department of energy presentation of the 2011/12 mtef strategic plan to the select committee on...

DEPARTMENT OF ENERGY

PRESENTATION OF THE 2011/12 MTEF STRATEGIC PLAN

TO THE SELECT COMMITTEE ON ECONOMIC

DEVELOPMENT Ms N Magubane

Director -General

1

Structure of the Presentation•DoE performance against the 2010 SONA•What informed our 2011/12 MTEF strategy

•Analysis and impact of the 2011/ 12 SONA•DoE and government outcomes•Outcome based strategic planning process• Situational analysis and the energy space/environment• Organisational environment

•Department strategic objectives•Policy development and reviews for 2011/12•2011/12 budget presentation•Branch presentations on 2011/12 focus areas

2

IntroductionMandate

Ensuring Secure and Sustainable provision of Energy for Socio Economic Development

•Mission•To regulate and transform the sector for the provision of

secure, sustainable and affordable energy•Vision 2014

•A transformed and sustainable energy sector with universal access to modern energy carriers for all by 2014

•Vision 2025•Improving our energy mix by having 30% of clean energy

by 2025

3

Performance of DOE against the 2010 SONA Objectives

Highlights:•Contribution to successful hosting of the 2010 FIFA World Cup- Electricity and Fuel Supply•Electrification of Households to effect Service Delivery. 195 479 grid and 8566 non-grid connections as at end March 2011•ISMO – Framework for IPP participation.

4

What informed our 2011/12 MTEF strategic plan

• 2011 State Of the Nation Address• Government outcomes – 6 signed by Minister•Government’s Outcome Based Strategic Planning approach•Situational analysis – energy space•Our organisational environment

5

Analysis of the 2011 SONA

•Emphasis on the need to Create Jobs•Focus on Energy Efficiency•Service Delivery with Electrification Focus•Rural Development•Need to Work Together with Private and Public Sector institutions•SADC, AU, IBSA and BRICSA and Role of Energy •Building Prosperity through Service Delivery

6

DoE and Government outcomes•Broaden approach beyond the signed agreements – DoE mandate cuts across •Minister signed the following delivery agreements

•Outcome 4: Decent employment through inclusive economic growth•Outcome 6: An efficient, competitive and responsive economic infrastructure network•Outcome 8: Sustainable human settlement and improved quality of household life•Outcome 10: Environmental assets and natural resources that are well protected and continually enhanced

7

Outcome based strategic planning •Department has adopted this approach a year earlier.•Approach focuses on the impact of our service delivery to the communities/end recipients•Focus on outcomes and outputs – emphasis on outcomes• Emphasis on government-wide outcomes oriented monitoring and evaluation, that is led by the Presidency• Strategic plan reflects broad strategic outcomes of government

8

Outcome based strategic planning

•Aligns strategic planning, budgeting, monitoring and evaluation; and reporting•Covers a 5 year period •Improves the management and reporting of performance information

9

Situational Analysis and the energy environment

Service delivery environment•Challenges of declining electricity generation capacity• Need to fast track interventions that will improve the power supply-demand situation•Government target of achieving 92% distribution penetration in accessing the electricity distribution grid by 2014• Stability of the electricity distribution infrastructure – and its financial impact

10

Situational Analysis and the energy environment

Service delivery environment•Growing demand on energy resources as the economy comes out of the recent crisis. •Constraints on the supply of liquid fuels especially to the economic hub of the inland market. • Impact of job losses and the urgent need to implement programmes that are labour intensive•Fast tracking the introduction of clean energy in the energy mix•Hosting of COP 17

