Energy | PMG

2011-11-10

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QUESTION 1939

Mr G R Krumbock to ask the Minister of Energy:

(a) How many (i) international flights and (ii) domestic flights were undertaken by (aa) him and (bb) his deputy minister using (aaa) military aircraft, (bbb) chartered aircraft or (ccc) commercial aircraft during the period 1 April 2010 up to the latest specified date for which information is available, (b) what class did he and his deputy minister travel in each case and (c) what amount did his department spend with regard to each specified flight? NW2177E

REPLY

Ministers and Deputy Ministers may use business class / first class travel for official purposes at the expense of their Departments. Official trips include, amongst others, those travelled from Pretoria to Cape Town for Parliamentary Sittings and appearances, as well as international trips, which require Ministers to execute official duties.

All flights are used for official duty and this is an enabling factor for Public Participation Programmes of Ministers who have to meet demanding schedules.

Members may use the South African Airforce aircraft for official purposes, when available and under certain circumstances and for reasons including if the facilities of other airlines are not cost-effective and / or readily available in the specific instance.

Members may also use chartered aircraft for official purposes and for reasons including if the facilities of other airlines are not cost-effective and / or readily available in a specific instance.

The Ministry (and its support staff) is responsible for determining the cost-effectiveness of all trips carried out by Ministers and Deputy Minister's and ensure that the intended journeys meet the requirements of relevant guidelines.

QUESTION 1905.

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

Whether she has employed a ministerial special advisor; if so, (a) what are the duties of the advisor, (b) at which post level was the appointment made, (c) what is the salary level of the advisor, (d) what is the duration of the employment contract entered into with the advisor and (e) why was it necessary to appoint this advisor? NW2143E

Reply

Yes. A national Cabinet Minister may employ two special advisors.

(a) The appointment of special advisors to executive authorities is regulated by section 12A of the Public Service Act, 1994 and the dispensation approved by the national Cabinet in terms of section 12A. The Minister has appointed one special advisor in terms of Public Service Act (section 12A):

· To advise the Executive Authority on the exercise or performance of the Executive Authority's powers and duties;

· To advise the Executive Authority on the development of policy that will promote the relevant department's objectives; or

· To perform such other tasks as may be appropriate in respect of the Executive authority's powers and duties.

(b) The Cabinet approved dispensation for the appointment and remuneration of special advisors sets out the different compensation levels that are applicable to special advisors.

In determining a compensation level for a special advisor the individual's level of expertise and the stature in the particular field are taken in to account. The Dispensation provides for the following four different levels of compensation in order to accommodate different levels of expertise:

(a) Compensation level (I) (Director level in public service)

(i) Enjoys noticeable national recognition as a competent expert.

(ii) Complexity advice to be rendered comparable to that given by a Director (Senior Management Service Grade A) in the Public Service.

(b) Compensation level (II) (Chief Director level in public service)

(i) Enjoys recognition as a competent expert at a national level.

(ii) Complexity of advice to be rendered comparable to that given by a Chief Director (Senior Management Service Grade B) in the Public Service.

(i) Enjoys recognition as a competent expert at national and to some degree at international level

(ii) Complexity of advice to be given comparable to that given by the Deputy Director-General (Senior Management Service Grade C) in the Public Service.

(d) Compensation level (IV) (Director-General level in public service)

(i) Enjoys recognition as a competent expert at national and international level;

(ii) To appoint and retain persons with very high level skills and/or skills.

(ii) Complexity of advice to be rendered is comparable to that given by a Director-General (Senior Management Service Grade D) in the Public Service.

(c) The Special Advisor is compensated according to Compensation level IV as stated above because he enjoys recognition as VI and the complexity of advise rendered is comparable to VI

(d) The duration of the contract has been agreed upon between the special advisor and the Executive Authority. Regardless of the contract period, the contract will terminate at the end of the month following the month that the Executive Authority vacates office for any reason.

(e) To advise and perform other tasks for the Executive Authority (as provided for in section 12A of the Public Service Act) with respect to her portfolio, in the individual/s area of expertise.

QUESTION 1808.

Mrs S V Kalyan (DA) to ask the Minister of Energy:

1) Whether any deformed (a) reptiles, (b) fish and (c) mammals have been discovered on the grounds of Pelindaba since 1 January 1995; if not, how was this conclusion reached; if so, what are the relevant details;

2) Whether the causes of the deformities were established in each case; if not, why not; if so, what are the relevant details in each case;

3) Whether the cause of the deformities was stopped; if not, why not; if so, what are the relevant details in each case? NW2041E

REPLY

1) No deformities were detected in (a) reptiles, (b) fish and (c) mammals on the grounds of the Pelindaba site before or after 1 January 1995. Routine sampling and monitoring of fish species both from the Crocodile River and Hartebeespoort Dam forms part of the Pelindaba Environmental Monitoring Programme. The environmental scientists, together with the Wildlife Breeding Centre regularly make inspections of the entire site to monitor conditions of the animals on the Pelindaba site.

2) See (1) above

3) See (1) above

QUESTION: 1702.

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

(2) (a) what was the actual budget increase each year, expressed as a percentage, for funds allocated to this sub-programme and (b) how is the increase for each specified financial year justified? NW1916E

REPLY

(1)

Financial year	Ministry	Deputy Ministry	TOTAL
2007/08**	-	-	-
2008/09**	-	-	-
2009/10	11 724	-	11 724
2010/11	20945	-	20945
2011/12	14 281	7 188	21 469

** Ministry established May 2009 shared services with DMR, Deputy Ministry established November 2010 with shared Ministry until 31 March 2011.

(2) (a)&(b) Following the announcement of the split by the President, various options to effect the pronouncement by the President were explored in view of the scarcity of the financial resources. With the establishment of the two Ministries, a decision was taken to split the old Department of Minerals and Energy into two separate departments, namely, the Department of Mineral Resources and the Department of Energy. This was done following both departments' line function responsibilities being delineated in terms of the new portfolios with Support Services providing an uninterrupted shared service to both departments until the end of the 2009/10 financial year.

The Department was established in May 2009 as a result of the decision by the President to separate the former Department of Minerals and Energy into two independent departments. The vote was however only officially separated from the Department of Minerals and Energy and a separate funding appropriated in the appropriation act with effect from 1 April 2010. The Deputy Ministry of Energy was only established from November 2010 onwards and a separate sub-programme implemented from 1 April 2011.

During the 2010/11 financial year, a total amount of R10.7 million was allocated for the Ministry of Energy which included the following:

2010/11 Main Appropriation - Expenditure Item	R'000
Compensation of Employees	5 303
Goods and Services	5 400
TOTAL MAIN APPROPRIATION	10 703

With the establishment of a Deputy Ministry after the outcome of the 2010/11 Adjusted Appropriation (revised budget) during November 2011, the department was required to reprioritise funding within existing baseline allocations and redirect funding to cater for expenditure associated with the establishment of the Deputy Ministry. This consequently resulted in the establishment of basic services for the ministries and increase in budget and expenditure as follows:

2010/11 Main Appropriation - Expenditure Item	R'000
Compensation of Employees	10 147
Goods and Services	10 753
Payments for capital assets	45
TOTAL MAIN APPROPRIATION	20 945

The full establishment of both the Ministry and Deputy Ministry with effect from 1 April 2011 is reflected in the medium expenditure framework (MTEF) budget allocations for the 2011/12 to 2013/14 financial years with baseline allocations increasing from R21.47 million in 2011/12 to an estimated R22.31 million in 2013/14. Amounts allocated are as follows:

2011/12 Main Appropriation - Expenditure Item	R'000
Ministry	14 281
Deputy Ministry	7 188
TOTAL MAIN APPROPRIATION	21 469

The increase in baseline allocation during 2010/11 from R10.56 million in 2010/11 to R21.46 in 2011/12 by 50% there for reflects the establishment of the Deputy Ministry under the sub-programme: Ministry. Baseline allocations remain relatively constant over the MTEF period and are based on MTEF guidelines provided by National Treasury.

QUESTION 1669

Mr S C Motau (DA) to ask the Minister of Energy:

1) Whether, since her reply to question 875 on 29 April 2010, (a) Thyspunt in the Eastern Cape has been selected as the site for Eskom's planned Nuclear-1 site and (b) Bantamsklip on the Southern Cape Coast has been selected as the site for Eskom's Nuclear-2 site; if not, why not, in each case; if so,

2) Whether these sites have approved (a) environmental impact assessments and (b) environmental impact management plans; if not, (i) why not, in each case and (ii) why have these sites been selected without these assessments or plans being conducted; if so, when were these assessments or plans approved;

3) Whether the appropriate consultative processes with interested and affected persons have been followed; if not, why not; if so, what are the relevant details? NW1882E

REPLY

1) (a) and (b)

No decision has as yet been made regarding the use of any sites for nuclear power stations.

