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Annual Report2011/2012

Ms Dipuo Peters, MPMinister of Energy

I have the honour of submitting the Annual Report of the Department of Energy

for the period 1 April 2011 to 31 March 2012.

Ms Nelisiwe MagubaneDirector-General: Energy

DEPARTMENT OF ENERGYAnnual Report2011/2012

Department of Energy

192 Visagie Street

Corner Paul Kruger & Visagie Street

Pretoria

0007

Private Bag X96

Pretoria

0001

www.energy.gov.za

Pretoria: 012 406 8000 (Switchboard)

012 406 7300 (Reception)

Cape Town: 021 427 1017

ISBN: 978-0-621-41155-3

RP: 251/2012

Design & Printing: Zibako Trading Enterprise cc 084 822 33136

Department of Energy - Annual Report 2011/2012

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National Department of Energy - Vote 29

CONTENTS

1. GENERAL INFORMATION .......................................................................................................... 1

1.1 Vision, Mission and Values ................................................................................................................ 2

1.1.1 Vision 2014 ............................................................................................................................................ 2

1.1.2 Vision 2025 ............................................................................................................................................ 2

1.1.3 Mission .................................................................................................................................................. 2

1.1.4 Values .................................................................................................................................................... 2

1.2 Organisational Structures ................................................................................................................... 3

1.2.1 Approved Organisational Structure (as at 1 April 2012) ........................................................................ 3

1.2.2 Interim Organisational Structure (implemented on 1 April 2010) .......................................................... 3

1.3 Legislative Mandate ............................................................................................................................. 4

1.3.1 The National Energy Act, 2008 (Act No. 34 of 2008) ............................................................................ 4

1.3.2 The Electricity Regulation Act, 2006 (Act No. 4 of 2006), as amended ................................................ 4

1.3.3 The Petroleum Products Act, 1977 (Act No. 120 of 1977), as amended .............................................. 4

1.3.4 The Central Energy Fund Act, 1977 (Act No. 38 of 1977), as amended ............................................... 5

1.3.5 The Nuclear Energy Act, 1999 (Act No. 46 of 1999) ............................................................................. 5

1.3.6 Other Legislative Mandates .................................................................................................................. 5

1.3.7 Legislation Tabled in Parliament during 2011/12 ................................................................................... 6

1.4 Entities Reporting to the Minister of Energy .................................................................................... 6

1.4.1 National Energy Regulator of South Africa ............................................................................................ 6

1.4.2 The National Nuclear Regulator ............................................................................................................ 6

1.4.3 CEF (SOC) LTD .................................................................................................................................... 6

1.4.4 Nuclear Energy Corporation of South Africa ......................................................................................... 7

1.4.5 South African National Energy Research and Development Institute ................................................... 7

1.4.6 EDI Holdings ......................................................................................................................................... 7

1.5 Minister’s Statement ........................................................................................................................... 8

1.5.1 Hydrocarbons and Energy Planning ..................................................................................................... 8


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1.5.2 Electricity, Nuclear and Clean Energy ................................................................................................... 9

1.5.3 Nuclear Energy ................................................................................................................................... 10

1.5.4 Public Engagements ........................................................................................................................... 10

1.5.5 International Relations ........................................................................................................................ 11

1.6 Deputy Minister’s Remarks .............................................................................................................. 13

1.6.1 Electrifi cation ....................................................................................................................................... 13

1.6.2 Women and Youth Empowerment ....................................................................................................... 13

1.7 Accounting Offi cer’s Overview ........................................................................................................ 16

1.7.1 Security of Supply and Universal Access to Sustainable Energy ........................................................ 16

1.7.2 Important Policy Decisions and Strategic Issues Facing the Department ........................................... 17

1.7.3 Signifi cant Events that have Taken Place during the Year ................................................................. 18

1.7.4 International Relations ........................................................................................................................ 18

2. INFORMATION ON PREDETERMINED OBJECTIVES .................................................... 21

2.1 Overall Performance .......................................................................................................................... 22

2.1.1 Voted Funds ......................................................................................................................................... 22

2.1.2 Aim of Vote ........................................................................................................................................... 22

2.1.3 Strategic Outcome-Oriented Goals ...................................................................................................... 22

2.1.4 Overview of the Service Delivery Environment for 2011/12 ................................................................. 23

2.1.5 Overview of the Organisational Environment for 2011/12 .................................................................... 30

2.1.6 Key Policy Developments and Legislative Changes ............................................................................ 32

2.1.7 Departmental Revenue, Expenditure and Other Specifi c Topics ......................................................... 33

2.1.8 Departmental Expenditure ................................................................................................................... 33

2.1.9 Transfer Payments ............................................................................................................................. 35

2.1.10 Public Entities and other Agencies ...................................................................................................... 36

2.1.11 Conditional Grants and Earmarked Funds .......................................................................................... 37

2.1.12 Capital Investment, Maintenance and Asset Management Plan ......................................................... 37

2.2 Programme Performance .................................................................................................................. 38

2.2.1 Goverment Outcomes ........................................................................................................................ 39


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2.2.2 Millenium Development Goals ........................................................................................................... 40

2.2.3 Department of Energy Programmes ................................................................................................... 40

2.2.4 Programme 1: Administration ............................................................................................................... 41

2.2.5 Programme 2: Hydrocarbons and Energy Planning ............................................................................. 62

2.2.6 Programme 3: Electricity, Nuclear and Clean Energy .......................................................................... 73

2.2.7 Programme 4: Associated Services ..................................................................................................... 85

3. ANNUAL FINANCIAL STATEMENTS ..................................................................................... 93

Report of the Audit Committee ......................................................................................................... 94

Report of the Accounting Offi cer ...................................................................................................... 97

Report of the Auditor-General ......................................................................................................... 119

Appropriation Statement ................................................................................................................ 124

Notes to the Appropriation Statement ........................................................................................... 137

Statement of Financial Performance .............................................................................................. 141

Statement of Financial Position ...................................................................................................... 142

Statement of Changes in Net Assets .............................................................................................. 143

Cash Flow Statement ...................................................................................................................... 144

Accounting Policies ........................................................................................................................ 145

Notes to the Annual Financial Statements ................................................................................... 155

Disclosure Notes to the Annual Financial Statements ................................................................. 167

Annexure (Unaudited Supplementary Schedules) ....................................................................... 186

4. HUMAN RESOURCE MANAGEMENT ................................................................................. 207

4.1 Service Delivery ............................................................................................................................... 208

4.2 Expenditure ...................................................................................................................................... 231

4.3 Employment and Vacancies ........................................................................................................... 234

4.4 Job Evaluation .................................................................................................................................. 237

4.5 Employment Changes ..................................................................................................................... 239

4.6 Employment Equity ......................................................................................................................... 244

4.7 Performance Management ............................................................................................................. 249


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4.8 Foreign Workers .............................................................................................................................. 254

4.9 Leave Utilisation ............................................................................................................................... 255

4.10 HIV and Aids .................................................................................................................................... 257

4.11 Labour Relations ............................................................................................................................. 258

4.12 Skills Development ......................................................................................................................... 261

4.13 Injury on Duty .................................................................................................................................. 263

4.14 Utilisation of Consultants ............................................................................................................... 264

5. OTHER INFORMATION ............................................................................................................. 267

Acronyms ........................................................................................................................................... 268

Index of Table and Figures ................................................................................................................ 272

Section 1General Information


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1.1 VISION, MISSION AND VALUES

1.1.1 Vision 2014

A transformed and sustainable energy sector with universal access to modern energy carriers for all by

2014.

1.1.2 Vision 2025

Improving our energy mix by having 30% clean energy by 2025.

1.1.3 Mission

To regulate and transform the sector for the provision of secure, sustainable and affordable energy.

1.1.4 Values

Ø Batho Pele

Ø Ethics

Ø Honesty

Ø Integrity

Ø Accountability

Ø Professionalism

Ø Ubuntu


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1.2 ORGANISATIONAL STRUCTURES

* See paragraph 2.1.5 Overview of the organisational environment for 2011/12

Minister of Energy

Departmentof Energy

Director-General

DeputyMinister of

Energy

Offi ce of the ChiefOperating

Offi cer(Branch)

Offi ce of the ChiefFinancialOffi cer

(Branch)

CorporateServices(Branch)

Electricity,Nuclear &

Clean Energy(Branch)

Hydrocarbons& EnergyPlanning(Branch)

1.2.2 Interim Organisational Structure (implemented on 1 April 2010)*

Departmentof Energy

Director-General

CorporateServices(Branch)

NuclearEnergy

(Branch)

IntegratedEnergy

Planning(Branch)

EnergyOperational

Services(Branch)

PolicyDevelopment

(Branch)

Offi ce of theChief

FinancialOffi cer

(Branch)

Offi ce of theChief

OperatingOffi cer

(Branch)

DeputyMinister of

Energy

Minister of Energy

1.2.1 Approved Organisational Structure (as at 1 April 2010)*

Figure 1

Figure 2


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1.3 LEGISLATIVE MANDATE

There have been no signifi cant changes to the Department of Energy’s (DoE) legislative mandate. The list

of Acts and the description of the Acts have, however, been reviewed to be more accurate, comprehensive

and descriptive.

The following legislation regulates the energy sector and refl ects the legislative measures the DoE

instituted to:

Ø execute its obligation to govern the energy sector in order to ensure secure and sustainable provision

of energy for socio-economic development with universal access to modern energy carriers for all;

Ø establish the need for the maintenance of this legislation and monitoring/ensuring compliance

therewith; and

Ø directly mandate the activities of the DoE.

1.3.1 The National Energy Act, 2008 (Act No. 34 of 2008)

The National Energy Act, 2008 is the enabling legislation that empowers the Minister of Energy to

ensure that diverse energy resources are available in sustainable quantities and at affordable prices

in the South African economy to support economic growth and poverty alleviation, while also taking

into account environmental considerations. In addition, the Act also provides for energy planning; the

increased generation and consumption of renewable energy; contingency energy supply; the holding of

strategic energy feedstock and carriers; adequate investment in appropriate upkeep and access to energy

infrastructure; measures for the furnishing of certain data and information regarding energy demand,

supply and generation; and establishing an institution to be responsible for the promotion of effi cient

generation and consumption of energy and energy research, and all matters connected therewith.

1.3.2 The Electricity Regulation Act, 2006 (Act No. 4 of 2006), as amended

The Electricity Regulation Act, 2006 establishes a national regulatory framework for the electricity supply

industry and makes the National Energy Regulator of South Africa (NERSA) the custodian and enforcer

of the national electricity regulatory framework. The Act provides for licences and registration as the

instrument by which generation, transmission, distribution and trading (including the import and export)

of electricity are regulated. The Minister of Energy, in terms of Section 34 (1), is furthermore empowered

to make determinations for the establishment of new generation capacity through Eskom or Independent

Power Producers (IPP) for the purpose of greater competition in the electricity generation sector.

1.3.3 The Petroleum Products Act, 1977 (Act No. 120 of 1977), as amended

The Petroleum Products Act, 1977 provides for measures in the saving of petroleum products and the

economy in the cost of distribution thereof; the maintenance and control of a price thereof; the furnishing

of certain information regarding petroleum products for the rendering of service of a particular kind or


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standard in connection with petroleum products; the licensing of persons involved in the manufacturing,

wholesaling and retailing of prescribed petroleum products; the promotion of the transformation of the

South African petroleum and liquid fuels industry; and the promulgation of regulations relating to such

licences and matters incidental thereto.

1.3.4 The Central Energy Fund Act, 1977 (Act No. 38 of 1977), as amended

The Central Energy Fund Act, 1977 provides for the payment of certain moneys into the Central Energy

Fund (CEF) and for the utilisation and investment thereof; the imposition of a levy on fuel and for the

utilisation and investment thereof; the control of the affairs of the CEF (SOC) Ltd by a board of directors;

the keeping of records of all transactions entered into for account of the CEF or the Equalisation Fund

and of certain other transactions; the investigation, examination and auditing of the books, accounts and

statements kept and prepared in connection with the said transactions; and the submission to Parliament

of a report relating to the said investigation, examination and auditing. It also provides for matters

connected with the Act.

1.3.5 The Nuclear Energy Act, 1999 (Act No. 46 of 1999)

The Nuclear Energy Act, 1999 provides for the establishment of the South African Nuclear Energy

Corporation Ltd or NECSA (a public company wholly owned by the State) and defi nes its functions,

powers, fi nancial and operational accountability, its governance and management by a board of

directors, the composition of the board and a chief executive offi cer (CEO), the responsibilities for the

implementation and application of the Safeguards Agreement and additional protocols entered into by the

Republic and the International Atomic Energy Agency (IAEA) in support of the Nuclear Non-Proliferation

Treaty acceded to by the Republic. This Act also regulates the acquisition and possession of nuclear fuel,

certain nuclear and related material and equipment, as well as the importation and exportation of (and

certain other acts and activities relating to that fuel) material and equipment in order to comply with the

international obligations of the Republic. It prescribes measures regarding the discarding of radioactive

waste and the storage of irradiated nuclear fuel and incidental matters.

1.3.6 Other Legislative Mandates

Ø National Nuclear Regulator Act, 1999 (Act No. 47 of 1999)

Ø National Radioactive Waste Disposal Institute Act, 2008 (Act No. 53 of 2008)

Ø Petroleum Pipelines Act, 2003 (Act No. 60 of 2003)

Ø Petroleum Pipelines Levies Act, 2004 (Act No. 28 of 2004)

Ø Gas Act, 2001 (Act No. 48 of 2001)

Ø Gas Regulator Levies Act, 2002 (Act No. 75 of 2002)

Ø National Energy Regulator Act, 2004 (Act No. 40 of 2004)

Ø Electricity Act, 1987 (Act No. 41 of 1987), as amended

Ø National Environmental Management Act, 1999 (Act No. 107 of 1999)

Ø Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002)


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1.3.7 Legislation Tabled in Parliament during 2011/12

Ø Electricity Regulation Amendment Bill

Ø The National Energy Regulator Amendment Bill

Ø The Independent Systems and Market Operator (ISMO) Bill

1.4 ENTITIES REPORTING TO THE MINISTER OF ENERGY

The Minister of Energy is responsible for overseeing the following six state owned entities (SOEs) and

their subsidiaries, which are scheduled as Schedule 2 and Schedule 3A Institutions in terms of the Public

Finance Management (PFMA) Act, 1999.

1.4.1 National Energy Regulator of South Africa

NERSA derives its mandate from the National Energy Regulator Act, 2004 which establishes NERSA as

the competent authority for electricity (in terms of the Electricity Regulation Act, 2006), gas (in terms of

the Gas Act, 2001) and petroleum pipelines regulation (in terms of the Petroleum Pipelines Act, 2003) in

South Africa. NERSA derives its revenue by imposing prescribed levies on regulated industries. In this

regard, the following Acts govern the imposition of such levies:

Ø Gas Regulator Levies Act, 2002

Ø Petroleum Pipelines Levies Act, 2004

Ø Section 5B of the Electricity Act, 1987

1.4.2 The National Nuclear Regulator

The National Nuclear Regulator (NNR) was established in terms of the National Nuclear Regulator Act,

1999. The purpose of the Regulator is to provide for the protection of persons, property and the environment

against nuclear damage through the establishment of safety standards and regulatory practices.

1.4.3 CEF (SOC) LTD

CEF (SOC) Ltd is incorporated in terms of the Companies Act and governed by the Central Energy

Fund Act, 1977. The group operates in the energy sector and manages defi ned energy interests with

commercial, strategic, licensing, and developmental roles on behalf of the South African Government,

and more recently, with a special focus on renewable and cleaner alternative energy sources.

The CEF group is made up of 10 operating entities/subsidiaries, namely PetroSA, South African Gas

Development Company (iGas), Petroleum Agency SA (PASA), Oil Pollution Control South Africa

(OPCSA), Strategic Fuel Fund (SFF), African Exploration Mining (AEMFC), ETA Energy (formerly CEF

Sustainability), CEF Carbon, CCE Solutions (Pty) Ltd, and the South African Supplier Development

Agency (SASDA). Through the Energy Development Corporation (EDC) division, CEF also has equity

interests in the following companies: Baniettor Mining (Pty) Ltd (49%), Darling Wind Power (Pty) Ltd

(49%), Biotherm (Pty) Ltd (19%), Johanna Solar BV (3%), Phillips Lighting Maseru (30%), Cradock Sugar

Beet and Ener-G Johannesburg (29%).


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CEF also manages, on an agency basis, the strategic crude oil stock for the country. PetroSA is involved in

the exploration for oil and gas in South Africa as well as the rest of Africa, the production of environmentally

friendly petroleum fuels and petrochemical products from gas and condensate at its synfuels refi nery

outside Mossel Bay, and the management of oil storage facilities. SFF manages South Africa’s strategic

reserves of crude oil. OPCSA provides oil prevention, control, and clean-up services, mainly in South

African ports and coastal areas, in terms of South Africa’s National Environmental Management Act,

1999 (NEMA). PASA manages the promotion and licensing of oil and gas exploration, development

and production in South Africa and the coastal areas offshore South Africa as part of creating a viable

upstream oil industry in the country. iGas acts as the offi cial agent of the South African Government for

the development of the hydrocarbon gas industry, comprising liquefi ed natural gas (LNG) and liquefi ed

petroleum gas (LPG), in South Africa.

1.4.4 Nuclear Energy Corporation of South Africa

The Nuclear Energy Act, 1999 mandates the Nuclear Energy Corporation of South Africa (NECSA) to

undertake and promote research and development in the fi eld of nuclear energy and radiation science.

NECSA is also responsible for the following institutional obligations on behalf of the state: decommissioning

and decontamination of past strategic nuclear facilities, management of nuclear waste disposal on a

national basis, application of radiation technology for scientifi c and medical purposes, operation of the

SAFARI-1 nuclear reactor, operation of the Pelindaba site and accompanying services, and execution of

the safeguards function.

1.4.5 South African National Energy Research and Development Institute

This entity was established to conduct nationally focused energy research and development, while

assisting the DoE to achieve its strategic objectives through energy research activities as well as energy

effi ciency programmes as set out in the National Energy Act, 2008.

1.4.6 EDI Holdings

EDI Holdings (EDIH) is currently in a wind-down and closing process, which should be completed in

2012/13 as per the Cabinet decision of 8 December 2010 on the future of the electricity distribution

industry (EDI).


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1.5 MINISTER’S STATEMENT

The Department of Energy has, since its formation in 2009,

been at the forefront of ensuring that energy security is

pursued as a catalyst for economic growth and prosperity.

Our efforts in this regard are driven by the development of

an energy infrastructure and capacity development path that

assures security of energy supply, within the framework of

an energy plan that seeks to meet the needs of our country’s

growing economy, without compromising our commitment to

sustainable development and a clean environment by utilising

our energy resources responsibly. Specifi cally, our response

to increasing energy security demands in the electricity space

has been manifold and the DoE has placed the Integrated

Resource Plan (IRP) at the centre of addressing this mandate.

This 20-year energy mix plan endeavours to ensure the optimisation of costs, the promotion of job creation

and mitigation against adverse climate change.

Following the injunction from President Zuma, we have embarked on a massive capital expansion

programme as government. We have defi ned the specifi c contribution of the DoE to this process, and

have sought actively to ensure optimum alignment with the stated policy imperatives and directives,

amongst which the New Growth Plan and Industrial Policy Action Plan are key.

1.5.1 Hydrocarbons and Energy Planning

We ended this year at a time when political events in the Middle East and North Africa have had, and

continue to have a negative impact in the supply and cost of oil. We have seen the oil price increase to

way above the $ 100 per barrel mark.

During the year, we have engaged various partners in the continent and as far afi eld as Venezuela, in

our attempt to secure oil supply for our country. Together with our national oil company, PetroSA, we

have engaged countries like Angola, Ghana, Nigeria, Saudi Arabia and Venezuela in exploring areas of

cooperation and increased trading in petroleum products. Internally, the Strategic Fuel Stock Policy has

been fi nalised and will be published for comments early next year. The new Multi-Products Pipeline was

commissioned in January 2012 and during 2012/13 we will be making the fi nal R 1.5 billion transfer to

Transnet for the security of supply element.

The DoE has also implemented the Regulatory Accounting System (RAS) margins into the fuel price

structure on 07 December 2011, the goal of which is to develop a uniform and transparent set of regulatory

accounts where costs are allocated according to predetermined methods in order to provide certainty to

investors with regards to the returns on assets throughout the downstream petroleum industry value

chain. This would be achieved by ring-fencing regulated from unregulated activities in order to eliminate


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actual and potential cross-subsidies. The RAS models were mapped into the current fuel price structure

to ensure that there were no major changes to the pricing framework in the interim period. The DoE has

given the industry a period of 24 months to re-negotiate their commercial agreement in line with the RAS.

Work is in progress to determine the break-even price for biofuels manufacturers and the blending value

for refi nery operators in order to estimate the level of support that biofuels manufacturers would require

from government. The main objective is to promote the uptake of biofuels and contribution in the petroleum

sector. Two projects, including an economic model to determine the blending value, were concluded and

the DoE developed a draft discussion document on the principles to afford fi nancial support to bio-fuels

manufacturers. The discussion document would be subjected to extensive consultation with the relevant

stakeholders before it is approved.

Furthermore, the DoE promulgated a draft mandatory blending regulation to solicit public comment in the

Government Gazette.

1.5.2 Electricity and Clean Energy

The DoE played a signifi cant role during the 17th Conference of the Parties (COP 17/CMP 7 Conference)

held in November and December 2011 in Durban. We successfully hosted 26 energy side events, with

an emphasis on clean energy, that were well attended by both local and international stakeholders.

During the conference, Denmark, the UK, Germany, Norway and the European Investment Bank signed

a landmark agreement committing funds to support the implementation of the South African Renewable

Energy Initiative, commonly referred to as SARi.

In the period leading to COP 17, the DoE held several sectoral events, including the African Energy

Ministers Conference, which saw the participation of no less than 45 countries. Ministers from the

continent outlined priority projects and made a conscious decision to support climate change initiatives

through deployment of sustainable energy programmes. Hosted in partnership with the African Union,

the conference resulted in the adoption of the Johannesburg Declaration, and the resolutions highlighted

the urgent need for the continent to secure clean, affordable, accessible and sustainable energy carriers

for all and to reduce energy poverty. The major constraints for increased energy access were identifi ed

as funding, technology, technology localisation, skills development and ensuring that the energy sector

developments create jobs on the continent, promote regional electricity interconnectivity and provide

support to the Southern African Power Pool and related projects.

In line with this continental effort, and responding to our own stated policy imperatives, we have to date

selected a total of 47 preferred bidders under Windows One and Two of the Renewable Energy IPP

Procurement Programme, for a total of 2 614 MW to be added to the national grid by 2016. Investment in

this programme is projected at R 100 billion over the coming period, and will cover the supply, construction,

maintenance and operation of the proposed power plants in the Western Cape, Northern Cape, Eastern

Cape and the Free State. These provinces have the highest wind and solar resources in the country,


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which is why project developers have preferred to make investments there, but also as guided by our own

studies, including for instance the Wind Map and Atlas.

In a similar way, it is expected that KwaZulu-Natal, Mpumalanga, and our neighbours Mozambique and

Swaziland will dominate the biomass investment, due to the location of the sugar and paper industries in

these areas’. Limpopo and North West have solar potential that is also substantial, and we expect that

more projects will come from these provinces in future.

We have installed over 250 000 solar water heater systems to date, with a target of 1 million by 2014.

Notably, the majority of these systems, particularly the low pressure type, have been imported, and

this is clearly unsustainable. The time has arrived for government to intervene decisively if we are to

make a difference in creating local job opportunities. The lessons and experiences from the initial period

of implementation is being consolidated to ensure that we strengthen the programme, and through

this process ensure maximum local participation and job creation. Government has allocated over

R 4.7 billion over the Medium Term Expenditure Framework (MTEF) period to ensure that we meet our

set targets on this initiative.

1.5.3 Nuclear Energy

We have developed relations with multilateral bodies, that promote the safe use of nuclear and adhere to

the principles of non-proliferation. In June 2011, we participated in the Ministerial Conference on Nuclear

Safety which was organised by the International Atomic Energy Agency. As part of our contribution to

facilitate knowledge sharing on the African continent, South Africa further hosted the International Atomic

Energy Agency’s (IAEA) 2nd Regional Conference on Energy and Nuclear Power in Africa during the year

under review. Bilateral agreements were concluded with other countries where the DoE and its offi cials

have benefi ted from exchange of information and capacity building.

A key milestone was reached with the establishment by Cabinet of the National Nuclear Energy Executive

Coordination Committee, or NNEECC. The NNEECC, headed by the Deputy President, is the authority

for decision making, monitoring, and general oversight of the Nuclear Energy Expansion Programme as

envisaged in the IRP 2010.

Together with our SOEs, we have engaged the public in our attempt to improve understanding of the

nuclear sector. We strongly believe that the success of deployment of nuclear power requires public

acceptance, and that our engagement with various sectors and communities must foster a better

understanding of all the facts around nuclear technology and its applications.

1.5.4 Public Engagements

In response to the growing public interest in the energy sector, the DoE hosted 15 public engagements

during the fi nancial year aimed at promoting knowledge of energy issues among grassroot communities.


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These Public Participation Programmes (PPP) primarily took place in areas identifi ed with the highest

levels of energy poverty (KwaZulu-Natal, Eastern Cape, Limpopo and Northern Cape).

As part of celebrating March 2012 as Energy Month, we hosted major conferences, including a very

successful Energy Planning Colloquium and National Electrifi cation Indaba, both of which attracted

key local and international players. During this period, we have also intensifi ed work on other forms of

outreach and knowledge sharing, including a focus on the development and distribution of knowledge

sources such as various publications, and the increased use of our website.

1.5.5 International Relations

The DoE continues to engage with national and international stakeholders to ensure access to information,

technology, funding and best practice, in order to contribute to the security of energy supply for the

country. Our international engagements for the 2011/12 fi nancial year have been infl uenced by the supply

challenges in the oil industry, developments in the nuclear and clean energy environment, climate change

imperatives and South Africa’s role in the Southern African Development Community (SADC) and the

Africa continent at large. Various bilateral and multilateral relations were pursued. Our participation in

global energy bodies has further enhanced our role as a key decision maker on the global stage.

Within SADC and the rest of Africa, the DoE signed bilateral agreements with Ghana, Lesotho, and

the Democratic Republic of Congo (DRC) this year. These agreements cover areas of cooperation and

access to capacity building, funding, technology, exchange of information, and development of energy

infrastructure on the continent with the objective of increasing generation capacity. Our national oil

company, PetroSA, and the national utility, Eskom, are expected to participate in the Ghana and Lesotho

projects, respectively.

The DRC/ South Africa Memorandum of Understanding (MoU) on the Grand Inga Project was also signed

in November 2011, overseen by the Presidents of the DRC and South Africa. Eskom and the Societe

Nationale d‘ Electricité (SNEL) are expected to be the primary participants in this project. With the Grand

Inga having an estimated capacity of 40 000 MW of hydroelectricity, once implemented, it will contribute

to a reduction of carbon emissions, ensure security of supply and develop energy infrastructure in the

continent and the SADC region in particular.

We also participated in the Energy Ministers Annual Meeting where the development of a renewable

energy strategy for SADC and the infrastructure development master plan were approved and further

efforts were made to ensure the alignment of regulatory policies to ensure enhanced trade and investment

regionally, through structures such as the Regional Electricity Regulatory Authority.

South Africa continues to support the promotion of regional electricity interconnectivity and the Southern

African Power Pool (SAPP) and its related projects. Power trading is possible in the SADC region and


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there is an urgent need to create an enabling environment. With the SADC, governments, utilities, and

developers have identifi ed problems that exist in the enabling environment (e.g. fi nancing, security of

supply, regulation, pricing) for long-term cross-border power trading.

I would like to thank the Deputy Minister, Ms Barbara Thompson, the Director General (DG),

Ms Nelisiwe Magubane, the entire Team Energy, SOEs as well as our national and international partners

and stakeholders, for working tirelessly in ensuring that all South Africans benefi t from the work mandated

to the DoE.

Ms Dipuo Peters, MPMinister of Energy


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South Africa recognises the role of women, youth and people

living with disabilities in the transition to clean energy solutions

and overall developments in the energy sector. We recognise

the urgent need to address the different fi nancial and capacity-

building needs, taking into consideration gender, rural and urban

specifi c needs, as well as the experiences and knowledge they

can contribute. Our energy solutions will continue to address

energy access and technology needs of women.

1.6.1 Electrifi cation

Government has pledged itself to ensuring that all South Africans

have access to electricity. Our implementation partners, Eskom

and municipalities, have over the years extended their networks,

and through electrifi cation projects brought quality of life and

economic opportunities to many in underdeveloped areas.

In improving access to electricity, the Integrated National Electrifi cation Programme (INEP) continues to

be the backbone of our electricity delivery programme to communities who are under-served in terms of

grid and off-grid connection. INEP was allocated a budget of R 3.2 billion this year, to focus primarily on

the electrifi cation of rural areas and newly established formal and informal urban settlements. All of the

budget allocation was disbursed to Eskom and the municipalities as the implementing agents. A total of

107 000 new grid connections were completed by the end of March 2012, which is a higher percentage

than the average of the previous years. The total number of grid and non-grid connections for the 2011/12

fi nancial year will be available after 30 June 2012 as the municipalities’ fi nancial year ends in June.

Earlier this year, as part of celebrating March as Energy Month, we hosted an Electricity Indaba in Durban

where we identifi ed shortcomings of the current electrifi cation programme. Recommendations received

will be addressed through the implementation strategy agreed upon.

Through INEP, we also signed an agreement with the Development Bank of Southern Africa (DBSA) for

the next three years (starting 2012/13) to fund large electrifi cation projects to ensure that connections can

be completed quicker. An amount of R 2 million for the three years has been allocated by DBSA for this

so-called ‘front loading’ of large municipal electrifi cation projects.

1.6.2 Women and Youth Empowerment

The DoE launched the Clean Energy Education and Empowerment (C-3E) initiative on 20 August 2011.

The focus of this initiative is to promote women’s participation in the clean green energy business through

1.6 DEPUTY MINISTER’S REMARKS


14

mentorships, couching and other programmes as well as encourage young women to take up studies

within the science, technology engineering and mathematics arenas. The launch provided a platform for

the development of the implementation plans required to realise these goals and objectives.

One of the key achievements of the launch was the appointment of the steering committee members from

the energy sector and the identifi cation of the themes for the working groups. A workshop was held in

February 2012 with the purpose of planning around the four areas of education, women empowerment,

research and innovation, and marketing and branding. The workshop was also used to defi ne the terms

of reference for each working group. In line with the launch document, the delegates confi rmed the

governance structure.

In partnership with Women in Oil and Energy South Africa (WOESA), we hosted workshops in KwaZulu-

Natal, Northern Cape and Gauteng provinces to inform women who are interested in venturing into

business within the energy sector. More workshops will be held at other provinces during the next fi nancial

year.

Our fi rst annual Learners’ Focus Week Workshop was held from 11-14 July 2011 at the University of

Natal, Howard College in Durban, and was attended by 220 learners from Grades 9-11. The aim of the

learners’ focus week is to encourage and inform learners on career opportunities available in the energy

sector.

On 25 November 2011, the DoE held the Energy Sector Men’s Day to launch the Energy Sector Men’s

Forum. One hundred and ten men gathered to act on a shared passion for men’s issues. The event,

sponsored by Sasol, was an opportunity to declare how each attendee can contribute to this important

initiative. A charter for the men’s forum in the energy sector was developed from the launch and it is

expected that it will be signed off in November 2012.

The DoE has for the past two years embraced the Cell C “Take a Girl Child to Work Day initiative” with

the aim of exposing young girl learners to the “world of work” and the wide range of career opportunities

in the energy sector, as well as giving them the opportunity to meet career role models. The year 2011

marked the 9th year anniversary of the Take a Girl Child to Work Day programme and the theme “Choose

your Tomorrow, Today” acknowledges the potential of girl children and provides an opportunity for them to

consider the choices they make today that will shape their future. The DoE hosted 28 learners from Bokgoni

Technical High School. These campaigns seek to inspire girls to achieve their goals and ambitions and

make them aware of the important role they can play in the South African economy. The campaign is in

line with goal number 3 of the Millennium Development Goals (MDGs): “To promote gender equality and

empower women”, and is a clear recognition of the crucial role women play in the development agenda.

Last year we also participated in a three-day conference at the Birchwood Conference Centre, in

Boksburg, Johannesburg, attended by women (young and old) representing women formations,


15

ministries and government departments, labour, business, and women from rural arrears, women living

with HIV/AIDS. The focus was on substantive issues for consideration towards a Gender Equality Bill.

This conference was attended by more than 1 000 delegates and marked the start of the National Gender

Machinery which will provide a platform for women from all sectors and across the country to express

their views on a number of key developmental issues affecting them as well as to see that gender equality

is mainstreamed across public and private sectors.

To the Minister of Energy, Ms Dipuo Peters, the DG, Ms Nelisiwe Magubane, Team Energy, state owned

entities reporting to the DoE, and all our stakeholders, together we have made a contribution to the

betterment of the lives of the people of South Africa and beyond, let me take this opportunity to express

my sincere gratitude for your support during 2011/12.

Ms Barbara Thompson, MPDeputy Minister of Energy


16

1.7 ACCOUNTING OFFICER’S OVERVIEW

Year 2011/12 is the second year that the DoE has been

operating as a stand-alone department. During the year under

review, the DoE has, despite the limited human and fi nancial

resources, continued to deliver on its mandate. The following

are some of the highlights:

1.7.1 Security of Supply and Universal Access to Sustainable Energy

Government, through the DoE, has the responsibility of ensuring security of supply and improving access to sustainable energy to all citizens of our country. This we have done through, amongst others, determining the country’s strategic fuel stocks requirements, ensuring that refi neries are able to produce adequate supplies, ensuring the timely and cost effective delivery of the fi nished product to consumers as well as introducing and implementing appropriate policies that cover the full fuels value chain. The negative developments in the fuels sector during this fi nancial year, has forced the DoE to review its strategy on the sourcing of fuel from far away countries like the Middle East and pay more focus on the African continent. Through these changes, we were able to avert fuel shortages.

The DoE also extended the 20-Year Liquid Fuels Infrastructure Road Map to incorporate the Refi neries

Audit Project which is aimed at determining the state and soundness of South African refi neries as a

result of the frequent unplanned shut downs and supply disruptions. The outcomes of the refi neries audit

conducted during the year will also assist in determining the extent of the reconfi gurations of the refi neries

for the new cleaner fuel specifi cation and standard.

This year we made the last, but one transfer payment of R 1.5 billion to Transnet for the New Multi-

Product Pipeline (NMPP) for the security of the supply portion. The 24-inch trunk line of the NMPP was

commissioned in January 2012. The NMPP is able to transport petrol, diesel, jet fuel and gas from Durban

to Johannesburg. With the concurrence of the Minister of Finance, the Strategic Fuel Fund was utilised to

pay for the diesel used to fi ll the line. The procurement itself was done through our national oil company,

PetroSA. The pipeline has increased capacity to transport fuel to the inland market and improved the Jet

fuel stock levels in O.R. Tambo International Airport (ORTIA).

The DoE continued to implement the IRP 2010-2030. Processes to lead to the realisation of the 9 600 MW

of nuclear energy are underway. The Cabinet-level oversight committee, chaired by the Deputy President,

Mr Kgalema Motlanthe, as well as the technical committee at departmental level, have been established.

Within the DoE, the process of establishing an independent nuclear branch is almost complete. This will

strengthen our internal capacity and ensure that our plans to include nuclear power as a long term and

stable source of power generation is realised.


17

The development of the different elements of the implementation strategy under the leadership of the

Nuclear Energy Technical Committee continues and address different elements, including legal and

regulatory framework, skills development, stakeholder engagement and communication, nuclear fuel

cycle, industrialisation and localisation, funding and procurement. The Integrated Nuclear Infrastructure

Review was initiated during this reporting period and due for completion in the coming fi nancial year. The

purpose is to systematically and methodically evaluate the gaps in our nuclear infrastructure that could

delay or hamper progress of the nuclear new build. This review is conducted according to the International

Atomic Energy Agency’s Milestones Approach. The amendments of the founding legislation as well as the

development of new legislation for long-term funding provisions for radioactive waste management are

being undertaken within the nuclear energy policy implementation.

Consultations continue on the installation of appropriate radiation detection equipment at identifi ed ports

of entry. This is a multi-stakeholder project involving both international and national stakeholders. When

this project is completed, South Africa will be able to prevent illicit traffi cking of nuclear materials through

our ports of entry.

During the year under review, we continued to engage with both our local and international partners

on the subject of security of energy supply and universal access. These discussions were in ensuring

that Africa will in the near future be able to energise economic, social and environmental developments

using a diversity of clean energy sources. Among these initiatives was the hosting of the Africa Energy

Ministers’ Conference in September 2011 which was attended by more than 40 international energy

ministers. This conference was a precursor to COP 17 that was held in November and December 2011.

The African Ministers’ Conference came out with the Johannesburg Declaration which highlighted the need

for funding, technology and skills transfer for the continent in the area of clean energy. The conference

outlined projects of priority and made a conscious decision to support climate change initiatives through

the deployment of sustainable energy programmes.

1.7.2 Important Policy Decisions and Strategic Issues Facing the Department

The IRP was promulgated in May 2011 and outlines the required new generation capacity for the period

up to 2030. The IRP includes the different technologies required to ensure that power generation is cost

effective, minimises water usage and mitigates adverse climate change. The funding of the projects

under the IRP will be premised largely on the extent of tariff increases that are allowed by the NERSA.

The implementation of the IRP started in earnest toward the end of the fi nancial year, with the fl agship

programme – Renewable Energy IPP Bidding Programme. The fl agship programme under the IRP is the

Renewable Energy IPP Bidding Programme for the provision of 3 725 MW of capacity from IPPs. The

process has lived up to expectations by attracting foreign direct investment into South Africa worth about

R 100 billion over a period of 12 months. We are confi dent that this will boost sector employment growth.

More details on other programmes under the IRP are covered in detail in the later part of this Annual

Report.


18

A Request for Proposals (RFP), published in August 2011, provides for the procurement of 3 725 MW

of renewable energy up to 2016. In addition, a Request for Information (RFI) was issued to assess the

extent of independent power projects that could be introduced side by side with Eskom to improve our

energy security outlook. The procurement of alternative sources of energy from the private sector is

motivated by the urgent need for new generation capacity to alleviate the current energy constraints.

The development of the Integrated Energy Plan (IEP) continues, and by the end of the fi nancial year

broad public stakeholder consultation had been undertaken. In developing this plan, a holistic approach

is adopted to plan for our future energy needs as we seek to ensure that environmental, climate change,

social development and economic growth are considered in a balanced manner. In March this year,

we hosted an Energy Planning Colloquium which was attended by subject matter experts and interest

groups. While we obtained a wealth of constructive viewpoints and comments on our processes and

approach, there was a call for more stakeholder consultations to provide input into the plan. We will

continue to engage with various experts during the development of the IEP next year.

1.7.3 Signifi cant Events that have taken place during the Year

The DoE co-hosted COP 17 in November 2011. A total of 26 energy side events were hosted during

the conference, focusing on clean energy and climate change. Together with our social partners we

launched the energy effi ciency campaign during COP 17. The SARi was also launched during COP with

the founding partners UK, Denmark, Norway, Germany and the European Investment Bank signing a

Declaration of Intent. SARi aims to design and facilitate the fi nancing arrangements needed to enable a

critical mass of renewables.

During COP 17, the Minister also announced 28 preferred bidders for Window One of the Renewable

Energy IPP Procurement Programme, which were selected following an evaluation process that took

place after the bids were submitted on 04 November 2011. The preferred bidders for Bid Window One

were expected to reach fi nancial close by the end of June but have not thus far due to intergovernmental

approval processes. On 05 March 2012, 79 bids were received for the Second Window, of which 18 were

selected and announced as preferred bidders in May 2012 and are expected to reach fi nancial close by

February 2013. From both windows, 2 460 MW have been committed and are expected to be in the grid

by 2016. This will alleviate the current constraints on electricity supply, diversify the energy resources mix

in the country, bring in private sector investment into the generation industry as well as promote economic

development through localisation and job creation.

1.7.4 International Relations

The DoE’s approach to international relations and engagements continued to be focused on securing

the country’s energy supply through introducing, maintaining and sourcing agreements with countries of

interest. Developments in the clean energy space have resulted in the signing of bilateral and multilateral

agreements that promote clean energy, provide funding proposals with institutions like the World Bank

and participating in global energy bodies. During the year we reviewed the DoE’s International Relations


19

Strategy, MoUs and other agreements signed by the DoE to ensure their relevance. Our International

Relations Strategy has been aligned to the country’s International Engagement Policy addresses the

latest International developments in the Energy Sector.

There has been a signifi cant increase in the number of international trips undertaken by the DoE this year.

Most of the increase has been as a result of the negative developments in security of fuel supplies as well

as the positive engagements in the area of clean energy.

For the 2011/12 fi nancial year, the DoE received a budget allocation of R 6.2 billion, and 99% of our

budget was spent by year end. The necessary governance structures in fi nance, human resources,

internal audit, risk management and fraud prevention and SOE oversight have been put in place, though

in most cases with very limited capacity.

In conclusion, it is my pleasure to report to Minister, Ms Dipuo Peters; Deputy Minister, Ms Barbara

Thompson; Team Energy; and all our national and international stakeholders, that the DoE has, for the

second year running, received an unqualifi ed audit report from the AG. A special message of gratitude

is extended to our principals, Team Energy, SOEs reporting to the Minister of Energy, participating

government departments and other entities for their tireless efforts in making sure that we deliver on our

mandate and provide services to our fellow citizens.

Thank you.

Ms Nelisiwe MagubaneDirector-General: Energy


20

Section 2Information on Predetermined Objectives


22

2.1 OVERALL PERFORMANCE

2.1.1 Voted Funds

Main Appropriation R’000

Adjusted Appropriation R’000

Actual Amount Spent R’000

(Over)/Under ExpenditureR’000

6 089 902 6 200 909 6 174 262 26 647

Responsible Minister Minister of Energy

Administering Department Department of Energy (DoE)

Accounting Offi cer Director-General (DG) of the DoE

2.1.2 Aim of Vote

The aim of the DoE is to formulate and exercise oversight regarding the implementation of overall

energy policies to ensure access to affordable and reliable energy by all South Africans and to promote

environmentally friendly energy carriers.

2.1.3 Strategic Outcome-Oriented Goals

Strategic objectives

At its November 2011 annual strategic planning session, the DoE reviewed its strategic objectives to,

amongst other things, introduce alignment to Government’s outcome-based planning approach.

The strategic objectives of the DoE, expressed as desired end-states, are as follows:

Ø Energy supply is secure and demand is well managed;

Ø An effi cient, competitive and responsive energy infrastructure network;

Ø Improved energy regulation and competition;

Ø Effi cient and diverse energy mix for universal access within a transformed energy sector;

Ø Environmental assets and natural resources protected and continually enhanced by cleaner energy

technologies;

Ø Mitigation against, and adaptation to, the impacts of climate change; and

Ø Good corporate governance for effective and effi cient service delivery.

Table 1


23

2.1.4 Overview of the Service Delivery Environment for 2011/12

Energy security is integral to the mandate and function of the DoE.

This year, the DoE has been extensively involved in the deliberations on the global energy agenda with the aim of maintaining energy markets stability, encouraging global sustainable investments in the energy sector and the promotion of cooperation between private and public sectors in developing our energy infrastructure.

The DoE has, during the year, signed several Memoranda of Understanding (MoUs) with different countries and institutions. The bilateral relations within the continent have enabled the country to shift and diversify its sources of crude from countries further afi eld, such as the Middle East; and Angola and Nigeria closer to home. Further discussions have been held focussing on the African continent, especially the Southern African Development Community (SADC) region in the area of electricity collaboration.

Increasing access to energy through electrifi cation

As much as our country is blessed with an abundance of coal, climate change challenges are forcing us to revisit our future power development plans. With the implementation of the Integrated Resource Plan (IRP) 2010 this year, critical steps in this direction that will ensure positive results in the near and long-term future have been taken. There is an urgent need for us to intensify our efforts towards energy diversifi cation through grid and off-grid technologies. The White Paper on Energy Policy states that: “Government will evaluate the impact of the National Electrifi cation Programme and will amend the electrifi cation policy and strategy from time to time”. During the year under review, the DoE started the process of reviewing the overall performance of the Electrifi cation Programme. Among the initiatives undertaken was the hosting of the Electrifi cation Indaba in March 2012 in Durban, which was attended by more than 200 stakeholders. Amongst the issues raised at the Indaba were the shortcomings of the current electrifi cation programme and the urgent need for the development of a new implementation strategy that would address planning and delivery, and access and funding. The DoE has commenced with the process of addressing these shortcomings with the assistance of the International Finance Corporation in order to increase the rate of new connections of households to the grid.

Petroleum

The energy sector has received much international attention given the political developments in the oil-producing countries which have fermented market fears of instability in the world’s largest oil producing region. These political changes happened at a time when the global economy was still struggling to deal with an economic recession and fi nancial instability. These developments have led to a reduction in crude oil production and the subsequent increase in prices which lead to energy market volatility. We have also witnessed a rollercoaster of fuel prices, the increases of which were mainly caused by geopolitical upheavals and associated exploitation of the situation by commodity traders. The move of crude oil prices from US$ 100 to US$ 120 per barrel happened in a short space of time.


24

As a result of the identifi ed constraints throughout the liquid fuels supply chain, the DoE embarked on a

process to develop a Liquid Fuels Infrastructure Road Map. One of the key objectives of this Road Map

is to enable Government to ensure that South Africa has access to reliable, affordable, clean, suffi cient

and sustainable sources of energy to meet the country’s liquid fuel demand.

In addition, in dealing with the supply challenges of refi neries, last year the DoE embarked on a process

of conducting an audit of our refi neries. The purpose of the audit was to assess the state of our refi neries

and obtain an understanding of their current capacity.

A preliminary investigation indicates that the country’s refi neries are experiencing reduced production

levels, which is equally a threat to liquid fuels security of supply.

Work was started during the year on the development of the Liquid Fuels Infrastructure Road Map. One

of its objectives is to enable Government to ensure that South Africa has access to reliable, affordable,

clean, suffi cient and sustainable sources to meet the country’s liquid fuel demand. The Road Map will

form the basis for the implementation of the Presidential Infrastructure Coordinating Commission (PICC)

Strategic Implementation Project with regard to refi nery upgrades and development, and we will make

recommendations on the future of the refi nery infrastructure in the country.

Clean and renewable energy

South Africa generates most of its electricity from coal. Coal is abundant and electricity generated from coal

is relatively cheap compared to other sources of energy in the production of electricity. Given the climate

change imperatives and the need to reduce greenhouse gas emissions, the DoE has been exploring the

options available to us for greenhouse gas emission mitigation. Carbon Capture and Storage (CCS) are

potential technologies that could be deployed at commercial scale to reduce carbon dioxide emissions

into the atmosphere.

The DoE has had engagements with the Clean Energy Ministerial (CEM) to collaborate to learn and

exchange information on clean energy solutions, renewable energy and CCS technologies, amongst

other things. The CEM is a high-level global forum of Ministers of Energy from 28 like-minded countries to

promote policies and programmes that advance clean energy technology, share lessons learnt and best

practices, and encourage transition to a global clean energy economy. The DoE has been given fi nancial

support to develop local capacity in research institutes and universities to initiate training at postgraduate

level to enhance the country’s state of readiness to deploy CCS technology once commercialised. As

a result of the fi nancial support secured through bilateral and multilateral relations, the South African

National Energy Development Institute (SANEDI) has been able to operate the CCS Centre for conducting

research. SANEDI has developed a CCS atlas of South Africa, and donor funds secured through bilateral

relations are being used to conduct defi nitive studies in the storage capacity of identifi ed sites in the

country.


25

The DoE has also worked on the South African Renewable Energy Initiative (SARi), a project that connects

three interrelated aspects: energy security, industrial development, and fi nancial support. SARi aims to

establish and facilitate an international fi nancing partnership to enable investment in the deployment

of renewable energy, and the development of industrial capabilities associated with renewable supply

chains through securing a critical mass of renewable energy without imposing undue burden on the fi scus

or the South African consumer. The funding mechanism being developed will combine climate-related

grants, low cost loans and risk guarantee instruments from international sources with modest amounts

of domestic funds that may be secured publicly or from private energy users. In line with this objective,

the DoE has signed a Declaration of Intent (DoI) with Germany, the United Kingdom, Denmark, Norway,

and the European Investment Bank (EIB). Several engagements with other potential partners are also in

progress. This agreement will lead to the establishment of a fund to assist in the deployment of renewable

energy.

International relations

The DoE has engaged with several stakeholders to ensure that we access information, technology,

funding and best practices in order to contribute to the security of energy supply for the country.

At a bilateral level, the DoE signed seven agreements/DoIs with the following countries and organisations:

IEA (International Energy Agency), Swiss Confederation, Ghana, Lesotho, Denmark, Korea, and the

Democratic Republic of Congo (DRC). Mainly these agreements cover the following areas of cooperation:

access to capacity building, funding, technology, exchange of information, and development of energy

infrastructure on the continent with the objective of increasing generation capacity.

The DRC/South Africa MoU on the Grand Inga Project was also signed during the year. Once implemented,

this project has the capacity to generate 40 000 MW of hydroelectricity, which will lead to considerably

accelerated energy infrastructure development of the continent.

The DoE also played a signifi cant role during the 17th Conference of the Parties (COP 17/CMP7

Conference) held November to December 2011 in Durban by hosting 26 energy side events on clean

energy that were well attended by both local and international stakeholders. In preparation of COP 17/

CMP7, the DoE hosted the African Energy Ministers Conference that was attended by representatives

from more than 45 countries and 40 Ministers of Energy from the African continent. The conference

resulted in the Johannesburg Declaration, and the resolution highlighted the urgent need for the continent

to secure clean, affordable, accessible and sustainable energy carriers for all and to reduce energy

poverty. The major drivers for increased energy access were identifi ed as funding, technology, technology

localisation, skills development and ensuring that the energy sector developments create jobs on the

continent.


26

Training, skills development and localisation

Training is of the essence in the energy sector, and most MoUs that have been signed include the

training aspects. Departmental offi cials have been trained through the opportunities secured via various

multilateral and bilateral agreements. The IAEA (International Atomic Energy Agency), China and IEA

have provided training annually to South Africans and this has enhanced the nuclear-related skills base

in the country as well as competence in other fi elds such as renewable energy, energy effi ciency and

energy planning. Several bilateral relations have availed opportunities for training either in policy or

technical skills in the fi elds of CCS, renewable energy, energy effi ciency and nuclear energy.

Report on virements between the main appropriation allocations

During the 2011/12 fi nancial year, the constrained fi nancial environment led to the DoE’s submission to

the National Treasury (NT) to obtain approval from the NT in accordance with Section 43 (4) of the Public

Finance Management Act (PFMA), 1999 (Act No. 1 of 1999) for the re-classifi cation of R 57.32 million for

the 2011/12 fi nancial year, originally appropriated as transfers and subsidies under Programme 3: Energy

Regulation for the Renewable Energy Finance Subsidy Offi ce (REFSO) and the Working for Energy

Project to provide funding for the operational activities of the DoE under Programme 1: Administration

(R 28.3 million), Programme 2: Energy Policy and Planning (R 6 million), Programme 3: Energy Regulation

(R 19.02 million) and Programme 5: Nuclear Energy and Regulation (R 4 million).

In response to the above, the NT granted approval to shift an amount of only R 41.32 million appropriated

as transfers and subsidies for the REFSO, on condition that a provision is made from the approved funds

for the offi ce accommodation lease cost of R 21.8 million and the Independent Power Producer (IPP) unit

set-up costs, estimated at R 4 million.

The Accounting Offi cer also granted a fi nal virement approval on 24 April 2012 to utilise savings from

programmes towards the defrayment of excess expenditure under other programmes within the vote and

to align budget allocations with actual expenditure for the 2011/12 fi nancial year as follows:


27

Appropriation per Programme – 31 March 2012

2011/12

Programmes Adjusted Appropriation

Shifting of Funds

(after AENE)

Current Budget

Virement (after

AENE)

Final Appropriation

Percentage of Virement to Adjusted

Appropriation

R’000 R’000 R’000 R’000 R’000 %

1 Administration 176 340 33 045 209 385 (4 824) 204 561 (2.74)

2 Energy Policy & Planning

1 544 708 - 1 544 708 1 077 1 545 785 0.07

3 Energy Regulation

573 431 (33 045) 540 386 1 186 541 572 0.21

4 National Electrifi cation Programme

3 264 555 - 3 264 555 1 025 3 265 580 0.03

5 Nuclear Energy & Regulation

641 875 - 641 875 1 536 643 411 0.24

Total 6 200 909 - 6 200 909 - 6 200 909 100.00

Details of the above listed approvals are listed in the fi nancial section of this report.

Rollover funds

On 31 March 2012, the DoE had an unspent amount of R 26.65 million. The DoE submitted a request to

the NT to roll funds of R 26.84 million over from the 2011/12 fi nancial year to the 2012/13 fi nancial year,

and included the following:

Ø Electricity Distribution Industry Holdings (EDIH), transfer payment of R 11.758 million that was not

disbursed due to winding up of the entity.

Ø 2010 FIFA Confederation and Soccer World Cup (SWC) Local Organising Committee (LOC), transfer

payment of R 1 million as a surplus.

Ø Non-personnel current expenditure of R 8.10 million that was not paid to service providers before 31

March 2012. Motivations are provided in the attached Annexure.

Ø Capital expenditure of R 5.32 million.

Ø Software and intangible assets of R 0.671 million.

Table 2


28

Key achievements/highlights for 2011/12Highlights of the DoE’s key achievements are listed in the following table:

DoE’s Strategic Objectives

Key Achievements

1. Energy supply is secure & demand is well managed

Ø The DoE implemented the IRP 2010 during the year, after it was approved by Cabinet in March 2011.

Ø A further R 1.5 billion was transferred to Transnet for the construction of the New Multi-Product Pipeline (NMPP). The pipeline was operationalised in December 2011, improving the supply of jet fuel to OR Tambo International Airport (ORTIA) & other products to inland destinations.

Ø Signing the MoU on the Grand Inga Project in November 2011 (between SA & DRC) paves the way for SADC to exploit the potential of Grand Inga to generate approximately 40 000 MW of hydro power.

Ø The fl agship programme of the IRP 2010, the Renewable Energy IPP Bidding Process was launched this year (see details in no. 6 on the opposite page).

2. An effi cient, competitive & responsive energy infrastructure network

Ø Initiation of the Approached to Distribution Assets Management (ADAM) to support the electricity distribution network.

Ø The number of connections that can be added to the electricity distribution network are limited. In most of the rural areas, the high to medium voltage networks are constrained due to historically poor infrastructure. In order to address this bottleneck in the delivery of new connections, the Integrated National Electrifi cation Programme (INEP) has embarked on a programme to make increased funds available for the rehabilitation of this infrastructure. During the 2011/12 fi nancial year a total of 503 km of new MV lines were built & energised, four new substations were completed & an additional four are in the fi nal phase of completion.

Ø NMPP (mentioned in no. 1 above).

3. Improved energy regulation & competition

Ø The Independent System and Market Operator (ISMO) Bill sets out to improve the operation effi ciencies in the electricity supply industry, by putting in place the institutional mechanism that unbundles the generation, transmission & trading functions. This Bill was introduced in Parliament for deliberation.

Ø The Regulatory Accounts System (RAS) margin models were completed & approved during October 2011. The RAS margins were implemented into the fuel price structures in December 2011.

4. Effi cient & diverse energy mix for universal access within a transformed energy sector

Ø The Renewable Energy IPP Bidding Programme was initiated during the year. Twenty-eight successful bidders were selected from Window One announced at COP 17 in December 2011, for a total 1 416 MW through wind & solar technologies. Window Two closed on 5 March 2012 (1 200 MW offered).

Ø In November 2011, Cabinet approved the establishment of the National Nuclear Energy Executive Coordination Committee (NNEECC) to oversee the decision making around the Nuclear Build Programme. The NNEECC is headed by the Deputy President & is the authority for ensuring general oversight of the Nuclear Energy Expansion Programme.


29


Key Achievements

5. Environmental assets & natural resources protected & continually enhanced by cleaner energy technologies

Ø The second CCS Research Conference was held on 24-28 October 2011 in Midrand, South Africa. The purpose of the Conference was to disseminate the researchers’ progress on CCS in South Africa. In conjunction with the Conference, a number of workshops on the following were held: CO2 Injection Projects, the CCS legal & regulatory framework, & public outreach & risk assessment. The DoE coordinated the formation of the Interdepartmental Task Team on CCS. The inaugural meeting was held on 21 November 2011. Cabinet endorsed the CCS Road Map in its Cabinet meeting that was held in Pretoria on 3 May 2012.

Ø In March 2012, after a year of measurements, the DoE launched the fi rst verifi ed numerical wind atlas based on international standards. The main objective of the Wind Atlas Project of South Africa (WASA) is to improve knowledge & quality of wind resource assessment methods & tools, as well as to ensure the availability of tools & data for planning & application for wind farm development, off-grid electrifi cation & extreme wind studies. The project provides an updated overview of the wind climate based on reliable wind data using contemporary models. The results will be based on data obtained from 10 measurement stations located in the Western Cape & some parts of the Northern Cape & Eastern Cape.

Ø In addition to this, the DoE, together with the Danish Embassy, embarked on a wind awareness campaign by, amongst others, the distribution of educational material with the Department of Basic Education. The campaign aims to dispel myths on wind energy, and provide actual information to ensure wider understanding.

Ø SARi was launched at COP 17, with the founding partners UK, Denmark, Norway, Germany & the European Investment Bank signing a DoI. SARI’s aim is to unlock public & private, and domestic & international funding to scale up renewables. Its objective is to design & facilitate the fi nancing arrangements needed to enable a critical mass of renewables.

6. Mitigation against & adaptation to the impacts of climate change

Ø The DoE co-hosted COP 17 in November & December 2011. A total of 26 energy side events were held, focusing on clean energy & climate change.

Ø The DoE also hosted the African Energy Ministers Conference in September 2011 attended by more than 40 Ministers of Energy on clean energy. With the right mix of domestic policies, innovative technologies & international fi nancial support, the African continent can reconcile growth, clean energy & climate change mitigation efforts – this was the message relayed at the conference.

Ø The DoE’s second edition Environmental Management Plan (EMP) and Compliance Report was approved by the Department of Environmental Affairs (DEA) Sub-committee.

Ø Consulted extensively prior to COP 17 with the private sector (i.e. BUSA & NBI) to refocus the Energy Effi ciency Accord into the Energy Effi ciency Network Leadership and this was launched during COP 17, where over 100 companies signed pledges in support of energy effi ciency measures in their activities, including creating awareness nationally. These efforts, through the Industrial Energy Effi ciency (IEE) Programme, are to assist companies in developing Energy Management Plans.


30


Key Achievements

6. Mitigation against & adaptation to the impacts of climate change (continued)

Ø Published the draft Energy Effi ciency Regulations for public comments in October/November 2011. Consolidation of the comments has since led to the re-drafting of the regulations in the last quarter of 2011/2012 and the fi rst quarter of 2012/2013.

Ø Signifi cant progress was achieved on the Second Review of the Energy Effi ciency Strategy with all key stakeholders.

Ø The DoE with all key stakeholders, through the National Economic Development and Labour Advisory Council (NEDLAC) process, developed and signed off the National Energy Effi ciency Campaign Strategy in November 2011.

Ø The DoE played a key role in the inputs during the development and fi nalisation of the National Climate Change Response White Paper (NCCRWP) led by the DEA with special focus on the energy sector. The NCCRWP was approved by Cabinet in October 2011. The NCCRWP sets out a period of two years (i.e. ending in 2013) for all sector departments to lead their respective sectors to develop climate change strategies, which in this case, the DoE is the lead in the energy sector.

7. Good corporate governance for effective & effi cient service delivery

Ø 99.57% of the 2011/12 budget allocated was utilised.Ø The DoE obtained unqualifi ed audit opinion from the Auditor-General South Africa

(AGSA) for the 2010/11 fi nancial year.

2.1.5 Overview of the Organisational Environment for 2011/12

The limited baseline allocation of the DoE has continued to pose challenges for the DoE to fully implement

its approved organisational structure. As a result of the aforementioned, the implementation of the interim

organisational structure has continued since its inception in 2010 to date. During the year under review

the DoE has, as a result of limited fi nancial resources, operated with two line function branches of the

organisational structure of the defunct Department of Minerals and Energy (DME):

Ø Branch: Hydrocarbons and Energy Planning; and

Ø Branch: Electricity, Nuclear and Clean Energy.

The NT is continuously being engaged in this regard and the DoE is continuously exploring creative

ways to ensure that it delivers effectively on its mandate with the limited capacity at its disposal. The

available human resource capacity has continued to be overstretched with voluntarily work for prolonged

hours to ensure delivery on the outcomes as agreed to between the Minister and the President. With

the appointment of additional employees within support services components, it became imperative that

additional offi ce space had to be procured as the current offi ce space was not enough to cater for the

needs of the DoE. The split of the DME coincided with the relocation process, which did not cater for the

needs of the DoE as a standalone entity. The procurement of alternative offi ce space for headquarters

and some regional offi ces was administered by the Department of Public Works (DPW) in line with the

provisions of Government Immovable Asset Management Act (GIAMA). A lease agreement was, as a

Table 3


31

result of the aforementioned, signed by the DPW with the new landlord on behalf of the DoE. The DoE will be moving to its new premises next year.

Financial constraints have also contributed to the DoE being able to coordinate 15 Public Participation Programmes (PPP) instead of 20 for both the Minister and Deputy Minister as decided by Cabinet. On the legal services front, service delivery targets were reduced to 50% because of the limited capacity within the legal services. The DoE has continued to implement the Human Resource Development (HRD) Strategy, and 443 employees were trained in various line functions and administrative programmes. As a result of this remarkable achievement the DoE has been awarded two Certifi cates of Outstanding Performance by the Public Administration Leadership and Management Academy (PALAMA) for the Mass Public Service Induction Programme and the Most Developed Department in the Area of Staff Training. Because of the limited budget, only 26 employees were awarded bursaries and 66 unemployed graduates were engaged on an internship programme.

The DoE has continued to participate in the governance structures of both the Chemical Industries Education and Training Authority (CHIETA) and Energy and Water Sector Education and Training Authority (EWSETA) to ensure that the two Skills Education Training Authorities (SETAs) provide training in the scarce skills areas as required by the energy sector. EWSETA has committed R 3 million for placement of interns in various municipalities to be trained in line with the service delivery imperatives of INEP.

Following the strategic review session that was held towards the end of last year, it became evident that the approved structure that was not funded needed to be revised to ensure that the DoE has the capacity to deliver on the country’s energy needs for growth and economic development as well as the capacity to deliver on the 12 Government Outcomes. This makes sense because “structure follows strategy” and it is anticipated that this initiative will enable the DoE to have a structure that is aligned to its current strategic direction, to be responsive to the volatility and complexity of the energy environment, to meet global imperatives on climate change and to effectively deal with constraints on the supply of traditional energy sources versus alternative sources.

To this end, the DoE will be in a position to deliver on user needs pertaining to demand side management, access and effectively deal with economic implications. The newly approved macro organisational structure thus provides for the following key line function components:Ø Energy Policy and Planning;Ø Petroleum and Petroleum Products Regulation;Ø Nuclear;Ø Clean Energy; and Ø Programmes and Projects.

The Policy and Planning Branch will develop, maintain and implement an integrated energy policy and planning framework. The planning function will comprise the Liquid Fuels Plan, IRP and Integrated Energy Plan (IEP). The energy data repository has been centralised within this branch, thus making information in this regard readily available and accessible with ease. The Petroleum and Petroleum Products Regulation


32

Branch is responsible for handling and managing the regulation of petroleum and petroleum products,

and will deal with licensing compliance and pricing matters and also import and export functions. The

Nuclear Branch will deal mainly with the management of the SA nuclear energy industry and ensure

overall control of source and special nuclear materials in terms of nuclear legislation. The Clean Energy

Branch will manage and facilitate the development and implementation of clean energy initiatives by

advancing energy effi ciency in South Africa ensuring the integration of off-grid renewable energy into

the mainstream energy supply, and will manage climate change and energy environmental issues within

the energy sector. The Programmes and Projects Branch will manage, coordinate, monitor and report on

energy programmes and projects relating to electrifi cation as well as programmes and projects focused

on the development, improvement and transformation of the hydrocarbons refi nement, transmission and

distribution industry and infrastructure. This branch will furthermore identify, implement, manage and co-

ordinate programmes and projects aimed at empowerment/mainstreaming/upliftment of disadvantaged/

vulnerable groups, and raise public awareness and oversee the IPP Programme. The structure will be

implemented in phases, as and when funding is made available through the Medium Term Expenditure

Framework (MTEF) process.