11

SELECTIVE LIST OF PARTNERSHIPS IN THE ENERGY SECTOR IN SOUTH AFRICA

Bi-lateralsNorway, Sweden,

Switzerland, China, USA, Russia, Angola,

BRIC Major Economies Forum

Sustainable Energy: Climate Change Forums, UN,CSLF,CEM, IRENA, etc

MultilateralsBRICSA,EU, AU,

G20, IBSA, SADC, IEF, IEA

IAEA, APPA

Funding & Technology:China, EU, France, USA, Norway, World Bank &

Private & Sovereign Funds etc

Energy sectorInternational

Partners

Oil & Gas: Mozambique, Saudi

Arabia, Namibia, Nigeria, Angola,

Egypt, E.G, Brazil, Venezuela etc

Electricity: SADC

APPA

Nuclear:France, USA

China, Russia, S Korea, IAEA, AFCONE etc

Skills & Capacity: China , Japan, IEA,

IAEA etc

12

ORGANISATIONAL ENVIRONMENTOrganisational/Performance Environment•Capacity challenges (funding and personnel)•As we start the 2011/12 financial year, DoE will continue to operate at 52% human capacity within the interim structure•Gradual migration to the approved full structure during the MTEF starting mid 2011/12•Ministerial approval of the revised departmental structure – to be implemented during the MTEF period

13

DoE Strategic ObjectivesOLD STRATEGIC OBJECTIVES NEW/REVISEDEnsure energy security Energy supply is secure and demand is

well managed

Regulate the energy sector

Improved energy regulation and competition

Optimal utilization of energy resources

An efficient, competitive and responsible energy infrastructure network

Achieve universal access and transform the energy sector

Efficient and diverse energy mix for universal access within a transformed energy sector

Effective and efficient service delivery

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

Ensure sustainable development

Mitigation against, and adaptation to, the impact of climate change

Good corporate governance Good corporate governance for effective and efficient service delivery 14

Policy development and reviews 2011/12

Review and amend the following legislations:•National Energy Regulator Act, No. 4 of 2006 – improve the governance structure of NERSA•Electricity Regulator Act, No 4 of 2006 – provide for expropriation, improve licensing and address penalties•Petroleum Products Act, No. 120 of 1997 – to address regulatory gaps•Gas Act, No. 48 2001 – to include methane and gasses from other sources• Introduce the ISMO bill – to facilitate IPPs in the electricity generation sector

15

16

Thank you

Budget

Presentation of the Department of Energy’s 2011/12 MTEF budget

Ms Y Chetty

17

2010/11 BUDGET OVERVIEW

18

BUDGET OVERVIEW 2010/11

DETAILS Budget

Actual spend

31/03/2011

Actual % on budget

spend AvailableRands Million R'000 R'000 % R'000

Administration

127.5

121.3 95.1%

6.2

Hydrocarbons and Energy Planning

1,564.7

1,556.4 99.5%

8.3

Electricity, Nuclear and Clean Energy

431.7

408.6 94.6%

23.1

Associated services

3,524.8

3,403.9 96.6% 120.9

Total Budget - 2010/11

5,648.7

5,490.2 97.2% 158.5

2010/11 BUDGET OVERVIEW

19

BUDGET OVERVIEW 2010/11 - Major spending areas

DETAILS Budget

Actual spend

31/03/2011

Actual % on budget

spend AvailableRands Million R'000 R'000 % R'000

Major spending areas

Transfers and subsidies 5,394.7 5,253.3 97.4% 141.4

Compensation of Employees 143.3 142.8 99.7% 0.5

Goods and Services 105.3 90.3 85.8% 15.0

Payments for capital assets 5.4 3.8 70.4% 1.6

Totals major spending areas 5,648.7 5,490.2 97.2% 158.5

2010/11 POSSIBLE ROLL-OVER REQUEST

20

POSSIBLE REQUEST FOR ROLL-OVERS R'000Compensation of employees (not rolled over) 430Transfers and subsidies 141,400Renewable Energy Finance and Subsidy Office Programme (REFSO) 20,191Non-grid service providers (installation of non-grid technologies) 60,000EDIH - Funding for the National Electricity Response Team (NERT PMO) 5,000Other transfers from previous year roll-overs 56,209Goods and services 14,980IAEA membership fees and Electricity Policy- Socio economic household study 6,424National Electricity Response Team (NERT PMO) and Designated National Authority (DNA)- United Nations Framework Convention on Climate Change 3,503Co-sourced Audit Service, Audit Committee meetings & training 532Annual contribution to IEF secretariate 120Auditing on compliance to the SA Petroleum and liquid Fuels Charter 1,063Registration fees 22IAEA membership fees 3,316Payments for capital assets (accruals rolled over) 21Payments for capital assets (not rolled over) 1,665TOTAL POSSIBLE REQUEST 158,496