2) With regards to Nuclear -1, the process of identifying a prospective site commenced in 2007 with an Environmental Impact Assessment (EIA), whilst no process has commenced for any other nuclear facility. A revised Draft Environmental Impact Report was recently issued for public comment. The revised Draft Environmental Impact Report recommends the Thyspunt site as a suitable site for a nuclear power station (Nuclear-1). A decision on whether to grant an environmental authorisation for the nuclear power station and on which of the three alternatives sites (if any), will be made by the Department of Environmental Affairs only after a final Environmental Impact Report has been submitted to, and reviewed by, the Department.

3) An extensive public engagement process has been undertaken in accordance with the environmental impact assessment regulations.

QUESTION 1651

Mr L W Greyling (ID) to ask the Minister of Energy:

1) What progress has her department made in developing regulations concerning energy efficient buildings;

2) Whether she intends including a stipulation that solar water heaters must be installed in all new buildings; if not, why not; if so, when will the specified regulations be promulgated? NW1857E

REPLY

1) The Department of Energy is in the process of consultation with the Department of Trade and Industry to amend the National Building Regulations to enforce compliance with energy efficiency, (Enforcement of compliance to the National Building Regulations is undertaken under the auspices of the National Regulator for Compulsory Specifications and the municipal building control inspectors). These regulations will be promulgated by the Minister of Trade and Industry in August 2011. They will apply to new buildings only (both Commercial buildings as well as Residential houses).

2) The Regulations stipulate that all new buildings in these categories must receive at least 50% volume of their hot water requirements by technologies other than electrical resistance heating, including solar water heaters and heat pumps. This implies that all new buildings must include either a solar water heater or a heat pump or some other renewable form of water heating.

QUESTION 1649

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

What are the reasons for not implementing the renewable energy feed-in tariff (Refit) programme? NW1856E

REPLY

The REFIT is premised on a predetermined tariff for the different renewable technologies. In the South African legal context, the Electricity Regulation Act does not allow the regulator to predetermine the electricity tariffs, but rather to set a tariff guideline. Accordingly, it would be irregular to fetter the determination by Nersa of a set of tariffs (REFITS), before the licence application by the prospective developer.

Notwithstanding this situation, the objectives of the REFIT programme can still be achieved in a dispensation that does not predetermine the tariff. Localisation, skills and technology transfer can still be set as objective criteria which can be used side by side with the bid price to select preferred project developers.

QUESTION 1641

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

a) What are the relevant details of the contracts which her department have entered into with suppliers with regard to the installation of one million solar water heaters (SWHs) as part of its SWH roll-out programme set for completion in 2014,

b) What are the names of the companies with which the contracts were signed,

c) What is the value of each contract and

d) What are further relevant details of the contracts that were entered into?NW1847E

REPLY

a) The Department transfers fiscal allocations through schedules 6 and 7 of the Division of Revenue Act to Munipalities and Eskom respectively to serve as the implementing agents on behalf of the department. Municipalities and Eskom rather than the department enter into contractual agreements with the suppliers and installers.

b) and c)

Tshwane Metro Project:

Citrine Construction	R30, 778,119.00
Solar Academy of Sub Saharan Africa (SASSA)	R27, 705,960.36
Intisolar Consortium	R31, 218,900.00
K2S	(R4, 167,612.00)

Naledi Municipality Project:

JV Kgabo Engineers and Projects (KEAP) & Clean Heat	R49, 137,990.00
Karebo	R2, 687,738.21

Sol Plaatjie Municipality Project:

Thermoplus Solar	R45, 434,415.02
Acutech	R2, 732,657.50

d) Suppliers have to Supply, Install and Service a Low Pressure SWH ranging between 100l to 150l.

70% of the labour is sourced locally.

Training of local labour by the accredited SETA service provider, as installers and maintenance service providers.

The SWH units as well as the material used for installation must comply with the SABS Low Pressure Systems Technical Specifications and in accordance with the National Building Regulations.

The Installations must be signed off by a qualified plumber.

QUESTION: 1576.

Mrs C Dudley (ACDP) to ask the Minister of Energy:

In light of the fact that Koeberg Nuclear Power station was built alongside the Milnerton fault line and the increase in the magnitude of earthquakes worldwide, what is our readiness to cope with earthquakes, tsunamis and radiation leakage in the event of an earthquake (a) on this fault and (b) elsewhere in South Africa? NW1740E

REPLY

The Disaster Management Act requires the Minister of Energy, as the responsible person for the coordination and management of matters related to nuclear energy, to prepare a disaster management plan for nuclear disasters. The National Nuclear Disaster Management Plan was approved and submitted to the National Disaster Management Centre in 2005. This plan deals with how a nuclear emergency must be handled. There are emergency plans for both the Koeberg Nuclear Power Plant and the Pelindaba Materials Research Reactor. These emergency plans are tested regularly to check the response of the different players, i.e. operator, local and national authorities.

Koeberg, as originally designed and subsequently modified by Eskom, is in line with modern international safety standards and also has defence-in-depth measures that are relevant to its location. Following the accident at Fukushima, Eskom performed the necessary tests to verify the capability of all equipment required to respond to severe and beyond design basis accidents.

The following measures are in place:

• Koeberg is designed to withstand an earthquake of level 7 on Richter Scale

• The Koeberg terrace height is 8 metre above mean sea level,

• Koeberg is supplied from five kV lines that are connected to the national grid.

• If there is a problem with this supply from the national grid, a dedicated power station is available

• Additional backup generators are on site

• It is equipped to facilitate the addition of cooling water to spent fuel pools and containment buildings should it be required.

• An emergency plan is in place. It has been tested and found to be adequate

QUESTION 1567

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

How many solar water heaters (SWH) have been installed since October 2010, as part of the Government's one million SWH roll-out by 2014? NW1735E

REPLY

For the period 01 October 2010 to 31 May 2011, 78 669 solar water heaters (SWHs) were installed as part of the Government's one million SWH roll-out by the end of the 2014/15 financial year.

QUESTION 1566

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

Whether her department has encountered any challenges with the roll-out of solar water heaters (SWH) as part of Government's commitment to one million SWH units by 2014; if not, what is the position in this regard; if so, what are the relevant details? NW1734E

REPLY

Yes, my Department has encountered a number of challenges with the roll-out of solar water heaters (SWHs), and these include the following:

i. Poor installations;

ii. High capital costs of solar water heaters; and

iii. Programme financing.

Efforts to address these challenges are progressing quite well, and are reflected below:

i. Since April 2010, standards for both low- and high-pressure solar water heaters have been in existence but adherence to these standards remains a challenge. Eskom has now introduced strict measures to make conformity to national standards inescapable. The scope, frequency and extent of independent technical audits on the installations have now been widened, and vendors run the risk that their payments might be withheld if they transgress.

ii. The department is of the view that scaling up local production as demand increases will also put a downward pressure on product prices.

iii. To address the challenges associated with financing this programme the new Standard Offer incentive scheme that will fund all Energy Efficiency and Demand Side Management interventions has been developed. A funding model for this tariff funded scheme has been finalised, and through engagements with NERSA and Eskom, my department is working on its implementation.

QUESTION 1565

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

Whether her department intends to ensure that Memorandums of Understanding (MOUs) that were signed with municipalities for the installation of solar water heaters (SWHs) as part of the Government's programme to install one million SWHs by 2014 will be honoured; if not, what is the position in this regard; if so, what are the relevant details? NW1733E

REPLY

Yes, all agreements that are entered into with municipalities are either funded under the Division of Revenue Act (DoRA) or under the Eskom rebate programme. We will honour all agreements for the funding of the Solar Water Heating under the DoRA. Where Eskom has entered into agreements to fund the Solar Water Heating at municipalities, under the rebate programme, there are funding difficulties. Eskom has advised all services providers to scale back on their rollout programme for the financial year, until the funding issue is resolved.

QUESTION: 1530.

Mr S C Motau (DA) to ask the Minister of Energy:

(1) Whether work has started on the construction of a certain planned oil Mthombo crude oil refinery at Coega in the Eastern Cape; if not, (a) why not and (b) what is being done to get the project off the ground; if so, when did the work start;

(2) whether the dismissal of the former chief executive officer, Mr. Sipho Mkhize has anything to do with the lack of progress; if not, what is the position in this regard; if so, what are the relevant details;

(3) whether the project was put out to tender; if not, why not; if so, (a) to which company was the tender awarded, (b) what is the capital cost of this project and (c) how is it being financed? NW1695E

REPLY

(1) No. The work on the construction of Project Mthombo has not yet started. A lot of planning has been done, however PetroSA's Board has directed that management consider and address the issues, such as the size of the refinery, that were raised in relation to the project during engagement consultations in 2010.

(2) No

(3) No. The project has not yet been put out to tender because of reason given in response to Question 1 above.

QUESTION 1511

Mr L W Greyling (ID) to ask the Minister of Energy:

(1) How many solar heaters have been installed as a result of the Eskom rebate programme;

(2) Whether there are funds in the Eskom Solar Water Heater Programme to fund the Government's target of 1 million solar water heaters fully within five years; if not,

(3) Whether additional funds will be made available to meet this target; if not, why not; if so, what are the relevant details;

(4) whether any other (a) programmes are currently being devised and (b) funds being made available to reach the Government's target of 1 million solar water heaters; if not, why not; if so, what are the relevant details? NW1675E

REPLY

1) As at 07 June 2011, 109 425 solar water heaters (SWHs) have been installed.

