1 DEPARTMENT OF ENERGY 2 PPC PRESENTATION ON THE 3 rd QUARTER PERFORMANCE PROGRAMME 1 :SUB PROGRAMME: CORPORATE SERVICES Mr George Mnguni Deputy Director General DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme - Corporate Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions Implementation of phase 2 of the HR Plan and compile a report on 1st phase of the HR plan progress. Maintenance of an acceptable vacancy rate of less than 15% by the end of the quarter. Achieved. Vacancy rate 9.49% Submitted in hard copy on 3 October 2012 and on line on 5 October 2012 due to the on line date being moved to 31 January Submit EE report to DoL by 1 October Achieved. 3 DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme - Corporate Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions Review of phase 1 progressDo 1st cycle performance reviews Partially achieved.LMC Schedule circulated but meetings postponed on request of the relevant components. Continue implementation of labour problem analysis interventions in line with the outcome of the review of phase one of the HR plan. AchievedAnalysis has been completed and interventions being implemented. Alignment of HR policies and procedures with all relevant government HR directives. SOP - achieved, Policies partially achieved Two policies are still in the DBC for consideration 4 DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme - Corporate Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions Review of phase 1 progressMaintain electronic HR Calendar of Events, HR Contact list, HR newsletter inputs, HR policies and Prescripts as per Business Plan. Achieved Matching and placement of employees to the new structure. Not AchievedAwaiting structure approval Commencement of the implementation of Framework for Occ classification and management of staff. Not AchievedDependant on the implementation of the new structure (see above) 5 DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme - Corporate Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions Review of phase 1 progressFinalisation of the implementation of the JE process for new posts on the approved structure Partially achieved.Remaining posts to be presented at the next JE Panel meeting. Maintain a Management Information Systems report on HR info. Achieved Establish and Maintain HR Forum Implementation of the second phase of the HRD Strategy Achieved 6 DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme - Corporate Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 7 Relocation of identified DoE Offices to new accommodation Identified DoE offices relocated to new accommodation Achieved DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme - Corporate Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions Development and approval of Immovable asset management plan. Final Plan approved by the DG. Achieved Facilities Management Framework implemented Facilities Management Plan implemented and monitored. Not AchievedDraft maintenance plan developed, but not yet approved. Maintenance Plan implemented and monitored. Not Achieved - see aboveDraft maintenance plan developed, but not yet approved. 8 DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme - Corporate Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 9 Records Management plan developed, approved and implemented. Draft Records Management Plan Submitted for consideration Partially achieved.Only draft available Phase 2 of the SRS plan implemented by 30 June 2012 and Review implementation. of the 1st phase. Draft policy and Standard Operating procedures consulted with the Stakeholders and review implementation of the 1st phase of SRS. Partially Achieved because the Policy drafted and are currently consulted on in the DBC Review of 1st phase? Not Achieved Policy waiting for DBC adoption Ongoing security screening of DoE staff Achieved DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme - Corporate Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 10 Maintenance of Vehicles for the HQ and Regional Offices Maintain functional Vehicles for the HQ and Regional Offices Achieved - Vehicles are sent for maintenance as per schedule and when the need arise. 100% of all requests received processed within prescribed or agreed timeframes. 100% of the following requests received processed within prescribed or agreed timeframes Achieved 100% Appeals cannot be finalised in time due to complete lack of capacity in the Unit. Currently only one senior legal officer and D: LS. This structure is impossible, and funding not addressed since 2010 DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme - Corporate Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions % of all requests received processed within prescribed or agreed timeframes. Draft and vet legislation including subordinate legislation administered by the Department Achieved 100% 2 received and dealt with, one Bill with OCSLA Comply with legal processes for conclusion of international agreements as set out in Chapter 5 of the 2006 Manual on Executive Acts of the President of the RSA; Achieved 100% 2 received and finalised DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme - Corporate Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions % of all requests received processed within prescribed or agreed timeframes. Vet contracts entered into by the Department and advise on implications Achieved 100% 16 received: 13 finalised in the quarter and 3 finalised in following quarter, all finalised within agreed timeframes Research and draft Legal Opinions; Achieved 100% 16 received and finalised in the quarter Process appeals to the Minister for decision Partialy Achieved 62% 17 received in this quarter and sent to Controller for response and to furnish Record, 13 Appeals finalised in Quarter. 