2.1.6 Key Policy Developments and Legislative Changes

Legislation tabled in Parliament during 2011/12

Electricity Regulation Amendment Bill

The proposed amendments will:

Ø expedite the establishment of new generation capacity;

Ø provide alignment between the buyer, procurer and the regulator; and

Ø provide more clarity in certain sections of the Act to avoid misinterpretation.

The Bill was published in the Government Gazette for public comments in December 2011 with the

closing date of 17 February 2012.

The National Energy Regulator Amendment Bill

The proposed amendments will ensure that:

Ø the energy sector is regulated effectively given the need to increase private sector participation in this

space;

Ø the current governance challenges facing the energy regulator are eliminated by implementing an

effective governance structure; and

Ø there is an effective and effi cient regulatory framework.

The Independent Systems and Market Operator Bill

The proposed legislation aims to set up the ISMO as a national public entity. It is also intended to eliminate

any confl ict of interest between the buyer and seller of electricity in South Africa. A key function of the

envisaged ISMO is to maintain a balance between supply and demand of electricity in South Africa. It will


33

also be responsible for concluding electricity import and export agreements. The bill calls for a phased

deployment model for the ISMO.

The ISMO will therefore be responsible for:

Ø generation resource planning;

Ø transmission service and implementation;

Ø buyer; and

Ø system operations and expansion planning.

2.1.7 Departmental Revenue, Expenditure and Other Specifi c Topics

Collection of departmental revenue

Departmental revenue is derived from the receipt of administration fees for licence applications processed

in terms of the Petroleum Products Amendment Act, 1977, as amended. Revenue decreased from

R 3.9 million in 2010/2011 to R 3.4 million in 2011/2012, at an average annual rate of 12%, as a result of

decreased licence fee collections. Over the medium term, revenue is expected to increase to R 4.2 million,

at an average annual rate of 2.8%, in line with projected increases in the number of new applications

received.

In line with the DoE’s strategic objectives, the DoE targeted to collect R 3.9 million in revenue in the

2011/12 fi nancial year. The total revenue collected is R 3.4 million, which is R 486 000 less than the

projected revenue target. This is mainly due to the lower than expected application fees collected.

The table below should be used to provide a breakdown of the sources of revenue:

Detail of Departmental Receipts

Economic Classifi cation 2007/08 2008/09 2009/10 2010/11 2011/12 2011/12 2011/12

R’000 Actual Actual Actual Actual Target Actual Variance

Tax receipts - - - - - - -

Sales of goods & services other than capital assets

1 201 3 343 4 429 3 706 3 867 2 872 995

Administrative fees 1 161 3 300 4 384 3 537 3 820 2 804 1 016

Other sales 40 43 45 169 47 68 (21)

Interest, dividends & rent on land - - - 14 - 168 (168)

Financial transactions in assets & liabilities

- - - 197 - 341 (341)

Total Departmental Receipts 1 201 3 343 4 429 3 917 3 867 3 381 486

2.1.8 Departmental Expenditure

The original appropriation received for the DoE on 1 April 2011 amounted to R 6.09 billion. In the adjusted

budget the appropriation was increased by R 111 million to a total budget allocation of R 6.2 billion for the

2011/12 fi nancial year.

Table 4


34

The increase was appropriated to cover approved rollover funds of R 88.22 million relating to the following:

Approved Rollover 2011/12 R’000

CEF

Upington Solar Park Feasibility Study 18 191

Vaal Dam Hydro Project 2 000

Installation of solar water heaters by non-grid service providers 57 000

Auditing the compliance of oil companies to the South African Petroleum and Liquid Fuels Charter and Empowerment Framework

1 063

IAEA membership fees 8 462

Socio-Economic Impact Study 1 500

Total 88 216

An additional amount of R 1.599 million was also appropriated for higher personnel remuneration

increases than were provided for in the 2011/12 budget allocation. An additional amount of R 21.192

million was also appropriated additionally as a transfer payment to provide operational funding to the

National Nuclear Regulator (NNR) following the sudden and unexpected closure of the Pebble Bed

Modular Reactor Company (PBMR) which led to the withdrawal of the PBMR fees and consequently a

loss of NNR revenue.

Of the total budget of R 6.2 billion appropriated, the major portion was utilised for transfers to

municipalities, state-owned entities (SOEs) and other organisations (94%). Compensation of employees

contributed to 2.98% and operational funding for goods and services amounted to 2.52%. Of the total

budget appropriated to the DoE, approximately 5.5% was utilised for operational costs. The balance of

the funding was earmarked funding. The total spending for the year amounted to R 6.174 billion (99.57%)

and unspent budget amounted to R 26.65 million or 0.43% of the total budget.

Table 5


35

2.1.9 Transfer Payments

As at 31 March 2012, the DoE disbursed transfer payments of R 5.829 billion, which represented 99.8%

of the budget for the year to public entities, municipalities and implementing agencies. Major transfer

payments are refl ected in the following table:

Transfer Payments Original Budget 2011/12

Year to Date Transfer

Payments – up to March 2012

Available Balance March

2012

Actual Spending for the Year as

Percentage of Total Budget Allocation

R’000 R’000 R’000 %

Working for Energy Project 25 000 25 000 - 100.00

REFSO 20 191 20 191 - 100.00

SANEDI 20 100 20 100 - 100.00

Transnet Pipelines 1 500 000 1 500 000 - 100.00

EEDSM – Eskom 118 800 118 800 - 100.00

EEDSM – Munic 280 000 280 000 - 100.00

Nuclear Energy Corporation of South Africa (NECSA)

586 034 586 034 - 100.00

NNR 35 430 35 430 - 100.00

EDIH 11 758 - 11 758 -

2010 SWC LOC 282 000 281 000 1 000 99.65

INEP – Eskom 1 737 812 1 737 811 1 100.00

INEP – MuniC 1 096 612 1 096 611 1 100.00

INEP – Non-grid 127 861 127 860 1 100.00

Households 349 163 186 46.70

Total Transfer Payments 5 841 947 5 829 000 12 947 99.78

The under-spending can be attributed to the following:

Ø Cabinet decided in December 2010 that the EDIH process should be discontinued and, in terms of this

decision, EDIH ceased to exist on 31 March 2011. This has had the effect that the functions relating

to the restructuring of the electricity distribution industry have reverted to the DoE with effect from

1 April 2011. The DoE’s strategic plan addresses this by specifi cally proposing to develop a funding

and implementation plan to reduce the electricity distribution infrastructure maintenance backlogs of

R 27.4 billion to R 15 billion by 2015. During the 2011/12 fi nancial year, an amount of R 11.758 million

was appropriated under Programme 3: Energy Regulation for the winding down process of EDIH.

Based on the fi nancial position of EDIH after its closure, suffi cient funding was available to settle

outstanding legal matters and claims against the company, hence this amount remained in the DoE

as at 31 March 2012. The DoE requested approval from the NT to utilise the R 11.758 million being

the 2011/12 appropriated funding for EDIH to initiate the ADAM Programme. No funding is currently

available within the DoE to complete the initial work for the urgent analysis that has to be done to

implement ADAM. It was therefore requested that the R 11.758 million be reclassifi ed and rolled over

Table 6


36

to the 2012/13 fi nancial year in order to implement this mini ADAM process as an initial phase of the

ADAM Programme to assist the struggling distributors.

Ø The under-spending of R 1.04 million under Programme 4: National Electrifi cation Programme

represents 0.03% of the budget. This is attributed to R 1 million that was not spent in relation to an

allocation of R 282 million made to the 2010 SWC LOC.

2.1.10 Public Entities and Other Agencies

All entities that receive funding from the fi scus provide written assurance on an annual basis that they

have implemented effective, effi cient and transparent fi nancial management and internal control systems

in compliance with Section 38 (1) (j) of the PFMA. The Certifi cates of Assurance signed by the Chief

Executive Offi cer (CEO) and Chief Financial Offi cer (CFO) of the entities are submitted to the DoE

prior to any grants being transferred. The purpose and mandate for each of the entities is listed under

Section 1: General Information.

The following transfers were made to the following SOEs reporting to the Minister of Energy:

Nuclear Energy Corporation of South Africa

NECSA received a government allocation of R 586 034 million to carry out its mandate.

National Nuclear Regulator

The NNR received R 35 430 million for its operations for the 2011/12 fi nancial year. The NNR is also

funded from fees paid by authorisation holders, which are approved annually by the Minister in terms of

Section 28 of the National Nuclear Regulator Act, 1999 (Act No. 47 of 1999).

South African National Energy Development Institute

From 1 April 2011, SANEDI was operationalised as a stand-alone entity which incorporated the South

African Natural Energy Research Institute (SANERI) and National Energy Effi ciency Agency (NEEA) (the

two entities hived off from the CEF group of companies). The Institute received an allocation of R 20.1

million from the DoE for its operations during the year under review and a further R 6 million from the

Department of Science and Technology for its research activities. In addition to this, SANEDI administer

the funds for the Energy Effi ciency Monitoring and Improvement Project funded with R 13.2 million by the

Swiss Development Corporation.

EDI Holdings

An amount of R 11.758 million was allocated to the entity from the fi scus for the 2011/12 fi nancial year

to enable them to fi nalise the winding-up process. This amount was not transferred during the fi nancial

year under review as adequate fi nancial resources were still available in the entity’s books to enable the

administrator to conclude the process.


37

2.1.11 Conditional Grants and Earmarked Funds

Conditional grants

During the 2011/12 fi nancial year, conditional grants allocated to the DoE through the annual budget process amounted to R 1.377 billion. These grants were paid to several municipalities for the implementation of the electrifi cation projects (R 1.097 billion) and the Energy Effi ciency Demand-Side Management Projects (EEDSM) (R 280 million).

Earmarked funds

The following allocations were listed as specifi cally and exclusively appropriated in the 2011 Appropriation Bill and were subject to the following conditions:Ø R 118.8 million was allocated for the EEDSM Project and intended for transfer to Eskom for

implementation.Ø R 25 million for renewable energy to be utilised under the Working for Energy Programme. This

programme is implemented by SANEDI on behalf of the DoE by enhancing the renewable energy mix focusing on areas with a potential for job creation, energy access and energy management.

Ø R 1.096 billion was earmarked for INEP to be transferred to Eskom and municipalities for the electrifi cation projects.

Ø R 1.5 billion was allocated for the construction of National Multi-Product Petroleum Pipeline was the second of the three instalments amounting to R 4.5 billion to be transferred to Transnet to ensure security of supply of petroleum products.

As at 31 March 2012, the DoE had disbursed 100% of all earmarked funds to the relevant entities and municipalities in accordance with the conditions imposed by the 2011 Appropriation Bill.

2.1.12 Capital Investment, Maintenance and Assets Management Plan

Capital investment

The DoE is in the process of developing and implementing the Capital Investment, Maintenance and Assets Management Plan. This will be fi nalised in the 2012/13 fi nancial year. The DoE has developed and implemented an Asset Management Policy in the current fi nancial year.

An amount of R 4.029 million was spent on capital assets in the 2011/12 fi nancial year. The majority of assets purchased were computers and computer equipment.

Assets management

The DoE purchased new assets to the value of R 4.029 million during the fi nancial year. In addition, the assets to the value of R 3.1 million were transferred from EDIH and have been included in the DoE’s asset register.

There are no immovable assets and signifi cant assets are motor vehicles and computer equipment. A number of processes and procedures have been implemented to ensure that the asset register is up to


38

date. These initiatives include amongst other things, increasing resources of the Assets Management

Division and the reporting lines for Assets Management changed to enhance internal controls and

conducting of monthly assets verifi cation and reconciliations.

No major maintenance of assets was carried out this year as the DoE’s assets register consists mainly

of new assets.

Maintenance

The DoE is accommodated in leased private properties at Head Offi ce and Regional Offi ces. Head Offi ce

resides at Trevenna Campus in Pretoria, which is a newly constructed building that does not require

any major maintenance services. At Regional Offi ces, the DoE is sharing offi ce accommodation with the

Department of Mineral Resources (DMR), which is the custodian of all operating lease agreements and

is responsible for the payment of leases and claims back the rental portion due by the DoE accordingly.

In terms of the provisions of the lease agreements, the DMR carries out the responsibilities of the lessee.

During the fi nancial year under review, there were no major maintenance works carried out and as such

no costs were claimed back from the DoE.

Expenditure relating to maintenance is limited to maintenance of offi ce equipment, DoE vehicles, IT

equipment and infrastructure. During the 2011/12 fi nancial year, the DoE disbursed R 160 000 for

maintenance of machinery and equipment and R 183 000 for the maintenance of other assets.

The DoE does not have any maintenance backlogs.

2.2 PROGRAMME PERFORMANCE

From 21 to 23 November 2010, the Minister of Energy, the DG, and the DoE’s senior and middle

management met on the outskirts of Pretoria to discuss and set the strategic direction of the DoE for the

forthcoming fi ve-year period. Offi cials from the Presidency and the NT were invited to provide several

presentations in the plenary sessions.

Following the end-of-year holidays, the senior management of the DoE met again on 17 January 2011 for

the purpose of reviewing, amending and approving the high-level objectives of the DoE for the strategic

period as listed on page 22, Section 2.1.3 of this Report. The DoE’s programmes (branches) were then

tasked with the further development of their respective intermediate outcomes and the means (outputs)

by which to achieve their stated objectives. The logic model emanating from these collective efforts is

depicted by way of the graphic in Annexure A.

The strategic plan for the 2011/12 to 2015/16 MTEF period was informed by government priorities, the

2011 State of the Nation Address, the DoE’s contribution to the Millennium Development Goals (MDGs),


39

Government Outcomes and the energy environmental scan. The DoE also introduced the outcomes-

based planning approach of Government and we will be revising the 2011/12 MTEF plan next year for

further compliance.

Below is the the DoE’s response to the 12 Government Outcomes and the MDGs as set out by the United

Nations. The DoE is not a lead department in any of the outcomes listed below, however, the Minister is

a signatory to the following seven outcomes.

2.2.1 Government Outcomes

Government Outcomes Departmental Programme

Outcome 2: A long & healthy life for all South Africans

Electrifi cation of clinics & health centres through INEP; introduction of more affordable & cleaner source of energy; Liquefi ed Petroleum Gas (LPG) for household heating & cooking needs, Free Basic Electricity (FBE), Inclining Block Tariffs (IBT) & Solar Water Heaters (SWH).

Outcome 4: Decent employment through inclusive economic growth

Energy security project implementation & local industrialisation of the main value chains to sustain economic growth and job creation.

Outcome 6: An effi cient, competitive & responsive economic infrastructure network

Ensure reliable generation, distribution & transmission of electricity, implement IPPs Programme, address the backlog challenges in the maintenance of the electricity distribution infrastructure; the building of the NMPP between Durban & Johannesburg to ensure a reliable & sustainable supply of liquid fuels inland.

Outcome 7: Vibrant, equitable & sustainable rural communities with food security for all

Electrifi cation of rural households & building of bulk infrastructure through INEP concentrating on 23 district municipalities that have been identifi ed by the Department of Cooperative Governance & Traditional Affairs (CoGTA) and the Department of Rural Development & Land Reform (DRDLR) as the areas in the country that have the most deprived municipalities.

Outcome 8: Sustainable human settlement & improved quality of household life

Contribute to support households & business via the Electrifi cation Programme & the job opportunities presented by the Electrifi cation Programme, the Integrated Energy Centres (IECs), the instalation & maintenance of solar systems & SWH.

Outcome 9: A responsive, accountable, effective & effi cient local government system

Electrifi cation of households through INEP & increased service delivery by all municipalities.

Outcome 10: Environmental assets & natural resources that are well-protected & continuously enhanced

Development & implementation of policies to reduce greenhouse gas emissions & climate change impacts, & improve air/atmospheric quality.

Table 7


40

2.2.2 Millennium Development Goals

MDGs The DoE’s Contribution to the MDGs

MDG 1: Eradicate extreme poverty & hunger

The DoE’s focus is on the eradication of energy poverty through the implementation of INEP, energy diversifi cation & affordability, FBE, & IBTs.

MDG 3: Promote gender & equality & empower women

Gender mainstreaming in DoE policies, support of women empowerment initiatives, introduction of clean energy initiatives & enhancement of women’s participation in the energy sector.

MDG 7: Ensure environmental sustainability

Introduction & support of sustainable clean & renewable energy initiatives.

MDG 8: Develop global partnerships for development

International cooperation & collaboration at multilateral, bilateral & trilateral levels on energy issues.

2.2.3 Department of Energy Programmes

The activities of the DoE are organised under the following programmes (interim organisational structure):

Programme 1: Administration

Provides strategic support and management services to the Ministry and the DoE.Ø Subprogramme 1: Executive SupportØ Subprogramme 2: Corporate SupportØ Subprogramme 3: Finance Information and Supply Chain ManagementØ Subprogramme 4: Governance and Compliance (offi ce of Chief Operating Offi cer (COO) Branch)

Programme 2: Hydrocarbons and Energy Planning

Responsible for integrated energy planning to promote the sustainable use of energy resources by developing appropriate policies and regulations that promote the effi cient use of petroleum products, coal, gas and renewable energy sources.Ø Subprogramme 1: HydrocarbonsØ Subprogramme 2: Energy PlanningØ Subprogramme 3: Petroleum Licensing and Monitoring

Programme 3: Electricity, Nuclear and Clean Energy

Responsible for improving and implementing appropriate policies governing the electricity, nuclear and clean energy sectors to promote universal access to electricity by the broader South African population.Ø Subprogramme 1: ElectricityØ Subprogramme 2: Integrated National Electrifi cation Programme (INEP)Ø Subprogramme 3: NuclearØ Subprogramme 4: Clean Energy

Programme 4: Associated Services

Responsible for managing and monitoring the use of funds transferred in support of the DoE’s mandate.

Table 8


41

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and

repo

rted

on p

er

elec

trifi c

atio

n pr

ojec

t.

2. N

o va

rianc

es to

repo

rt

3. Q

uant

ity o

f spe

cial

ised

as

sist

ance

pro

vide

d to

pr

ogra

mm

e &

pro

ject

man

ager

s as

wel

l as

man

agem

ent i

n ge

nera

l & n

umbe

r of p

roje

cts

for

whi

ch in

form

atio

n an

d re

port

are

coor

dina

ted

on p

roje

cts.

N/A

N/A

N/A

3. N

o sp

ecifi

c ta

rget

s w

ere

set f

or 2

011/

12. T

arge

ts to

be

dete

rmin

ed fr

om 2

012/

13.

Tabl

e 9


42

Subprogramme 2: Finance, Information and Supply Chain ManagementPurpose

To ensure alignment of the budget to the DoE’s strategic objectives and related key priorities, including the monitoring of and reporting on donor funding, cash fl ow management, fi nancial management and the monitoring of compliance with the PFMA, and to provide accurate, timely and relevant fi nancial information.

Background information

The CFO’s branch comprises the following components: Financial Planning and Management Accounting, Supply Chain Management (SCM), Information Technology, Expenditure Management and Internal Control and Reporting.

Following the split of the DME and the subsequent establishment of the DoE, all relevant DME policies and procedures were adopted as an interim arrangement during the fi rst year of operation. These policies were subject to review and implementation during the 2011/12 fi nancial year. The branch started the year operating with the critical post of Chief Director: Finance, IT and SCM being vacant. This position was fi lled in December 2011.

Progress and achievements

Progress achieved

The Inventory Policy was approved and is fully implemented. The procedure to deal with irregular expenditure was drafted and communicated to all DoE offi cials.

Irregular expenditure transactions decreased by 80% from the previous fi nancial year. The reported irregular expenditure incurred in 2010/11 fi nancial year was R 111.35 million and has decreased to R 22.26 million for the 2011/12 fi nancial year. The threshold value for procurement of goods and services increased from R 200 000 to R 350 000 and fi nancial delegations were also aligned with the procurement threshold values. The procurement of the database system project was fi nalised.

The procurement of goods and services was done in accordance with the Preferential Procurement Policy Framework Act and the PFMA to ensure fairness, value for money, competitive bidding processes and transparency and to ensure that Black Economic Empowerment (BEE) spending was in accordance with the DoE target. The database, checklists and requisition forms were reviewed and implemented. 95% of creditors were paid within 30 days.

IT systems availability of 98.5% was attained against a target of 95% in an effort to implement effective and effi cient systems. In ensuring baseline defence coverage (antivirus, antimalware, and fi rewall) for the security of information resources, the deployment of up to date antivirus defi nition fi les and implementation of user machine fi rewall had been fully attained. The target of initiating two Information Assurance Awareness Initiatives and its associated indicator of ensuring security of information resources was exceeded by 100%, in that four Information Assurance Awareness Initiatives were attained.

In strengthening the Information and Computer Technology (ICT) governance, three ICT policies have been approved and implemented and an ICT Steering Committee was established and is operational.

A help desk calls resolution of 98.6% was achieved against the target of 96%. In measuring the continuous ICT service delivery improvement, an ICT Batho Pele questionnaire was developed and implemented and an approval rating of above 80% on ICT services has been achieved.


43

The branch continued to implement control and reporting processes to ensure compliance. The review of internal policies and procedures and their implementation, and the strengthening of internal controls to ensure PFMA compliance is a priority area that is being continuously appraised.

Progress partially achieved

The turnaround for processing invoices is 14 days and 95% of creditors were paid within 14 days to the value of R 145 705 938.01. 15% was spent on BEE to the value of R 22 416 307.57 on procurement of goods and services. Although this was partial progress, it is signifi cantly below the equivalent 40% achieved in the previous fi nancial year.

767 system orders were generated to the value of R 187 284 321. The Procurement Plan was submitted to the NT, although not submitted on time.

Progress not achieved

The Travel and Accommodation Policy was not fi nalised due to further consultative process that was required. Vacant positions were not all fi lled due to the work-study investigation still in progress by year end. The Contract Management Strategy is still in the process of being developed.

The DoE procured equipment required for Virtual Private Network (VPN) implementation, however, deployment of the equipment was delayed by lack of access to the shared regional offi ces network rooms.

Reengineering the Petroleum Products Licensing System Project has commenced with the requirements gathering phase, however, development of the system is still in progress.

The branch invited the registration of service providers and 700 were vetted. However, because of technical issues (the IT function found the Intenda system to be corrupt) their information could not be captured on the system. New Terms of Reference (ToR) were developed to acquire a new database system in the next fi nancial year.

Challenges and remedies

The recruitment rate in the DoE has increased by 22% and yet capacity constraints still remain a challenge in SCM. The performance of service providers cannot be effectively monitored due to capacity constraints. Urgent and emergency procurement is also showing an increasing trend, which may lead to the risk of non-compliance of procurement processes.

There were delays in the implementation of the VPN. This has been due to the fact that access to Regional Offi ces, for the purpose of installing network equipment, was restricted. Efforts are underway to resolve the issue of access to shared Regional Offi ces.

The alignment of budgets with strategic plans remained a challenge, taking into consideration the fact that strategic planning sessions and events only took place after the approval of the MTEF budget and 2012 Estimates of National Expenditure (ENE). Budget adjustments and additions were, however, included in the 2012 Adjusted Estimates of National Expenditure (AENE) process to re-align allocated budgets with actual expenditure and high-spending areas.


44

Subp

rogr

amm

e 2:

Fin

ance

, Inf

orm

atio

n an

d Su

pply

Cha

in M

anag

emen

t

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*

1.1

Ens

ure

alig

nmen

t of b

udge

t to

Stra

tegi

c P

lan

& G

over

nmen

t O

utco

mes

.

1.2

Ann

ually

pla

n, c

oord

inat

e,

eval

uate

& c

onso

lidat

e th

e de

partm

enta

l bud

get s

ubm

issi

on

in li

ne w

ith N

T de

adlin

es.

1.3

Sub

mit

in-y

ear m

onito

ring

repo

rts, i

.e. D

epar

tmen

tal

data

base

, rep

ort o

n pr

ojec

ted

&

actu

al re

venu

e &

exp

endi

ture

to

NT,

CFO

, DG

& M

inis

ter b

y th

e 15

th o

f eac

h m

onth

.

1.4

Pro

vide

bra

nche

s w

ith

mon

thly

exp

endi

ture

repo

rts fi

ve

wor

king

day

s af

ter m

onth

end

.

1.5

Mon

itor t

he D

oE’s

spe

ndin

g.

Sta

tuto

ry p

resc

ripts

& g

uide

lines

ex

ist.

Sys

tem

s &

pro

cess

es fo

r co

mpl

ianc

e ex

ist.

Effi

cien

t dis

burs

emen

t of

budg

ets

base

d on

MTE

F al

loca

tions

.

Dev

elop

ed p

olic

ies,

pro

cedu

res

& g

uide

lines

.

1.1

DoE

’s a

nnua

l sub

mis

sion

s in

com

plia

nce

to th

e M

TEF

proc

ess

(AE

NE

, EN

E)

cons

olid

ated

.

1.2

Mon

itor &

repo

rt on

mon

thly

&

qua

rterly

spe

ndin

g pa

ttern

s &

faci

litat

e th

e re

dire

ctin

g of

fi n

anci

al re

sour

ces

to c

ritic

al/

stra

tegi

c ar

eas.

1.3

Pro

vide

mon

thly

fi na

ncia

l re

ports

to b

ranc

hes.

1.4

Pro

visi

on o

f 12

in y

ear

mon

itorin

g re

ports

to b

ranc

hes,

N

T, C

FO, D

G &

Min

istry

.

1.5

Ens

ure

that

the

appr

oved

de

fi cit

is <

=5%

.

1.1

A –

All

rele

vant

repo

rts w

ere

subm

itted

to re

leva

nt s

truct

ures

on

tim

e.

1.2.

1 A

– E

xpen

ditu

re c

ontro

l re

ports

wer

e di

strib

uted

to

Res

pons

ibili

ty M

anag

ers

mon

thly.

1.2.

2 A

– Q

uarte

rly re

ports

co

mpi

led

& p

rese

nted

to th

e E

nerg

y P

arlia

men

tary

Por

tfolio

C

omm

ittee

(PP

C).

1.3

A –

Rep

orts

com

pile

d &

pr

esen

ted

to M

AN

CO

, EX

CO

&

mon

thly

repo

rts a

re s

ent t

o C

ost

Cen

tre M

anag

ers.

1.4

A –

In-y

ear m

onito

ring

repo

rts d

istri

bute

d to

the

CFO

&

Min

iste

r mon

thly

as

per t

he

PFM

A.

1.5

A –

The

DoE

did

not

incu

r a

defi c

it in

201

1/12

fi na

ncia

l yea

r

1. N

o va

rianc

es to

repo

rt.

2.1

Deb

t & re

venu

e du

e to

the

DoE

man

aged

& c

olle

cted

.S

tatu

tory

pre

scrip

ts &

gui

delin

es

exis

t.

Sys

tem

s &

pro

cess

es fo

r co

mpl

ianc

e ex

ist.

Dev

elop

ed p

olic

ies,

pro

cedu

res

& g

uide

lines

.

2.1

Deb

t & re

venu

e du

e to

the

DoE

man

aged

& c

olle

cted

.2.

1 A

– T

he D

oE h

as e

nhan

ced

the

PPA

Ls s

yste

m &

mor

e st

ringe

nt c

ontro

ls h

ave

been

im

plem

ente

d by

the

bank

to

decr

ease

dep

osits

with

out

refe

renc

e nu

mbe

rs.

2. N

o va

rianc

es to

repo

rt.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


45

Subp

rogr

amm

e 2:

Fin

ance

, Inf

orm

atio

n an

d Su

pply

Cha

in M

anag

emen

t

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*

2.2

Dep

artm

enta

l ass

ets

man

aged

.

2.3

Cas

h bo

ok m

anag

ed.

Sta

tuto

ry p

resc

ripts

& g

uide

lines

ex

ist.

Sys

tem

s &

pro

cess

es fo

r co

mpl

ianc

e ex

ist.

Dev

elop

ed p

olic

ies,

pro

cedu

res

& g

uide

lines

.

2.2

Dep

artm

enta

l ass

ets

man

aged

.

2.3

Cas

h bo

ok m

anag

ed.

2.2

A –

The

DoE

has

a fu

lly

func

tiona

l ass

et re

gist

er.

2.3

A –

The

cas

h bo

ok

man

agem

ent h

as im

prov

ed &

th

ere

is m

ore

enga

gem

ent w

ith

the

bank

to e

nsur

e th

e ac

coun

ts

are

corr

ectly

refl e

cted

.

2. N

o va

rianc

es to

repo

rt.

3. D

epar

tmen

tal e

xpen

ditu

re &

cr

edito

rs m

anag

ed.

3. S

tatu

tory

pre

scrip

ts &

gu

idel

ines

exi

st.

Sys

tem

s &

pro

cess

es fo

r co

mpl

ianc

e ex

ist.

Dev

elop

ed p

olic

ies

&

proc

edur

es &

gui

delin

es.

3. A

ccur

ate

& ti

meo

us

disb

urse

men

t ser

vice

s pr

ovid

ed.

3. P

– T

he D

oE p

ays

cred

itors

w

ithin

30

days

. The

re a

re

exce

ptio

ns w

ith v

alid

reas

ons

ther

eof.

3. T

he re

ason

for l

ate

paym

ents

is

mai

nly

due

to la

te re

ceip

t of

invo

ices

or i

ncor

rect

ban

k de

tails

.

4.1

Est

ablis

h a

fully

func

tiona

l S

CM

uni

t in

term

s of

the

best

pr

actic

e.

4.2

Pro

vide

an

inte

grat

ed S

CM

se

rvic

e.

4.3

Ens

ure

com

plia

nce

with

S

CM

pre

scrip

ts.

4. S

tatu

tory

pre

scrip

ts &

gu

idel

ines

exi

st.

Sys

tem

s &

pro

cess

es fo

r co

mpl

ianc

e ex

ist.

Dev

elop

ed P

olic

ies

&

proc

edur

es &

gui

delin

es.

4.1

Dev

elop

SC

M P

olic

y, T

rave

l &

Acc

omm

odat

ion

Pol

icy

&

inte

rnal

pro

cess

es in

line

with

th

e N

T pr

escr

ipts

.

4.2

100

% c

ompl

ianc

e w

ith

SC

M p

olic

ies,

pro

cess

es &

pr

oced

ures

.

4.3

Red

uced

aud

it qu

erie

s.

4.1

P –

Trav

el &

A

ccom

mod

atio

n P

olic

y dr

afte

d,

how

ever

, thi

s is

not

ado

pted

as

yet

due

to th

e ex

tend

ed

feed

back

ses

sion

s &

long

co

nsul

tatio

n pr

oces

ses.

4.2

P –

Not

fully

com

plia

nt

mai

nly

due

to u

rgen

t/em

erge

ncy

proc

urem

ent.

4.3

P –

Par

tial a

chie

vem

ent

audi

t que

ries

has

redu

ced

by

at le

ast 1

0%, h

owev

er, t

he y

ear

end

fi nal

aud

it re

port

is s

till

unde

r way

.

4.1

Furth

er c

onsu

ltativ

e pr

oces

s w

as n

eces

sary

with

al

l sta

keho

lder

s to

reac

h co

nsen

sus

on th

e ch

ange

s pr

opos

ed.

4.2

Pro

cess

es &

pro

cedu

res

wer

e no

t alw

ays

adhe

red

to d

ue

to s

hort

time

fram

es s

tipul

ated

by

end

use

rs fo

r the

rece

ipt o

f th

e go

ods

& s

ervi

ces.

4.3

Awai

ting

the

fi nal

AG

SA

man

agem

ent l

ette

r.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


46

Subp

rogr

amm

e 2:

Fin

ance

, Inf

orm

atio

n an

d Su

pply

Cha

in M

anag

emen

t

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*

5.1

A so

und

inte

rnal

con

trol

envi

ronm

ent c

reat

ed.

5.2

On-

goin

g fi n

anci

al

man

agem

ent m

onito

ring

&

eval

uatio

n.

Sta

tuto

ry p

resc

ripts

& g

uide

lines

ex

ist.

Sys

tem

s &

pro

cess

es fo

r co

mpl

ianc

e ex

ist.

Dev

elop

ed P

olic

ies

&

Pro

cedu

res

& G

uide

lines

.

5.1

A so

und

inte

rnal

con

trol

envi

ronm

ent c

reat

ed.

5.2

On-

goin

g fi n

anci

al

man

agem

ent m

onito

ring

&

eval

uatio

n.

5.1

A –

Aris

ing

out o

f int

erna

l &

ext

erna

l aud

its. A

dditi

onal

im

prov

ed in

tern

al c

ontro

ls h

ave

been

impl

emen

ted.

5.2

A –

All

budg

etar

y &

fi na

ncia

l is

sues

are

mon

itore

d m

onth

ly.

Ther

e ar

e no

n-co

mpl

ianc

es a

t tim

es, d

ue to

circ

umst

ance

s.

5.2

No

varia

nces

to re

port.

6.1

Impl

emen

t fun

ctio

nal

Pet

role

um L

icen

sing

Sys

tem

.

6.2

Impl

emen

t fun

ctio

nal

man

aged

VP

N.

6.3

Pro

vide

mec

hani

sm to

en

hanc

e en

ergy

dat

a co

llect

ion,

st

orag

e &

dis

sem

inat

ion

(Cen

tralis

ed E

nerg

y D

atab

ase)

.

6.4

Pro

vide

ICT

disa

ster

re

cove

ry s

ite to

redu

ce

prol

onge

d sy

stem

s do

wnt

ime

in

the

even

t of d

isas

ter.

6.5

Impl

emen

t Int

egra

ted

Fina

ncia

l Man

agem

ent S

yste

m

(IFM

S).

6. T

he D

oE is

cur

rent

ly o

n sh

ared

net

wor

k in

frast

ruct

ure

with

DM

R.

Som

e sy

stem

s ar

e lim

ited

in

func

tiona

lity

& p

rone

to e

rror

s.

Dat

a co

llect

ion

is m

anua

l driv

en

& s

tore

d in

mul

tiple

dat

abas

es.

Lim

ited

disa

ster

reco

very

pr

oces

s ha

s be

en im

plem

ente

d.

6.1

Pha

se 1

of t

he P

etro

leum

Li

cens

ing

Sys

tem

impl

emen

ted.

6.2

Com

plet

e im

plem

enta

tion

of

man

aged

VP

N.

6.3

App

rove

d E

nerg

y D

atab

ase

proj

ect c

harte

r, dr

aft h

igh

leve

l bus

ines

s re

quire

men

t ch

arte

r & U

ser R

equi

rem

ents

S

peci

fi cat

ion

appr

oved

.

6.4

ICT

disa

ster

reco

very

site

ch

arte

r app

rove

d &

har

dwar

e pr

ocur

ed.

6.5

Inte

grat

ed F

inan

cial

M

anag

emen

t sys

tem

fact

fi nd

ing

wor

ksho

ps c

ompl

eted

.

6.1

P –

Ree

ngin

eerin

g of

the

Pet

role

um L

icen

sing

sys

tem

is

in p

rogr

ess.

Pro

ject

sch

edul

e w

as a

ffect

ed b

y sc

ope

cree

p in

the

form

of d

evel

opm

ent o

f fu

nctio

n to

cal

cula

te p

enal

ty fe

e on

late

lice

nse

rene

wal

.

6.2

N –

VP

N p

roje

ct o

n ho

ld.

6.3

A –

Dev

elop

men

t & te

st

infra

stru

ctur

e ha

s be

en s

et u

p.

6.4

N –

Pro

ject

has

not

sta

rted.

6.5

N –

Pro

ject

has

not

sta

rted.

6.1

Dep

loym

ent o

f the

pen

alty

fe

e m

odul

e on

hol

d pe

ndin

g ap

prov

al fr

om N

T.

6.2

Net

wor

k eq

uipm

ent c

ould

no

t be

depl

oyed

at R

egio

nal

Offi

ces.

6.3

No

varia

nces

to re

port.

6.4

Dep

ende

nt o

n fi n

alis

atio

n of

th

e V

PN

pro

ject

.

6.5

Dep

ende

nt o

n fi n

alis

atio

n of

th

e V

PN

pro

ject

.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able

Tabl

e10


47

Subprogramme 3: Corporate Service

Purpose

To provide a corporate support service to the DoE.


The Branch Corporate Services provides a support service to the DoE and the Ministry in relation to HR

Management and Auxiliary Services, Communication and Knowledge Management, as well as a Legal Support

Service. It is this component’s responsibility to ensure that the HR plans are in place to ensure that the DoE is

capacitated so as to deliver on its mandate in line with its approved strategy for the MTEF period.

Progress and achievement

Progress achieved

During the year under review, the HR Plan of the DoE was fi nalised as required and the implementation of the

plan commenced. Amongst others, following the approval of the delegations of authority from the Minister to the

DG and other employees in the DoE in terms of the Public Service Act and its regulations, the turnaround times

for the fi lling of funded posts was improved to a remarkable level of three months on average. This intervention

has also enabled the DoE to maintain a vacancy rate of 9.6% throughout the year, which is below the acceptable

level of 15% as approved by Cabinet.

The HRD Strategy was also fi nalised on target and the Annual Training Plan was implemented, utilising the

fi nancial resources and assistance at the DoE’s disposal. On the training and development of internal staff, the

DoE has managed to train 443 employees in both the functional and administrative areas during this fi nancial

year. This is a remarkable achievement, particularly when considering the fact that the DoE is still operating

with a total staff complement of 52% of the approved establishment that could not be implemented as a result of

fi nancial constraints.

The Employment Equity Plan of the DoE was also implemented, and overall, the target of 50% representation of

women on establishment was exceeded. There is still a need to intensify the DoE’s recruitment drive for people

with disabilities. A strategy has been put in place, but the implementation thereof requires dedicated funding for

both their recruitment process and their needs.

The DoE has heeded the call by Cabinet to have a minimum of 20 PPPs and other engagement events for

both the Minister and Deputy Minister throughout the country. As at the end of the fi nancial year, 15 public

participation engagements were conducted and 37 logistical arrangements were made for other DoE events.

Financial constraints and lack of capacity within the Chief Directorate have contributed largely to the partial

achievement of the set target.

The DoE also continued to strive to resolve all Presidential hotline cases within the given timeframe and we

continue to maintain a 100% resolved cases status. This function was also delivered although with very thin and


48

over stretched capacity within the communications component as well as the appropriate level and challenges

relating to the system that links up with the Presidency for this purpose.

Because of capacity constrains relating to provision of effective and effi cient legal services provided to the DoE,

a set target of 50% of all legal requests was exceeded, and instead 66% of the aforementioned were fi nalised

within set time frames. This was achieved, amongst other things, because of the commitment of the employees

who always work extra hours during the day and weekends to meet set deadlines in accordance with applicable

legal processes.

In relation to the provision of effective and effi cient auxiliary services provided to the DoE, the Security Risk

Management Strategy and Plan were delivered on target and the implementation thereof was rolled out according

to plan. An alternative offi ce accommodation space for the DoE was also procured through DPW and in terms of

GIAMA.


Our Departmental Communications Strategy and Plan was also implemented in line with the National

Communication Strategy. We have achieved 70% of our set target on delivery of the communication strategy

with the limited capacity at the DoE’s disposal. Budgetary constraints have compelled the DoE to depend on

partnerships and the line function components to realise its targeted objectives. On the media relations front,

numerous press statements were issued, media briefs and media round tables’ discussions conducted, various

press conferences were held and the media was continuously monitored and all enquiries attended to timeously.


49

Subp

rogr

amm

e 3:

Cor

pora

te S

ervi

ce

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*

1.1.

1 H

R re

crui

tmen

t, se

lect

ion,

de

velo

pmen

t & re

tent

ion

to fu

lfi l

DoE

’s m

anda

te.

1.1.

2 R

educ

ed v

acan

cy ra

te.

1.1.

3 Ef

fect

ive

& ef

fi cie

nt

Perfo

rman

ce M

anag

emen

t &

Dev

elop

men

t Sys

tem

(PM

DS)

.

1.2.

1 Pe

rson

nel t

rain

ed a

ccor

ding

to

wor

kpla

ce s

kills

dev

elop

men

t pl

ans.

1.2.

2 W

elln

ess

of e

mpl

oyee

s &

equi

ty p

rom

oted

.

1. H

R fu

nctio

ns h

ave

been

es

tabl

ishe

d, d

eleg

atio

ns o

f au

thor

ity in

term

s of

the

Publ

ic

Serv

ice

Act &

Pub

lic S

ervi

ce

Reg

ulat

ions

hav

e be

en a

ppro

ved

& im

plem

ente

d, d

raft

HR

pol

icie

s ha

ve b

een

deve

lope

d &

an

inte

rim o

pera

tiona

l stru

ctur

e ha

s be

en im

plem

ente

d.

1.1

HR

Pla

n fi n

alis

ed b

y 30

Apr

il 20

11; i

mpl

emen

tatio

n of

pha

se

1 of

the

HR

Pla

n (a

ppro

ved

HR

po

licie

s) c

omm

ence

d by

30

June

20

11 a

nd c

oncl

uded

by

31 M

arch

20

12.

1.2

Dev

elop

men

t pro

gram

mes

de

velo

ped,

impl

emen

ted

& m

onito

red

(inte

rnsh

ip, b

ursa

ry

allo

catio

n, p

lace

men

ts &

ab

sorp

tion

rate

d).

1.1

A –

Pha

se I

of th

e H

R P

lan

was

fi na

lised

at t

he e

nd o

f Mar

ch

2011

. The

HR

Pla

n w

as fi

nalis

ed

in A

pril,

app

rove

d by

Hea

d of

D

epar

tmen

t on

21 J

une

2011

&

prin

ted

on 2

3 Se

ptem

ber 2

011.

Al

l HR

pol

icie

s w

ere

fi nal

ised

on

30 S

epte

mbe

r 201

1.

1.2

A –

HR

D S

trate

gy &

Tra

inin

g pl

an w

ere

fi nal

ised

bef

ore

end

of J

une

2011

. Bi-a

nnua

l Pe

rform

ance

Rev

iew

s w

ere

also

fi na

lised

dur

ing

June

201

1 an

d th

e Pu

blic

Ser

vice

Hea

lth

and

Wel

lnes

s Fr

amew

ork

was

ap

prov

ed &

impl

emen

ted

in th

e fi r

st q

uarte

r of 2

011.

The

new

m

acro

-org

anis

atio

nal s

truct

ure

was

app

rove

d in

Jun

e 20

11 &

co

ncur

red

with

by

the

Min

iste

r for

Pu

blic

Ser

vice

& A

dmin

istra

tion

(MPS

A). A

ll fu

nded

vac

anci

es

on th

e or

gani

satio

nal s

truct

ure

wer

e fi l

led

on 3

0 Ju

ne 2

011.

Al

l per

form

ance

agr

eem

ents

&

wor

kpla

ns w

ere

fi nal

ised

bef

ore

30 M

ay 2

011.

The

Ski

lls A

udit

& Pl

an w

ere

fi nal

ised

on

30 J

une

2011

.

1.1.

1 Th

e or

gani

satio

nal s

truct

ure

and

occu

patio

nal c

lass

ifi ca

tions

co

uld

not b

e ac

hiev

ed in

D

ecem

ber 2

011

beca

use

of th

e pr

olon

ged

cons

ulta

tion

proc

ess

with

em

ploy

ee o

rgan

isat

ions

.

1.1.

2 Th

e m

atch

ing

& pl

acem

ent

of s

taff

to th

e ne

w s

truct

ure

coul

d no

t be

achi

eved

bec

ause

of t

he

prol

onge

d co

nsul

tatio

n pr

oces

s w

ith e

mpl

oyee

org

anis

atio

ns.

1.2

Tran

sfer

of s

kills

thro

ugh

exch

ange

pro

gram

me

from

th

e en

ergy

sec

tor c

ould

not

be

achi

eved

as

a re

sult

of th

e af

ore-

men

tione

d.

2. R

ecor

ds M

anag

emen

t Pla

n ap

prov

ed a

nd im

plem

ente

d.2.

Min

imum

cap

acity

es

tabl

ishe

d.2.

Dev

elop

Rec

ords

M

anag

emen

t Pla

n &

obta

in

appr

oval

.

2. A

- R

ecor

ds M

anag

emen

t P

lan

deve

lope

d &

appr

oved

by

Nat

iona

l Arc

hive

s.

2. N

o va

rianc

es to

repo

rt.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


50

Subp

rogr

amm

e 3:

Cor

pora

te S

ervi

ce

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*

3. A

saf

e &

secu

re w

orki

ng

envi

ronm

ent.

3. D

raft

Secu

rity

Ris

k M

anag

emen

t Pla

n ex

ists

but

is

not a

ppro

ved.

3.1

Secu

rity

Ris

k M

anag

emen

t (S

RS)

Pla

n by

30

April

201

1.

3.2

Pha

se 1

of t

he S

RS

Pla

n im

plem

ente

d by

30

June

201

1.

3.1

A –

Pla

n fi n

alis

ed o

n ta

rget

an

d ro

lled

out.

3.2

A –

The

Bra

nch

has

revi

ewed

al

l its

sta

ndar

d op

erat

ing

proc

edur

es, c

ontin

genc

y pl

an &

aw

aren

ess

cam

paig

n w

hich

wer

e fi n

alis

ed a

ccor

ding

to p

lan.

3. N

o va

rianc

es to

repo

rt.

4. A

ccom

mod

atio

n &

faci

litie

s pr

ovid

ed a

ccor

ding

to n

eeds

as

sess

men

t.

4. N

eeds

Ass

essm

ent R

epor

t ap

prov

ed (a

ccom

mod

atio

n).

4. R

eloc

atio

n of

DoE

to n

ew

offi c

e ac

com

mod

atio

n.4.

P –

DPW

wen

t out

on

tend

er

& a

build

ing

was

sub

sequ

ently

le

ased

& th

e bu

ildin

g is

cur

rent

ly

bein

g re

furb

ishe

d &

will

be re

ady

for o

ccup

atio

n in

Jul

y 20

12.

4. N

o va

rianc

es to

repo

rt.

5. P

rofe

ssio

nal l

egal

ser

vice

s pr

ovid

ed.

N/A

5. 5

0% o

f req

uest

s pr

oces

sed

with

in p

resc

ribed

tim

efra

mes

.5.

A –

Ann

ual t

arge

t exc

eede

d.

66%

of r

eque

sts

rece

ived

as

at

the

end

of th

e la

st q

uarte

r wer

e pr

oces

sed

with

in th

e pr

escr

ibed

tim

efra

mes

.

5. O

verti

me

wor

k by

em

ploy

ees.

6.1

App

rove

d &

impl

emen

ted

Com

mun

icat

ion

Stra

tegy

& P

lan.

6.2

Com

mun

icat

ion

polic

ies

& pr

oced

ures

dev

elop

ed.

6.3

Ext

erna

l ser

vice

s (p

roje

cts)

m

anag

ed.

Dra

ft co

mm

unic

atio

ns s

trate

gy

& im

plem

enta

tion

plan

.6.

1 D

oE C

omm

unic

atio

n St

rate

gy &

Pla

n by

30

June

20

11 a

ligne

d w

ith N

atio

nal

(GC

IS) C

omm

unic

atio

n St

rate

gy,

appr

oved

by

30 J

une

2011

, im

plem

ente

d an

d St

rate

gy

effe

ctiv

enes

s re

view

ed.

6.2

Alig

ned

com

mun

icat

ions

po

licie

s &

proc

edur

es.

6.3

Exte

rnal

ser

vice

s (p

roje

cts)

pr

ojec

t man

aged

.

6.1

P –

Stra

tegy

has

bee

n pr

esen

ted

to E

XCO

in th

e fi r

st q

uarte

r for

con

side

ratio

n.

The

draf

t stra

tegy

is b

eing

im

plem

ente

d ev

en th

ough

not

yet

ap

prov

ed.

6.2

N –

Not

ach

ieve

d.

6.3

A –

Ext

erna

l pro

ject

s in

clud

ing

PPPs

and

DoE

eve

nts

man

aged

.

6.1

Cap

acity

con

stra

ints

im

pact

ed n

egat

ivel

y on

the

draf

ting

& de

velo

pmen

t of t

he

stra

tegy

.

6.2

Cap

acity

con

stra

ints

ca

used

by

the

depa

rture

of t

he

appo

inte

d U

nit D

irect

or.

6.3

– 6.

8 N

o va

rianc

es to

repo

rt.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


51

Subp

rogr

amm

e 3:

Cor

pora

te S

ervi

ce

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*

6.4

Impl

emen

ted

med

ia

mon

itorin

g &

liais

on s

ervi

ces.

6.5

Impl

emen

ted

inte

rnal

co

mm

unic

atio

n se

rvic

es.

6.6

Impl

emen

ted

even

ts

man

agem

ent s

uppo

rt.

6.7

Impl

emen

ted

mar

ketin

g,

adve

rtisi

ng &

bra

ndin

g pl

ans.

6.8

Impl

emen

ted

publ

icat

ions

se

rvic

es.

6.9

Stak

ehol

der m

anag

emen

t St

rate

gy &

Pla

n ap

prov

ed &

im

plem

ente

d.

6.4

Dev

elop

& im

plem

ent m

edia

m

onito

ring

& lia

ison

ser

vice

s.

6.5

Dev

elop

& im

plem

ent t

he

Inte

rnal

Com

mun

icat

ion

Plan

.

6.6

Dev

elop

& u

pdat

e ev

ents

ca

lend

ar.

6.7

Dev

elop

& im

plem

ent t

he

Park

etin

g, A

dver

tisin

g &

Bran

ding

Pl

an.

6.8

Dev

elop

& im

plem

ent t

he

publ

icat

ions

ser

vice

s.

6.9

Appr

oved

Sta

keho

lder

M

anag

emen

t Stra

tegy

& P

lan.

6.4

A –

Dai

ly &

wee

kly

med

ia

mon

itorin

g, a

s w

ell a

s da

ily m

edia

lia

ison

ser

vice

s pr

ovid

ed.

6.5

A –

Inte

rnal

Com

mun

icat

ion

Plan

dev

elop

ed &

impl

emen

ted

from

Qua

rter 4

whe

n a

Dep

uty

Dire

ctor

was

app

oint

ed to

the

post

.

6.6

A –

Eve

nts

cale

ndar

de

velo

ped

upda

ted,

& a

ppro

ved

by th

e C

hief

Dire

ctor

on

an o

n-go

ing

basi

s.

6.7

A –

Mar

ketin

g, A

dver

tisin

g &

Bran

ding

Pla

n de

velo

ped

& im

plem

ente

d.

6.8

A –

Pub

licat

ions

ser

vice

s de

velo

ped

& im

plem

ente

d.

6.9

P –

A pl

an fo

r sta

keho

lder

m

anag

emen

t was

dev

elop

ed &

im

plem

ente

d du

ring

the

year

.

6.9

Whi

le a

pla

n fo

r sta

keho

lder

m

anag

emen

t was

dev

elop

ed &

im

plem

ente

d du

ring

the

year

, the

un

it di

d no

t hav

e th

e ca

paci

ty to

de

velo

p a

stra

tegy

.

7. A

ppro

ved

Know

ledg

e M

anag

emen

t Stra

tegy

& P

lan.

7. T

he n

eed

for a

kno

wle

dge

man

agem

ent f

unct

ion

has

been

id

entifi

ed

but s

till n

eeds

to b

e es

tabl

ishe

d in

the

DoE

.

7.1

Dev

elop

Kno

wle

dge

Man

agem

ent S

trate

gy &

Pla

n.

7.2

Subm

it Kn

owle

dge

Man

agem

ent S

trate

gies

& P

lans

fo

r dep

artm

enta

l app

rova

l by

30

June

201

1.

7.3

Impl

emen

t Stra

tegi

es &

Pla

ns.

7.4

Rev

iew

Stra

tegy

ef

fect

iven

ess.

7.1

P - 1

st d

raft

of K

now

ledg

e M

anag

emen

t stra

tegy

dev

elop

ed.

7.2

N -

Not

ach

ieve

d.

7.3

N -

Not

ach

ieve

d.

7.4

N -

Not

ach

ieve

d.

7. D

ue to

vac

ancy

in th

e po

st u

ntil

mid

-2nd

qua

rter.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able

Tabl

e 11


52

Subprogramme 4: Governance and Compliance (Chief Operating Offi cer Branch)

Purpose

To provide governance and compliance support to the Ministry and the DoE.


The branch consists of the following Chief Directorates:

1. Strategy and Risk Management (SRM) – Responsible for ensuring that the DoE’s outcomes-oriented strategy,

Enterprise Risk Management (ERM) Strategy and Fraud Prevention Plan are effectively implemented.

2. Monitoring, evaluation and reporting – Provides results-oriented monitoring, evaluation and reporting services.

3. SOE Oversight – Provides oversight and monitors the SOE’s compliance to legislative, fi nancial and

administrative requirements.

4. International co-ordination – Provides international relations services to the Ministry, DoE and the energy

sector.

This branch started to operate in May 2010 with the capacity of 1%, due to the fact that the approved organisational

structure was not adequately resourced. There has been a very slight change during the year under review. The

personnel in the branch, as in most areas in support services, had to perform extra duties to ensure that the

planned and set strategic goals and objectives of the branch and the DoE were performed and targets achieved.

In November 2011, fi ve employees were seconded to assist the COO’s branch for a period of four months. For

instance, the International Coordination Chief Directorate and the SOE Oversight Directorate are severely under-

capacitated. The COO branch is also poorly funded, especially International Coordination Unit. This has had a

negative impact on the performance of the branch.

Progress and achievement

Progress achieved

The Strategy and Risk Management Unit was able to draft and produce the 2010/11 Annual Report, facilitate the

DoE’s annual strategic planning session in November 2011, which resulted in the production of the 2011/12 to

2015/16 Strategic Plan and the 2011/12 Annual Performance Plan that are aligned to the Government Outcomes-

based approach. Both plans were tabled in Parliament on time. The DoE’s Revised Strategic Plan for 2011/12 to

2015/16 and the Annual Performance Plan were tabled in Parliament in March 2012 and later presented to the

Portfolio Committee on Energy and the Select Committee on Economic Development. The DoE has established

a Risk Management Unit which includes the Anti-Fraud and Corruption function. Risk Management Committee

(RMC) and Risk Management Sub committee structures are in place to oversee the effectiveness of the Risk

Management System. Risk assessments were conducted, a Risk Register was produced and mitigation strategies

were put in place to enhance the control environment. standard operating procedures for various functional units

within the DoE have been developed and recorded in a register.

The Monitoring, Evaluation and Reporting Unit (M&E) came into operation in November 2010 and for the period

under review the M&E Unit created the DoE’s foundational M&E documents, namely the M&E framework, M&E


53

policies, procedures and quarterly performance reporting template as well as other data collection instruments.

The principle of categorising performance as achieved was consolidated, including in this Annual Report.

The branch continued to provide oversight of SOE’s reporting to the Minister of Energy through the SOE Oversight

Unit by ensuring that their strategic plans and budgets are aligned to the DoE’s and broader Government priorities

and that they were submitted on time and approved by the Minister. We also continued to monitor the performance

of all SOEs against their approved plans by ensuring that the submitted quarterly performance reports are

reviewed and submitted to the Minister with recommendations to improve performance where necessary. The

Unit ensured that all SOE Boards were fully capacitated by monitoring the composition of the various Boards

and facilitating the fi lling of any Board vacancies as they arise, which included the appointment of the SANEDI

Board, NERSA regulator members, CEF (SOC) Ltd and PetroSA (SOC) Ltd Board Members and Chairpersons.

The CEO of PetroSA was also appointed during the 2011/12 fi nancial year. During the year under review the DoE

ensured the improved oversight of the activities of the SOEs through quarterly meetings between the Minister and

the Chairpersons of the SOEs, the DG’s quarterly meetings with the CEOs and quarterly meetings between the

DOE Offi cials and SOE Executives to review the entities’ performance against approved plans. These meetings

were also used to implement improvement plans where necessary.

As at the end of the fi nancial year the EDIH winding-up process, which was necessitated by the Cabinet decision

on 8 December 2010 to discontinue the operations of EDIH, was near completion. The AGSA started the close-

out audit in March 2011. The handover report has been completed and the Board will hold its fi nal meeting by

the end of July 2012. The EDIH/Administrator is in the process of concluding the CCMA process with the former

EDIH employees.

The International Coordination Chief Directorate is responsible for organising international visits, convening local

and international conferences and facilitating international engagements between the DoE (and local energy

stakeholders), other countries and multilateral organisations.

This year the Chief Directorate facilitated and coordinated the African Energy Ministerial Conference which was

attended by more than 40 Ministers. The conference produced a declaration which outlines the energy needs of

the continent and political commitments to alleviate energy poverty. The Unit was responsible for the COP 17/

CMP7 preparations which included 26 energy side events conducted during the COP 17/CMP7 Conference in

December 2011. This was done in collaboration with Clean Energy, Communications, Security and other relevant

departments as well as international partners such as the World Bank and the African Union.

The Unit provided support to the Minister, Deputy Minister and the DG at all international engagements. The

support included providing prepared briefi ng notes in consultation with line function, informing the relevant

Department of International Relations and Coordination (DIRCO) desk, processing visa applications for all

participants, arranging access to the VIP lounge for the Deputy Minister and the Minister on all international

travels, accommodation and ground transport for all international engagements of the DG, Deputy Minister and

Minister and liaising with the South African missions abroad.


54

Some of the trips undertaken this year include:Ø Norway state visit; Ø World Economic Forum;Ø International Economic Forum;Ø Clean Energy Ministerial;Ø 32nd SADC Energy and Offi cials meeting;Ø International Renewable Energy Agency;Ø World Economic Forum (WEF) African Summit;Ø 3rd International Forum ATOMEXPO 2011;Ø Carbon Sequestration Leadership Forum (CSLF) Ministerial Meeting, China;Ø Road Show to United Arab Emirates, China, and Korea on the RSA Energy Infrastructure Expansion

Programme;Ø Deputy President China state visit and the visit to the nuclear power plant;Ø OECD meeting of the Governing Board at ministerial level;Ø Deputy President visit to Finland, Sweden and Denmark; Ø Zayed Future Energy Awards in United Arab Emirates; Ø Technical working visit to the DRC; andØ Signing of the Grand Inga Agreement in DRC, Kinshasa.

Visits to the following African countries were also undertaken: Zambia, Mozambique, Botswana, and Namibia.

During the year under review the International Coordination Chief Directorate completed the DoE’s International Relations Strategy in line with the South African Foreign Policy and International Relations Strategy. The Unit has conducted an audit of all the International Agreements/MoUs signed by the DoE and has also facilitated the conclusion of agreements/Declaration of Intent with the following countries and organisations: IEA, Swiss Confederation, Ghana, Lesotho, Denmark, Korea and DRC. The SARi was signed with the United Kingdom, Germany, Denmark, Norway and European Investment Bank.

The International Coordination Chief Directorate has participated in the Projects Steering Committee that led to the signing of the DOI on SARi.

The International Coordination Chief Directorate participated in the interdepartmental meetings arranged by DIRCO on international trips, projects/programmes conducted within the DoE with relevant countries, implementation and monitoring of signed international agreements and issues related to the energy sector. The Unit also attended meetings together with line function on the following forums: Permanent Joint Commission, Joint Cooperation Council, Bi-National Commission and Joint Ministerial Commission.


The SOE Oversight Framework draft was completed and circulated to EXCO members for their comments, but it was not approved and rolled out during the year under review due to delays in ensuring alignment to the new Companies Act, King 111 Report on Corporate Governance and alignment with the fi ndings of the Presidential SOE Review Committee.


55

Changes to planned targets

Over and above the abovementioned targets, the branch also achieved the following:

Ø Risk Management Implementation Plan in place, Global Risk Assessments Conducted and Reviewed and

updated Risk Register in place. Revised Risk Management Policy in place, Risk Management Operational

Plan in place and Revised Risk Management Framework in place.

Ø Revised Anti-Fraud and Corruption Implementation Plan in place, Revised Fraud Prevention and Anti-

Corruption Strategy in place and draft and revised Whistle-Blowing Policy in place.

Ø Reviewed and updated Strategic Plan 2011/12 to 2015/16, Revised and updated Annual Performance Plan

2012 in place and Approved Annual Report 2010/11.


56

Subp

rogr

amm

e 4:

Chi

ef O

pera

ting

Offi

cer B

ranc

h

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*

1.1

Full

spec

trum

inte

rnal

aud

it se

rvic

es re

nder

ed w

ith:

A ris

k-ba

sed

annu

al &

thre

e-ye

ar a

udit

plan

dev

elop

ed in

co

nsul

tatio

n w

ith s

take

hold

ers.

1.1

Exe

cutio

n of

risk

-bas

ed

annu

al a

udit

plan

with

:1.

No

varia

nces

to re

port.

1.1.

1 C

lient

sat

isfa

ctio

n1.

1.1

70%

clie

nt s

atis

fact

ion

achi

eved

; and

1.1.

1 A

– 8

3% c

lient

sa

tisfa

ctio

n.

1.1.

2 A

udit

Com

mitt

ee

satis

fact

ion.

1.1.

2 70

% A

udit

Com

mitt

ee

satis

fact

ion

achi

eved

;1.

1.2

A –

85%

Aud

it C

omm

ittee

sa

tisfa

ctio

n.

1.2

Inte

rnal

Aud

it S

trate

gic

Pla

n re

view

ed &

upd

ated

.1.

2 In

tern

al A

udit

Stra

tegi

c P

lan

revi

ewed

& u

pdat

ed.

1.2

A –

Inte

rnal

Aud

it S

trate

gic

Pla

n co

mpl

eted

– A

chie

ved.

1.3

Inte

rnal

Aud

it A

nnua

l Pla

n co

mpi

led.

1.3

Inte

rnal

Aud

it A

nnua

l Pla

n co

mpi

led.

1.3

A –

Inte

rnal

Aud

it A

nnua

l P

lan

done

.

1.4

Inte

rnal

Aud

it C

harte

r &

Aud

it C

omm

ittee

Cha

rter

revi

ewed

.

1.4

Inte

rnal

Aud

it C

harte

r &

Aud

it C

omm

ittee

Cha

rter

revi

ewed

.

1.4

A –

Inte

rnal

Aud

it C

harte

r &

Aud

it C

omm

ittee

Cha

rter d

one.

1.5

AG

SA

Man

agem

ent l

ette

r ad

dres

sed.

1.5

AG

SA

man

agem

ent l

ette

r ad

dres

sed.

1.5

A –

AG

SA

man

agem

ent

lette

r don

e.

2.1

App

rove

d R

isk

Man

agem

ent

Stra

tegy

.D

raft

Inte

grat

ed E

nter

pris

e-W

ide

Ris

k M

anag

emen

t S

trate

gy w

hich

incl

udes

a F

raud

P

reve

ntio

n P

lan

(see

Ant

i-Fra

ud

& C

orru

ptio

n be

low

).

2.1

Ent

erpr

ise

Ris

k M

anag

emen

t Stra

tegy

re

view

ed &

reco

mm

enda

tion

impl

emen

ted.

2.1

P –

Rev

ised

Ris

k M

anag

emen

t Stra

tegy

in p

lace

.La

ck o

f ade

quat

e su

ppor

t st

ruct

ure/

capa

city

to im

plem

ent

& m

aint

ain

the

risk

man

agem

ent

fram

ewor

k. (L

ack

of m

inim

um

capa

city

.)

Dra

ft &

revi

sed

docu

men

ts to

be

circ

ulat

ed to

all

man

ager

s fo

r inp

uts

& c

omm

ents

prio

r to

ado

ptio

n by

the

Ris

k M

anag

emen

t Com

mitt

ee &

ap

prov

al b

y th

e A

ccou

ntin

g O

ffi ce

r.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


57

Subp

rogr

amm

e 4:

Chi

ef O

pera

ting

Offi

cer B

ranc

h

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*

2.2.

1 A

nnua

l glo

bal r

isk

asse

ssm

ents

con

duct

ed.

Dra

ft In

tegr

ated

Ent

erpr

ise-

Wid

e R

isk

Man

agem

ent

Stra

tegy

whi

ch in

clud

es a

Fra

ud

Pre

vent

ion

Pla

n (s

ee A

nti-F

raud

&

Cor

rupt

ion

belo

w).

2.2.

1 –

2.2.

3 Lo

w, m

ediu

m &

hi

gh ri

sks

iden

tifi e

d &

miti

gatio

n st

rate

gies

prio

ritis

ed.

2.2.

1 –

2.2.

3 A

– R

isk

Reg

iste

r w

ith m

itiga

tion

stra

tegi

es

appr

oved

.