2011 ENE ALLOCATED FUNDS

PROGRAMMES

2009/10 2010/11 2011/12 2012/13 2013/14

ActualRevised Estimate Medium term estimates

Rand Million R'000 R'000 R'000 R'000 R'000Programmes

Administration 98.2

125.7

167.5

149.9

151.5

Energy Policy and Planning

76.5 1,548.6 1,547.0 1,546.2

77.9

Energy Regulation

385.1

488.4 554.7 145.4

184.2

National Electrification Programme

2,522.1

2,884.5

3,207.6

3,139.0 3,312.0

Nuclear Energy and Regulation

608.9

601.4 613.2 594.9

579.2

Total for programmes

3,690.8

5,648.7 6,089.9

5,575.3

4,304.8

21

ENE ALLOCATED FUNDS PER ECONOMIC CLASSIFICATION

ECONOMIC CLASSIFICATION

2009/10 2010/11 2011/12 2012/13 2013/14


Rand Million R'000 R'000 R'000 R'000 R'000ITEMS

Current Payments

251.4

254.1

297.2

275.4

348.9

Transfers and Subsidies 3,432.5

5,389.7

5,784.9

5,294.8

3,951.0

Payments of capital assets

6.8

4.9

7.8

5.1

4.9

Total for items 3,690.9

5,648.7

6,089.9

5,575.3

4,304.8

22

2011 ENE ALLOCATIONS

• Total allocation for DoE for 2011/12 is R6.09 billion

• Major projects / programmes funded:

Integrated National Electrification Programme – R3.208 billion

National Energy Efficiency and Demand Side Management –

R398.8 million

Transnet (National multi-products pipeline) – R1.5 billion

Renewable Energy Subsidy Scheme – R41.3 million

23

ENE – Current Payments

Current Payments 2009/10 2010/11 2011/12 2012/13 2013/14

ActualRevised Estimate Medium Term Estimate

Rand Million R'000 R'000 R'000 R'000 R'000

Compensation of Employees

133.3

147.9

181.7

192.4 218.3

Goods and Services 118.1

106.2 115.5

83.0 130.6

Total Current payments

251.4

254.1 297.2

275.4 348.9

24

Costing of DOE establishment structure

PROGRAMMES 2011/12 FundingRand Million R'000 Posts

Administration 81.7 222

Energy Policy and Planning 30.4 65

Energy Regulation 47.2 128

National Electrification Programme 15.0 35

Nuclear Energy and Regulation

7.5 13

Total for programmes 181.7 463

25

Programme 1: Administration


2009/10 2010/11 2011/12 2012/13 2013/14


Rand million R'000 R'000 R'000 R'000 R'000

Compensation of Employees 38.7 51.8 81.7 86.7 84


68.7

77.6

57.8

62.2

Transfers and Subsidies

0.1

0.3

0.3

0.4

0.4


6.0

4.8

7.8

5.1

4.9

Payments for financial assets

0.2

-

-

-

-

Total for items 98.2

125.7

167.5

149.9

151.5

26

Programme 2: Energy Policy and Planning


2009/10 2010/11 2011/12 2012/13 2013/14


Rand million R'000 R'000 R'000 R'000 R'000Compensation of Employees 26.1 38.4 30.4 32.6 44.6