8 Appeals still to be finalised by Legal Services DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme - Corporate Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions % of all requests received processed within prescribed or agreed timeframes. Manage all litigation for and against the; Department/Minister; an Achieved 100% 6 received. All dealt with in terms of Court Rules in line with Departmental instructions Ensure that PAJA and PAIA complied with Achieved 100% 10 received and finalised within prescribed time frames (finalisation may have extend to next quarter) DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme - Corporate Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 14 Implement, align and evaluate DoE communication strategy in line with the National priorities Implement Communication Strategy and Plan in line with the operational plan. Partly AchievedBudgetary Constraints prevent full implementation. Implement policy and procedures Partly Achieved5 Standard Operating Procedures submitted, 4 to be revised and re-submitted DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme - Corporate Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 15 Develop a Resource Centre Strategy and Plan Implement Resource Centre Strategy as p[w]er Operational Plan AchievedStrategy and Plan developed. DEPARTMENT OF ENERGY 16 PPC PRESENTATION ON THE 3 rd QUARTER PERFORMANCE PROGRAMME 1 :SUB PROGRAMME: FINANCIAL MANAGEMENT SERVICES Ms Y Chetty Chief Financial Officer DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Financial Mgt Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 17 Submit 4 budget submissions per annum to NT Submit 1 budget submission to NT Achieved: ENE submitted to NT in December 2012 No challenges anticipated Submission of 12 (monthly IYM) reports per annum Submission of 3 (monthly) IYM reports Achieved: IYM Reports completed and submitted to NT in October, November and December 2012 No challenges anticipated Submission of 12 (monthly) Budget expenditure statements to Branches Submission of 3 (monthly) Budget expenditure statements to Branches Achieved: Budget expenditure statements were drawn from BAS and submitted to all Branches in October, November and December 2012 No challenges anticipated DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Financial Mgt Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 18 Rate(%) of compliance with Revenue surrender to NT Surrender 100% revenue collected and classified to NT as per NT Schedule Achieved: All revenue deposited into the Department's bank account was classified and submitted to NT as per NT Schedules No challenges anticipated Number of Debtors age analysis reports compiled Compile 3 debtors age analysis per quarters. Achieved: Monthly age analysis compiled for October, November and December 2012 No challenges anticipated Number of Monthly Bank reconciliation completed and submitted to NT Complete and submit 3 Bank Reconciliations per quarter Achieved: Bank reconciliation completed and submitted to NT in OctIober, November and December 2012 No challenges anticipated DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Financial Mgt Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 19 Perform 12 asset reconciliations per annum Perform 3 (monthly) asset reconciliations per quarter. Achieved: Asset reconciliations compiled in October, November and December 2012 No challenges anticipated Conduct 16 Assets verifications per annum Conduct 8 asset verifications Achieved: Conducted 4 asset verifications in the 3rd quarter No challenges anticipated 100% transfers as per approved monthly schedule from transferring Branches 100% payment of transfers as per approved monthly schedule from transferring Branches Achieved: 100% payment of transfers were effected as per approved monthly schedule from transferring Branches No challenges anticipated DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Financial Mgt Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 20 Submit 12 Reports to NT, at 100% rate of compliance Submit 3 (monthly) Reports to National Treasury by 7th of each month on compliance and exceptions on 30 days payments. Achieved: Sumitted Reports to NT on on compliance and exceptions on 30 days payments by the 7th of each month in the 3rd quarter No challenges anticipated Submit 12 compliance reports annually Submit 3 (monthly) compliance reports to NT Achieved: The October, November and December 2012 Compliance Reports have been completed, approved and submitted to National Treasury by the due date No challenges anticipated DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Financial Mgt Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 21 Submit 4 (quarterly) Interim Financial Statements to NT Submit 1 Interim Financial Statements to National Treasury Achieved: The December 2012 Interim Financial Statement were completed, approved and submitted to National Treasury by the due date No challenges anticipated Develop and circulate 1 AFS Work Plan Develop AFS Work Plan by 31 December Achieved: The Draft AFS Plan was developed and submitted to AGSA for review Final Plan to be circulated in January 2013 Submit 2 Annual Financial Statements to NT and AGSA annually NoneNot applicable in Quarter 3 DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Financial