Questions & Replies: Energy

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2011-04-14

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QUESTION 3722.

Mr. L. S. Ngonyama (COPE) to ask the Minister of Energy:

(a) What are the reason(s) for the delay in building a new refinery, Project Ikhwezi, at the Coega industrial port in the Eastern Cape, (b) what is the projected cost of the project, (c) when will it be completed, and (d) what are the further relevant details? NW4506E

REPLY

(a) The planned new refinery is called Project Mthombo. A process is currently under way to review the business plan of the planned refinery, taking into consideration various inputs previously received from different stakeholders. Once this has been done, the PetroSA Board will submit new proposals for my consideration.

(b)The projected costs are not available. The costs will depend, among other things, on the capacity and configuration finally agreed upon for the refinery.

(c) The intention is to ensure that there is a new refinery in operation before the end of this decade.

(d) None

Question 3617
Mr G B D Mc Intosh (Cope) to ask the Minister of Energy:

Whether her department has identified any procurement red tape that discriminate against local firms producing solar water heaters; if not, what is the position in this regard; if so, what are the relevant details? NW4396E

REPLY

We provide funding to Eskom and Municipalities for the procurement of solar water heaters under a fiscal funded programme. Any procurement red tape is a matter that, once raised by local firms, will be dealt with by a Project Steering Committee that has been formed comprising of the Departments of Economic Development, Energy, Trade and Industry, Higher Education and National Treasury.

QUESTION 3594.
Mr E J Lucas (IFP) to ask the Minister of Energy:

(1) Whether any officials in her department (a) have been investigated, (b) are currently under investigation and (c) have been charged for alleged (i) corrupt or (ii) fraudulent activity; if so, what are the relevant details;

(2) whether any disciplinary action has been taken against employees of her department for (a) fraud and/or (b) corruption; if so, (i) how many instances of disciplinary actions have (aa) been finalised and (bb) not been finalised and (ii) in each case, (aa) what sanctions have been meted out and (bb) how long has it taken to finalise such disciplinary actions;

(3) whether she has found that her department has adequate investigative capacity inclusive of manpower and infrastructure in respect of disciplinary proceedings; if not, why not; if so, what are the relevant details? NW4371E

REPLY

(a) Yes, 1 employee (Senior Manager),

(b) Yes, 2 employees,

(c) ( i) Yes, 1 employee; found guilty of dishonesty, unethical conduct and misleading the Department

(ii) None

(a) None, no case of fraud in the current financial year

(b) Yes, One employee

(aa) One case finalized;

(bb) None

(ii) (aa) Dismissal

(bb) 09 Months

The Department has adequate investigative capacity to deal with the normal day to day cases. In more complex cases where forensic investigation is required, cases are either referred to the Special Investigating Unit or a service provider is appointed to conduct such investigation.

QUESTION 3573
3573. Mr S C Motau (DA) to ask the Minister of Energy: [*346] [Question submitted for oral reply now placed for written reply because in excess of quota (NA Rule 108(8)]]

(1) Whether, with reference to Eskom and municipalities making use of the practice of disconnecting households and businesses as a credit control measure, defaulting indigents on the Poorest-of-the. Poor (POP) programme lose their free basic electricity (FBE) monthly entitlement when their electricity supply is disconnected due to a default In payment; II not, what is the position In this regard; If so, why;

(2) Whether affected households can claim back the FBE that was lost In order to off-set part of the arrears; If not, why not; If so, what are the relevant details? N04338E

REPLY

(1) Free basic electricity accrues to a designated POP on a monthly basis subject to funding availability from a municipality. Notwithstanding municipal credit control measures and policies which are subject to council approval and are unknown to the department, free basic electricity can only be disconnected to the POP If the POP has tempered with the meter or has been found to be stealing electricity.

(2) No, free basic electricity does not accumulate If not used and cannot be claimed retrospectively.

QUESTION NO 3572
Mr S C Motau (DA) to ask the Minister of Energy:

(1) What were the findings of the probe by the Special Investigating Unit into allegations of corruption and tender manipulation involving senior executives of (a) her department, (b) Eskom and (c) the National Electricity Regulator of SA (Nersa);

(2) What were the findings of the investigations into allegations brought against certain person (name and details furnished);

(3) Who are the other executives who are being investigated;

(4) Whether any of these persons hold directorships with companies doing business with her department or any of the entities reporting to it; if so what steps does she intend taking to obviate similar conflicts of interest and corruption amongst senior officials?


REPLY

(1) (a) None, as the Department, is still awaiting the report on the investigation conducted by the Special Investigating Unit (SIU).

(2) None, because the report on the abovementioned investigation is not submitted to the Department as yet

(3) There is no other executive in the Department who is being investigated at the moment.

(4) According to our records none of the executives in DOE holds directorships with companies doing business with the Department or any of the entities reporting to it.