Due

to u

navo

idab

le

circ

umst

ance

s, S

trate

gy &

R

isk

Man

agem

ent C

omm

ittee

M

eetin

gs in

clud

ing

Ris

k C

ham

pion

s Fo

rum

s co

uld

not b

e co

nven

ed s

epar

atel

y &

as

resu

lt th

ereo

f, th

ey w

ere

inco

rpor

ated

in

to th

e M

anag

emen

t com

mitt

ee

& th

e E

xecu

tive

Man

agem

ent

mee

tings

.

2.2.

2 U

pdat

ed R

isk

Reg

iste

r in

plac

e.

2.2.

3 R

isk

Res

pons

e A

ctio

n P

lan

in p

lace

.

2.2.

4 N

o In

dica

tor –

sho

uld

be:

Iden

tifi e

d ris

ks re

duce

d by

20%

&

risk

regi

ster

upd

ated

.

2.2.

4. Id

entifi

ed

risks

redu

ced

by 2

0% a

gain

st ri

sk re

gist

er

& a

ssig

ned

prio

rity;

& R

isk

Reg

iste

r upd

ated

.

2.2.

4 N

– R

isk

redu

ctio

n no

t mon

itore

d du

e to

lack

of

cap

acity

: Pro

gres

s –

Not

ac

hiev

ed.

2.3.

1 R

isk

Man

agem

ent C

harte

r in

pla

ce.

2.3.

1 –

2.3.

5 Fo

ur R

isk

Man

agem

ent C

omm

ittee

& fo

ur

Ris

k M

anag

emen

t Cha

mpi

ons

Com

mitt

ee m

eetin

gs h

eld.

2.3.

1 –

2.3.

5 A

– R

isk

Man

agem

ent C

omm

ittee

m

eetin

g he

ld o

n 4

June

20

11 &

oth

er m

eetin

gs w

ere

inco

rpor

ated

into

the

MA

NC

O &

E

XC

O m

eetin

gs o

f the

DoE

.

2.3.

2 R

isk

Man

agem

ent

Com

mitt

ee M

embe

rs a

ppoi

nted

in

writ

ing.

2.3.

3 R

isk

Man

agem

ent

Sub

com

mitt

ee in

pla

ce.

2.3.

4 R

isk

Man

agem

ent

Sub

com

mitt

ee M

embe

rs

appo

inte

d in

writ

ing.

2.3.

5 Fo

ur R

isk

Man

agem

ent

Com

mitt

ee m

eetin

gs c

onve

ned

per a

nnum

.

2.4

Ris

k aw

aren

ess

sess

ions

co

nduc

ted.

2.4

Ris

k aw

aren

ess

sess

ions

co

nduc

ted.

2.4

A –

Pre

sent

atio

ns m

ade

at

EX

CO

& M

AN

CO

.2.

4 N

o sp

ecifi

c ta

rget

s w

ere

set i

n th

e A

PP

for t

he re

leva

nt

indi

cato

r. Ta

rget

sho

uld

be a

s in

dica

ted.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


58

Subp

rogr

amm

e 4:

Chi

ef O

pera

ting

Offi

cer B

ranc

h

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*

3.1

App

rove

d Fr

aud

Pre

vent

ion

Pla

n.A

nti-F

raud

& C

orru

ptio

n P

reve

ntio

n P

lan.

Whi

stle

-Blo

win

g P

olic

y.

Pub

lic S

ervi

ce C

ode

of C

ondu

ct.

3.1

Rev

iew

ed &

upd

ated

Fra

ud

Pre

vent

ion

Pla

n.3.

1 A

– F

raud

Pre

vent

ion

Pla

n in

pla

ce.

Lack

of a

dequ

ate

supp

ort

stru

ctur

e/ca

paci

ty to

impl

emen

t &

mai

ntai

n th

e ris

k m

anag

emen

t fra

mew

ork.

(Lac

k of

min

imum

ca

paci

ty.)

Dra

ft &

revi

sed

docu

men

ts to

be

circ

ulat

ed to

all

man

ager

s fo

r inp

uts

& c

omm

ents

prio

r to

ado

ptio

n by

the

Ris

k M

anag

emen

t Com

mitt

ee &

ap

prov

al b

y th

e A

ccou

ntin

g O

ffi ce

r.

A fra

ud ri

sk p

rese

ntat

ion

was

al

so in

corp

orat

ed in

the

MA

NC

O

mee

ting.

No

spec

ifi c

targ

ets

wer

e se

t in

the

AP

P fo

r Ind

icat

ors

3.3

& 3

.6.

Targ

ets

shou

ld b

e as

indi

cate

d.N

o in

dica

tors

wer

e se

t in

the

AP

P fo

r tar

gets

3.7

to

3.10

. Ind

icat

ors

shou

ld b

e as

in

dica

ted.

3.2

App

rove

d Fr

aud

Impl

emen

tatio

n P

lan.

3.2

Rev

iew

ed &

upd

ated

R

espo

nse

Act

ion

Pla

n.3.

2 P

– R

evie

wed

& u

pdat

ed

Res

pons

e A

ctio

n P

lan

draf

ted.

3.3

App

rove

d E

thic

s P

olic

y.3.

3 N

o ta

rget

– s

houl

d be

: R

evie

wed

& u

pdat

ed E

thic

s P

olic

y.

3.3

A –

Eth

ics

Pol

icy

in p

lace

.

3.4

App

rove

d Fr

aud

Pre

vent

ion

Pol

icy.

3.4

Rev

iew

ed &

upd

ated

Fra

ud

Pre

vent

ion

Pol

icy.

3.4

P –

Rev

iew

ed &

upd

ated

Fr

aud

Pre

vent

ion

Pol

icy

draf

ted.

3.5

Whi

stle

-Blo

win

g P

olic

y in

P

lace

.3.

5 R

evie

wed

& u

pdat

ed

Whi

stle

-Blo

win

g P

olic

y.3.

5 P

– R

evie

wed

& u

pdat

ed

Whi

stle

-Blo

win

g P

olic

y dr

afte

d.

3.6

Cod

e of

Con

duct

in p

lace

.3.

6 N

o ta

rget

– S

houl

d be

: D

epar

tmen

tal C

ode

of C

ondu

ct

com

pile

d.

3.6

N –

Dep

artm

enta

l Cod

e of

C

ondu

ct in

pla

ce.

3.7

Ant

i-Fra

ud &

Cor

rupt

ion

Wor

ksho

ps c

ondu

cted

.3.

7 A

nti-F

raud

& C

orru

ptio

n W

orks

hops

con

duct

ed.

3.7

P –

Ant

i-Fra

ud &

Cor

rupt

ion

Wor

ksho

ps c

ondu

cted

dra

fted.

3.8

Pos

t the

hot

line

num

bers

in

visi

ble

area

s.3.

8 P

ost t

he h

otlin

e nu

mbe

rs in

vi

sibl

e ar

eas.

3.8

P –

Pos

t the

hot

line

num

bers

in v

isib

le a

reas

dr

afte

d.

3.9.

1 R

epor

ted

case

s of

co

rrup

tion

inve

stig

ated

.3.

9.1

Rep

orte

d ca

ses

of

corr

uptio

n in

vest

igat

ed.

3.9

N/A

– N

o ca

ses

wer

e re

porte

d.

3.9.

2 O

utco

me

of re

porte

d ca

ses

com

pile

d &

sub

mitt

ed.

3.9.

2 C

ompi

le &

sub

mit

the

outc

ome

of re

porte

d ca

ses.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


59

Subp

rogr

amm

e 4:

Chi

ef O

pera

ting

Offi

cer B

ranc

h

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*

3.10

Dis

clos

ure

form

s fo

r Sen

ior

Man

agem

ent S

ervi

ce (S

MS

) m

embe

rs d

one.

3.10

Ens

ure

that

SM

S m

embe

rs

com

plet

e di

sclo

sure

form

s.3.

10. A

– D

iscl

osur

e fo

rms

for

SM

S m

embe

rs d

one.

4.1

Firs

t dra

ft &

sec

ond

draf

t of

revi

sed

fi ve-

year

Stra

tegi

c P

lan

subm

itted

.

2011

/12-

2015

/16

Stra

tegi

c P

lan;

& 20

11/1

2 A

nnua

l Per

form

ance

P

lan.

4.1

Firs

t dra

ft &

sec

ond

draf

t of

revi

sed

fi ve-

year

Stra

tegi

c P

lan

subm

itted

.

4.1

A –

Firs

t dra

ft &

sec

ond

draf

t of

revi

sed

fi ve-

year

Stra

tegi

c P

lan

subm

itted

.

4.1

– 4.

4 N

o va

rianc

es to

repo

rt.

4.2

Fina

l rev

ised

Stra

tegi

c P

lan

tabl

ed in

Par

liam

ent.

4.2

Fina

l rev

ised

Stra

tegi

c P

lan

tabl

ed in

Par

liam

ent.

4.2

A –

Fin

al re

vise

d S

trate

gic

Pla

n ta

bled

in P

arlia

men

t.

4.3

Firs

t Dra

ft &

Sec

ond

Dra

ft of

Ann

ual P

erfo

rman

ce P

lan

subm

itted

.

4.3

Firs

t dra

ft &

sec

ond

draf

t of

Ann

ual P

erfo

rman

ce P

lan

subm

itted

.

4.3

A –

Firs

t dra

ft &

sec

ond

draf

t of A

nnua

l Per

form

ance

P

lan

subm

itted

.

4.4

Fina

l Ann

ual P

erfo

rman

ce

Pla

n ta

bled

in P

arlia

men

t.4.

4 Fi

nal A

nnua

l Per

form

ance

P

lan

tabl

ed in

Par

liam

ent.

4.4

A –

Fin

al A

nnua

l P

erfo

rman

ce P

lan

tabl

ed in

P

arlia

men

t.

4.5

Stra

tegi

c P

lan

&

Ann

ual P

erfo

rman

ce P

lan

oper

atio

nalis

ed th

roug

h O

pera

tiona

l & B

usin

ess

Pla

ns.

4.5

Stra

tegi

c P

lan

&

Ann

ual P

erfo

rman

ce P

lan

oper

atio

nalis

ed th

roug

h O

pera

tiona

l & B

usin

ess

Pla

ns.

4.5

N –

Bus

ines

s pl

ans

to b

e in

trodu

ced

in 2

012/

13.

4.5

Lack

of a

dequ

ate

supp

ort

stru

ctur

e/ca

paci

ty.

5.1

Adh

eren

ce to

out

com

es-

base

d m

onito

ring,

eva

luat

ion

&

repo

rting

prin

cipl

es.

Tran

sitio

n fro

m b

alan

ced

scor

e ca

rd m

etho

ds to

the

Gov

ernm

ent-w

ide

Per

form

ance

M

onito

ring

& E

valu

atio

n ap

proa

ch.

5.1

Pla

nnin

g, M

onito

ring,

E

valu

atio

n &

Rep

ortin

g Fr

amew

ork

& S

trate

gy

esta

blis

hed.

5.1

A –

The

Pla

nnin

g,

Mon

itorin

g, E

valu

atio

n &

R

epor

ting

Fram

ewor

k &

S

trate

gy o

f the

DoE

was

pr

esen

ted

& a

ppro

ved

by E

XC

O

on 2

9 A

ugus

t 201

1.

No

varia

nces

to re

port.

No

indi

cato

rs w

ere

set i

n th

e A

PP

for T

arge

t.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


60

Subp

rogr

amm

e 4:

Chi

ef O

pera

ting

Offi

cer B

ranc

h

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1

Act

ual P

erfo

rman

ce a

gain

st T

arge

tR

easo

n fo

r Var

ianc

eTa

rget

(201

1/12

)A

ctua

l (20

11/1

2) *

5.2

Inte

rnal

per

form

ance

m

onito

ring

alig

ned

with

P

rogr

amm

e of

Act

ion

(PO

A) &

de

partm

enta

l stra

tegy

.

Pro

gram

me

Per

form

ance

, M

onito

ring

& E

valu

atio

n U

nit

esta

blis

hed.

Aud

it ba

selin

e to

be

esta

blis

hed

by fi

rst m

ilest

one

(rev

iew

of

avai

labl

e au

dit r

epor

ts)

5.2

Num

ber o

f dat

a co

llect

ion

inst

rum

ents

cre

ated

or u

pdat

ed.

5.2.

1 A

– S

even

dat

a co

llect

ion

inst

rum

ents

hav

e be

en c

reat

ed

incl

udin

g th

e M

onito

ring

Sum

mar

y R

epor

t tem

plat

e 20

10/1

1 &

201

1/12

was

cre

ated

.

5.2.

2 A

– S

yste

m a

rchi

tect

ure

crea

ted.

5.2.

3 A

– A

udit

base

line

was

es

tabl

ishe

d.

5.3

M&

E p

olic

ies

& p

roce

dure

s pr

oduc

ed.

5.3

Dep

artm

ent M

&E

pol

icie

s &

pr

oced

ures

upd

ated

.5.

3 A

– T

he fo

urth

dra

ft of

M&

E

polic

ies

& p

roce

dure

s ha

s be

en

prod

uced

.

5.3.

Indi

cato

r sho

uld

be a

s in

dica

ted.

6. O

vers

ight

, gui

danc

e &

su

ppor

t to

SO

Es

to d

eliv

er o

n th

eir m

anda

tes.

Exi

stin

g sh

areh

olde

r com

pact

s &

dra

ft de

partm

enta

l SO

E

Ove

rsig

ht F

ram

ewor

k.

6.1

Dra

ft S

OE

Ove

rsig

ht

Fram

ewor

k co

mpl

eted

.6.

1 P

– D

raft

Ove

rsig

ht

Fram

ewor

k w

as c

ompl

eted

&

cons

ulta

tion

with

EX

CO

was

do

ne.

6.1

Fram

ewor

k w

ill b

e fi n

alis

ed

durin

g th

e ne

xt fi

nanc

ial y

ear

afte

r con

sulta

tions

with

the

SO

Es.

The

Fra

mew

ork

will

be

alig

ned

to th

e fi n

ding

s of

the

Pre

side

ntia

l SO

Es

Rev

iew

C

omm

ittee

onc

e th

ey a

re

rele

ased

.

6.2

Est

ablis

h A

GS

A fi n

ding

s ba

selin

e &

dev

elop

act

ion

plan

s fo

r im

prov

emen

t in

cons

ulta

tion

with

SO

Es.

6.2

A –

Bas

elin

e w

as

esta

blis

hed

from

the

fi ndi

ngs

AG

SA

repo

rts o

f the

SO

Es

for

the

2010

/11

fi nan

cial

yea

r. Th

e pr

ogre

ss o

n im

plem

entin

g th

e ac

tion

plan

s to

add

ress

the

AG

SA

fi ndi

ngs

wer

e m

onito

red

on a

qua

rterly

bas

is &

dis

cuss

ed

with

SO

E E

xecu

tives

.

6.2

No

varia

nces

to re

port.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


61

Subp

rogr

amm

e 4:

Chi

ef O

pera

ting

Offi

cer B

ranc

h

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1

Act

ual P

erfo

rman

ce a

gain

st T

arge

tR

easo

n fo

r Var

ianc

eTa

rget

(201

1/12

)A

ctua

l (20

11/1

2) *

7. In

tern

atio

nal R

elat

ions

se

rvic

es a

ligne

d w

ith

depa

rtmen

t obj

ectiv

es.

7. In

tern

atio

nal R

elat

ions

S

trate

gy d

rafte

d in

line

with

the

Nat

iona

l Int

erna

tiona

l Rel

atio

ns

Stra

tegy

.

7.1

Alig

nmen

t with

DIR

CO

In

tern

atio

nal S

trate

gy.

7.1

A –

Dra

ft al

igne

d to

DIR

CO

In

tern

atio

nal R

elat

ions

Stra

tegy

.7.

1 –

7.6

No

varia

nces

to re

port.

7.2

Dep

artm

enta

l app

rova

l of

Dra

ft In

tern

atio

nal R

elat

ions

S

trate

gy.

7.2

A –

Dra

ft si

gned

off

by D

G

on 5

Oct

ober

201

1.

7.3

Sta

keho

lder

sur

vey

cond

ucte

d.7.

3 A

– In

puts

rece

ived

from

the

stak

ehol

ders

wer

e in

corp

orat

ed

in th

e re

port.

7.3

Sta

keho

lder

s id

entifi

ed

wer

e S

OE

s re

porti

ng to

the

Min

iste

r of

Ene

rgy.

7.4

Five

or m

ore

enga

gem

ents

w

ith o

ther

cou

ntrie

s or

m

ultil

ater

al e

ngag

emen

ts.

7.4.

1 A

– 2

2 in

tern

atio

nal

enga

gem

ents

.7.

4 Tw

o M

oUs

wer

e pl

anne

d &

the

rest

wer

e du

e to

the

coun

try’s

bila

tera

l eng

agem

ents

in

itiat

ed b

y ot

her d

epar

tmen

ts o

r re

spec

tive

coun

tries

.7.

4.2

A –

Six

MoU

s &

two

Dec

lara

tions

of I

nten

t sig

ned.

7.5

Dra

ft M

onito

ring

&

Eva

luat

ion

Rep

ort o

n th

e si

gned

bi

late

ral &

mul

tilat

eral

rela

tions

.

7.5

A –

Aud

it co

mpl

eted

& d

raft

subm

issi

on in

pla

ce.

7.6

Doc

umen

t on

stak

ehol

der

enga

gem

ent (

min

utes

of b

riefi n

g no

tes

or re

port

on s

take

hold

er

inte

ract

ion

- at l

east

one

per

qu

arte

r).

7.6

A –

Don

e, fa

cilit

ated

P

etro

SA

enga

gem

ent i

n C

hina

, Gha

na, A

ngol

a; S

asol

en

gage

men

t with

Chi

na; N

EC

SA

enga

gem

ent w

ith F

ranc

e &

the

US

A.

No

indi

cato

rs &

/or t

arge

ts w

ere

set f

or In

ter-

Gov

ernm

enta

l C

oord

inat

ion

in 2

011/

12.

N/A

N/A

N/A

No

spec

ifi c

targ

ets

wer

e se

t fo

r 201

1/12

. Tar

gets

to b

e de

term

ined

from

201

2/13

.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able

Tabl

e 12


62

2.2.5 Programme 2: Hydrocarbons and Energy Planning

Purpose

Integrated energy planning to promote the sustainable use of energy resources by developing appropriate policies and regulations that promote the effi cient use of petroleum products, coal, gas and renewable energy sources.


The Hydrocarbons and Energy Planning Branch consists of the following Chief Directorates:HydrocarbonsResponsible for developing policy and regulations to manage the petroleum, coal and natural gas industry. The Petroleum Controller is responsible for the implementation of the Petroleum Products Amendment Act, 2003 (Act No. 58 of 2003).Energy PlanningFocuses on promoting the sustainable use of energy resources through integrated energy planning.

Progress and achievements

Progress achieved

Performance indicators and targets

During the 2011/12 fi nancial year the DoE fi nalised and signed an MoU with the IEA. The primary objective of the MoU is to promote ongoing cooperation between the DoE and the IEA in the fi eld of energy with the primary focus on energy policy areas, which are challenges globally, such as promoting transparency of data to ensure energy security, promoting the development of renewable and clean energy as well as improving energy effi ciency. The MoU was signed at a three-day workshop co-hosted by the DoE and IEA and provided a platform for engagement between policy makers and the heads within the National Business Initiative (NBI) to discuss inter-linkages between policy and business in order to ensure improvements in energy effi ciency. The IEA also launched their booklet entitled “Saving Energy a Hurry” on the fi rst day of the workshop. This publication is a brief study which highlights lessons from electricity shortfalls in Chile, Japan, South Africa and the United States. The study also reinforces three well-established emergency response guidelines, which are: the understanding of the causes of electricity shortfalls, identifi cation of energy savings opportunities and implementing a package of energy savings and Demand-side Management (DSM) measures.

During March we also hosted a Colloquium on Energy Planning. The purpose of the colloquium was for the Minister to formally launch the development of the IEP and invite stakeholders to participate and provide input into the process. The colloquium therefore also provided the DoE with a platform to facilitate debate on key issues facing the energy sector and how these should shape the IEP.

Regulatory Accounting System

Under the measure “Regulatory Accounting System”; the fi nal RAS models were approved and implemented on 7 December 2011, without changing the current fuel price structure. The DoE has given the industry a transitional period of 24 months during which they should align all the lease/contractual agreements to the RAS outcome. This would also afford the DoE an opportunity to consult extensively with the relevant and affected stakeholders.


63

New Multi-Products Pipeline

The Grant Funding Agreement signed between the DoE and Transnet for the transfer of an amount of

R 4.5 billion over three years, starting from the 2010/11 fi nancial year, as part of Government’s contribution

towards the construction of the 24-inch NMPP was amended to incorporate lessons learnt during the 2010/11

fi nancial year. All funds were transferred accordingly in terms of the amended Grant Funding Agreement and, at

the direction of the Minister of Energy, PetroSA procured diesel to be injected into the NMPP trunkline as line fi ll

based on funding from the Strategic Fuel Fund (SFF). This enabled the successful commissioning of the NMPP

trunkline during January 2012.

Regulation for the provision of energy data

In March 2012, the DoE published the Regulations on the Mandatory Provision of Energy Data. The regulations

make it mandatory for classifi ed data providers to submit to the DoE in the type, manner and form prescribed,

energy information when requested. The Regulations also seek to enable the DoE to collect, collate and publish

quality energy data and information in an effective and effi cient manner in order to address the data quality issues.

Conducting site inspections

Conducting of site inspections for compliance purposes: 1768 site inspections were conducted for the fi nancial

year end 2011/2012 thus exceeding the set target of 1 500 by 268.

Awareness campaigns

All awareness campaigns were conducted for the year 2011/2012 fi nancial year.


Cleaner Fuels 2

Under the measure “Internal Approval of the Department’s Discussion Document”. The document was approved

and published for comments. It was also the intention of the DoE to promulgate the Cleaner Fuels Regulations

by the end of March 2012. There has also been progress in this regard in that the State Law Advisor has given

positive feedback for promulgation.

20 Year Liquid Fuels Infrastructure Plan

Under the measure “Monitoring against Liquid Fuels 20 Year Infrastructure Plan”. Although this target has not

been met, the branch recorded several developments; fi rstly due to the frequent unplanned refi nery shutdowns,

the Refi nery Audit of all South African refi neries had to be expedited and this intervention caused a delay in

the fi nalisation of the 20 Year Liquid Fuels Infrastructure Plan. However, there was signifi cant progress made:

80% of the data for the 20 Year Liquid Fuels Infrastructure Plan has been collected and analysed, a stakeholder

workshop on refi nery audit additional data collection has been held and the fi rst refi nery site visits have been

completed.


64

Strategic Stocks Policy

Under the measure “Finalisation of the Implementation Plan with National Treasury”; although the target was

not met, progress has been made towards the approval of the Strategic Stocks Policy and the fi nalisation of the

Implementation Plan with the NT. A presentation of the draft Strategic Stocks Policy was made to Cabinet on 20

March 2012. Feedback has been received and is being acted on.

Revised Maximum Refi nery Gate Price of LPG & Revised Maximum LPG Retail Price

Under the measure “Revised Maximum Refi nery Gate Price of Liquefi ed Petroleum Gas (LPG) and Revised

Maximum LPG Retail Price”; although the target has not been met, a discussion document regarding the new

methodology in calculation of the Maximum Refi nery Gate Price of LPG has been completed and submitted

for internal approval to publish for comments by the public. The revised Maximum LPG retail price will only be

fi nalised once the Maximum Refi nery Gate Price has been fi nalised, since the latter forms part of the working

rules that are used to revise the Maximum Retail Price.

Gas Act

Under the measure “Publication of the Gas Amendment Bill”; although the target has not been met, progress

has been made in terms of the amendments and internal approval. A presentation of the Draft Gas Amendment

Bill was made to Cabinet on 28 March 2012. Feedback was received from Cabinet with few concerns to be

addressed and has been attended to.

Coal Policy

Under the measure “First Phase of South African Coal Road Map”; although the target has not been met, progress

has been made in terms of the fi nalisation of the South African Coal Road Map. The fi rst phase of South African

Coal Road Map was due to be launched before the end of the 2011/12 fi nancial year. However, the launch was

postponed due to confl icting views within the document, as the development and drafting of the study is not under

the full control of the DoE. To date, the confl icting statements have been rectifi ed, and the fi rst phase of the South

African Coal Road Map is set to be launched this fi nancial year.

Under the measure “Coal Supply Strategy”; although the target has not been met, a draft Coal Supply Strategy

has been done and is in circulation for internal approval.

Biofuels pricing framework

Under the measure “Biofuels Pricing Framework”; although the target has not been met. The Biofuels break-even

pricing economic models (including the determination of the bioethanol blending value) have been completed.

A Stakeholder Workshop on the pricing models for biodiesel and bioethanol was concluded on 16 March 2012.

The most important and outstanding matter to conclude in terms of the regulated biofuels pricing framework is

the levels of fi nancial support to be afforded to the biofuels manufacturers, the fi nancial support mechanisms

(will fi nancial support be in the form of direct support from the fi scus, a rebate on fuel taxes or a combination


65

thereof) and the related administration matters thereto. The DoE is also in the process, notwithstanding the

fi nancial support mechanism to be concluded, to conclude regulations in terms of the Biofuels monthly price-

setting methodology.

A Stakeholder Workshop on the Draft Regulations on mandatory biofuels blending was held on 24 February

2012. In line with written and verbal comments received by stakeholders, the draft regulations were amended

where necessary. The revised draft regulations will now be submitted to the Offi ce of the Chief State Law Advisor

before the fi nal regulations are promulgated in the Government Gazette.

Retail margin for illuminating paraffi n

Under the measure “Retail Margin for Illuminating Paraffi n”; although the target has not been met, a comparison

between the current retail margin-setting methodology of the illuminating paraffi n and that of setting the retail

margin at a fi xed monetary level was published in the Government Gazette on 10 February 2012 to solicit public

comment. The submission of public comments closed on 16 April 2012. The only comments received by the

DoE were submitted by the South African Petroleum Oil Industry Association (SAPIA). The DoE, to obtain more

comments, submitted the said comparison, as published in the Government Gazette, to the Paraffi n Safety

Association of South Africa and the retail service station organisations (the retail motor industry and the South

African Petroleum Retail Association).

Integrated Energy Centres

Under the measure “Integrated Energy Centres”; although the target has not been met, Ministerial submission

to request an extension of the completion date for the QwaQwa and Ulundi IECs to the next fi nancial year has

been approved, a Ministerial sod-turning ceremony was held on 12 January 2012, the tender process for the

appointment of contractors for QwaQwa and Ulundi IECs is underway, the contractor for Mbiza IEC has moved

on site and will commence with construction in May 2012 and a Ministerial sod-turning ceremony for Qamata

Thembisile Hani IEC is scheduled for 2 June 2012.

Centralised energy data repository

The project charter for the Centralised Energy Database was approved. This outlines a three-year plan for

centralising data within the DoE. The fi rst fi nancial year (2011/12) focused on the current sets of data used in the

Energy Planning Chief Directorate. The second fi nancial year (2012/13) will be allocated to the data structures

required for modelling processes including the IEP and IRP. The third year will be for automating collection and

storage of other information in line with the Regulations for the Provision of Energy Data. The database structure

for all the current publications (Digest of South African Energy Statistics, the South African Energy Price Report,

and the South African Energy Synopsis), energy balances, monthly refi nery activity, fuel sales volume and energy

price information has been put in place. Historical data for the energy balances 1992-2009, the Joint Oil Data

Initiative 2006-2011, fuel sales volume 1996-2011, Eskom electricity sales, energy prices and SARS imports and

exports are residing in the Centralised Energy Database. The data structures for the IEP are in place.


66

Improving the frequency of published data

The national energy balances provide the core datasets for the Digest of South African Energy Statistics and the

South African Energy Synopsis. The currency of the data used for the energy balances has been enhanced by

automating some of the data collection, quality and integrity processes. Fuel sales volume data is now collected

directly from oil companies on a monthly basis and the refi nery activity data is also collected monthly. Electricity

data continues to be a challenge to collect within the three-year time lag. These challenges are primarily due to

the institutional arrangements in collecting data from municipalities.

Synopsis of the Energy Sector published

The South African Energy Synopsis was added as a new publication in 2011. It provides a summary of recent and

topical energy policies and the latest national energy statistics in a compact format. The Synopsis complements

the South African Energy Digest and Price Report. The Digest summaries historical energy supply and demand

and the Price Report provide historical prices of commonly used energy carriers.

2009 and 2010 Energy Balance published

One of the mandates of the DoE is the collection and publication of energy data for use by various stakeholders.

South Africa participates and is a signatory to many international and regional multilateral and bilateral institutions

and forums wherein the provision of quality energy data is paramount. These include the Joint Oil Data Initiative

of the International Energy Forum and the African Petroleum Producers’ Association (APPA). Furthermore, the

provision of quality energy data also informs the energy planning process for the country. The 2010 Energy

Balance data has been compiled and is awaiting approval to be published.

Carbon Capture and Storage Regulatory Framework

Under the measure “Carbon Capture and Storage Regulatory Framework”; although the target has not been

met, progress has been made in terms of short listings for appointment of a contractor. The delay is due to the

fact that the project is not under the full control of the DoE, and is fi nancially supported by the World Bank whose

procurement processes need to be adhered to in order to fi nalise the appointment of the contractor. A submission

requesting the Minister to extend the deadline from 31 March 2012 is awaiting approval. Progress has also been

made in terms of establishing the Interdepartmental Task Team on CCS. The inaugural meeting was held with

other departments on 21 November 2011. The South African CCS Road Map was tabled in Cabinet on 28 of

March 2012. The feedback was received from Cabinet with few suggestions or issues to be addressed and have

been attended to. The revised South African Carbon Capture and Storage Road Map was again presented and

accepted by Cabinet on 25 April 2012.

Clean Coal Technologies Discussion Paper

Under the measure “Clean Coal Technology Discussion Paper”; although the target has not been met, progress

has been made in terms of developing a draft document. The Minister has also approved the extension of

deadline to the end of June 2012.


67

Processing of licenses within the 90 days period

Processing of licence applications for retail/wholesale/manufacturing: 95.5% applications were processed within

90 days falling just short of the required 100% by 4.5%. The reason for this defi cit was caused by the special

projects that analysts had to deal with during the 2011/2012 fi nancial year end. This short fall was compounded

by the lack of an adequate system and inaccurate documents submitted by applicants/clients.

Progress not achieved

LPG Strategy

Under the measure “LPG Strategy Approved”; no progress has been made. The draft Strategy has to be internally

approved before publication for comment by the public.

Amendment of the Petroleum Products Act

Considering the skills gap, relevant offi cials in the DoE underwent a legislative drafting course and commenced

the actual drafting of the Petroleum Products Bill (PPB) late during the fi nancial year. The draft PPB has suffi ciently

progressed for conclusion to be tabled to Cabinet during the 2012/13 fi nancial year.

Integrated Energy Plan

During the fi nancial year, the DoE continued with the development of the IEP and the collection of the necessary

data and development of the energy models to inform the IEP. The lack of adequate data and inadequate capacity

to collect, format and develop the relevant models has continued to be a challenged. The DoE has started

building the relevant capacity in-house and has also contracted with external service providers to assist with the

data collection and model development. However, work on the Plausible Futures, Policy Analysis Framework

and Key Criteria upon which the outcomes of the IEP will be evaluated has commenced and was shared with

stakeholders at the Energy Planning Colloquium.

Arbitrations

Processing of arbitration requests by the offi ce of the Petroleum Controller: This has not been achieved because

the processing of arbitration requests has exceeded 14 working days; however, all of them were processed

within 21 working days. The complexity of these arbitration requests is the attributing factor that caused the unit

to exceed the stipulated period. This has precipitated the unit to request permission to revert back to the initial 21

working days of processing arbitration requests.


68

2.2.

5 Pr

ogra

mm

e 2

– H

ydro

carb

ons

and

Ener

gy P

lann

ing

Prog

ram

me

2: H

ydro

carb

ons

& E

nerg

y Pl

anni

ng

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*

2.1.

1 In

crea

sed

dom

estic

re

fi nin

g ca

paci

ty.

2.1.

2 N

MP

P fro

m D

urba

n to

Jo

hann

esbu

rg.

2.1.

3 Im

prov

ed li

quid

fuel

s st

orag

e &

dis

tribu

tion

infra

stru

ctur

e.

2.1.

1 70

8 ki

lo b

arre

ls p

er d

ay

(kbp

d).

2.1.

2 O

ne s

igne

d G

rant

Fun

ding

A

gree

men

t bet

wee

n D

oE &

Tr

ansn

et.

2.1.

3 B

asel

ine

not e

stab

lishe

d -

stor

age

& d

istri

butio

n da

taba

se

to b

e cr

eate

d.

2.1.

1 M

onito

r & re

port

on

dom

estic

refi n

ing

capa

city

ag

ains

t tar

gets

set

in th

e Li

quid

Fu

els

20-Y

ear I

nfra

stru

ctur

e P

lan.

2.1.

2 M

onito

r & re

port

on

prog

ress

aga

inst

the

mile

ston

es

dete

rmin

ed b

y th

e Fu

ndin

g A

gree

men

t & P

roje

ct P

lan

for

the

com

plet

ion

of th

e tru

nk li

ne.

2.1.

3 M

onito

r & re

port

on li

quid

fu

els

stor

age

& d

istri

butio

n ag

ains

t tar

gets

set

in th

e Li

quid

Fu

els

20-Y

ear I

nfra

stru

ctur

e P

lan.

2.1.

1 P

– O

nly

80%

of t

he 2

0-Ye

ar L

iqui

d Fu

els

Infra

stru

ctur

e R

oad

Map

dat

a ha

s be

en

colle

cted

& a

naly

sed.

2.

1.2

A –

Mile

ston

es fo

r 20

11/1

2:Ø

Com

plet

ion

of th

e co

nstru

ctio

n.Ø

Feel

ing

the

line

with

line

fi ll.

Ø

Com

mis

sion

ing

of th

e lin

e –

Janu

ary

2012

.

2.1.

3 P

– E

xist

ing

infra

stru

ctur

e re

cord

s ar

e up

date

d on

a

mon

thly

bas

is, b

ased

on

wha

t is

repo

rted

to N

ER

SA

, for

the

20-

Year

Liq

uid

Fuel

s In

frast

ruct

ure

Roa

d M

ap.

2.1.

1 Fu

ndin

g ch

alle

nges

. In

frast

ruct

ure

Roa

d M

ap h

alte

d to

giv

e w

ay to

the

proc

esse

s of

ex

pedi

ting

the

Refi

ner

y A

udit

activ

ities

, suc

h as

refi n

ery

visi

ts.

2.1.

2 N

o va

rianc

es to

repo

rt.

2.1.

3 Th

e co

nstra

int i

s th

at

the

DoE

is s

olel

y de

pend

ent

on N

ER

SA

for t

he p

rovi

sion

of

infra

stru

ctur

e da

ta, w

hich

so

met

imes

is n

ot c

ompl

ete.

2.2

Forty

-two

days

of c

rude

oil,

18

day

s of

fi ni

shed

pro

duct

by

gove

rnm

ent,

14 d

ays

of fi

nish

ed

prod

uct b

y oi

l com

pani

es.

2.2

Twen

ty d

ays

of c

rude

oil

by

Gov

ernm

ent.

2.2

Fina

lisat

ion

of th

e im

plem

enta

tion

plan

with

NT.

2.2

P –

A C

abin

et M

emor

andu

m

for t

he s

ubm

issi

on o

f the

D

raft

Stra

tegi

c S

tock

s P

olic

y D

ocum

ent w

as d

rafte

d &

su

bmitt

ed fo

r Min

iste

rial

appr

oval

.

2.2

The

cons

ulta

tion

proc

ess

espe

cial

ly w

ith e

xter

nal

stak

ehol

ders

has

bee

n ex

tens

ive

& to

ok lo

nger

than

ex

pect

ed. I

mpl

emen

tatio

n pl

an

still

out

stan

ding

.

2.3

Nin

e E

nerg

y S

afet

y Aw

aren

ess

Cam

paig

ns.

2.3

Thre

e Aw

aren

ess

Cam

paig

ns.

2.3

Nin

e E

nerg

y S

afet

y Aw

aren

ess

cam

paig

ns p

er

annu

m.

2.3

A –

Nin

e pu

blic

aw

aren

ess

Cam

paig

ns w

ere

cond

ucte

d by

ye

ar e

nd.

2.3

No

varia

nces

to re

port.

2.4

Pet

role

um P

rodu

cts

Act

& L

icen

sing

Aw

aren

ess

Cam

paig

ns.

2.4

Non

e.2.

4 N

ine

Pet

role

um P

rodu

cts

Act

& L

icen

sing

Aw

aren

ess

cam

paig

ns p

er a

nnum

.

2.4

A -

Nin

e pu

blic

aw

aren

ess

cam

paig

ns w

ere

cond

ucte

d by

ye

ar e

nd.

2.4

No

varia

nces

to re

port.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


69

Prog

ram

me

2: H

ydro

carb

ons

& E

nerg

y Pl

anni

ng

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*2.

5.1

Am

endm

ent o

f the

P

etro

leum

Pro

duct

s A

ct (A

ct N

o 12

0 of

197

7) to

clo

se re

gula

tory

ga

ps.

2.5.

2 A

men

dmen

t of G

as A

ct

(Act

No

48 o

f 200

1) to

incl

ude

all m

etha

ne g

ases

from

all

sour

ces.

2.5.

3 C

ompl

ianc

e w

ith th

e P

etro

leum

Pro

duct

s A

ct

mon

itore

d.

2.5.

4 C

oal P

olic

y to

add

ress

se

curit

y of

coa

l sup

ply

for

ener

gy g

ener

atio

n &

issu

es

rela

ted

to h

ealth

, env

ironm

ent

& q

ualit

y (H

EQ

), &

con

tribu

ted

& p

artic

ipat

ed in

the

com

pila

tion

of th

e se

cond

dra

ft of

the

Sou

th

Afri

can

Coa

l R

oad

Map

.

2.5.

1 P

etro

leum

Pro

duct

s A

men

dmen

t Act

(Act

No.

58

of

2003

) with

ann

exed

liqu

id fu

els

char

ter.

2.5.

2 N

o pr

ovis

ion

for m

etha

ne

gase

s fro

m a

ll so

urce

s.

2.5.

3 In

adeq

uate

enf

orce

men

t.

2.5.

4.1

No

offi c

ial p

olic

y po

sitio

n.

2.5.

4.2

Dra

ft S

outh

Afri

can

Coa

l R

oad

Map

.

2.5.

1 C

onso

lidat

ion

of A

ct N

o.

120

of 1

977,

Act

No.

58

of 2

003,

&

Act

No.

1 o

f 200

5 &

revi

ew o

f liq

uid

fuel

s ch

arte

r.

2.5.

2 A

men

dmen

ts in

trodu

ced

&

appr

oved

by

Min

iste

r & C

abin

et.

2.5.

3 C

ompl

ianc

e w

ith th

e P

etro

leum

Pro

duct

s A

ct

mon

itore

d (1

500

insp

ectio

ns).

2.5.

4 D

epar

tmen

tal a

ppro

val

of th

e C

oal P

olic

y D

iscu

ssio

n P

aper

& c

onsu

ltatio

ns w

ith

stak

ehol

ders

, & c

ontri

bute

d &

pa

rtici

pate

d in

the

com

pila

tion

of th

e se

cond

dra

ft of

the

Sou

th

Afri

can

Coa

l R

oad

Map

.

2.5.

1 N

– D

rafti

ng is

on

cour

se

& s

houl

d be

fi ni

shed

by

end

of

Apr

il 20

12.

2.5.

2 P

– A

men

dmen

ts d

rafte

d;

Min

iste

r app

rove

d th

e G

as

Am

endm

ent B

ill in

Mar

ch 2

012;

&

Dra

ft B

ill s

ubm

itted

to C

abin

et

28 M

arch

201

2.

2.5.

3 A

– 1

718

site

insp

ectio

ns

cond

ucte

d.

2.5.

4 P

2.5.

4.1

Dra

ft C

oal S

uppl

y S

trate

gy D

iscu

ssio

n P

aper

has

be

en d

evel

oped

& in

puts

hav

e be

en in

corp

orat

ed.

2.

5.4.

2. D

raft

Sou

th A

frica

n C

oal

Roa

d M

ap h

as b

een

com

plet

ed.

2.5.

1 C

apac

ity c

halle

nges

.

2.5.

2 Aw

aitin

g C

abin

et a

ppro

val.

2.5.

3 A

nnua

l tar

get e

xcee

ded

targ

et b

y 21

8.

2.5.

4 Th

e la

unch

of S

outh

A

frica

n R

oad

Map

has

bee

n de

laye

d &

pos

tpon

ed d

ue to

co

nfl ic

ting

stat

emen

ts in

the

docu

men

t.

2.6.

1 D

evel

opm

ent o

f re

gula

tions

on

LPG

, pric

ing

&

licen

sing

fram

ewor

k.

2.6.

2 Fu

el p

ricin

g sy

stem

up

date

d.

2.6.

1 LP

G re

tail

pric

e re

gula

tions

in p

lace

.

2.6.

2 B

asic

Fue

l Pric

e (B

FP) f

or

dies

el, i

llum

inat

ing

para

ffi n,

&

petro

l bas

ed o

n im

port

parit

y.

2.6.

1 LP

G S

trate

gy re

vise

d &

m

axim

um re

fi ner

y ga

te p

rice

of

LPG

& re

vise

d m

axim

um L

PG

re

tail

pric

e ap

prov

ed.

2.6.

2 S

tudy

on

revi

sion

of B

FP &

Zo

ne D

iffer

entia

l Pric

ing

Rul

es &

co

nsul

tatio

n w

ith s

take

hold

ers.

2.6.

1 N

– T

he C

abin

et m

emo

has

to b

e re

view

ed. A

ll st

akeh

olde

rs h

ave

prov

ided

in

puts

exc

ept f

or o

ne m

ajor

st

akeh

olde

r (A

frox)

. Sta

keho

lder

in

puts

are

bei

ng c

olla

ted

in

prep

arat

ion

for t

he S

take

hold

er

Wor

ksho

p.

2.6.

2 P

– Th

e Te

rms

of

Ref

eren

ce fo

r the

revi

ew o

f the

B

FP &

Mag

iste

rial D

istri

ct Z

ones

(M

DZ)

hav

e be

en fi

nalis

ed.

2.6.

1 Th

e pr

oces

s to

obt

ain

inpu

ts, e

spec

ially

with

ext

erna

l st

akeh

olde

rs to

ok lo

nger

than

ex

pect

ed.

2.6.

2 Fu

ndin

g is

requ

ired

to

sour

ce in

form

atio

n &

cont

ract

a

cons

ulta

nt to

revi

ew s

ome

of th

e B

FP &

MD

Z el

emen

ts.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


70

Prog

ram

me

2: H

ydro

carb

ons

& E

nerg

y Pl

anni

ng

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*

2.7.

1 In

stal

latio

n, te

stin

g &

co

mm

issi

onin

g of

RA

S.

2.7.

2 Fo

urte

en w

orki

ng d

ays

turn

arou

nd ti

me

per a

rbitr

atio

n re

ques

t.

2.7.

3 10

0% li

cens

e ap

plic

atio

ns

proc

esse

d in

90

days

.

2.7.

1 Im

plem

enta

tion

&

mon

itorin

g of

RA

S &

two

repo

rts

per a

nnum

on

the

calc

ulat

ed

pric

e m

argi

ns fo

r the

resp

ectiv

e se

gmen

ts o

f the

val

ue c

hain

.

2.7.

2 Fo

urte

en w

orki

ng d

ays

turn

arou

nd ti

me

per a

rbitr

atio

n re

ques

t.

2.7.

3 10

0% li

cens

e ap

plic

atio

ns

proc

esse

d in

85

days

.

2.7.

1 Im

plem

enta

tion

&

mon

itorin

g of

RA

S &

two

repo

rts

per a

nnum

on

the

calc

ulat

ed

pric

e m

argi

ns fo

r the

resp

ectiv

e se

gmen

ts o

f the

val

ue c

hain

.

2.7.

2 Fo

urte

en w

orki

ng d

ays

turn

arou

nd ti

me

per a

rbitr

atio

n re

ques

t.

2.7.

3 10

0% li

cens

e ap

plic

atio

ns

proc

esse

d in

90

days

.

2.7.

1 A

– T

he R

apid

RA

S

mar

gins

wer

e im

plem

ente

d in

fuel

pric

es s

truct

ure

on 7

D

ecem

ber 2

011.

2.7.

2 N

– A

ll ar

bitra

tion

requ

ests

ar

e no

t bei

ng fi

nalis

ed w

ithin

14

wor

king

day

s, c

orre

ctiv

e ac

tion

is to

reve

rt to

21

wor

king

day

s.

2.7.

3 P

– 95

.5%

app

licat

ions

w

ere

proc

esse

d w

ithin

90

days

; 4.

5% o

f the

app

licat

ions

cou

ld

not b

e pr

oces

sed

with

in 9

0 da

ys.

2.7.

1 Th

e fi r

st T

echn

ical

C

omm

ittee

Mee

ting

was

hel

d on

29

Mar

ch 2

012.

The

DoE

will

de

velo

p a

proj

ect p

lan

indi

catin

g al

l the

act

iviti

es &

tim

elin

es b

y 20

Apr

il 20

12.

2.7.

2 C

apac

ity c

halle

nges

.

2.7.

3 S

peci

al p

roje

cts

that

an

alys

ts m

ust fi

nal

ise,

ha

mpe

ring

prog

ress

mad

e on

ap

plic

atio

ns.

In

accu

rate

doc

umen

ts s

ubm

itted

by

app

lican

ts.

2.8

Impr

oved

bio

fuel

s pr

oduc

tion

& u

ptak

e.2.

8 N

o re

gula

tory

fram

ewor

k to

add

ress

bio

fuel

’s p

ricin

g ap

proa

ch.

2.8.

1 A

ppro

ved

Bio

fuel

s In

dust

rial S

trate

gy.

2.8.

2 A

ppro

ved

Indu

stria

l Pol

icy

Act

ion

Pla

n 2

(IPA

P2)

.

2.8.

3 P

ilot p

roje

ct.

2.8.

1 P

– Th

e bi

ofue

ls b

lend

ing

valu

e &

bre

akev

en p

rice

stud

ies

are

com

plet

ed &

the

fi nal

repo

rt ap

prov

ed b

y th

e M

inis

ter.

2.8.

2 &

2.8

.3 N

/A

2.8.

1 Th

e bi

ofue

ls s

uppo

rt m

echa

nism

sho

uld

be fi

nalis

ed

with

inpu

ts fr

om th

e N

T &

the

DTI

.

2.8.

2 &

2.8

.3 IP

AP

2 &

the

impl

emen

tatio

n th

ereo

f is

the

resp

onsi

bilit

y of

the

DTI

, & th

ese

targ

ets

can

ther

efor

e no

t be

repo

rted

on

2.9

Pro

-poo

r (pr

o- lo

w in

com

e ho

useh

olds

) pric

ing

initi

ativ

es.

2.9

Dra

ft re

port

on fi

xed

reta

il m

argi

n fo

r illu

min

atin

g pa

raffi

n.2.

9 .1

Fix

ed re

tail

mar

gin

for

illum

inat

ing

para

ffi n

appr

oved

.

2.9.

2 R

egul

atio

ns p

rom

ulga

ted

& im

plem

ente

d.

2.9.

1 P

– Th

e Fi

xed

Mar

gin

for

Illum

inat

ing

Par

affi n

Stu

dy is

co

mpl

eted

& a

ppro

ved

by th

e M

inis

ter.

2.9.

2 N

– R

egul

atio

ns n

ot

prom

ulga

ted.

2.9

The

stud

y w

as d

elay

ed

due

to u

nava

ilabi

lity

of th

e co

nsul

tant

.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


71

Prog

ram

me

2: H

ydro

carb

ons

& E

nerg

y Pl

anni

ng

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*2.

10 N

umbe

r of I

nteg

rate

d E

nerg

y C

entre

s (IE

Cs)

.2.

10 7

IEC

s es

tabl

ishe

d.2.

10 2

add

ition

al IE

Cs

oper

atio

nalis

ed.

2.10

P –

No

IEC

s op

erat

iona

lised

.2.

10 T

he M

inis

ter c

ondu

cted

the

Sod

-Tur

ning

Cer

emon

y of

the

Qw

aQw

a IE

C o

n 12

Jan

uary

20

12. T

he H

ydro

carb

ons

Chi

ef

Dire

ctor

ate

met

with

all

the

partn

ers

in a

bid

to e

xped

ite th

e es

tabl

ishm

ent o

f the

IEC

s.

2.11

Inte

grat

ed E

nerg

y P

lan

(IEP

) pub

lishe

d.2.

11 N

o in

tegr

ated

ene

rgy

plan

.2.

11.1

Cab

inet

-app

rove

d In

tegr

ated

Ene

rgy

Pla

nnin

g S

trate

gy &

IEP.

2.11

.2 O

pera

tiona

l ene

rgy

mod

ellin

g sy

stem

.

2.11

.3 P

ublic

Sta

keho

lder

W

orks

hop.

2.11

N –

Wor

k on

the

Pla

usib

le

Futu

res,

Pol

icy

Ana

lysi

s Fr

amew

ork

& K

ey C

riter

ia

upon

whi

ch th

e ou

tcom

es o

f th

e IE

P w

ill b

e ev

alua

ted

has

com

men

ced

& w

as s

hare

d w

ith

stak

ehol

ders

at t

he E

nerg

y P

lann

ing

Col

loqu

ium

.

2.11

The

lack

of a

dequ

ate

data

&

inad

equa

te c

apac

ity to

col

lect

, fo

rmat

& d

evel

op th

e re

leva

nt

mod

els

has

cont

inue

d to

be

a ch

alle

nged

. The

DoE

has

st

arte

d bu

ildin

g th

e re

leva

nt

capa

city

in-h

ouse

&ha

s al

so

cont

ract

ed w

ith e

xter

nal s

ervi

ce

prov

ider

s to

ass

ist w

ith th

e da

ta

colle

ctio

n &

mod

el d

evel

opm

ent.

2.12

.1 R

egul

atio

ns fo

r the

pr

ovis

ion

of e

nerg

y da

ta.

2.12

.2 P

roce

sses

to im

prov

e da

ta c

olle

ctio

n &

sto

rage

pr

oces

ses

deve

lope

d.

2.12

.3 C

entra

lised

Ene

rgy

Dat

a R

epos

itory

.

2.12

.4 P

rodu

ce c

urre

nt &

re

leva

nt e

nerg

y pu

blic

atio

ns.

2.12

.1 R

egul

atio

ns fo

r the

pr

ovis

ion

of e

nerg

y da

ta.

2.12

.2 E

nerg

y da

ta c

olle

ctio

n.

2.12

.3 C

entra

lised

Ene

rgy

Dat

a R

epos

itory

.

2.12

.4 P

rodu

ce c

urre

nt &

re

leva

nt e

nerg

y pu

blic

atio

ns.

2.12

.1 G

azet

ted

regu

latio

ns.

2.12

.2 2

009

& 2

010

Ene

rgy

Bal

ance

pub

lishe

d.

2.12

.3 D

ata

requ

ired

for

publ

icat

ions

& e

nerg

y pl

anni

ng

stor

ed in

a c

entra

l ele

ctro

nic

repo

sito

ry.

2.12

.4.1

Impr

ove

curr

ency

of

publ

ishe

d da

ta (n

o m

ore

than

th

ree

year

s la

g tim

e).

2.12

.4.2

Pub

lish

Syn

opsi

s of

the

Ene

rgy

Sec

tor (

with

dat

a up

to

2006

).

2.12

.1 A

– R

egul

atio

ns g

azet

ted.

2.12

.2 A

– 2

010

Ene

rgy

bala

nce

data

com

pile

d.

2.12

.3 P

– D

ata

for a

ll pu

blic

atio

ns s

tore

d in

the

cent

ralis

ed d

atab

ase.

2.12

.4 P

– A

ll da

ta g

aps

addr

esse

d bu

t dat

a no

t pu

blis

hed.

2.12

.1 N

o va

rianc

es to

repo

rt.

2.12

.2 N

o va

rianc

es to

repo

rt.

2.12

.3 P

roce

ss o

f col

lect

ing

data

for t

he IE

P is

stil

l on-

goin

g.

2.12

.4.1

The

201

0 E

nerg

y D

iges

t will

be

circ

ulat

ed fo

r in

tern

al re

view

& a

ppro

val

befo

re th

e en

d of

Apr

il 20

12.

2.12

.4.2

The

pro

ject

was

de

laye

d du

e to

Wor

ld B

ank

proc

urem

ent p

roce

dure

s.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


72

Prog

ram

me

2: H

ydro

carb

ons

& E

nerg

y Pl

anni

ng

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*2.

13 C

CS

mec

hani

sms

esta

blis

hed.

2.13

.1 P

ublis

hed

Atla

s fo

r CO

2 ge

olog

ical

sto

rage

.2.

13.2

No

polic

y/re

gula

tory

fra

mew

ork

for C

CS

.2.

13.3

Est

ablis

hmen

t of S

outh

A

frica

n C

entre

for C

arbo

n C

aptu

ring

& S

tora

ge (S

AC

CC

S)

unde

r SA

NE

DI.

2.13

App

rova

l by

Min

iste

r of

CC

S re

gula

tory

fram

ewor

k.2.

13 P

– C

CS

Roa

d M

ap w

as

tabl

ed in

Cab

inet

.

2.

13 T

he p

roje

ct w

as d

elay

ed

due

to W

orld

Ban

k pr

ocur

emen

t pr

oced

ures

.

2.14

Incr

ease

d us

e of

cle

aner

hy

droc

arbo

ns.

2.14

Bas

elin

e to

be

esta

blis

hed

by 2

011/

12.

2.14

Mon

itorin

g ag

ains

t In

tegr

ated

Res

ourc

es P

lan

(IRP

2) &

20-

year

Liq

uid

Fuel

s In

frast

ruct

ure

Roa

d M

ap.

2.14

P –

80%

of t

he 2

0-Ye

ar

Liqu

id F

uels

Infra

stru

ctur

e

Roa

d M

ap d

ata

has

been

co

llect

ed &

ana

lyse

d.

2.14

The

fi na

lisat

ion

of th

e co

llect

ion

of th

e 20

-Yea

r Liq

uid

Fuel

s In

frast

ruct

ure

Roa

d M

ap

has

been

del

ayed

. Ano

ther

m

ajor

con

stra

int h

as b

een

the

lack

of f

unds

. Thi

s ca

used

co

nsul

tant

s to

slo

w d

own

deliv

ery

on th

e pr

ojec

t. 2.

15 R

evis

ed F

uel

Spe

cifi c

atio

ns &

Sta

ndar

ds

(Cle

an fu

els

2).

2.15

Fue

l Spe

cifi c

atio

ns &

S

tand

ards

Reg

ulat

ions

, 200

6.2.

15.1

App

rova

l of D

oE’s

di

scus

sion

doc

umen

t by

Min

iste

r.

2.15

.2 P

ublic

atio

n of

the

DoE

’s

disc

ussi

on d

ocum

ent.

2.15

P –

Dra

ft A

men

dmen

t R

egul

atio

ns w

ere

publ

ishe

d in

Oct

ober

201

1 fo

r pub

lic

com

men

t with

15

Dec

embe

r 20

11 a

s th

e cl

osin

g da

te. A

S

take

hold

er W

orks

hop

was

hel

d in

Feb

ruar

y 20

12 to

dis

cuss

co

mm

ents

.

2.15

Fin

alis

atio

n of

the

Dra

ft A

men

dmen

t Reg

ulat

ions

has

be

en d

elay

ed b

y th

e ex

tens

ive

& p

rotra

cted

dis

cuss

ion

on

the

issu

e of

cos

t rec

over

y m

echa

nism

for r

efi n

ery

upgr

ades

with

the

oil i

ndus

try is

de

man

ding

from

the

DoE

. Thi

s st

ill h

as to

be

fi nal

ised

.2.

16 C

lean

coa

l tec

hnol

ogie

s po

licy.

2.16

.1 N

o po

licy

posi

tion

on

clea

n co

al te

chno

logi

es.

2.16

.2 D

raft

of th

e S

outh

Afri

can

Coa

l R

oad

Map

.

2.16

.1 A

ppro

val o

f Cle

an C

oal

Tech

nolo

gies

Dis

cuss

ion

Pap

er

by M

inis

ter.

2.16

.2 C

onsu

ltatio

ns w

ith

stak

ehol

ders

.

2.16

.3 C

ontri

bute

to &

pa

rtici

pate

in th

e dr

aftin

g of

th

e se

cond

Sou

th A

frica

n C

oal

Roa

d M

ap.

2.16

N –

The

dra

ft C

lean

Coa

l Te

chno

logi

es D

iscu

ssio

n P

aper

is

bei

ng d

evel

oped

.

2.16

Cap

acity

cha

lleng

es. T

o be

ac

hiev

ed b

y Ju

ne 2

012.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able

Tabl

e 13


73

2.2.6 Programme 3: Electricity, Nuclear and Clean Energy

Purpose

The purpose of the programme is to:Ø Develop, implement and review electricity policies for improved energy regulations and competition;Ø Govern the South African nuclear energy industry and control source and special materials in terms of nuclear

legislation and policies in order to ensure peaceful use of nuclear energy; andØ Manage and facilitate the development and implementation of clean and renewable energy initiatives.


The branch consists of the following chief directorates:-Ø Electricity Ø NuclearØ Clean EnergyØ INEP Progress and Achievements

Electricity

The regulatory framework for the diversifi cation of our energy sources was improved through the introduction of regulations for new generation capacity through IPPs. Legislation for the separation of generation, transmission and the distribution function was introduced (the ISMO Bill) in Parliament as part of a continuous process to improve sector regulation. Over and above the Eskom Build Programme, IPPs were introduced for the generation of energy through wind, solar and hydro technologies. Over R 46 billion of investment by the private sector is expected to occur in the renewable energy sector in South Africa, making it one of the biggest drivers of economic growth. On the socio-economic front, the acceleration of programmes to introduce solar water heating and free basic energy served to cushion the poor against increasing electricity tariffs (driven by the Capital Expansion Programme). To date, over 280 000 solar water heaters have been installed. In addition, about 150 000 households are connected to the grid and through off-grid technologies, through the INEP. The IRP was adopted in March 2011 and its implementation commenced in the year under review. Apart from the RE IPP Procurement Programme, the Energy Effi ciency Campaign was launched in collaboration with the social partners at Nedlac (business, labour and civil society).


74

Nuclear

The phased decision-making approach for the implementation of the Nuclear Power Programme was adopted with the institutionalisation of the NNEECC, under the stewardship of the Deputy President. This serves as a critical step in making the relevant decisions leading to the procurement of the 9 600 MW of nuclear plants envisaged under the IRP.

Integrated National Electrifi cation Programme

The INEP Business Unit manage the electrifi cation planning, funding and implementation process, including

addressing electrifi cation backlogs in the quest to achieve universal access to electricity.

INEP Grid Programme

The unit were able to contract with Eskom and a total number of 143 municipalities during the fi nancial year

under review to be implementing agents for INEP. The gazetted allocations for both Eskom – R 1.8 billion and the

Municipal allocations of R 1.1 billion was successfully been transferred to the respective implementing agents.

A total number of 811 projects were approved which all have met the INEP funding criteria. These projects

were all verifi ed prior to the allocations been gazetted. Implemented projects have been continuously been

monitored throughout the fi nancial year and close out reports were prepared and submitted to the department by

implementing agents who have successfully completed projects.

During the implementation of these 811 projects it has been observed that some projects are not performing as

been agreed and contained in the contract. As a result, INEP had to re-gazetted some allocation to other projects

or Municipalities. An amount of R278 mil was re-allocated during October 2011 to alternative projects to ensure

improved delivery.

INEP Non-Grid Programme

A total number of four concessioniares were appointed by the department to implement the non-grid electrifi cation

program within the concessioned areas. These concessioned areas vested within KwaZulu Natal, Eastern Cape

and Limpopo. The total allocated budget for the fi nancial year under review amounted to R 70.8 million and 100%

of the said allocation was spend. The target connected to the allocations was to provide 10 000 Solar Home

Systems (SHS) to households which falls within the criteria of non-grid electrifi cation. INEP have succeeded in

connecting 10 268 SHS by the end of 31 March 2012.

INEP Technical audits

Technical audits were conducted on a sample of 30% of the total number of projects completed. The audits

focused on ensuring that; (a) the implemented projects are completed with the allocated grant; (b) technical

standards, occupational health and safety standard are adhered to; (c) the project are implemented correctly and

agrees to the approved technical designs and specifi cations; and (d) to verify whether the contracted installations

were completed and achieved.


75

Prog

ram

me

3: E

lect

ricity

, Nuc

lear

and

Cle

an E

nerg

y

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*1.

1 N

ew e

lect

ricity

gen

erat

ion

capa

city

.

1.2

Fund

ing

fram

ewor

k fo

r th

e re

sour

cing

of t

he E

skom

C

omm

itted

Cap

ital E

xpen

ditu

re

Pro

gram

me.

1.3

Mon

itor &

repo

rt on

pro

gres

s of

app

rove

d bu

ild p

lan

proj

ects

ag

ains

t sch

edul

e &

bud

get b

y E

skom

.

44 5

35 M

W (2

010)

low

rese

rve

mar

gin.

1.1

Pro

gres

s on

con

stru

ctio

n of

new

ele

ctric

ity g

ener

atio

n ca

paci

ty to

ach

ieve

45

647

MW

by

201

2/13

.

1.2

Min

iste

rial &

Cab

inet

su

bmis

sion

s &

app

rova

l of

fund

ing

mod

el fo

r Esk

om.

1.3

Mon

itor &

repo

rt on

co

nstru

ctio

n pr

ogre

ss a

gain

st

sche

dule

& b

udge

t & fl

ag

prob

lem

are

as.

1.1

A

1.2

A

1.3

A

New

gen

erat

ion

capa

city

to

the

exte

nt o

f 2 4

00 M

W o

f re

new

able

ene

rgy

pow

er

stat

ions

wer

e in

trodu

ced

thro

ugh

IPP

s. A

ppro

xim

atel

y 1.

4 TW

h (T

erra

Wat

ts h

our)

of

ener

gy s

avin

gs re

alis

ed b

ut n

ot

verifi

ed

(Esk

om C

EO

Rep

ort).

2. 9

2 %

hou

seho

lds

elec

trifi e

d (1

50 0

00 c

onne

ctio

ns a

nnua

lly

with

an

addi

tiona

l 10

000

off

grid

).

2. 8

1 %

hou

seho

lds

elec

trifi e

d (1

2.5

mill

ion)

of w

hich

31

643

are

sola

r ele

ctric

ity h

ome

syst

ems.

2. 8

3 %

hou

seho

lds

elec

trifi e

d 15

0 00

0 co

nnec

tions

ann

ually

w

ith a

n ad

ditio

nal 1

0 00

0 of

f grid

co

nnec

tions

).

2. 1

41 3

90 h

ouse

hold

s co

nnec

ted

to th

e gr

id &

10

000

non-

grid

con

nect

ions

wer

e m

ade.

2. T

he re

mai

ning

con

nect

ions

w

ill b

e ac

hiev

ed b

y th

e en

d of

th

e m

unic

ipal

fi na

ncia

l yea

r, w

hich

is in

Jun

e.

3.1

Rep

ort d

etai

ling

a m

ap

of d

istri

butio

n as

sets

sta

tus

per m

etro

, sec

onda

ry c

ity &

re

mai

ning

mun

icip

aliti

es.

3.2

AD

AM

reha

bilit

atio

n (im

plem

enta

tion

& fu

ndin

g) p

lan

for d

istri

butio

n in

frast

ruct

ure.

Pro

blem

iden

tifi c

atio

n re

port

(AD

AM

).

No

impl

emen

tatio

n pl

an.

ED

IH w

ound

dow

n in

Mar

ch

2011

. R 2

7.4

billi

on b

ackl

og.

3.1

Rep

ort d

etai

ling

a m

ap o

f di

strib

utio

n as

sets

sta

tus

per

met

ro.

3.2.

AD

AM

impl

emen

tatio

n &

fund

ing

plan

app

rove

d fo

r m

etro

s.

3.1

A

3.2

P

3.1

No

varia

nces

to re

port.

3.2

The

exte

nt o

f the

fund

ing

requ

irem

ent i

s m

uch

mor

e th

an th

e re

quire

men

t to

fund

th

e M

etro

Ref

urbi

shm

ent

Pro

gram

me.

4.1

App

rove

d N

ucle

ar

Pro

cure

men

t Pro

gram

me

rela

tive

to IR

P.