Goods and Services 49.6 10.3

16.6

13.6

33.3


- 1,500.0 1,500.0

1,500.0

-


0.8 -

-

-

- Payments for financial assets -

-

-

-

-

Total for items 76.5 1,548.6 1,547.0

1,546.2

77.9

27

Programme 3: Energy Regulation


2009/10 2010/11 2011/12 2012/13 2013/14


Rand million R'000 R'000 R'000 R'000 R'000Compensation of Employees 44.9 40.2 47.2 49.6 64.6

Goods and Services 13.0 17.1

10.5

5.3

25.1

Transfers and Subsidies 327.2

431.2

497.0 90.5

94.5

Payments of capital assets -

-

-

-

-


488.5

554.7

145.4

184.2

28

Programme 4: National Electrification Programme


2009/10 2010/11 2011/12 2012/13 2013/14


Rands Million R'000 R'000 R'000 R'000 R'000

Compensation of Employees 3 13 15

16 15

Goods and Services 2 7 5

3 5

Transfers and Subsidies 2,517 2,864 3,187

3,120 3,291

Payments of capital assets - - -

- -

Total for items 2,522 2,885 3,208

3,139 3,312

Programme 5: Nuclear Energy and Regulation


2009/10 2010/11 2011/12 2012/13 2013/14


Rands Million R'000 R'000 R'000 R'000 R'000Compensation of Employees 20.5

4.5

7.5

7.8

9.9


2.8

5.5

3.0

4.6

Transfers and Subsidies 587.9

594.1

600.3

584.1

564.7

Payments of capital assets -

-

-

-

-


601.4

613.2

594.9

579.2

30


TRANSFERS AND SUBSIDIES

2009/10 2010/11 2011/12 2012/13 2013/14

Actual Revised Estimate Medium term estimatesRand Million R'000 R'000 R'000 R'000 R'000

Local Government (DORA) 1,075 1,240 1,377 1,151 1,215

INEP 900 1,020 1,097 1,151 1,215

EDSM 175 220 280 - -

Projects / Programmes 1,698 3,494 3,776 3,536 2,149

EDSM - Eskom 75 109 119 - -

INEP - Eskom 1,616 1,720 1,738 1,882 1,986

Transnet Multi-purpose pipeline - 1,500 1,500 1,500 -

Renewable Energy Subsidy Scheme 6 21 41 68 72

Working for Energy Project - 20 25 - -

INEP - Non-grid electrification 1 124 71 86 91

FIFA World Cup - - 282 - -

Households 0 0 0 0 0

Leave gratuities 0 0 0 0 0

Entities reporting to Minister 659 655 632 606 586

SANEDI - - 20 22 22

EDIH 72 62 12 - -

NNR 23 19 14 11 10

NECSA 564 574 586 573 554

Total for programmes 3,432 5,389 5,785 5,293 3,950

31

Branch Presentations

Branch key focus areas• Hydrocarbons and Energy Planning• Electricity, Nuclear and Clean Energy• Corporate Services• Office of the COO

32

HYDROCARBONS & ENERGY PLANNING

Mr. T. B Maqubela

33

Performance Highlights - 2010 •Completed Regulatory Accounting System•Promulgated LPG Price Regulations•Published the fuel specification & standard discussion paper•Developed Regulations for strategic stocks to be maintained by oil companies•Published the standard offer incentive scheme• Completed the Integrated Resource Plan •Established SANEDI

34

Policy development and reviews 2011/12

Review and amend the following legislations:•Petroleum Products Act, No. 120 of 1997 – to address regulatory gaps•Gas Act, No. 48 2001 – to include methane and gasses from other sources

35

PROGRAMME FOCUS AREASIntegrated Energy Planning Strategy – outlines the requisite processes, systems and structures for the development of the IEP.

•Cabinet approved IEPS•Operational energy modelling system•Public stakeholder workshop

New Fuel specifications & standards- improve the quality of transport fuels to reduce harmful emissions and to align with international vehicle technology trends

• Discussion Paper has been published for comments. •Regulations will be promulgated during the first quarter on 2011/2012

National LPG Strategy-expand the use of LPG for thermal application in the household sector.