QUESTION 3568
Mr S J Njikelana (ANC) to ask the Minister of Energy:

(a) To what extent has her department advanced on rural off-grid energy programmes and (b) what are the further relevant details? N4309E

REPLY

(a) From 2003 to July 2011 just over 46 100 Solar Home Systems (PV modules) have been Installed as part of INEP subsidy scheme In the five concessionary areas In Limpopo, KZN and Eastern Cape.

(b) The process to install PV systems is no longer limited to the concessionary areas, since all areas in South Africa which qualify can receive PV systems from 2012/13 onwards. A pilot will be launched in the Northern Cape in early 2012. In addition, DoE is also in negotiations with service providers to install larger capacity PV systems to ensure a better service. The cost analysis and the effect It will have on (he number of installations to be delivered annually, given the budget constraints, Is currently under Investigation. The larger the PV systems the higher the cost, while the increase on the annual allocation for PV SHS is inflation based.

QUESTION 3567
Mr S J Njikelana (ANC) to ask the Minister of Energy:

Whether any progress has been made in terms of the cleaner fuels programme that she launched a few months ago; If not why not: If so, what are the relevant details? N04308E

REPLY

Progress has been made in terms of the cleaner fuels programme that is meant to introduce more advanced and cleaner burning fuels in the country. As the Chairperson of the Energy Portfolio Committee is aware, the Department published a discussion document, which set out the intentions with regard to the fuel specifications going forward. One of the key Interventions is to reduce the levels of sulphur and benzene in Liquid Fuels in line with International trends.

Since the publication of the discussion document the Department has had several consultative engagements with the relevant stakeholders regarding their comments and key concerns on the contents. One of the key issues raised is what the oil Industry refers to as the "cost recovery mechanism", which relates to the funding of envisaged investments to upgrade the existing refineries to be able to produce fuels that comply with the Cleaner Fuels Two (CF2) fuel specifications and standards. In this regard the Department has consulted National Treasury and of late the Interdepartmental Task Team on clean fuel in order to develop an appropriate Investment supporting framework,

Parallel to these discussions the Department published the Draft Amendment Regulation regarding Fuel Specification and Standards in the Government Gazette (Gazette No 34681) for public comment on the 17 October 2011. The regulations once finalised will give a definite end state, which industry will have to plan to comply within 2017. The closing date for the public to submit comments is 15 December 2011. There should be no doubt that stakeholders have a good Idea of what they will need to comply with and the timelines are sufficiently generous.

Question 3563
Dr G W Koornhof (ANC) to ask the Minister of Energy:

How does (a) her department and (b) state-owned companies intend to fund the development of future energy renewable projects? NW4275E

REPLY

Due to the limited financial resources government has decided to augment its resources by leveraging private sector investment into the renewable energy programme given the high capital cost associated with the technology.

Question 3497
Mr T Botha (Cope) to ask the Minister for Energy:

Whether he has found that the energy strategy of the KwaZulu-Natal Province, which listed greenhouse gas mitigation action plans for the transport, public infrastructure, residential and industrial sectors, has been successful; if not, why not; if so, what (a) degree of success has been achieved and (b) are the further relevant details? NW4171E

REPLY

Currently the KwaZulu-Natal Province has not finalised an Energy Strategy for the region. There is however, a Provincial Climate Change Strategy being developed, that will integrate energy and greenhouse gas reduction targets.

(a) The question is most likely in reference to the eThekwini Energy Strategy, which indeed has action and targets plans in the transport, public infrastructure, residential and industrial sectors. These action plans and targets are for the period 2010 to 2020. A range of energy reduction programmes have been implemented by the eThekwini Municipality to address these various sector targets.

(b). In the public sector, the National Energy Efficiency Demand Side Management Programme has seen significant reductions in public sector infrastructure energy consumption. In the industrial sector, the city is actively involved in the National Industrial Energy Efficiency Improvement programme, and has initiated the Durban Industrial Climate Change Partnership programme. In the residential sector, the eThekwini Municipality has implemented the Shisa Solar Water Heater programme, and the Switch Off, Unplug and Save residential energy efficiency campaign. In the transport sector the city is implementing road freight management programme and is piloting an electric bicycle programme.

QUESTION 3359

Mr P D Dexter (Cope) to ask the Minister of Energy:

Whether her department is regulating safety standards for photovoltaic panels; if not, what is the position in this regard; if so, what are the relevant details? NW4020E

REPLY

The Department of Energy is responsible for policy formulation and funding of the non-grid electrification programme where PV panels are used as part of the Solar Home System (SHS) technology solution. The SHS is installed in line with the National Rationalized Specification (NRS 052) which outlines standards that need to be adhered to before, during and after installation. All low voltage installations have to also be in accordance with SANS 10142-1.

The Department does not regulate safety standards but ensures that all relevant standards relating to the non-grid electrification programme are adhered to at all times. Adherence to the NRS 052 (Standardized requirements to individual households remote from the electricity grid), NRS 070 (Quality of service standard for non-grid electricity customers), and SANS 10142-1 (Wiring of premises: Low voltage installations) is ensured through technical auditing of installed Solar Home Systems and this is performed by the Department of Energy.