No

Pro

cure

men

t Pro

gram

me

at

pres

ent.

Mat

eria

ls T

est R

eact

or F

uel

Man

ufac

turin

g Fa

cilit

ies

only

(in

conj

unct

ion

with

NE

CS

A).

Nat

iona

l Rad

ioac

tive

Was

te

Dis

posa

l Ins

titut

e A

ct, 2

008.

4.1

Cab

inet

app

rova

l of P

hase

d D

ecis

ion-

Mak

ing

App

roac

h.

4.1

A –

Cab

inet

app

rove

d th

e P

hase

d D

ecis

ion-

Mak

ing

App

roac

h &

est

ablis

hmen

t of

the

NN

EE

CC

on

9 N

ovem

ber

2011

.

4.1

No

varia

nces

to re

port.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


76

Prog

ram

me

3: E

lect

ricity

, Nuc

lear

and

Cle

an E

nerg

y

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*4.

2 N

ucle

ar F

uel C

ycle

In

frast

ruct

ure

deve

lope

d fo

r be

nefi c

iatio

n of

ura

nium

to

supp

ort n

ew n

ucle

ar b

uild

pr

iorit

ies.

4.3

Est

ablis

hed

Nat

iona

l R

adio

activ

e W

aste

Dis

posa

l In

stitu

te (N

RW

DI).

No

Pro

cure

men

t Pro

gram

me

at

pres

ent.

Mat

eria

ls T

est R

eact

or F

uel

Man

ufac

turin

g Fa

cilit

ies

only

(in

conj

unct

ion

with

NE

CS

A).

Nat

iona

l Rad

ioac

tive

Was

te

Dis

posa

l Ins

titut

e A

ct, 2

008.

4.2

Com

plet

e pr

efea

sibi

lity

stud

ies.

4.3

App

rove

d bu

sine

ss p

lan

&

budg

et.

4.2

Com

plet

ed.

4.3

A

4.2

This

pro

ject

is n

ot c

ritic

al

to th

e N

ucle

ar P

rogr

amm

e at

this

sta

ge o

f the

Nuc

lear

P

rogr

amm

e. It

form

s pa

rt of

th

e P

hase

d D

ecis

ion-

Mak

ing

App

roac

h.

4.3

Impl

emen

tatio

n of

NR

WD

I tra

nsiti

onal

stru

ctur

e un

fund

ed.

5.1

Sec

urity

mea

sure

s at

por

ts

of e

ntry

sta

ndar

dise

d.5.

2 P

orta

l Rad

iatio

n M

onito

rs a

t m

ain

ports

of e

ntry

inst

alle

d.

5. E

stab

lishe

d se

curit

y sy

stem

s at

por

ts o

f ent

ry.

5. S

tand

ardi

satio

n of

sec

urity

m

easu

res

at m

ain

ports

of

entry

incl

udin

g in

stal

latio

n of

Rad

iatio

n P

orta

l Mon

itors

(R

PM

s).

5. N

5. C

onsu

ltatio

n pr

oces

s w

ith

SA

RS

, AC

SA

, & T

rans

net

on-g

oing

. The

vis

it by

the

supp

lier h

as b

een

unde

rtake

n &

m

easu

rem

ents

con

fi rm

ed. T

he

tech

nica

l rep

ort f

or o

ne o

f thr

ee

ports

has

bee

n ap

prov

ed b

y S

outh

Afri

ca &

IAE

A.

6. L

egis

latio

n fo

r the

intro

duct

ion

of IS

MO

impl

emen

ted.

6. N

o le

gisl

atio

n fo

r the

es

tabl

ishm

ent o

f IS

MO

.6.

Leg

isla

tion

for t

he in

trodu

ctio

n of

ISM

O in

trodu

ced

& a

ppro

ved

by M

inis

ter &

Cab

inet

&

prom

ulga

ted.

6. A

– B

ill a

ppro

ved

by th

e M

inis

ter,

Ned

lac

cons

ulta

tions

fi n

alis

ed &

pub

lic c

onsu

ltatio

ns

com

men

ced.

6. N

o va

rianc

es to

repo

rt.

7.1

Qua

ntity

of p

ower

pro

cure

d fro

m IP

Ps.

7.2

Qua

ntity

of p

ower

ge

nera

tors

by

IPP

s.

7.3

IPP

unit

esta

blis

hed

for t

he m

anag

emen

t of I

PP

Pro

gram

me.

Min

imal

MW

con

tribu

ted

to g

rid.

No

IPP

s, n

o in

depe

nden

t buy

er.

IPP

proc

urem

ent d

one

on a

d ho

c ba

sis

with

no

dedi

cate

d pr

ojec

t tea

m.

7.1

Reg

ulat

ions

for n

ew

gene

ratio

n ca

paci

ty

prom

ulga

ted.

7.2.

1 S

tand

ards

set

for

proc

urem

ent d

ocum

enta

tion

&

diss

emin

atio

n.

7.2.

2 R

FQ –

RFC

laun

ched

to

proc

ure

pow

er fr

om IP

Ps.

7.3

Est

ablis

hed

IPP

unit

resp

onsi

ble

for m

anag

ing

IPP

s w

ith e

xten

sive

sup

port

from

ex

tern

al e

xper

ts.

7.1

A –

Ele

ctric

ity R

egul

atio

n A

men

dmen

t Bill

– C

abin

et

Mem

o ap

prov

ed fo

r pub

lic

com

men

ts.

7.2

A –

The

RFQ

– R

FC

docu

men

ts w

ere

laun

ched

on

03 A

ugus

t 201

1.

7.3

P –

Agr

eem

ents

with

ex

tern

al e

xper

ts s

igne

d.

7.1

No

varia

nces

to re

port.

7.2

No

varia

nces

to re

port.

7.3

In p

roce

ss o

f fi ll

ing

vaca

ncie

s.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


77

Prog

ram

me

3: E

lect

ricity

, Nuc

lear

and

Cle

an E

nerg

y

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*8.

1.1

Nat

iona

l Nuc

lear

R

egul

ator

Act

am

ende

d.

8.1.

2 N

ucle

ar E

nerg

y A

ct

amen

ded.

8.2

Fund

ing

prov

isio

ns

legi

slat

ed fo

r rad

ioac

tive

was

te

man

agem

ent.

8.3

Saf

egua

rds

func

tion

rem

oved

from

nuc

lear

ope

rato

r to

Sta

te S

yste

m o

f Acc

ount

ing

& C

ontro

l (S

SA

C) o

f nuc

lear

m

ater

ials

.

8.1

Legi

slat

ion

gove

rnin

g nu

clea

r sec

tor o

ver 1

0 ye

ars

old.

8.2

No

fi nan

cial

pro

visi

on fo

r lo

ng-te

rm m

anag

emen

t of

radi

oact

ive

was

te.

8.3

Saf

egua

rds

func

tion

impl

emen

tatio

n cu

rren

tly

perfo

rmed

by

a nu

clea

r ope

rato

r.

8.1

Res

ched

uled

due

to

depe

nden

cy o

n pr

ocur

emen

t pr

oces

s.

8.2

Dra

ft Fu

nd B

ill a

ppro

ved

by

Cab

inet

.

8.3

Fram

ewor

k fo

r with

draw

al o

f th

e sa

fegu

ards

func

tion

from

a

licen

sed

oper

ator

.

8.1

N

8.2

N

8.3

N

8.1

Inpu

ts h

ave

been

rece

ived

fro

m th

e N

NR

rega

rdin

g th

e pr

ovis

ions

of t

he N

atio

nal

Nuc

lear

Reg

ulat

or A

ct, A

ct 4

7 of

19

99, t

hat n

eed

to b

e am

ende

d.

The

prop

osed

am

endm

ents

will

be

take

n th

roug

h th

e re

leva

nt

proc

ess

whi

ch w

ill c

ulm

inat

e in

the

Bill

bei

ng s

ubm

itted

to

Par

liam

ent.

8.2

The

Rad

ioac

tive

Was

te

Man

agem

ent F

und

Bill

do

cum

ent i

s cu

rren

tly b

eing

dr

afte

d. It

is s

till a

n in

tern

al

docu

men

t tha

t is

not a

ppro

ved.

9.1

Aut

horis

atio

ns o

r den

ials

fo

r nuc

lear

mat

eria

ls &

rela

ted

equi

pmen

t iss

ued.

9.2

Nuc

lear

saf

egua

rds

com

plia

nce

insp

ectio

ns, a

udits

&

inve

stig

atio

ns c

ondu

cted

.

9.3

Par

ticip

ated

in p

roce

edin

gs

in te

rms

of N

on-P

rolif

erat

ion

Trea

ty, N

ucle

ar S

uppl

iers

G

roup

, Zan

ger C

omm

ittee

&

Pel

inda

ba T

reat

y.

9.4

Num

ber o

f com

mun

ity

outre

ach

even

ts p

er a

nnum

.

9.1

100

auth

oris

atio

ns o

r den

ials

fo

r nuc

lear

mat

eria

ls &

rela

ted

equi

pmen

t iss

ued

with

in e

ight

w

eeks

.

9.2

Four

nuc

lear

saf

egua

rds

com

plia

nce

insp

ectio

ns, a

udits

&

inve

stig

atio

ns c

ondu

cted

.

9.3

Par

ticip

ated

in fo

ur

proc

eedi

ngs

in te

rms

of N

on-

Pro

lifer

atio

n Tr

eaty

, Nuc

lear

S

uppl

iers

Gro

up, Z

ange

r C

omm

ittee

& P

elin

daba

Tre

aty.

9.4

Thre

e co

mm

unity

out

reac

h ev

ents

.

9.1

A

9.2

A

9.3

P

9.4

P –

One

com

mun

ity e

vent

w

as c

ompl

eted

.

9.1

No

varia

nces

to re

port.

9.2

No

varia

nces

to re

port.

9.3

Par

ticip

ated

in o

ne m

eetin

g of

the

nucl

ear s

uppl

iers

gro

up

but p

rovi

ded

inpu

ts to

war

ds th

e de

cisi

on m

akin

g on

the

Zang

er

Com

mitt

ee &

Pel

inda

ba T

reat

y &

the

Non

-Pro

lifer

atio

n Tr

eaty

.

9.4

Inad

equa

te fu

ndin

g to

ac

hiev

e th

is ta

rget

.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


78

Prog

ram

me

3: E

lect

ricity

, Nuc

lear

and

Cle

an E

nerg

y

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*10

.1 S

avin

gs v

erifi

catio

n m

echa

nism

est

ablis

hed.

10.2

Qua

ntity

of E

ED

SM

sa

ving

s re

alis

ed.

10.3

Ene

rgy

effi c

ienc

y in

cent

ive

sche

me

esta

blis

hed

&

impl

emen

ted.

10.4

Ene

rgy

effi c

ienc

y pr

ojec

ts

impl

emen

ted.

10.5

One

mill

ion

sola

r wat

er

heat

ing

units

inst

alle

d in

re

side

ntia

l & c

omm

erci

al s

ecto

rs

by 2

014/

15.

10.6

EE

Cam

paig

n.

10.1

Som

e m

unic

ipal

ities

hav

e no

Dem

and-

Site

Man

agem

ent

(DS

M) P

rogr

amm

es.

10.2

No

ince

ntiv

e sc

hem

e fo

r E

ED

SM

.

10.3

No

verifi

cat

ion

syst

em fo

r E

ED

SM

sav

ings

.

10.5

55

000

sola

r wat

er h

eatin

g un

its in

stal

led.

10.1

Sav

ings

ver

ifi ca

tion

mec

hani

sm e

stab

lishe

d.

10.2

One

TW

h co

mbi

ned

savi

ngs

verifi

ed

from

EE

DS

M

proj

ects

, inc

ludi

ng m

unic

ipal

&

Esk

om c

ontri

butio

ns.

10.3

Ene

rgy

effi c

ienc

y in

cent

ive

sche

me

& re

gula

tions

de

velo

ped

& in

trodu

ced.

10.4

Mon

itor &

repo

rt on

pro

ject

im

plem

enta

tion.

10.5

250

041

sol

ar w

ater

he

atin

g un

its in

stal

led.

10.6

App

rove

d E

E C

ampa

ign

Stra

tegy

.

10.1

P –

Info

rmat

ion

requ

ired

for

verifi

cat

ion

not fi

nal

ised

.

10.2

A –

Abo

ut 1

.471

TW

h ha

s be

en a

chie

ved

beyo

nd th

e 1

TWh.

10.3

A –

The

Sta

ndar

ds fo

r E

nerg

y M

anag

emen

t (S

AN

S

5001

0) &

Mea

sure

men

t &

Verifi

cat

ion

(M&

V) (

SA

NS

50

001)

wer

e fi n

alis

ed &

ga

zette

d.

10.4

P –

EE

DS

M m

onito

ring

prot

ocol

s &

M&

V s

cope

de

velo

ped

& w

orks

hopp

ed w

ith

stak

ehol

ders

.

10.5

P –

242

000

sol

ar w

ater

he

ater

s (S

WH

) ins

talle

d.

10.6

P –

Ene

rgy

Effi

cien

cy

Cam

paig

n S

trate

gy w

as

deve

lope

d &

laun

ched

at C

OP

17 in

Dec

embe

r 201

1.

10.1

The

info

rmat

ion

rece

ived

&

to b

e re

ceiv

ed fr

om m

unic

ipal

E

ED

SM

Pro

gram

me

& o

ther

im

plem

ente

rs w

ill s

till n

eed

to b

e ve

rifi e

d or

aud

ited,

&

fi nan

cial

reso

urce

s w

ill b

e re

quire

d fo

r thi

s. A

n R

FI o

n en

ergy

sav

ings

from

sec

tors

ha

s be

en is

sued

for s

ubm

issi

on

by e

nd M

ay 2

012.

10.2

How

ever

, the

se fi

gure

s ex

clud

e el

ectri

city

sav

ings

from

th

e m

unic

ipal

Ene

rgy

Effi

cien

cy

Pro

gram

me

whe

re th

e da

ta w

ill

be re

ceiv

ed b

y en

d Ju

ne 2

012.

10.3

No

varia

nces

to re

port.

10.4

The

ach

ieve

men

t of t

his

targ

et is

pen

ding

app

oint

men

t M

&V

exp

erts

to v

erify

the

ener

gy s

avin

gs.

10.5

Ene

rgy

Con

serv

atio

n S

chem

e (E

CS

) rul

es w

ere

draf

ted

but s

till p

endi

ng

appr

oval

. Ene

rgy

Effi

cien

cy

Acc

ord

with

Bus

ines

s re

vise

d &

laun

ched

in th

e fo

rm o

f the

E

nerg

y E

ffi ci

ency

Lea

ders

hip

Net

wor

k.

10.6

How

ever

, the

im

plem

enta

tion

of th

e C

ampa

ign

will

be

done

in th

e ne

xt fi

nanc

ial y

ear.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


79

Prog

ram

me

3: E

lect

ricity

, Nuc

lear

and

Cle

an E

nerg

y

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*11

. Med

ium

-Ter

m R

isk

Miti

gatio

n P

lan

(MTR

MP

) ad

opte

d.

11. D

raft

MTR

MP

Low

rese

rve

mar

gin.

11.1

Dra

ft M

TRM

P pu

blis

hed

for

publ

ic c

omm

ent.

11.2

. MTR

MP

appr

oved

by

Min

iste

r/Cab

inet

as

part

of th

e of

th

e es

tabl

ishm

ent o

f IP

Ps.

11. A

11. N

o va

rianc

es to

repo

rt.

12. C

ost r

efl e

ctiv

e ta

riffs

co

mpl

eted

, inc

ludi

ng m

easu

res

to p

rote

ct th

e po

or.

Ele

ctric

ity P

ricin

g P

olic

y in

pl

ace;

IBT

intro

duce

d bu

t doe

s no

t cov

er p

repa

id m

eter

s. M

ulti-

year

pric

e.

Det

erm

inat

ion

2 ha

s aw

arde

d a

25%

incr

ease

for t

he n

ext t

hree

ye

ars

(201

0/11

to 2

012/

13) w

ith

IBT

for q

ualif

ying

hou

seho

lds.

12.1

Impr

ove

the

impl

emen

tatio

n of

the

IBT

in a

ll th

e m

unic

ipal

ities

.

12.2

Mon

itor e

ffect

iven

ess

of

Mul

ti-Ye

ar P

rice

Det

erm

inat

ion

(MY

PD

2) in

alig

ning

the

tarif

f to

the

true

cost

of p

rodu

ctio

n.

12. 3

Ext

end

IBT

to c

over

pr

epai

d m

eter

s in

Esk

om a

reas

.

12.1

P

12.2

A –

Ass

et v

alua

tion

appr

oach

has

bee

n al

igne

d w

ith

polic

y.

12.3

A –

IBT

for p

repa

id

met

erin

g w

as in

trodu

ced

in

Esk

om a

reas

.

12.1

IBT

impl

emen

ted

in

appr

oxim

atel

y 70

% o

f the

m

unic

ipal

ities

. Fur

ther

co

nsul

tatio

n in

pro

gres

s to

in

trodu

ce IB

T to

the

rem

aini

ng

mun

icip

aliti

es.

12.2

No

varia

nces

to re

port.

12.3

No

varia

nces

to re

port.

13.1

Com

plet

ed R

enew

able

E

nerg

y W

hite

Pap

er R

evie

w.

13.2

Pro

gres

sive

dep

loym

ent o

f re

new

able

ene

rgy

sour

ces.

2 00

0 G

Wh

(1%

of c

onsu

mpt

ion

rate

).

Onl

y pi

lot p

roje

cts

for l

andfi

ll

gas,

win

d (D

arlin

g) &

Hyd

ro

(Bet

hleh

em).

1. Z

ero

MW

.

13.1

Non

e.

13.2

4 0

00 G

Wh

gene

rate

d.

13.1

N/A

13.2

P –

Ren

ewab

le E

nerg

y IP

P pr

oces

s co

mm

ence

d bu

t ac

tual

gen

erat

ion

of e

lect

ricity

no

t com

men

ced.

1 4

15 M

W

allo

cate

d in

fi rs

t bid

ding

win

dow

.

13.1

No

spec

ifi c

targ

ets

wer

e se

t for

201

1/12

. Tar

gets

to b

e de

term

ined

from

201

2/13

.

13.2

RE

FIT

(Ren

ewab

le E

nerg

y Fe

ed-in

Tar

iff) P

rogr

amm

e w

as

repl

aced

by

the

Ren

ewab

le

Ene

rgy

Inde

pend

ent

Pow

er P

rodu

cers

(RE

-IPP

) P

rogr

amm

e.14

.1 C

o-ho

stin

g C

OP

17.

No

dedi

cate

d pr

ojec

t tea

m.

No

prep

arat

ion

in p

lace

.

No

dedi

cate

d fu

ndin

g in

pla

ce.

14.1

.1 P

roje

ct p

lan

prop

osal

ap

prov

ed c

over

ing

activ

ities

, lo

gist

ics,

role

s &

resp

onsi

bilit

ies

& fu

ndin

g.

14.1

.2 C

oord

inat

ion

with

lead

depa

rtmen

ts &

oth

ergo

vern

men

ts. I

nter

-dep

artm

enta

l w

orkg

roup

est

ablis

hed

(201

1/12

).

14.1

– 1

4.5

A14

.1 –

14.

5 N

o va

rianc

es to

re

port.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


80

Prog

ram

me

3: E

lect

ricity

, Nuc

lear

and

Cle

an E

nerg

y

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*14

.2 S

A po

sitio

n pa

per o

n is

sues

re

late

d to

Cle

an D

evel

opm

ent

Mec

hani

sm (C

DM

).

14.3

Par

ticip

ate

in U

NFC

CC

ev

ents

.

14.4

Impl

emen

tatio

n of

U

NFC

CC

dec

isio

ns.

14.5

Rep

orts

on

the

outc

omes

of

the

UN

FCC

C m

eetin

gs.

No

dedi

cate

d pr

ojec

t tea

m.

No

prep

arat

ion

in p

lace

.

No

dedi

cate

d fu

ndin

g in

pla

ce.

14.2

Upd

ated

pos

ition

pap

er o

n C

DM

.

14.3

Par

ticip

ate

in U

NFC

CC

ev

ents

.

14.4

Impl

emen

tatio

n of

UN

FCC

C

deci

sion

s.

14.5

Rep

orts

on

the

outc

omes

of

the

UN

FCC

C m

eetin

gs.

15.1

App

rove

d C

DM

pro

ject

s.

15.2

CD

M a

war

enes

s le

adin

g to

th

e in

crea

se o

f pro

ject

s.

15.1

100

% o

f all

CD

M

appl

icat

ions

pro

cess

ed w

ithin

the

set t

imef

ram

es -

45 w

orki

ng d

ays

for P

roje

ct D

esig

n D

ocum

ents

(P

DD

s) &

30

wor

king

day

s fo

r P

roje

ct In

form

atio

n N

otes

(PIN

s).

15.2

.1 U

pdat

e th

e gu

idan

ce

base

d on

the

Con

fere

nce

&

Mee

ting

of P

artie

s de

cisi

on o

n C

DM

.

15.2

.2 C

DM

Aw

aren

ess

Cam

paig

n.15

.2.3

Dev

elop

sec

tor b

ookl

ets.

15.1

P –

101

pro

ject

s (6

6 P

INs

& 3

5 P

DD

s) w

ere

subm

itted

to

DN

A. O

ut o

f the

101

pro

ject

s 68

pr

ojec

ts w

ere

revi

ewed

with

in

the

timef

ram

e, 2

5 w

ere

late

&

eigh

t pen

ding

.

15.2

.1 P

– D

NA

advi

sory

m

eetin

g ho

sted

.

15.2

.2 A

– F

ive

prov

inci

al

(Gau

teng

, Nor

th-W

est,

Wes

tern

C

ape,

Lim

popo

, Kw

a-Zu

lu N

atal

) &

one

sec

tor (

Car

bon

Fina

nce)

.

15.2

.3 A

– W

aste

sec

tor

book

let c

ompl

eted

& p

rinte

d.

Con

stru

ctio

n &

tran

spor

t sec

tor

book

lets

com

plet

ed b

ut n

ot

prin

ted.

15.1

PD

Ds

subm

itted

with

out

draf

t sig

ned,

Val

idat

ion

Rep

ort &

ou

tsta

ndin

g re

cord

of d

ecis

ion

&

inte

rnal

del

ays

on s

ubm

issi

ons.

15.2

.1 D

ue to

fi na

ncia

l co

nstra

ints

the

book

lets

for

cons

truct

ion

& tr

ansp

ort s

ecto

r co

uld

not b

e pr

inte

d.

15.2

.2 &

15.

2.3

No

varia

nces

to

repo

rt.

16. I

mpr

ove

biof

uels

pro

duct

ion

& u

ptak

e.16

. No

regu

lato

ry fr

amew

ork

to a

ddre

ss b

iofu

el’s

pric

ing

appr

oach

.

16. P

ilot p

roje

ct.

16. N

– T

his

targ

et h

as b

een

defe

rred

to th

e ne

xt fi

nanc

ial

year

, 201

2/13

.

16. B

io-fu

els

proj

ect c

ould

not

be

initi

ated

bef

ore

com

plet

ion

of th

e pr

ojec

ts li

sted

in 2

.8 a

bove

.17

. Env

ironm

enta

l Man

agem

ent.

17. 3

rd E

nviro

nmen

tal

Man

agem

ent P

lan

(EM

P).

17. 3

rd E

MP

deve

lope

d &

im

plem

ente

d. 2

010/

11 E

MP

Com

plia

nce

Rep

ort d

evel

oped

&

subm

itted

.

17. A

– 2

010/

11 E

MP

com

plia

nce

appr

oved

by

DG

& s

ubm

itted

to

Env

ironm

enta

l Affa

irs.

17. N

o va

rianc

es to

repo

rt.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


81

Prog

ram

me

3: E

lect

ricity

, Nuc

lear

and

Cle

an E

nerg

y

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*18

. Ene

rgy

effi c

ienc

y.18

.1 E

nerg

y E

ffi ci

ency

Tar

get

Mon

itorin

g.

18.2

Ene

rgy

effi c

ienc

y in

th

e in

dust

rial s

ecto

r. E

nerg

y C

onse

rvat

ion

Sch

eme

rule

s op

erat

iona

l for

key

indu

stria

l se

ctor

s.

18.1

.1 E

nerg

y E

ffi ci

ency

Tar

get

Mon

itorin

g S

yste

m in

the

build

ing

sect

or e

stab

lishe

d.

18.1

.2 C

apac

ity A

sses

smen

t for

im

plem

enta

tion

of th

e E

nerg

y E

ffi ci

ency

Tar

get M

onito

ring

cond

ucte

d.

18.2

Ene

rgy

Effi

cien

cy

Reg

ulat

ions

& P

olic

y de

velo

ped.

18.1

.1 N

– O

nly

appo

intm

ent

of E

nerg

y E

ffi ci

ency

Tar

get

Mon

itorin

g ex

perts

app

oint

ed.

18.1

.2 N

– O

nly

scop

e of

the

Cap

acity

Ass

essm

ent i

n th

e fo

rm

of T

erm

s of

Ref

eren

ce (T

oR) w

as

deve

lope

d.

18.2

.1 A

– T

he S

tand

ards

for

Ene

rgy

Man

agem

ent (

SA

NS

50

010)

& M

&V

(SA

NS

500

01)

wer

e fi n

alis

ed &

gaz

ette

d.

18.2

.2 P

– E

nerg

y C

onse

rvat

ion

Sch

eme

(EC

S) r

ules

wer

e dr

afte

d bu

t stil

l pen

ding

ap

prov

al.

18.2

.3 A

– E

nerg

y E

ffi ci

ency

A

ccor

d w

ith B

usin

ess

revi

sed

& la

unch

ed in

the

form

of t

he

Ene

rgy

Effi

cien

cy L

eade

rshi

p N

etw

ork.

18.2

.4 A

– C

apac

ity b

uild

ing

cour

ses

have

bee

n co

nduc

ted

in

ener

gy m

anag

emen

t & s

yste

ms

optim

isat

ion

i.e. (

optim

isat

ion

of p

umps

, mot

ors

& p

roce

ss

heat

ing)

.

18.1

.1 T

he p

roce

ss o

f app

oint

ing

Ene

rgy

Effi

cien

cy T

arge

t M

onito

ring

expe

rts to

ok m

ore

time

than

exp

ecte

d.

18.1

.2 T

he d

elay

s w

ere

due

to

the

alig

nmen

t of t

he s

cope

of

this

Cap

acity

Ass

essm

ent w

ith

othe

r pro

ject

s (i.

e. In

dust

rial

Ene

rgy

Effi

cien

cy, e

tc.).

18.2

.1 N

o va

rianc

es to

repo

rt.

18.2

.2 T

he d

raft

docu

men

t on

the

EC

S ru

les

is re

ady

for fi

nal

in

tern

al c

onsu

ltatio

n.

18.2

.3 &

18.

2.4

No

varia

nces

to

repo

rt.

18.3

Ene

rgy

Effi

cien

cy T

ax

Ince

ntiv

e R

egul

atio

ns (E

ETI

R).

18.3

EE

TIR

pro

mul

gate

d.

18.3

P –

The

EE

TIR

was

ga

zette

d fo

r pub

lic c

omm

ents

, &

com

men

ts a

re b

eing

inte

grat

ed

into

the

fi nal

EE

TIR

for

prom

ulga

tion

by J

une

2012

.

18.3

The

ext

ent o

f the

pub

lic

com

men

ts re

sulte

d in

cer

tain

se

ctio

ns o

f the

EE

TIR

bei

ng

re-d

rafte

d.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


82

Prog

ram

me

3: E

lect

ricity

, Nuc

lear

and

Cle

an E

nerg

y

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*18

.4 N

atio

nal E

nerg

y Ef

fi cie

ncy

Stra

tegy

.

18.5

Ene

rgy

& C

limat

e C

hang

e St

rate

gy.

18.4

Nat

iona

l Ene

rgy

Effi c

ienc

y St

rate

gy (N

EES)

revi

ewed

.

18.5

App

rove

d En

ergy

& C

limat

e C

hang

e St

rate

gy.

18.4

P –

A d

raft

revi

ewed

N

EES

has

been

fi na

lised

&

wor

ksho

pped

with

sel

ecte

d st

akeh

olde

rs, &

will

be fi

nalis

ed

in M

ay 2

012.

18.5

N –

The

dev

elop

men

t of

the

Ener

gy &

Clim

ate

Cha

nge

Stra

tegy

was

not

ach

ieve

d du

e to

the

alig

nmen

t with

the

Nat

iona

l C

limat

e C

hang

e W

hite

Pap

er

Polic

y.

18.4

The

NEE

S re

view

pro

cess

w

as n

ot c

ompl

eted

with

in

the

2011

/12

fi nan

cial

yea

r du

e to

del

ays

in s

take

hold

er

cons

ulta

tion.

18.5

.1 T

he ta

rget

was

not

ac

hiev

ed p

endi

ng fi

nalis

atio

n of

the

Nat

iona

l Clim

ate

Cha

nge

Res

pons

e W

hite

Pap

er P

olic

y.

18.5

.2 F

inan

cial

con

stra

ints

als

o co

ntrib

uted

to th

is v

aria

nce.

19

. Ren

ewab

le e

nerg

y de

ploy

ed.

19.1

Impl

emen

tatio

n R

EFIT

Pr

ogra

mm

e.

19.2

Sol

ar p

ark

initi

ativ

e.

19.1

REF

IT P

rogr

amm

e la

unch

ed to

pro

cure

rene

wab

le

ener

gy IP

P.

19.2

Fea

sibi

lity

stud

y co

mpl

eted

. R

oll o

ut o

f pro

ject

s in

line

with

fe

asib

ility

repo

rt.

19.1

A –

Firs

t win

dow

of t

he R

E-IP

P Pr

ogra

mm

e cl

osed

on

4th

Nov

embe

r 201

2. 5

4 pr

opos

als

rece

ived

& e

valu

ated

. 28

pref

erre

d bi

dder

s w

ere

sele

cted

fo

r the

RE-

IPP

Prog

ram

me.

19.2

N –

Ten

der e

valu

atio

n co

mpl

eted

, con

tract

s no

t aw

arde

d.

19.1

No

varia

nces

to re

port.

19.2

.1 T

he P

rem

ier’s

Offi

ce

gran

ted

form

al a

cces

s to

the

land

to a

llow

tech

nica

l stu

dies

to

be

cond

ucte

d th

roug

h a

lette

r da

ted

09 S

epte

mbe

r 201

1.

19.2

.2 D

ue to

the

fi nan

cial

co

mm

itmen

ts fo

r thi

s st

udy,

the

team

cou

ld n

ot p

roce

ed w

ith

appo

intm

ents

unt

il a

form

al

agre

emen

t on

acce

ss to

this

land

ha

s be

en s

igne

d.20

. “G

reen

Eco

nom

y” p

roje

cts

depl

oyed

.20

. “G

reen

Eco

nom

y” p

roje

cts

for j

ob c

reat

ion

& su

stai

nabl

e de

velo

pmen

t.

20.1

Mor

e re

new

able

ene

rgy/

ener

gy e

ffi ci

ency

pro

ject

s un

derta

ken.

20.1

P –

The

re is

an

incr

ease

in

the

num

ber o

f Ene

rgy

Effi c

ienc

y &

Ren

ewab

le E

nerg

y Pr

ogra

mm

es.

The

proc

ess

of a

ppoi

ntin

g En

ergy

Effi

cien

cy T

arge

t M

onito

ring

expe

rts to

ok m

ore

time

than

exp

ecte

d. T

he d

elay

s w

ere

due

to th

e al

ignm

ent

of th

e sc

ope

of th

is C

apac

ity

Asse

ssm

ent w

ith o

ther

pro

ject

s (i.

e. In

dust

rial E

nerg

y Ef

fi cie

ncy,

et

c.).

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


83

Prog

ram

me

3: E

lect

ricity

, Nuc

lear

and

Cle

an E

nerg

y

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*20

.2 In

crea

sing

num

ber o

f job

s cr

eate

d th

roug

h th

e pr

ojec

ts.

20.2

A –

A to

tal o

f 259

jobs

hav

e be

en c

reat

ed b

y bo

th fi

scus

fu

nded

EE

DS

M P

rogr

amm

e fo

r bo

th E

skom

& m

unic

ipal

ities

, ho

wev

er, s

ocio

-eco

nom

ic

asse

ssm

ent o

f the

EE

DS

M

Pro

gram

me

still

nee

ds to

be

cond

ucte

d. E

skom

repo

rted

that

24

supp

liers

cre

ated

640

jo

bs (p

erso

ns e

mpl

oyed

) & 7

0 di

strib

utor

s cr

eate

d 14

62 jo

bs.

Tota

l: 2

361

jobs

cre

ated

.

20.2

No

varia

nces

to re

port.

21. O

pera

tiona

lise

RE

FIT

Pro

gram

me.

21. O

pera

tiona

lise

RE

FIT

Reg

ulat

ory

Fram

ewor

k.

21.1

Con

clud

ed re

gula

tory

fra

mew

ork

for R

EFI

T.

21.2

Pro

cure

men

tdo

cum

enta

tion

laun

ched

to p

rocu

reR

EFI

T P

rogr

amm

e.

21.1

.1 P

– IS

MO

– P

roce

ss o

f co

nsol

idat

ion

of p

ublic

com

men

ts

com

plet

ed &

sub

mitt

ed to

Sta

te

Law

Adv

isor

for C

ertifi

cat

ion.

21.1

.2 P

– E

lect

ricity

Reg

ulat

ion

Act

, 200

6 (E

RA

) – C

ab M

emo

appr

oved

by

Cab

inet

for p

ublic

co

mm

ents

.

21.1

.3 P

– N

atio

nal E

nerg

y R

egul

ator

Act

, 200

4 (N

ER

A) –

C

ab M

emo

appr

oved

by

Cab

inet

fo

r pub

lic c

omm

ents

.

21.2

A –

53

bids

wer

e re

ceiv

ed

by th

e cl

osin

g da

te, 0

4 N

ovem

ber 2

011.

Eva

luat

ion

was

co

mpl

eted

on

28 N

ovem

ber

& s

ucce

ssfu

l bid

ders

wer

e an

noun

ced

on 0

7 D

ecem

ber

2011

. Abo

ut 1

415

MW

wer

e co

mm

itted

. The

sec

ond

win

dow

fo

r sub

mis

sion

of b

ids

clos

ed o

n 05

Mar

ch 2

012.

The

eva

luat

ion

team

is c

urre

ntly

in th

e pr

oces

s of

eva

luat

ing

the

subm

issi

ons.

21.1

No

varia

nces

to re

port.

21.2

No

varia

nces

to re

port.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able


84

Prog

ram

me

3: E

lect

ricity

, Nuc

lear

and

Cle

an E

nerg

y

Perf

orm

ance

Indi

cato

rB

asel

ine

(Act

ual O

utpu

t) 20

10/1

1A

ctua

l Per

form

ance

aga

inst

Tar

get

Rea

son

for V

aria

nce

Targ

et (2

011/

12)

Act

ual (

2011

/12)

*22

. Ope

ratio

nalis

e so

lar p

ark.

22. F

easi

bilit

y st

udie

s &

en

ablin

g co

nditi

ons.

22.1

Fin

alis

ed fe

asib

ility

stu

dy.

22.2

Fun

ding

pla

n ap

prov

ed.

22.3

Impl

emen

tatio

n of

feas

ibili

ty s

tudy

re

com

men

datio

ns.

22.4

Sta

ndar

ds s

et fo

r pr

ocur

emen

t doc

umen

tatio

n.

22.5

. Pro

ject

dev

elop

ers

sele

cted

.

22.1

P –

Con

sulta

nts

have

be

en s

hortl

iste

d fo

r the

fe

asib

ility

stu

dy, &

pre

ferr

ed

bidd

ers

have

bee

n id

entifi

ed

for t

he E

nviro

nmen

tal

Impa

ct A

sses

smen

t (E

IA) &

ge

otec

hnic

al s

tudi

es.

22.2

A –

The

bud

get f

or th

e fe

asib

ility

stu

dy c

ompr

ises

of

fund

s fro

m th

e D

oE (2

0%) &

80

% fr

om th

e C

EF.

22.3

N

22.4

N

22.5

N

22.1

– 2

2.5

The

Nor

ther

n C

ape

Pre

mie

r’s O

ffi ce

, on

a le

tter

date

d 9

Sep

tem

ber 2

012,

gr

ante

d fo

rmal

acc

ess

to th

e la

nd to

allo

w te

chni

cal s

tudi

es

to b

e co

nduc

ted.

Due

to th

e fi n

anci

al c

omm

itmen

ts fo

r th

is s

tudy

, the

team

cou

ld n

ot

proc

eed

with

app

oint

men

ts u

ntil

a fo

rmal

agr

eem

ent o

n ac

cess

to

this

land

has

bee

n si

gned

.

* A =

Tar

get A

chie

ved;

P =

Tar

get P

artia

lly A

chie

ved;

N =

Tar

get N

ot A

chie

ved;

N/A

= N

ot A

pplic

able

Tabl

e 14


85

2.2.7 Programme 4: Associated Services

Purpose

The entities provide related services in support of the DoE’s mandate through funded and non-funded statutory

bodies and organisations.

Set out below is a summary of the activities of the SOEs reporting to the Minister of Energy during the 2011/12

fi nancial year.

Nuclear Energy Corporation of South Africa

NECSA was established in terms of the Nuclear Energy Act (1999). Its functions are to undertake and promote

research on nuclear energy, radiation sciences and technology; to process source, special, and restricted nuclear

material, including uranium enrichment; and to collaborate with other entities. The Act also delegates specifi c

responsibilities to the corporation, including: the operation of the SAFARI-1 reactor, applying radiation technology

for medical and scientifi c purposes, managing nuclear waste disposal nationally, and implementing and executing

national safeguards.

The adoption of the 2008 Nuclear Energy Policy re-confi rmed NECSA’s mandate, and designated the organisation

as the lead agency in nuclear research and development. The policy also highlighted the need for the corporation

to develop viable nuclear fuel cycle options to support the new Build Nuclear Power Programme.

The NECSA Group, through NTP Radioisotopes and with the SAFARI-1 research reactor playing a key role,

continued to be a reliable, leading supplier of radiochemicals to the global healthcare market. NTP remained

the only supplier in the world with the ability to produce Molybdenum-99 (Mo-99) on an industrial scale using a

process entirely based on low enriched uranium (LEU).

In the face of challenging global market conditions, the NTP Group achieved sales of R 857 million during

the 2011/12 fi nancial year. The SAFARI-1 reactor achieved its best ever operational availability (308.3 days

against scheduled availability of 303.5 days; 101.6%), at an average reactor power of 19.98 MW. The world

average for research reactors with a high utilisation rate is only 235 days per annum. This was the result of an

effective maintenance programme, and the implementation of a reactor ageing management and life extension

programme.

The implementation of Pelchem’s growth strategy gathered momentum with the Ketlapehla joint venture for the

manufacturing of active pharmaceutical ingredients for antiretrovirals (ARVs). The Ketlapehla Business Plan

which was submitted to the DST was approved by Cabinet.

Good progress was made with the Nuclear Technologies in Medicine and the Biosciences Initiative (NTeMBI) by

establishing project teams with members from various universities and research institutions to expand the range


86

of medical radiopharmaceuticals being produced. NECSA continued with its participation in the development of

advanced science and engineering skills through various in-house and collaborative activities.

In line with NECSA’s core research and development (R&D) mandate its innovation outputs have grown well,

with 11 new innovation disclosures recorded during the 2011/12 fi nancial year as well as 40 peer-reviewed

publications.

The NECSA Visitor Centre which was offi cially launched in February 2011 and opened its doors to the public in

May 2011 has already seen 10 000 visitors. The Centre aims to improve understanding of the true value and

benefi ts of nuclear technologies.

NECSA’s Nuclear Skills Development (NSD) Centre Programme deserves special mention as it continued to grow

and fulfi l its mandate in responding to the call made by Government through the National Skills Development

Strategy. The NSD Centre partnered with various organisations such as the DPW, the Development Bank of

South Africa, Alstom, DB Thermal and others on job creation projects. A total of 447 apprentices benefi ted from

the semester training programmes offered by the Centre.

NECSA attained American Society of Mechanical Engineers (ASME) III certifi cation in May 2011, a signifi cant

milestone which will enable equipment manufacturing according to nuclear quality standards and provide a

platform for participation in the Nuclear New-Build Localisation Programme.

It should be noted that the reducing trend of the Government grant allocated to NECSA over the past three

MTEF budget processes together with more challenging market conditions for its commercial subsidiaries, has

increased the risk that NECSA will not be able to fully meet its legislative and policy mandates.

For the foreseeable future NECSA’s fi nancial constraints are expected to deteriorate without signifi cant

intervention. This is mainly as a result of:

Ø An increase in NECSA’s salary expenditure over the last few years while the level of Government grant has

been declining in real terms, and while the level of growth from external income generation has also not kept

pace to ensure an affordable and sustainable salary bill;

Ø The impact of the unfavourable economic climate on NECSA’s income generating activities;

Ø High increases from Eskom on the electricity bill;

Ø Considerable increases of licensing fees from the NNR; and

Ø The infl ationary effect on all expenditure.


87

CEF (SOC) Ltd

Strategic overview: 2006/07 to 2012/13

The CEF is a private company, governed by the Central Energy Fund Act (1977). It researches, fi nances, develops

and exploits appropriate energy solutions across the spectrum of energy sources to meet South Africa’s future

energy needs. In terms of its governing legislation, the CEF is also mandated to manage the Equalisation Fund,

which collects levies from retail sales of petroleum products help to eliminate unnecessary fl uctuations in the

retail price of liquid fuel and to give tariff protection to the synthetic fuel industry. The CEF Group is made up of ten

operating entities/subsidiaries, namely PetroSA, South African Gas Development Company (iGas), Petroleum

Agency SA (PASA), Oil Pollution Control South Africa (OPCSA), Strategic Fuel Fund (SFF), African Exploration

Mining (AEMFC), ETA Energy, CEF Carbon, CCE Solutions (Pty) Ltd and South African Supplier Development

Agency (SASDA). Through its division EDC, CEF also has equity interests in the following companies: Baniettor

Mining (Pty) Ltd (49%), Darling Wind Power (Pty) Ltd (49%), Biotherm (Pty) Ltd (19%), Johanna Solar BV (3%),

Phillips Lighting Maseru (30&), Cradock Sugar Beet and Ener-G Johannesburg (29%).

Over the medium term, the CEF will focus on improving the security of energy supply by diversifying sources

and by building and managing strategic energy stocks and energy infrastructure, investing in and developing

renewable and alternative energy sources and investing in energy effi ciency, developing human capacity and

investing in energy research and development activities, managing and exploiting local strategic energy and

related resources, and mitigating against environmental impacts and maximising sustainable development.

CEF and its subsidiaries operate in the energy sector, and in particular in fossil fuels, in renewable and energy

effi ciency and in cross-cutting activities. It is a much diversifi ed business with 11 subsidiaries operating in a

number of energy spheres. The largest subsidiaries are PetroSA (which operates the Gas to Liquid (GTL) facility

at Mossel Bay) and Strategic Fuel Fund (SFF) (which manages strategic crude stocks and infrastructure).

Highlights of the 2011/12 fi nancial year

The appointment of a new Group Chairman and a reinforcement of the Board and other governance structures

have been welcomed by the Group. CEF was responsible for the successful incubation of two signifi cant entities:

Ø SANEDI which is now a separately listed Schedule 3 Entity; and

Ø African Exploration which received Cabinet approval to be hived off as a standalone entity. CEF invested R

241million to date in the start-up and incubation of this entity.

The merging of PetroSA and iGas has now been operationalised, with a fi nal decision on a value recovery

mechanism to be made shortly by the CEF Board. This fulfi ls a Ministerial directive. The NMPP diesel line fi ll was

completed late in December 2011. 155 million litres of product was procured by PetroSA in line with the Ministerial

directive. The successful execution of this complex procurement project has given more depth to the PetroSA

Trading Division. SFF is fi nalising the payment and the process of taking title of the product.


88

The Solar Park Project is on course though slightly behind schedule. The CEF Group has been on a restructuring

and rationalisation drive which has resulted in a reduction in the number of subsidiaries, thus enhancing the

governance of the Group.

Challenges

The medium-term fi nancial sustainability of the CEF Group is the most pressing challenge. The Africa Exploration

(AE) and iGas subsidiary transfers did not yield immediate cash consideration for the holding company. CEF still

hopes to recoup the value of iGas in the event that PetroSA is hived off from the Group.

Implementation of the Solar Park Project has been slowed by the lack of security of access and tenure on the

identifi ed land. A spike in staff departures was experienced in the second half of the fi nancial year. The Board and

Management are working vigorously to fi ll the vacancies thus caused.

The renewable energy activities of the CEF Group have not been successful to date. The group has, however,

catalysed the industry. Developmental projects have continued and will continue to address energy poverty

challenges.

Despite the funding challenge, CEF continues to investigate new clean energy opportunities including the

manufacture of clean energy components (e.g. solar water geysers). The rollout of high-pressure SWH has not

proceeded smoothly with a number of signifi cant obstacles being identifi ed. The cost of units and fi nancing is a

particular challenge in this particular market segment. Management is grappling with fi nding viable opportunities

in the renewable energy space. Some smaller subsidiaries (e.g. SASDA) have developed business lines that

are outside of CEF’s mandate. A sensible and sensitive solution will have to be found (e.g. transfer to a more

appropriate owner within Government).

PetroSA has experienced feedstock fl ow constraints that have led to reduced output. Efforts are underway to

increase local gas production through the development of the FO gas fi eld.

National Energy Regulator of South Africa

NERSA’s mandate is anchored on four primary Acts, namely the National Energy Regulator Act, 2004 (Act No.

40 of 2004); the Electricity Regulation Act, 2006 (Act No. 4 of 2006); the Gas Act, 2001 (Act No. 48 of 2001); and

the Petroleum Pipelines Act, 2003 (Act No. 60 of 2003).

NERSA derives its revenues by, amongst other things, imposing prescribed levies on the regulated industries

following a prescribed transparent procedure. The imposition of such levies are governed by the Gas Regulator

Levies Act, 2002 (Act No. 75 of 2002); the Petroleum Pipelines Levies Act, 2004 (Act No. 28 of 2004); and Section

5B of the Electricity Act, 1987 (Act No. 41 of 1987). In terms of the National Energy Regulator Act, 2004 (Act No.

40 of 2004), NERSA is funded through money appropriated by Parliament; levies imposed by or under separate

legislation.


89


Electricity Industry Regulation:Ø Tariffs

The Energy Regulator approved 177 municipal tariffs and reviewed nine tariff applications for 2011/12. They also

approved a revised tariff increase for Eskom for the period 1 April 2012 to 31 March 2013 of 16% instead of the

originally approved tariff of 25.9% on 9 March 2012, and concurred with the determination made by the Minister

of Energy in line with Section 34 of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) on the procurement

process for renewable energy.

Ø Generation

The Energy Regulator conducted national hearings on the licence applications by the 28 “DoE Renewable Energy

IPP Programme” preferred bidders, and also granted fi ve generation licences during the 2011/12 fi nancial year.

Ø Distribution

The mediation between the Chiawelo community and Eskom was successfully completed after the adoption of

the report Testing of Disputed Electricity Prepaid Meters in Chiawelo, Soweto, and the Energy Regulator granted

one distribution licence and revoked one distribution licence.

Piped-Gas Industry Regulation:Ø Pricing and tariffs

The Energy Regulator approved the Methodology to Approve Maximum Prices For Piped-Gas, and held three

stakeholder workshops to inform stakeholders on the Methodology to Approve Maximum Prices for Piped-Gas.

Ø Licensing

The Regulator granted fi ve licences for the construction of gas transmission facilities and two licences for the

construction of gas distribution facilities, and also granted two operation licences and one trading licence.

Ø Other

NERSA organised and facilitated a gas dialogue on hurdles facing investment in gas infrastructure; and made a

determination that there is inadequate competition in the piped-gas industry. This determination paves the way

for the implementation of the Maximum Pricing Methodology.

Petroleum Pipelines Industry Regulation:Ø Tariffs

The Energy Regulator approved an increase of 31.58% in allowable revenue for Transnet for the period 2012/13,

and also approved storage facility tariffs for nine licensees.

Ø Licensing

The Regulator approved three construction licences and one operation licence and revoked 10 storage licences

during the reporting period.


90

Challenges:

Some of the key challenges facing the regulated industries during the fi nancial year were as follows:

Electricity Industry Regulation:

Ø Security of supply;

Ø Non-compliance issues especially with municipal distributors – maintenance backlog and not meeting

reporting requirements; and

Ø Implementation of IBTs.

Piped-Gas Industry Regulation:

Ø Regulation of certain piped-gas activities not specifi cally catered for in the Gas Act, 2001 (Act No. 48 of 2001)

(compressed natural gas);

Ø Monitoring and enforcing Sasol’s compliance with the regulatory agreement (enforcement of the market value

pricing);

Ø Approve maximum prices in absence of clear market value of gas; and

Ø Private sector investment and markets for gas.

Petroleum Pipelines Industry Regulation:

Ø Security of supply of petroleum to the inland areas;

Ø SOE (Transnet) funding challenges and the setting of its tariffs; and

Ø Promoting access to petroleum storage facilities by historically disadvantaged South African wholesalers.

Ø National Nuclear Regulator

The NNR was established in terms of the National Nuclear Regulator Act, 1999 (Act No. 47 of 1999), which came

into effect in February 2000. The Act mandates the regulator to regulate diverse activities in the nuclear sector,

including the operation of nuclear power plants, power reactors, research reactors, nuclear fuel fabrication,

nuclear technology applications, and the mining and processing of uranium and other radioactive ores.

The mandate of the regulator encompasses the provision of protection to persons, property and the environment

against nuclear damage by establishing safety standards and regulatory practices, exercising regulatory oversight

and control over any action that may cause nuclear damage, and over nuclear installations including vessels

propelled by nuclear power or that contain radioactive material. The regulator issues nuclear authorisations and

enforces compliance. It has to ensure that provisions for nuclear emergency planning are in place, and ensure

compliance with the IAEA’s regulations for safe transport. The regulator is also mandated to advise the Minister

of Energy on all nuclear-related matters.


91


The fi rst quarter of 2011/12 saw heightened local and international concerns as a result of the Fukushima nuclear

accident in Japan. This led to much needed introspection from the nuclear international fraternity regarding the

adequacy of emergency preparedness measures in the event that a nuclear accident occurs.

To this end, the NNR directed Eskom and NECSA to conduct reassessments of their respective reactors (of

Koeberg and SAFARI-1) in order to provide assurance that the design parameters, operations and beyond design

basis of the plants are suffi ciently robust to withstand all types of major external events. In the 4th quarter of

2011/12, the NNR focused on the review of the reassessment reports provided by NECSA and Koeberg on their

safety considerations following the Fukushima nuclear accident in Japan.

The NNR has completed its review of these reports, with the following conclusions:

Ø The assessments conducted conform to the NNR directive and are in accordance with best international

practice.

Ø The nuclear installations have been adequately designed, and are maintained and operated to withstand

all the external events that were considered in the original design basis.

Ø Nothing has been found to warrant curtailing their operation or to question the design margins of these

facilities.

Ø The safety reassessments identifi ed a number of potential improvements to further reduce risk beyond the

design requirements. Eskom and NECSA will be required to implement such improvements.

Ø The NNR has identifi ed fi ve areas for improvement of the regulatory standards and regulatory practices.

These areas for improvement will be addressed as part of the current review of the Regulatory Framework

Project.

The NNR is satisfi ed that the said holders have robust systems in place to provide acceptable assurance of

nuclear safety in case of an accident, such as the one that occurred in Fukushima. A few recommendations for

improvements have been noted and will be implemented by the holders under the oversight of the NNR.


92

Challenges for the fi nancial year

During 2011/12 special case mines have been a continuing source of concern with regard to the possible exposure

of workers to radiation levels above those prescribed in the regulatory standards. The NNR has continued to

monitor these closely and in certain relevant instances issued directives in terms of which holders were required

to institute engineering controls and related interventions in order to mitigate exposure to workers.

The continuing trend of diminishing state allocation coupled with delays in the approval and gazetting of

authorisation fees has made it fi nancially challenging for the NNR to assertively implement plans. This is in

particular reference to programmatic plans such as positioning regulatory requirements for the New Nuclear

Build and other expansion programmes where the NNR will be confronted with the need to authorise new reactor

technologies for power generation as well as isotope production. From a regulatory perspective capacitation is

key in rendering effective monitoring and regulation of new programmes as well as existing ones.

Overlapping mandates as well as inadequacy of funding and capacity in the area of derelict mines regulation,

have made it diffi cult for NNR to take robust action against such activities as they continue to pose a threat to

communities and the general public. The NNR’s view is that such radiological hazards presented by derelict and

abandoned mines require a proactive and integrated strategy and framework born out of cooperation between

relevant government departments.

During 2011/12 the relevant incident to cite relates to the Tudor Shaft Informal Settlement which was surveyed,

and based on the surveillance results the NNR was concerned about the exposure of community dwellers to

hazardous levels of radiation. As a result, the Mogale City Municipality was informed that this was not ideal for

habitation and that preventative safety precautions should be considered. This resulted in the said community

being relocated to a nearby settlement which has very low to no exposure to radiation hazards, as these fall

below the regulatory limits. However, a comprehensive strategy is required to address many other settlements

that are located on the tailings of historical mining activities. The NNR continues to follow up on this matter with

all affected communities and local municipalities.

Section 3Annual Financial Statements for the National Department of Energy Vote 29for the year ended 31 March 2012


94

REPORT OF THE AUDIT COMMITTEE OF THE DEPARTMENT OF ENERGY FOR THE FINANCIAL YEAR ENDED 31 MARCH 2012.

Overview and Introduction

We are pleased to present our report for the fi nancial year ended 31 March 2012. The mandate of the

Audit Committee requires it to adhere to high-quality standards of accountability to ensure the quality of

the fi nancial reporting process, internal control systems and processes, risk management and to help

maintain a high degree of integrity in both the external and internal audit processes.

Audit Committee Members and AttendanceThe Audit Committee consists of three (3) independent members listed hereunder. During the year seven

(7) meetings were held and attendance was as follows:

Name of Member Number of Meetings Held Number of Meetings Attended

Mr YN Gordhan CA (SA) (Chairperson) 7 6

Mr T Mofokeng CA (SA) & CIA 7 7

Mr N Swana CA (SA) 7 6

Audit Committee Responsibility

The Committee reports that it has complied with its responsibilities arising from Sections 38 (1)(a) and 77

of the PFMA and Treasury Regulation 3.1.13. The Audit Committee also reports that it has performed its

responsibilities, conducted its affairs in accordance with its Audit Committee Charter and discharged all

its responsibilities thereto.

We report that we have adopted appropriate formal terms of reference in our Audit Committee Charter in

accordance with the requirements of Section 77 of the Public Finance Management Act, No. 1 of 1999

(“PFMA”) and Treasury Regulations 27.1.7 and 27.1.10 (b) and (c). We further report that we:

Ø Conducted our affairs in compliance with this approved Audit Committee Charter;

Ø Monitored compliance to the PFMA;

Ø Reported defi ciencies based on the internal and external auditors’ reports and made appropriate

recommendations to the Accounting Offi cer; and

Ø Monitored the audit coverage by both the internal and external auditors.

National Department of Energy – Vote 29Report of the Audit Committee

for the year ended 31 March 2012


95

Risk Management

The Department has established a process for the management and monitoring of the risk management

process. This initiative was enhanced with the appointment of a Chief Risk Offi cer in the current year. The

committee reviewed the strategic risk register during the current year and recommended improvements

to some of the processes. The maturity of the enterprise risk management process was found to be at an

evolutionary stage and requires further commitment and improvement.

The Effectiveness of Internal Control

The Department has a system of internal control to provide cost-effective assurance that the Department’s

goals will be economically, effectively and effi ciently achieved. In line with the PFMA, the International

Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors,

Internal Audit provided the Audit Committee and Management with quarterly internal audit reports in

terms of its approved annual and three-year rolling Internal Audit Plan. That was achieved by means of

the risk management process review, the governance review and the identifi cation of corrective actions

and proposed enhancements.

From the various reports of the in-house and co-sourced Internal Auditors and of the Auditor-General, it

was noted that there were continued defi ciencies in the internal control system. In particular, the internal

audit fi ndings fl owing from the 2011/2012 annual internal audit plan, internal controls in the main were

found to be partially adequate, partially effective and partially effi cient. Management has undertaken to

address the defi ciencies reported and to improve the internal control environment.

Internal Audit

The Audit Committee reviewed the internal audit quarterly reports to ensure that internal audit activities

were conducted in terms of the approved annual and three-year rolling plan. The Audit Committee, as in

the previous year, again registered its concerns with the Accounting Offi cer and Management regarding

the adequacy of resources within the Internal Audit function. Although some enhancements have been

made, there is a necessity for an evaluation in accordance with the IIA Standards of the internal audit

function.

In July 2012 the Audit Committee had a meeting with the Minister of Energy and, inter alia, raised this

internal audit capacity constraint. An assurance was given to address this problem.




96

Quality of Management Reports

During the period under review, quarterly management reports were presented to the Audit Committee

during its meetings. The Audit Committee urged management to improve the content and the quality

of the reports. Management has undertaken to improve the timely presentation and the content of the

required reports.

Evaluation of the audited Annual Financial Statements

The Audit Committee has:

Ø Reviewed and discussed the Auditor-General’s fi nal Management Report with the Accounting Offi cer

and Management. An undertaking has been given to address all the reported items;

Ø Reviewed and discussed with the Accounting Offi cer and Management the 31 March 2012 audited

annual fi nancial statements to be included in the 31 March 2012 Annual Report;

Ø Reviewed and discussed the appropriateness of the accounting policies and practices;

Ø Reviewed and discussed the unqualifi ed audit opinion. The Audit Committee takes note of the other

reported items included in the Auditor-General’s Report which the Accounting Offi cer and Management

will address in the ensuing fi nancial year.

The Audit Committee has discussed, concurs with and accepts the conclusions of the Auditor-General on

the annual fi nancial statements and recommends these to the Accounting Offi cer.

Appreciation

The Audit Committee expresses its sincere appreciation to the Accounting Offi cer, senior management

team and the Auditor-General of South Africa for their contributions.

YN Gordhan (CA) (SA)Chairman of the Audit Committee22 August 2012




97

National Department of Energy – Vote 29Report of the Accounting Offi cer


REPORT OF THE ACCOUNTING OFFICER TO THE EXECUTIVE AUTHORITY AND PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA

1. Services Rendered by the Department of Energy

1.1 Services

The mission of the DoE is to regulate and transform the energy sector for the provision of secure, sustainable and affordable energy. In order to achieve the above mission, the DoE is split into three key programmes, namely: Administration; Hydrocarbons and Energy Planning; and Electricity, Nuclear and Clean Energy. These three key programmes are responsible for, amongst other things:Ø promoting the sustainable use of energy resources through integrated energy planning and the

appropriate promotion, including policy and regulation development of petroleum products, coal, gas, renewable energy and energy effi ciency including exercising oversight over state-owned entities (SOEs) – Hydrocarbons and Energy Planning;

Ø ensuring the development, monitoring enhancement and implementation of policies governing the electricity, nuclear, renewable energy and energy-effi ciency sectors, and to support the achievement of universal access to electricity, including exercising oversight over SOEs – Electricity, Nuclear and Clean Energy; and

Ø The provision of a support service to the DoE.

In addition to the electrifi cation and energy-effi ciency services, the DoE also hosts the Designated National

Authority (DNA), where a repository of Clean Development Mechanism (CDM) initiatives is managed.

Project developers register their projects with the DNA for consideration in terms of the United Nations

Framework Convention on Climate Change (UNFCCC).

1.2 Tariff policy

Petroleum products licensing feesThe following fees are charged in terms of the Petroleum Products Amendment, 2003 (Act No. 58 of 2003)

Site licence R 1 000Wholesale licence R 1 000Retail licence R 500Annual retail licence R 500Temporary retail licence R 500Duplicate licence R 500Site licence transfer R 500Amendment licence R 500Manufacturing license R 10 000Annual manufacturing licence R 5 000


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1.3 Free Basic Services Policy

The Free Basic Electricity Policy seeks to direct local government to provide free basic electricity to

indigent households as one of the instruments for poverty alleviation. The policy continues to experience

implementation challenges. These are currently being addressed by the National Treasury (NT), the

Department of Co-operative Governance and Traditional Affairs (COGTA) and municipalities.

1.4 Security of supply and universal access to sustainable energy

Government, through the DoE, has the responsibility of ensuring security of energy supply and improving

access to sustainable energy to all citizens of our country.

The DoE has achieved this through, amongst other things, determining the country’s strategic fuel stock

requirements, ensuring that refi neries are able to produce adequate supplies, ensuring the timely and

cost-effective delivery of the fi nished product to consumers as well as introducing and implementing

appropriate policies that cover the full liquid fuels value chain. The negative developments in the liquid

fuels sector during the last fi nancial year have forced the DoE to review its strategy and diversify sources

of liquid fuels.

The DoE also extended the 20-Year Liquid Fuels Infrastructure Road Map to incorporate the Refi neries

Audit Project which is aimed at determining the state and soundness of South African refi neries as a

result of the frequent unplanned shutdowns and supply disruptions. The Refi neries Audit Project will

also assist in determining the extent of the reconfi gurations of the refi neries for the new cleaner fuel

specifi cation and standard.

The DoE made the last but one transfer payment to Transnet for the New Multi-Product Pipeline (NMPP)

of R 1.5 billion for the security of supply portion. The 24-inch trunk line of the NMPP was commissioned

in January 2012. With the concurrence of the Minister of Finance, the Strategic Fuel Fund was utilised

to pay for the diesel used to fi ll the line. The procurement itself was done through PetroSA. The pipeline

has increased capacity to transport fuel to the inland market and the jet fuel stock levels in OR Tambo

International Airport (ORTIA).

In improving access to electricity, the Integrated National Electrifi cation Programme (INEP) continues to

be the backbone of our Electricity Delivery Programme to communities who are under-served in terms of

grid and off-grid connection. INEP was allocated a budget of R 3.2 billion this year to focus primarily on

the electricifation of rural areas and newly established formal and informal urban settlements. All of the

budget allocation was disbursed to Eskom and the municipalities as the implementing agents.


99

During the year under review, the DoE continued to engage with both local and international partners on

the subject of security of energy supply and universal access. These discussions were in ensuring that

Africa will, in the near future, be able to energise economic, social and environmental developments using

a diversity of clean energy sources.

The DoE also hosted an Africa Energy Ministers’ Conference in September 2011, which was attended by

46 International Energy Ministers and came out with a Johannesburg Declaration which further addressed

issues of energy in Africa.

1.5 Job creation and poverty alleviation

The energy sector is a catalyst to job creation by other sectors. In this regard we have facilitated

about 5 000 direct jobs during the construction of service stations, plus a further 1 260 permanent

operational jobs. Within INEP, approximately 5 000 jobs were created last year. Going forward, more

job opportunities are expected with the implementation of the Renewable Energy Independent Power

Producer Programme.

The DoE continues to contribute towards energy poverty alleviation and ensure access to affordable

energy sources through the establishment of Integrated Energy Centres (IECs) in rural areas. These

IECs are established in partnership with the oil industry and operated by the communities themselves.

On 12 January 2012, the Minister launched the QwaQwa Maluti-a-Phofung IEC. The DoE expects to

operationalise three additional IECs in this fi nancial year.

The concept of Inclining Block Tariff (IBT) means that the less electricity you use, the less you pay. This

decision was taken in order to provide for cross-subsidies for low income domestic customers, and this is

applicable to both Eskom and municipal customers.

The implementation of the IBT for customers with prepaid meters in municipalities is lagging behind the

Eskom IBT roll-out programme. This is mainly due to two reasons. Firstly, municipalities are struggling

technically to change the meters. Secondly, each municipality has to change its tariff structure to allow

for changes in revenue and these adjustments are made in more than one fi nancial year. We are working

with affected municipalities and Eskom to improve this situation.




100



1.6 Important policy decisions and strategic issues facing the Department of Energy

Integrated Resource Plan 2010 – 2030

The Integrated Resource Plan (IRP) was promulgated in May 2011 and outlines the required new

generation capacity for the period up to 2030. The IRP includes the different technologies required to

ensure that power generation is cost-effective, minimises water usage and mitigates adverse climate

change. The funding of the projects under the IRP will be premised largely on the extent of tariff increases

that are allowed by the National Energy Regulator of South Africa (NERSA).