2) There are funds in the Eskom SWH programme to contribute towards the Government's target of 1 million SWHs but this will not cover the full costs of this target. On 24 February 2010, the National Energy Regulator of South Africa (NERSA) approved an allocation of R5.445 billion of which R1.15bn is for solar water heating, to be raised through the electricity tariff between 01 April 2010 and 31 March 2013. Solar water heating is therefore one of the interventions funded through this allocation.

3) Yes. To address the challenges associated with financing the Solar Water Heating programme, the new Standard Offer incentive scheme that will fund Solar Water Heaters has been developed. A funding model for this tariff funded scheme has been finalised, and through engagements with NERSA and Eskom, the department is working on its implementation.

4) (a) Yes there are programmes under development which will be linked to the Standard Offer incentive scheme. This Standard Offer will provide a tariff based incentive to facilitate the implementation of the insurance geyser replacement programme; corporate social responsibility initiatives as well as employee programmes. In addition, a small yet significant contribution is expected from Donor funded programmes.

(b) Not all programmes require government funding. For example, over and above the aforementioned programmes, the New Building Regulations that are being finalised by the Department of Trade and Industry (DTI) will contribute substantially towards the delivery of SWHs and other energy saving water heating technologies for new dwellings.

QUESTION: 1502

Mrs C Dudley (ACDP) to ask the Minister of Energy:

What is her department's state of readiness to deal with the effects of (a) an earthquake, (b) a tsunami and (c) a radiation leakage in light of the recent increase in earthquakes worldwide and the fact that the Koeberg Nuclear Power Station is situated alongside the Milnerton fault line? NW1535E

REPLY

The following measures are in place:

• Koeberg is designed to withstand an earthquake of level 7 on Richter Scale

• The Koeberg terrace height is 8 metre above mean sea level,

• Koeberg is supplied from four 400 kV lines and one 132 kV line connected to the national grid.

• If there is a problem with this supply from the national grid, a dedicated power station is available

• Additional backup generators are on site

• It is equipped to facilitate the addition of cooling water to spent fuel pools and containment buildings should it be required.

• An emergency plan is in place. It has been tested and found to be adequate

QUESTION 1463

Mr SJF Marais (DA) to ask the Minister of Energy

(a) On how many occasions since 1 March 2010 did his office hire a vehicle to transport (i) him and (ii) his Deputy Minister and (b) in each case, (i) what was the cost of hiring the vehicle, (ii) for what reason was the vehicle hired, (iii) for how many days, (iv) what (aa) make and (bb) model of vehicle was hired and (v) what total distance was travelled? NW1630E

REPLY

The Ministerial Handbook Chapter 5 on Official vehicles states that "Members at a national level may be provided with one vehicle for use in Cape Town and one vehicle for use in Pretoria". It further provides for "Use of Incidental Vehicles for official purposes away from respected seats of office". Members are allowed to make use of incidental or rented vehicles when on official duty. The rented vehicles should be vehicles befitting for Ministerial use and in these instances the vehicles hired have been various makes and models.

In such cases the Handbook allows the cost of incidental / rented vehicles for official use to be borne by the relevant department.

These hired cars are used on official duty for direct interaction with communities and stakeholders outside Gauteng and Cape Town as a critical part of the Public Participation programmes of Ministers. These enable Ministers to fulfill their duties and meet their ever demanding schedules. The department has hired 56 times for both Minister and Deputy Minister during the time under review.

QUESTION 1417

Mrs C Dudley (ACDP) to ask the Minister of Energy:

1) Whether, in light of the recent disaster in Japan, Cabinet has taken a decision on the pursuit of electricity production by means of nuclear energy; if not, what is the position in this regard; if so, what are the relevant details;

2) Whether he has considered economic, health and safety grounds in taking this decision; if not, why not; if so, what are the relevant details? NW1531E

REPLY

1) Cabinet was apprised of the situation on Fukushima and the decision to approve the IRP2010 considered the Fukushima accident. The reasons for the energy mix as proposed in the IRP2010 have not changed due to the unfortunate accident at the Fukushima Nuclear Power Plants. The energy mix is balanced considering different factors such as the need to reduce our carbon foot print and provision of reliable and affordable electricity services to run the economy. However, the country will not ignore the lessons to be learned from this event. South Africa will continue to follow the developments in this regard and participate in different forums established to look into the accident and the subsequent response actions.

2) Yes, nuclear energy provides the most reliable base-load power after coal. The design of reactors is the cornerstone of nuclear safety, with consistent application of the defense-in depth principles, and the nuclear industry is one of the most regulated as far as safety is concerned. There is no intention to change the position in the future. The International Atomic Energy Agency (IAEA) through its conventions such as Convention on Nuclear Safety, Joint Convention, and Convention on Early Notification and Assistance Convention ensure nuclear safety, safety of spent fuel management and radioactive waste management worldwide and make provision for assistance in the case of a nuclear accident. South Africa is a member of the IAEA and a contracting party to these conventions. Safety features of reactors have continued to evolve towards design basis which have more inherent safety features. The National Nuclear Regulator is entrusted with the protection of persons, property and the environment from effects of nuclear damage. The NNR, as the nuclear safety authority responsible for the siting, design, construction, operation, manufacture of component parts and decontamination, decommissioning and closure of nuclear installations will therefore license future nuclear power plants.

QUESTION: 1416

Mrs C Dudley (ACDP) to ask the Minister of Energy:

(1) Whether in light of the recent catastrophe at Fukushima Dai-Chi power station she has reconsidered the benefits of nuclear energy as a reliable and safe form of electricity production; if not, why not; if so, what are the relevant details;

(2) whether she has (a) reconsidered the cost-benefit analysis and (b) obtained reliable and dependable figures for capital and operational costs for existing and pending nuclear power stations; if not, why not; if so, what are the relevant details? NW1524E

REPLY

1. The benefits of nuclear energy have not been reconsidered. The reasons for the energy mix as proposed in the IRP2010 have not changed due to the unfortunate accident at the Fukushima Nuclear Power Plants. The energy mix is balanced considering different factors such as the need to reduce our carbon foot print and provision of reliable & affordable electricity services to run the economy. However, the country will not ignore the lessons to be learned from this event. South Africa will continue to follow the developments in this regard and participate in different forums established to look into the accident and the subsequent response actions.

2. The cost has not been reconsidered at this stage as we have used the latest data available for estimation of capital cost, and even increased this by 40% in the IRP as a contingency. The data used is the best available and takes into account all other sources of data submitted during the IRP process. These are available on our website. The direct benefits of electricity supply are independent of its energy source.

QUESTION: 1411

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

1) Whether there has been any (a) alleged terrorist attack and (b) breaches of security at the Pelindaba Nuclear Research facility in the past five years; if so, (i) when did each attack/breach of security take place and (ii) what are the further relevant details;

2) Whether any nuclear/radioactive material was unaccounted for after these incidents; if not, what is the position in this regard; if so, (a) what types of material and (b) what action was taken to recover these materials;

3) whether these materials have been recovered; if not, why not; if so, what are the relevant details with regard to the (a) recovery process and (b) suspects;

4) Whether the United States of America offered to send troops to protect and secure this National Key Point Site at Pelindaba as a result of these incidents; if so, (a) when and (b) what was the Government's response to this offer? NW1579E

REPLY

1) A Security breach occurred at Necsa's Pelindaba site at 00:16 on 08 November 2007. This event was widely reported in the media and about a year later was the subject of an episode of the CBS television programme "60 minutes". The details of the event were as follows:

Four individuals entered the Necsa site at Pelindaba by cutting the perimeter fence. Their modus operandi implied prior knowledge of electronic security systems. The intruders broke into a garage housing a fire engine and removed one of the ladders from the fire engine. They then gained access to the first floor of a building next to the garage through a window. While the intruders were in the building, they encountered two Necsa staff members on night duty. They attacked one of these staff members, who resisted and suffered a gunshot wound. The intruders fled the Necsa site via the same route they entered. Necsa security, assisted by the SAPS, were unable to locate the intruders, after being alerted by the two staff members.

It is not known what the motives of the intruders were, since they have not been apprehended by the SAPS. However, since they stole the cell phones of the two Necsa employees and attempted to remove a computer (which contained no sensitive information), it is more than likely that they were criminals as opposed to terrorists.

After the breach, the security at Necsa was significantly upgraded. Three independent security evaluations, by the IAEA, by the NNR and the SAPS have been conducted, all with positive conclusions.

2) No radioactive material was unaccounted for after the incident.

3) See the response to question 2.

4) Such an offer was indeed received by the former Department of Foreign Affairs. The offer was declined because the proposed intervention was unnecessary. No South African troops were deployed at Pelindaba either.