The South African Bureau of Standards (SABS) is responsible for development of all these related standards and where South African standards are not existent, internationally accepted standards (ISO, IEC) apply.

Question 3265
Mr P D Dexter (Cope) to ask the Minister of Energy:

Whether she intends to follow the example of Ontario which has agreed to pay CAN $ 0,80/KWh for a period of 20 years for electricity from small rooftop solar systems (details furnished) to kick-start their photovoltaic industry; if not, why not; if so, what are the relevant details? NW3882E

REPLY

No, the department is continuously studying the latest developments in the renewable energy sector. The current regulatory circumstances in South Africa do not allow us to implement the Ontario model of rooftop solar systems, for a number of reasons including

(i) relatively high costs associated with solar PV, in comparison with the wholesale electricity price. This requires that the difference must be augmented by providing either a feed in tariff or a similar subsidy until grid price parity is reached.

(ii) the adverse financial impact on municipalities associated with the revenue loss due to having to pay the respective generators for the power exerted into the grid, makes it difficult for municipalities to fulfil the requirements of the Municipal Finance Management Act under this scheme.

Nonetheless, we have introduced a small (less than 5MW per project) renewable energy programme, in addition to the utility scale PV programme, which allows for rooftops PV projects, in competition with other Renewable technologies up to a limit of 100MW. This programme will be launched in 2012.

QUESTION 3062.

Mrs H Lamoela (DA) to ask the Minister of Energy:

(1) Whether (a) she, (b) the Deputy Minister and (c) any senior officials of her department intend to visit or have visited New Zealand during the 2011 Rugby World Cup Tournament; if so, what is the (i)(aa) name, (bb) rank and (cc) position or designation of each specified person accompanying (aaa) her, (bbb) the Deputy Minister and (ccc) each specified senior official and (ii)(aa) nature and (bb) official reason for the visit;

(2) what (a) total amount will be spent or has been spent on the trip and (b) is the (i) description and (ii) detailed breakdown of the amounts that will be spent or have been spent on (aa) accommodation, (bb) travel and (cc) subsistence costs? NW3584E

REPLY

The Minister, Deputy Minister and senior officials did not undertake any visits to New Zealand during the 2011 Rugby World Cup Tournament.

QUESTION 3019.

Dr D T George (DA) to ask the Minister of Energy:

(1) Whether (a) her department and (b) any entity reporting to her was approached by a certain political organisation (name furnished) to contribute to its 66th birthday celebrations; if so, in each case, (i) which entities and (ii) what was the (aa) nature and (bb) value of the contribution that was requested;

(2) whether (a) her department and (b) any of the specified entities reporting to her agreed to the request; if not, what is the position in this regard; if so, in each case, (i) who approved the request, (ii) what was the justification for the agreement to the request and (iii) from which budget will the contribution be paid;

(3) whether (a) her department and (b) any of the specified entities reporting to her made financial contributions to the said political organisation without being approached for such financial contributions; if so, in each case, (i) what amount will be contributed, (ii) from which budget, (iii) who made the decision to provide the specified funds to the said political organisation and (iv) how is this (aa) decision and (bb) amount justified;

(4) whether (a) her department and (b) any of the entities reporting to her rely on any (i) statutory and (ii) policy provisions in (aa) agreeing and (bb) making such contribution; if not, in each case, what is the position in this regard; if so, in each case, what are the relevant details? NW3503E

REPLY

According to the department's records no cash donations were approved or disbursed by the department during the previous (2010/11) and current (2011/12) financial year for contributions to the 66th birthday of a political organization. Public entities reporting to the Minister of Energy also confirmed that no cash donations were disbursed by themselves for this purpose.

According to information collected from all public entities reporting to the Minister of Energy and branches within the department, the department did not approve or contribute any donations to the event.

QUESTION 2961

Mr P D Dexter (Cope) to ask the Minister of Energy:

Whether the storage of waste casks onsite at the Koeberg nuclear power plant has been subject to licensing by the National Nuclear Regulator in terms of regulatory requirements; if not, why not; if so, what are the relevant details? NW3436E

Reply

Yes, the storage of waste casks onsite at Koeberg is subject to licensing in terms of the provisions of the Nuclear Installation Licence No. NIL-01 issued by the National Nuclear Regulator and further managed in accordance with the requirements of the Nuclear Energy Act, 1999.

QUESTION 2937

Mr S J Masango (DA) to ask the Minister of Energy:

(1) Whether she has been informed of ageing (a) cables and (b) electrical equipment at Bethal, Govan Mbeki Municipality; if not, what is the position in this regard; if so, (i) what action has been taken to rectify this situation, (ii) what are the details of this action plan, (iii) when (aa) was the action plan implemented and (bb) will it be finalised and (iv) what are the costs involved;

(2) Whether a contingency plan is in place to avoid unnecessary electricity supply failures; if not, why not; if so, what are the relevant details;

(3) Whether a future plan has been formulated to replace ageing (a) cables and (b) electrical equipment; if not, why not, in each case; if so, what are the relevant details in each case? NW3408E

REPLY

(1) The Minister and National Department of Energy (DOE) are aware of the challenges that the electricity distribution licensees (municipalities) at the Local Government are facing. Namely underinvestment in the electricity distribution industry in respect of maintenance, refurbishment, and strengthening.