The implementation of the IRP started in earnest toward the end of the fi nancial year, with the fl agship

programme entitled Renewable Energy Independent Power Producer (IPP) Bidding Programme. (Details

of other programmes under the IRP are covered in detail later in the Annual Report.)

A Request for Proposals (RFP) published in August 2011 provides for the procurement of 3 725 MW of

renewable energy up to 2016. In addition, a Request for Information (RFI) was issued to assess the extent

of independent power projects that could be introduced side by side with Eskom to improve our energy

security outlook. The procurement of alternative sources of energy from the private sector is motivated by

the urgent need for new generation capacity to alleviate the current energy constraints.

Integrated Energy Plan

The development of the Integrated Energy Plan (IEP) continues, and by the end of the fi nancial year,

broad public stakeholder consultation had been undertaken. In developing this plan, a holistic approach

is adopted to plan for our future energy needs as we seek to ensure that environmental issues, climate

change, social development and economic growth are considered in a balanced manner.

In March this year, the DoE hosted an Energy Planning Colloquium which was attended by subject matter

experts and interest groups. While the DoE obtained a wealth of constructive viewpoints and comments

on its processes and approach, there was a call for more stakeholder consultations to provide input into

the plan. The DoE will continue to engage with various experts during the development of the IEP.


101



1.7 Signifi cant events that have taken place during the year

The fl agship programme under the IRP is the Renewable Energy IPP Bidding Programme for the provision

of 3 725 MW of capacity from independent power producers. The process has lived up to expectations

by attracting foreign direct investment into South Africa worth around R 100 billion over a period of 12

months. We are confi dent that this will boost sector employment growth.

Together with our social partners, we launched the Energy Effi ciency Campaign during the 17th

Conference of the Parties (COP 17).

In November 2011, Cabinet approved the establishment of the National Nuclear Energy Executive

Coordination Committee (NNEECC), chaired by Deputy President Kgalema Motlanthe, to oversee the

roll-out of the Nuclear Build Programme, and the provision for upscaling nuclear capacity by 9.6 GW in

the period up to 2030.

In March this year, as part of celebrating March 2012 as energy month, INEP hosted an Electricity Indaba

in Durban, where the DoE identifi ed shortcomings of the current electrifi cation programme which will be

addressed in the process that is currently underway to develop a new implementation strategy.

INEP has managed to transfer all Division of Revenue Act (DoRA) funds effectively during the fi nancial

year under review for grid and non-grid projects to the various entities.

Against the backdrop of the United Nations declaration of 2012 as the International Year of “Sustainable

Energy Access”, INEP was invited to partake in a debate organised by the World Bank in Washington DC

on how to ensure that this can be achieved.

A total of about 107 000 new grid connections were completed by end of March 2012, which is a much

higher percentage than the average of the previous number of years. The total number of grid and non-

grid connections for the 2011/12 fi nancial year will be available after 30 June 2012 as the municipalities’

year end is June.

In line with the high public interest in energy issues, the DoE developed an annual events calendar to

encompass the need for high levels of public engagement with all interested parties. Thus, during the past

fi nancial year, the Ministry of Energy hosted 15 (75%) Public Participation Programme (PPP) interactions.


102



Aimed at promoting knowledge of energy issues among grass roots communities, the PPPs primarily took

place in areas identifi ed among those with the highest levels of energy poverty. This included KwaZulu-

Natal, Eastern Cape, Limpopo and the Northern Cape.

In addition, the Ministry of Energy engaged a wider cross section of local and international energy

stakeholders through the hosting and participation at 37 events attended by myself, the Deputy Minister,

and senior offi cials. Amongst these was the Independent Power Producers (IPP) Conference attended

by more than 1 000 local and international parties interested in the Request for Bids for the 3 725 MW

Renewable Energy IPP Bidding Programme. More recently, the DoE hosted major conferences attracting

local and international players to discuss the challenges and potential solutions for the IEP, as well

as the development of the IEP. Thus, in recognition of the spirit of the Cabinet decision of 24 March

2010 to promote political principals’ interaction with all sectors of the public, the DoE has maintained a

diverse public engagement programme across society in order to promote an enhanced understanding,

appreciation and ownership of the IEP.

2. General Review of the State of Financial Affairs

The year under review, 2011/12, is the second year that the DoE has been operating as a stand-alone

department. There has not been any signifi cant increase in the DoE’s budget allocation between the

years 2010/11 and 2011/12. Of the 12% increase between the two years, 10.6% went to transfers and

subsidies and only 1.4% went to the DoE’s operational budget. Needless to say, the challenges of the

inadequate baseline allocation for the DoE resulting from the split of the Department of Minerals and

Energy (DME) have yet to be addressed.

From this year’s total budget allocation of R 6.2 billion, 95% went to transfers:

Ø INEP received R 3.2 billion;

Ø Transnet’s NMPP received R 1.5 billion;

Ø Nuclear Energy Corporation of South Africa (NECSA) received R 586 million;

Ø The Energy Effi ciency Demand Side Management (EEDSM) Project was allocated R 398 million; and

Ø The balance went to transfers to SOEs and other smaller programmes.

Only 5% of the total budget was allocated for the DoE’s operational needs, amounting to R 305 million.

The DoE spent 99.6% of its allocated 2011/12 budget.


103



2.1 Major projects undertaken or completed during the year

Ø The DoE, through INEP, has signed an agreement with Development Bank of Southern Africa (DBSA)

for the next three years (starting 2012/13) to counter fund large electrifi cation projects to ensure that

connection can be completed quicker.

Ø In dealing with the regulatory uncertainty in the liquid fuels sector, the DoE initiated a programme to

develop a Regulatory Accounts System (RAS), which establishes a uniform and transparent set of

regulatory accounts where costs are allocated according to predetermined methods. The RAS margin

models were completed and approved in October 2011 and implemented into the fuel price structures

in December 2011.

2.2 Spending trends

The original appropriation received by the DoE on 1 April 2011 amounted to R 6.09 billion. The outcome of

the adjustments budget process resulted in an additional allocation of R 111 million to the appropriation.

This amount increased the total 2011/12 budget allocation of the DoE to R 6.2 billion.

The increase was appropriated to cover approved rollover funds of R 88.22 million relating to the following:

Approved Rollover 2011/12 R’000

CEF – Upington Solar Park Feasibility Study 18 191

CEF – Vaal Dam Hydro Project 2 000

Installation of solar water heaters by non-grid service providers

57 000

Auditing the compliance of oil companies to the South African Petroleum & Liquid Fuels Charter & Empowerment Framework

1 063

International Atomic Energy Agency membership fees 8 462

Socio-Economic Impact Study 1 500

Total 88 216

An additional amount of R 1.599 million was also appropriated to provide for higher personnel remuneration

increases than was budgeted for in the 2011/12 budget allocation. An additional amount of R 21.192

million was also appropriated additionally as a transfer payment to the National Nuclear Regulator (NNR).

This amount was to bridge the funding gap created by the sudden and unexpected closure of the Pebble

Bed Modular Reactor Company (PBMR).


104



The total budget of R 6.2 billion was appropriated as follows:

Ø The major portion of 94% was utilised for transfers to municipalities, SOEs and other organisations.

Ø Approximately 5.5% was utilised for operational costs for compensation of employees (2.98%), and

goods and services (2.52%).

Ø The balance of the funding was earmarked for capital assets.

Ø The total spending for the year amounted to R 6.174 billion (99.57%) which resulted in an unspent

budget total of R 26.65 million or 0.43%. A rollover request has been submitted for this amount.

The spending trend during the fi rst quarter of the fi nancial year was slow from April 2011 to June 2011.

However, the spending pattern increased from July 2011 onwards with major increases in expenditure

during July 2011, August 2011, November 2011 and March 2012. The high spending during these months

is attributable to large payments that were disbursed to Eskom for both INEP and the EEDSM Programme.

The average spending per month was R 514.5 million (inclusive of transfers to public entities).

The following table shows the budget overview per programme for the fi nancial year ended 31 March

2012:

Budget Overview 2011/12

Programmes Budget Actual Spending

31/03/2012

Actual Percentage of Budget Spent

Available

R’000 R’000 % R’000

1. Administration 204 561 196 259 95.9 8 302

2. Energy Policy & Planning 1 545 785 1 545 690 100.0 95

3. Energy Regulation 541 572 529 268 97.7 12 304

4. INEP 3 265 580 3 264 540 100.0 1 040

5. Nuclear Energy & Regulation 643 411 638 505 99.2 4 906

Total 6 200 909 6 174 262 99.6 26 647


105



Programme 1: Administration

The under-spending relates mainly to the timing of payments for international membership fees and

procurement of computer software and hardware.

During the 2011/12 fi nancial year, the Director-General (DG) granted approval for the following:

Ø An amount of R 2.191 million to The African Petroleum Producers’ Association (APPA) for the 2012

international membership fees. The amount was paid on 29 March 2012. However, the disbursement

only took place on 3 April 2012 due to process delays for foreign currency payments.

Ø Acquisition of audit software packages for an amount of R 670 799.15. Due to delays associated with

procurement processes, the software packages were not acquired before the closure of the 2011/12

fi nancial year.

Ø The acquisition, installation and confi guration of data and voice network cabling at the DoE’s new

offi ces. A service provider was appointed for this purpose to the value of R 4.649 million and an

additional tender was awarded for an amount of R 668 606.71 for the procurement of computer

servers. Due to the delays in the relocation of the DoE to its new accommodation, the services were

not delivered at the close of the fi nancial year.

Programme 2: Energy Policy and Planning

The under-spending of 0.01% (R 95 000.00) in Energy Policy and Planning is attributable to the late

receipt of invoices and subsequent late payments.

Programme 3: Energy Regulation

The under-spending of 2.3% (R 12.3 million) in Energy Regulation is attributable to the late receipt of

invoices, subsequent delay in payments and time frames required for the re-classifi cation of funds.

During the 2011/12 fi nancial year, a fi nancial contribution to the International Renewable Energy Agency

(IRENA) for 2012 international membership fees to the value of R 666 809.00 was approved. Although

this amount was paid on 29 March 2012, the disbursement only took place on 3 April 2012 due to process

delays for foreign currency payments.

Based on a decision taken by Cabinet in December 2010 on Electricity Distribution Industry Holdings

(EDIH), a state-owned company that ceased operations as at 31 March 2011, some of the functions

relating to the restructuring of the electricity distribution industry, which were previously performed by

EDIH, have reverted to the DoE with effect from 1 April 2011. During the 2011/12 fi nancial year, an amount


106



of R 11.758 million was appropriated within Energy Regulation for the winding down process of EDIH.

Based on the strong fi nancial position of EDIH after its closure, adequate funding was available within

EDIH to pay its outstanding debts including possible legal claims made against it, hence this amount

remained in the DoE as at 31 March 2012. No funding is currently available within DoE to undertake

the initial work for the urgent analysis that has to be conducted to implement Approach to Distribution

Assessment Management (ADAM). Hence the DoE requested the R 11.758 million be reclassifi ed and

rolled over to the 2012/13 fi nancial year.

Programme 4: Integrated National Electrifi cation Programme

The under-spending of 0.03% (R 1.04 million) in INEP is entirely attributable to an under-spending of

R 1 million relating to the 2010 Soccer World Cup (SWC) Local Organising Committee (LOC). The fi nal

invoice and subsequent payment was only R 281 million against a budget of R 282 million, resulting in an

under-spending of R1 million.

Programme 5: Nuclear Energy and Regulation Programme

The under-spending of 0.8% (R 4.9 million) in the Nuclear Energy and Regulation Programme is due to

the late receipt of invoices.

During the 2011/12 fi nancial year, approval to contribute to the International Atomic Energy Agency

(IAEA) for International membership fees, an amount of R 5.05 million was granted. Although the amount

was paid on 29 March 2012, the disbursement only took place on 3 April 2012 due to process delays for

foreign currency payments.


107



Major Spending Areas

The following were the major cost drivers for the fi nancial year under review:

Major Spending Areas 2011/12

Economic Classifi cation Budget Actual Spending 31/03/2012

Actual Percentage of Budget Spent

Available

R’000 R’000 % R’000

Compensation of employees 184 869 184 837 100.0 32

Goods & services 164 877 156 337 94.8 8 540

Transfers & subsidies 5 841 947 5 829 000 99.8 12 947

Payments capital assets 9 155 4,029 44.0 5 126

Payments fi nancial assets 61 59 100.0 2

Total 6 200 909 6 174 262 99.6 26 647

The adjusted allocation for goods and services was a total of R 126.4 million. This was adjusted to

R 164.9 million with the inclusion of funding reclassifi ed from the Renewable Energy Finance and Subsidy

Offi ce (REFSO).

Major Cost Drivers

Major spending items under the category goods and services were:

Major Cost Drivers – Goods & ServicesExpenditure Item: Goods & Services Actual Spending 31/03/2012

R’000Travel & subsistence 40 121

Cons/Prof: Business & advisory services 35 653

Lease payments 25 830

Operating payments 13 463

Venues & facilities 8 210

Computer services 6 598

Communication 5 826

Audit cost: external 4 104

Inventory 3 019

Advertising 2 703

Training & development 2 522

Administrative fees 2 331

Other 5 957

Total 156 337


108



2.3 Virements

In the current fi nancial year, the DoE operated within severe fi nancial constraints due to limited allocation

of fi nancial resources through the annual Medium Term Expenditure Framework (MTEF) process. The

situation was exacerbated by unfunded commitments, and subsequent payments for accommodation

leases, international membership fees and costs associated with PPPs.

These fi nancial constraints consequently resulted in a submission to the NT to obtain approval in

accordance with Section 43 (4) of the PFMA for the re-classifi cation of R 57.32 million for the 2011/12

fi nancial year, originally appropriated as transfers and subsidies under Programme 3: Energy Regulation

for the Renewable Energy Finance Subsidy Offi ce and the Working for Energy Project. This was done

to provide funding for the operational activities of the DoE under Programme 1: Administration (R 28.3

million), Programme 2: Energy Policy and Planning (R 6 million), Programme 3: Energy Regulation (R

19.02 million) and Programme 5: Nuclear Energy and Regulation (R 4 million). However, the NT granted

approval to shift an amount of only R 41.32 million appropriated as transfers and subsidies for REFSO,

on condition that a provision is made for the offi ce accommodation lease cost of R 21.8 million and the

IPP unit set-up costs, estimated at R 4 million.

The DG subsequently granted approval to redistribute the remaining R 15.52 million, being the balance

from REFSO’s reclassifi ed funds, as follows:

Programme Amount

R’000

Programme 1: Administration 11 245

International coordination 800

Special programmes & outreach project 610

Minister’s offi ce 2 528

Communication Chief Directorate 4 567

Internal audit 2 740

Programme 3: Energy Regulation 4 275

Hydrocarbons operations 2 175

Clean Energy – COP 17 2 100

Total Reallocated 15 520


109



The Accounting Offi cer granted an approval for the fi nal virement on 24 April 2012 to utilise savings from

programmes towards the defrayment of excess expenditure within these areas in the vote and to align

budget allocations with actual expenditure for the 2011/12 fi nancial year as follows:

Appropriation per Programme – 31 March 2012

2011/12

Programmes Adjusted Appropriation

Shifting of Funds (after

AENE)

Current Budget

Virement (after

AENE)

Final Appropriation

Percentage of Virement to Adjusted

Appropriation

R’000 R’000 R’000 R’000 R’000 %

1 Administration 176 340 33 045 209,385 (4 824) 204 561 (2.74)

2 Energy Policy & Planning

1 544 708 - 1 544 708 1 077 1 545 785 0.07

3 Energy Regulation 573 431 (33 045) 540 386 1 186 541 572 0.21

4 National Electrifi cation Programme

3 264 555 - 3 264 555 1 025 3 265 580 0.03

5 Nuclear Energy & Regulation

641 875 - 641 875 1 536 643 411 0.24

Total 6 200 909 - 6 200 909 - 6 200 909 100.00

Although the DoE was allocated additional funding through the Adjusted Estimates of National

Expenditure (AENE) process for operational activities, several directorates refl ected an overspending

under compensation of employees and goods and services. To ensure that all directorates remained

within their allocated budgets and that allocations appropriated for main divisions in the vote were not

exceeded, corrective measures were taken after quarterly expenditure reviews.

This included the shifting of funds within and between main divisions of the vote. This exercise allows

for reprioritisation of activities periodically when changes become necessary. The revised organisational

structure was not implemented at the beginning of the year, hence this has also contributed to the allocation

of funding being adjusted accordingly. All virement submissions were approved by the Accounting Offi cer

and NT.


110



2.4 Other material fi nancial matters

Ø Irregular expenditure

During the year under review the DoE identifi ed irregular expenditure to the amount of R 22.26

million. This amount is made up of R 165 590.00 attributable to non-compliance to procurement

procedures, and further irregular expenditure in the amount of R 22.09 million incurred as a result of

payments made against an unsigned lease, which was one of the operational consequences that had

to be borne by the DoE after the split from the DME.

The DoE is awaiting condonation for R 22.09 million for the 2011/12 fi nancial year and R 17.40 million

for the 2010/11 fi nancial year for the unsigned lease relating to offi ce accommodation.

Ø Unauthorised expenditure

During the 2010/11 fi nancial year, R 14.8 million was disbursed from the incorrect vote. A request for

condonation has been submitted to the NT for consideration. The DoE is awaiting a fi nal decision. No

unauthorised expenditure was incurred in the 2011/12 fi nancial year.

Ø Contingent liability

A potential liability in the amount of R 1.9 million relates to the disputed hours and costs between the

DoE and the service provider for the forensic audit into suspected irregularities within the non-grid

electrical services environment, which started in the 2009 fi nancial year, whilst the DoE was part of

the Department of Minerals and Energy. The DoE has made a payment of R 600 725 as full and fi nal

settlement of the account. The DoE has further written to the service provider indicating their fees

charged were unjustifi ed and no reply in this regard has been received.

3. Capacity Constraints

The DoE is still operating on an interim organisational structure although the macro-organisational structure

was approved and concurred with by the Minister for Public Service and Administration in July 2011. The

subordinate components of the macro organisational structure have been determined, however, they are

in a process of being fi nalised. In terms of the proposed organisational structure a total number of 764

posts will be required for it to be fully functional. The total post establishment has been reduced from 927

of the approved establishment that could not be funded, to a minimum of 764. The rationale behind the

aforementioned is for the DoE to have a lean, cost-effective and effi cient establishment that will enable

the DoE to deliver on its mandate. Of the 576 positions approved on the interim organisational structure,

54 could not be fi lled pending the full implementation of the macro organisational structure.


111



The implementation of the interim organisational structure has led to a situation where some employees

have to act in higher positions for long periods without the post being fi lled, which sometimes compromises

service delivery, the acting employees and also contradicts the regulatory provisions. In some instances,

delivery on other key performance areas had to be deferred because of lack of capacity. In some instances,

overtime remuneration has to be considered particularly when delivery of specifi c services is linked to

very tight time frames. Because of lack of both fi nancial and human resources capacity, the DoE has also

embarked on partnerships to deliver other key services within its mandate.

The limited budget hinders the implementation of training programmes identifi ed by senior managers in

the line function components. Some training courses are offered outside the country and this makes it

diffi cult for the DoE to release these employees to attend the aforementioned courses, taking into account

service delivery implications.

4. Utilisation of Donor Funds

The Government of South Africa and the Government of Switzerland recognise climate change as a

fundamental risk to future development and livelihood. Based on the South African Long Term Mitigation

Scenarios (LTMS), the different options for climate change reductions have been assessed and it is

acknowledged that energy effi ciency is one of the most cost-effective mitigation options in South Africa.

South Africa launched its strategy for energy effi ciency in 2005 but implementation is constrained by lack

of capacity at national, municipal and the sector practitioners’ level.

During the 2011/12 fi nancial year the DoE received donor funding to a total of R 3.4 million from the

Swiss Confederation, acting through the Swiss Agency for Development and Cooperation to contribute

towards the Energy Effi ciency Monitoring and Implementation Project in South Africa. A payment of R

3.4 million was subsequently disbursed to the South African National Energy Development Institute as

the implementing agent for the mentioned project.


112



5. Trading Entities and Public Entities

The DoE continues to monitor the performance of the entities under its control with specifi c reference

to governance and fi nancial management. The table below illustrates the performance of the entities

reporting to the Minister of Minerals and Energy in relation to the Auditor-General South Africa’s (AGSA)

report for the 2010/11 fi nancial year. It is clear from this report that the fi nancial controls and monitoring

systems put in are effective. During 2011/12 the DoE continued to improve its oversight over these

entities. Although the AGSA’s report for 2011/12 will only be fi nalised in July 2012, it is expected that the

entities will continue improving their performance.

Entity Funding Source Audit Opinion for 2009/10

Audit Opinion for 2010/11

NERSA Levies from regulated industries Unqualifi ed Unqualifi ed

EDIH Eskom multi-year pricing determination (MYPD) allocation & government grant

Unqualifi ed Unqualifi ed

NNR Fees from nuclear authorisation holders & government grant

Unqualifi ed Unqualifi ed

NECSA Own & government grant Unqualifi ed Unqualifi ed

Central Energy Fund (CEF) Own Unqualifi ed Unqualifi ed

EDIH ceased operations on 31 March 2011 in line with Cabinet decision of December 2010. The board-

appointed administrator has concluded the process of winding up the company and the transfer and

disposing of all the remaining assets and liabilities as at the end of March 2012.

The South African National Energy Development Institute (SANEDI) commenced operations during the

2011/12 fi nancial year. The National Energy Effi ciency Agency (NEEA) and the South African National

Energy Research Institute (SANERI), which were subsidiaries of CEF (SOC) Ltd, have been transferred

to SANEDI as divisions.

Details on entities reporting to the Minister of Energy are listed under General Information in the Annual

Report.


113



6. Organisations to Whom Transfer Payments Have Been Made

The transfer of payments to municipalities has been made in accordance with the approved transfers

DoRA requirements (refer to note 7 to the annual fi nancial statements).

6.1 Transfers and subsidies

As at 31 March 2012, the DoE disbursed transfer payments to the value of R 5.829 billion, which

represented 99.8% of the budget for the year to public entities, municipalities and implementing agencies.

Major transfer payments are refl ected in the following table:

Transfer Payments Original Budget 2011/12

Year to Date Transfer Payments- up to

March 2012

Available Balance

March 2012

Actual Spending for the Year as a Percentage of Total Budget Allocation

R’000 R’000 R’000 %

Working for Energy Project 25 000 25 000 - 100.00

REFSO 20 191 20 191 - 100.00

SANEDI 20 100 20 100 - 100.00

Transnet Pipelines 1 500 000 1 500 000 - 100.00

EEDSM – Eskom 118 800 118 800 - 100.00

EEDSM – Municipality 280 000 280 000 - 100.00

NECSA 586 034 586 034 - 100.00

NNR 35 430 35 430 - 100.00

EDIH 11 758 - 11 758 -

SWC 2010 LOC 282 000 281 000 1 000 99.65

INEP – Eskom 1 737 812 1 737 811 1 100.00

INEP – Municipality 1 096 612 1 096 611 1 100.00

INEP – Non-grid 127 861 127 860 1 100.00

Households 349 162 187 46.42

Total Transfer Payments 5 841 947 5 828 999 12 948 99.78

Transfers and subsidies are included under Annexure 1A, 1B and 1C to the annual fi nancial statements.


114



7. Public Private Partnerships

There were no public private partnerships for the fi nancial year ended 31 March 2012.

8. Corporate Governance Arrangements

The DoE subscribes to principles of sound corporate governance. In line with this principle, the following

processes and structures have been put in place:

Ø The DoE’s management structures continued to function effectively during the year with the Executive

Committee (EXCO) meetings held every second week and the Management Committee (MANCO)

meetings held on a monthly basis. The terms of reference of MANCO and EXCO were approved during

the year under review. The Minister also held meetings with the DG and all the Deputy Directors-

General (DDG). We also held quarterly meetings between the Minister and the Chairpersons of the

SOEs; and the DG and the Chief Executive Offi cers (CEOs) of the SOEs reporting to the Minister of

Energy.

Ø Senior Managers are required to disclose their fi nancial interests annually in line with the Financial

Disclosure Framework.

Ø The DoE’s Risk Management Unit was established in May 2011 with the appointment of the

Chief Director and a Deputy Director. A Risk Management Committee and a Risk Management

Subcommittee is in place to oversee the effectiveness of the risk management system. The terms of

reference for the Risk Management Committee and the Risk Management Subcommittee are in place

and aligned to the Risk Management Strategy and Risk Management Implementation Plan.

Ø Risk assessments are conducted annually and a response action plan is in place to improve the

control environment. The Risk Register is monitored and evaluated by management to assess the

effectiveness of the mitigation strategies.

Ø A Fraud Prevention Plan is in place to fi ght and combat all activities of fraud and corruption within

the DoE. A code of conduct is in place and communicated to employees, during the orientation and

induction sessions together with other policies and prescripts of the DoE.

Ø The DoE has an internal audit activity that is under the guidance, direction and supervision of the

Chief Audit Executive. The function is responsible for providing independent, objective assurance

and consulting services that are aimed at adding value and increasing the DoE’s opportunities

towards accomplishing its objectives. The function carries out its activities with profi ciency and due

professional care. To ensure its effectiveness and effi ciency, the function makes use of a systematic,

disciplined approach to evaluate the adequacy, effectiveness and effi ciency of the DoE’s governance,

risk management and control processes.

Ø To maintain its independence, the Internal Audit Activity appropriately reports administratively to the

Accounting Offi cer and functionally to the Audit Committee. Its authority includes unlimited access


115



to all staff, information and property of the DoE. The function obtains its mandate from the Internal

Audit Charter, which was prepared and approved in the reporting period. During the fi nancial period

under review, the Committee met six times. The matters tabled for consideration by the Committee

included the review of fi nancial statements, the AGSA’s management letters, reports and activities of

the Internal Audit Activity and the Risk Management Offi ce, and matters relating to compliance with

laws, regulations and policies.

9. External Assurance

Ø The DoE’s Audit Committee continued to function in terms of Section 77 of the PFMA. The term of

appointment of the three members of the DoE’s Audit Committee is for three years, ending in August

2013. The members of the Audit Committee have the requisite skills, knowledge and competence

to deal with fi nancial, risk management, governance, ethical and other matters that pertain to its

responsibility. The Committee operates in line with its approved Charter.

Ø The AGSA also provides external assurance to the DoE through its audit function in line with the

Public Audit Act.

10. Discontinued Activities/Activities to be Discontinued

Cabinet took a decision to cease operations and deregister EDIH as at 31 March 2011. The wind-up

process is at its fi nal stages. No activities were undertaken by EDIH during the year under review. The

fi nal audited annual fi nancial statements for EDIH will be submitted to the NT on 31 May 2012.

11. New/Proposed Activities

The process of transferring some of the electricity distribution oversight functions from EDIH to the DoE

with effect from 1 April 2011 was anticipated to be completed by the end of the fi nancial year. By year

end, discussions between the NT, NERSA and the DoE on the provision of additional capacity within the

DoE, the funding model for the EDIH rehabilitation and maintenance programme and the utilisation of

the Multi-Year Price Determination (MYPD) funds remaining from the MYPD2 transfers to EDIH were far

advanced.

12. Asset Management The asset register complies with the minimum requirements for an asset register with all assets procured

during the 2011/12 fi nancial year. Assets at a fair value amount of R 3.1 million were transferred from

EDIH to the DoE in the current fi nancial year.


116



13. InventoriesInventories purchased in the current fi nancial year end amount to:

Details R’000

Learning & teaching support material 2

Fuel, oil & gas 17

Other consumable materials 402

Maintenance material 122

Stationery & printing 2 452

Medicine 24

Total 3 019

Refer to note 5.5 of the annual fi nancial statements.

14. Events after the Reporting DateThere are no signifi cant events after the reporting date.

15. Information on Predetermined Objectives

The DoE held its annual strategic planning retreat in November 2011. The strategic plan is informed

by the DoE’s mandate, recent Cabinet decisions involving policy matters such as the restructuring of

the electricity distribution industry, energy planning and the Minister’s signed performance agreement

which covers outcomes 2, 4, 6, 8 and 10 of the Government Outcomes. With regard to our response to

government outcomes, we broadened our approach to include even those outcomes that our Minister did

not sign delivery agreements for.

During the strategic planning session the DoE identifi ed the following strategic objectives, which were

based on an environmental scan of the operational environment and the risks identifi ed:Ø Secure energy supply and well-managed demand;Ø An effi cient, competitive and responsive energy infrastructure network;Ø Improved energy regulation and competition;Ø Effi cient and diverse energy mix for universal access within a transformed energy sector;Ø Environmental assets and natural resources protected and continually enhanced by cleaner energy

technologies;Ø Mitigation against, and adaptation to, the impacts of climate change; andØ Good corporate governance for effective and effi cient service delivery.


117



Each of the objectives was cascaded down to the responsible branch/component, giving details of the planned activities to be undertaken to achieve the said objectives. Reports detailing progress against planned activities are presented to the monthly DoE MANCO. In terms of Section 30 of the PFMA and Chapter 5 of the Treasury Regulations, a quarterly performance report is compiled and submitted to the Minister via the DG in which the DoE’s performance against predetermined objectives is reviewed.

Details of the 2011/12 programmes’ performance against the DoE’s predetermined objectives as aligned to the government outcomes and the Millennium Development Goals (MDGs) are listed under Section 2.2 Programme Performance later in this Annual Report.

16. Prior Modifi cations to Audit Reports

The following matters were brought to the attention of the Accounting Offi cer in the 2010/11 fi nancial year

as emphasis of matter in the report of the Auditor-General:

Matters of Non-Compliance Financial Year it Arose

Progress Made

1. The DoE incurred unauthorised expenditure of R 14.860 million due to funds that were expended for purposes which were not in accordance with the vote.

2010/11 The DoE has made a request to the NT for retrospective authorisation for this expense. The DoE is awaiting feedback in this regard.

2. The DoE incurred irregular expenditure of R 110.992 million due contravention of Treasury Regulation 8.2.2 relating to expenditure not approved according to the DoE’s fi nancial delegation.

2010/11 The Accounting Offi cer has subsequently condoned the irregular expenditure. Stricter internal control measures have been implemented to prevent a recurrence.

3. The DoE incurred irregular expenditure of R 1.371 million, due contravention of Treasury Regulation 16.A.3 relating to supply chain management.

2010/11 The Accounting Offi cer has subsequently condoned the irregular expenditure. However, the DoE’s disciplinary policy was enforced and employees received either a verbal or written warning.

17. SCOPA Resolution

No carry-over resolutions relating to the 2010/11 audit were made by Standing Committee on Public

Accounts (SCOPA) during the year under review.


118



18. Financial Position

The fi nancial position of the DoE as at 31 March 2012 and the results of its operations are set out in the

attached annual fi nancial statements; which includes:

Ø Statement of Financial Performance;

Ø Statement of Financial Position;

Ø Statement of Changes in Net Assets;

Ø Cash Flow Statement;

Ø Notes to the annual fi nancial statements (including Accounting Policies); and

Ø Disclosure Notes to the annual fi nancial statements and Annexure.

19. Approval

The annual fi nancial statements set out on pages 124 to 206 have been approved by the Accounting

Offi cer.

Ms Nelisiwe MagubaneDirector-General Department of Energy


119

National Department of Energy – Vote 29Report of the Auditor-General


REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON VOTE NO. 29: DEPARTMENT OF ENERGY

REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. I have audited the fi nancial statements of the Department of Energy set out on pages 124 to 185, which comprise the appropriation statement, the statement of fi nancial position as at 31 March 2012, the statement of fi nancial performance, statement of changes in net assets and the cash fl ow statement for the year then ended, and the notes, comprising a summary of signifi cant accounting policies and other explanatory information.

Accounting offi cer’s responsibility for the fi nancial statements

2. The accounting offi cer is responsible for the preparation of these fi nancial statements in accordance with The Departmental fi nancial reporting framework prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No.1 of 1999) (PFMA) and Division of Revenue Act of South Africa, 2012 (Act No.06 of 2011) (DoRA), and for such internal control as the accounting offi cer determines is necessary to enable the preparation of fi nancial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s responsibility

3. My responsibility is to express an opinion on these fi nancial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the General Notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fi nancial statements.


120



5. I believe that the audit evidence I have obtained is suffi cient and appropriate to provide a basis for my audit opinion.

Opinion

6. In my opinion, the fi nancial statements present fairly, in all material respects, the fi nancial position of the Department of Energy as at 31 March 2012, and its fi nancial performance and cash fl ows for the year then ended in accordance with the departmental fi nancial reporting framework prescribed by the National Treasury and the requirements of the PFMA and the DoRA.

Additional matters

7. I draw attention to the matters below. My opinion is not modifi ed in respect of these matters.

Unaudited supplementary schedules

8. The supplementary information set out on pages 186 to 206 does not form part of the fi nancial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.

Financial reporting framework

9. The fi nancial reporting framework prescribed by the National Treasury and applied by the department is a compliance framework. The wording of my opinion on a compliance framework should refl ect that the fi nancial statements have been prepared in accordance with this framework and not that they “present fairly”. Section 20(2)(a) of the PAA, however, requires me to express an opinion on the fair presentation of the fi nancial statements. The wording of my opinion therefore refl ects this requirement.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

10. In accordance with the PAA and the General Notice issued in terms thereof, I report the following fi ndings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

Predetermined objectives

11. I performed procedures to obtain evidence about the usefulness and reliability of the information in the Annual performance report as set out on pages 21 to 92 of the annual report.

12. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report


121



relates to whether it is presented in accordance with the National Treasury annual reporting principles and whether the reported performance is consistent with the planned programmes. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defi ned, verifi able, specifi c, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.

The reliability of the information in respect of the selected programmes is assessed to determine

whether it adequately refl ects the facts (i.e. whether it is valid, accurate and complete).

13. There were no material fi ndings on the Annual performance report concerning the usefulness and reliability of the information.

Additional matters

14. I draw attention to the following matter below. This matter does not have an impact on the predetermined objectives audit fi ndings reported above.

Achievement of planned targets

15. Of the total number of planned targets, only 96 targets were achieved during the year under review. This represents 43% of total planned targets that were not achieved during the year under review. This was mainly due to the fact that indicators and targets were not suitably developed during the strategic planning process.

Compliance with laws and regulations

16. I performed procedures to obtain evidence that the department has complied with applicable laws and regulations regarding fi nancial matters, fi nancial management and other related matters. My fi ndings on material non-compliance with specifi c matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:

Annual fi nancial statements, performance and annual reports

17. The fi nancial statements submitted for auditing were not prepared in accordance with the prescribed fi nancial reporting framework as required by section 40(1)(b) of the PFMA. A material misstatement of a disclosure item identifi ed by the auditors in the submitted fi nancial statement was subsequently corrected, resulting in the fi nancial statements receiving an unqualifi ed audit opinion.

18. The annual report for the year under review does not include information on the extent of monitoring performed by the department of the compliance by municipalities with the DoRA and the conditions of the allocation provided in the grant framework, as required by section 13(2) of the DoRA.


122



Expenditure management

19. The accounting offi cer did not take effective steps to prevent irregular expenditure, as required by

section 38(1)(c)(ii) of the PFMA and Treasury Regulation 9.1.1.

Procurement and contract management

20. Employees of the department performed remunerative work outside their employment in the

department without written permission from the relevant authority as required by section 30 of the

Public Service Act.

21. Quotations were awarded to bidders who did not submit a declaration on whether they are employed

by the state or connected to any person employed by the state, which is prescribed in order to comply

with Treasury regulation 16A8.3.

22. Quotations were awarded to suppliers whose tax matters had not been declared by the South African

Revenue Services to be in order as required by Treasury Regulations 16A9.1(d) and the Preferential

Procurement Regulations.

Transfer of funds

23. The arrangements and requirements for the Integrated National Electrifi cation Programme (Municipal)

grant as defi ned in the framework for the allocation were not adhered to, as the Department did not

sign the memorandum of agreements with all the municipalities before the beginning of the fi nancial

year in contravention with section 10(1)(e) of the Division of Revenue Act.

INTERNAL CONTROL

24. I considered internal control relevant to my audit of the fi nancial statements, annual performance

report and compliance with laws and regulations. The matters reported below under the fundamentals

of internal control are limited to the signifi cant defi ciencies that resulted in the fi ndings on the annual

performance report and the fi ndings on compliance with laws and regulations included in this report.

Financial and performance management

25. The reviewing and monitoring of compliance with applicable laws and regulations supported

by National Treasury practice notes were ineffective when dealing with transfer payments and

procurement through quotations.


123



26. Controls were not monitored and reviewed to ensure accurate and complete fi nancial and performance

reports that are supported and evidenced by reliable information to avoid material adjustments to the

fi nancial statements and the annual performance report submitted for audit.

OTHER REPORTS

Investigations

27. The department in conjunction with the Special Investigation unit are in the process of investigating

allegations that state employees are involved in the procurement processes.

Pretoria

22 August 2012


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137

National Department of Energy – Vote 29Notes to the Appropriation Statement


1. Details of Transfers and Subsidies as per Appropriation Act (after Virement)

Details of these transactions can be viewed in note 7 (Transfers and Subsidies) and Annexure 1(A-D) to the annual fi nancial statements.

2. Details of Specifi cally and Exclusively Appropriated Amounts Voted (after Virement)

Details of these transactions can be viewed in note 1 (Annual Appropriation) to the annual fi nancial statements.

3. Explanations of Material Variances per Programme

Programme 1 Final Appropriation

Actual Expenditure

Variance R’000

Variance as a Percentage of Final Appropriation

Administration 204 561 196 259 8 302 4.06

The under-spending of R 8.3 million mainly relates to the procurement of goods and services. This is as

a result of orders being placed but for which expenditure is pending due to delays in the delivery of goods and services, or late receipt of invoices and consequent delays in the processing of payments. The item goods and services thus refl ects an under-spending.

During the 2011/12 fi nancial year, approval was granted to contribute an amount of R 2 191 525.85 to APPA for the 2012 international membership fees. Although this amount was paid on 29 March 2012, the disbursement only took place on 3 April 2012 due to process delays in foreign currency payments and the time frames attached to foreign currency exchange to foreign entities.

During the 2011/12 fi nancial year, approval was granted for the acquisition of internal audit software packages for an amount of R 670 799.15. Due to delays associated with procurement processes these goods were not acquired before the closure of the 2011/12 fi nancial year. On 31 March 2012 an amount of R 670 799.15 for the acquired internal audit software remained unpaid due to the problems highlighted above. A saving realised under the item software and intangible assets during the 2011/12 fi nancial year will be utilised to fi nalise outstanding payments in the 2012/13 fi nancial year.

During the 2011/12 fi nancial year approval was granted for the acquisition of the installation and confi guration of data and voice network cabling (structured cabling system) for the DoE’s new offi ces.

The tender was awarded to the successful bidder to the value of R 4 649 605.69. In addition to this, a

tender was awarded to a successful bidder for an amount of R 668 606.71 for a computer server. Due to

delays in the relocation of the DoE to the new accommodation the services could not delivered pending

the fi nalisation of accommodation agreements and the relocation project.


138


Actual Expenditure

Variance R’000


Energy Policy & Planning 1 545 785 1 545 690 95 0.01

The under-spending of R 95 000.00 (0.01%) under Programme 2 is attributable to the late receipt of

invoices and subsequent delay in payments.


Actual Expenditure

Variance R’000


Energy Regulation 541 572 529 268 12 304 2.27

The Electricity, Nuclear Branch and Clean Energy recorded an under-spending of R 12.3 million which

represents an under-spending of 2.27%. Cabinet decided in December 2010 that EDIH should cease

operations and, in terms of this decision, EDIH ceased to exist on 31 March 2011. This has the effect that

the functions relating to the restructuring of the electricity distribution industry have reverted to the DoE

with effect from 1 April 2011. The DoE’s strategic plan addresses this by specifi cally proposing to develop

a funding and implementation plan to reduce the electricity distribution infrastructure maintenance

backlogs of R 27.4 billion to R 15 billion by 2015. During the 2011/12 fi nancial year, an amount of R

11.758 million was appropriated under Programme 3 for the winding down process of the EDIH. Based

on the fi nancial position of the EDIH after its closure, suffi cient funding was available within the EDIH to

settle outstanding legal matters and claims against the EDIH. The DoE requested approval from the NT

to utilise the R 11.758 million being the 2011/12 appropriated funding for the EDIH to initiate ADAM. No

funding is currently available within DoE to complete the initial work for the urgent analysis that has to be

done to implement ADAM. It was therefore requested that the R 11.758 million be reclassifi ed and rolled

over to the 2012/13 fi nancial year in order for DoE to implement this “mini ADAM” process as an initial

phase of ADAM to assist the struggling distributors with their network planning.

During the 2011/12 fi nancial year approval was granted to contribute R 666 809.00 to IRENA for 2012

international membership fees. Although the amount was paid on 29 March 2012, the disbursement

only took place on 3 April 2012 due to process delays in foreign currency payments and the time frame

attached to foreign currency exchange to foreign entities.


Actual Expenditure

Variance R’000

Variance as a % of Final Appropriation

INEP 3 265 580 3 264 540 1 040 0.03

The under-spending of R 1.04 million (0.03%) under Programme 4 is mostly due to an under-spending

of R 1 million relating to an allocation of R 282 million made to the 2010 Soccer World Cup (SWC) Local

Organising Committee (LOC). The fi nal invoice and subsequent payment was however only R 281 million

resulting in an under-spending of R 1 million.




139


Actual Expenditure

Variance R’000


Nuclear Energy & Regulation 643 411 638 505 4 906 0.76

The Nuclear Energy and Regulation Branch recorded an under-spending of R 4.9 million (0.76%).

During the 2011/12 fi nancial year, approval was granted to contribute an amount of R 5 049 922.46

to the IAEA for international membership fees. Although the amount was paid on 29 March 2012, the

disbursement only took place on 3 April 2012 due to process delays in foreign currency payments and

the time frame attached to foreign currency exchange to foreign entities.

4. Explanations of Material Variances: per Economic Classifi cation

Per Economic Classifi cation Final Appropriation

Actual Expenditure

Variance Variance as a % of Final

AppropriationR’000 R’000 R’000 R’000

Current PaymentsCompensation of employees 184 869 184 837 32 0.02Goods & services 164 877 156 337 8 540 5.18

Transfers & SubsidiesProvinces & municipalities 1 376 612 1 376 611 1 0.00Departmental agencies & accounts

67 288 55 530 11 758 17.47

Public corporations & private enterprises

4 397 698 4 396 695 1 003 0.02

Households 349 164 185 53.01

Payments for Capital AssetsMachinery & equipment 9 155 4 029 5 126 55.99Software & other intangible assets

Payments for Financial Assets 61 59 2 3.28

Total 6 200 909 6 174 262 26 647 0.43




140

Goods and services

The under-spending in goods and services is mainly due to process delays in foreign currency payments

and the time frames attached to foreign currency exchange to foreign entities. The following payments

were effected on 29 March 2012, for which the disbursements only took place on 3 April 2012:

• APPA for the 2012 international membership fees, an amount of R 2 191 525.85;

• IAEA for international membership fees, an amount of R 5 049 922.46; and

• IRENA for 2012 international membership fees, an amount of R 666 809.00.

Transfers and subsidies

The under-spending in transfers and subsidies is mainly attributable to:

• The non-transfer of an amount of R 11.758 million was appropriated for EDIH. Based on the fi nancial

position of EDIH after it ceased operations, suffi cient funding was available to settle outstanding legal

matters and claims against EDIH; and

• R 1 million relating to an allocation of R 282 million made to the 2010 SWC LOC. The fi nal invoice and

subsequent payment was only R 281 million resulting in an under-spending of R 1 million.

Payments for capital assets

The under-spending in payments for capital assets is due to the following:

• Audit software packages for an amount of R 670 799.15 remained unpaid as at 31 March 2012 due

to delays associated with procurement of these goods.

• The acquisition, installation and confi guration of data and voice network cabling (structured cabling

system) to the value of R 4 649 605.69 and a computer server in the amount of R 668 606.71 could

not be delivered due to delays in the relocation of the DoE to the new accommodation. These goods

are pending the fi nalisation of accommodation agreements and the relocation project.




141

Note 2011/12 2010/11R’000 R’000

Revenue

Annual appropriation 1 6 200 909 5 648 664Departmental revenue 2 3 381 3 917Aid assistance 3 3 400 5 541

Total 6 207 690 5 658 122

ExpenditureCurrent ExpenditureCompensation of employees 4 184 837 142 826Goods & services 5 156 337 91 031Aid assistance 3 - 869Total 341 174 234 726

Transfers & subsidiesTransfers & subsidies 7 5 829 000 5 268 205Aid assistance 3 3 400 -Total 5 832 400 5 268 205

Expenditure for Capital AssetsTangible capital assets 8 4 029 3 320Total 4 029 3 320

Payments For Financial Assets 6 59 -

Total Expenditure 6 177 662 5 506 251

30 028 151 871Surplus For the Year

Reconciliation of Net Surplus for the YearVoted funds 15 26 647 143 282Annual appropriation 26 647 143 282Departmental revenue & National Revenue Fund (NRF) receipts 2 3 381 3 917Aid assistance 3 - 4 672Surplus for the Year 30 028 151 871

National Department of Energy – Vote 29Statement of Financial Performance



142

Note 2011/12 2010/11R’000 R’000

Assets

Current Assets 26 935 161 811Unauthorised expenditure 9 14 860 14 860Cash & cash equivalents 10 11 853 136,284Prepayments & advances 11 98 60Receivables 12 124 10 607

Non-Current Assets 2 205 2,205Investments 13 2 205 2,205Loans 14 - -

Total 29 140 164 016

Liabilities

Current Liabilities 26,935 161 811Voted funds to be surrendered to the Revenue Fund 15 26 647 158 142Departmental revenue & NRF receipts to be surrendered to the Revenue Fund 16 218 49Payables 17 70 42Aid assistance repayable 3 - 3,578

Total 26 935 161 811

Net Assets 2 205 2 205

Represented by: -Capitalisation reserve 13 2 205 2 205

Total 2 205 2 205

National Department of Energy – Vote 29Statement of Financial Position



143

2011/12 2010/11

R’000 R’000Capitalisation ReservesOpening balance 2 205 -Transfers:Other movements 2 205Closing balance 2 205 2 205

Total 2 205 2 205

National Department of Energy – Vote 29Statement of Changes in Net Assets



144

Note 2011/12 2010/11R’000 R’000

Cash Flows from Operating ActivitiesReceipts 6 207 690 5 658 122Annual appropriated funds received 1.1 6 200 909 5 648 664Departmental revenue received 2 3 381 3 917Aid assistance received 3 3 400 5 541

Net (increase) in working capital 10 473 (25 485)Surrendered to Revenue Fund (161 354) (3 868)Surrendered to RDP Fund/Donor (3 578) (1 094)

Current payments (341 174) (219 866)Payments for fi nancial assets (59)Transfers & subsidies paid (5 832 400) (5 268 205)Net Cash Flow available from Operating Activities 18 (120 402) 139 604

Cash Flows from Investing ActivitiesPayments for capital assets 8 (4 029) (3 320)(Increase) in investments - (2 205)Net Cash Flow from Investing Activities (4 029) (5 525)

Cash Flows from Financing ActivitiesIncrease in net assets - 2 205Net Cash Flow Financing Activities - 2 205

Net increase (decrease) in cash & cash equivalents (124 431) 136 284

Cash & cash equivalents at beginning of period 10 136 284 -

Cash & cash equivalents at end of period 19 11 853 136 284

National Department of Energy – Vote 29Cash Flow Statement



145

The fi nancial statements have been prepared in accordance with the following policies, which have been applied

consistently in all material aspects, unless otherwise indicated. However, where appropriate and meaningful,

additional information has been disclosed to enhance the usefulness of the fi nancial statements and to comply

with the statutory requirements of the PFMA (as amended by Act 29 of 1999), and the Treasury Regulations

issued in terms of the Act and the Division of Revenue Act, 2010 (Act No. 1 of 2010).

1. Presentation of the Financial Statements

1.1 Basis of preparation

The fi nancial statements have been prepared on a modifi ed cash basis of accounting, except where

stated otherwise. The modifi ed cash basis constitutes the cash basis of accounting supplemented

with additional disclosure items. Under the cash basis of accounting transactions and other events are

recognised when cash is received or paid.

1.2 Presentation currency

All amounts have been presented in the currency of the South African Rand (R) which is also the functional

currency of the DoE.

1.3 Rounding

Unless otherwise stated, all fi nancial fi gures have been rounded to the nearest one thousand Rand

(R’000).

1.4 Comparative fi gures

Prior period comparative information has been presented in the current year’s fi nancial statements. Where

necessary fi gures included in the prior period fi nancial statements have been reclassifi ed to ensure that

the format in which the information is presented is consistent with the format of the current year’s fi nancial

statements.

1.5 Comparative fi gures – Appropriation Statement

A comparison between actual amounts and fi nal appropriation per major classifi cation of expenditure is

included in the Appropriation Statement.

National Department of Energy – Vote 29Accounting Policies



146

2. Revenue

2.1 Appropriated funds

Appropriated funds comprise departmental allocations as well as direct charges against Revenue Fund

(i.e. statutory appropriation).

Appropriated funds are recognised in the fi nancial records on the date the appropriation becomes

effective. Adjustments made in terms of the adjustments budget process are recognised in the fi nancial

records on the date the adjustments become effective.

Unexpended appropriated funds are surrendered to the National/Provincial Revenue Fund. Any amounts

owing to the National/Provincial Revenue Fund at the end of the fi nancial year are recognised as payable

in the Statement of Financial Position.

Any amount due from the National/Provincial Revenue Fund at the end of the fi nancial year is recognised

as a receivable in the Statement of Financial Position.

2.2 Departmental revenue

All departmental revenue is recognised in the statement of fi nancial performance when received and is

subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise.

Any amount owing to the National/Provincial Revenue Fund is recognised as a payable in the Statement

of Financial Position.

No accrual is made for amounts receivable from the last receipt date to the end of the reporting period.

These amounts are, however, disclosed in the disclosure note to the annual fi nancial statements.

2.3 Direct exchequer receipts

All direct exchequer receipts are recognised in the statement of fi nancial performance when the cash is

received and is subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise.

Any amount owing to the National/Provincial Revenue Fund at the end of the fi nancial year is recognised

as a payable in the Statement of Financial Position.




147

2.4 Direct exchequer payments

All direct exchequer payments are recognised in the statement of fi nancial performance when fi nal

authorisation for payment is effected on the system (by no later than 31 March of each year).

2.5 Aid assistance

Aid assistance is recognised as revenue when received.

All in-kind aid assistance is disclosed at fair value on the date of receipt in the Annexure to the annual

fi nancial statements.

The cash payments made during the year relating to aid assistance projects are recognised as expenditure

in the Statement of Financial Performance when fi nal authorisation for payments is effected on the system

(by no later than 31 March of each year).

The value of the assistance expensed prior to the receipt of funds is recognised as a receivable in the

Statement of Financial Position.

Inappropriately expensed amounts using aid assistance and any unutilised amounts are recognised as

payables in the Statement of Financial Position.

All Criminal Asset Recovery Account (CARA) funds must be recorded as revenue when received. The

cash payments made during the year relating to CARA earmarked projects are recognised as expenditure

in the statement of fi nancial performance when fi nal authorisation for payments is effected on the system

(by no later than 31 March of each year).

Inappropriately expensed amounts using CARA funds are recognised as payables in the Statement of

Financial Position. Any unutilised amounts are transferred to retained funds as they are not surrendered

to the Revenue Fund.

3. Expenditure

3.1 Compensation of employees

3.1.1 Salaries and wages

Salaries and wages are expensed in the statement of fi nancial performance when the fi nal authorisation

for payment is effected on the system (by no later than 31 March of each year).




148

Other employee benefi ts that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the annual fi nancial statements at their face value and are not recognised in the statement of fi nancial performance or position.Employee costs are capitalised to the cost of a capital project when an employee spends more than 50% of his or her time on the project. These payments form part of expenditure for capital assets in the statement of fi nancial performance.

3.1.2 Social contributions

Employer contributions to post-employment benefi t plans in respect of current employees are expensed in the statement of fi nancial performance when the fi nal authorisation for payment is effected on the system (by no later than 31 March of each year).

No provision is made for retirement benefi ts in the fi nancial statements of the DoE. Any potential liabilities are disclosed in the fi nancial statements of the National Revenue Fund and not in the fi nancial statements of the employer’s department.

Employer contributions made by the DoE for certain of its ex-employees (such as medical benefi ts) are classifi ed as transfers to households in the statement of fi nancial performance.

3.2 Goods and services

Payments made during the year for goods and/or services are recognised as an expense in the statement of fi nancial performance when the fi nal authorisation for payment is effected on the system (by no later than 31 March of each year).

The expense is classifi ed as capital if the goods and/or services were acquired for a capital project or if the total purchase price exceeds the capitalisation threshold (currently R 5 000). All other expenditures are classifi ed as current.

Rental paid for the use of buildings or other fi xed structures is classifi ed as goods and services and not as rent on land.

3.3 Interest and rent on land

Interest and rental payments are recognised as an expense in the statement of fi nancial performance when the fi nal authorisation for payment is effected on the system (by no later than 31 March of each year). This item excludes rental for the use of buildings or other fi xed structures. If it is not possible to distinguish between payment for the use of land and the fi xed structures on it, the whole amount should be recorded under goods and services.




149

3.4 Payments for fi nancial assets

Debts are written off when identifi ed as irrecoverable. Debts written off are limited to the amount of

savings and/or under-spending of appropriated funds. The write-off occurs at year end or when funds are

available. No provision is made for irrecoverable amounts, but an estimate is included in the disclosure

notes to the fi nancial statements amounts.

All other losses are recognised when authorisation has been granted for the recognition thereof.

3.5 Transfers and subsidies

Transfers and subsidies are recognised as an expense when the fi nal authorisation for payment is effected

on the system (by no later than 31 March of each year).

3.6 Unauthorised expenditure

When confi rmed, unauthorised expenditure is recognised as an asset in the Statement of Financial

Position until such time as the expenditure is either approved by the relevant authority, recovered from

the responsible person or written off as irrecoverable in the statement of fi nancial performance.

Unauthorised expenditure approved with funding is derecognised from the Statement of Financial Position

when the unauthorised expenditure is approved and the related funds are received.

Where the amount is approved without funding it is recognised as expenditure in the statement of fi nancial

performance on the date of approval.

3.7 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recognised as expenditure in the statement of fi nancial performance

according to the nature of the payment and not as a separate line item on the face of the statement. If

the expenditure is recoverable it is treated as an asset until it is recovered from the responsible person or

written off as irrecoverable in the statement of fi nancial performance.

3.8 Irregular expenditure

Irregular expenditure is recognised as expenditure in the statement of fi nancial performance. If the

expenditure is not condoned by the relevant authority it is treated as an asset until it is recovered or

written off as irrecoverable.




150

4. Assets

4.1 Cash and cash equivalents

Cash and cash equivalents are carried in the Statement of Financial Position at cost.

Bank overdrafts are shown separately on the face of the Statement of Financial Position.

For the purposes of the cash fl ow statement, cash and cash equivalents comprise cash on hand, deposits

held, other short-term highly liquid investments and bank overdrafts.

4.2 Other fi nancial assets

Other fi nancial assets are carried in the Statement of Financial Position at cost.

4.3 Prepayments and advances

Amounts prepaid or advanced are recognised in the Statement of Financial Position when the payments

are made and are derecognised as and when the goods and/or services are received or the funds are

utilised.

Prepayments and advances outstanding at the end of the year are carried in the Statement of Financial

Position at cost.

4.4 Receivables

Receivables included in the Statement of Financial Position arise from cash payments made that are

recoverable from another party (including departmental employees) and are derecognised upon recovery

or write-off.

Receivables outstanding at year end are carried in the Statement of Financial Position at cost plus any

accrued interest. Amounts that are potentially irrecoverable are included in the disclosure notes.

4.5 Investments

Capitalised investments are shown at cost in the Statement of Financial Position.

Investments are tested for an impairment loss whenever events or changes in circumstances indicate that

the investment may be impaired. Any impairment loss is included in the disclosure notes.




151

4.6 Loans

Loans are recognised in the Statement of Financial Position when the cash is paid to the benefi ciary. Loans that are outstanding at year end are carried in the Statement of Financial Position at cost plus accrued interest.

Amounts that are potentially irrecoverable are included in the disclosure notes.

4.7 Inventory

Inventories that qualify for recognition must be initially refl ected at cost. Where inventories are acquired at no cost, or for nominal consideration, their cost shall be their fair value at the date of acquisition.

All inventory items at year end are refl ected using the weighted average cost or fi rst-in, fi rst-out (FIFO) cost formula.

4.8 Capital assets

4.8.1 Movable assets

Initial recognition

A capital asset is recorded in the asset register on receipt of the item at cost. Cost of an asset is defi ned as the total cost of acquisition. Where the cost cannot be determined accurately, the movable capital asset is stated at fair value. Where fair value cannot be determined, the capital asset is included in the asset register at R 1.

All assets acquired prior to 1 April 2002 are included in the register at R1.

Subsequent recognition

Subsequent expenditure of a capital nature is recorded in the Statement of Financial Performance as expenditure for capital assets and is capitalised in the asset register of the DoE on completion of the project.

Repairs and maintenance is expensed as current goods and services in the statement of fi nancial performance.

4.8.2 Immovable assets

Initial recognition

A capital asset is recorded on receipt of the item at cost. Cost of an asset is defi ned as the total cost of acquisition. Where the cost cannot be determined accurately, the immovable capital asset is stated at R 1 unless the fair value for the asset has been reliably estimated.




152

Subsequent recognitionWork in progress of a capital nature is recorded in the Statement of Financial Performance as expenditure

for capital assets. On completion, the total cost of the project is included in the asset register of the DoE

that is accountable for the asset.

Repairs and maintenance is expensed as current goods and services in the statement of fi nancial

performance.

4.8.3 Intangible assets

Initial recognition

An intangible asset is recorded in the asset register on receipt of the item at cost. Cost of an intangible

asset is defi ned as the total cost of acquisition. Where the cost cannot be determined accurately, the

intangible asset is stated at fair value. Where fair value cannot be determined, the intangible asset is

included in the asset register at R 1.

Subsequent expenditure

Subsequent expenditure of a capital nature is recorded in the Statement of Financial Performance as

expenditure for capital asset and is capitalised in the asset register of the department.

Maintenance is expensed as current goods and services in the Statement of Financial Performance.

5. Liabilities

5.1 Payables

Recognised payables mainly comprise amounts owing to other governmental entities. These payables

are carried at cost in the Statement of Financial Position.

5.2 Contingent liabilities

Contingent liabilities are included in the disclosure notes to the fi nancial statements when it is possible

that economic benefi ts will fl ow from the DoE, or when an outfl ow of economic benefi ts or service potential

is probable but cannot be measured reliably.

5.3 Contingent assets

Contingent assets are included in the disclosure notes to the fi nancial statements when it is probable that

an infl ow of economic benefi ts will fl ow to the entity.




153



5.4 Commitments

Commitments are not recognised in the Statement of Financial Position as a liability or as expenditure in the statement of fi nancial performance but are included in the disclosure notes.

5.5 Accruals

Accruals are not recognised in the Statement of Financial Position as a liability or as expenditure in the statement of fi nancial performance but are included in the disclosure notes.

5.6 Employee benefi ts

Short-term employee benefi ts that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the fi nancial statements. These amounts are not recognised in the statement of fi nancial performance or the Statement of Financial Position.

5.7 Lease commitments

Finance lease

Finance leases are not recognised as assets and liabilities in the Statement of Financial Position. Finance lease payments are recognised as an expense in the statement of fi nancial performance and are apportioned between the capital and interest portions. The fi nance lease liability is disclosed in the disclosure notes to the fi nancial statements.

Operating lease

Operating lease payments are recognised as an expense in the statement of fi nancial performance. The operating lease commitments are disclosed in the disclosure notes to the fi nancial statements.

5.8 Impairment

The DoE tests for impairment where there is an indication that a receivable, loan or investment may be impaired. An assessment of whether there is an indication of possible impairment is done at each reporting date. An estimate is made for doubtful loans and receivables based on a review of all outstanding amounts at year end. Impairments on investments are calculated as being the difference between the carrying amount and the present value of the expected future cash fl ow/service potential fl owing from the instrument.

5.9 Provisions

Provisions are disclosed when there is a present legal or constructive obligation to forfeit economic benefi ts as a result of events in the past and it is probable that an outfl ow of resources embodying economic benefi ts will be required to settle the obligation and a reliable estimate of the obligation can be made.


154



6. Receivables for Departmental Revenue

Receivables for departmental revenue are disclosed in the disclosure notes to the annual fi nancial statements.

7. Net Assets

7.1 Capitalisation reserve

The capitalisation reserve comprises fi nancial assets and/or liabilities originating in a prior reporting period but which are recognised in the Statement of Financial Position for the fi rst time in the current reporting period. Amounts are recognised in the capitalisation reserves when identifi ed in the current period and are transferred to the National/Provincial Revenue Fund when the underlining asset is disposed and the related funds are received.

7.2 Recoverable revenue

Amounts are recognised as recoverable revenue when a payment made in a previous fi nancial year becomes recoverable from a debtor in the current fi nancial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of fi nancial performance when written off.

8. Related Party Transactions

Specifi c information with regard to related party transactions is included in the disclosure notes.

9. Key Management Personnel

Compensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.

10. Public Private Partnerships

A description of the public private partnerships arrangement, the contract fees, and current and capital

expenditure relating to the public private partnerships arrangement is included in the disclosure notes.


155

National Department of Energy – Vote 29Notes to the Annual Financial Statements


1. Annual Appropriation

Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act)

for national departments (voted funds) and provincial departments:

2011/12 2010/11

Programmes Final Appropriation

Actual Funds Received

Funds Not Requested/Not

Received

Appropriation Received

R’000 R’000 R’000 R’000

Administration 204 561 204 561 - 127 016

Energy Policy & Planning 1 545 785 1 545 785 - 1 570 058

Energy Regulation 541 572 541 572 - 431 830

INEP 3 265 580 3 265 580 - 3 519 760

Nuclear Energy & Regulation 643 411 643 411 - -

Total 6 200 909 6 200 909 - 5 648 664

2. Departmental Revenue 2011/12 2010/11

Note R’000 R’000

Sales of goods & services other than capital assets 2.1 2 872 3 706

Interest, dividends & rent on land 2.2 168 14

Transactions in fi nancial assets & liabilities 2.3 341 197

Departmental revenue collected 3 381 3 917

2.1 Sales of goods and services other than capital assets 2

Sales of goods & services produced by the DoE 2 872 3 706

Sales by market establishment 255 169

Administrative fees 2 549 3 537

Other sales 68 -

Total 2 872 3 706


156



Revenue under sales of goods and services produced by the DoE includes rental from under-cover

parking, petroleum licence fees, replacement of security cards and commissions from insurance and

garnishees.

2011/12 2010/11

Note R’000 R’000

2.2 Interest, dividends and rent on land 2

Interest 168 14

Total 168 14

2.3 Transactions In Financial Assets And Liabilities 2

Receivables 66 197

Other receipts including recoverable revenue 275 -

Total 341 197

Revenue under transactions in fi nancial assets and liabilities includes recovery of prior year expenses.

3. Aid Assistance

3.1 Aid assistance received in cash from the Reconstruction and Development Programme (RDP)

Foreign

Opening balance 3 578 -

Revenue 3 400 5 541

Expenditure (3 400) (869)

Current - (869)

Transfers (3 400) -

3 578 4 672

Surrendered to the RDP (3 578) (1 094)

Closing balance - 3 578


157

2011/12 2010/11

Note R’000 R’000

3.2 Analysis of Balance

Aid assistance repayable to the RDP - 3 578

Closing balance - 3 578

4. Compensation of Employees

4.1 Salaries and Wages

Basic salary 124 568 94 333

Performance award 2 522 2 531

Service-based 478 640

Compensative/circumstantial 2 730 3 596

Periodic payments - 84

Other non-pensionable allowances 32 485 25 019

Total 162 783 126 203

4.2 Social Contributions

Employer contributions

Pension 15 664 11 975

Medical 6 362 4 625

Bargaining council 28 23

Total 22 054 16 623

Total compensation of employees 184 837 142 826

Average number of employees 541 526




158

2011/12 2010/11

5. Goods and Services Note R’000 R’000

Administrative fees 2 331 1 990

Advertising 2 703 2 571

Assets less than R 5 000 5.1 230 728

Bursaries (employees) 837 416

Catering 1 623 1 453

Communication 5 826 4 261

Computer services 5.2 6 598 2 834

Consultants, contractors & agency/outsourced services 5.3 38 327 10 534

Entertainment 119 83

Audit cost: external 5.4 4 104 1 878

Inventory 5.5 3 019 2 012

Operating leases 5.9 25 830 22 205

Owned & leasehold property expenditure 5.6 472 606

Rental & hiring 2 -

Travel & subsistence 5.7 40 121 30 357

Venues & facilities 8 210 4 338

Training & staff development 2 522 1 322

Other operating expenditure 5.8 13 463 3 443

Total 156 337 91 031

5.1 Assets less than R 5 000 5

Tangible assets

Machinery & equipment 228 728

Transport assets 2 -

Total 230 728

5.2 Computer service 5

State Information Technology Agency (SITA) computer services

4 371 1 718

External computer service providers 2 227 1 116Total 6 598 2 834




159

2011/12 2010/11

Note R’000 R’000

5.3 Consultants, contractors and Agency/outsourced services 5

Business and advisory services 35 653 6 658

Legal costs 767 46

Contractors 1 481 3 119

Agency & support/outsourced services 426 711

Total 38 327 10 534

5.4 Audit Cost: external 5

Regularity audits 4 104 1 878

Total 4 104 1 878

5.5 Inventory 5

Learning & teaching support material 2 48

Fuel, oil & gas 17 10

Other consumable materials 402 104

Maintenance material 122 151

Stationery & printing 2 452 1 699

Medicine 24 -

Total 3 019 2 012

5.6 Property payments 5

Cleaning services 469 605

Fumigation 3 1

Total 472 606

Expenditure under owned and leasehold property expenditure includes cleaning services.