QUESTION: 1376

Mrs C Dudley (ACDP) to ask the Minister of Energy:

1) In the light of the commitment to a nuclear fleet, what are the cost implications of the entire nuclear cycle of (a)(i) uranium mining, (ii) processing, (iii) nuclear enrichment and (iv) fuel fabrication, (b)(i) constructing six reactors at the coast and (ii) operating the specified reactors for 30 years, (c) constructing (i) transmission lines and (ii) transport infrastructure, (d) waste (i) handling and (ii) management and (e) decommissioning;

(2) whether she intends releasing a reconsideration report containing the aforementioned statistics; if not, why not; if so, when? NW1523E

REPLY

1) (a) The cost of uranium mining, processing, enrichment and fuel fabrication amounts to about ZAR67/MWh. More details are available in the Electric Power Research Institute report that was used for the IRP. This compares well with estimates in the OECD studies. Both of these are reliable sources of data. Current estimates show that the cost of acquiring these facilities to enable beneficiation through local industry development, from mining to fuel fabrication, amounts to around R20billion, which includes the capacity to export. It must be noted that this does not impact the levelised cost of nuclear electricity by more than 1% for the 10GWe case.

(b) The cost of building all the nuclear power plants are documented in the IRP report and supporting documents, together with a detailed breakdown of all aspects.

(i) Constructing reactors at the coast – ZAR 250 to 350 billion or 53 to 63 c/kWh

(ii) Operation and Maintenance for 60 years ZAR 95 to 118 per MWh or 10 to 12 c/kWh

(iii) Fuel cost ZAR67/MWh or 6.7c/kWh – Which includes cost of waste management.

(ii) Transport infrastructure – It is safe to assume that this would not be a significant cost as compared to the major costs above.

(d) Waste management and handling ( included in fuel cost above – 17c/kWh)

(e) Decommissioning and dismantling ZAR 38 to 53 billion, or 1 to 2c/kWh

2) These figures are in the IPR 2010 as gazetted.

QUESTION 1319

Dr S M van Dyk (DA) to ask the Minister of Energy:

(1) Whether all spent nuclear fuel is kept on the premises at the Koeberg nuclear power station; if so, why;

(2) Whether the special pond used to store the spent fuel has reached its capacity; if so, (a) what plans are in place to accommodate the excess fuel and (b) how will this problem be solved permanently;

(3) Whether there are any measures in place to dispose of the spent fuel in this pond; if not, why not; if so, (a) what measures and (b) what are the further relevant details? NW1462E

REPLY

(1) All of Eskom's used nuclear fuel is currently stored in the Koeberg Nuclear Power Station (KNPS) used fuel pools and in the four dry storage casks which are located in the cask storage building at KNPS onsite. The storage of the used nuclear fuel at KNPS is licensed by the National Nuclear Regulator (NNR). Fuel is kept in licensed fuel storage pools which are built as part of the reactor facilities. There is no approved off site facility for storage of used nuclear fuel.

(2) (a) The used fuel pools at KNPS have not reached capacity.

(b) The Radioactive Waste Management Policy of 2005 has outlined the following options for used nuclear fuel for further investigations:

· Long term above ground storage on an off-site facility

· Reprocessing, Conditioning and recycling

· Deep geological storage

The National Radioactive Waste Disposal Institute will manage radioactive waste on a national basis. This Institute is currently being established.

(3) There are no immediate plans to dispose of the used fuel. That decision will be taken after processes outlined in (2) above have been completed.

QUESTION 1318

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

(1) Whether an environmental impact assessment is done on all locations to where radioactive or nuclear goods are transported and where it is stored; if not, why not; if so, what are the relevant details;

(2) whether there is a transport safety plan in place when such material is being transported over (a) land, (b) sea or (c) air; if not, why not; if so, what are the relevant details in each case;

(3) what precautionary measures does her department have in place in the event of a fleet transporting such material making an accident in an area not geared to manage such an incident or nuclear leak? NW1461E

REPLY

(1) Environmental impact assessments are required and undertaken for storage facilities for nuclear materials and radioactive waste. The EIA is done in terms of the EIA regulations promulgated under the National Environmental Management Act.

(2) In terms of the Regulations on Safety Standards and Regulatory Practises (R.388 of 26 April 2006) transport of radioactive material must be carried out in accordance with the IAEA Regulations for Safe Transport of Radioactive Material. The IAEA Regulations for Safe Transport of Radioactive Material are the world standard for transportation of nuclear materials by land, sea and air.

(3) The transport plan covers physical security and emergency response plan. The primary responsibility for safe transport of materials lies with the owner of the materials. Therefore as part of the planning, standard precautionary measures are taken to limit chances of accidents (e.g. materials packaging, containment, monitoring and surveillance, and speed of vehicle). However should the need arise, a national radiological emergency response team comprising DoE, National Nuclear Regulator and Necsa is already established. This team liaises with relevant entities in the transport environment, e.g. ACSA, SARS, Maritime Safety etc.

QUESTION 1316

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

1) Whether she intends adding any extra power supply that is generated by the Pelindaba power station to the national grid if the power station runs at its optimal capacity; if not, why not; if so, what are the relevant details;

2) Whether she intends entering into a power purchase agreement with the South African Nuclear Energy Corporation (Necsa) in terms of which the Pelindaba power station is required to supply power during the peak demand period until the national grid has stabilised; if not, why not; if so, how (a) much power is envisaged to be added to the national grid, (b) will this agreement secure the supply of energy, (c) much power can Pelindaba power station generate and (d) much electricity is required daily to enrich the uranium supply for medical and other uses;

3) Whether Pelindaba power station has become obsolete after discontinuing the Pebble Bed Modular Reactor project; if not, what is the position in this regard; if so, what are the relevant details? NW1459E

REPLY

1) The reactor at Pelindaba is a Materials Test Reactor (MTR). It is not an electricity generating reactor but it is used for research and irradiation services and as a result is does not provide any power to the grid.

2) There is no intention to enter into a power purchase agreement with Necsa.

3) The research reactor at Necsa has not become obsolete. It continues to be used for research and irradiation services.

QUESTION 1310:

Dr S M van Dyk (DA) to ask the Minister of Energy:

What is the total loss in energy that resulted from the recent explosion at the Duvha-More power station? NW1453E

REPLY

The turbine, generator and associated components of Unit 4 of Eskom's Duvha Power stations were damaged at approximately 22h00 on 9February 2011 during the course of a routine turbine over-speed statutory test.

There was no explosion.

When operating at full power, Duvha Unit 4 supplies 575MW of electricity to the national grid. This is approximately 1.4%of Eskom's total net supply.

In terms of energy, at a typical load factor of 80%, this equates to approximately 4000 Gigawatt hours (GWh) per year (1.6% of the projected energy demand for FY2011-2012).

QUESTION:1260

Dr S M van Dyk (DA) to ask the Minister of Energy:

1. Whether the recent explosion at the Duvha-More power station was a result of (a) a backlog in service or (b) negligence during a routine inspection of the turbines warning system; if not, what is the reason for the explosion; if so, what are the relevant details;

2. Why did neither Eskom nor her department brief Parliament on this incident;

3. Whether there are three independent warning systems that shut down the turbine if it functions abnormally; if not, why not; if so, why did these systems not function correctly in order to prevent the explosion;

4. Whether the fourth safety measure, a manual trip switch, was unmanned during the time of the incident; if not, how was this conclusion reached; if so, what are the relevant details? NW1406E

REPLY

1. (a)(b) The turbine, generator and associated components of Unit 4 of Eskom's Duvha Power stations were damaged at approximately 22h00 on 9February 2011 during the course of a routine statutory test. There was no explosion. A full investigation into the incident has been initiated and once the investigation has been completed, the details of the sequence and the direct and root causes of the incident will be well known. The report is anticipated to be completed and submitted to Eskom by end of May 2011. Upon receipt of the report, Eskom will follow its normal processes of reviewing the report and subsequently communicate the findings thereof.

2. Soon after the incident, Eskom informed the Minister of Public Enterprise, the Chairperson of the Portfolio of Public Enterprises, and NERSA through the briefing notes. The public was informed through the release of a media statement.

3 & 4

There are a number of mechanical and electronic protection systems that would shut down the turbine if it functions abnormally. However, with regards to the specific questions raised, once the investigation has been completed we will be in a position to respond comprehensively to the question. The awaited report will provide the details of the sequence of events, the functioning of the various protection systems, the manning of the unit and any direct or root causes of the incident.

QUESTION 1259

Mr E J Marais (DA) to ask the Minister of Energy

With regard to the human resource information given in the 2009-10 Annual Report of the Petroleum Agency of South Africa (PASA), (a) what is the employment equity profile of PASA, (b) what is the number of (i) funded and (ii) vacant positions, (c) when does PASA intend to fill the vacant positions and (d) what initiatives does PASA take to empower its personnel?

REPLY

(a) The employment equity profile as at 30 March 2010 was 87% black employees and 13% white employees

(b) (i) The funded positions as at 30 March 2010 were 67;

(ii) there were 9 vacancies at the time.

(c) The vacant positions were filled during the 2010/11 financial year. As at 30 April 2011 there are only two vacancies.

(d) The employees are empowered through continuous training and development, support for relevant private studies and attendance of conferences and exhibitions.