(2) All municipal distributors of electricity have the obligation to invest in renewal of aging electricity distribution assets (cables and electrical equipment etc.) as per the licence conditions issued by the Electricity Regulator (NERSA) who also monitor compliance to the terms and conditions. The Municipal action plans within the relevant financial period are presented and approved by the relevant council and implemented according to municipal financial and operational capabilities.

(3) In the DOE's performance plans for the fiscal year 2011/12 and beyond, there is provision for a multiyear initiative, targeted at addressing the challenges of the electricity distribution industry in the short and longer term. A Cabinet approval would be sought as soon as possible for getting this multiyear initiative under way.

QUESTION 2903.

Mrs A Steyn (DA) to ask the Minister of Energy:

(1) Whether her department has placed any (a) companies or (b) persons on the List of Restricted Suppliers, thereby prohibiting the public sector to do business with them; if so, in each case, what is the (i) name of said entity or person, (ii) nature of their business, (iii) reason for restricting this service and (iv) date on which they were restricted;

(2) whether any of the implicated (a) companies or (b) persons have since been removed from the list; if so, in each case, (i) which entity or person, (ii) when and (iii) what is the reason for removing the specified company or person from the list;

(3) whether her department has conducted any business with any of the (a) companies that or (b) person who have been removed from the list; if so, in each case (i) with which companies or persons, (ii) with regard to which services, (iii) for which time period and (iv) why did her department engage the specified company or person despite previous conduct? NW3374E

Reply

(1) The department has never placed any company or person on the list of restricted suppliers

(2) Not applicable to the department

(3) Not Applicable to the department

QUESTION 2656.

Mr P D Dexter (Cope) to ask the Minister of Energy:

Whether her department will furnish details relating to the independent power producer (IPP) procurement programme, for electricity generation projects of less than 5 MW, as published in a certain article (details furnished); if not, why not; if so, what are the relevant details? NW3109E

Reply

Yes, the procurement process in respect of the projects of less than 5MW capacity will be pronounced by end of September 2011, once all documentation has been finalised

QUESTION 2756.

Mrs H Lamoela (DA) to ask the Minister of Energy:

(1) Whether the National Nuclear Regulator (NNR) has (a) cleaned up radioactive contamination emanating from the 120 years of poor disposal of mining wastes,(b) taken regulatory decisions regarding (i) inappropriate residential developments on or adjacent to uraniferous tailings dumps,(ii) the use of uraniferous tailings for construction material for residential dwellings, (iii) the (aa) uranium contamination as a result of the flooding of the mining basins with acid mine water and

(bb) radon risks to informal settlements where the radioactive gas can easily accumulate in low lying shacks (details furnished) and

(c) conducted epidemiological studies to quantify the health impacts of radioactive waste on communities in the Witwatersrand Goldfields; if not, why not; if so, what action did the NNR take in each case;

(2) whether members of the board have been restricted in any way to deal with concerns of affected communities and the findings of reports in board meetings; if so, how were board members restricted,(a) what are the reasons for restricting board members and (c) how may members of the board raise concerns of affected communities and findings of reports in board meetings

(3) whether all board members are technically qualified to understand and make informed decisions on matters pertaining to nuclear waste, uraniferous mining waste and associated health risks and hazards; if not, (a) why not, which board members are not qualified and (c) how does the board intend to deal with these issues; if so, what are the relevant details? NW3218E

Reply

(a) In ensuring the correct application of the "polluter pays" principle, the NNR cannot be held responsible for the cleanup of radioactive contamination due to poor disposal from mining activities. This is a matter for the operators who were responsible for generating mining waste and if these are not traceable, the Department of Mineral Resources bears the responsibility in this regard.

(b) (i) The NNR has taken regulatory decisions on residential developments that pose an immediate risk to members of the public. The NNR exercised its mandate in protecting residents of the Tudor shaft informal settlement. Further matters require that high-confidence radiological assessments be used as a basis for such decisions. The NNR is involved in activities that would further characterize the areas that have reflected some levels of radiation that could cause concern in the long run.

(ii) The NNR prohibits the use of uraniferous tailings for the construction of residential dwellings.

(iii) In respect of this matter, NNR is obligated to observe the mandate of the Department of Water Affairs but would however need to engage in cooperative governance regarding acid mine drainage.

(bb) The NNR would need to ensure that high-confidence assessments are undertaken in order to quantify whether the levels of radon pose a risk to members of the public. These matters need to be coordinated with the relevant municipalities.

© It is not within the scope of the NNR mandate to conduct epidemiological studies for affected

communities. The Department of Health is the appropriate authority in this regard.

2. The Board has never been restricted in any way from dealing with the concerns of affected communities and the findings of reports in board meetings.