•Submit the Strategy to Cabinet during 1st quarter of 2011/12•Revise maximum refinery gate price of LPG and the retail price to make LPG more affordable

36

PROGRAMME FOCUS AREAS (cont)National Strategic Fuels Stock Policy– set out the framework for the storage of fuels stocks by both government and oil companies.

• The Policy will be submitted to Cabinet during the 2011/12 financial year.•Finalise the implementation Plan with National Treasury during the financial year

Regulatory Accounting System- determine margins for each activity throughout the value chain

•Installation, testing and commissioning of the RAS

Biofuels pricing Framework- development of a framework to guide the implementation of the biofuels strategy to expand the biofuels market

•Finalisation of the pricing framework during the 1st quarter of 2011/12

37

PROGRAMME FOCUS AREAS (cont)Integrated Energy Centres-provide access to energy services to the rural communities

•Involve more oil companies in the development of the IECs.•Two IECs to be operationalised during the financial year

Liquid Fuels Charter- Review progress on the implementation of the LFC since its inception

• Finalise the audit and review of the LFC

Regulatory Accounting System- determine margins for each activity throughout the value chain

•Installation, testing and commissioning of the RAS

•20 year Liquid fuels infrastructure Roadmap- determine the required distribution infrastructure through out the value chain and identify future refining capacity.

• Finalise the Roadmap by the 2nd Quarter of the financial year

38

INSPECTIONS AND PLANNED TARGETS PER PROVINCE

Province Inspection 2010/2011

Planned Inspections 2011/2012

Western Cape 496 156

Eastern Cape 291 156

KwaZulu Natal 390 156

Gauteng 387 156

Mpumalanga 289 156

North West 391 156

Limpopo 171 156

Free State 34 156

Northern Cape 14 156

39

LICENCE APPLICATIONS PER PROVICE: ACCEPTED AND ISSUED

Provinces Licences Refused 2010/2011

Licences Issued 2010/2011

Planned Licences2011/2012

Western Cape 0 33 56

Eastern Cape 6 12 22

Gauteng 60 97 254

KZN 4 34 72

LICENCE APPLICATIONS PER PROVICE: ACCEPTED AND ISSUED (Cont…)

Provinces Licences Refused 2010/2011

Licences Issued 2010/2011

Planned Licences2011/2012

Free State 0 7 18

Northern Cape 0 6 12

Limpopo 2 16 41

North West 0 6 25

Mpumalanga 0 19 47

41

INTERGRATED ENERGY CENTRE OPERATIONALISED AND PLANNED PER PROVINCE

Province Operational as at 2010/2011

Planned 2011/2012

Western Cape 0 0

Eastern Cape 2 1

KwaZulu Natal 0 1

Gauteng 0 0

Mpumalanga 0 0

North West 1 0

Limpopo 1 0

Free State 0 1

Northern Cape 1 0

42

CHALLENGES

•Failure to secure access of primary energy feedstock for liquid fuels•Insufficient funding

43

Electricity, Nuclear & Clean Energy

Mr. O. Aphane

• Monitor developments in the electricity, nuclear and clean energy sectors.

• Improve and implement appropriate policies governing these sectors.

• Promote universal access to electricity by the broader South African population.

OBJECTIVE

PROGRAMMES

• Solar Water Heating • Integrated National Electrification Programme • Integrated Resource Planning• Independent System Market Operator • Independent Power Producers• Refit • Energy Efficiency Campaign and Awareness • Nuclear Safeguards • Nuclear Transaction

Solar Water Heating Programme• 250 041 Solar Water Heaters installed by March 2012• EEDSM Allocation – 18 000 unitsRebate Programme, Private and Commercial Sector will fund

the balance

Integrated National Electrification Programme – Universal Access to Electricity

• 170 000 households connections by March 2012 through Municipalities and Eskom

• 10 000 connections through the Non-Grid programme

PROGRAMME FOCUS AREA


Regulations for New Generation Capacity

• Standard Set for Procurement Documentation• Request for Quotations launched for the Procurement of