QUESTION 1185

Dr S M van Dyk (DA) to ask the Minister of Energy:

With reference to the 49m electricity savings initiative that is aimed at registered electricity consumers, what measures will Eskom implement to clamp-down on illegal electricity consumers and bring about further electricity savings? NW1320E

REPLY

With regard to curbing illegal electricity use, Eskom launched an Energy Losses Management Programme (ELM), which is in line with NERSA regulations. Currently, Eskom complies with NERSA's requirements and aim to significantly reduce energy losses. The ELM programme has various aspects:-

a) Monitoring of installed meters for tampering, assessing levels of leakage and where these are found, fixing the problem;

b) Installation of tamper proof technology (e.g. secure enclosures with prepaid meters inside);

c) Rolling out a public awareness campaign called Operation Khanyisa which is aimed at behavioural change in the following areas: creating a culture of legal electricity use, improving on communities' reporting on illegal connections; reduction of theft of infrastructure; educating the public on energy efficiency; and educating the public on safety awareness. The campaign is a joint effort between Eskom, various arms of government, formal business and affected communities; and

d) Efforts of strengthening the legal framework to assist in the prosecution of electricity theft.

QUESTION 1164

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

With reference to nuclear leakages at nuclear reactors in Japan (details furnished) after it was hit by an earthquake and tsunami, how will any future natural or man-made disaster affect the implementation of the second Integrated Resource Plan (IRP2010) (a) regarding (i) the energy mix for the next two decades, including and (ii) the use of nuclear energy and (b)(i) all safety aspects related to future nuclear plants and (ii) the safety aspects regarding the Koeberg nuclear plant? NW1287E

REPLY

(a) (i) The underlying basis for the energy mix as proposed in the IRP2010 has not changed due to the unfortunate accident at the Fukushima Nuclear Power Plants. The energy mix is balanced considering different factors such as the need to reduce our carbon foot print and provision of reliable and affordable electricity services to run the economy.

(ii) Nuclear energy provides the most reliable base-load power after coal. South Africa is yet to reach universal access to electricity services. In order to achieve this milestone and to provide the necessary power to support economic development, we will need to build more base-load power stations.

(b) (i) All Safety Aspects Related to Future Nuclear Power Plant.

The design of reactors is the cornerstone of nuclear safety, with consistent application of the defense-in depth principles, and the nuclear industry is one of the most regulated as far as safety is concerned. The International Atomic Energy Agency (IAEA) through its conventions such as Convention on Nuclear Safety, Joint Convention, and Convention on Early Notification and Assistance Convention ensure nuclear safety, safety of spent fuel management and radioactive waste management worldwide and make provision for assistance in the case of a nuclear accident. South Africa is a member of the IAEA and a contracting party to these conventions. Safety features of reactors have continued to evolve towards designs basis which have more inherent safety features. The National Nuclear Regulator (NNR) is entrusted with the protection of persons, property and the environment from effects of nuclear damage. The NNR, as the nuclear safety authority responsible for the siting, design, construction, operation, manufacture of component parts and decontamination, decommissioning and closure of nuclear installations will therefore license future nuclear power plants.

(ii) Safety Aspect Regarding Koeberg NPP

Koeberg, as originally designed and subsequently modified by Eskom, is in line with modern international safety standards.

Following the accident at Fukushima, Eskom performed the necessary tests to verify the capability of all equipment required to respond to severe and beyond design basis accidents.

• Koeberg is designed to withstand an earthquake of level 7 on Richter Scale

• The Koeberg terrace height is 8 metre above mean sea level,

• Koeberg is supplied from four 400 kV lines and one 132 kV line connected to the national grid.

• If there is a problem with this supply from the national grid, a dedicated power station is available

• Additional backup generators are on site

• Equipped with external piping connections to the spent fuel pools and containment buildings to facilitate the addition of cooling water should it be required.

• Plant hydrogen recombiner modified to prevent a hydrogen explosion

• Emergency plan is in place. It has been tested and found to be adequate

QUESTION: 1159

1159 Mr P D Dexter (Cope) to ask the Minister of Energy:

(1) Whether she has prioritised the development of renewable and clean energy as outlined in the Government's New Growth Path policy and her department's Energy strategic plan; if not, why not; jf so,

(2). Whether the development of renewable and clean energy is the priority of Eskom; if so, what are the relevant details; if not, why is Eskom not seized with the development of renewable energy generation capacity rather than coal and nuclear powered energy generation;

(3). whether any other Government entity will lead the development of renewable and clean energy; if so, which entity; if not, why not

(4) Whether the Government will rely on the private sector for the development of renewable and clean energy; if so, what does this mean for the role of the developmental state? NW1282E

REPLY

(1) Yes, the recently promulgated IRP 2010 sets a massive target of 42 per cent contribution by Renewable Energy towards the new electricity generation mix.

(2) Eskom as a state owned utility is guided by the overall government priorities. Government is committed to the development of renewable energy which is evidenced through the REFIT programme. The approved IRP 2010 reaffirms government commitment to the diversification of the country's energy mix, and Eskom as the state owned utility will play a crucial role in the achievement of these goals.

(3) The Department of Energy will lead the development of renewable energy. State agencies such as CEF (Pty) ltd, the South African National Energy Development Institute and the Industrial Development Corporation all partake fully in the development of the renewable and clean energy industry in South Africa.

(4) The government will work in partnership with the private sector to develop renewable energy sources in South Africa. In its role, the department will ensure that the policies and legislative measures are attractive and conducive to private sector participation. For Instance, the work that is currently being undertaken for the Solar Park ensures that government leads by providing appropriate and common infrastructure while private investors will be responsible for the costs of their own plants and technologies therein. The REFIT is also meant to provide a financial incentive to private sector investors. As indicated above state owned entities will also play an important role as is usually the case in developmental states.

QUESTION 1177

Dr. C.P. Mulder (FF Plus) to ask the Minister of Energy:

1. What is the tariff per kilowatt-hour at which (a) Zimbabwe, (b) Botswana, (c) Swaziland, (d) Lesotho,(e) Namibia and (f) Mozambique currently purchase electricity from South Africa;

2. (a) since what date have these countries been paying the currently tariffs and (b) when will the next increase in the tariff at which electricity is purchased by these countries come into force;

3. Why (a) has the rate at which these countries are purchasing their electricity been set at this tariff and (b) does it differ from the tariff being paid by South African families? NW1311E

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 1098

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

(1) Whether, with reference to her reply to question 1111 on 21 May 2010, Eskom is selling any electricity to other countries; if so, (a) to which country and (b) at which price for each country;

(2) Whether, since her reply to question 1111 on 21 May 2010, Eskom provided any special rate for electricity sold to Motraco in Mozambique; if so, (a) at what rate and (b) what are the further relevant details;

(3) Whether Eskom imports any electricity; if so, (a) from whom, (b) from which country and (c) at what price? NW1220E

REPLY

The price charged for electricity is commercially sensitive information for Eskom's customers. Eskom is therefore obliged to treat customer information in the strictest confidence and is therefore not in a position to disclose this information publicly.

1(a) and (b)

Eskom sells electricity to the following countries: Botswana (BPC); Namibia(NamPower); Lesotho (LEC); Swaziland(SEC); Zambia(ZESCO) and Mozambique(EDM). The prices to these utilities are individually negotiated using standard megaflex tariff as a basis with an appropriate premium. Escalation on these prices is in line with the NERSA approved increase. The end user customer prices vary from standard tariffs to renegotiated rates. The specific prices however cannot be disclosed for reasons outlined above.

2(a) and (b)

Eskom and BHP Billiton entered into a renegotiation of the pricing terms applicable to Motraco. As was announced at the time, these negotiations were concluded and a new pricing regime and escalation mechanism came into effect from 31 March 2010. For reasons indicated above as well as the confidentiality clauses in the agreement, Eskom is not in a position to disclose the new rates publicly.

3(a) (b) and (c)

Eskom purchased electricity during 2010/11, predominantly from Cahora Bassa in Mozambique, with some small volumes from Zambia (ZESCO) and Lesotho (LEC). Similar confidentiality requirements as reflected above are applicable.

QUESTION 1097

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

(1) Whether she has been informed of the annual World Association of Nuclear Operations (WANO) report on safety and security management of various nuclear power plants around the world; if so,

(2) Whether she will make the reports available with regard to the Koeberg Power Station for the past 10 years; if not, why not; if so, when;

(3) Whether the reports have been found to be satisfactory; if not, which aspects are of concern; if so, what are the relevant details? NW1219E

REPLY

(1) My department is aware that WANO issues reports regularly. WANO is a voluntary organisation of the Worlds' Nuclear Power Plant Operators.

(2) Eskom is a member of WANO and is under no obligation to submit the reports to the Minister of Energy. The aim of WANO is to maximise the safety and reliability of nuclear power plants worldwide by working together to assess, benchmark and improve performance through mutual support, exchange of information and emulation of best practices. WANO is not only focussed on safety and does not purport to replace regulators.