Mgt Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions % Alignment of SCM policies to NT SCM prescripts Align SCM Policy as per Instruction Notes issued by NT, where applicable Partially Acieved: The SCM Policy is aligned to the TR and all issued Instruction Notes from NT, but is also currently under review for further enhancements No challenges anticipated 100% Compliance to the SCM checklist All (100%) orders generated only after SCM checklist criteria is met. Partially Acieved: Processes are being put in place to ensure 100% Compliance Achievement will be delayed as end users has to be trained in process to ensure compliance Conduct 2 of awareness and training sessions on SCM matters per annum Conduct 1 awareness and training sessions on SCM matters Achieved: Workshop held with SCM officials in October 2012 and Information session held with travel bookers in November 2012 No challenges anticipated DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Financial Mgt Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 23 Conduct 12 reviews of commitment and accrual register per annum Conduct 3 (monthly) reviews of commitment and accrual register Achieved: Review of the Commitment and Accrual Register has been conducted in October, November and December 2012 No challenges anticipated Submit 1 procurement plan per annum NoneNot applicable in Quarter 3 Perform 1 Update to the Supplier database per annum Update supplier database Achieved: The Supplier Database was updated monthly in the 3rd Quarter No challenges anticipated DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Financial Mgt Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 24 Perform 4 warehouse inventory counts and reconciliation per annum Perform 1 warehouse inventory count and reconciliation per quarter Achieved: One warehouse and inventory count was conducted in Quarter 3 No challenges anticipated Achieve 95% Wide Area Network Availability Maintain a 95% Wide Area Network Availability Achieved: Dataline was upgraded to improve the network availability to 95% and above in the 3rd quarter No challenges anticipated Achieve 95% Server Availability Maintain a 95% Server Availability Achieved: Server was available at 95% and above in the 3rd quarter No challenges anticipated DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Financial Mgt Services Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 25 Develop 1 Petroleum Licensing Lodgement Module Develop and deploy 1 license lodgement module as per project schedule Achieved: Change of Hands (Retail and Manufacturing) and Temporary License (Retai) has been defined and developed. No challenges anticipated Conduct 9 site inspections to assess site readiness for installation of VPN data lines at regional offices Conduct 3 site inspections to assess site readiness for installation of VPN data lines at regional offices. Achieved: The site inspections were succesfully done and lines are ready to be installed No challenges anticipated DEPARTMENT OF ENERGY 26 PPC PRESENTATION ON THE 3 rd QUARTER PERFORMANCE PROGRAMME 1 :SUB PROGRAMME: GOVERNANCE & COMPLIANCE Mr L Mulaudzi Acting Chief Operating Officer DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Governance & Compliance Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 27 Develop and implement an Enterprise-wide Risk Management system of the Department as required by statutory and regulatory prescripts. Analyse the implementation of branch mitigations plans by way of 1 meeting with risk management structures by 31 December Achieved - Risk Management Committee meeting held on 12 November Compile and present Risk Strategy and Implementation Plan Status Report for first 2 quarters of 2012/13 to oversight bodies by 31 December Achieved - Risk Management Committee meeting held on 12 November 2012. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Governance & Compliance Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 28 Develop and implement an Enterprise-wide Risk Management system of the Department as required by statutory and regulatory prescripts. Facilitate the effective implementation of risk mitigation strategies by Branches, by 31 December AchievedRisk Registers and Risk Response Action Plan circulated to Management. Human Capital capacity constraints which led to Control self-Risk Assessment not to be conducted. Acquired Risk Management Tool (Barn Owl) will assist in correcting this constraints. Present 1 progress report on the effectiveness of the implementation plan of the mitigation strategies by 31 December 2012 AchievedRisk Registers and Risk Response Action Plan circulated to Management. Human Capital capacity constraints which led to Control self-Risk Assessment not to be conducted. Acquired Risk Management Tool (Barn Owl) will assist in correcting this constraints. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Governance & Compliance Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 29 Develop and implement an Enterprise-wide Risk Management system of the Department as required by statutory and regulatory prescripts. Review existing and identify new and emerging critical, strategic and operational risks in terms of the revised Strategic Plan and APP by 31 December 2012 AchievedBranches Breakaway sessions for preparation of Strategic Planning retreat were conducted. Strategic Planning Retreat held in November 2012 and APP revised. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Governance & Compliance Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 30 Develop and implement the Anti-Fraud and Corruption strategy within the Department as required by statutory and regulatory prescripts. Investigate all reported and detected allegations of fraud and corruption received via the hotline, whistle blowing mechanism, AG,IA and other sources AchievedNo cases received from NACH, Whistle Blowing Mechanism, AG, IA and other sources. Compile a report on the pending and resolved fraud cases and submit to relevant internal and external bodies.. Achieved - Response letter to PSC signed by DG DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Governance & Compliance Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 31 Annual review of Strategic Plan and develop the Annual Performance Plan and Service Delivery Improvement Plan. Second Draft of Annual Performance Plan submitted to NT by end December Achieved - 2nd draft submitted to National Treasury on 22 December Implement on a continuous basis the Monitoring and Evaluation Policies and Procedures of the Department of Energy 2nd quarter branch performance information received and processed via eight branch templates pre-populated with respective targets Achieved:All performance information reports for the second quarter were received, analysed and processed. The M&E compilation report was then produced and routed to all senior managers and Ministers for noting and approval. None DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Governance & Compliance Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 32 Implement on a continuous basis the Monitoring and Evaluation Policies and Procedures of the Department of Energy At least two performance information results verified per branch. Achieved: The M&E unit requested 24 verification documents across all eight branches; 16 were submitted, which constituted a 67% return rate. Constraints: Some branches do not honour the M&E' s request to submit verification documents which makes it more difficult to verify their performance. See Quarterly Performance Information Checklist. Corrective action: An intervention by all DDG's is required to ensure that all requested documents are submitted. Alternatively, explanations for non- submission should be provided. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Governance & Compliance Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 33 Facilitate and track the implementation of M&E recommendations via branch improvement plans on a quarterly basis At least eight recommendations (one per branch) for DoE performance improvement advanced in quarterly M&E compilation report Achieved: Sixteen recommendations were advanced for the 2nd quarter. None Eight pre-populated branch improvement plans distributed with previously approved M&E recommendations Partially achieved: The branch improvement plans template was developed but only distributed in January. None DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Governance & Compliance Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 34 Develop and implement the SOE Oversight Framework. SOE Oversight Framework submitted to the DG & Minister for approval Achieved: Framework was routed to the Minister for approval on the 14th November nd draft Strategic Plan submissions of schedule 3A SOEs reviewed, analysed and review notes sent to SOE Boards Partially Achieved: NNR submitted its Strategic Plan and APP on the 31st October 2012 and SANEDI submitted its Strategic Plan and APP on 30 November The NERSA Strategic Plan and APP were not resubmitted as it was confirmed that there were no changes from the submitted first drafts. Comments were not sent to entities as none were received for SANEDI and the NNR plans addressed the comments sent for the first draft. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Governance & Compliance Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 35 Develop and implement the SOE Oversight Framework. SOEs 2nd quarter performance reports reviewed, analysed and review notes and recommendations submitted to the Minister by 30 November 2012 Partially Achieved: 2nd quarter performance reports were all received within the prescribed period. Review meetings were held as scheduled between the 05th and 15th November Submissions were issued for the Minister's approval CEF review meeting was postponed due to non- availability of managers. NNR and NERSA submissions were routed to the Minister's office on 20 December. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Governance & Compliance Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 36 Develop and implement the SOE Oversight Framework. NNR Board appointments finalised by 30 November 2012 Achieved: The Minister approved the appointments of the NNR on 18 November 2012 and Cabinet ratified on 05 December The Minister approved the appointments of the NECSA Board in October 2012 and ratified by Cabinet on 24 October 2012. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 1 Sub Programme Governance & Compliance Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 37 Support the Minister, Deputy Minister, Department and Energy Sector with their obligations in terms of international engagements. Draft an International Relations implementation plan aligned to the approved strategy by 31 December Moved to the next financial year (2013/14). Draft implementation plan developed. International Relations Strategy approved by Department of Energy but awaiting ICTS Cluster approval. Refer draft International Strategy to GGCS cluster for inputs by 31 December 2012 Strategy was referred to the Global Governance Committee (GGC) for the ICTS cluster in September Still waiting for inputs, meet with GGCS on 26/02/2013 and most Departments approved the strategy except few officials from DIRCO. DIRCO officials have reservations on the strategy but do not want to put in writing their concerns and they keep on requesting for workshops without much substance coming out of discussions. DIRCO thinks the strategy is supposed to be their strategy not for Energy Department. DEPARTMENT OF ENERGY 38 PPC PRESENTATION ON THE 3 rd QUARTER PERFORMANCE PROGRAMME 2 : POLICY & PLANNING Mr O Aphane Deputy Director General DoE 3rd Qtr. 2012/13 Performance Information Report Programme 2 Policy & Planning Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 39 Draft IEP produced including reports outlining model results Draft IEP discussion completed Achieved Draft IEP discussion completed None Energy Statistics compiled and disseminated timeously (according to reporting obligations) Energy Statistics compiled and disseminated timeously according to reporting obligations (JODI,APPA) Partially Completed Monthly JODI Oil and JODI Gas Reports submitted None Commodity flows Partially Achieved Draft 2010 Energy Commodity Flow verified by IEA Discrepancies identified on coal sales data provided by DMR DoE 3rd Qtr. 2012/13 Performance Information Report Programme 2 Policy & Planning Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 40 Developed policy and plans for the expansion and rehabilitation of electricity transmission and distribution infrastructure Database with information of critical municipal infrastructure that is in need of rehabilitation Partially Completed Terms of reference for updating municipal infrastructure data developed and issued for procurement None Policy and plans for providing universal access to energy (grid and off-grid) Plans for Universal Access Integrating TDP (Transmission Development Plan) Distribution Masterplan, RE IPP and, off-grid programme. Achieved Universal access plan incorporating grid technologies being developed. TDP public consultation process underway. Distribution masterplan process yet to commence, pending the conclusion of window 2 of the REIPPP None DoE 3rd Qtr. 2012/13 Performance Information Report Programme 2 Policy & Planning Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 41 Policy options, implications and if viable, modalities for the introduction of ISMO Report indicating implications of various ISMO options. Partially Achieved Three scenarios considered for ISMO and report submitted in parliament None Developed strategy and plans for the introduction of new economic infrastructure as per the IEP/IRP IPP Implementation strategy put in place for renewables, gas, coal and hydro. Achieved Financial close for window 1 projects under the REIPP None Draft liquid fuels roadmap report completed Partially Achieved Preliminary draft liquid fuels report None DoE 3rd Qtr. 2012/13 Performance Information Report Programme 2 Policy & Planning Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 42 Developed strategy and plans for the expansion of LP Gas usage as a domestic modern thermal fuel Report outlining LP Gas prices over the past 12 months. Partially Achieved Gazzetted maximum refinery gate price discussion document completed None Development of coal and gas policy documents including the development of clean coal technology options Coal supply engagement document drafted for public consultation Partially Achieved Completed Preliminary coal supply engagement document drafted None DoE 3rd Qtr. 2012/13 Performance Information Report Programme 2 Policy & Planning Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 43 Developed policy options for the pricing of electricity, gas and coal. Electricity tariff trajectory aligned with MYPD3. Achieved High level electricity pricing policy review completed in respect of parameters that impact tariffs, and MYPD3 aligned to those parameters. Nersa approved tariff trajectory aligned to these parameters None Electricity Pricing Policy choices formally communicated to Nersa for MPD3 Achieved Ministerial letter submitted to NERSA to clarify EPP position DoE 3rd Qtr. 2012/13 Performance Information Report Programme 2 Policy & Planning Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 44 Develop policy and amendments to regulatory framework (Petroleum Products Act, Gas Act, Electricity Regulation Act, National Energy Regulator Act) to improve governance and operational efficiencies of regulated entities Legislation introduced in Parliament Achieved ISMO Bill in Parliament Partially achieved ERA, NERA in Nedlac for consultation None Developed strategy and plan for the development of the Solar Park concept Conduct environmental, geotechnical and feasibility studies Partially Achieved Procurement of service providers completed Site access secured with the municipality for the hosting of the solar park Achieved Site Access secured through an MOU with the Municipality DEPARTMENT OF ENERGY 45 PPC PRESENTATION ON THE 3 rd QUARTER PERFORMANCE PROGRAMME 3 : PETROLEUM REGULATION Mr T Maqubela Deputy Director General DoE 3rd Qtr. 2012/13 Performance Information Report Programme 3 Petroleum & Petroleum Regulations Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 46 90% Partially Achieved For 1 October 2012 to 31 December 2012, the number of Petroleum Licence Applications processed are as follows: Evaluated = 37 NTI Accepted = 197 (all licence types received during the quarter). Finalised applications by the Controller: Granted = 35 Refused = 2 December 2012 Only 82 applications were processed. Main challenges 1. Lack of information or insufficient information. 