(a) Not applicable. Refer to answer above.

(b) Not applicable. Refer to answer above.

3. (a) Board members are generally qualified to handle matters pertaining to the NNR mandate and to make informed decisions relating to nuclear waste, uraniferous mining waste and associated health risks and hazards. Where Board members do not possess sufficient technical knowledge, the Board sources technical experts to provide technical input in order to inform the Board in decision-making.

(a) Refer to answer above.

© All Board members possess necessary expertise to deal with matters of governance relating to the NNR mandate.

QUESTION 2755

Mrs. H Lamoela (DA) to ask the Minister of Energy:

(1) Whether the members of the board of the National Nuclear Regulator have (a) been

informed of and (b) studied the findings and recommendations of certain specified government and peer reviewed reports, namely (i) Radioactivity Monitoring Programme in the Mooi River (Wonderfonteinspruit) Catchment (details furnished),(ii) Radioactivity study on sediments in a dam on the Wonderfonteinspruit Catchment (details furnished), (iii) Tier 1 Risk Assessment of Selected Radionuclides in Sediments of the Mooi River Catchment (details furnished), (iv) Uranium and heavy metals in sediments in a dam on the farm Blaauwbank (details furnished), (v) Contamination of wetlands by Witwatersrand gold mines - processes and the economic potential of gold in wetlands (details furnished), (vi) An Assessment of Sources, Pathways, Mechanisms and Risks of Current and Potential Future Pollution of Water and Sediments in Gold-Mining Areas of the Wonderfonteinspruit Catchment (details furnished), (vii) Background Report on Communities at Risk Within Mogale City Local Municipality Affected by Mining Related Activities, with Special Reference to Radiation & Toxicity (details furnished), (viii) Impact of the discharge of Treated Mine Water, via the Tweelopies Spruit, on the receiving water body Crocodile River system (details furnished) and (ix) Status Report on the Actions Arising from the Study of Radiological Contamination of the Wonderfonteinspruit Catchment (details furnished); if so, what action has been taken with regard to each specified report; if not,

(2) Whether it is the board's mandate to study the specified reports; if not,

(a) What is their mandate in respect of the specified reports and

(b) Who is responsible for ensuring that the board studies the specified reports

Reply:

The NNR in carrying out its mandate focuses on the radiological aspects of uranium contamination resulting from mining residues that may pose a risk to members of the public and the environment. To the best of our knowledge the above reports do not deal with radiological risk in accordance with the international standards adopted by the NNR.

While the Board has not been specifically informed of all the above reports, the NNR in carrying out its mandate may need to take cognizance of specific matters raised in these reports that are linked to radiological risk in as far as it can be demonstrated to be relevant to the mandate of the NNR. It must be recognized however, that the NNR should not be reviewing reports that are inconsistent with its prescribed methodologies for assessing the extent of contamination. To the best of our knowledge these reports are written and formulated with data that would lead to an assessment of chemical risk posed by pollutants. The NNR does not have the competency to deal with matters dealing with chemical analysis. However, the proposed means of engagement in regard to these reports is that the organizations that have authored the reports engage the NNR in respect to the radiological risk assessed in these reports in the instance that the said risk complies with the NNR regulatory requirements for ascertaining such risks.

(2) It is not the mandate of the Board to study reports that fall outside of the mandate of the NNR as articulated in (1) above.

(a) The Board in carrying out the mandate of the NNR is responsible for overall regulatory oversight in regard to radiation and nuclear safety. The reports in question do not deal with radiation and nuclear safety in a format that leads to providing an assessment of radiological risk. To the best of our knowledge the reports deal with chemical risk arising from mining residues in the environment.

The NNR is therefore not directly obligated in regard to the specified reports.

(b) It follows from the above response that the matters are not related to the functioning of the NNR Board and therefore the issue would not arise in this context.

QUESTION 2732.

Mr J R B Lorimer (DA) to ask the Minister of Energy:

(1) (a) Who is the preferred service provider that is used by her department for the hiring

of vehicles and (b) why is the specified service provider preferred;

(2) whether her department has a fixed contract with the specified service provider; ifnot, why not; if so, what are the relevant details;

(3) what is the (a) name of the service provider and (b) reason for using the specified service provider in each instance where vehicles have been hired for use by her or her Deputy Minister since March 2010?

Reply

1. (a) In terms of the Preferential Procurement Policy Framework Act, 2000 (PPPFA) together with the supporting regulations, government departments are required to develop a procurement system that is fair, equitable and transparent and allow preference to historically disadvantaged South Africans. The Department of Energy has consistently within the above framework undertook services of four different travel agencies who are providing broad travel management services to the department (car hire, accommodation, air travel etc.).

(b) N/A. There is no preferred or specific service provider that provides the Department of Energy with car hiring services.

2. The Department of Energy inherited the travel and accommodation contracts from the former Department of Minerals and Energy (DME) in April 2010. These contracts have been awarded to four service providers.