(3) The Parliament of South Africa established the National Nuclear Regulator of South Africa, which is the regulator that informs the Minister and the public of South Africa about safety matters of Koeberg. The NNR submits annual reports and these are duly tabled in Parliament. It is the reports of this regulator that can pronounce on the safety matters at Koeberg Power Station. The NNR reports have in the main found safety situation at Koeberg to be acceptable.

Question 1083
Adv. A. De W Alberts to ask the Minister of Energy:

(1) Whether any personnel employed by the African Exploration Mining and Finance Corporation (AEMFC) were appointed by way of the services of labour brokers; if not; what process was followed in appointing personnel at these state mining company; if so; how many and (ii) which labour broker were used;

(2) what is the racial composition of AEMFC (a) in total and (b) in each post level for this company;

(3) (a) for which (i) prospecting and (ii) mining rights have AEMFC applied respectively and (b) which application for (i) prospecting and (ii) mining rights have (aa) been approved and (bb) not yet been finalised;

(4) (a) who are the directors of AEMFC respectively and (b)(i) how many of them are foreigners and (ii) what are their names in each case;

(5) what are the salaries, including all perks, of each of the director of AEMFC; NW1204E

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 Mineral Resources.

QUESTION: 1066
1066: Mrs S V Kalyan (DA) to ask the Minister of Energy:

(a) For what purpose did the SA Nuclear Energy Corporation Ltd (Sanec) contract the services of a certain company (name furnished), (b)(i) what was the starting date of their commission to perform the specified role and
(ii) until what date will they perform this role and (c) what is the value of the contract? NWI184B

Reply

a) One of the statutory objectives of the SA Nuclear Energy Corporation (Necsa), alongside undertaking nuclear research and commercializing the outputs of this research, is to make the results of nuclear research "generally known". In support of this objective, and after numerous requests from the Portfolio Committee on Energy, Necsa has begun a broad public campaign to promote the public understanding of nuclear technology. This campaign is rooted in Necsa's new Visitor Centre, which incorporates interactive displays of an educational nature and is particularly aimed at the youth. Ultimately the Visitor Centre will be augmented by a science laboratory that win support schools in the region. In this context, Necsa issued a tender for a service provider to undertake a public outreach campaign. This campaign incorporates print, radio and other media and is transmitted at the level of popular culture. It also involves visiting local schools and communities to promote knowledge of nuclear issues and technologies. Radio clips are ill several South African languages. Saatchi and Saatchi won the tender for the public outreach campaign.

b) (i) Saatchi and Saatchi began work on 1 February 201land (ii) will continue for 12 months from this date.

c) The value of the contract is R4 million. The costs are being shared between Necsa and its commercial subsidiary NTP Radioisotopes (Pty) Ltd.

QUESTION 1002
1002. Mr L S Ngonyama (Cope) to ask the Minister of Energy:

Whether the nuclear energy agreement signed with France has any effect on our future energy needs: If not, why not; if so, what are the relevant details? NW1123E

REPLY

There was no recent Nuclear Energy Agreement signed between South Africa and France. The last agreement was signed in 1996, and is currently under review.

During the recent state visit to France, our state owned entity, South African Nuclear Energy Corporation (Necsa) signed two Letters of Intent (LOIs) with counterpart French organizations.

· The LOI with the Atomic Energy Commission of France, essentially a government, funded research body, covers Joint co-operation in a number of research areas, including High Performance Computing and nuclear waste management, as well as the promotion of public understanding of nuclear technology. The title of this LOI is: Joint letter of intent to implement the cooperation agreement between the Commissariat A L'Energie Atomique El Aux Energies and the South African Nuclear Energy Corporation (Necsa) in the field of nuclear science and technology for peaceful uses of nuclear energy.

· The LOl with Areva, a commercial nuclear vendor, covers several aspects of nuclear fuel, as well as the training of South Africans in various aspects of the nuclear industry. The Areva LOI gives extension to the existing Arecsa (pty) Ltd Joint venture (from the 2008 Memorandum of Understanding between Necsa and Areva), which utilizes National Industrial Participation Programme offset requirements to fund training on nuclear skills. The tittle of this LOI is: Joint letter of intent between Areva and the South African Nuclear Energy Corporation (Necsa) regarding extension of the duration of and further Implementing the memoranda of understanding signed in Pretoria on 28 February 2008

Eskom also signed a Memorandum of Understanding (MoU) with French counterpart EOF on the foundation for the establishment of the ESKOM Power Plant Engineering Institute {EPPEI}, which does not include nuclear power plants. It focuses primarily on training of South African engineers on other power plants, such as thermal and renewables.

The Ministers of Energy (France and South Africa) also signed the 2011 Roadmap on Institutional Cooperation on Energy between South Africa and France. In terms of nuclear, it provides a framework for.

· Finalizing the review of the previous (1996) Agreement on the Development and Application of Nuclear Energy for Peaceful Purposes;

· Exploring the option of Intergovernmental agreements on spent fuel management;

· Continuing the good cooperation between the nuclear safety authorities of South Africa and France; and

· Implementing the Agreement on Nuclear Research and Development between Necsa and its counterpart CEA.

Since the Letters of Intent, MoU and Roadmap signed do not commit to procurement of a nuclear energy system, it cannot have any direct effect on our future energy needs with respect to Nuclear Energy. Indirect effects from research, collaboration, and skills development will assist South Africa in:

· increasing localisation potential of our energy industry,

· reducing timescales and mitigation of risk for Implementing waste solutions for current and future nuclear energy systems, and

· Improving regulatory compliance and oversight on nuclear safety.

QUESTION 997

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

Whether her department has ensured that the National Energy Regulator of SA (Nersa) had fully complied with all relevant rules and regulations of the Public Finance Management Act, Act 1 of 1999, in its tender awards for maintenance work to be done on the country's gas pipeline network; if not, why not; if so, what are the relevant details? NW1115E

REPLY

The bid that was advertised by NERSA was for a study to be conducted on the integrity of South African gas infrastructure and not the maintenance on the country's gas pipeline network. The bid was advertised on the 11 February 2011 in the government tender bulletin, Sunday Times, Sowetan and Business Day and closed on the 3 March 2011. The bid was evaluated on 08 March 2011 and awarded on 31 March 2011 by the Bid Adjudication Committee of NERSA. The bid complied with the Treasury Regulations 2005 issued in terms of the Public Finance Management Act, Act 1 of 1999, and the Supply Chain Management prescripts and policy of NERSA.

QUESTION 881.

Mr L W Greyling (ID) to ask the Minister of Energy:

(1) Whether the state-owned mining company is involved in a coal-to-liquids project; if so, what national strategic objectives are being pursued by its involvement in such a project;

(2) whether an environmental management report has been done for this project; if not, why not; if so, what will the projected greenhouse gas emissions be from this plant? NW962E

REPLY

1. The state-owned mining company is not involved in a coal-to-liquids (CTL) project. However, nothing precludes it from mining and supplying coal as feedstock to a CTL facility or participating in a future CTL project.

2. There is no environmental management report as there is no CTL project being undertaken by the state-owned mining company.

QUESTION 814
Mr S J F Marais (DA) to ask the Minister of Energy:

Whether (a) her department or (b) any of its affiliated entities have purchased any tickets for the ICC Cricket World Cup 2011; if not, why not; if so, (i) what process has been followed to purchase these tickets, (ii) how many tickets have been purchased. (iii for which matches, (Iv) what has been the total cost of these tickets, (v) what are the reasons for purchasing these tickets. (vi) to whom will each of these tickets be allocated and (vii) on what was the decision for the allocation of these tickets based? NW886E

REPLY

(a) No

(b) No

I.N/A

II.N/A

III.N/A

IV.N/A

V.N/A

VI.N/A

VII.N/A

QUESTION: 734
734.Mr P D Dexter (Cope) to ask the Minister of Energy:

Whether, with reference to the President's request in his State of the Nation address that households should contribute to saving electricity, her department has conducted any study to quantify the effective saving in electricity and money when specified numbers of households turn off hot water cylinders and lights for specified periods; if not, why not, if so, what are the relevant details?Nw803E

REPLY

No, the Department has not conducted any specific study to quantify the savings. However, since the power constraints of 2007, Eskom commissioned an energy service company to run a continuous electricity consumption monitoring and simulation programme. The company provides reports two months in arrears where the figures for March will only be available in June. The latest figures are for January in the Residential Sector. These show a 1,4% reduction in electricity consumption as against the forecast estimate. As far as we are aware, Eskom has not been able to disaggregate the savings due to hot water and lighting specifically

QUESTION 684
Mr S C Motau (DA) to ask the Minister of Energy:

(1) Whether, with reference to her reply to question 875 on 29 April 2010, Eskom has informed her of the decision regarding the town of Thyspunt in the Eastern Cape being used as the site for Eskom's planned pressurised water reactor (PWR); if so, what are the relevant details; if not,

(2) whether any other site has been (a) proposed, (b) considered and (c) chosen; if not, why not, in each case; if so, which site in each case;

(3) whether she has been informed of stakeholders who claim that Thyspunt has been selected and is being prepared as a site; if so, what will she tell such stakeholders in order to clarify the situation; if not,

(4) whether she will (a) investigate these claims and (b) address the stakeholders in order to clarify the situation? NW734E

REPLY

(1) Eskom has published its request for authorisation to site a nuclear power plant at Thyspunt. This was done through the draft Environmental Impact Report 01 the Nuclear-1 Environmental Impact Assessment (EIA), submitted in February 2010. No decision has been communicated.