5.7 Travel and subsistence 5

Domestic 27 167 18 445

International 12 954 11 912

Total 40 121 30 357




160

2011/12 2010/11

Note R’000 R’000

5.8 Other operating expenditure 5

Professional bodies, membership & subscription fees 10 418 2 562

Resettlement costs 216 350

Other 2 829 531

Total 13 463 3 443

Expenditure under other operating expenditure includes courier and delivery services, licences, permits,

vehicle tracking, freight services, taking over study loan obligations, and printing and publication services.

5.9 Operating leases 5

Offi ce equipment 571 361

Offi ce accommodation 25 259 21 844

Total 25 830 22 205

6. Payments for Financial Assets

Other material losses written off 6.1 54 -

Debts written off 6.2 5 -

Total 59 -

6.1 Other material losses written off

Nature of losses

Assets written off (e.g. laptops stolen) 54 -

Total 54 -

6.2 Debts written off

Nature of debts written off

Debts written off 5 -

Total 5 -




161

2011/12 2010/11

Note R’000 R’000

7. Transfers and Subsidies

Provinces & municipalities Annexure 1A 1 376 611 1 253 382

Departmental agencies & accounts Annexure 1B 55 530 81 536

Public corporations & private enterprises Annexure 1C 4 396 696 3 933 209

Households Annexure 1D 161 78

Gifts, donations & sponsorships made Annexure 1G 2 -

Total 5 829 000 5 268 205

8. Expenditure for Capital Assets

Tangible assets 4 029 3 320

Machinery & equipment 4 029 3 320

Total 4 029 3 320

8.1 Analysis of funds utilised to acquire capital assets – 2011/12

Voted Funds Aid Assistance Total

R’000 R’000 R’000

Tangible assets 4 029 - 4 029

Machinery & equipment 30.1 4 029 - 4 029

Total 4 029 - 4 029




162

8.2 Analysis of funds utilised to acquire capital assets – 2010/11Voted Funds Aid Assistance Total

R’000 R’000 R’000

Tangible assets 3 320 - 3 320

Machinery & equipment 3 320 - 3 320

Total 3 320 - 3 320

2011/12 2010/11

9. Unauthorised Expenditure Note R’000 R’000

9.1 Reconciliation of unauthorised expenditure


Unauthorised expenditure – in current year - 14 860

Unauthorised expenditure awaiting authorisation / written off 14 860 14 860

9.1.1 Analysis of unauthorised expenditure awaiting authorisation per economic classifi cation

Transfers & subsidies 14 860 14 860

Total 14 860 14 860

9.1.2 Analysis of unauthorised expenditure awaiting authorisation per type

Unauthorised expenditure relating to a transfer that was not budgeted for within the vote

14 860 14 860

Total 14 860 14 860

9.1.3 Details of unauthorised expenditure – current year

No unauthorised expenditure occurred in the current fi nancial year. The 2010/11 amount of R 14 860

million is awaiting condonation from the National Treasury.




163

Details of unauthorised expenditure – prior year

Incident Disciplinary Steps Taken/Criminal Proceedings

2010/11

R’000Transfer payment to Mthonjaneni Municipality in respect of the infrastructure grant paid in the 2010/2011 year which related to the 2008/2009 fi nancial year

Verbal & subsequent written warning 14 860

Total 14 860

Cash and Cash Equivalents 2011/12 2010/11

R’000 R’000

Consolidated paymaster general account 18 947 138 155Disbursements (7 184) (5 846)Cash on hand 46 46Cash with commercial banks (local) 44 3 929Total 11 853 136 284

11. Prepayments and AdvancesTravel & subsistence 98 60Total 98 60

12. Receivables2011/12 2010/11

Note R’000 R’000 R’000 R’000 R’000Less Than One Year

One to Three Years

Older Than Three Years

Total Total

Claims recoverable 12.1 - 12 - 12 10 494

Recoverable expenditure 12.2 - 18 - 18 -

Staff debt 12.3 - 94 - 94 113

Total - 124 - 124 10 607

2011/12 2010/11

Note R’000 R’000

12.1 Claims recoverable 12

National departments 12 1 183Local government – overpayments to municipalities - 9 311Recoverable from third parties - -

Total 12 10 494

The prior year claims recoverable from third parties is restated as a result of new information that emerged in the

current year under review.

National Department of Energy – Vote 29

Notes to the Annual Financial Statementsfor the year ended 31 March 2012

10.


164

2011/12 2010/11

Note R’000 R’000

12.2 Recoverable expenditure 12

Disallowed damages & losses 21 -

Disallowance miscellaneous 8 -

Less: amounts recovered (11) -

Total 18 -

12.3 Staff debt 12

Staff debtors 94 113

Total 94 113

13. Investments

Non-current

Shares & other equity 2 205 2 205

Total 2 205 2 205

Analysis of non-current investments


Non-cash movements - 2 205

Closing balance 2 205 2 205

Investments are recorded at cost in terms of the Accounting Policy. Refer to Annexure 2A for the net asset

value as at 31 March 2012.

14. Loans

This amount is R 1 (one Rand) only. The loan to the Portuguese Government towards the Hydro Electrica

de Cahora Bassa scheme was written down from R 347 million to R 1 (one rand) during the 2003/04

fi nancial year. This amount includes capitalised interest of R 308 million, while the capital amount in

respect of the loan was R 39 million.




165

2011/12 2010/11

Note R’000 R’000

15. Voted Funds to be Surrendered to the Revenue Fund


Transfer from statement of fi nancial performance 26 647 143 282

Add: Unauthorised expenditure for current year - 14 860

Paid during the year (158 142) -

Closing balance 26 647 158 142

16. Departmental Revenue and National Revenue Fund (NRF) Receipts to be Surrendered to the Revenue Fund

Opening balance 49 -

Transfer from Statement of Financial Performance 3 381 3 917

Paid during the year (3 212) (3 868)

Closing balance 218 49

17. Payables – Current

Clearing accounts 17.1 70 42

Other payables 17.2 - -

Total 70 42

17.1 Clearing accounts

Salary: pension fund 3 5

Salary: income tax 67 39

Salary: medical aid - (2)

Total 70 42




166

2011/12 2010/11

Note R’000 R’000

17.2 Other payables

Claims payable to national departments - -

Total - -

The prior year claims payable to National departments is restated as a result of new information that

emerged in the current year under review.

18. Net Cash Flow Available from Operating Activities

Net surplus as per Statement of Financial Performance 30 028 151 871

Add back non-cash/cash movements not deemed operating activities

(150 430) (12 267)

(Increase) Decrease in receivables – current 10 483 (10 607)

(Increase) in prepayments & advances (38) (60)

Increase in payables – current 28 42

Expenditure on capital assets 4 029 3 320

Surrenders to revenue fund (161 354) (3 868)

Surrenders to RDP fund/donor (3 578) (1 094)

Net cash fl ow generated by operating activities (120 402) 139 604

19. Reconciliation of Cash and Cash Equivalents for Cash Flow Purposes

Consolidated paymaster general account 18 947 138 155

Disbursements (7 184) (5 846)

Cash on hand 46 46

Cash with commercial banks (local) 44 3 929

Total 11 853 136 284

The amounts below are not recognised in the annual fi nancial statements and are disclosed to enhance

the usefulness of the annual fi nancial statements.




167

2011/12 2010/11Note R’000 R’000

20. Contingent Liabilities and Contingent Assets

20.1 Contingent liabilities

Liable to Nature

Housing loan guarantee Employee Annexure 3A 60 60

Bank facility guarantee NECSA Annexure 3A 20 000 20 000

Legal costs in dispute ** Annexure 3B 1 944 1 994

Claims against the DoE Annexure 3B 470 470

Other departments (interdepartmental unconfi rmed balances)

Annexure 5 - 4 004

Total 22 474 26 528

**A potential liability exists relating to disputed hours and costs between the DoE and a service provider

regarding the forensic audit into suspected irregularities within the non-grid electrical services environment.

The DoE has made a payment of R 600 725 as full and fi nal settlement of the account. The DoE has

further written to the service provider indicating their fees charged were unjustifi ed and no reply has been

received thus far.

20.2 Contingent assets

Nature of contingent assets

Feasibility studies 5 900 5 900

Total 5 900 5 900

Feasibility studies

The DoE has a contingent asset of R 5.9 million relating to the payment made for feasibility studies on

the land secured for the Independent Power Plant Project (Peaker’s Project). A guarantee in the amount

of R 7.288 million was received from the Ministry of Finance for the land in Avon, KwaZulu-Natal for the

construction of the Independent Power Station (refer to note 27). The DoE has a fi rst option, valued at

R 228 000, to purchase the land (refer to note 31).

National Department of Energy – Vote 29Disclosure Notes to the Annual Financial Statements



168

The DoE will recover the cost incurred on the above project once the preferred bidder fi nalises its fi nancing

on the project in order to reimburse the DoE for all the funds that are due. The preferred bidder will only

be able to receive funding once the following has taken place:

• The National Treasury has fi nalised the approval for the government guarantee; and

• The Department of Public Enterprises has approved Eskom’s participation in the project in terms of

section 54 of the PFMA.

The above process is expected to be concluded before the end of June 2012.

2011/12 2010/11R’000 R’000

21. Commitments

Current expenditure

Approved & contracted 41 176 3 015 048

Approved but not yet contracted - 1 660

Capital expenditure

Approved & contracted 20 61 700

Total 41 196 3 078 408

22. Accruals

Listed by economic classifi cation

30 Days 30+ Days Total Total

Goods & services 6 445 5 000 11 445 318 829

Total 6 445 5 000 11 445 318 829

Listed by programme level

Programme 1: Administration 6 156 19 324

Programme 2: Hydrocarbons and Energy Planning 2 075 207

Programme 3: Electricity, Nuclear and Clean Energy 689 293 997

Programme 4: Associated Service 2 461 5 301

Travelling - all programmes 64 -

Total 11 445 318 829




169

Included in Accruals is an amount of R 2 192 000 for subscriptions payable to the APPA.

2011/12 2010/11

Note R’000 R’000

Confi rmed balances with other departments Annexure 5 6 647 167

Total 6 647 167

23. Employee Benefi ts

Leave entitlement 5 727 4 659

Service bonus (thirteenth cheque) 4 801 3 904

Performance awards 2 813 2 149

Capped leave commitments 2 507 1 929

Total 15 848 12 641

24. Lease Commitments

24.1 Operating leases expenditure

2011/12 Buildings & Other Fixed Structures

Machinery & Equipment

Total

Not later than one year 31 348 1 292 32 640

Later than one year but not later than fi ve years 134 015 2 532 136 547

Later than fi ve years 269 975 - 269 975

Total 435 338 3 824 439 162

2010/11 Buildings & Other Fixed Structures

Machinery & Equipment

Total

Not later than one year 23 290 1 348 24 638

Later than one year but not later than fi ve years - - -

77 830 352 78 182

Total 101 120 1 700 102 820

Included in the lease commitments is a lease that was entered into in the 2011/12 fi nancial year by the




170

Department of Public Works (DPW) on behalf of the DoE for new accommodation totalling 12 738 m2. The

lease agreement will commence from July 2012 for a period of 10 years. The fi nancial implications of this

lease agreement have been fully accounted for in the fi nancial statements.

2011/12 2010/11

Note R’000 R’000

25. Receivables for Departmental Revenue

Sales of goods & services other than capital assets 25.1 257 105

Total 257 105

25.1 Analysis of receivables for departmental revenue

Opening balance 105 -

Less: amounts received (1 618) -

Add: amounts recognised – annual petroleum licences 25 1 770 105

Closing balance 257 105

26. Irregular Expenditure

26.1 Reconciliation of irregular expenditure


Add: irregular expenditure – relating to current year 26.2 22 255 112 363

Add: irregular expenditure – relating to prior year 17 395 -

Less: prior year irregular expenditure investigated & found not to be irregular

(260) -

Less: amounts condoned 26.3 (110 992) (1 013)

Irregular expenditure awaiting condonation 39 748 111 350




171

2011/12 2010/11

Note R’000 R’000

Analysis of awaiting condonation per age classifi cation

Current year 22 255 111 350

Prior year 17 493 -

Total 39 748 111 350

The amounts awaiting condonation were condoned subsequent to the fi nancial year end.

26.2 Details of irregular expenditure – current year

Incident Disciplinary Steps Taken/Criminal Proceedings

2011/12 R’000

Failure to comply with the departmental procurement procedures Matter under investigation 20





Failure to comply with the departmental procurement procedures (see note below)

Matter under investigation 22 090

Total 22 255

This irregular expenditure relates to leasehold property expenditure in respect of offi ce accommodation

at the Trevenna Campus. The lease agreement for the offi ce accommodation at Trevenna Campus was

signed between the Department of Minerals and Energy (DME) and the landlord on 18 April 2008, prior to

the DME being split into two departments; namely the Department of Mineral Resources (DMR) and the

DoE, effective from 1 April 2010.

In terms of the Memorandum of Agreement (MoU) signed between the DMR and the DoE in October

2009, the DMR was to defray all accommodation costs and claim back the DoE portion as incurred by the

DMR. This arrangement was adhered to from October 2009 until the end of April 2010, when the DoE was

directed by the DMR to pay for its portion of the offi ce accommodation directly to the landlord. To avoid

disruption of service delivery and possible eviction from the Trevenna Campus, the DoE, from May 2010,

paid its portion of the rental directly to the landlord whilst such payments should have been paid to the

landlord via the DMR. For the fi nancial years 2010/2011 and 2011/2012, the total amounts paid for offi ce

accommodation rental at the Trevenna Campus are R17 395 000.00 and R22 090 255.00, respectively.




172

26.3 Details of irregular expenditure condoned

Incident Condoned by (condoning authority) 2011/12

R’000

Non-compliance with departmental procedures Accounting Offi cer 110 992

Total 110 992

2011/12 2010/11Note R’000 R’000

27. Related Party Transactions

Year end balances arising from revenue/payments

Receivables from related parties Annexure 4 722 1 254

Payables to related parties Annexure 5 (6 647) (167)

Total (5 925) 1 087

The Department has a related party relationship with all the public sector entities falling within the portfolio

of the Minister of Energy as well as all National Departments.

Other

Guarantees issued – NECSA 20 000 20 000

The DoE issued guarantees to NECSA for a bank facility and environmental rehabilitation liability.

Guarantees received – Ministry of Finance 7 288 7 288

The DoE received a guarantee from the Ministry of Finance for the land in Avon,

KwaZulu-Natal for the construction of the Independent Power Station (refer to note 20.2).




173

28. Key Management Personnel 2011/12 2010/11

Note R’000 R’000

Number of Individuals

Political offi ce bearers 2 3 514 2 405

Offi cials:

Level 15 to 16 7 7 151 7 627

Level 14 17 11 697 6 706

Total 22 362 16 738

29. Provisions

Provision for doubtful debts (staff) 5 6

Provision for environmental rehabilitation liability 29.1 3 703 373 3 567 060

Total 3 703 378 3 567 066

The provision for the environmental rehabilitation liability is inclusive of VAT, and the prior year amount

has been adjusted accordingly.

29.1 Environmental rehabilitation liability

The DoE has a potential liability arising from decontamination and decommissioning of past strategic nuclear facilities as per Section 1 (xii) (a) of the Nuclear Energy Act, 1999 (Act No. 46 of 1999).

In terms of the Nuclear Liabilities Management Plan, which was approved by Cabinet, the liability was estimated at R 1 796 000 000 during the previous assessment in 2004, while the 2010/11 re-assessment estimate amounted to R 3 567 060 000.

The current potential liability arising from decontamination and decommissioning of past strategic nuclear facilities is estimated at R 3 703 373 000. The current estimate of the liability increased by approximately R 120 000 000 (excluding VAT) when compared with the 2010/11 liability estimate. This is made up of the 6% CPIX adjustment of R 187 740 000 minus the decontamination and decommissioning grant of R 68 167 000.

The total cost of carrying out the proposed liability discharge amounts to R 3 703 860 000 over the remaining period. The main aspects of the process are decommissioning, decontamination and waste management (which includes the eventual disposal of the waste).




174

30. Movable Tangible Capital Assets

Movement in movable tangible capital assets per asset register for the year ended 31 March 2012

Opening Balance

Current Year Adjustments to Prior Year

Balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000

Heritage assets - - 228 - 228

Heritage assets - - 228 - 228

Machinery & equipment 20 729 - 4 993 (383) 25 339

Transport assets 1 526 - 1 259 - 2 785

Computer equipment 10 004 (472) 2 117 (366) 11 283

Furniture & offi ce equipment 7 221 472 986 (17) 8 662

Other machinery & equipment 1 978 - 631 - 2 609

Total 20 729 - 5 221 (383) 25 567

30.1 Additions

Additions to movable tangible capital assets per asset register for the year ended 31 March 2012

Cash Non-Cash Total

R’000 R’000 R’000

Heritage assets - 228 228

Heritage assets - 228 228

Machinery and equipment 4 029 964 4 993

Transport assets 1 259 - 1 259

Computer equipment 1 742 375 2 117

Furniture & offi ce equipment 527 459 986

Other machinery & equipment 501 130 631

Total 4 029 1 192 5 221




175

Non-cash additions relate to assets taken over from the DMR and EDIH. Heritage assets are made up of

artwork paintings taken over from EDIH.

30.2 Disposals

Disposals of movable tangible capital assets per asset register for the year ended 31 March 2012

Sold for Cash Transfer Out or Destroyed or

Scrapped

Total Disposals Cash Received Actual

R’000 R’000 R’000 R’000

Machinery and equipment

Transport assets - - - -

Computer equipment - 366 366 -

Furniture & offi ce equipment - 17 17 -

Other machinery & equipment - - - -

Total 383 383 -

30.3 Movement for 2010/11

Movement in movable tangible capital assets per asset register for the year ended 31 March 2011

Opening Balance


R’000 R’000 R’000 R’000

Heritage assets - - - -

Heritage assets - - - -

Machinery and equipment 20 729 - 20 729

Transport assets 1 526 - 1 526

Computer equipment 10 004 - 10 004

Furniture & offi ce equipment 7 221 - 7 221

Other machinery & equipment 1 978 - 1 978

Total 20 729 - 20 729




176

30.4 Minor assets

Minor assets of the DoE as at 31 March 2012

Machinery and Equipment

Total

R’000 R’000

Opening balance 4 302 4 302

Additions 2 159 2 159

Disposals (336) (336)

Total 6 125 6 125


Total

Number of R 1 minor assets 39 39

Number of minor assets at cost 2 190 2 190

Total number of minor assets 2 229 2 229

Minor assets include assets transferred from DMR and EDIH.

30.5 Minor assets

Minor assets of the DoE as at 31 March 2011


Total

R’000 R’000

Additions 4 302 4 302

Total 4 302 4 302


Total

Number of minor assets at cost 2 398 2 398

Total number of minor assets 2 398 2 398

Minor assets include assets transferred from DMR.




177

30.6 Movable assets written off

Movable assets written off for the year ended 31 March 2012


Total

R’000 R’000

Assets written off 54 54

Total 54 54

31. Intangible Capital Assets

Movement in intangible capital assets per asset register for the year ended 31 March 2012

Opening Balance


R’000 R’000 R’000 R’000

Computer software 2 622 - - 2 622

Option to purchase land 228 - - 228

Total 2 850 - - 2 850

Movement in intangible capital assets per asset register for the year ended 31 March 2011

Opening Balance


R’000 R’000 R’000 R’000

Computer software - 2 622 - 2 622

Option to purchase land - 228 - 228

Total - 2 850 - 2 850




178

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00

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00

1 0

00

441

44

% -

Ced

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rg M

unic

ipal

ity

2 8

00

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2 8

00

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00

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00

2 8

00

2 80

0 10

0% -


187

Nam

e of

Mun

icip

ality

GR

AN

T A

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CAT

ION

201

1/12

TRA

NSF

ER 2

011/

12SP

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2011

/12

2010

/11

Divi

sion of

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nue

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Rollo

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Tota

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sion of

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City

of C

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ipal

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25

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100

4

5 00

0

18

530

41%

28

000

City

of J

ohan

nesb

urg

Mun

icip

ality

5

7 98

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20

000

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77

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4

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2 26

1

City

of M

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Mun

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8

719

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2

58

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City

of T

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ane

Mun

icip

ality

4

6 00

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65

000

3

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Dan

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8 0

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Del

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Mun

icip

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3 3

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Dik

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ipal

ity

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97

Dip

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Mun

icip

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1

533

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533

1

533

-

100

1

533

1

415

92%

-

Dra

kens

tein

Mun

icip

ality

2

000

-

- 2

000

2

000

-

100

2

000

2

000

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5 0

00

Ede

n D

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ct M

unic

ipal

ity

4 0

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000

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Edu

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Mun

icip

ality

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polit

tan

Mun

icip

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1

27 0

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147

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Elia

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icip

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-

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Elu

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1

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100

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000

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Em

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Mun

icip

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6

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92)

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3

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Emal

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Cap

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480

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Emal

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9

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970

Em

fule

ni M

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22

256

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22

256

22

256

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22

256

1

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Emna

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Mun

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1

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6

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Mun

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2

60

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260

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60

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260

2

60

100%

540

End

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i Mun

icip

ality

5

000

-

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-

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5

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Eng

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Mun

icip

ality

5

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44

000

44

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44

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-

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188

Nam

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Mun

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GR

AN

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CAT

ION

201

1/12

TRA

NSF

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011/

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2011

/12

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/11

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sion of

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Rollo

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55

500

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100

7

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0

35

107

46%

60

000

Ezi

nqol

wen

i Mun

icip

ality

-

- 2

000

2

000

2

000

-

100

2

000

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8 0

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Gam

agar

a M

unic

ipal

ity

3 5

33

- (1

460

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2

073

-

100

2

073

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2 5

00

Gar

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Mun

icip

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1

000

-

(1 0

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-

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8 0

00

Ga-

Seg

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na M

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ipal

ity

- -

- -

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500

Geo

rge

Mun

icip

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9

349

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(4 0

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5 3

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49

4 52

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% 8

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Gov

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Mun

icip

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5

122

-

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122

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122

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100

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122

1

601

31%

10

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Gre

at K

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ipal

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2 0

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2 0

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Gre

ater

Giy

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ipal

ity

4 0

00

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3 20

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0

Gre

ater

Kok

stad

Mun

icip

ality

-

- -

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-

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1 8

48

Gre

ater

Let

aba

Mun

icip

ality

-

- 3

000

3

000

3

000

-

100

3

000

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Gre

ater

Tub

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Mun

icip

ality

1

9 80

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(10

370)

9 4

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30

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00

9 4

30

2 17

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Gre

ater

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Mun

icip

ality

5

000

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100

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000

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0

Han

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Mun

icip

ality

1

513

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513

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100

1

513

1

299

86%

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Hes

sequ

a M

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ipal

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7 7

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700

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11

300

Hib

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Mun

icip

ality

2

520

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520

2

520

-

100

2

520

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18

000

Hla

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Mun

icip

ality

1

2 00

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- 1

2 00

0 1

2 00

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100

1

2 00

0

2

125

18%

10

000

Imba

baza

ne M

unic

ipal

ity

6 1

50

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6 1

50

6 1

50

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00

6 1

50

-

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Impe

ndle

Mun

icip

ality

5

436

-

450

5

886

5

886

-

100

5

886

- -

1 3

60

Inda

ka M

unic

ipal

ity

7 0

00

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7 0

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7 0

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7 0

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-

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Ingw

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unic

ipal

ity

6 0

00

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000

9

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9

000

-

100

9

000

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5 0

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Jozi

ni M

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ipal

ity

8 0

00

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8 0

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8 0

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8 0

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0


189

Nam

e of

Mun

icip

ality

GR

AN

T A

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CAT

ION

201

1/12

TRA

NSF

ER 2

011/

12SP

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2011

/12

2010

/11

Divi

sion of

Reve

nue

Act

Rollo

vers

Adju

stm

ents

Tota

l Av

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ble

Actu

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Kam

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Mun

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ality

-

- -

- -

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-

- -

2 6

30

Kan

nala

nd M

unic

ipal

ity

4 0

00

- (1

810

) 2

190

2

190

-

100

2

190

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6 3

63

Kga

telo

pele

Mun

icip

ality

-

- -

- -

- -

-

- -

402

Kar

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oogl

and

Mun

icip

ality

2

500

-

- 2

500

2

500

-

100

2

500

2

500

100%

-

Kha

ra H

ais

Mun

icip

ality

1

829

-

- 1

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1

829

-

100

1

829

1

552

85%

310

King

Sab

ata

Dal

indy

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Mun

icip

ality

1

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0 -

7 4

00

17

400

17

400

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00

17

400

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- 8

000

Kny

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Mun

icip

ality

1

300

-

3 0

00

4 3

00

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00

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00

4 3

00

1 44

1 34

% 1

452

Kop

anon

g M

unic

ipal

ity

800

-

- 8

00

800

-

100

8

00

70

9%

963

Kou

ga M

unic

ipal

ity

2 0

00

- 4

500

6

500

6

500

-

100

6

500

8

91

14%

-

Kw

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Mun

icip

ality

2

000

-

- 2

000

2

000

-

100

2

000

- -

-

Kw

a-S

ani M

unic

ipal

ity

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- -

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- -

-

- 7

488

Lang

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g M

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3 0

00

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3 0

00

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00

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2 96

4 99

% 9

0

Lekw

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ipal

ity

1 3

89

- -

1 3

89

1 3

89

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00

1 3

89

309

22

% -

Lepe

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kum

pi M

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ipal

ity

3 0

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3 0

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500

Leph

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ipal

ity

- -

- -

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-

3

281

Lese

di M

unic

ipal

ity

3 0

00

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3 0

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3 0

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3 0

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3 00

0 10

0% -

Lets

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t Mun

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palit

y 5

94

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594

5

94

- 1

00

594

5

12

86%

-

Lukh

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Mun

icip

ality

1

000

-

- 1

000

1

000

-

100

1

000

- -

-

Mad

iben

g M

unic

ipal

ity

9 2

02

- (2

000

) 7

202

7

202

-

100

7

202

7

202

100%

-

Maf

ube

Mun

icip

ality

1

2 10

0 -

- 1

2 10

0 1

2 10

0 -

100

1

2 10

0

2

774

23%

8 0

00

Mak

ana

Mun

icip

ality

-

- -

- -

- -

-

- -

7 4

10

Mak

hado

Mun

icip

ality

3

500

-

- 3

500

3

500

-

100

3

500

- -

9 7

19


190

Nam

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Mun

icip

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GR

AN

T A

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CAT

ION

201

1/12

TRA

NSF

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011/

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2011

/12

2010

/11

Divi

sion of

Reve

nue

Act

Rollo

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Adju

stm

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Tota

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Actu

al

Tran

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Fund

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R’0

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Mak

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Mun

icip

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7

500

-

2 5

00

10

000

10

000

- 1

00

10

000

7 50

0 75

% 5

000

Mal

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ai M

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ipal

ity

3 0

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3 0

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3 0

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3 0

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3 00

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Mal

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Mun

icip

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1

9 60

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20

000

39

600

39

600

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39

600

1

9 60

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Man

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polit

an M

unic

ipal

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25

000

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000

3

3 00

0 3

3 00

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100

3

3 00

0

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18

000

Man

tsop

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810

-

- 8

10

810

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100

8

10

-

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Map

hum

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Mun

icip

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1

0 00

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- 1

0 00

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100

1

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0

1

000

10%

-

Maq

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s M

unic

ipal

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780

-

- 7

80

780

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100

7

80

-

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Mat

atie

le M

unic

ipal

ity

- -

- -

- -

- -

-

- 3

1 00

0

Mat

jabe

ng M

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ipal

ity

2 2

86

- (1

986

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00

300

-

100

3

00

-

- 5

00

Mat

zika

ma

Mun

icip

ality

2

592

-

- 2

592

2

592

-

100

2

592

4

96

19%

2 0

00

Mbh

ashe

Mun

icip

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2

0 68

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- 2

0 68

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100

2

0 68

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10

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Mbi

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Mun

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2

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11

000

11

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Mbo

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18

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220

Mdo

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2 3

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Mer

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8 4

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8 4

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626

7%

18

800

Met

sim

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ipal

ity

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00

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2 0

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2 0

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2 0

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Mhl

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Mun

icip

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1

000

-

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1

000

-

100

1

000

7

18

72%

38

000

Mid

vaal

Mun

icip

ality

2

600

-

- 2

600

2

600

-

100

2

600

1

970

76%

-

Mkh

abat

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Mun

icip

ality

7

000

-

- 7

000

7

000

-

100

7

000

8

20

12%

-

Mkh

ondo

Mun

icip

ality

-

- 8

464

8

464

8

464

-

100

8

464

- -

-

Mnq

uma

Mun

icip

ality

1

0 00

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0 00

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100

1

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0

3

996

40%

-

Mod

imol

le M

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ipal

ity

2 0

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000

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-

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191

Nam

e of

Mun

icip

ality

GR

AN

T A

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CAT

ION

201

1/12

TRA

NSF

ER 2

011/

12SP

ENT

2011

/12

2010

/11

Divi

sion of

Reve

nue

Act

Rollo

vers

Adju

stm

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Tota

l Av

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Actu

al

Tran

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Fund

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Mog

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6 0

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6 0

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6 0

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496

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Mog

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City

Mun

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Moh

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Section 4Human ResourceManagement


208

4.1

SER

VIC

E D

ELIV

ERY

All

depa

rtmen

ts a

re re

quire

d to

dev

elop

a S

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eliv

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Impr

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SD

I) P

lan.

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follo

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refl e

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the

SD

I pla

n as

wel

l as

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th

e im

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Tabl

e 1.

1: P

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amm

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– A

dmin

istr

atio

n: C

orpo

rate

Ser

vice

s B

ranc

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n Se

rvic

eA

ctua

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mer

sPo

tent

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tom

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ual R

isk

Pla

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oE)

pers

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visi

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sonn

el &

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tand

ardi

sed

secu

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er

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th A

frica

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PS

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risk

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mm

unic

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anua

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&

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plet

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ecur

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isk

Man

agem

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lan

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cont

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pla

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e12

mon

ths.

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IA) &

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frica

n P

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e S

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AP

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Ong

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Acc

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Offi

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Acc

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plia

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urs

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Sec

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the

EX

CO

ag

enda

in 2

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11.


209

Mai

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nces

&

crea

te a

cces

s fo

r th

e vu

lner

able

gr

oups

to b

enefi

t fro

m th

e en

ergy

se

ctor

Com

mun

ity

form

atio

ns, m

edia

, no

n-go

vern

men

tal

orga

nisa

tions

, ot

her g

over

nmen

t de

partm

ents

, st

ate-

owne

d en

terp

rises

(S

OE

s), W

omen

in

Oil

& E

nerg

y S

outh

Afri

ca

(WO

ES

A),

Wom

en in

Nuc

lear

S

outh

Afri

ca

(WIN

SA

)

All

desi

gnat

ed

vuln

erab

le g

roup

s re

side

nt in

are

as

in &

aro

und

ener

gy in

dust

ry

oper

atio

ns, i

.e.

wom

en, y

outh

, di

sabl

ed, c

hild

ren

& th

e ag

ed

Qua

ntity

Acc

ordi

ng to

Sou

th A

frica

n de

mog

raph

ics,

as

per p

olic

y.K

waZ

ulu-

Nat

al, N

orth

ern

Cap

e, G

aute

ng, L

impo

po

& M

pum

alan

ga.

Qua

lity

As

per p

olic

y.H

oste

d th

e an

nual

Lea

rner

s Fo

cus

Wee

k.H

eld

info

rmat

ion

sess

ions

& w

orks

hops

.Ta

ke a

Girl

Chi

ld to

Wor

k P

rogr

amm

e.La

unch

of t

he M

en’s

For

um in

the

Ene

rgy

Sec

tor.

Dra

ft a

Yout

h D

evel

opm

ent S

trate

gy.

Tim

eM

arch

201

2.31

Mar

ch 2

012.

Cos

tW

ithin

the

allo

cate

d bu

dget

.Th

e bu

dget

allo

cate

d w

as n

ot s

uffi c

ient

to a

ddre

ss

the

prio

ritie

s of

the

Dire

ctor

ate.

Con

sulta

tion

All

prov

ince

s to

be

reac

hed.

Out

stan

ding

Pro

vinc

es: W

este

rn C

ape,

Eas

tern

C

ape,

Fre

e S

tate

& N

orth

Wes

t.

Acc

ess

Ens

ure

info

rmat

ion

diss

emin

atio

n to

all

vuln

erab

le

grou

ps th

roug

h w

orks

hops

, in

form

atio

n se

ssio

ns &

co

nsul

tatio

ns.

Bus

ines

s op

portu

nitie

s av

aila

ble

in th

e E

nerg

y S

ecto

r.C

aree

r opp

ortu

nitie

s in

the

ener

gy s

ecto

r.Le

arne

rs F

ocus

Wee

k.

Serv

ice

info

rmat

ion

Con

tinue

with

info

rmat

ion

sess

ions

as

per p

lan

of a

ctio

n.W

este

rn C

ape,

Eas

tern

Cap

e, F

ree

Sta

te &

Nor

th

Wes

t.In

form

atio

n se

ssio

ns a

re h

eld

at P

ublic

Par

ticip

atio

n P

rogr

amm

es (P

PP

).In

terp

ret a

ll en

quiri

es s

ent t

o th

e D

oE in

a fa

ir &

tra

nspa

rent

man

ner.

Com

plai

nts

mec

hani

smM

onito

r equ

ity th

roug

h su

rvey

s &

dat

a co

llect

ion.

N/A


210

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Com

mun

icat

ions

Chi

ef D

irect

orat

e

Prov

ide

an

effi c

ient

Ext

erna

l &

Inte

rnal

C

omm

unic

atio

n se

rvic

e to

bot

h th

e D

oE &

the

Min

istry

Sout

h Af

rican

pu

blic

, DoE

St

akeh

olde

rs &

in

tern

al s

taff

Sout

h Af

rican

pu

blic

, DoE

st

akeh

olde

rs &

in

tern

al s

taff

Qua

ntity

Stre

amlin

e al

l DoE

ext

erna

l ev

ents

.

Rev

amp

all s

ervi

ce-re

late

d pu

blic

atio

ns.

Stre

ngth

en in

tern

al

com

mun

icat

ions

.

Emba

rk o

n at

leas

t thr

ee

mar

ketin

g ca

mpa

igns

.H

ost m

ore

cont

ent d

riven

Imbi

zo/

Publ

ic P

artic

ipat

ion

even

ts.

Mai

nten

ance

of c

alen

dar o

f eve

nts.

PPP

for t

he

Min

iste

r, D

eput

y M

inis

ter,

as w

ell a

s St

akeh

olde

r En

gage

men

t opp

ortu

nitie

s fo

r the

Dire

ctor

Gen

eral

.

The

Dra

ft m

arke

ting

stra

tegy

is b

eing

impl

emen

ted.

Qua

ntity

Upd

ated

& d

evel

op n

ew

publ

icat

ions

.

Mor

e st

akeh

olde

r & p

ublic

lia

ison

eve

nts

to b

e ho

sted

.

Opt

imis

e th

e nu

mbe

r an

d fo

rmat

s of

inte

rnal

co

mm

unic

atio

n in

tera

ctio

ns

to e

nhan

ce th

e qu

ality

of

enga

gem

ent;

Inte

rnal

com

mun

icat

ions

eve

nts

held

mor

e fre

quen

tly.

Mar

ketin

g ca

mpa

igns

rolle

d ou

t.

9 ne

w a

nd u

pdat

ed p

ublic

atio

ns a

vaile

d.

1st i

ssue

of t

he in

tern

al n

ewsl

ette

r pub

lishe

d.

3 st

akeh

olde

r eve

nts/

foru

ms

and

20 p

ublic

liai

son

even

ts w

ere

held

.

3 St

aff i

nfor

mat

ion

sess

ions

wer

e he

ld.

Mor

e th

an te

n (1

0) m

arke

ting

cam

paig

ns w

ere

done

, i.e

. via

exh

ibiti

ons,

new

spap

er a

dver

ts;

artic

les

in e

xter

nal m

agaz

ines

, ie.

Saw

ubon

a, B

BQ,

Sust

aina

ble

Ener

gy H

andb

ook.

Tim

eM

arch

201

2.31

Mar

ch 2

012.

Cos

tW

ithin

the

allo

cate

d bu

dget

.Pr

oper

ly p

rocu

red

serv

ices

to

ensu

re v

alue

for m

oney

.

Mor

e pr

oact

ive

invo

lvem

ent i

n th

e bu

dget

ing

proc

ess

to e

nsur

e th

at a

lloca

tions

are

stre

amlin

ed

with

prio

ritie

s.

A co

mpr

ehen

sive

bud

get p

ropo

sal w

as s

ubm

itted

for

the

Chi

ef D

irect

orat

e. H

owev

er, t

he b

udge

t allo

cate

d w

as n

ot s

uffi c

ient

to a

ddre

ss th

e pr

iorit

ies

of th

e D

irect

orat

e.

Proc

ured

des

k-pa

d ca

lend

ars,

pop

-up

bann

ers,

Va

lent

ine’

s D

ay m

ugs,

boo

klet

s (e

.g. c

aree

rs in

nu

clea

r ene

rgy

& bo

okle

ts o

n nu

clea

r, oi

l & g

as

ener

gy),

tear

-dro

p ba

nner

s, s

nack

pac

ks, b

roch

ure

stan

ds, e

lect

rical

app

lianc

es (e

.g. k

ettle

s, ir

ons

& st

oves

) & fi

xed

brok

en b

anne

rs.


211

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Com

mun

icat

ions

Chi

ef D

irect

orat

e

Cos

tC

ondu

cted

47

Publ

ic P

artic

ipat

ion

Prog

ram

me

(PPP

) to

enga

ge c

omm

uniti

es o

n D

oE m

anda

te

and

serv

ice

deliv

ery

issu

es, a

nd S

take

hold

er

Enga

gem

ents

.

Fille

d 10

(1 x

SM

S; 1

x M

MS;

2 A

SD; 6

Offi

cers

) va

canc

ies

in th

e C

hief

Dire

ctor

ate.

Con

sulta

tion

Offi

ces

of th

e D

G &

Min

istry

.En

gage

med

ia p

laye

rs.

Line

func

tion

bran

ches

for

stra

tegi

c co

mm

unic

atio

ns o

n in

tern

al m

atte

rs.

Enga

ge H

uman

Res

ourc

es

(HR

) & C

hief

Fin

anci

al O

ffi ce

r’s

(CFO

’s) o

ffi ce

, esp

ecia

lly th

ose

that

pro

vide

a s

ervi

ce to

inte

rnal

D

oE s

taff.

Mee

tings

hel

d w

eekl

y to

add

ress

com

mun

icat

ion

issu

es.

Com

mun

icat

ion

stra

tegi

es d

evel

oped

for a

ll pu

blic

pa

rtici

patio

n pr

ogra

mm

es o

f bot

h th

e M

inis

ter &

the

Dep

uty

Min

iste

r bet

wee

n Ja

nuar

y &

Mar

ch 2

011.

Con

duct

ed 4

7 Pu

blic

Par

ticip

atio

n Pr

ogra

mm

e (P

PP) t

o en

gage

com

mun

ities

on

DoE

man

date

an

d se

rvic

e de

liver

y is

sues

, and

Sta

keho

lder

en

gage

men

ts.

Staf

f inf

orm

atio

n se

ssio

ns w

ere

held

with

DoE

of

fi cia

ls to

enh

ance

thei

r kno

wle

dge

and

awar

enes

s of

Dep

artm

enta

l pro

gram

mes

suc

h as

the

Empl

oyee

Aw

aren

ess

Prog

ram

me,

the

gove

rnm

ent

Prog

ram

me

of A

ctio

n an

d si

gnifi

canc

e of

nat

iona

l da

ys, i

.e. H

uman

Rig

hts

Day

, Fre

edom

Day

.

Acc

ess

Upd

ate

info

rmat

ion

on a

ll D

oE

serv

ice-

rela

ted

prog

ram

mes

av

aila

ble

on th

e w

ebsi

te

& in

trane

t, qu

arte

rly s

taff

new

slet

ter,

mon

thly

bul

letin

from

th

e M

inis

ter &

mon

thly

mee

tings

w

ith D

eput

y D

irect

or-G

ener

als

(DD

Gs)

.

DoE

web

site

& in

trane

t cre

ated

& la

unch

ed.

Upl

oad

info

rmat

ion

on D

epar

tmen

tal p

rogr

amm

es

on th

e w

ebsi

te a

nd D

epar

tmen

tal e

vent

s,

vaca

ncie

s, te

nder

s.

Dev

elop

ed a

nd d

istri

bute

d in

tern

al n

ewsl

ette

r to

DoE

offi

cial

s to

mak

e th

em a

war

e of

Dep

artm

enta

l ac

tiviti

es.


212

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Com

mun

icat

ions

Chi

ef D

irect

orat

e

Serv

ice

info

rmat

ion

Pro

activ

e lin

e fu

nctio

n su

bmis

sion

of t

heir

plan

s/pr

ogra

mm

es e

ach

year

by

Nov

embe

r.C

ontin

uous

inte

ract

ion

&

cons

ulta

tions

on

the

chan

ging

ne

eds

of li

ne-fu

nctio

n br

anch

es.

Invo

lved

in B

ranc

h su

b-w

orki

ng c

omm

ittee

s to

ad

dres

s th

eir c

omm

unic

atio

n ne

eds,

ie. m

arke

ting

stra

tegi

es, m

edia

pla

ns, b

rand

ing

mat

eria

ls, P

R

exer

cise

s.

Ach

ieve

d

Com

plai

nts

mec

hani

smC

hief

Dire

ctor

ate

Com

mun

icat

ion

resp

onsi

ble

for

Pre

side

ntia

l Hot

line

Enq

uirie

s,

and

Gen

eral

DoE

rece

ived

en

quiri

es.

Med

ia A

naly

sis

Rep

ort

subm

itted

to E

XC

O o

n a

wee

kly

basi

s

Bec

ause

of fi

nan

cial

con

stra

ints

, mar

ketin

g ac

tiviti

es fo

r the

DoE

rem

aine

d lim

ited

to fr

ee m

edia

pu

blic

ity &

exh

ibiti

ons.

All

quer

ies

regi

ster

ed o

n th

e P

resi

dent

ial H

otlin

e E

nqui

ries

are

reso

lved

.

Res

olve

d al

l que

ries

regi

ster

ed o

n in

fo@

ener

gy.g

ov.z

a

Expe

nditu

re M

anag

emen

t

Pay

cre

dito

rs

invo

ice

with

in 3

0 da

ys o

f rec

eipt

of

invo

ice

Ext

erna

l & in

tern

al

stak

ehol

ders

Ext

erna

l & in

tern

al

stak

ehol

ders

Qua

ntity

21 d

ays.

Ord

ers:

1 0

18.

Sun

dry:

441

.

Qua

lity

< 3%

reje

ctio

n du

e to

inco

rrec

tly

load

ed b

ank

deta

ils.

1.81

% re

ject

ions

.

Tim

eB

y M

arch

201

1.Ta

rget

ach

ieve

d on

Sun

dry

paym

ents

.

Cos

tTi

mel

y pa

ymen

ts th

at d

o no

t at

tract

fi na

nce

char

ges.

Rem

uner

atio

n fo

r add

ition

al s

taff

Cre

dito

rs p

aid

with

in tu

rnar

ound

tim

e.O

n ta

rget

.

Con

sulta

tion

Info

rmat

ive:

circ

ular

s, m

emos

, le

tters

, tel

epho

nes

& e

mai

ls.

All

paym

ent s

tubs

dis

tribu

ted

daily

.

Acc

ess

Inte

grat

ed re

gist

ers

on S

:Driv

e.A

cces

s gr

ante

d to

aut

horis

ed o

ffi ci

als.

Serv

ice

info

rmat

ion

Rea

sons

for d

elay

ed p

aym

ent

prov

ided

con

sist

ently

.E

xpen

ditu

re m

anag

emen

t adm

inis

trato

rs tr

aine

d.

Com

plai

nts

mec

hani

smE

stab

lishe

d co

mpl

aint

s ce

ntre

.S

till t

o be

est

ablis

hed

on in

trane

t.


213

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Expe

nditu

re M

anag

emen

t

Rec

onci

le

paym

ents

Ext

erna

l & in

tern

al

stak

ehol

ders

Ext

erna

l & in

tern

al

stak

ehol

ders

Qua

ntity

100%

of p

aym

ents

reco

ncile

d.10

0% o

f pay

men

ts re

conc

iled.

Qua

lity

Pay

men

t of f

raud

ulen

t be

nefi c

iarie

s is

pre

vent

ed.

100%

of p

aym

ents

to fr

audu

lent

ben

efi c

iarie

s ar

e pr

even

ted.

Tim

eW

ithin

a d

ay o

f pay

men

t run

&

ongo

ing.

Dai

ly.

Cos

tFu

nds

trans

ferr

ed to

val

id

bene

fi cia

ries

only.

Rem

uner

atio

n of

ded

icat

ed

offi c

ial t

o im

plem

ent c

ontro

l m

easu

res.

Dai

ly.

On

targ

et.

Con

sulta

tion

Pro

activ

e: d

aily

reco

ncili

atio

n en

able

s an

omal

ies

to b

e pi

cked

up

bef

ore

Ele

ctro

nic

Fund

s Tr

ansf

er (E

FT) i

s ef

fect

ed.

On

targ

et.

Acc

ess

Rec

onci

liatio

n st

atem

ent o

n S

:Driv

e.A

cces

s to

aut

horis

ed o

ffi ci

als.

Serv

ice

info

rmat

ion

Rea

sons

for d

elay

ed p

aym

ent

prov

ided

con

sist

ently

.

Pro

activ

e: d

elay

s ex

plai

ned

imm

edia

tely

on

iden

tifi c

atio

n.

Pol

icy

& p

roce

dure

s, te

mpl

ates

, re

mitt

ance

adv

ice/

paym

ent

stub

s.

Rep

ort t

o N

atio

nal T

reas

ury

(NT)

mon

thly.

Dai

ly.

Pay

men

t pol

icie

s ap

prov

ed.

Com

plai

nts

mec

hani

smE

stab

lishe

d co

mpl

aint

s ce

ntre

.A

ccor

ding

to o

ccur

renc

es.


214

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Expe

nditu

re M

anag

emen

t

Impr

ove

turn

arou

nd ti

me

Ext

erna

l & in

tern

al

stak

ehol

ders

Ext

erna

l & in

tern

al

stak

ehol

ders

Qua

lity

All

proc

esse

s.O

n ta

rget

.

Qua

ntity

Aver

age

turn

arou

nd ti

me

per

mon

th is

exc

eede

d by

not

mor

e th

an 5

%.

0% tu

rnar

ound

tim

e pe

r mon

th is

exc

eede

d.

Tim

eB

y M

arch

201

2.W

orki

ng to

war

ds ta

rget

.

Cos

tIn

crea

sed

prod

uctio

n &

less

er

quer

ies.

Rem

uner

atio

n fo

r add

ition

al

staf

f.

On

targ

et.

With

in b

udge

t.

Con

sulta

tion

Pro

activ

e: w

eekl

y re

view

&

feed

back

ses

sion

s, ro

ad s

how

s &

wor

ksho

ps.

Ann

ually

.

Acc

ess

Inte

grat

ed re

gist

ers

on S

:Driv

e.S

MS

, em

ail,

stan

dard

lette

rs &

te

leph

one.

Acc

ess

gran

ted

to a

utho

rised

offi

cial

s on

S:D

rive.

Serv

ice

info

rmat

ion

Rea

sons

for d

elay

ed re

spon

ses

are

prov

ided

con

sist

ently

.

Stu

bs, r

epor

ts, s

tatis

tics

& S

MS

.

Mon

thly

repo

rts, s

tatis

tics,

in

tegr

ated

repo

rts &

regi

ster

s on

S

:Driv

e.

Adm

inis

trato

rs tr

aine

d on

em

ail s

yste

m o

n O

utlo

ok.

Dai

ly.

Mon

thly.

Com

plai

nts

mec

hani

smP

rom

pt fe

edba

ck to

clie

nts

is

prov

ided

.O

n ta

rget

.


215

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Fina

ncia

l Pla

nnin

g &

Man

agem

ent A

ccou

ntin

g

Pro

cess

cas

h/ch

eque

for D

oE

serv

ices

App

lican

ts

(info

rmat

ion,

pe

trole

um

licen

ses)

deb

tors

App

lican

ts

(info

rmat

ion,

pe

trole

um

licen

ses)

deb

tors

Qua

ntity

Pro

cess

all

mon

ies

rece

ived

.A

ll m

onie

s re

ceiv

ed a

re re

cord

ed, r

econ

cile

d &

de

posi

ted

as p

resc

ribed

. Rec

eipt

dep

osit

cont

rol

acco

unt –

zer

o (a

ll re

ceip

ts th

at s

wee

p in

to th

e H

Q a

ccou

nt fr

om re

gion

al a

ccou

nts

confi

rmed

with

re

gion

al o

ffi ce

s).

Qua

lity

Sys

tem

-gen

erat

ed re

ceip

ts.

All

rece

ipt b

atch

es c

aptu

red

on b

ank

depo

sit.

Tim

eIs

sue

rece

ipt w

ithin

fi ve

min

utes

of

cas

h/ch

eque

rece

ipt.

On

targ

et. R

ecei

pts

for R

2 9

48.0

3 is

sued

by

hand

.

Cos

tM

onth

ly s

alar

y of

sta

ff.O

n ta

rget

. Tot

al re

ceip

ts fo

r 201

1/12

: R

3 3

80 7

13.

Con

sulta

tion

Issu

e re

ceip

t.A

ll re

ceip

ts is

sued

ove

r the

cou

nter

imm

edia

tely.

Acc

ess

Offi

ces

open

dur

ing

wee

kday

s be

twee

n 07

:30

and

16:3

0.C

ashi

er s

ervi

ces

avai

labl

e fro

m 0

7:30

to 1

6:00

.

Serv

ice

info

rmat

ion

Sen

d st

atem

ent o

f bal

ance

s.A

nnua

l fi n

anci

al s

tate

men

ts.

Rev

enue

rece

ived

cla

ssifi

ed &

repo

rted

to th

e N

T on

a m

onth

ly b

asis

.

Com

plai

nts

mec

hani

smP

rovi

de c

lient

feed

back

for

unfa

vour

able

app

licat

ions

.R

efun

ds &

que

ries

follo

wed

-up

regu

larly

. How

ever

, de

lays

are

exp

erie

nced

at t

imes

bec

ause

of d

elay

s in

ver

ifi ca

tion

of b

anki

ng d

etai

ls a

s re

quire

d by

the

NT.


216

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Supp

ly C

hain

Man

agem

ent

Sup

plie

r M

anag

emen

tS

ervi

ce P

rovi

ders

D

oE u

sers

Ser

vice

Pro

vide

rs

DoE

use

rsQ

uant

ityN

o st

anda

rds

set.

Det

ails

of 1

162

ser

vice

pro

vide

rs c

aptu

red.

Qua

lity

Incr

ease

num

ber o

f cre

dibl

e/pr

equa

lifi e

d se

rvic

e pr

ovid

ers

that

are

read

ily a

vaila

ble

per

stra

tegi

c co

mm

odity

.

Scr

eeni

ng &

cap

turin

g pr

oces

s fi n

alis

ed.

Tim

eE

nd o

f Jun

e 20

12.

Wor

king

tow

ards

ach

ievi

ng a

ll pe

rform

ance

targ

ets.

Cos

tE

noug

h su

pplie

rs to

pro

mot

e co

st e

ffect

iven

ess

&

trans

pare

ncy

thro

ugh

quot

e co

mpa

rison

.W

ithin

the

allo

cate

d bu

dget

.

Eno

ugh

supp

liers

ava

ilabl

e to

ens

ure

com

petit

ion

&

fairn

ess.

On

targ

et.

Con

sulta

tion

Com

mod

ities

iden

tifi e

d fro

m

Pro

cure

men

t Pla

ns.

Offi

ce v

isit

& te

leph

onic

con

sulta

tion

is o

ngoi

ng.

Acc

ess

Form

s on

inte

rnet

, int

rane

t &

rece

ptio

n.Av

aila

ble

on In

tern

et a

s &

whe

n ac

tive

proj

ects

ar

ise.

Serv

ice

info

rmat

ion

Use

rs &

ser

vice

pro

vide

rs

treat

ed w

ith re

spec

t (B

atho

Pel

e pr

inci

ples

).A

dver

t pla

ced

in n

ewsp

aper

s,

Tend

er B

ulle

tin &

Inte

rnet

.A

dver

t pla

ced

in n

ewsp

aper

s,

Tend

er B

ulle

tin &

Inte

rnet

.

Cas

hier

ser

vice

s av

aila

ble

from

07:

30 to

16:

00.

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goin

g fe

edba

ck p

rovi

ded

to c

lient

s on

the

stat

us

of o

rder

s an

d pa

ymen

ts v

ia e

mai

l.

Com

plai

nts

mec

hani

smVe

tted

supp

lier a

vaila

ble.

Avai

labl

e &

cap

ture

d.


217

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Supp

ly C

hain

Man

agem

ent

Bid

& C

ontra

ct

Adm

inis

tratio

nS

ervi

ce P

rovi

ders

&

DoE

use

rs, D

oE

man

agem

ent &

NT

Ser

vice

Pro

vide

rs

& D

oE u

sers

, DoE

m

anag

emen

t & N

T

Qua

ntity

No

stan

dard

s se

t.E

ight

bid

s ad

verti

sed

in 2

011/

12.

One

con

tract

aw

arde

d to

a S

ervi

ce P

rovi

der.

Qua

lity

Cor

rect

bid

info

rmat

ion

adve

rtise

d.W

hen

adve

rtisi

ng b

ids,

the

accu

racy

of i

nfor

mat

ion

& c

ompl

ianc

e w

ith th

e re

quire

men

ts o

f the

G

over

nmen

t Prin

ting

Wor

ks is

ens

ured

.

Tim

eS

ix w

eeks

from

bid

clo

sure

.O

n ta

rget

. The

tim

e al

low

ed m

ay b

ecom

e le

ngth

y de

pend

ing

on th

e av

aila

bilit

y of

com

pete

nt

auth

oriti

es to

app

rove

.

Cos

tE

noug

h su

pplie

rs to

pr

omot

e co

st e

ffect

iven

ess

& tr

ansp

aren

cy th

roug

h bi

d co

mpa

rison

.

With

in th

e al

loca

ted

budg

et.

In p

rogr

ess.

Mon

thly

targ

eted

exp

endi

ture

ver

sus

actu

al.

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sulta

tion

Bet

ter c

onsu

ltatio

n th

roug

h B

id

Spe

cifi c

atio

n C

omm

ittee

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e co

mm

ittee

est

ablis

hed

on a

n ad

hoc

bas

is if

co

nsid

ered

nec

essa

ry.

Acc

ess

Bid

adve

rts &

doc

umen

ts a

vaila

ble

on th

e In

tern

et &

Ten

der B

ulle

tin.

New

spap

er a

dver

ts to

be

enco

urag

ed o

n m

ore

tech

nica

l bid

s.

On

targ

et.

The

DoE

adv

ertis

ed in

the

Gov

ernm

ent T

ende

r B

ulle

tin o

nly.

Serv

ice

info

rmat

ion

Use

rs &

ser

vice

pro

vide

rs a

re

treat

ed w

ith re

spec

t (B

atho

Pel

e pr

inci

ples

).

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aw

ard

adve

rtise

d on

the

sam

e ad

vert

mod

e.

Pub

lic o

peni

ng o

f bid

s up

on

requ

ests

.

Bid

Eva

luat

ion

Com

mitt

ee/B

id

Adj

udic

atio

n C

omm

ittee

(BA

C)

Cha

rter m

ade

avai

labl

e to

all

com

mitt

ee m

embe

rs &

use

rs o

n re

ques

t.

Stru

ctur

ed re

porti

ng in

terv

als.

Ann

ual t

rain

ing

of B

AC

mem

bers

co

nduc

ted.

Ong

oing

.

On

targ

et.

Com

plet

ed.


218

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Supp

ly C

hain

Man

agem

ent

Com

plai

nts

mec

hani

smIn

crea

sed

parti

cipa

tion

on

tech

nica

l bid

s.

Incr

ease

d S

mal

l , M

ediu

m a

nd

Mic

ro E

nter

pris

e (S

MM

E) s

pent

on

60%

.

Impl

emen

tatio

n of

Con

tract

M

anag

emen

t Stra

tegy

.

15%

(R 2

2 41

6 30

7.57

) spe

nt o

n B

EE

for

proc

urem

ent o

f goo

ds &

ser

vice

s.

Logi

stic

s M

anag

emen

t: P

rom

pt d

eliv

ery

of G

oods

&

Ser

vice

s

Ser

vice

Pro

vide

rs

& D

oE u

sers

Ser

vice

Pro

vide

rs

& D

oE u

sers

Qua

ntity

No

stan

dard

s se

t.1

060

cred

itors

pai

d to

the

valu

e of

R 1

45 7

05

938.

01.

Qua

lity

Ord

ers

expe

dite

d up

on

plac

emen

t to

ensu

re p

rom

pt

deliv

ery.

Stri

ct a

dher

ence

to th

e tu

rnar

ound

tim

es fo

r del

iver

y of

in

vent

ory

item

s.

767

syst

em o

rder

s ge

nera

ted

to th

e va

lue

of

R 1

87 2

84 3

21.9

1.

Tim

eTh

roug

hout

the

2011

/12

fi nan

cial

yea

r.O

n ta

rget

.

Cos

tIn

crea

sed

prod

uctiv

ity.

With

in a

lloca

ted

budg

et.

Non

e. T

rans

it of

fi ce

need

ed to

pro

vide

ser

vice

ef

fect

ivel

y.O

n ta

rget

. Fur

ther

impr

ovem

ent e

xpec

ted.

Con

sulta

tion

Con

stan

t fol

low

-up

on o

utst

andi

ng

orde

rs.

Wee

kly

follo

w-u

ps o

n ou

tsta

ndin

g or

ders

.

Acc

ess

Cle

arly

defi

ned

con

tact

cen

tres

for u

sers

& s

ervi

ce p

rovi

ders

.C

onta

ct C

entre

est

ablis

hed

& a

vaila

ble.

Serv

ice

info

rmat

ion

Avoi

d qu

erie

s.

Turn

arou

nd ti

mes

pub

lishe

d.In

vent

ory

item

s pu

blis

hed.

Des

crip

tion

on o

rder

s lin

ked

to

quot

atio

n.

Ong

oing

.

On

targ

et.

Adh

ered

to.

Com

plai

nts

mec

hani

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eliv

ery

acco

rdin

g to

agr

eed

lead

tim

e.S

uppl

iers

adh

ered

to d

eliv

ery

times

stip

ulat

ed in

or

ders

.


219

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Info

rmat

ion

Tech

nolo

gy

Net

wor

k O

ptim

isat

ion

Ext

erna

l & In

tern

al

Sta

keho

lder

sE

xter

nal &

Inte

rnal

S

take

hold

ers

Qua

ntity

95%

upt

ime.

Ach

ieve

d W

ide

Are

a N

etw

ork

(WA

N) a

vaila

bilit

y of

98.

5%.

Qua

lity

Ban

dwid

th m

anag

emen

t.B

andw

idth

util

isat

ion

optim

al fo

r 201

1/12

.

Tim

e20

11/1

2 fi n

anci

al y

ear.

2011

/12

fi nan

cial

yea

r.

Cos

t W

ithin

the

allo

cate

d bu

dget

.

Neg

otia

te c

ost r

educ

tion.

Ens

ured

ava

ilabi

lity

of W

AN

& L

ocal

Are

a N

etw

ork

(LA

N) i

n ac

cord

ance

with

Sta

te In

form

atio

n Te

chno

logy

Age

ncy

(SIT

A) t

arge

t of 9

8% p

er m

onth

.

WA

N a

vaila

bilit

y ta

rget

ach

ieve

d.To

tal c

ost:

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000

per

ann

um.

Con

sulta

tion

Liai

se w

ith C

hang

e C

ontro

l &

Web

site

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mitt

ees.

Cha

nge

Con

trol C

omm

ittee

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ed to

eva

luat

e &

in

form

use

rs o

n ou

tcom

e of

requ

este

d ch

ange

.

Acc

ess

24/7

acc

essi

bilit

y.S

yste

m a

cces

sibi

lity

targ

et o

f 95%

ach

ieve

d.

Serv

ice

info

rmat

ion

Adv

ise

on s

tatu

s &

hav

e a

dedi

cate

d re

sour

ce.

Pro

vide

per

form

ance

sta

tistic

s.

Info

rmat

ive

com

mun

iqué

.

Use

rs in

form

ed c

ontin

uous

ly a

bout

una

vaila

bilit

y of

th

e ne

twor

k &

bus

ines

s sy

stem

s.

Ban

dwid

th U

tilis

atio

n R

epor

t & N

etw

ork

Avai

labi

lity

Rep

ort a

vaila

ble

on s

hare

d fo

lder

(S:D

rive)

. The

re

ports

det

ail t

he s

tate

of h

ealth

of W

AN

for a

sp

ecifi

c pe

riod.

Info

rmat

ion

on h

igh-

impa

ct in

cide

nts

that

cou

ld

pote

ntia

lly d

isru

pt th

e av

aila

bilit

y of

bus

ines

s sy

stem

s fo

rwar

ded

to u

sers

.

Hel

p D

esk

info

rmed

use

rs o

n st

atus

of c

alls

.

Cha

nge

Com

mitt

ee in

form

ed c

hang

e or

igin

ator

s on

st

atus

of c

hang

e re

ques

ts.

Com

plai

nts

mec

hani

smE

stab

lish

Ser

vice

Eva

luat

ion

Ana

lysi

s.U

ser s

atis

fact

ion

surv

ey c

reat

ed &

dis

tribu

ted

to a

ll us

ers

thro

ugh

emai

l.


220

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Syst

ems

Dev

elop

men

t & M

aint

enan

ce

Pet

role

um

Pro

duct

s Li

cens

ing

Sys

tem

(PPA

LS)

Ext

erna

l & In

tern

al

Sta

keho

lder

sE

xter

nal &

Inte

rnal

S

take

hold

ers

Qua

ntity

100%

of a

ll lic

ence

type

s ar

e cu

rren

tly is

sued

by

the

syst

em

& m

aint

aine

d at

100

% s

yste

m

avai

labi

lity.

The

need

for t

he re

-eng

inee

ring

of th

e P

PALS

sy

stem

has

ove

rtake

n th

ese

targ

ets.

The

re-

engi

neer

ing

proc

ess

has

been

initi

ated

& e

nhan

ced

syst

em M

odul

es a

re in

the

proc

ess

of d

evel

opm

ent

and

depl

oym

ent.

Qua

lity

Ther

e sh

ould

be

no b

ackl

og o

f an

nual

retu

rns.

Tim

eM

arch

201

2.

Cos

t A

ll pe

trole

um li

cenc

e ty

pes

are

issu

ed fr

om th

e sy

stem

.

With

in th

e al

loca

ted

budg

et.

Con

sulta

tion

Cha

nge

cont

rol m

eetin

gs fo

r en

hanc

emen

ts.

Acc

ess

Elec

troni

c ac

cess

.