3. (a) Travel with Flair (Pty) Ltd, Wingsnaledi (Pty) Ltd, Harvey World Travel (Pty) Ltd, and Travel Adventures International (Pty) Ltd for a period of 24 months effective from 1 November 2009 to 31 October 2011. (a) Travel with Flair (Pty) Ltd, Wingsnaledi (Pty) Ltd, Harvey World Travel (Pty) Ltd, and Travel Adventures International (Pty) Ltd.

(b) The above service providers are selected on a rotational basis or based on a comparative analysis.

QUESTION 2655

Mr P D Dexter (Cope) to ask the Minister of Energy:

How did her department calculate the R15 000 non-refundable fee payable by the independent power producers (IPPs) to access application documents for the procurement programme to supply the national grid with renewable energy? NW3108E

REPLY

The R15 000 non-refundable fee payable for the RE IPP Bid documentation is based on standard practice for large project finance deals of this nature. The rationale is that only serious players who can raise the finance for such deals are meant to collect the documents. Apart from the R15 000, a bid bond of R100 000/MW is payable, for the same reason. If bidders are unable to afford these payments, it is unlikely that they will be able to raise the project financing required for the project.

To address concerns about small and emerging companies, the department has also designed a "small projects" bidding programme, with relaxed conditions relating to the bidding requirements. The documents will be available for a nominal fee, the bid bond will be smaller, and the bid rules will be less onerous in respect of the requirements. This will accommodate those that are not able to participate in the larger programme.

QUESTION 2654

Mr P D Dexter (Cope) to ask the Minister of Energy:

Whether the Government has the capacity to deal with the proposed 3 725 megawatts that has been allocated to renewable energy sources which will be fed into the national grid in 2014; if not, why not; if so, what are the relevant details? NW3107E

REPLY

Yes, Government departments already work together to deal with the various aspects of the IPP procurement process. In addition, transaction advisors have been appointed to augment our capacity to deal with the programme.

QUESTION 2531

Mr P D Dexter (Cope) to ask the Minister of Energy:

What (a) will be the allocation to the (i) Upington Solar Power Plant project and (ii) Koekenaap Wind Farm, (b) are the terms of the loan and (c) are the further relevant details of the 100 million euro loan from French Development Agency (EDF)? NW2952E

REPLY

a) The allocation for the two projects is as follows:

i) Sere Wind Farm Project (Koenkenaap) – USD 354 million

ii) CSP Project ( Upington) – USD 1197 million

b) World Bank and African Development Bank funding has been secured for both projects. The African Development Bank (own resources and CTF portion) was signed as part of the Agreement signing that took place on Sunday 25th September when the Ministers were in Washington DC for the IMF/World Meetings. The terms of the agreement will be available upon approval by the Board. The World Bank (CTF) portion will be presented to their Board for approval before the end of October 2011.

Eskom and AFD concluded and signed a 20 year loan agreement for EUR100 million which forms part of the funding plan for the Wind Farm. The WB and AfdB are acting as the implementing agents for the CTF loan.

c) The loan will eventually be a ZAR denominated loan, which means the payback over the 20 years will be in ZAR. The loan is not guaranteed by the Government.

QUESTION 2513.

Mr J R B Lorimer (DA) to ask the Minister of Energy:

Whether (a) her department and (b) entities reporting to it have (i) awarded any tenders and (ii) concluded any (aa) contracts and (bb) financial transactions with certain companies (names and details furnished) in each specified financial year since 2005-06; if so, (aaa) which company or entity, (bbb) what are the relevant details, (ccc) what was the value of each (aaaa) tender, (bbbb) contract or (cccc) financial transaction and (ddd) what was the name of the companies who failed for each tender, contract or financial transaction that was awarded? NW2932E

Reply

1. For the years 2005-2006 the Department of Energy was part of Department of Minerals and Energy. However, the department of Energy and its entities reporting to the Minister (NNR, NECSA, NERSA, CEF, and SANEDI) have never awarded any tenders or concluded any contracts or had any financial transactions with these companies listed.

Question2430

Dr H C van Schalkwyk (DA) to ask the Minister of Energy:

What amount was (a) claimed by and (b) paid to (i) her and (ii) her deputy minister for subsistence and travel in each month in the 2010-11 financial year? NW2828E

Reply

Ministers and Deputy Minister's travel and Subsistence are covered by public service rules and regulations. They are allowed to make subsistence and travel claims when fulfilling official duty away from their ordinary places of residence which are in Pretoria and Cape Town.

According to the South African Revenue Service, subsistence allowance is any allowance given to an employee or a holder of any office for expenses incurred or to be incurred in respect of personal subsistence and incidental costs. Therefore subsistence is paid to Ministers and Deputy Ministers to cover their personal subsistence and incidental costs while travelling.

Ministers and Deputy Ministers make subsistence and travel claims for expenses incurred while on official trips, which include, amongst others, international trips and those journeys away from their ordinary places of residence. These trips are undertaken to fulfil their ministerial duties, which include direct interaction with communities as a critical part of public participation programmes.