2. PPALS inefficiencies which resulted in the manual tracking of applications. 3. Previous years appeals backlog, are being processed and some of the outcomes from Legal Services recommending re-evaluation. 4.Quality of supporting documents required to finalize analysis of applications are in most cases substandard DoE 3rd Qtr. 2012/13 Performance Information Report Programme 3 Petroleum & Petroleum Regulations Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions % compliance rate by the Controller on finalising all applications within 90 days excluding Site and Retail NTI applications. 100% Partially Achieved For 1 October 2012 to 31 December 2012, the number of Petroleum Licence Applications processed are as follows: Evaluated = 393 Accepted = 197 (all licence types received during the Quarter) Finalised applications by the Controller: Granted = 76 Refused = 18 Issued = 99 Appeals = 11 December 2012 Only 82 applications were processed. Main challenges 1. Lack of information or insufficient information. 2. PPALS inefficiencies which resulted in the manual tracking of applications. 3. Previous years appeals backlog, are being processed and some of the outcomes from Legal Services recommending re-evaluation. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 3 Petroleum & Petroleum Regulations Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions Compliance Inspections conducted at the sites. Compliance Inspections conducted on 1075 (cumulative target) licensed sites. Achieved A total of 417 site inspections were conducted in this quarter; giving us 1250 cumulative site inspections Number of fuel samples tested for compliance to fuel specifications and standards. 810 (cumulative target) fuel samples tested for compliance with fuel specifications and standards. Not Achieved No fuel samples and testing conducted There are no funds for this function DoE 3rd Qtr. 2012/13 Performance Information Report Programme 3 Petroleum & Petroleum Regulations Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 49 Fuels stock levels monitored and corrective action to avoid distribution shortages coordinated. n/aAchieved 1. A total of 12 Logistics Planning Team meetings were held during the 3rd Quarter. 2. Natref was on the planned shutdown from 10 October - 24 November During that period the jet fuel was supplied via the DJP from the coast to ORTIA. The Heads od Supply managers held weekly Video-conference to discuss contigency plans and update the jet fuel stock progression spreadsheet. ACSA took a decision to ration the airlines by 20% until the stock level reached Target has been moved to business plan because it is administrative in nature. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 3 Petroleum & Petroleum Regulations Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions % of arbitration notices issued within the 14 day turnaround time for processing 100% compliance Achieved 02 arbitration requests were received and facillitated within 14 working days during this quarter resulting in 100% compliance; Arbitration requests were facilitated and closed within 14 working days Finalize public complaints within 14 working days. n/a Achieved 07 public complaints were facilitated within 14 working days All complaints were resolved within 14 working days DoE 3rd Qtr. 2012/13 Performance Information Report Programme 3 Petroleum & Petroleum Regulations Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 51 A system of corrective action for non-compliance with the Liquid Fuels Charter and technical, legal and commercial licensing conditions developed, maintained and implemented. n/a Done Conduct a desktop study on Basic Fuel Price (BFP). Progress Report on the review of the BFP. Achieved The Department held meetings with 2 International Pricing Agency, namely, Platts and Argus to discuss global pricing matters. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 3 Petroleum & Petroleum Regulations Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 52 Two reports produced on the implementation of Regulatory Accounting System. Submit first report on Wages adjustments. Achieved Revised RAS margins based on 2011 financial data implemented in December Published Bio-fuels manufacturing support mechanism Progress report Partially Achieved Awaiting confirmation of the financial support to be announced by the Minister of Finance in his Budget Speech in February 2013 Awaiting confirmation of the financial support to be announced by the Minister of Finance in his Budget Speech in February 2013 Promulgation of a fixed retail margin for IP. Progress report on the Road Shows to solicit inputs on the draft Regulations. Partially Achieved Only one stakeholder engagement done in the North West Region. The roll out plan is scheduled to be finalised by 26 March 2013. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 3 Petroleum & Petroleum Regulations Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 53 Pricing of Petroleum Products Administered. n/a Achieved Fuel prices adjusted on the first Wednesday in October, November and December 2013 as planned. Draft new empowerment framework. n/a Target moved to Programme 2 Nine (9) Petroleum Products Act and Licensing Awareness campaigns conducted per annum. Seven (7) cumulative target of awareness campaigns conducted Partially Achieved 5 cumulative target of awareness campaigns were conducted: 22 August 2012-KZN, 28 September Mpumalanga, 26 October Free State, 8 November Limpopo, 28 november North West. The old APP only had annual target of 9 campaigns which could be conducted at anytime during the financial year. The new quarterly targets were only approved in March However the annual target as at 31st of March 2013 will still be met. DEPARTMENT OF ENERGY 54 PPC PRESENTATION ON THE 3 rd QUARTER PERFORMANCE PROGRAMME 4 : NUCLEAR Mr Z Mbambo Deputy Director General DoE 3rd Qtr. 2012/13 Performance Information Report Programme 4 Nuclear Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 55 Completion of IAEA external Review of nuclear infrastructure Integrated Nuclear Infrastructure Review (INIR) Pre-Mission completed AchievedCompleted October 2012 Nuclear Energy Technical Committee (NETC) submission for nuclear procurement process specifications completed by March 2013 n/a Annual revised. Target previously not realistic and time bound. Cabinet approval outside department control. Changed due date from 2nd Qtr 2012/13 to 4 th Qtr 2012/13. Impact : Nuclear Project Plan 3 months adjustment. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 4 Nuclear Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 56 Operationalise the National Radioactive Waste Disposal Institute (NRWDI) by establishing the Board of Directors Board of Directors Appointment process started Achieved Board advert for both on Government Gazette and National Newspaper issued. Submission of CVs for Board nominations received. Enhance Security Measures at Strategic Points Site characterisationNot achievedORTIA: The approval of Site Characterisation report by ACSA officials was delayed due to final decision on the installation locations and the anticipated infrastructure future developments at the North Gate of ACSA Site. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 4 Nuclear Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions % of Authorisation applications received for nuclear material and related equipment processed within 8 weeks. 100% authorisations or denials for nuclear materials and related equipment issued within 8 weeks Not achievedDelay due to additional information required such as government to government assurances, outstanding information from clients. Four(4) Nuclear Safeguards Compliance inspections and one (1) audit conducted per year One (1) nuclear safeguards inspections conducted AchievedDOE officials have been attending monthly inspections (3 inspections this quarter). At this point we dont conduct any inspections as the inspectors have not been certified and we do not have equipment. This was reported in the second quarter to be fixed in the new APP. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 4 Nuclear Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 58 National Nuclear Regulator Act amendment Proposal Submitted to Cabinet. Chief State Law Advisor comments addressed Not achievedCSLA comments were still being addressed by the impacted stakeholders, hence the delay in consulting the amendments to FOSAD Draft Fund Bill for long term Radioactive Waste Management Submitted to Minister of Energy Submission to Chief State Law Advisor Completed AchievedDraft sent to CSLA in December 2012 Framework for withdrawal of the Safeguards function from a licensed operator completed Consultation report with other relevant stakeholders (DIRCO, IAEA) completed AchievedDirco still need to be consulted on this issue. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 4 Nuclear Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 59 Three (3) Nuclear community outreach events in this financial year. Including a media campaign n/a Three locations have been identified as critical and efforts should be focused on these to optimise resources. Media Campaign is the fourth intervention: Impact : Offset by media campaign. DEPARTMENT OF ENERGY 60 PPC PRESENTATION ON THE 3 rd QUARTER PERFORMANCE PROGRAMME 5: CLEAN ENERGY Mr O Aphane Deputy Director General DoE 3rd Qtr. 2012/13 Performance Information Report Programme 5 Clean Energy Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 61 Strategies and plans for various energy efficiency interventions Draft energy efficiency policy map Achieved None Energy efficiency regulations in place Achieved Energy Efficiency Regulations Drafted None Incentive schemes for energy saving (standard offer and tax rebates) Partially Achieved. Standard Offer policy partially completed Standard Offer cannot be implemented until the MYPD3 is in place Renewable energy/Energy efficiency campaign implementation and leadership network developed Achieved 1.4 TWh savings achieved (monitoring system to be completed under the Programmes and Projects) Not independently verified Draft EE Strategy second review approved by Cabinet Achieved EEDSM report completed and submitted to National Treasury None DoE 3rd Qtr. 2012/13 Performance Information Report Programme 5 Clean Energy Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 62 Clean development mechanism (CDM) applications processed in line with regulated time frames and negotiation of UNFCCC position Approval of position paper for COP 18 Achieved None CDM status report drafted Achieved Completed and UNFCCC Award Achieved None Annual Environmental management plan (for 2011/2012) submitted to DEA Achieved None DoE 3rd Qtr. 2012/13 Performance Information Report Programme 5 Clean Energy Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 63 Developed strategy and plan for Working for Energy Programme Developed strategy and plans for interventions in (i) biomass, (ii) biogas, (iii) biofuels