services
ü Media
and communication services
ü Library
and information services
Ø Task
Assignment Strategy
ü Members
of the PCE aught to be given assignments as groups in order to share the load
of work and enhance its effectiveness
ü Such
practice has to be accompanied with fast-track empowerment
Ø The
Office of the Chairperson be established as a distinct office with a public
status and profile as well as getting the requisite resources for its
functioning
Ø The
status and category of the PCE has to be upgraded to a B category
Motivation:
ü The
need to address challenges in the supply of electricity
ü A
lot of processing of legislation is expected during the 5th
Parliament – such will be due to legislation that was not processed in this 4th
Parliament as well as anticipated due to policy refinement and other identified
gaps
ü There
is a lot of reviewal and refinement that will be done in the regulatory
environment
ü The
upsurge in the oil and gas exploration needs more attention
ü Oil
and gas trade has not been given the attention it deserves despite the growing
challenges in this sector
ü Shale
gas will be another matter that will demand intensive attention during the 5th
Parliament.
Ø PCE
Budget and Financial Report System
The following areas
must be addressed and improved:
ü Budget
planning
ü Engagement
between finance support staff and the Chairpersons
ü Expenditure
monitoring, evaluation and reviewal has to be enhanced
Ø The
PCE has to intensify its engagement with the public, including the public
education on its role and contribution on the energy sector, through the
support of the appropriate unit in Parliament
Ø Preparations
for the compiling reports be resumed at least 6 months before the end of each
term of parliament
ü Such
preparations must be preceded by workshops for both support staff and the PCE
ü Such
preparations must also be preceded by research work and consultation
Ø Cooperative
government, as one of the strategic objectives of Parliament, be given the
attention it deserves including appropriate resourcing
Ø The
practice of including recommendations for the consideration by the DoE and even
the NA has to be a matter of practice as much as is possible
Ø Some issues of non achievement have not been picked
up as a tracking and monitoring model has not been developed to allow this.
Ø In terms of the BRP the PCE
is to assess the inclusion of comments from the Standing Committee on
Appropriations, National Treasury and the Parliamentary Budget office.
Ø Security of electricity
supply, in the short term, is made a priority during the 5th
Parliament and such includes a plan of action to prevent load shedding which
will be presented to the PCE at the early stages of the 5th
Parliament.
Ø Outstanding legislation and
policies be made a priority and tracked, some of the outstanding legislation
include:
1. The Gas Amendment Bill
2. National Nuclear Regulator Amendment Bill
3. Electricity Regulation Second Amendment Bill
4. National Energy Regulator Amendment Bill
5.
Radioactive Management Fund Bill
6. Nuclear Energy Amendment Bill
Ø
Furthermore the 5th Parliament should ensure expeditious
processing of the bills whilst empowering all stakeholders.
Ø
The 5th Parliament ensures that the Minister of Energy:
a) Conducts a due diligence study in order to
determine the feasibility and implications of the transfer of transmission
assets and to submit a final report to the National Assembly
b) Conducts a cost benefit analysis of the
possibility of incorporating the transmission assets into the Independent
System and Market Operator (ISMO)
c) Further conducts a cost benefit analysis
of establishing a Transmission System Operator (TSO), or any other arrangement
suitable to the South African situation.
d) Ensures that the restructuring of the
entire electricity sector be addressed as matter of urgency.
Ø
Particular emphasis is the articulation of the end-state for each of the
sub-industries in the electricity sector. The 5th Parliament must
ensure a comparative analysis including drawing lessons from other countries
through, inter alia, study tours, workshops, etc., be facilitated for the
future PCE.
Ø
The 5th Parliament ensures that the Department of Energy
expedites the conclusion of outstanding policy strategies. These strategies and
programmes include, inter alia, the following:
·
Strategic Stocks Fuel Policy,
·
Energy Efficiency Strategy,
·
Approach to Distributions Asset Management (ADAM),
·
Restructuring of the electricity industry,
·
Electricity Pricing Policy,
·
Bio-Fuels Policy,
·
Replacement of Regional Electricity Distributors (REDs),
·
National Household Energy Safety Policy
·
Mandatory National Energy Efficiency Programme
·
Comprehensive National Infrastructure Maintenance Strategy
·
Comprehensive policy framework on alternative energy
·
Rationalisation of the regulatory environment in the energy sector
·
Free Basic Electricity (FBE)
·
Free Basic Alternative Energy (FBEA),
·
Cost Recovery Mechanism for Cleaner Fuels,
·
Review of the Renewable Energy White Paper,
·
Household Energy Strategy,
·
Gas Utilisation Master Plan
·
Roll-out of Gas Infrastructure
Ø The 5th
Parliament closely tracks and monitors the current reviewal of the IRP as well
as ensuring that subsequent reviewals are done timeously.
Ø The 5th
Parliament, with regard to the DoE, needs to pay careful attention to the areas
of; funding allocation to the DoE from National Treasury to ensure it is
empowered financially to execute its mandate; skills availability for the
various energy projects in South Africa and the timely delivery of outstanding
legislation by the DoE. Further the area of oversight of financial control by
State Owned Companies/Entities and ensuring they meet their objectives needs
careful scrutiny by the 5th Parliament.
Ø In terms of
the entities, the 5th Parliament needs to monitor the restructuring
of CEF and PetroSA and empowering them to meet future energy demands of SA.
Ø Explore
and promote mechanisms to assist Necsa to become financially independent of the
state eventually
Ø Ensure
that NNR has the requisite skills and resources able to manage the nuclear new
build programme.
Ø Assess the
legislative framework regarding Nersa comprehensively and ensure that they are
empowered to execute their duties.
Ø Nersa, in
conjunction with the DoE and Salga, needs to redefine its role in terms of
ensuring greater compliance of municipalities to Nersa’s determinations. The 5th
Parliament needs to monitor this.
Ø SANEDI, needs
to ensure that it has the mechanisms in place to convert Research and Development
projects into commercial ventures and explore its role SANEDI as an Energy
Efficiency Champion for South Africa, with the DoE. The 5th
Parliament needs to monitor this.
Ø The
Department of Energy needs to expedite the conclusion of outstanding policies
and legislation. The 5th
Parliament needs to monitor this