Departments ensure that mechanisms are in place to ensure these expenses are met within the requirements of rules and regulations.

QUESTION 2376.

Dr G W Koornhof (ANC) to ask the Minister of Energy:

Whether (a) her department and (b) the entities reporting to her have implemented any energy-saving (i) practices or (ii) devices for buildings, offices and boardrooms in the 2010-11 financial year; if not, why not, in each case; if so, what are the relevant details in each case? NW2758E

Reply

(a) The department is responsible for an energy efficiency programme that is funded from the fiscus, to institute various energy efficiency measures through municipalities and Eskom.

(i) The measures include the retrofitting of incandescent lighting with more efficient light fittings (compact fluorescent lights for residential consumers, solar water heating, light emitting diodes for traffic lights, etc.). In terms of this programme, municipalities and Eskom have to motivate the EE intervention in (i) relation to the energy saving impact of the technology.

(ii) The retrofitting of buildings with EE measures like motion detectors, efficient lighting systems, improved insulation, efficient heating and ventilation systems, also takes place in municipal buildings under this programme. The Department of Public Works, as the government asset manager, has also initiated an energy efficiency programme for public buildings under their jurisdiction.

(b) Over the past 3 years approximately R300m has been disbursed to Eskom and municipalities for this purpose. Over and above this funding, Eskom also provides additional funding from the electricity tariff, in terms of which solar water heating is provided to households. This reduces the demand for electricity, and it is estimated that approximately 30% of the electricity bill can be saved through this intervention. As at June 2011, approximately 115 000 solar water heating units had been installed in various households across the country. Whilst the programme has achieved a level of scale in the low-income segment, the high income segment has not taken the solar water heater opportunity to the same level. There are still challenges relating to the capital cost of the solar water units, relative to the savings that would result from its installation. The department is finalizing a funding model that will increase the uptake of the units, without depending entirely of fiscal subsidies. Through this scheme (called the standard offer programme or SOP) the localization of the units will be a condition for participation by suppliers.

QUESTION 2328.

Mr T D Lee (DA) to ask the Minister of Energy:

(1) Whether (a) her department and (b) any entity reporting to her was approached by a certain political organisation (name furnished) to contribute to its centenary celebrations; if so, in each case, (i) which entities and (ii) what was the (aa) nature and (bb) value of the contribution that was requested;

(2) Whether (a) her department and (b) any entity reporting to her has a policy that provide for such funding; if so,

(3) whether (a) her department and (b) any specified entity reporting to her has (i) agreed to the request or (ii) made financial contributions to the said political organisation in the absence of such an approach for funding; if not, why not, in each case; if so, in each case, (aa) who approved the request, (bb) on what grounds was the decision made, (cc) from which budget was it (aaa) agreed to pay the contribution or (bbb) paid, (dd) what amount was paid, (ee) who made the decision to provide the specified funds to the said political organisation and (ff) how is this (aaa) decision and (bbb) amount justified? NW2704E

Reply

(1) The Department of Energy and all the entities reporting to the Minister (NNR, NECSA, NERSA, CEF and SANERI was never approached by any of the political organisation to contribute to the party's centenary celebrations and therefore no such contribution was made.

(2) (a) Department of Energy have a policy on Donations, gifts and sponsorship indicated below.

Policy on Donations, gifts and sponsorships

2.1.2.5.7.2 Delegated authority for granting of donations, gifts and sponsorships

In terms of Treasury Regulation 21.1.1 the Accounting Officer may approve gifts, donations and sponsorships of state money and other movable property in the interest of the State up to an amount of R100 000. Delegated Authority

Authorisation Threshold

Per Event

DG/ DDG/ CFO/ CD: Management Services/

CD: Communication

Up to R100,000

Programme Managers

Up to R20,000

Cash donations, gifts, and sponsorships must be paid from the voted funds of the relevant Directorate's budget. If no funds have been budgeted for through the MTEF process under transfers and subsidies approval in terms of Treasury Regulation 6.3.1 (b) must be obtained from National Treasury before any gifts, donations and sponsorships in cashcan be paid.

When amounts exceed R100 000, the approval of the legislature must be obtained by including the item separately in the Appropriation Bill.

2.1.2.5.8 Departmental record keeping and reporting

All donations, gifts and sponsorships received or provided must be recorded in the Department's register and donated equipment should also be recorded on the asset register of the Department

All approved donations, gifts and sponsorships will be disclosed in the Department's annual financial statements.

(2) (b) All entities reporting to the Minister does not have policies that provides for such funding.

(3) (a) Department of Energy and all entities reporting to the Minister (i) has not agreed to such a request , and (ii) has not made any financial contributions in the absence of such a request for funding.