(2) a. During the EIA process Eskom proposed several sites - namely Thyspunt in the Eastern Cape, Bantamsklip in the Western Cape. Duynefontein next to Koeberg, Schulpfontein and Brazil on the Northern Cape Coast.

b. During the EIA process Eskom considered the five sites - namely Thyspunt in the Eastern Cape, Bantamsklip in the Western Cape, Duynefontein next to Koeberg, Schulpfontein and Brazil on the Northern Cape Coast.

c. No final site has been chosen but Eskom selected the Thyspunt site for a full EIA and the reasons are given in the EIA documentation available on the Eskom website. To quote, the factors selected as most Important are:

· Transmission integration factors;

· Seismic suitability of the sites;'

· Impacts on dune geomorphology;

· Impacts on wetlands;

· Impacts on vertebrate fauna;

· Impacts on invertebrate fauna; and

· Economic impacts.

(3) I have been informed of the stakeholders who claim that the Thyspunt site has been selected. Officials from my Department were at the Thyspunt site and neighbouring St Francis Bay with the Select Committee on Economic Development on 22 February 2011. The message was clearly delivered that the draft Integrated Resource Plan has not been approved yet and therefore no decision from Government has been made regarding a nuclear procurement go-ahead and no decision on the Thyspunt site has been made as well.

(4). a. No investigation is necessary as no record of decision has been issued by the Department of Environmental Affairs on the Eskom EIA.

b. As part of our public engagement programme, the communities living around existing nuclear installations sites are engaged on different matters. The same will be true for communities living around prospective sites for nuclear installations.

QUESTION: 671
671:M Swart (DA) to ask the Minister of Energy

Whether, In light of the fact that electrical restructuring by way of regional electricity will no longer take place, the offices of a certain company (name furnished) (a) has been closed down entirely. (b) the staff retrenched and (c) rental agreements cancelled; it not, why not, if so, (what was the total cost of the said actions and (ii) what are the further relevant details?

REPLY

(a) No. Due Date 31/03/ 2010

(b) No. All Staff are on Fixed- Term Employment Contracts.

(c) (i) No. There is a process in place of the Winding-up, Inclusive of managing the Lease agreement. Any costs associated with Winding-up of EDIH can only be determined at the stage of final Wind-up.

QUESTION: 652
652 Dr S M van Dyk (DA) to ask the Minister of Energy:

(1) Whether any transformers on Eskom's power-grid were (a) stolen or (b) damaged beyond repair between 1 and 31 December 2010 in the Brits Agricultural District in the North West province; if so, how many transformers were (i) stolen or (ii) damaged beyond repair;

(2) how many transformers were stolen from Eskom's power-grid in the Koedoeskop Agricultural District in the Limpopo province;

(3) (a) how many transformers were (i) stolen and (ii) damaged beyond repair in rural areas in 2010 in each province and (b) what is the (i) monetary value of the copper in a transformer and (ii) the total cost to replace the stolen and damaged transformers? NW698E

REPLY

(1) (a)(i) There were 48 transformers stolen in the Brits agricultural district.

(ii) There were no damaged transformers.

(2) There were 51 transformers stolen in the Koedoeskop agricultural district, Limpopo Province. (3) (a)(i)(ii)

Eskom Region I	No of stolen/damaged transformers In (1) and (ii)	Replacement cost of transformers stolen and damaged beyond repair in Rands
Northern	355	6 537 000
Central	151	78 700
Southern	1	25 000
Eastern	44	1 760 000
Western	25	995 331
North West	115	3 323 921

Comments: The information on stolen/damaged transformers is not available per Province but per Eskom Region as detailed above. The boundaries of the Eskom regions are not aligned with Provincial boundarias, but cover the whole country. Some of the regions do not have a split between stolen and damaged transformers; a combined figure of stolen and damaged transformers is given. The costs provided are only replacement costs - original costs of transformers are not available.

(3) (b)(i)(ii) It is not possible to furnish the exact cost of copper inside the stolen transformers. The amount of copper varies among different transformer sizes, ranging from 22kg in a 25kVA transformer to 108kg in a 500kVA transformer. In addition, the price of copper on the London Metal Exchange fluctuates.

The total cost of replacing the stolen and transformers beyond repair was R12 719952 for the period between January to December 2010

QUESTION 602

Mr J J van der Linde (DA) to ask the Minister of Energy:

(1) (a) Which travel agencies or travel service providers does her department use currently and (b)(i) how and (Ii) when were they appointed in each case;

(2) What was the (a) budgeted amount and (b) actual amount paid to each specified service provider for departmental travel expenditure In the (i) 2007-08, (ii) 2008-09 and (iii) 2009-10 financial years? NW645E

REPLY

(1) The current service providers are Travel with Flair, Wings Corporate Travel, Nexus Travel and Travel Adventures. The service providers were appointed via a tender process In November 2009 by former Department of Minerals and Energy for period of 2 yrs and when the legacy department was split. DoE continued to use the same contract from 1st April 2010. The travel Contract ends in October 2011.

(2) The Department of Energy was established on 1 April 2010, therefore comparative figures for years 07/08 & 09/10 for DoE are not available, this prior year information on DoE travel expenses is incorporated in the records of DMR.

QUESTION 534
534 Mr K M Zondl (IFP) to ask the Minister of Energy:

Whether her department has any plans In place to expand the electricity grid for the electrification of the villages in Nkandla, KwaZulu-Natal ; if not; why not; if so, what are the (a) plans, (b) timeframes and (c) further relevant details? NW580E

REPLY

Yes, there Is a plan for Nkandla, KwaZulu.Natal.

(a) The following are the plans for 2011/121/nanclal year:

Project Name	Budget	No. of Connections
Qhudeni.Extenslon	R 3,000,000	171
Wozawoza-Extension	R 3,000,000	171
Fort Louis- Extension	R 3,000,000	171
Thalanenl-Extenslon	R 3,000,000	171
Total	R 12,000,000	684

(b) End of 2011/12 financial year.

(c) Nkandla has been allocated funding for electrification projects In the current financial year, as well as for the next three financial years. The different villages that have been allocated funding for the current 201012011 financial year are set out In the table below. An amount of Just over R61 million has been allocated for 3272 connections in Nkandla. The respective projects, amounts and connections are given In the table below:

Project Name	Budget	No. of Connections
Cholwane Nquthu	R 12,958,385.08	522
Maphutu / Vuleka	R 11,471,900.93	946
Nhloyane (Vuma)	R 11,210,302.78	829
Nkungumathe / Ohlelo	R 13,950,762.18	350
Fort Louis / Thalaleni extensions	R 435,998.70	25
Nxamalala /Lindela #3	R 11,167,440.00	600
Total	R61.194.789.67	3272

The Current projects will be completed by March 2011.

The table below shows the budgeted allocations for Nkandla for the next three financial cycles.

Schedule 6 Allocations (Municipals)
Municipality	2011/12	2012/13	2013/14
KZN286 Nkandla	R 12, 000, 000	R 20, 000, 000	R10. 000,000

QUESTION 473

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

(1) What are the (a) projected, (b) current and (c) outstanding costs with regard to the (i) Medupi and (ii) Kusile Power Station projects;

(2) Whether a comprehensive study on meeting South Africa's energy needs has been conducted since the start of the Medupi and Kuslle Power Station projects; if not, why not; If so, by whom;

(3) Whether the study made reference to the reactivation of dormant power plants; if not, why not; if so, what are the relevant details? NW515E.

Reply

(1) Number based on 31 December 2010 quarterly

Power Station	Projected Costs [excluding Interest during construction (IDC)]	Current costs (excluding IDC)	Outstanding costs (excluding IDC)
Medupi	R98, 8 billion	R38,1bHlion	R60, 7 billion
Kusile	R120,0 billion	R21,4 billion	R98,6 bin/on

(2) The Department of Energy has developed a 20 year Integrated Resources Plan (IRP) to ascertain the country's electricity supply options to meet the growing electricity demand. The IRP incorporated committed projects including Medupi, Kusile. Return to Services and other non-Eskom interventions to meet the demand.

In addition, the Medium Term Risk Mitigation Plan was developed to look at other interventions within and outside Eskom supply options to meet the demand before the committed projects (Medupi, Kusile and Ingula Power Stations) reach their commercial operation dates.

The IRP will be promulgated towards the end of March 2011.

(3) The IRP look at a holistic supply options to meet the demand. This Includes the Return to Services (RTS), municipal generators and decommissioning of other plants over the period of 20 years.