Serv

ice

info

rmat

ion

A pa

tch

is in

pla

ce fo

r err

ors

that

ca

nnot

be

done

on

the

syst

em.

Sys

tem

is a

udite

d fro

m ti

me

to ti

me

& A

GS

A M

anag

emen

t R

epor

t iss

ued.

All

petro

leum

lice

nce

type

s,

repo

rts &

sys

tem

que

ries.

Com

plai

nts

mec

hani

smP

atch

bui

lt fo

r cor

rect

ion

of

inco

rrec

t tra

nsac

tion

& a

udit

trail

is a

vaila

ble.

Aud

it tra

il &

cor

rect

ion

of in

corr

ect t

rans

actio

n m

odul

e av

aila

ble

to u

sers

.


221

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Syst

ems

Dev

elop

men

t & M

aint

enan

ce

Doc

umen

t/P

arlia

men

t &

Que

stio

ns

Trac

king

Sys

tem

(M

agic

Sys

tem

s)

Ext

erna

l & In

tern

al

Sta

keho

lder

sE

xter

nal &

Inte

rnal

S

take

hold

ers

Qua

ntity

Two

syst

ems.

Doc

umen

t Tra

ckin

g S

yste

m in

ope

ratio

n

Par

liam

ente

ry Q

uest

ions

Tra

ckin

g S

yste

m is

in p

ilot

phas

e.

Qua

lity

Doc

umen

t & p

arlia

men

tary

qu

estio

ns c

an b

e tra

cked

in re

al

time

& o

ffi ci

als

esca

late

d w

here

ne

cess

ary.

Use

rs a

re a

ble

to g

ener

ate

petro

leum

lice

nce

repo

rts fr

om M

agic

Pet

role

um L

icen

sing

mod

ule.

Tim

eM

arch

201

2.O

n ta

rget

.

Cos

tQ

uerie

s &

repo

rts g

ener

ated

fro

m th

e sy

stem

.

With

in th

e al

loca

ted

budg

et.

Use

r log

fi le

s in

dica

ting

the

date

& ti

me

on &

at

whi

ch u

sers

inte

ract

with

sys

tem

in p

lace

.

Mai

nten

ance

& s

uppo

rt co

sts

nego

tiate

d w

ith

serv

ice

prov

ider

& b

usin

esse

s w

hen

requ

ired.

Con

sulta

tion

Min

istry

, DG

’s O

ffi ce

& a

ll D

DG

s.C

onsu

ltatio

n w

ith u

sers

on

com

plet

e bu

sine

ss &

IC

T re

-eng

inee

ring

of p

etro

leum

lice

nsin

g sy

stem

is

ongo

ing.

Acc

ess

Ele

ctro

nic

acce

ss.

One

hea

d of

fi ce-

base

d us

er u

tilis

ed th

e pe

trole

um

licen

sing

sys

tem

on

Mag

ic p

latfo

rm.

Serv

ice

info

rmat

ion

Enh

ance

men

ts a

re p

roce

ssed

th

roug

h ch

ange

con

trol.

Rep

orts

& q

uerie

s fro

m th

e sy

stem

.

Dat

a &

repo

rts.

Use

rs c

ontin

uous

ly u

pdat

ed o

n st

atus

of r

eque

sts

for c

hang

e or

add

ition

al s

yste

m fu

nctio

ns.

Rep

orts

& q

uerie

s fro

m th

e sy

stem

.

Pet

role

um li

cenc

e fe

es p

aid

annu

ally.

Com

plai

nts

mec

hani

smIm

prov

ed IT

infra

stru

ctur

e &

ad

equa

te re

sour

ces.

Pet

role

um li

cens

ing

serv

er tu

ned

for o

ptim

al

perfo

rman

ce.

WA

N b

andw

idth

to re

gion

al o

ffi ce

s to

be

upgr

aded

as

par

t of r

oll-o

ut o

f VP

N te

chno

logi

es th

roug

hout

th

e D

oE.


222

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Tran

spor

t, Fa

cilit

ies

& R

ecor

ds M

anag

emen

t

App

licat

ions

fo

r acc

ess

to

info

rmat

ion

Ext

erna

l & In

tern

al

Sta

keho

lder

sE

xter

nal &

Inte

rnal

S

take

hold

ers

Qua

lity

70.

20%

of r

eque

sts

wer

e re

ceiv

ed &

pro

cess

ed.

Qua

ntity

File

s op

ened

& d

eliv

ered

to

Dep

uty

Info

rmat

ion

Offi

cers

(D

IO).

13 fi

les

open

ed &

del

iver

ed to

DIO

.

Con

sulta

tion

Liai

se w

ith li

ne fu

nctio

ns &

the

publ

ic.

Req

uest

s ar

e re

ceiv

ed fr

om th

e pu

blic

& li

ne

func

tions

are

con

sulte

d to

ens

ure

that

the

requ

ired

info

rmat

ion

is a

vaila

ble

befo

re th

e fi l

e ca

n be

op

ened

.

Acc

ess

Ele

ctro

nic

acce

ss.

Req

uest

form

is a

vaila

ble

onlin

e fo

r pub

lic to

app

ly.

Cou

rtes

yR

easo

n fo

r del

ay to

be

prov

ided

co

nsis

tent

ly &

regu

larly

.A

ll re

ques

ts w

ith re

ceip

t for

the

fee

paym

ent w

ere

proc

esse

d on

tim

e.

Ope

n &

tr

ansp

aren

cyM

onth

ly re

ports

& s

tatis

tics

to b

e pr

ovid

ed.

Avai

labl

e re

gula

rly.

Info

rmat

ion

Rep

orts

& s

tatis

tics.

Avai

labl

e.

Com

plai

nts

mec

hani

smP

rom

pt fe

edba

ck.

Res

pons

e is

pro

vide

d w

ithin

the

pres

crib

ed p

erio

d.

Valu

e fo

r m

oney

Min

imis

e co

mpl

aint

s fro

m th

e pu

blic

.Av

aila

ble

info

rmat

ion

is p

rovi

ded

with

in a

pre

scrib

ed

perio

d.

Tim

eW

ithin

30

days

.O

n tim

e.

Cos

tW

ithin

the

allo

cate

d bu

dget

.N

o al

loca

ted

budg

et.

Pro

cess

ing

of

corr

espo

nden

ce

(lette

rs) f

rom

the

publ

ic

Ext

erna

l & In

tern

al

Sta

keho

lder

sE

xter

nal &

Inte

rnal

S

take

hold

ers

Qua

ntity

1 00

0.6

000

lette

rs a

re p

roce

ssed

per

yea

r.

Qua

lity

Lette

rs d

istri

bute

d da

ily.

502

lette

rs a

re d

istri

bute

d pe

r yea

r.

Con

sulta

tion

Liai

se w

ith u

sers

& P

ost O

ffi ce

.If

user

s w

ere

expe

ctin

g le

tters

that

wer

e no

t re

ceiv

ed b

y th

e re

gist

ry, t

he re

gist

ry c

onta

cts

the

DoE

Lia

ison

Offi

cer t

o ch

eck

the

lette

r or p

arce

l &

whe

n fo

und,

the

Liai

son

Offi

cer i

nfor

ms

the

Reg

istry

to

col

lect

it.


223

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Tran

spor

t, Fa

cilit

ies

& R

ecor

ds M

anag

emen

t

Acc

ess

Tele

phon

e &

em

ail.

Use

rs p

hone

the

regi

stry

to c

olle

ct th

e m

ail.

Cou

rtes

yR

easo

n fo

r del

ay to

be

prov

ided

re

gula

rly.

Pos

t is

colle

cted

& d

eliv

ered

dai

ly to

the

user

s.

Ope

n &

tr

ansp

aren

cyR

egis

ter m

ail r

egul

arly.

Mai

l is

regi

ster

ed &

del

iver

ed d

aily

to th

e us

ers.

Info

rmat

ion

Pro

vide

sta

tistic

s ac

cord

ing

to

cate

gorie

s.5

804

& 1

96 w

ere

retu

rned

to th

e se

nder

s.

Red

ress

Min

imis

e lo

st m

ail.

Mai

l is

regi

ster

ed u

pon

colle

ctio

n fro

m th

e po

st

offi c

e.

Valu

e fo

r m

oney

Min

imis

e co

mpl

aint

s fro

m th

e us

ers.

Mai

l is

deliv

ered

tim

eous

ly.

Tim

eW

ithin

a d

ay.

Dai

ly.

Cos

tW

ithin

the

allo

cate

d bu

dget

.R

espo

nse

is p

rovi

ded

with

in th

e pr

escr

ibed

per

iod.

Valu

e fo

r m

oney

Min

imis

e co

mpl

aint

s fro

m th

e pu

blic

.Av

aila

ble

info

rmat

ion

is p

rovi

ded

with

in a

pre

scrib

ed

perio

d.

Tim

eW

ithin

30

days

.O

n tim

e.

Cos

tW

ithin

the

allo

cate

d bu

dget

.R

30

000.

00.


224

Tabl

e 1.

2: P

rogr

amm

e 2

– H

ydro

carb

ons

and

Ener

gy P

lann

ing

Bra

nch

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Petr

oleu

m C

ontr

olle

r

Issu

e lic

ence

s fo

r pet

role

um

prod

ucts

Pet

role

um

Man

ufac

turin

g,

Who

lesa

le &

R

etai

l Ind

ustry

.

Pet

role

um

Man

ufac

turin

g,

Who

lesa

le &

R

etai

l Ind

ustry

.

Qua

ntity

Issu

e 1

200

new

lice

nces

for a

ll lic

ence

type

s.Th

e se

t tar

get w

as m

onito

red

diffe

rent

ly in

re

cogn

ition

that

issu

ing

licen

ces

is d

epen

dent

on

timeo

us q

ualit

y in

form

atio

n su

bmitt

ed fo

r ana

lysi

s.

As

a re

sult,

em

phas

is w

as o

n en

surin

g th

at

appl

icat

ions

are

pro

cess

ed w

ithin

the

pres

crib

ed

timef

ram

e. T

he 9

0 da

ys tr

acki

ng p

lan

was

ado

pted

&

ens

ured

that

95%

of a

ll lic

ence

app

licat

ions

with

ad

equa

te in

form

atio

n w

ere

proc

esse

d.

Qua

lity

Impr

oved

pro

duct

ivity

&

empl

oyee

sat

isfa

ctio

n.

Trai

n pe

ople

to a

cqui

re m

ore

qual

itativ

e &

qua

ntita

tive

anal

ysis

ski

lls.

The

fi rst

gro

up o

f em

ploy

ees

atte

nded

the

PAJA

&

Intro

duct

ion

to Q

ualit

y M

anag

emen

t Cou

rse

(ISO

90

01:2

008)

.

Tim

eA

ll ne

w to

indu

stry

lice

nces

is

sued

with

in 6

0 da

ys.

Oth

er li

cenc

es is

sued

with

in 9

0 da

ys.

Ach

ieve

d.

Ach

ieve

d.

Cos

tR

obus

t clie

nt in

terfa

ce &

im

prov

ed tu

rnar

ound

tim

es.

With

in th

e al

loca

ted

budg

et.

Ach

ieve

d.

The

lack

of f

undi

ng fo

r som

e ac

tiviti

es re

sulte

d in

app

roac

hes

at re

gion

al o

ffi ce

s w

ith n

o fu

ndin

g im

plic

atio

ns, e

.g. c

ondu

ctin

g of

in-h

ouse

wor

ksho

ps.

Con

sulta

tion

Roa

d sh

ows,

adv

ertis

emen

ts, &

vi

sual

& a

udio

med

ia.

Ach

ieve

d.


225

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Petr

oleu

m C

ontr

olle

r

Acc

ess

Reg

iona

l rep

rese

ntat

ion.

Pro

visi

on o

f mob

ile s

ervi

ces.

DoE

web

site

.

All

regi

onal

offi

ces

up &

runn

ing

with

full

staf

f co

mpl

emen

t.

Not

yet

ach

ieve

d be

caus

e of

bud

get c

onst

rain

ts.

Web

site

upd

ated

on

a m

onth

ly b

asis

on

licen

ce

appl

icat

ion

stat

us.

Serv

ice

info

rmat

ion

Impl

emen

t reg

iona

l offi

ce

stru

ctur

e w

ith a

hel

p de

sk &

m

ore

user

-frie

ndly

lice

nce

appl

icat

ions

gui

delin

es.

Mor

e m

edia

exp

osur

e th

ough

ad

verts

in n

ewsp

aper

s, ra

dio

&

TV.

Reg

iona

l col

labo

ratio

n w

ith

stak

ehol

ders

.

Pam

phle

ts, w

orks

hops

, se

min

ars

& fl

yers

.

Reg

iona

l stru

ctur

e w

ith h

elp

desk

fully

impl

emen

ted.

Not

don

e be

caus

e of

bud

get c

onst

rain

ts.

Ach

ieve

d, th

ough

with

lim

itatio

ns b

ecau

se o

f lac

k of

fu

ndin

g.

Ach

ieve

d. R

egio

nal o

ffi ce

s co

nduc

ted

petro

leum

lic

ensi

ng &

com

plia

nce

info

rmat

ion

sess

ions

.

Com

plai

nts

mec

hani

smIm

prov

e te

chno

logy

use

d to

sp

eed

up th

e is

suin

g pr

oces

s &

mor

e el

ectro

nic

serv

ices

to

gove

rnm

ent.

PPA

LS II

Pro

ject

cal

led

off.

New

pro

ject

in th

e pr

oces

s of

bei

ng c

once

ptua

lised

.


226

Tabl

e 1.

3: P

rogr

amm

e 3

– El

ectr

icity

, Nuc

lear

and

Cle

an E

nerg

y B

ranc

h

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Inte

grat

ed N

atio

nal E

lect

rifi c

atio

n Pr

ogra

mm

e

Alle

viat

e po

verty

thro

ugh

incr

ease

d ac

cess

to

mod

ern

ener

gy c

arrie

rs

Hou

seho

lds

&

scho

ols

Dep

artm

ents

of

Bas

ic

Edu

catio

n, H

ealth

, C

orpo

rativ

e G

over

nanc

e &

Tr

aditi

onal

Affa

irs

Qua

ntity

Con

nect

150

000

hou

seho

lds

to

the

grid

.

Con

nect

10

000

hous

ehol

ds

off-g

rid.

Fund

the

build

ing

of 1

0 bu

lk

subs

tatio

ns.

141

390

hous

ehol

ds c

onne

cted

to th

e gr

id

(mun

icip

al fi

nanc

ial y

ear e

nds

in J

une

& th

e re

mai

ning

con

nect

ions

will

be

achi

eved

by

then

).

10 0

00 h

ouse

hold

s co

nnec

ted

off-g

rid.

Bui

ldin

g of

sev

en b

ulk

infra

stru

ctur

e pr

ojec

ts

incl

udin

g su

bsta

tions

was

ach

ieve

d.

Qua

lity

Aud

it.Le

ss th

an 1

0% in

stea

d of

30%

of p

roje

cts

wer

e au

dite

d du

e to

fi na

ncia

l con

stra

ints

.

Tim

eE

nd M

arch

201

2.E

nd M

arch

201

2.

Cos

tW

ithin

the

allo

cate

d bu

dget

.68

% s

pent

. Res

t to

be s

pent

at t

he e

nd o

f the

m

unic

ipal

fi na

ncia

l yea

r (Ju

ne 2

012)

.

Con

sulta

tion

IDP

Pro

cess

, Esk

om,

mun

icip

aliti

es, D

epar

tmen

t of

Hum

an S

ettle

men

ts,

Dep

artm

ent o

f Coo

pera

tive

Gov

erna

nce

& T

radi

tiona

l A

ffairs

, & D

epar

tmen

t of B

asic

E

duca

tion.

Con

sulta

tion

is o

ngoi

ng &

is b

eing

ach

ieve

d.

Acc

ess

Em

ail &

tele

phon

e.A

chie

ved.

Serv

ice

info

rmat

ion

Web

site

& w

orks

hops

.11

wor

ksho

ps a

chie

ved

incl

udin

g E

lect

rifi c

atio

n In

daba

. The

re a

re fu

nctio

nal p

rovi

ncia

l & d

istri

ct

ener

gy fo

rum

s. In

form

atio

n st

ill to

be

upda

ted

on

the

DoE

web

site

.

Com

plai

nts

mec

hani

smC

lient

feed

back

& q

uery

es

cala

tion

proc

esse

s.A

chie

ved.


227

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss a

s at

31

Mar

ch 2

012

Inde

pend

ent P

ower

Pro

duce

rs

Faci

litat

e pr

ivat

e se

ctor

par

ticip

atio

n in

th

e E

lect

ricity

Sec

tor

Sou

th A

frica

n pu

blic

& in

dust

ry

play

ers

Sou

th A

frica

n pu

blic

& in

dust

ry

play

ers

Qua

lity

1 00

0 M

W.

The

proj

ect h

as n

ot b

een

com

plet

ed a

s ye

t. W

e ar

e ye

t to

conc

lude

the

Pow

er P

urch

ase

Agr

eem

ent (

PPA

), Im

plem

enta

tion

Agr

eem

ent

(IA) a

nd th

e Tr

ansm

issi

on A

gree

men

t (TA

). W

e ar

e aw

aitin

g ap

prov

al (d

ecis

ion)

from

the

Nat

iona

l Tre

asur

y on

the

issu

ing

of a

gua

rant

ee

for t

he p

roje

ct.

Qua

ntity

Pea

king

pow

er.

Tim

eE

nd M

arch

201

2.

Cos

tB

udge

t spe

nt in

line

with

pr

iorit

ies

as a

lloca

ted.

In th

e pr

evio

us fi

nanc

ial y

ear t

here

wer

e fi n

anci

al c

omm

itmen

ts th

at w

ere

dire

ctly

from

th

e D

epar

tmen

t.

Con

sulta

tion

Nat

iona

l Ene

rgy

Reg

ulat

or o

f S

outh

Afri

ca (N

ER

SA

) & E

skom

.C

onsu

ltatio

n is

an

on-g

oing

con

cern

and

is

bein

g ac

hiev

ed.

Acc

ess

Em

ail,

tele

phon

e &

mee

tings

.A

chie

ved.

Thr

ough

thes

e in

tera

ctio

n an

d pu

blic

atio

ns, i

nfor

mat

ion

is s

hare

d. Q

uerie

s an

d co

ncer

ns a

re fo

llow

ed-u

p on

and

feed

back

gi

ven

on e

mai

l

Serv

ice

info

rmat

ion

Impl

emen

t Bat

ho P

ele

prin

cipl

es.

Mee

tings

& p

ublic

atio

ns.

Info

rmat

ion

is s

hare

d w

ith a

ll ke

y st

akeh

olde

rs v

ia th

e w

ebsi

te

& w

orks

hops

.

Com

plai

nts

mec

hani

smC

lient

feed

back

& q

uery

es

cala

tion

proc

esse

s.

Cle

an E

nerg

y

Pro

vidi

ng fu

ndin

g th

roug

h R

enew

able

E

nerg

y Fi

nanc

e &

Sub

sidy

Offi

ce

(RE

FSO

) to

entre

pren

eurs

&

Bla

ck

Eco

nom

icE

mpo

wer

men

t(B

EE

s) o

rgan

isat

ions

.

Ent

repr

eneu

rs

appl

ying

for

fund

ing

to d

evel

op

& im

plem

ent

rene

wab

le e

nerg

y pr

ojec

ts

Ent

repr

eneu

rs

appl

ying

for

fund

ing

to d

evel

op

& im

plem

ent

rene

wab

le e

nerg

y pr

ojec

ts

Qua

ntity

Five

sub

sidi

sed

proj

ects

.S

ince

the

IPP

prog

ram

me

was

initi

ated

, a

deci

sion

was

mad

e th

at R

EFS

O b

e di

scon

tinue

d to

pre

vent

dou

ble

dipp

ing

by

proj

ect d

evel

oper

s. T

his

was

app

rove

d by

NT.

Qua

lity

Com

mer

cial

via

ble

rene

wab

le

ener

gy p

roje

cts.

Tim

eM

arch

201

2.

Cos

tA

dditi

onal

300

GW

h pe

r ann

um

shou

ld b

e ad

ded

to e

nerg

y m

ix

thro

ugh

RE

FSO

sup

port.

R 1

0 m

illio

n.


228

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Cle

an E

nerg

y

Con

sulta

tion

Inte

nsify

aw

aren

ess

cam

paig

ns.

Wor

ksho

ps a

cros

s th

e co

untry

.S

ee n

ote

on p

age

227.

Acc

ess

Invo

lve

mun

icip

aliti

es &

wor

k w

ith D

oE c

olle

ague

s at

the

regi

ons.

Serv

ice

Info

rmat

ion

Mee

tings

, tel

epho

nica

lly,

wor

ksho

ps &

con

fere

nces

.

Cle

ar a

pplic

atio

n pr

oced

ure

& c

lear

app

eal p

roce

ss fo

r ag

grie

ved

appl

ican

ts.

Pro

ject

info

rmat

ion

diss

emin

atio

n he

lp d

esk.

Com

plai

nts

mec

hani

smC

lient

feed

back

& q

uery

es

cala

tion

proc

esse

s.

Ener

gy E

ffi ci

ency

Reg

ulat

ory

fram

ewor

k fo

r la

rge

scal

e im

plem

enta

tion

& m

onito

ring

of

ener

gy e

ffi ci

ency

The

Sou

th A

frica

n pu

blic

& in

dust

ryTh

e S

outh

Afri

can

publ

ic &

indu

stry

Qua

ntity

Rol

l-out

of o

ne m

illio

n so

lar

wat

er h

eate

rs b

y 20

13.

The

Ene

rgy

Effi

cien

cy fu

nctio

n w

as re

view

ed a

nd

the

appr

oach

with

rega

rd to

thes

e in

itiat

ives

has

be

en re

defi n

ed in

to v

ario

us d

iffer

ent p

rogr

amm

es

and

resc

hedu

led

acco

rdin

gly.

The

targ

ets

set i

n te

rms

of th

is S

ervi

ce D

eliv

ery

Impr

ovem

ent P

lan

are

ther

efor

e no

long

er re

leva

nt.

Qua

lity

A w

ell-d

rafte

d do

cum

ent w

ith

actio

n pl

ans

until

201

5 &

st

rate

gic

dire

ctio

n up

to 2

050.

Tim

eTh

e en

ergy

effi

cien

cy

impr

ovem

ents

in th

e co

untry

w

ill h

ave

to c

ontin

ue &

be

acce

lera

ted

to a

ddre

ss g

loba

l w

arm

ing

& c

limat

e ch

ange

up

to

2050

.


229

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Ener

gy E

ffi ci

ency

Serv

ice

info

rmat

ion

Kee

ping

it v

olun

tary

as

far a

s po

ssib

le b

ut c

omm

enci

ng w

ith

regu

latio

ns o

n ar

eas

whe

re

the

volu

ntar

y ap

proa

ch is

no

t fun

ctio

ning

& im

plem

ent

ince

ntiv

es to

enc

oura

ge

wid

espr

ead

use.

Stra

tegy

impl

emen

tatio

n &

co

ntin

ued

invo

lvem

ent o

f st

akeh

olde

rs.

Pro

vidi

ng m

ore

info

rmat

ion

for e

ach

sect

or s

peci

fi cal

ly

incl

udin

g st

anda

rds,

cod

es

of p

ract

ice,

impl

emen

tatio

n gu

idel

ines

& c

heck

lists

to e

nsur

e th

e im

plem

enta

tion

of e

nerg

y ef

fi cie

ncy

on a

larg

e sc

ale.

See

not

e on

pag

e 22

8.

Com

plai

nts

mec

hani

smP

rovi

de a

ssis

tanc

e by

mea

ns

of lo

w in

tere

st lo

ans

& o

ther

in

cent

ives

for t

he S

MM

Es

to

cont

inue

& tr

aini

ng o

f mor

e op

erat

ors

of e

quip

men

t at

diffe

rent

leve

ls b

y en

surin

g un

it st

anda

rds.


230

Mai

n Se

rvic

eA

ctua

l C

usto

mer

sPo

tent

ial

Cus

tom

ers

Serv

ice

Del

iver

y Fa

cet

Stan

dard

of S

ervi

ce (2

012/

13)

Act

ual A

chie

vem

ents

aga

inst

Sta

ndar

d Pr

ogre

ss

as a

t 31

Mar

ch 2

012

Ener

gy E

ffi ci

ency

Cos

tP

ayba

ck p

erio

ds w

ill c

ontin

ue to

de

crea

se a

s th

e pr

ice

of e

nerg

y is

incr

easi

ng. M

ore

& m

ore

proj

ects

will

bec

ome

fi nan

cial

ly

viab

le w

hich

will

hav

e a

posi

tive

impa

ct o

n th

e ec

onom

y of

the

coun

ty.

The

mon

itorin

g w

ill h

ave

to

cont

inue

up

to 2

050

but t

he

cost

s w

ill s

igni

fi can

tly re

duce

on

ce th

e m

odel

ling

mec

hani

sm

has

been

impl

emen

ted.

It

will

then

onl

y be

the

cost

of

data

gat

herin

g &

per

sonn

el to

an

alys

e th

e da

ta.

See

not

e on

pag

e 22

8.

Con

sulta

tion

Con

tinue

d co

nsul

tatio

n &

est

ablis

hmen

t of a

n in

terg

over

nmen

tal w

orki

ng

grou

p to

ens

ure

the

impl

emen

tatio

n &

coo

rdin

atio

n at

diff

eren

t gov

ernm

ent

depa

rtmen

tal l

evel

s.

Acc

ess

Pro

mot

e &

enc

oura

ge

indi

vidu

als,

com

pani

es,

build

ing

owne

rs, e

tc.,

to u

se

the

avai

labl

e m

echa

nism

s to

det

erm

ine

thei

r car

bon

foot

prin

t bas

ed o

n th

eir e

nerg

y co

nsum

ptio

n &

impl

emen

t en

ergy

effi

cien

cy p

rogr

amm

es

to re

duce

or o

ffset

.


231

4.2

EXPE

ND

ITU

RE

The

follo

win

g ta

bles

sum

mar

ise

fi nal

aud

ited

expe

nditu

re b

y pr

ogra

mm

e (T

able

2.1

) and

by

sala

ry b

ands

(Tab

le 2

.2).

In p

artic

ular

, it p

rovi

des

an in

dica

tion

of th

e am

ount

spe

nt

on p

erso

nnel

cos

ts in

term

s of

the

prog

ram

mes

or s

alar

y ba

nds

with

in th

e D

oE.

Tabl

e 2.

1: P

erso

nnel

cos

ts b

y pr

ogra

mm

e, 2

011/

12

Prog

ram

me

Tota

l Vot

ed

Expe

nditu

re

(R’0

00)

Com

pens

atio

n of

Em

ploy

ees

Expe

nditu

re

(R’0

00)

Trai

ning

Ex

pend

iture

(R

’000

)

Prof

essi

onal

an

d Sp

ecia

l Se

rvic

es

(R’0

00)

Com

pens

atio

n of

Em

ploy

ees

as P

erce

ntag

e of

Tot

al

Expe

nditu

re

Aver

age

Com

pens

atio

n of

Em

ploy

ees:

Cos

t pe

r Em

ploy

ee

(R’0

00)

Empl

oym

ent

Den

: Adm

inis

tratio

n 1

96 2

59

84

491

2 2

75

20

923

4315

256

0

Den

: Ene

rgy

Pol

icy

& P

lann

ing

1 5

45 6

90

33

953

123

6

681

2

6156

0

Den

: Ene

rgy

Reg

ulat

ion

529

268

4

7 79

9 9

9 8

322

9

8456

0

Den

: Nat

iona

l Ele

ctrifi

cat

ion

Pro

gram

me

3 2

64 5

40

14

639

6

- -

2656

0

Den

: Nuc

lear

Ene

rgy

& R

egul

atio

n 6

38 5

05

3 9

55

19

495

1

756

0

Tota

l as

on fi

nanc

ial s

yste

ms

(BA

S)

6 17

4 26

218

4 83

72

522

36 4

213

330

560


232

Tabl

e 2.

2: P

erso

nnel

cos

ts b

y sa

lary

ban

d, 2

011/

12

Sala

ry B

ands

Com

pens

atio

n of

Em

ploy

ees

Cos

t (R

’000

)

Perc

enta

ge o

f Tot

al

Pers

onne

l Cos

t for

D

epar

tmen

t

Aver

age

Com

pens

atio

n C

ost

per E

mpl

oyee

(R)

Tota

l Per

sonn

el C

ost f

or D

epar

tmen

t In

clud

ing

Goo

ds a

nd T

rans

fers

(R

’000

)

Num

ber o

f Em

ploy

ees

Ski

lled

(leve

ls 3

-5)

7 99

84.

213

5 55

918

9 91

859

Hig

hly

skill

ed p

rodu

ctio

n (le

vels

6-8

) 29

265

15.4

212

065

189

918

138

Hig

hly

skill

ed s

uper

visi

on (l

evel

s 9-

12)

82 3

2543

.340

1 58

518

9 91

820

5

Sen

ior m

anag

emen

t (le

vels

13-

16)

48 7

0025

.673

7 87

918

9 91

866

Con

tract

(lev

els

1-2)

2

598

1.4

43 3

0018

9 91

860

Con

tract

(lev

els

3-5)

2

415

1.3

172

500

189

918

14

Con

tract

(lev

els

6-8)

47

00.

215

6 66

718

9 91

83

Con

tract

(lev

els

9-12

) 3

471

1.8

385

667

189

918

9

Con

tract

(lev

els

13-1

6)

6 57

13.

51

095

167

189

918

6

Per

iodi

cal r

emun

erat

ion

228

0.1

76 0

0018

9 91

83

Tota

l18

4 04

196

.932

6 89

318

9 91

856

3

The

follo

win

g ta

bles

pro

vide

a s

umm

ary

per p

rogr

amm

e (T

able

2.3

) and

sal

ary

band

s (T

able

2.4

), of

exp

endi

ture

incu

rred

as

a re

sult

of s

alar

ies,

ove

rtim

e,

hom

e ow

ners

allo

wan

ce a

nd m

edic

al a

ssis

tanc

e. In

eac

h ca

se, t

he ta

ble

prov

ides

an

indi

catio

n of

the

perc

enta

ge o

f the

per

sonn

el b

udge

t tha

t was

use

d fo

r

thes

e ite

ms.


233

Tabl

e 2.

3: S

alar

ies,

ove

rtim

e, h

ome

owne

rs a

llow

ance

and

med

ical

ass

ista

nce

by p

rogr

amm

e, 2

011/

12

Prog

ram

me

Sala

ries

(R’0

00)

Sala

ries

as

Perc

enta

ge

of P

erso

nnel

C

ost

Ove

rtim

e (R

’000

)O

vert

ime

as

Perc

enta

ge

of P

erso

nnel

C

ost

HO

A (R

’000

)H

OA

as

Perc

enta

ge

of P

erso

nnel

C

ost

Med

ical

Ass

. (R

’000

)M

edic

al

Ass

. as

Perc

enta

ge

of P

erso

nnel

C

ost

Tota

l Pe

rson

nel

Cos

t per

Pr

ogra

mm

e (R

’000

)

Den

: Adm

inis

tratio

n 55

939

66.2

1 33

81.

61

919

2.3

2 93

73.

584

491

Den

: Ene

rgy

Pol

icy

& P

lann

ing

22 8

2667

.226

0.1

997

2.9

986

2.9

33 9

53

Den

: Ene

rgy

Reg

ulat

ion

32 9

5168

.918

-1

561

3.3

1 87

43.

947

799

Den

: Nat

iona

l Ele

ctrifi

cat

ion

Pro

gram

me

10 1

8069

.51

-26

91.

846

83.

214

639

Den

: Nuc

lear

Ene

rgy

& R

egul

atio

n 2

672

67.5

120.

320

15.

198

2.5

3 95

5

Tota

l as

on fi

nanc

ial s

yste

ms

(BA

S)

124

568

67.4

1 39

50.

84

947

2.7

6 36

33.

418

4 83

7

Tabl

e 2

.4: S

alar

ies,

ove

rtim

e, h

ome

owne

r s a

llow

ance

and

med

ical

ass

ista

nce

by s

alar

y ba

nd, 2

011/

12

Sala

ry b

ands

Sala

ries

(R’0

00)

Sala

ries

as

Perc

enta

ge

of P

erso

nnel

C

ost

Ove

rtim

e (R

’000

)O

vert

ime

as

Perc

enta

ge

of P

erso

nnel

C

ost

HO

A (R

’000

)H

OA

as

Perc

enta

ge

of P

erso

nnel

C

ost

Med

ical

Ass

. (R

’000

)M

edic

al

Ass

. as

Perc

enta

ge

of P

erso

nnel

C

ost

Tota

l Pe

rson

nel

Cos

t per

Sa

lary

Ban

d (R

’000

)

Ski

lled

(leve

ls 3

-5)

5 26

364

.249

36

474

5.8

606

7.4

8 19

9

Hig

hly

skill

ed p

rodu

ctio

n (le

vels

6-8

) 20

874

70.2

462

1.6

1 08

93.

71

933

6.5

29 7

27

Hig

hly

skill

ed s

uper

visi

on (l

evel

s 9-

12)

62 1

4972

.740

20.

51

938

2.3

2 99

53.

585

545

Sen

ior m

anag

emen

t (le

vels

13-

16)

40 3

7080

.2-

-1

342

2.7

722

1.4

50 3

41

Con

tract

(lev

els

1-2)

2

596

98.3

30.

1-

--

-2

641

Con

tract

(lev

els

3-5)

2

127

86.7

331.

352

2.1

381.

52

452

Con

tract

(lev

els

6-8)

38

981

.4-

-6

1.3

20.

447

8

Con

tract

(lev

els

9-12

) 2

800

78.7

190.

521

0.6

140.

43

559

Con

tract

(lev

els

13-1

6)

5 87

587

.1-

--

--

-6

746

Per

iodi

cal r

emun

erat

ion

--

--

--

--

230

Tota

l14

2 44

375

1 41

20.

74

922

2.6

6 31

03.

318

9 91

8


234

4.3

EMPL

OYM

ENT

AN

D V

AC

AN

CIE

STh

e fo

llow

ing

tabl

es s

umm

aris

e th

e nu

mbe

r of p

osts

on

the

esta

blis

hmen

t, th

e nu

mbe

r of e

mpl

oyee

s, th

e va

canc

y ra

te, a

nd w

heth

er th

ere

are

any

staf

f tha

t are

add

ition

al to

th

e es

tabl

ishm

ent.

This

info

rmat

ion

is p

rese

nted

in te

rms

of th

ree

key

varia

bles

: - p

rogr

amm

e (T

able

3.1

), sa

lary

ban

d (T

able

3.2

) and

crit

ical

occ

upat

ions

(Tab

le 3

.3).

Dep

art-

men

ts h

ave

iden

tifi e

d cr

itica

l occ

upat

ions

that

nee

d to

be

mon

itore

d. T

able

3.3

pro

vide

s es

tabl

ishm

ent a

nd v

acan

cy in

form

atio

n fo

r the

key

crit

ical

occ

upat

ions

of t

he d

epar

t-m

ent.

The

vaca

ncy

rate

refl e

cts

the

perc

enta

ge o

f pos

ts th

at a

re n

ot fi

lled.

Tabl

e 3.

1: E

mpl

oym

ent a

nd v

acan

cies

by

prog

ram

me,

31

Mar

ch 2

012

Prog

ram

me

Num

ber o

f Pos

tsN

umbe

r of P

osts

Fill

edVa

canc

y R

ate

Num

ber o

f Pos

ts

Fille

d A

dditi

onal

to th

e Es

tabl

ishm

ent

Ene

rgy

Pol

icy

& P

lann

ing,

per

man

ent

7770

9.1

8E

nerg

y R

egul

atio

n, p

erm

anen

t 15

713

613

.417

Ene

rgy

Reg

ulat

ion,

tem

pora

ry

11

00

Nat

iona

l Ele

ctrifi

cat

ion

Pro

gram

me,

per

man

ent

4948

215

Nuc

lear

Ene

rgy

& R

egul

atio

n, p

erm

anen

t 22

214.

52

Pro

gram

me

1 A

dmin

, per

man

ent

309

284

8.1

45To

tal

615

560

8.9

87

Tabl

e 3.

2: E

mpl

oym

ent a

nd v

acan

cies

by

sala

ry b

and,

31

Mar

ch 2

012

Sala

ry B

and

Num

ber o

f Pos

tsN

umbe

r of P

osts

Fill

edVa

canc

y R

ate

Num

ber o

f Pos

ts

Fille

d A

dditi

onal

to th

e Es

tabl

ishm

ent

Ski

lled

(leve

ls 3

-5),

perm

anen

t 66

5910

.6-

Hig

hly

skill

ed p

rodu

ctio

n (le

vels

6-8

), pe

rman

ent

156

138

11.5

5

Hig

hly

skill

ed s

uper

visi

on (l

evel

s 9-

12),

perm

anen

t 22

320

48.

51

Hig

hly

skill

ed s

uper

visi

on (l

evel

s 9-

12),

tem

pora

ry

11

--

Sen

ior m

anag

emen

t (le

vels

13-

16),

perm

anen

t 77

6614

.3-

Con

tract

(lev

els

1-2)

, per

man

ent

6060

-60

Con

tract

(lev

els

3-5)

, per

man

ent

1414

-12

Con

tract

(lev

els

6-8)

, per

man

ent

33

-2

Con

tract

(lev

els

9-12

), pe

rman

ent

99

-4

Con

tract

(lev

els

13-1

6), p

erm

anen

t 6

6-

3

Tota

l61

556

08.

987


235

Tabl

e 3.

3: E

mpl

oym

ent a

nd v

acan

cies

by

criti

cal o

ccup

atio

n, 3

1 M

arch

201

2

C

ritic

al O

ccup

atio

nsN

umbe

r of P

osts

Num

ber o

f Pos

ts F

illed

Vaca

ncy

Rat

eN

umbe

r of P

osts

Fi

lled

Add

ition

al to

the

Esta

blis

hmen

t

Adm

inis

trativ

e re

late

d, p

erm

anen

t 58

5112

.16

Clie

nt in

form

atio

n cl

erks

(sw

itchb

oard

, rec

eptio

n &

in

form

atio

n cl

erks

), pe

rman

ent

77

--

Com

mun

icat

ion

& in

form

atio

n re

late

d, p

erm

anen

t 11

918

.2-

Eco

nom

ists

, per

man

ent

22

--

Fina

nce

& e

cono

mic

s re

late

d, p

erm

anen

t 11

11-

-

Fina

ncia

l & re

late

d pr

ofes

sion

als,

per

man

ent

1515

-1

Fina

ncia

l cle

rks

& c

redi

t con

trolle

rs, p

erm

anen

t 11

109.

1-

Food

ser

vice

s ai

ds &

wai

ters

, per

man

ent

11

--

Gen

eral

lega

l adm

inis

tratio

n &

rela

ted

prof

essi

onal

s, p

erm

anen

t 1

1-

-

Hea

d of

dep

artm

ent/c

hief

exe

cutiv

e of

fi cer

, pe

rman

ent

11

--

Hum

an re

sour

ces

& o

rgan

isat

iona

l dev

elop

men

t &

rela

ted

prof

essi

onal

s, p

erm

anen

t 21

204.

8-

Hum

an re

sour

ces

cler

ks, p

erm

anen

t 10

820

-

Hum

an re

sour

ces

rela

ted,

per

man

ent

1111

--

Info

rmat

ion

tech

nolo

gy re

late

d, p

erm

anen

t 7

7-

-

Lang

uage

pra

ctiti

oner

s, in

terp

rete

rs &

oth

er

com

mun

icat

ors,

per

man

ent

22

-2

Lega

l rel

ated

, per

man

ent

3-

100

-

Libr

ary

mai

l & re

late

d cl

erks

, per

man

ent

2221

4.5

12

Logi

stic

al s

uppo

rt pe

rson

nel,

perm

anen

t 6

516

.7-


236

Tabl

e 3.

3: E

mpl

oym

ent a

nd v

acan

cies

by

criti

cal o

ccup

atio

n, 3

1 M

arch

201

2 (c

ontin

ued)

Crit

ical

Occ

upat

ions

Num

ber o

f Pos

tsN

umbe

r of P

osts

Fill

edVa

canc

y R

ate

Num

ber o

f Pos

ts

Fille

d A

dditi

onal

to th

e Es

tabl

ishm

ent

Mat

eria

l-rec

ordi

ng &

tran

spor

t cle

rks,

per

man

ent

1411

21.4

1

Mes

seng

ers,

por

ters

& d

eliv

ery

staf

f, pe

rman

ent

55

--

Nat

ural

sci

ence

s re

late

d, p

erm

anen

t 17

115

68.

81

Oth

er a

dmin

istra

tion

& re

late

d cl

erks

& o

rgan

iser

s,

perm

anen

t 9

9-

-

Oth

er a

dmin

istra

tive

polic

y &

rela

ted

offi c

ers,

pe

rman

ent

11

--

Oth

er in

form

atio

n te

chno

logy

per

sonn

el, p

erm

anen

t 7

7-

-

Oth

er o

ccup

atio

ns, p

erm

anen

t 2

2-

-

Ris

k m

anag

emen

t & s

ecur

ity s

ervi

ces,

per

man

ent

99

--

Inte

rns

6060

-60

Sec

reta

ries

& o

ther

key

boar

d-op

erat

ing

cler

ks,

perm

anen

t 50

4216

1

Sec

urity

offi

cers

, per

man

ent

1919

--

Sen

ior m

anag

ers,

per

man

ent

6356

11.1

3

Sen

ior m

anag

ers,

tem

pora

ry

11

--

Trad

e/in

dust

ry a

dvis

ers

& o

ther

rela

ted

prof

essi

onal

s, p

erm

anen

t 4

-10

0-

Tota

l61

556

08.

987

The

info

rmat

ion

in e

ach

case

refl e

cts

the

situ

atio

n as

at 3

1 M

arch

201

2. F

or a

n in

dica

tion

of c

hang

es in

sta

ffi ng

pat

tern

s ov

er th

e ye

ar u

nder

revi

ew, p

leas

e re

fer t

o S

ectio

n 4.

5 E

mpl

oym

ent C

hang

es, o

f thi

s re

port.


237

4.4

JOB

EVA

LUAT

ION

The

Pub

lic S

ervi

ce R

egul

atio

ns, 1

999

intro

duce

d jo

b ev

alua

tion

as a

way

of e

nsur

ing

that

wor

k of

equ

al v

alue

is re

mun

erat

ed e

qual

ly. W

ithin

a n

atio

nally

det

erm

ined

fram

ewor

k,

exec

utin

g au

thor

ities

may

eva

luat

e or

re-e

valu

ate

any

job

in h

is o

r her

org

anis

atio

n. In

term

s of

the

Reg

ulat

ions

all

vaca

ncie

s on

sal

ary

leve

ls 9

and

hig

her m

ust b

e ev

alua

ted

befo

re th

ey a

re fi

lled.

Thi

s w

as c

ompl

emen

ted

by a

dec

isio

n by

the

Min

iste

r of t

he P

ublic

Ser

vice

and

Adm

inis

tratio

n th

at a

ll S

MS

jobs

mus

t be

eval

uate

d be

fore

31

Dec

embe

r 20

02.

The

follo

win

g ta

ble

(Tab

le 4

.1) s

umm

aris

es th

e nu

mbe

r of j

obs

that

wer

e ev

alua

ted

durin

g th

e ye

ar u

nder

revi

ew. T

he ta

ble

also

pro

vide

s st

atis

tics

on th

e nu

mbe

r of p

osts

that

w

ere

upgr

aded

or d

owng

rade

d.

Tabl

e 4.

1: J

ob e

valu

atio

n, 1

Apr

il 20

11 to

31

Mar

ch 2

012

The

follo

win

g ta

ble

prov

ides

a s

umm

ary

of th

e nu

mbe

r of

em

ploy

ees

who

se s

alar

y po

sitio

ns w

ere

upgr

aded

due

to th

eir

post

s be

ing

upgr

aded

. The

num

ber

of e

mpl

oyee

s m

ight

diff

er fr

om th

e nu

mbe

r of p

osts

upg

rade

d si

nce

not a

ll em

ploy

ees

are

auto

mat

ical

ly a

bsor

bed

into

the

new

pos

ts a

nd s

ome

of th

e po

sts

upgr

aded

cou

ld a

lso

be v

acan

t.

Sala

ry B

and

Num

ber o

f Po

sts

Num

ber o

f Job

s Ev

alua

ted

Perc

enta

ge o

f Po

sts

Eval

uate

dN

umbe

r of

Post

s U

pgra

ded

Perc

enta

ge o

f U

pgra

ded

Post

s Ev

alua

ted

Num

ber

of P

osts

D

owng

rade

d

Perc

enta

ge o

f D

owng

rade

d Po

sts

Eval

uate

dLo

wer

ski

lled

(leve

ls 1

-2)

--

--

--

-

Con

tract

(le

vels

1-2

) 60

--

--

--

Con

tract

(le

vels

3-5

) 14

17.

1-

--

-

Con

tract

(le

vels

6-8

) 3

--

--

--

Con

tract

(le

vels

9-1

2)

9-

--

--

-

Con

tract

(ban

d A

) 5

--

--

--

Con

tract

(ban

d B

) 1

--

--

--

Ski

lled

(leve

ls 3

-5)

665

7.6

--

--

Hig

hly

skill

ed p

rodu

ctio

n (le

vels

6-8

) 15

64

2.6

--

--

Hig

hly

skill

ed

supe

rvis

ion

(leve

ls 9

-12)

22

421

9.4

14.

8-

-

Sen

ior M

anag

emen

t S

ervi

ce (b

and

A )

559

16.4

--

--

Sen

ior M

anag

emen

t S

ervi

ce (b

and

B)

141

7.1

--

--

Sen

ior M

anag

emen

t S

ervi

ce (b

and

C)

54

80-

--

-

Sen

ior M

anag

emen

t S

ervi

ce (b

and

D)

3-

--

--

-

Tota

l61

545

7.3

12.

2-

-


238

Tabl

e 4.

2: P

rofi l

e of

em

ploy

ees

who

se s

alar

y po

sitio

ns w

ere

upgr

aded

due

to th

eir p

osts

bei

ng u

pgra

ded,

1 A

pril

2011

to

31 M

arch

201

2

The

follo

win

g ta

ble

sum

mar

ises

the

num

ber o

f cas

es w

here

rem

uner

atio

n le

vels

exc

eede

d th

e gr

ade

dete

rmin

ed b

y jo

b ev

alua

tion.

Rea

sons

for t

he d

evia

tion

are

prov

ided

in

each

cas

e.

Ben

efi c

iarie

sA

fric

anA

sian

Col

oure

dW

hite

Tota

l

Fem

ale

5-

-1

6

Mal

e 4

--

-4

Tota

l 9

--

110

Em

ploy

ees

with

a d

isab

ility

-

--

--

Tabl

e 4.

3: E

mpl

oyee

s w

hose

sal

ary

leve

l exc

eed

the

grad

e de

term

ined

by

job

eval

uatio

n, 1

Apr

il to

31

Mar

ch 2

012

(in

term

s of

PSR

1.V

.C.3

)

Occ

upat

ion

Num

ber o

f Em

ploy

ees

Job

Eval

uatio

n Le

vel

Rem

uner

atio

n Le

vel

Rea

son

for D

evia

tion

No.

of E

mpl

oyee

s in

D

ept

HR

rela

ted

18

8R

eten

tion

1

Ris

k m

anag

emen

t1

79

Ret

entio

n1

Tota

l 2

Per

cent

age

of to

tal e

mpl

oym

ent

0.4

56

0

Tabl

e 4.

4: P

rofi l

e of

em

ploy

ees

who

se s

alar

y le

vel e

xcee

ded

the

grad

e de

term

ined

by

job

eval

uatio

n, 1

Apr

il 20

11 to

31

Mar

ch 2

012

(in te

rms

of P

SR 1

.V.C

.3)

Tabl

e 4.

4 su

mm

aris

es th

e be

nefi c

iarie

s of

the

abov

e in

term

s of

race

, gen

der,

and

disa

bilit

y.

Ben

efi c

iarie

sA

fric

anA

sian

Col

oure

dW

hite

Tota

l

Fem

ale

--

--

-

Mal

e 2

--

-2

Tota

l 2

--

-2

Em

ploy

ees

with

a d

isab

ility

-

--

--

* R

egul

atio

n V

C.3

of C

hapt

er 1

of t

he P

ublic

Ser

vice

Reg

ulat

ions

, 200

1.


239

4.5

EMPL

OYM

ENT

CH

AN

GES

This

sec

tion

prov

ides

info

rmat

ion

on c

hang

es in

em

ploy

men

t ove

r the

fi na

ncia

l yea

r.

Turn

over

rate

s pr

ovid

e an

indi

catio

n of

tren

ds in

the

empl

oym

ent p

rofi l

e of

the

depa

rtmen

t. Th

e fo

llow

ing

tabl

es p

rovi

de a

sum

mar

y of

turn

over

rate

s by

sal

ary

band

(Tab

le 5

.1)

and

by c

ritic

al o

ccup

atio

ns (T

able

5.2

). (T

hese

“crit

ical

occ

upat

ions

” sho

uld

be th

e sa

me

as th

ose

liste

d in

Tab

le 3

.3).

Tabl

e 5.

1: A

nnua

l tur

nove

r rat

es b

y sa

lary

ban

d fo

r the

per

iod

1 A

pril

2011

to 3

1 M

arch

201

2

Sala

ry B

and

Empl

oym

ent a

t B

egin

ning

of P

erio

d (A

pril

2011

)

App

oint

men

tsTe

rmin

atio

nsTu

rnov

er R

ate

Ski

lled

(leve

ls 3

-5),

perm

anen

t 58

11-

-H

ighl

y sk

illed

pro

duct

ion

(leve

ls 6

-8),

perm

anen

t 12

118

32.

5H

ighl

y sk

illed

sup

ervi

sion

(lev

els

9-12

), pe

rman

ent

192

119

4.7

Hig

hly

skill

ed s

uper

visi

on (l

evel

s 9-

12),

tem

pora

ry

1-

--

Sen

ior m

anag

emen

t ser

vice

(ban

d A

), pe

rman

ent

383

25.

3S

enio

r man

agem

ent s

ervi

ce (b

and

A),

tem

pora

ry

-1

--

Sen

ior m

anag

emen

t ser

vice

(ban

d B

), pe

rman

ent

92

111

.1S

enio

r man

agem

ent s

ervi

ce (b

and

C),

perm

anen

t 4

--

-S

enio

r man

agem

ent s

ervi

ce (b

and

D),

perm

anen

t 3

--

-Su

btot

al42

646

153.

5Sa

lary

Ban

dC

ontr

act E

mpl

oym

ent

at B

egin

ning

of P

erio

d (A

pril

2011

)

App

oint

men

tsTe

rmin

atio

nsTu

rnov

er R

ate

Con

tract

(lev

els

1-2

incl

usiv

e of

inte

rns)

276

2010

00C

ontra

ct (l

evel

s 3-

5 in

clus

ive

of in

tern

s)55

1750

90.9

Con

tract

(lev

els

6-8)

, per

man

ent

24

210

0C

ontra

ct (l

evel

s 9-

12),

perm

anen

t 7

42

28.6

Con

tract

(B &

A),

perm

anen

t 2

43

150

Con

tract

(B &

B),

perm

anen

t 1

11

100

Con

tract

(B &

C),

perm

anen

t 1

-1

100

Con

trac

t (B

& D

), pe

rman

ent

1-

110

0Su

bota

l71

106

8011

2.7

Tota

l49

715

295

19.1

Tran

sfer

s (n

ot in

clud

ed a

bove

)Tr

ansf

ers

to th

e D

oETr

ansf

ers

from

the

DoE

Tota

l em

ploy

men

t39

24


240

Tabl

e 5.

2: A

nnua

l tur

nove

r rat

es b

y cr

itica

l occ

upat

ion

for t

he p

erio

d 1

Apr

il 20

11 to

31

Mar

ch 2

012

Occ

upat

ion

Empl

oym

ent a

t Beg

inni

ng o

f Pe

riod

(Apr

il 20

11)

App

oint

men

tsTe

rmin

atio

nsTu

rnov

er R

ate

Adm

inis

trativ

e re

late

d, p

erm

anen

t 47

85

10.6

Clie

nt in

form

atio

n cl

erks

(sw

itchb

oard

, rec

eptio

n &

in

form

atio

n cl

erks

), pe

rman

ent

44

--

Com

mun

icat

ion

& in

form

atio

n re

late

d, p

erm

anen

t 7

41

14.3

Eco

nom

ists

, per

man

ent

-1

--

Fina

nce

& e

cono

mic

s re

late

d, p

erm

anen

t 3

71

33.3

Fina

ncia

l & re

late

d pr

ofes

sion

als,

per

man

ent

122

--

Fina

ncia

l cle

rks

& c

redi

t con

trolle

rs, p

erm

anen

t 12

1-

-

Food

ser

vice

s ai

ds &

wai

ters

, per

man

ent

14

330

0

Gen

eral

lega

l adm

inis

tratio

n &

rela

ted

prof

essi

onal

s,

perm

anen

t 1

--

-

Hea

d of

dep

artm

ent/c

hief

exe

cutiv

e of

fi cer

, per

man

ent

1-

--

Hum

an re

sour

ces

& o

rgan

isat

iona

l dev

elop

men

t & re

late

d pr

ofes

sion

als,

per

man

ent

19-

315

.8

Hum

an re

sour

ces

& o

rgan

isat

iona

l dev

elop

men

t & re

late

d pr

ofes

sion

als,

tem

pora

ry

1-

--

Hum

an re

sour

ces

cler

ks, p

erm

anen

t 9

1-

-

Hum

an re

sour

ces

rela

ted,

per

man

ent

62

--

Info

rmat

ion

tech

nolo

gy re

late

d, p

erm

anen

t 7

--

-

Lang

uage

pra

ctiti

oner

s, in

terp

rete

rs &

oth

er

com

mun

icat

ors,

per

man

ent

2-

--

Lega

l rel

ated

, per

man

ent

1-

--

Libr

ary

mai

l & re

late

d cl

erks

, per

man

ent

814

112

.5

Logi

stic

al s

uppo

rt pe

rson

nel,

perm

anen

t 6

--

-

Mat

eria

l-rec

ordi

ng &

tran

spor

t cle

rks,

per

man

ent

101

110


241

Occ

upat

ion

Empl

oym

ent a

t Beg

inni

ng o

f Pe

riod

(Apr

il 20

11)

App

oint

men

tsTe

rmin

atio

nsTu

rnov

er R

ate

Mes

seng

ers,

por

ters

& d

eliv

ery

staf

f, pe

rman

ent

32

--

Nat

ural

sci

ence

s re

late

d, p

erm

anen

t 15

68

63.

8

Oth

er a

dmin

istra

tion

& re

late

d cl

erks

& o

rgan

iser

s,

perm

anen

t 9

--

-

Oth

er a

dmin

istra

tive

polic

y &

rela

ted

offi c

ers,

per

man

ent

1-

--

Oth

er in

form

atio

n te

chno

logy

per

sonn

el, p

erm

anen

t 7

--

-

Oth

er o

ccup

atio

ns, p

erm

anen

t 2

--

-

Ris

k m

anag

emen

t & s

ecur

ity s

ervi

ces,

per

man

ent

51

--

Inte

rns

5376

6412

0.8

Sec

reta

ries

& o

ther

key

boar

d-op

erat

ing

cler

ks, p

erm

anen

t 37

52

5.4

Sec

urity

offi

cers

, per

man

ent

192

15.

3

Sen

ior m

anag

ers,

per

man

ent

478

714

.9

Sen

ior m

anag

ers,

tem

pora

ry

-1

--

Soc

ial s

cien

ces

rela

ted,

per

man

ent

1-

--

Tota

l49

715

295

19.1

Tabl

e 5.

3: R

easo

ns w

hy s

taff

is le

avin

g th

e D

oETa

ble

5.3

iden

tifi e

s th

e m

ajor

reas

ons

why

sta

ff le

ft th

e de

partm

ent.

Term

inat

ion

Type

Num

ber

Perc

enta

ge o

f Tot

al

Res

igna

tions

Perc

enta

ge o

f Tot

al

Empl

oym

ent

Tota

lTo

tal E

mpl

oy-

men

t

Dea

th, p

erm

anen

t 2

2.1

0.4

9549

7

Res

igna

tion,

per

man

ent

1818

.93.

695

497

Exp

iry o

f con

tract

, per

man

ent

7477

.914

.995

497

Dis

mis

sal:

mis

cond

uct,

perm

anen

t 1

1.1

0.2

9549

7

Tota

l95

100

19.1

9549

7

Res

igna

tions

as

Perc

enta

ge o

f Em

ploy

men

t

19.1


242

Tabl

e 5.

4: G

rant

ing

of e

mpl

oyee

initi

ated

sev

eran

ce p

acka

ges

Cat

egor

yN

umbe

r of A

pplic

atio

ns

Rec

eive

dN

umbe

r of A

pplic

atio

ns

Ref

erre

d to

the

MPS

AN

umbe

r of A

pplic

atio

ns

Supp

orte

d by

MPS

AN

umbe

r of P

acka

ges

App

rove

d by

Dep

artm

ent

Tota

l -

--

-

Tabl

e 5.

5: P

rom

otio

ns b

y cr

itica

l occ

upat

ion

Occ

upat

ion

Empl

oym

ent a

t B

egin

ning

of P

erio

d (A

pril

2011

)

Prom

otio

ns to

an

othe

r Sal

ary

Leve

lSa

lary

Lev

el P

rom

otio

ns

as a

Per

cent

age

of

Empl

oym

ent

Prog

ress

ions

to a

noth

er

Not

ch w

ithin

Sal

ary

Leve

l

Not

ch P

rogr

essi

ons

as a

Per

cent

age

of

Empl

oym

ent

Adm

inis

trativ

e re

late

d 47

714

.920

42.6

Clie

nt in

form

atio

n cl

erks

(sw

itchb

oard

, re

cept

ion

& in

form

atio

n cl

erks

) 4

--

125

Com

mun

icat

ion

& in

form

atio

n re

late

d 7

457

.11

14.3

Eco

nom

ists

-

2-

--

Fina

nce

& e

cono

mic

s re

late

d 3

133

.32

66.7

Fina

ncia

l & re

late

d pr

ofes

sion

als

121

8.3

650

Fina

ncia

l cle

rks

& c

redi

t con

trolle

rs

12-

-5

41.7

Food

ser

vice

s ai

ds &

wai

ters

1

--

--

Gen

eral

lega

l adm

inis

tratio

n &

rela

ted

prof

essi

onal

s 1

--

--

Hea

d of

dep

artm

ent/c

hief

exe

cutiv

e of

fi cer

1

--

--

Hum

an re

sour

ces

& o

rgan

isat

iona

l de

velo

pmen

t & re

late

d pr

ofes

sion

als

206

309

45

Hum

an re

sour

ces

cler

ks

92

22.2

--

Hum

an re

sour

ces

rela

ted

65

83.3

116

.7

Info

rmat

ion

tech

nolo

gy re

late

d 7

--

114

.3

Lang

uage

pra

ctiti

oner

s, in

terp

rete

rs &

ot

her c

omm

unic

ator

s2

--

210

0

Lega

l rel

ated

1

--

110

0


243

Occ

upat

ion

Empl

oym

ent a

t B

egin

ning

of P

erio

d (A

pril

2011

)

Prom

otio

ns to

an

othe

r Sal

ary

Leve

lSa

lary

Lev

el P

rom

otio

ns

as a

Per

cent

age

of

Empl

oym

ent

Prog

ress

ions

to a

noth

er

Not

ch w

ithin

Sal

ary

Leve

l

Not

ch P

rogr

essi

ons

as a

Per

cent

age

of

Empl

oym

ent

Libr

ary

mai

l & re

late

d cl

erks

8

225

225

Logi

stic

al s

uppo

rt pe

rson

nel

6-

-5

83.3

Mat

eria

l-rec

ordi

ng &

tran

spor

t cle

rks

101

106

60

Mes

seng

ers,

por

ters

& d

eliv

ery

staf

f3

--

266

.7

Nat

ural

sci

ence

s re

late

d 15

69

5.8

109

69.9

Oth

er a

dmin

istra

tion

& re

late

d cl

erks

&

org

anis

ers

91

11.1

555

.6

Oth

er a

dmin

istra

tive

polic

y &

rela

ted

offi c

ers

1-

-1

100

Oth

er in

form

atio

n te

chno

logy

pe

rson

nel

7-

-3

42.9

Oth

er o

ccup

atio

ns

2-

--

-

Ris

k m

anag

emen

t & s

ecur

ity s

ervi

ces

55

100

510

0

Inte

rns

53-

--

-

Sec

reta

ries

& o

ther

key

boar

d-op

erat

ing

cler

ks

379

24.3

1437

.8

Sec

urity

offi

cers

19

210

.52

10.5

Sen

ior m

anag

ers

477

14.9

12.

1

Soc

ial s

cien

ces

rela

ted

11

100

--

Tota

l49

765

13.1

204

41

Tabl

e 5.

5: P

rom

otio

ns b

y cr

itica

l occ

upat

ion

(con

tinue

d)


244

Tabl

e 5.

6: P

rom

otio

ns b

y sa

lary

ban

d

Sala

ry B

and

Empl

oym

ent a

t B

egin

ning

of

Perio

d (A

pril

2011

)

Prom

otio

ns to

an

othe

r Sal

ary

Leve

lSa

lary

Lev

el P

rom

otio

ns

as a

Per

cent

age

of

Empl

oym

ent

Prog

ress

ions

to

anot

her N

otch

with

in

Sala

ry L

evel

Not

ch P

rogr

essi

ons

as a

Per

cent

age

of

Empl

oym

ent

Ski

lled

(leve

ls 3

-5).

perm

anen

t 58

915

.511

19

Hig

hly

skill

ed p

rodu

ctio

n (le

vels

6-8

). pe

rman

ent

121

2419

.868

56.2

Hig

hly

skill

ed s

uper

visi

on (l

evel

s 9-

12).

perm

anen

t 19

221

10.9

123

64.1

Hig

hly

skill

ed s

uper

visi

on (l

evel

s 9-

12).

tem

pora

ry

1-

--

-

Sen

ior m

anag

emen

t (le

vels

13-

16).

perm

anen

t 54

1120

.41

1.9

Con

tract

(lev

els

1-2)

. per

man

ent

2-

--

-

Con

tract

(lev

els

3-5)

. per

man

ent

55-

--

-

Con

tract

(lev

els

6-8)

. per

man

ent

2-

--

-

Con

tract

(lev

els

9-12

). pe

rman

ent

7-

-1

14.3

Con

tract

(lev

els

13-1

6). p

erm

anen

t 5

--

--

Tota

l49

765

13.1

204

41

4.6

EMPL

OYM

ENT

EQU

ITY

The

tabl

es in

this

sec

tion

are

base

d on

the

form

ats

pres

crib

ed b

y th

e E

mpl

oym

ent E

quity

Act

, 55

of 1

998.

Tabl

e 6.

1: T

otal

num

ber o

f em

ploy

ees

(incl

udin

g em

ploy

ees

with

dis

abili

ties)

per

occ

upat

iona

l cat

egor

y (S

ASC

O) a

s on

31

Mar

ch 2

012

Occ

upat

iona

l Cat

egor

ies

Mal

e,

Afr

ican

Mal

e,

Col

oure

dM

ale,

In

dian

Mal

e, T

otal

B

lack

sM

ale,

W

hite

Fem

ale,

A

fric

anFe

mal

e,

Col

oure

dFe

mal

e,

Indi

anFe

mal

e,

Tota

l Bla

cks

Fem

ale,

W

hite

Tota

l

Legi

slat

ors,

sen

ior o

ffi ci

als

&

man

ager

s, p

erm

anen

t 23

34

304

20-

222

359

Legi

slat

ors,

sen

ior o

ffi ci

als

&

man

ager

s, te

mpo

rary

1

--

1-

--

--

-1


245

Occ

upat

iona

l Cat

egor

ies

Mal

e,

Afr

ican

Mal

e,

Col

oure

dM

ale,

In

dian

Mal

e, T

otal

B

lack

sM

ale,

W

hite

Fem

ale,

A

fric

anFe

mal

e,

Col

oure

dFe

mal

e,

Indi

anFe

mal

e,

Tota

l Bla

cks

Fem

ale,

W

hite

Tota

l

Pro

fess

iona

ls, p

erm

anen

t 45

--

452

32-

133

585

Tech

nici

ans

& a

ssoc

iate

pr

ofes

sion

als,

per

man

ent

123

1-

124

514

4-

-14

4-

273

Cle

rks,

per

man

ent

221

-23

-81

--

814

108

Ser

vice

& s

ales

wor

kers

, pe

rman

ent

22-

-22

-6

--

6-

28

Ele

men

tary

occ

upat

ions

, pe

rman

ent

41

-5

-1

--

1-

6

Tota

l24

06

425

011

284

-3

287

1256

0

Em

ploy

ees

with

dis

abili

ties

--

--

21

--

11

4

Tabl

e 6.