Not Achieved. Report from SANEDI still outstanding DEPARTMENT OF ENERGY 64 PPC PRESENTATION ON THE 3 rd QUARTER PERFORMANCE PROGRAMME 6 : PROGRAMMES & PROJECTS Dr W Barnard Deputy Director General DoE 3rd Qtr. 2012/13 Performance Information Report Programme 6 Programmes & Projects Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 65 86% of formal backlog households (2.5m figure when INEP established in 2001) electrified ( connections annually with an additional 10,000 off grid connections). Eskom 65% of connections are completed. Partially Achieved, The year to date achieved connections under the Eskom program is connections for the F/Y 2012/13, the connections achieved between October 2012 to December 2012 is The connections including the rollovers to date (53%). Eskom targeted to achieve 100% by the end of March Municipalities 20% of the connections completed Achieved, The year to date achieved connections under the municipality program is (15%) connections for the F/Y 2012/13, the connections achieved between October 2012 to December 2012 is The connections including the rollovers to date (46%). Majority of the municipalities are still busy with the previous financial year projects. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 6 Programmes & Projects Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 66 86% of formal backlog households (2.5m figure when INEP established in 2001) electrified ( connections annually with an additional 10,000 off grid connections). Non-grid Programme 45% of connections completed. Achieved,The year to date non-grid connections achieved is 6582 (145%) against the target of connection. The connections achieved between October 2012 to December 2012 is 1162 The concessionaires are execting to deep rural area and some areas are not accessible. The accessibility lead to high cost per connection. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 6 Programmes & Projects Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 67 Two Integrated Energy Centres (IeCs) established and operational Construction of the 2nd IeC completed. Not achieved. Currently busy with the 2nd leC construction Jobs created in Energy Sector Report on data received for projects aimed at poverty alleviation interventions. Not Achieved,The directorate has not been able to perform this task. Due to capacity constrains, Monitoring of project and data capturing will only be done from the next financial year DoE 3rd Qtr. 2012/13 Performance Information Report Programme 6 Programmes & Projects Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 68 Monitoring of the mainstreaming / upliftment / empowerment of disadvantaged / vulnerable groups and rural areas and skills development and empowerment of the vulnerable groups per project and compilation of related energy sector statistics Report on data received for projects aimed at skills development and empowerment of the vulnerable groups. Not AchievedDue to capacity constrains, Monitoring of project and data capturing will only be done from the next financial year DoE 3rd Qtr. 2012/13 Performance Information Report Programme 6 Programmes & Projects Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 69 Identify, implement, manage and coordinate five Energy Awareness Campaigns One (1) campaign undertaken Achieved.The directorate exhibited during the closing of the 16 Days campaign in North West.(Rustenburg), More than 5000 Women Attended the event. Monthly project dashboards available to EXCO, MANCO and PICC secretariat Report on monthly basis on project progress to MANCO and EXCO meetings as well as PICC secretariat Not Achieved.Not part of current APP, part of revised 2013/14 target was not previously in document. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 6 Programmes & Projects Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 70 Obtain information relevant to planning, do physical inspections on the execution of Access to Energy projects as well as the implementation of Community Upliftment projects and liaise between beneficiaries of projects, service providers and the Department. Monitor the execution of projects via monthly regional reporting. Not AchievedTarget being incorporated into previous target. DoE 3rd Qtr. 2012/13 Performance Information Report Programme 6 Programmes & Projects Annual TargetQuarterly TargetProgress this Quarter Comments/ Corrective actions 71 Provide specialised assistance to the programme/project managers and management in general to apply project management principles, coordinating project information and report on projects in an unbiased manner within the DOE. Report on monthly basis on project progress to MANCO and EXCO meetings as well as PICC secretariat. Not Achieved Although the prototype system has been developed, the Department is still revising their Strategic and Annual Performance Plans. The information captured previously will have to be redone once the new Strategic Plan and APP are signed off and submitted Likelihood of Achievement Once the new Strategic Plan and APP are signed off and submitted, the system will be populated with the new information and used for 4th quarter reporting comparisons. Constraints Due to suspension of new structure implementation, one specific project might belong to various branches at once and is very difficult to keep track as various people are sometimes responsible for the same outcome on the same project. Thank You Ke ya leboga Ke a leboha Ke a leboga Ngiyabonga Ndiyabulela Ngiyathokoza Inkomu Ndi khou livhuha Dankie 72