QUESTION 472

Mr D C Ross (DA) to ask the Minister of Energy:

(1) With reference to the Integrated Resource Plan (IRP2), what (a) measures will she put in place to incentives Independent energy production and (b) what is the long-term viability for the Renewable Energy Feed-in Tariff (REFIT);

(2) Whether, considering the high costs of solar and wind power, she Intends to continue subsidising Investments In these technologies; If not, why not; If so, why;

(3) Whether she Intends applying a decentralised approach to solar power generation; If not, why not; if so, what are the relevant details? NW614E

REPLY

(1) (a) The IRP 2 is still to be proclaimed . As such, the final contribution of renewables up to 2030 has perked at 42%. It is however, expected that expected that the high costs of renewables will reduce in time such that these technologies win not need incentives for the entire IRP2 period.

(b) The REFIT budget al the moment Is for the 2013 target, where Eskom has been allocated about R 7 Billion to procure power from IPPs between 2010 - 2012. Beyond this period, the next phase of the REFIT will have to be reviewed in line with rising electricity prices and developments in the renewable energy space. It is anticipated that the large scale deployment of renewable energy technologies in South Africa and globally will lead to a reduction in the overall costs of these technologies to a point where incentives will be negligible or even unnecessary. It is expected that around 2016 onwards we will see the first tranche of cost-competitive solar power for instance.

(2) Yes. Wind and Solar Power are among the technologies that qualify for REFIT subsidies, and are also the main technologies that hold the greatest potential in the country compared to small scale hydro and landfill gas for Instance. Solar power general/on Is particularly attractive given the high solar Irradiation levels in most parts of the country and the potential for the costs to reduce to grid parity levels. In the meantime, we will continue to subsidise the renewable energy technologies to encourage market development

(3) Yes. The Department is considering establishing solar power generators In different regions In South Africa subject to availability of the necessary Infrastructure - land, water, access to transmission lines etc. A feasibility study is currently being conducted to establish a pilot Solar Park (n the Northern Cape. In addition, we will also build small PV plants in a decentrallsed manner.

QUESTION: 410
410. Mr M A Nhanha (Cope) to ask the Minister of Energy:

Whether independent power producers (IPPs) will be allowed to (a) generate capacity and (b) sell off additional capacity into the national electricity grid; if not, why not; if so, what are the relevant details? NW444E

REPLY

(a) Yes, Independent power producers will be allowed to generate capacity and sell into the grid.

(b) Historically, Eskom acted as a sole producer and a transmitter of all the power. Only recently, did government commit itself to the inclusion of private generators in the electricity business. In order to coordinate investments and to avoid stranded assets, it is important to ensure that any power wheeled through the electricity network is reflected in the IRP for planning purposes, especially for the transmission network. IRP2010 was recently approved by Cabinet and it takes into account a certain percentage of power from private generators. The Department will be amending the Electricity Regulation Act of 2006 to facilitate the selling of energy on a willing buyer willing seller basis, subject to certain conditions being satisfied. It is important to note that such activities are normally practiced in deregulated electricity markets. Notwithstanding this and given the urgent need to put MW into the national grid, the current focus is on procurement of power from IPPs especially under the REFIT programme and any other available power. We are looking at procuring at least 1025MW this year to improve the capacity of the network.

QUESTION 354

Mr I O Davidson (DA) to ask the Minister of Energy:

(1) What body needs to approve any requests for uranium imports;

(2) Whether a certain company called Mantra Mining recently exported uranium to South Africa for evaluation by Mintek; if so, (a) which body approved this transaction and (b) how much uranium was exported? NW379E

REPLY

(1) The Minister of Energy, in consultation with the South African Council for the Non-Proliferation of Weapons of Mass Destruction.

(2) Yes (a) Refer to 1 above (b) Details not available

QUESTION 354

Mr I O Davidson (DA) to ask the Minister of Energy:

(1) What body needs to approve any requests for uranium imports;

REPLY

(1) The Minister of Energy, in consultation with the South African Council for the Non-Proliferation of Weapons of Mass Destruction.

(2) Yes (a) Refer to 1 above (b) Details not available

QUESTION 353

353. Mr I O Davidson (DA) to ask the Minister of Energy:

(1) (a) How much fuel was imported in (i) 2010 and (ii) 2011 up to the latest specified date for which information is available, (b) how much of this fuel was leaded fuel, (c) why is the import of leaded fuel still permitted and (d) what sectors use leaded fuel;

(2) Whether she intends to restrict or ban the importation of leaded fuel; if not, why not; if so, what are the relevant details? NW378E

REPLY

1. (a) The quantity of fuel imported in-

(i) 2010 (Jan – Dec): 2.095 billion litres

(ii) 2011 January (Latest): 216 million litres

(b) None of the imported fuel was leaded.

(c) In terms of the Regulations regarding Petroleum Products Specifications and Standards of 23 June 2006 (No. R. 627), the import of leaded petrol is effectively not permitted in South Africa [except in terms of sub-regulation 3(1)(h) discussed below]. Regulation 6(5)states that: "Offering for sale, selling or providing metal-free unleaded petrol or metal-containing unleaded petrol which contains lead additives is prohibited", and regulation 6(6) states that: "A licensed manufacturer or wholesaler may not import petroleum products for consumption in the Republic that do not comply with these Regulations."

(d) To our knowledge, no sector uses leaded fuel. However, sub-regulation 3(1)(h) of the Regulations regarding Petroleum Products Specifications and Standards of 23 June 2006 permits the selling of "petrol with lead additives for use in aeroplanes with internal combustion engines provided that: (i) only licensed wholesalers may sell or provide such petrol; (ii) such petrol is only sold to licensed owners or operators of aeroplanes with internal combustion engines for their own consumption; and (iii) such petrol is not stored on, sold or provided from a site." It should also be noted that metal-containing petrol and lead replacement petrol (LRP) are permitted in terms of the said Regulations. Metal-containing petrol and LRP use metal-based additives other than lead. These include manganese, phosphorus or potassium bases and all three are considered safer and environmentally friendlier than lead. 95 octane LRP is available for older cars at the coast and 93 octane LRP is available for older cars in the inland region.

(2) In line with prior Cabinet decisions, the addition of lead into all grades of petrol was banned with effect from 01 January 2006 and subsequent pieces of legislation incorporated this ban / prohibition.

QUESTION 281

Mr. S.J.F. Marais(DA) to ask the Minister of Energy:

1. How many documents have (a) his (i) ministry and (ii) department and
(b) any (i) institution or (ii) agency which receives transfers from his departmental budget classified as (aa) top secret, (bb) secret, (cc) confidential, (dd) restricted under the provisions of the Minimum Information Security Standards that were adopted by Cabinet on 02 December 1996 in th (aaa) 2005-06, (bbb) 2006-07, (ccc) 2007-08, (ddd) 2008-09 and (eee) 2009-10 financial years;

2. What is the (a) name and (b) rank or (ii) employment level of the official who decided on the classification at each specified public body? NW302E

Reply

1. An indeterminate number of documents have been classified in keeping with MISS and these are matters relating to State Security.

2. These details requested here are set out in the Minimum Information Security Standards (MISS)

QUESTION 61

61. Mr D C Ross (CA) to ask the Minister of Energy:

With regard to the load shedding that took place in the KwaDukuza Municipality, KwaZulu-Natal during November and December 2010, (a) what plans are in place to deal with the electricity supply shortfall In the (i) immediate and (ii) medium terms, (b) what contingency plans are In place to alleviate the ongoing power supply shortages and lower the frequency of power failures. in the KwaDukuza area and (c) what plans are In place in the longer term to avoid this from recurring, given the anticipated 2011-2016 roiling blackouts? NW71E

REPLY

(a) (i) In the Immediate term?

The KwaDukuza Municipality has urged consumers to use electricity efficiently and to switch off unnecessary appliances and equipment during peak times or high demand times. Critical maintenance has been undertaken in the major points of the electricity network. Large industries have been requested by the municipality to reduce their demand. It was reported from Nersa that KwaDukuza municipality will be providing them with the detailed projects that have to be undertaken to improve the power supply situation when they apply for their tariff increases in May/June 2011.

(ii) In the medium term?

Energy Intensive users in the area, such as SAPPI and Mondi have committed to either increase their co-generation plant outputs or build additional co-generation plants so as to reduce the electricity demand from the KwaDukuza municipality network.

The drive towards sustainable Energy Efficiency and Demand Side Management will be intensified. NERSA has encouraged the KwaDukuza Municipality to include the revenue required for Implementation of the abovementioned measures in the tariff application of 2011. The municipality will also be required to upgrade some of its substations to increase their capacity.

(b) The KwaDukuza municipality is undertaking refurbishment of Its network to reduce the frequency of outages whilst at the same time negotiating with energy intensive users to reduce their demand.

(c) Energy Efficiency and Demand Side Management by all South Africans will significantly contribute towards the prevention of the rolling blackouts. KwaDukuza Municipality will be required to increase the drive and focus on such initiatives,

The commissioning of the co-generation plants by the energy Intensive users in KwaDukuza, as part of the implementation of IRP Project, will reduce the demand and henceforth limit the anticipated rolling blackouts.

KwaDukuza will be required to enhance the maintenance of its network as well as undertake refurbishment of the aged network.

2011-11-10

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