2: T

otal

num

ber o

f em

ploy

ees

(incl

udin

g em

ploy

ees

with

dis

abili

ties)

per

occ

upat

iona

l ban

d as

on

31 M

arch

201

2

Occ

upat

iona

l Ban

dsM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

Tot

al

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal B

lack

sFe

mal

e,

Whi

teTo

tal

Top

man

agem

ent,

perm

anen

t 2

--

2-

4-

15

-7

Sen

ior m

anag

emen

t, pe

rman

ent

253

432

419

-1

203

59

Pro

fess

iona

lly q

ualifi

ed

&

expe

rienc

ed s

peci

alis

ts &

mid

-m

anag

emen

t, pe

rman

ent

106

--

106

393

--

932

204

Pro

fess

iona

lly q

ualifi

ed

&

expe

rienc

ed s

peci

alis

ts &

mid

-m

anag

emen

t, te

mpo

rary

1-

-1

--

--

--

1

Ski

lled

tech

nica

l & a

cade

mic

ally

qu

alifi

ed w

orke

rs, j

unio

r m

anag

emen

t, su

perv

isor

s,

fore

men

, per

man

ent

421

-43

-89

-1

905

138

Sem

i-ski

lled

and

disc

retio

nary

de

cisi

on m

akin

g, p

erm

anen

t 31

1-

32-

26-

-26

159


246

Occ

upat

iona

l Ban

dsM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

Tot

al

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal B

lack

sFe

mal

e,

Whi

teTo

tal

Con

tract

(sen

ior m

anag

emen

t),

perm

anen

t 1

1-

22

1-

-1

16

Con

tract

(pro

fess

iona

lly

qual

ifi ed

), pe

rman

ent

3-

-3

15

--

5-

9

Con

tract

(ski

lled

tech

nica

l),

perm

anen

t 2

--

2-

1-

-1

-3

Con

tract

(sem

i-ski

lled)

, pe

rman

ent

3-

-3

-11

--

11-

14

Con

tract

(uns

kille

d), p

erm

anen

t 24

--

241

35-

-35

-60

Tota

l24

06

425

011

284

-3

287

1256

0

Tabl

e 6.

3: R

ecru

itmen

t for

the

perio

d 1

Apr

il 20

11 to

31

Mar

ch 2

012

Occ

upat

iona

l Ban

dsM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

Tot

al

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal B

lack

sFe

mal

e,

Whi

teTo

tal

Sen

ior m

anag

emen

t, pe

rman

ent

3-

14

-1

--

1-

5

Sen

ior m

anag

emen

t, te

mpo

rary

1

--

1-

--

--

-1

Pro

fess

iona

lly q

ualifi

ed

&

expe

rienc

ed s

peci

alis

ts &

mid

-m

anag

emen

t, pe

rman

ent

6-

-6

-5

--

5-

11

Ski

lled

tech

nica

l & a

cade

mic

ally

qu

alifi

ed w

orke

rs, j

unio

r m

anag

emen

t, su

perv

isor

s,

fore

men

, per

man

ent

7-

-7

-11

--

11-

18

Sem

i-ski

lled

and

disc

retio

nary

de

cisi

on m

akin

g, p

erm

anen

t 4

--

4-

7-

-7

-11

Con

tract

(sen

ior m

anag

emen

t),

perm

anen

t 1

--

12

--

11

15

Tabl

e 6.

2: T

otal

num

ber o

f em

ploy

ees

(incl

udin

g em

ploy

ees

with

dis

abili

ties)

per

occ

upat

iona

l ban

d as

on

31 M

arch

201

2 (c

ontin

ued)


247

Occ

upat

iona

l Ban

dsM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

Tot

al

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal B

lack

sFe

mal

e,

Whi

teTo

tal

Con

tract

(pro

fess

iona

lly

qual

ifi ed

), pe

rman

ent

3-

-3

-1

--

1-

4

Con

tract

(ski

lled

tech

nica

l),

perm

anen

t 3

--

3-

1-

-1

-4

Con

tract

(sem

i-ski

lled)

, pe

rman

ent

3-

-3

-14

--

14-

17

Con

tract

(uns

kille

d), p

erm

anen

t 34

--

341

41-

-41

-76

Tota

l65

-1

663

81-

182

115

2

Em

ploy

ees

with

dis

abili

ties

--

--

1-

--

--

1

Tabl

e 6.

4: P

rom

otio

ns fo

r the

per

iod

1 A

pril

2011

to 3

1 M

arch

201

2 O

ccup

atio

nal B

ands

Mal

e,

Afr

ican

Mal

e,

Col

oure

dM

ale,

In

dian

Mal

e, T

otal

B

lack

sM

ale,

W

hite

Fem

ale,

A

fric

anFe

mal

e,

Col

oure

dFe

mal

e,

Indi

anFe

mal

e,

Tota

l Bla

cks

Fem

ale,

W

hite

Tota

l

Sen

ior m

anag

emen

t, pe

rman

ent

5-

16

13

-1

41

11

Pro

fess

iona

lly q

ualifi

ed

&

expe

rienc

ed s

peci

alis

ts &

mid

-m

anag

emen

t, pe

rman

ent

72-

173

266

-1

672

142

Ski

lled

tech

nica

l & a

cade

mic

ally

qu

alifi

ed w

orke

rs, j

unio

r m

anag

emen

t, su

perv

isor

s,

fore

men

, per

man

ent

281

-29

-54

-1

594

92

Sem

i-ski

lled

& d

iscr

etio

nary

de

cisi

on m

akin

g, p

erm

anen

t 11

1-

12-

8-

-8

-20

Con

tract

(pro

fess

iona

lly

qual

ifi ed

), pe

rman

ent

--

--

1-

--

--

-

Tota

l11

62

212

04

131

-3

138

726

5

Em

ploy

ees

with

dis

abili

ties

-no

dat

a -

--

--

--

--

--

Tabl

e 6.

3: R

ecru

itmen

t for

the

perio

d 1

Apr

il 20

11 to

31

Mar

ch 2

012

(con

tinue

d)


248

Tabl

e 6.

5: T

erm

inat

ions

for t

he p

erio

d 1

Apr

il 20

11 to

31

Mar

ch 2

012

Occ

upat

iona

l Ban

dsM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

anM

ale,

Tot

al

Bla

cks

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal B

lack

sFe

mal

e,

Whi

teTo

tal

Sen

ior m

anag

emen

t, pe

rman

ent

3-

-3

--

--

--

3

Pro

fess

iona

lly q

ualifi

ed

&

expe

rienc

ed s

peci

alis

ts a

nd

mid

-man

agem

ent,

perm

anen

t

2-

-2

16

--

6-

9

Ski

lled

tech

nica

l & a

cade

mic

ally

qu

alifi

ed w

orke

rs, j

unio

r m

anag

emen

t, su

perv

isor

s,

fore

men

, per

man

ent

--

--

-3

--

3-

3

Con

tract

(top

man

agem

ent),

pe

rman

ent

2-

-2

--

--

--

2

Con

tract

(sen

ior m

anag

emen

t),

perm

anen

t 1

--

11

--

11

14

Con

tract

(pro

fess

iona

lly

qual

ifi ed

), pe

rman

ent

1-

-1

--

1-

1-

2

Con

tract

(ski

lled

tech

nica

l),

perm

anen

t 2

--

2-

--

--

-2

Con

tract

(sem

i-ski

lled)

, pe

rman

ent

16-

-16

-34

--

34-

50

Con

tract

(uns

kille

d), p

erm

anen

t 12

--

12-

8-

-8

-20

Tota

l39

--

392

511

153

195

Em

ploy

ees

with

dis

abili

ties

– no

da

ta

--

--

--

--

--

-

Tabl

e 6.

6: D

isci

plin

ary

actio

n fo

r the

per

iod

1 A

pril

2011

to 3

1 M

arch

201

2

Dis

cipl

inar

y ac

tion

Mal

e,

Afr

ican

Mal

e,

Col

oure

dM

ale,

In

dian

Mal

e, T

otal

B

lack

sM

ale,

W

hite

Fem

ale,

A

fric

anFe

mal

e,

Col

oure

dFe

mal

e,

Indi

anFe

mal

e,

Tota

l Bla

cks

Fem

ale,

W

hite

Tota

l

Tota

l17

11

192

13-

-13

135


249

Tabl

e 6.

7: S

kills

dev

elop

men

t for

the

perio

d 1

Apr

il 20

11 to

31

Mar

ch 2

012

Occ

upat

iona

l Cat

egor

ies

Mal

e,

Afr

ican

Mal

e,

Col

oure

dM

ale,

In

dian

Mal

e, T

otal

B

lack

sM

ale,

W

hite

Fem

ale,

A

fric

anFe

mal

e,

Col

oure

dFe

mal

e,

Indi

anFe

mal

e,

Tota

l Bla

cks

Fem

ale,

W

hite

Tota

l

Legi

slat

ors,

sen

ior o

ffi ci

als

&

man

ager

s 27

13

-3

15-

2-

354

Pro

fess

iona

ls

42-

--

134

--

-1

78

Tech

nici

ans

& a

ssoc

iate

pr

ofes

sion

als

70-

--

-57

--

--

127

Cle

rks

14-

--

-45

--

--

59

Ser

vice

& s

ales

wor

kers

2

--

--

1-

--

-3

Ski

lled

agric

ultu

re &

fi sh

ery

wor

kers

-

--

--

--

--

--

Cra

ft &

rela

ted

trade

s w

orke

rs

--

--

--

--

--

-

Pla

nt &

mac

hine

ope

rato

rs &

as

sem

bler

s -

--

--

--

--

--

Ele

men

tary

occ

upat

ions

-

--

--

--

--

--

Inte

rns

33-

--

140

--

--

74

Tota

l18

81

3-

519

2-

2-

439

5

Em

ploy

ees

with

dis

abili

ties

–no

dat

a-

--

-2

1-

--

-3

Dem

ogra

phic

sN

umbe

r of

Ben

efi c

iarie

sTo

tal E

mpl

oym

ent

Perc

enta

ge o

f Tot

al

Empl

oym

ent

Cos

t (R

’000

)Av

erag

e C

ost p

er

Ben

efi c

iary

(R)

Afri

can,

fem

ale

106

283

371

117

10 8

42

Afri

can,

mal

e 88

240

371

174

13 3

43

Asi

an, f

emal

e 2

367

3316

681

4.7

PER

FOR

MA

NC

E M

AN

AG

EMEN

TTo

enc

oura

ge g

ood

perfo

rman

ce, t

he d

epar

tmen

t has

gra

nted

the

follo

win

g pe

rform

ance

rew

ards

dur

ing

the

year

und

er re

view

. The

info

rmat

ion

is p

rese

nted

in te

rms

of ra

ce,

gend

er, a

nd d

isab

ility

(Tab

le 7

.1),

sala

ry b

and

(Tab

le 7

.2) a

nd c

ritic

al o

ccup

atio

ns (T

able

7.3

).

Tabl

e 7.

1: P

erfo

rman

ce re

war

ds b

y ra

ce, g

ende

r and

dis

abili

ty, 1

Apr

il 20

11 to

31

Mar

ch 2

012


250

Dem

ogra

phic

sN

umbe

r of

Ben

efi c

iarie

sTo

tal E

mpl

oym

ent

Perc

enta

ge o

f Tot

al

Empl

oym

ent

Cos

t (R

’000

)Av

erag

e C

ost p

er

Ben

efi c

iary

(R)

Asi

an, m

ale

14

2516

16 2

74

Col

oure

d, m

ale

26

3315

7 51

6

Tota

l Bla

cks,

fem

ale

108

286

381

150

10 9

53

Tota

l Bla

cks,

mal

e 91

250

361

206

13 2

47

Whi

te, f

emal

e 7

1164

7610

924

Whi

te, m

ale

39

3360

19 8

89

Em

ploy

ees

with

a d

isab

ility

-

4-

--

Tota

l20

956

037

2 49

212

096

Tabl

e 7.

2: P

erfo

rman

ce re

war

ds b

y sa

lary

ban

d fo

r per

sonn

el b

elow

Sen

ior M

anag

emen

t Ser

vice

, 1 A

pril

2011

to

31 M

arch

201

2

Sala

ry B

and

Num

ber o

f B

enefi

cia

ries

Tota

l Em

ploy

men

tPe

rcen

tage

of T

otal

Em

ploy

men

tC

ost (

R’0

00)

Aver

age

Cos

t per

B

enefi

cia

ry (R

)

Ski

lled

(leve

ls 3

-5)

1159

18,6

544

909

Hig

hly

skill

ed p

rodu

ctio

n (le

vels

6-

8)

6913

850

536

7 76

8

Hig

hly

skill

ed s

uper

visi

on (l

evel

s 9-

12)

122

205

59,5

1 74

514

303

Con

tract

(lev

els

1-2)

-

60-

--

Con

tract

(lev

els

3-5)

-

14-

--

Con

tract

(lev

els

6-8)

-

3-

--

Con

tract

(lev

els

9-12

) 1

911

,124

24 0

00

Per

iodi

cal r

emun

erat

ion

-3

--

-

Tota

l20

349

141

,32

359

11 6

21

Tabl

e 7.

1: P

erfo

rman

ce re

war

ds b

y ra

ce, g

ende

r and

dis

abili

ty, 1

Apr

il 20

11 to

31

Mar

ch 2

012

(con

tinue

d)


251

Tabl

e 7.

3: P

erfo

rman

ce re

war

ds b

y cr

itica

l occ

upat

ions

, 1 A

pril

2011

to 3

1 M

arch

201

2

Crit

ical

Occ

upat

ions

Num

ber o

f B

enefi

cia

ries

Tota

l Em

ploy

men

tPe

rcen

tage

of T

otal

Em

ploy

men

tC

ost (

R’0

00)

Aver

age

Cos

t per

B

enefi

cia

ry (R

)

Adm

inis

trativ

e re

late

d 21

5141

.223

711

286

Clie

nt in

form

cle

rks(

switc

hb re

cept

info

rm

cler

ks)

17

14.3

77

000

Com

mun

icat

ion

and

info

rmat

ion

rela

ted

49

44.4

5614

000

Eco

nom

ists

-

2-

--

Fina

nce

and

econ

omic

s re

late

d 2

1118

.228

14 0

00

Fina

ncia

l and

rela

ted

prof

essi

onal

s 7

1546

.771

10 1

43

Fina

ncia

l cle

rks

and

cred

it co

ntro

llers

7

1070

456

429

Food

ser

vice

s ai

ds a

nd w

aite

rs

-1

-0

-

Gen

eral

lega

l adm

inis

tratio

n &

rel.

prof

essi

onal

s -

1-

0-

Hea

d of

dep

artm

ent/c

hief

exe

cutiv

e of

fi cer

-

1-

0-

Hum

an re

sour

ces

& o

rgan

isat

dev

elop

m &

re

late

pro

f 12

2060

186

15 5

00

Hum

an re

sour

ces

cler

ks

28

259

4 50

0

Hum

an re

sour

ces

rela

ted

-11

--

-

Info

rmat

ion

tech

nolo

gy re

late

d 1

714

.310

10 0

00

Lang

uage

pra

ctiti

oner

s in

terp

rete

rs &

oth

er

com

mun

2

210

016

8 00

0

Libr

ary

mai

l and

rela

ted

cler

ks

321

14.3

196

333

Logi

stic

al s

uppo

rt pe

rson

nel

55

100

387

600

Mat

eria

l-rec

ordi

ng a

nd tr

ansp

ort c

lerk

s 6

1154

.538

6 33

3

Mes

seng

ers

porte

rs a

nd d

eliv

erer

s 2

540

115

500

Nat

ural

sci

ence

s re

late

d 10

215

665

.41

415

13 8

73


252

Crit

ical

Occ

upat

ions

Num

ber o

f B

enefi

cia

ries

Tota

l Em

ploy

men

tPe

rcen

tage

of T

otal

Em

ploy

men

tC

ost (

R’0

00)

Aver

age

Cos

t per

B

enefi

cia

ry (R

)

Oth

er a

dmin

istra

t & re

late

d cl

erks

and

or

gani

sers

5

955

.628

5 60

0

Oth

er a

dmin

istra

tive

polic

y an

d re

late

d of

fi cer

s 1

110

07

7 00

0

Oth

er in

form

atio

n te

chno

logy

per

sonn

el.

37

42.9

237

667

Oth

er o

ccup

atio

ns

-2

--

-

Ris

k m

anag

emen

t and

sec

urity

ser

vice

s 5

955

.657

11 4

00

Inte

rns

-60

--

-

Sec

reta

ries

& o

ther

key

boar

d op

erat

ing

cler

ks

1242

28.6

907

500

Sec

urity

offi

cers

2

1910

.512

6 00

0

Sen

ior m

anag

ers

457

789

22 2

50

Tota

l20

956

037

.32

492

11 9

23

Tabl

e 7.

4: P

erfo

rman

ce-r

elat

ed re

war

ds (c

ash

bonu

s) b

y sa

lary

ban

d fo

r Sen

ior M

anag

emen

t Ser

vice

SMS

Ban

dN

umbe

r of

Ben

efi c

iarie

sTo

tal E

mpl

oym

ent

Perc

enta

ge o

f To

tal E

mpl

oym

ent

Cos

t (R

’000

)Av

erag

e C

ost p

er

Ben

efi c

iary

(R)

Perc

enta

ge o

f SM

S W

age

Bill

Pers

onne

l Cos

t SM

S (R

’000

)

Ban

d A

652

11.5

133

22 1

670.

435

098

Ban

d B

-

13-

--

--

Ban

d C

-

4-

--

--

Ban

d D

-

3-

--

--

Tota

l6

728.

313

322

166

.70

0,4

35 0

98

Tabl

e 7.

3: P

erfo

rman

ce re

war

ds b

y cr

itica

l occ

upat

ions

, 1 A

pril

2011

to 3

1 M

arch

201

2 (c

ontin

ued)


253

SMS

Leve

lTo

tal N

umbe

r of

SMS

per L

evel

as

on

30 S

epte

mbe

r 201

1

Tota

l Num

ber o

f Si

gned

PA

by 3

0 Se

ptem

ber 2

011

Perc

enta

ge o

f Si

gned

PA

Num

ber o

f PA

s N

ot S

igne

d by

30

Sept

embe

r 201

1

Rea

sons

for N

on-C

ompl

ianc

e

DG

11

100

-

Sal

ary

leve

l 16,

but

not

DG

1-

1In

the

abse

nce

of a

val

id re

ason

, di

scip

linar

y ac

tion

was

inst

itute

d in

S

epte

mbe

r 201

1. T

he e

mpl

oyee

has

si

nce

left

the

DoE

.

Sal

ary

leve

l 15

44

100

-

Sal

ary

leve

l 14

1311

84.6

12

In th

e ab

senc

e of

a v

alid

reas

on,

disc

iplin

ary

actio

n w

as in

stitu

ted

in

Sep

tem

ber 2

011.

Sal

ary

leve

l 13

5240

76.9

212

In th

e ab

senc

e of

a v

alid

reas

on,

disc

iplin

ary

actio

n w

as in

stitu

ted

in

Sep

tem

ber 2

011.

Not

e th

at 3

of t

he

12 M

anag

ers

wer

e ne

wly

app

oint

ed/

prom

oted

at t

hat t

ime

and

still

had

th

ree

mon

ths

to s

ubm

it th

eir P

As.

Tota

l SM

S 71

5678

.87

15

Tabl

e 7.

5: T

able

7.5

: Inf

orm

atio

n fo

r the

per

form

ance

cyc

le 2

011/

2012


254

Sala

ry B

and

Empl

oym

ent

at B

egin

ning

Pe

riod

Perc

enta

ge

of T

otal

Empl

oym

ent

at E

nd o

f Pe

riod

Perc

enta

ge

of T

otal

Cha

nge

in

Empl

oym

ent

Perc

enta

ge

of T

otal

Tota

l Em

ploy

men

t at

Beg

inni

ng

of P

erio

d

Tota

l Em

ploy

men

t at

End

of

Perio

d

Tota

l C

hang

e in

Em

ploy

men

t

Hig

hly

skill

ed s

uper

visi

on

(leve

ls 9

-12)

2

66.7

--

(2)

200

32

(1)

Sen

ior m

anag

emen

t (le

vels

13-

16)

133

.32

100

1(1

00)

32

(1)

Tota

l3

100

210

0(1

)10

03

2(1

)

Tabl

e 8.

2: F

orei

gn w

orke

rs, 1

Apr

il 20

11 to

31

Mar

ch 2

012,

by

maj

or o

ccup

atio

n

Maj

or O

ccup

atio

nEm

ploy

men

t at

Beg

inni

ng

Perio

d

Perc

enta

ge

of T

otal

Empl

oym

ent

at E

nd o

f Pe

riod

Perc

enta

ge

of T

otal

Cha

nge

in

Empl

oym

ent

Perc

enta

ge

of T

otal

Tota

l Em

ploy

men

t at

Beg

inni

ng

of P

erio

d

Tota

l Em

ploy

men

t at

End

of

Perio

d

Tota

l C

hang

e in

Em

ploy

men

t

Pro

fess

iona

ls a

nd

man

ager

s 3

100

210

0(1

)10

03

2(1

)

Tota

l3

100

210

0(1

)10

03

2(1

)

4.8

FOR

EIG

N W

OR

KER

STh

e ta

bles

bel

ow s

umm

aris

e th

e em

ploy

men

t of f

orei

gn n

atio

nals

in th

e de

partm

ent i

n te

rms

of s

alar

y ba

nds

and

by m

ajor

occ

upat

ion.

The

tabl

es a

lso

sum

mar

ise

chan

ges

in th

e to

tal n

umbe

r of f

orei

gn w

orke

rs in

eac

h sa

lary

ban

d an

d by

eac

h m

ajor

occ

upat

ion.

Tabl

e 8.

1: F

orei

gn w

orke

rs, 1

Apr

il 20

11 to

31

Mar

ch 2

012,

by

sala

ry b

and


255

Sala

ry B

and

Tota

l D

ays

Perc

enta

ge

of D

ays

with

M

edic

al

Cer

tifi c

atio

n

Num

ber o

f Em

ploy

ees

Usi

ng S

ick

Leav

e

Perc

enta

ge o

f To

tal E

mpl

oyee

s U

sing

Sic

k Le

ave

Aver

age

Day

s pe

r Em

ploy

eeEs

timat

ed

Cos

t (R

’000

)

Tota

l Num

ber

of E

mpl

oyee

s U

sing

Sic

k Le

ave

Tota

l Num

ber

of D

ays

with

M

edic

al

Cer

tifi c

atio

n

Ski

lled

(leve

ls 3

-5)

351

84.6

4911

.97

116

413

297

Hig

hly

skill

ed p

rodu

ctio

n (le

vels

6-8

) 76

481

.211

227

.17

435

413

620

Hig

hly

skill

ed s

uper

visi

on (l

evel

s 9-

12)

1 16

381

.515

337

81

363

413

948

Sen

ior m

anag

emen

t (le

vels

13-

16)

253

80.6

5012

.15

704

413

204

Con

tract

(lev

els

1-2)

66

.578

.227

6.5

216

413

52

Con

tract

(lev

els

3-5)

69

73.9

143.

45

1941

351

Con

tract

(lev

els

9-12

) 8

753

0.7

316

413

6

Con

tract

(lev

els

13-1

6)

3090

51.

26

8241

327

Tota

l2

705

81.5

413

100

72

751

413

2 20

5

Tabl

e 9.

2: D

isab

ility

leav

e (te

mpo

rary

and

per

man

ent),

1 J

anua

ry 2

011

to D

ecem

ber 2

011

Sala

ry B

and

Tota

l D

ays

Perc

enta

ge

of D

ays

with

M

edic

al

Cer

tifi c

atio

n

Num

ber o

f Em

ploy

ees

Usi

ng

Dis

abili

ty

Leav

e

Perc

enta

ge o

f To

tal E

mpl

oyee

s U

sing

Dis

abili

ty

Leav

e

Aver

age

Day

s pe

r Em

ploy

eeEs

timat

ed

Cos

t (R

’000

)

Tota

l Num

ber

of D

ays

with

M

edic

al

Cer

tifi c

atio

n

Tota

l Num

ber

of E

mpl

oyee

s U

sing

D

isab

ility

Le

ave

Ski

lled

(leve

ls 3

-5)

4710

01

11.1

4714

479

Hig

hly

skill

ed p

rodu

ctio

n (le

vels

6-8

) 19

100

333

.36

1019

9

Hig

hly

skill

ed s

uper

visi

on

(leve

ls 9

-12)

59

100

333

.320

8659

9

Sen

ior m

anag

emen

t (le

vels

13-

16)

410

01

11.1

411

49

Con

tract

(lev

els

1-2)

21

100

111

.121

521

9

Tota

l15

010

09

100

1712

615

09

4.9

LEAV

E U

TILI

SATI

ON

FO

R T

HE

PER

IOD

1 J

AN

UA

RY 2

011

TO 3

1 D

ECEM

BER

201

1Th

e P

ublic

Ser

vice

Com

mis

sion

iden

tifi e

d th

e ne

ed fo

r car

eful

mon

itorin

g of

sic

k le

ave

with

in th

e pu

blic

ser

vice

. The

follo

win

g ta

bles

pro

vide

an

indi

catio

n of

the

use

of s

ick

leav

e (T

able

9.1

) and

dis

abili

ty le

ave

(Tab

le 2

.9).

In b

oth

case

s, th

e es

timat

ed c

ost o

f the

leav

e is

als

o pr

ovid

ed.

Tabl

e 9.

1: S

ick

leav

e, 1

Jan

uary

201

1 to

Dec

embe

r 201

1


256

Sala

ry B

and

Tota

l Day

s Ta

ken

Aver

age

Day

s pe

r Em

ploy

eeN

umbe

r of E

mpl

oyee

s w

ho T

ook

Leav

e

Ski

lled

(leve

ls 3

-5)

923.

2415

62

Hig

hly

skill

ed p

rodu

ctio

n (le

vels

6-8

) 2

555

1714

8

Hig

hly

skill

ed s

uper

visi

on (l

evel

s 9-

12)

4 14

120

211

Sen

ior m

anag

emen

t (le

vels

13-

16)

1 26

718

69

Con

tract

(lev

els

1-2)

62

0.92

698

Con

tract

(lev

els

3-5)

25

97

35

Con

tract

(lev

els

6-8)

11

62

Con

tract

(lev

els

9-12

) 11

310

11

Con

tract

(lev

els

13-1

6)

106

1110

Tota

l9

996.

1615

646

Tabl

e 9.

4: C

appe

d le

ave,

1 J

anua

ry 2

011

to D

ecem

ber 2

011

Sala

ry B

and

Tota

l Day

s of

C

appe

d Le

ave

Take

n

Aver

age

Num

ber

of D

ays

Take

n pe

r Em

ploy

ee

Aver

age

Cap

ped

Leav

e pe

r Em

ploy

ee

as a

t 31

Dec

embe

r 20

11

Num

ber o

f Em

ploy

ees

who

To

ok C

appe

d Le

ave

Tota

l Num

ber o

f C

appe

d Le

ave

Avai

labl

e at

31

Dec

embe

r 201

1

Num

ber o

f Em

ploy

ees

as

at 3

1 D

ecem

ber

2011

Hig

hly

skill

ed p

rodu

ctio

n (le

vels

6-8

) 4

216

223

815

Hig

hly

skill

ed s

uper

visi

on (l

evel

s 9-

12)

53

202

367

18

Sen

ior m

anag

emen

t (le

vels

13-

16)

126

522

675

13

Tota

l21

428

61

280

46

Tabl

e 9.

3 su

mm

aris

es th

e ut

ilisa

tion

of a

nnua

l lea

ve. T

he w

age

agre

emen

t con

clud

ed w

ith tr

ade

unio

ns in

the

PS

CB

C in

200

requ

ires

man

agem

ent o

f ann

ual l

eave

to

prev

ent h

igh

leve

ls o

f acc

rued

leav

e be

ing

paid

at t

he ti

me

of te

rmin

atio

n of

ser

vice

.

Tabl

e 9.

3: A

nnua

l lea

ve, 1

Jan

uary

201

1 to

Dec

embe

r 201

1


257

Tabl

e 9.

5: L

eave

pay

outs

for t

he p

erio

d 1

Apr

il 20

11 to

31

Mar

ch 2

012

The

follo

win

g ta

ble

sum

mar

ises

pay

men

ts m

ade

to e

mpl

oyee

s as

a re

sult

of le

ave

that

was

not

take

n

Rea

son

Tota

l Am

ount

(R’0

00)

Num

ber o

f Em

ploy

ees

Aver

age

Paym

ent p

er

Empl

oyee

(R)

Leav

e pa

yout

for 2

011/

12 d

ue to

non

-util

isat

ion

of le

ave

for t

he p

revi

ous

cycl

e 18

810

18 8

00

Cap

ped

leav

e pa

yout

s on

term

inat

ion

of s

ervi

ce fo

r 201

1/12

44

534

13 0

88

Cur

rent

leav

e pa

yout

on

term

inat

ion

of s

ervi

ce fo

r 201

1/12

21

829

7 51

7

Tota

l85

173

11 6

58

Uni

ts/C

ateg

orie

s of

Em

ploy

ees

Iden

tifi e

d to

be

at H

igh

Ris

k of

Con

trac

ting

HIV

&

Rel

ated

Dis

ease

s (if

any

)K

ey S

teps

Tak

en to

Red

uce

the

Ris

k

Em

ploy

ees

betw

een

the

ages

of 2

0-35

Hea

lth e

duca

tion

thro

ugh

wee

kly

artic

les

Intro

duct

ion

of W

elln

ess

Cha

mpi

ons

(pee

r edu

cato

rs) t

o he

lp in

dis

cuss

ing

HIV

and

A

IDS

issu

es to

all

empl

oyee

s

Tabl

e 10

.2: D

etai

ls o

f hea

lth p

rom

otio

n an

d H

IV/A

IDS

prog

ram

mes

Que

stio

nYe

sN

oD

etai

ls, i

f Yes

1. H

as th

e D

oE d

esig

nate

d a

mem

ber o

f the

Sen

ior M

anag

emen

t Ser

vice

(SM

S) t

o im

plem

ent t

he

prov

isio

ns c

onta

ined

in P

art V

I E o

f Cha

pter

1 o

f the

Pub

lic S

ervi

ce R

egul

atio

ns, 2

001?

If s

o, p

rovi

de

her/h

is n

ame

and

posi

tion.

x

Ms

Ans

ie B

otha

.

2. D

oes

the

DoE

hav

e a

dedi

cate

d un

it or

hav

e yo

u de

sign

ated

spe

cifi c

sta

ff m

embe

rs to

pro

mot

e th

e he

alth

and

wel

l-bei

ng o

f you

r em

ploy

ees?

If s

o, in

dica

te th

e nu

mbe

r of e

mpl

oyee

s w

ho a

re in

volv

ed

in th

is ta

sk a

nd th

e an

nual

bud

get t

hat i

s av

aila

ble

for t

his

purp

ose.

x

Two

empl

oyee

s. N

o al

loca

ted

budg

et.

3. H

as th

e D

oE in

trodu

ced

an E

mpl

oyee

Ass

ista

nce

or H

ealth

Pro

mot

ion

Pro

gram

me

for y

our

empl

oyee

s? If

so,

indi

cate

the

key

elem

ents

/ser

vice

s of

the

prog

ram

me.

x

H

ealth

pro

mot

ion,

wel

lnes

s, c

ouns

ellin

g, h

ealth

&

saf

ety,

& H

IV &

AID

S m

anag

emen

t.

4. H

as th

e D

oE e

stab

lishe

d (a

) com

mitt

ee(s

) as

cont

empl

ated

in P

art V

I E.5

(e) o

f Cha

pter

1 o

f the

P

ublic

Ser

vice

Reg

ulat

ions

, 200

1? If

so,

ple

ase

prov

ide

the

nam

es o

f the

mem

bers

of t

he c

omm

ittee

an

d th

e st

akeh

olde

r(s)

that

they

repr

esen

t.

x

4.10

H

IV A

ND

AID

S &

HEA

LTH

PR

OM

OTI

ON

PR

OG

RA

MM

ES

Tabl

e 10

.1: S

teps

take

n to

redu

ce th

e ris

k of

occ

upat

iona

l exp

osur

e


258

Que

stio

nYe

sN

oD

etai

ls, i

f Yes

5. H

as th

e D

oE re

view

ed th

e em

ploy

men

t pol

icie

s an

d pr

actic

es o

f you

r dep

artm

ent t

o en

sure

that

th

ese

do n

ot u

nfai

rly d

iscr

imin

ate

agai

nst e

mpl

oyee

s on

the

basi

s of

thei

r HIV

sta

tus?

If s

o, li

st th

e em

ploy

men

t pol

icie

s/pr

actic

es s

o re

view

ed.

x

HIV

and

AID

S P

olic

y &

Wel

lnes

s P

olic

y.

6. H

as th

e D

oE in

trodu

ced

mea

sure

s to

pro

tect

HIV

-pos

itive

em

ploy

ees

or th

ose

perc

eive

d to

be

HIV

-po

sitiv

e fro

m d

iscr

imin

atio

n? If

so,

list

the

key

elem

ents

of t

hese

mea

sure

s.

x

HIV

& A

IDS

Pol

icy.

7. D

oes

the

DoE

enc

oura

ge it

s em

ploy

ees

to u

nder

go v

olun

tary

cou

nsel

ling

and

test

ing?

If s

o, li

st th

e re

sults

that

you

hav

e ac

hiev

ed.

x

HC

T on

ce a

qua

rter t

oget

her w

ith H

ealth

Ris

k A

sses

smen

t. 11

4 st

aff m

embe

rs re

spon

ded

in

the

fi nan

cial

yea

r.

8. H

as th

e D

epar

tmen

t dev

elop

ed m

easu

res/

indi

cato

rs to

mon

itor &

eva

luat

e th

e im

pact

of y

our h

ealth

pr

omot

ion

prog

ram

me?

If s

o, li

st th

ese

mea

sure

s/in

dica

tors

. x

Subj

ect M

atte

rD

ate

Rec

ords

Man

agem

ent P

olic

y20

11-0

4-11

Non

-Sm

okin

g &

Sm

okin

g B

reak

Pol

icy

2011

-04-

11

Frau

d P

reve

ntio

n S

trate

gy20

11-0

4-11

Sus

pens

ion

& T

rans

fers

as

a P

reca

utio

nary

Mea

sure

2011

-06-

01

Sec

urity

Ris

k M

anag

emen

t Pol

icy

2011

-06-

01

Cod

e of

Con

duct

& F

raud

Pre

vent

ion

Pol

icy

2011

-06-

01

Faci

litie

s M

anag

emen

t Pol

icy

2011

-07-

12

Tran

spor

t Pol

icy

2011

-07-

12

Adu

lt B

asic

Edu

catio

n an

d Tr

aini

ng (A

BE

T) P

olic

y20

11-0

7-12

Bur

sary

Pol

icy

2011

-07-

12

Edu

catio

n, T

rain

ing

& D

evel

opm

ent P

olic

y20

11-0

7-12

Lear

ners

hip

Pol

icy

2011

-07-

12

Men

torin

g P

olic

y20

11-0

7-12

Tabl

e 10

.2: D

etai

ls o

f hea

lth p

rom

otio

n an

d H

IV/A

IDS

prog

ram

mes

(con

tinue

d)

4.11

LA

BO

UR

REL

ATIO

NS

The

follo

win

g co

llect

ive

agre

emen

ts w

ere

ente

red

into

with

trad

e un

ions

with

in th

e de

partm

ent.

Tabl

e 11

.1: C

olle

ctiv

e ag

reem

ents

, 1 A

pril

2011

to 3

1 M

arch

201

2


259

Subj

ect M

atte

rD

ate

Inte

rnsh

ip P

olic

y20

11-0

7-28

Per

form

ance

Man

agem

ent D

evel

opm

ent S

yste

m (P

MD

S) P

olic

y20

11-0

7-28

Inte

rnsh

ip P

olic

y20

11-0

8-05

Lapt

op A

lloca

tion

Pol

icy

2011

-09-

05

ICT

Usa

ge P

olic

y20

11-0

9-06

Rec

ruitm

ent &

Sel

ectio

n P

olic

y20

11-1

1-28

Sof

twar

e A

sset

Man

agem

ent P

olic

y20

11-1

1-26

Sex

ual H

aras

smen

t Pol

icy

2011

-11-

30

Logi

cal A

cces

s P

olic

y20

11-1

1-30

ICT

Ris

k M

anag

emen

t Pol

icy

2011

-11-

30

ICT

Bus

ines

s C

ontin

uity

Man

agem

ent P

olic

y20

11-1

1-30

ICT

Inci

dent

& P

robl

em M

anag

emen

t Pol

icy

2011

-11-

30

Res

ettle

men

t Exp

endi

ture

2012

- 1-2

5

Pol

icy

Gui

delin

es o

n M

anag

emen

t of L

eave

2012

- 1-2

5

Out

com

es o

f Dis

cipl

inar

y H

earin

gsN

umbe

rPe

rcen

tage

of T

otal

Tota

l

Gui

lty: d

ism

issa

l1

100

1

Tota

l1

100

1

Tabl

e 11

.3: T

ypes

of m

isco

nduc

t add

ress

ed a

t dis

cipl

inar

y he

arin

gs

Type

of M

isco

nduc

tN

umbe

rPe

rcen

tage

of T

otal

Tota

l

Neg

ligen

ce2

635

Mis

repr

esen

tatio

n1

335

Abs

ente

eism

411

35

Der

elic

tion

of d

utie

s2

635

Tabl

e 11

.1: C

olle

ctiv

e ag

reem

ents

, 1 A

pril

2011

to 3

1 M

arch

201

2 (c

ontin

ued)

The

follo

win

g ta

ble

sum

mar

ises

the

outc

ome

of d

isci

plin

ary

hear

ings

con

duct

ed w

ithin

the

depa

rtmen

t for

the

year

und

er re

view

.

Tabl

e 11

.2: M

isco

nduc

t and

dis

cipl

inar

y he

arin

gs fi

nalis

ed, 1

Apr

il 20

11 to

31

Mar

ch 2

012


260

Type

of M

isco

nduc

tN

umbe

rPe

rcen

tage

of T

otal

Tota

l

Non

-com

plia

nce:

PM

DS

1954

35

Insu

bord

inat

ion

26

35

Poo

r wor

k pe

rform

ance

13

35

Irreg

ular

exp

endi

ture

13

35

Une

thic

al b

ehav

iour

26

35

Non

-com

plia

nce:

Pet

ty C

ash

Pol

icy

13

35

Tota

l35

100

35

Tabl

e 11

.4: G

rieva

nces

lodg

ed fo

r the

per

iod

1 A

pril

2011

to 3

1 M

arch

201

2

Num

ber o

f Grie

vanc

es A

ddre

ssed

Num

ber

Perc

enta

ge o

f Tot

alTo

tal

Tota

l10

100

10

Tabl

e 11

.5: D

ispu

tes

lodg

ed w

ith C

ounc

ils fo

r the

per

iod

1 A

pril

2011

to 3

1 M

arch

201

2

Num

ber o

f Dis

pute

s A

ddre

ssed

Num

ber

Perc

enta

ge o

f Tot

al

Uph

eld

--

Dis

mis

sed

110

0

Tota

l 1

100

Tabl

e 11

.6: S

trik

e ac

tions

for t

he p

erio

d 1

Apr

il 20

11 to

31

Mar

ch 2

012

Strik

e A

ctio

nsTo

tal

Tota

l num

ber o

f per

son

wor

king

day

s lo

st

-

Tota

l cos

t (R

’000

) of w

orki

ng d

ays

lost

-

Am

ount

(R’0

00) r

ecov

ered

as

a re

sult

of n

o w

ork,

no

pay

-

Tabl

e 11

.3: T

ypes

of m

isco

nduc

t add

ress

ed a

t dis

cipl

inar

y he

arin

gs (c

ontin

ued)


261

Tabl

e 11

.7: P

reca

utio

nary

sus

pens

ions

for t

he p

erio

d 1

Apr

il 20

11 to

31

Mar

ch 2

012

Prec

autio

nary

Sus

pens

ions

Tota

l

Num

ber o

f peo

ple

susp

ende

d -

Num

ber o

f peo

ple

who

se s

uspe

nsio

n ex

ceed

ed 3

0 da

ys

-

Aver

age

num

ber o

f day

s su

spen

ded

-

Cos

t (R

’000

) of s

uspe

nsio

ns

-

Occ

upat

iona

l Cat

egor

ies

Gen

der

Empl

oym

ent a

s at

1 A

pril

2011

Lear

ners

hips

Skill

s Pr

ogra

mm

es

& O

ther

Sho

rt

Cou

rses

Oth

er F

orm

s of

Tr

aini

ng (B

ursa

ries

& In

tern

ship

s)

Tota

l

Legi

slat

ors,

sen

ior o

ffi ci

als

& m

anag

ers

Fe

mal

e 20

-18

220

Mal

e 29

-30

434

Pro

fess

iona

ls

Fe

mal

e 35

-29

635

Mal

e 34

-33

1043

Tech

nici

ans

& a

ssoc

iate

pro

fess

iona

ls

Fe

mal

e 13

9-

5111

62

Mal

e 12

5-

4619

65

Cle

rks

Fe

mal

e 65

-24

2145

Mal

e 26

-7

714

Ser

vice

& s

ales

wor

kers

Fem

ale

7-

1-

1

Mal

e 18

-2

-2

Ski

lled

agric

ultu

re &

fi sh

ery

wor

kers

Fem

ale

--

--

-

Mal

e -

--

--

Cra

ft &

rela

ted

trade

s w

orke

rs

Fe

mal

e 4

--

--

Mal

e 4

--

--

Pla

nt &

mac

hine

ope

rato

rs &

ass

embl

ers

Fe

mal

e -

--

--

Mal

e -

--

--

4.12

SK

ILLS

DEV

ELO

PMEN

TTh

is s

ectio

n hi

ghlig

hts

the

effo

rts o

f the

dep

artm

ent w

ith re

gard

to s

kills

dev

elop

men

t.

Tabl

e 12

.1: T

rain

ing

need

s id

entifi

ed,

1 A

pril

2011

to 3

1 M

arch

201

2


262

Occ

upat

iona

l Cat

egor

ies

Gen

der

Empl

oym

ent a

s at

1 A

pril

2011

Lear

ners

hips

Skill

s Pr

ogra

mm

es

& O

ther

Sho

rt

Cou

rses

Oth

er F

orm

s of

Tr

aini

ng (B

ursa

ries

& In

tern

ship

s)

Tota

l

Ele

men

tary

occ

upat

ions

Fem

ale

--

--

-

Mal

e -

--

--

Inte

rns/

tem

pora

ries

Fem

ale

39-

-41

41

Mal

e 31

--

3333

Gen

der s

ubto

tals

Fem

ale

--

--

-

Mal

e -

--

--

Tota

l

576

-24

115

439

5

Tabl

e 12

.2: T

rain

ing

prov

ided

, 1 A

pril

2011

to 3

1 M

arch

201

2

Occ

upat

iona

l Cat

egor

ies

Gen

der

Empl

oym

ent a

s at

1 A

pril

2-11

Lear

ners

hips

Skill

s Pr

ogra

mm

es

& O

ther

Sho

rt

Cou

rses

Oth

er F

orm

s of

Tra

inin

g (e

.g B

ursa

ries,

Sc

hola

rshi

ps &

In

tern

ship

s)

Tota

l

Legi

slat

ors,

sen

ior o

ffi ci

als

& m

anag

ers

Fe

mal

e 2-

-18

22-

Mal

e 29

-3-

434

Pro

fess

iona

ls

Fe

mal

e 35

-29

635

Mal

e 34

-33

1-43

Tech

nici

ans

& a

ssoc

iate

pro

fess

iona

ls

Fe

mal

e 13

9-

5111

62

Mal

e 12

5-

4619

65

Cle

rks

Fe

mal

e 65

-24

2145

Mal

e 26

-7

714

Ser

vice

& s

ales

wor

kers

Fem

ale

7-

1-

1

Mal

e 18

-2

-2

Tabl

e 12

.1: T

rain

ing

need

s id

entifi

ed,

1 A

pril

2011

to 3

1 M

arch

201

2 (c

ontin

ued)


263

Occ

upat

iona

l Cat

egor

ies

Gen

der

Empl

oym

ent a

s at

1 A

pril

2-11

Lear

ners

hips

Skill

s Pr

ogra

mm

es

& O

ther

Sho

rt

Cou

rses

Oth

er F

orm

s of

Tra

inin

g (e

.g B

ursa

ries,

Sc

hola

rshi

ps &

In

tern

ship

s)

Tota

l

Ski

lled

agric

ultu

re &

fi sh

ery

wor

kers

Fem

ale

--

--

-

Mal

e -

--

--

Cra

ft &

rela

ted

trade

s w

orke

rs

Fe

mal

e 4

--

--

Mal

e 4

--

--

Pla

nt &

mac

hine

ope

rato

rs &

ass

embl

ers

Fe

mal

e -

--

--

Mal

e -

--

--

Ele

men

tary

occ

upat

ions

Fem

ale

--

--

-

Mal

e -

--

--

Inte

rns/

tem

pora

ries

Fem

ale

39-

-41

41

Mal

e 31

--

3333

Gen

der s

ubto

tals

Fem

ale

--

--

-

Mal

e -

--

--

Tota

l

576

-24

115

439

5

Nat

ure

of In

jury

on

Dut

yN

umbe

rPe

rcen

tage

of T

otal

Req

uire

d ba

sic

med

ical

atte

ntio

n on

ly

150

Tem

pora

ry to

tal d

isab

lem

ent

150

Per

man

ent d

isab

lem

ent

--

Fata

l -

-

Tota

l 2

100

Tabl

e 12

.2: T

rain

ing

prov

ided

, 1 A

pril

2011

to 3

1 M

arch

201

2 (c

ontin

ued)

4.13

IN

JURY

ON

DU

TYTh

e fo

llow

ing

tabl

es p

rovi

de b

asic

info

rmat

ion

on in

jury

on

duty

.

Tabl

e 13

.1: I

njur

y on

dut

y, 1

Apr

il 20

11 to

31

Mar

ch 2

012


264

Proj

ect T

itle

Tota

l Num

ber o

f Con

sulta

nts

that

Wor

ked

on th

e Pr

ojec

tD

urat

ion:

Wor

k D

ays

Con

trac

t Val

ue in

Ran

d

Aud

iting

of m

onth

ly fu

el p

rice

adju

stm

ents

and

fuel

pric

e m

edia

sta

tem

ents

ad

min

iste

red

by D

oE fo

r tw

o ye

ars

22

year

s27

6 62

8.00

Han

dlin

g of

recr

uitm

ent a

nd a

ny o

ther

adv

ertis

emen

ts in

the

DoE

for a

per

iod

of tw

o ye

ars

42

year

sB

ased

on

perc

enta

ge d

isco

unts

R

3 00

0 00

0.00

Ser

vice

s of

Info

rmat

ion

Tech

nolo

gy (I

T) re

sour

ces

36

mon

ths

1 86

0 48

0.00

Aud

iting

of c

ompl

ianc

e to

the

Sou

th A

frica

n P

etro

leum

and

Liq

uids

Fue

ls

Cha

rter b

y oi

l com

pani

es a

nd a

sses

sing

its

impa

ct11

12 m

onth

s1

979

314.

00

Dev

elop

men

t of a

20-

year

Liq

uids

Fue

ls R

oad

Map

56

mon

ths

4 55

9 25

6.00

Det

erm

inin

g of

an

appr

opria

te le

vel o

f ret

urn

on a

sset

s fo

r bio

etha

nol a

nd

biod

iese

l1

4 m

onth

s54

0 00

0.00

Ass

essi

ng th

e bl

endi

ng v

alue

of b

ioet

hano

l with

pet

rol a

t loc

al re

fi ner

ies

and

depo

ts4

6 m

onth

s2

500

000.

00

Ren

derin

g of

tech

nica

l exp

ertis

e w

ith th

e de

velo

pmen

t of r

elev

ant e

nerg

y m

odel

s to

info

rm th

e de

velo

pmen

t of t

he In

tegr

ated

Ene

rgy

Pla

n (IE

P) f

or

Sou

th A

frica

133

mon

ths

2 66

7 60

0.00

The

co-s

ourc

ing

of in

tern

al a

udit

activ

ities

at D

oE5

2 m

onth

s65

6 40

0.00

App

oint

men

t of a

ser

vice

pro

vide

r to

assi

st w

ith th

e fi n

anci

al y

ear p

roce

sses

as

at 3

1 M

arch

201

11

2 m

onth

s25

9 75

8.58

Tota

l Num

ber o

f Pro

ject

sTo

tal I

ndiv

idua

l Con

sulta

nts

Tota

l Dur

atio

n:

Wor

k da

ysTo

tal C

ontr

act V

alue

in R

and

1049

2 67

0 da

ys18

299

436

.58

4.14

U

TILI

SATI

ON

OF

CO

NSU

LTA

NTS

Tabl

e 14

.1: R

epor

t on

cons

ulta

nt a

ppoi

ntm

ents

usi

ng a

ppro

pria

ted

fund

s


265

Tabl

e 14

.2: A

naly

sis

of c

onsu

ltant

app

oint

men

ts u

sing

app

ropr

iate

d fu

nds,

in te

rms

of H

DIs

Proj

ect T

itle

Perc

enta

ge

Ow

ners

hip

by H

DI

Gro

ups

Perc

enta

ge

Man

agem

ent b

y H

DI G

roup

s

Num

ber o

f Con

sulta

nts

from

HD

I Gro

ups

that

W

ork

on th

e Pr

ojec

t

Aud

iting

of m

onth

ly fu

el p

rice

adju

stm

ents

and

fuel

pric

e m

edia

sta

tem

ents

adm

inis

tere

d by

DoE

fo

r tw

o ye

ars

53.4

053

.40

2

Han

dlin

g of

recr

uitm

ent a

nd a

ny o

ther

adv

ertis

emen

ts in

the

DoE

for a

per

iod

of tw

o ye

ars

51 &

100

51 &

100

4

Ser

vice

s of

IT re

sour

ces

100

100

3

Aud

iting

of c

ompl

ianc

e to

the

Sou

th A

frica

n P

etro

leum

and

Liq

uids

Fue

ls C

harte

r by

oil

com

pani

es a

nd a

sses

sing

its

impa

ct99

994

Dev

elop

men

t of a

twen

ty-y

ear l

iqui

ds fu

els

Roa

d M

ap10

010

01

Det

erm

inin

g of

an

appr

opria

te le

vel o

f ret

urn

on a

sset

s fo

r bio

etha

nol a

nd b

iodi

esel

--

-

Ass

essi

ng th

e bl

endi

ng v

alue

of b

ioet

hano

l with

pet

rol a

t loc

al re

fi ner

ies

and

depo

ts66

662

Ren

derin

g of

tech

nica

l exp

ertis

e w

ith th

e de

velo

pmen

t of r

elev

ant e

nerg

y m

odel

s to

info

rm th

e de

velo

pmen

t of t

he In

tegr

ated

Ene

rgy

Pla

n (IE

P) f

or S

outh

Afri

ca-

--

The

co-s

ourc

ing

of in

tern

al a

udit

activ

ities

at D

oE10

010

05

App

oint

men

t of a

ser

vice

pro

vide

r to

assi

st w

ith th

e fi n

anci

al y

ear p

roce

sses

as

at 3

1 M

arch

20

113.

283.

28-


266

Tabl

e 14

.3: R

epor

t on

cons

ulta

nt a

ppoi

ntm

ents

usi

ng d

onor

fund

s

Proj

ect T

itle

Tota

l Num

ber o

f C

onsu

ltant

s th

at

Wor

ked

on th

e Pr

ojec

t

Dur

atio

n: W

ork

Day

sD

onor

and

Con

trac

t Va

lue

in R

and

Coo

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Section 5Other Information


268

ACRONYMS

ABET Adult Basic Education and TrainingADAM Approach to Distribution Assets ManagementAE African ExplorationAEMFC African Exploration MiningAENE Adjusted Estimates of National ExpenditureAFREC African Energy CommissionAGSA Auditor-GeneralAPP Annual Performance PlanAPPA African Petroleum Producers’ AssociationARV Antiretroviral ASME American Society of Mechanical EngineersBAC Bid Adjudication CommitteeBAS Basic Accounting SystemBEE Black Economic EmpowermentBFP Basic Fuel PriceC-3E Clean Energy Education and EmpowermentCARA Criminal Assets Recovery AccountCCS Carbon Capture and StorageCDM Clean Development MechanismCEF Central Energy FundCEM Clean Energy MinisterialCEO Chief Executive Offi cerCFO Chief Financial Offi cerCHIETA Chemical Industries Education and Training AuthorityCMP 7 Conference of the meeting of the Parties to the Kyoto ProtocolCOO Chief Operating Offi cerCOGTA Department of Cooperative Governance and Traditional AffairsCOP 17 17th Conference of the PartiesCPIX Consumer Price Index CSLF Carbon Sequestration Leadership ForumCSP Concentrated Solar PowerDBSA Development Bank of Southern AfricaDDG Deputy Director-GeneralDEA Department of Environmental AffairsDFI Development Finance InstitutionsDG Director-GeneralDIO Deputy Information Offi cersDIRCO Department of International Relations and CooperationDME Department of Minerals and EnergyDMR Department of Mineral ResourcesDNA Designated National AuthorityDoE Department of EnergyDoRA Division of Revenue ActDPW Department of Public WorksDRC Democratic Republic of Congo


269

DRDLR Department of Rural Development & Land ReformDSM Demand-Side ManagementDTI Department of Trade and IndustryECS Energy Conservation SchemeEDC Energy Development CorporationEDI Electricity Distribution IndustryEDIH Electricity Distribution Industry HoldingsEEDSM Electricity Effi ciency Demand-Side Management ProjectEETIR Energy Effi ciency Tax Incentive RegulationsEFT Electronic Fund TransferEIA Environmental Impact AssessmentEIB European Investment BankEIP Environment Implementation PlanEMP Environmental Management PlanENE Estimates of National ExpenditureERA Electricity Regulation ActERM Enterprise Risk ManagementEWSETA Energy and Water Sector Education and Training AuthorityEXCO Executive CommitteeFBE Free Basic ElectricityGCIS Government and Communication & Information SystemGIAMA Government Immovable Asset Management ActGTL Gas to LiquidGW Gigawatt GWh Gigawatt hoursHDI Historically Disadvantaged IndividualsHEQ Health, Environment and QualityHOA Home Owners AllowanceHQ HeadquartersHR Human ResourcesHRD Human Resource DevelopmentIAEA International Atomic Energy AgencyIBT Inclining Block TariffsICT Information and Computer TechnologyIEA International Energy AgencyIEC Integrated Energy CentresIEE Industrial Energy Effi ciencyIEP Integrated Energy PlanIFMS Integrated Financial Management SystemiGAS South African Gas Development CompanyINEP Integrated National Electrifi cation ProgrammeIPAP Industrial Policy Action PlanIPP Independent Power ProducersIRENA International Renewable Energy AgencyIRP Integrated Resource PlanISMO Independent Systems and Market OperatorIT Information TechnologyKbpd Kilo barrels per day


270

LEU Low Enriched UraniumLNG Liquefi ed Natural GasLOC Local Organising CommitteeLPG Liquefi ed Petroleum GasLTMS Long Term Mitigation ScenariosMANCO Management CommitteeMDG Millennium Development GoalM&E Monitoring, Evaluation and Reporting UnitMoU Memorandum of UnderstandingMPSA Minister of Public Service Administration MTEF Medium Term Expenditure FrameworkMV Medium VoltageM&V Measurement and Verifi cationMW Mega WattMYPD Multi-Year Price DeterminationNBI National Business InitiativeNCCRWP National Climate Change Response White PaperNECSA Nuclear Energy Corporation of South AfricaNEEA National Energy Effi ciency AgencyNEES National Energy Effi ciency StrategyNEMA National Environmental Management ActNERSA National Energy Regulator of South AfricaNIA National Intelligence AgencyNIASA Nuclear Industry Association of South AfricaNMPP New Multi-Product PipelineNNEECC National Nuclear Energy Executive Coordination CommitteeNNR National Nuclear RegulatorNRF National Revenue FundNRWDI National Radioactive Waste Disposal InstituteNSD Nuclear Skills DevelopmentNT National TreasuryNTeMBI Nuclear Technologies in Medicine and the Biosciences IncentiveNVE Norwegian Water and Energy DirectorateOPCSA Oil Pollution Control South AfricaORTIA O.R. Tambo International AirportPAA Public Audit ActPAIA Promotion of Access to Info Act, Act No. 2 of 2000PAJA Promotion of Administrative Justice Act, Act No. 3 of 2000PALAMA Public Administration Leadership and Management AcademyPASA Petroleum Agency SAPBMR Pebble Bed Modular ReactorPFMA Public Finance Management ActPICC Presidential Infrastructure Coordinating CommissionPIN Project Information NotesPMDS Performance Management Development System POA Programme of ActionPPA Petroleum Products ActPPALS Petroleum Products Licensing System


271

PPC Parliamentary Portfolio CommitteePPP Public Participation ProgrammePSR Public Service RegulationsPV Photo VoltaicR&D Research and DevelopmentRAS Regulatory Accounts SystemREFIT Renewable Energy Feed-in TariffREFSO Renewable Energy Finance & Subsidy Offi ceRE-IPP Renewable Energy Independent Power ProducersRFI Request for InformationRFP Request for ProposalsRMC Risk Management CommitteeRMG Risk Management CommitteeRPM Radiation Portal MonitorsSACCCS South African Centre for Carbon Capture and StorageSADC Southern African Development CommunitySANEDI South African National Energy Research and Development InstituteSANERI South African Natural Energy Research InstituteSAPS South African Police ServiceSARi South African Renewable Energy InitiativeSASCO South African Classifi cation of OccupationsSASDA South African Supplier Development AgencySCM Supply Chain ManagementSCOPA Standing Committee on Public AccountsSETA Skills Education Training AuthoritySFF Strategic Fuel FundSHS Solar Home SystemsSITA State Information Technology AgencySMME Small, Micro, and Medium EnterprisesSMS Senior Management ServiceSNEL Societe Nationale d’ Electricité of the DRCSOC State-Owned CompanySOE State-Owned EntitySRM Strategy and Risk ManagementSRS Security Risk ManagementSSAC State System of Accounting and ControlSWC Soccer World CupSWH Solar Water HeatersToR Terms of Reference TWh Terawatt hoursUNFCCC United Nations Framework Convention on Climate ChangeUS United StatesVPN Virtual Private NetworkWAN Wide Area NetworkWASA Wind Atlas Project of South AfricaWINSA Women in Nuclear South AfricaWOESA Women in Oil and Energy South Africa


272

INDEX OF TABLES AND FIGURES

Section 1

Figure 1 Approved Organisational Structure (as at 1 April 2010) 3

Figure 2 Interim Organisational Structure (Implemented on 1 April 2010) 3

Section 2

Table 1 Vote funds 22

Table 2 Appropriation per Programme – 31 March 2012 27

Table 3 Key achievements/highlights for 2011/12 28

Table 4 Detail of Departmental Receipts 33

Table 5 Departmental expenditure: Approved rollover 2011/12 34

Table 6 Transfer payments 35

Table 7 The DoE’s response to the 12 Government Outcomes 39

Table 8 The DoE’s response to the MDGs 40

Table 9 Sub-programme 1: Executive Support 41

Table 10 Sub-programme 2: Finance, Information and Supply Chain Management 44

Table 11 Sub-programme 3: Corporate Service 49

Table 12 Sub-programme 4: Chief Operating Offi cer Branch 56

Table 13 Programme 2: Hydrocarbons & Energy Planning 68

Table 14 Programme 3: Electricity, Nuclear and Clean Energy 75

Section 4

Table 1.1 Programme 1 – Administration: Corporate Services Branch 208

Table 1.2 Programme 2 – Hydrocarbons and Energy Planning Branch 224

Table 1.3 Programme 3 – Electricity, Nuclear and Clean Energy Branch 226

Table 2.1 Personnel costs by programme, 2011/12 231

Table 2.2 Personnel costs by salary band, 2011/12 232

Table 2.3 Salaries, overtime, home owners allowance and medical assistance by programme, 2011/12 233

Table 2.4 Salaries, overtime, home owner s allowance and medical assistance by salary band, 2011/12 233


273

Table 3.1 Employment and vacancies by programme, 31 March 2012 234

Table 3.2 Employment and vacancies by salary band, 31 March 2012 234

Table 3.3 Employment and vacancies by critical occupation, 31 March 2012 235

Table 4.1 Job evaluation, 1 April 2011 to 31 March 2012 237

Table 4.2 Profi le of employees whose salary positions were upgraded due to their posts being upgraded, 1 April 2011 to 31 March 2012 238

Table 4.3 Employees whose salary level exceed the grade determined by job evaluation, 1 April to 31 March 2012 (in terms of PSR 1.V.C.3) 238

Table 4.4 Profi le of employees whose salary level exceeded the grade determined by job evaluation, 1 April 2011 to 31 March 2012 (in terms of PSR 1.V.C.3) 238

Table 5.1 Annual turnover rates by salary band for the period 1 April 2011 to 31 March 2012 239

Table 5.2 Annual turnover rates by critical occupation for the period 1 April 2011 to 31 March 2012 240

Table 5.3 Reasons why staff is leaving the Department 241

Table 5.4 Granting of employee initiated severance packages 242

Table 5.5 Promotions by critical occupation 242

Table 5.6 Promotions by salary band 244

Table 6.1 Total number of employees (including employees with disabilities) per occupational category (SASCO) as on 31 March 2012 244

Table 6.2 Total number of employees (including employees with disabilities) per occupational band as on 31 March 2012 245

Table 6.3 Recruitment for the period 1 April 20 31 March 2012 246

Table 6.4 Promotions for the period 1 April 20 31 March 2012 247

Table 6.5 Terminations for the period 1 April 20 31 March 2012 248

Table 6.6 Disciplinary action for the period 1 April 20 31 March 2012 248

Table 6.7 Skills development for the period 1 April 20 31 March 2012 249

Table 7.1 Performance rewards by race, gender and disability, 1 April 2011 to 31 March 2012 249

Table 7.2 Performance rewards by salary band for personnel below Senior Management Service, 1 April 2011 to 31 March 2012 250

Table 7.3 Performance rewards by critical occupations, 1 April 2011 to 31 March 2012 251

Table 7.4 Performance-related rewards (cash bonus) by salary band for Senior Management Service 252

Table 7.5: Information for the performance cycle 2011/2012 253

Table 8.1 Foreign workers, 1 April 2011 to 31 March 2012, by salary band 254


274

Table 8.2 Foreign workers, 1 April 2011 to 31 March 2012, by major occupation 254

Table 9.1 Sick leave, 1 January 2011 to December 2011 255

Table 9.2 Disability leave (temporary and permanent), 1 January 2011 to December 2011 255

Table 9.3 Annual leave, 1 January 2011 to December 2011 256

Table 9.4 Capped leave, 1 January 2011 to December 2011 256

Table 9.5 Leave payouts for the period 1 April 2011 to 31 March 2012 257

Table 10.1 Steps taken to reduce the risk of occupational exposure 257

Table 10.2 Details of health promotion and HIV/AIDS programmes 257

Table 11.1 Collective agreements, 1 April 2011 to 31 March 2012 258

Table 11.2 Misconduct and disciplinary hearings fi nalised, 1 April 2011 to 31 March 2012 259

Table 11.3 Types of misconduct addressed at disciplinary hearings 259

Table 11.4 Grievances lodged for the period 1 April 2011 to 31 March 2012 260

Table 11.5 Disputes lodged with Councils for the period 1 April 2011 to 31 March 2012 260

Table 11.6 Strike actions for the period 1 April 2011 to 31 March 2012 260

Table 11.7 Precautionary suspensions for the period 1 April 2011 to 31 March 2012 261

Table 12.1 Training needs identifi ed, 1 April 2011 to 31 March 2012 261

Table 12.2 Training provided, 1 April 2011 to 31 March 2012 262

Table 13.1 Injury on duty, 1 April 2011 to 31 March 2012 263

Table 14.1 Report on consultant appointments using appropriated funds 264

Table 14.2 Analysis of consultant appointments using appropriated funds, in terms of HDIs 265

Table 14.3 Report on consultant appointments using donor funds 266

Table 14.4 Analysis of consultant appointments using donor funds, in terms of HDIs 266

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