QUESTION 2275

Mr P D Dexter (Cope) to ask the Minister of Energy:

Whether she has been informed of the concerns of the University of the Western Cape that nuclear power stations are capital intensive and create fewer jobs per megawatt and per billion rand investment compared to solar power stations (details furnished); if not, what is the position in this regard; if so, what steps will she take to ensure that labour absorbing projects get priority to decrease our unemployment levels? NW2647E

REPLY

There are a few international studies on job creation from various energy sources, with clear indications that nuclear companies compare favourably, and in some cases better than solar power stations. It is important to understand that job creation is not only dependent on the choice of technology but also on how it is deployed and the potential for competitive localisation. Jobs in the nuclear industry span over a wide range from semi skilled labour in the Uranium mining industry to highly skilled scientists and engineers in design and research of nuclear technology.

Equally, solar technology deployment will create numerous job opportunities. Our approach is to take advantage of the jobs potential based on the broad portfolio of technologies in the IRP2010.

QUESTION 2274

Mr P D Dexter (Cope) to ask the Minister of Energy:

Whether her department will furnish details of the Development Bank of South Africa's (DBSA) funding package for black enterprises wanting to partake in the independent power producer procurement programme; if not, why not; if so, what are the relevant details? NW2646E

REPLY

Yes, the DBSA agreed to fund a portion relating to BEE under the Renewable Energy Independent Power Producers programme. This loan will not require the guarantees that might be required by commercial banks. The details regarding the loan will be based on the project specifics. It will be difficult for government to pronounce on this but the procurement documents outline the high level requirements in this regard. Every registered bidder who has paid the registration fee, received the framework regarding the BEE funding under the DBSA programme. It is not compulsory for a developer to use the DBSA and any institution capable of funding the BEE component, will be allowed. However, we are of the view that the terms and conditions under the DBSA programme are favourable to BEE.

QUESTION 2223.

Mr G R Krumbock (DA) to ask the Minister of Energy:

(1) Whether (a) she, (b) her deputy minister, (c) any specified officials and (d) any other persons have been issued with a government or official credit card during the period 1 April 2010 up to the latest specified date for which information is available; if so, what are the relevant details for her, her deputy minister and each holder of a credit card in respect of the (i) name, (ii) job title, (iii) credit limit, (iv) outstanding amount as at the latest specified date for which information is available, (v) monthly expenses incurred for each month since receiving the credit card, (vi) reason for such persons being issued with a credit card and (vii) uses that such a credit card is intended for;

(2) whether any such credit cards are over their credit limit; if so, (a) whose credit cards are over the limit and (b) what is the reason for the credit cards exceeding the limit;

(3) whether any action has been taken against such persons for exceeding their credit card limits; if not, why not; if so, what are the relevant details? NW2598E

Reply

(1) (i) –(iii) A Corporate Diners Club Account was opened in September 2010 with a combined credit limit of R10 000,00.

· The Minister received her card in March 2011.

· The Director-General received her card in September 2010.

· During the month of August 2011, the Deputy Minister has also been issued with a credit card, the combined limit of the card as of 22/8/11 remains R10 000.00.

(iv) The outstanding amount is R5025.81, which was due to be paid on 31/08/20.

(v) Monthly expenses incurred since the account was opened: R37 127.31

(vi) The credit cards were issued to the Minister, Deputy Minister and Director General as per the Ministerial Handbook

(vii) The credit cards are used by the Minister, Deputy Minister and Director General for the purposes of business and related adhoc expenses whilst conducting official duties.

(2) No credit card is over the credit limit.

(3) Not relevant to this Department.

QUESTION 2116

Mr. P van Dalen (DA) to ask the Minister of Energy:

Whether Eskom continued with the normal uninterrupted supply of electricity to foreign countries during periods of load shedding; if not; if so, why? NW2390E

Reply

Load shedding falls within the operational mandate of Eskom, which reports directly to the Department of Public Enterprises. Accordingly, the response should come from the Department of Public Enterprises.

QUESTION 2115

Mr. P van Dalen (DA) to ask the Minister of Energy:

Whether, with reference to her reply to question 1098 on 2 August 2011, and the recent ruling by the Gauteng South High Court in favour of disclosing information on Eskom's secret pricing deals with the global mining giant BHP Billiton, she will now disclose Eskom's pricing structure for foreign sales of electricity; if not, why not; if so, what are the relevant details with regard to (a) the country, (b) the entity to which electricity is supplied and (c) the pricing structure applicable in each case? NW2389E

Reply
The Department of Energy received the question, reviewed its contents against its mandate and has determined that the most appropriate respondent should be the Department of Public Enterprises.

QUESTION 2013.

Mr G R Krumbock (DA) to ask the Minister of Energy:

(a) At how many (i) international and (ii) domestic hotels/guest houses were (aa) she and (bb) her Deputy Minister accommodated during the period 1 April 2009 up to the latest specified date for which information is available and (b) what (i) was the (aa) name, (bb) star rating and (cc) city location of each specified establishment, (ii) was the (aa) duration and (bb) purpose of the stay in each case and (iii)(aa) was the total cost of the accommodation and (bb) is the breakdown of the accommodation cost in each case? NW2259E

Reply

I consider accountability very important and respect the oversight role that Parliament plays on the Ministry and Department of Energy. However, providing a reply to this question might compromise the personal security of the Deputy Minister and myself.