Power from IPPs• Power Purchase Agreements signed

Medium Term Risk Mitigation Plan (MTRMP)

• Implementation and monitoring of initiatives to balance supply-demand

Energy Efficiency and Demand Side Management

•1 TWh combined savings from EEDSM•Awareness campaigns •Implementation of Energy Efficiency initiatives and verification of savings

Approach to Distribution Assets Management (ADAM)•Mapping of distribution assets for six metros and identification of problem areas• Approval of funding plan by Cabinet


Approach to Distribution Assets Management (ADAM)•Mapping of distribution assets for six metros and identification of problem areas• Approval of funding plan by Cabinet REFIT • Launch of the Procurement Plan• Evaluate RFQs • Conclude Agreements with IPPsIRP and ISMO• IRP2010 approved by Cabinet • ISMO bill approved for submission to Parliament


Nuclear Safeguards

• Investigation on the removal of state system of accounting and control from Necsa

• Regulatory function currently discharged by Operator

Nuclear Transactions

• Obtain Cabinet approval of the phased decision making approach

• Formation of Cabinet level coordination committee


CHALLENGES

• Human Resources

• Financial Constraints

Corporate Services

Mr. G. Mnguni

53

Presentation Outline1. INTRODUCTION2. ORGANISATIONAL ENVIRONMENT 2.1 APPROVED INTERIM STRUCTURE OF DoE2.2 APPROVED de facto STRUCTURE OF DoE2.3 REVISED ORGANISATIONAL STRUCTURE OF DoE2.4 REVISED PURPOSES OF LINE FUNCTION COMPONENTS 3. PERFORMACE OUTCOME & OUTPUTS OF CORP SERVICES:3.1 KEY OUTCOME:GOOD CORPORATE GOVERNANCE FOR EFFECTIVE AND EFFICIENT

SERVICE DELIVERY3.2 PERFORMANCE OUTPUTS: Provision of effective and efficient human resource services to the

department; Provision of effective and efficient auxiliary services to the department; Provision of effective and efficient communication services to the

department; and Effective and efficient legal services provided to the department.4. CONCLUSION

54

2.1 APPROVED INTERIM STRUCTURE OF DOE

55

2.2 APPROVED de facto ORGANISATIONAL STRCTURE OF DOE

56

2.3 REVISED ORGANISTIONAL STRUCTURE OF DOEASSO CIATED INSTITU TIO NS

O FFICE OF THEDIRECTOR-GEN ER AL

1 C hief D irector

C HIEF DIREC TO RATEMIN ISTER IAL AND PARLIAMEN TARY

SERVIC ES1 C hief D irector

D IRECTO RATEAU DIT SER VICES

1 D irector

BR AN CHEN ER GY PO LIC Y AN D PLAN NING

1 D eputy D irector-General

BRAN CHPETRO LEUM AN D PETROLEUM

PRODUC TS REG ULATION1 D eputy D irector-General

BR AN CHN UCLEAR


BR AN CHCLEAN AN D REN EWABLE ENER GY


BR AN CHEN ER GY PRO G RAMMES AND

PRO JEC TS1 D eputy D irector-General

BRAN CHCO RPORATE SUPPO RT SER VIC ES


BR AN CHFINANC IAL, IN FO RMATION ANDSUPPLY CH AIN MANAG EMENT

1 C hief Financial O fficer

BR AN CHG O VERNANC E AND CO MPLIANCE

1 C hief G overnance and Com pliance O fficer

DEPAR TMENT O F ENERGYPU RPO SE: To ensure the optim al utilisation and safe exploitation of energy resources.

FU NC TIONS:1. Develop, m aintain and im plem ent an integrated energy policy (Legislation, R egulations, etc.) and planning fram ew ork.2. Manage the regulation of petroleum and petro leum products.3. Manage the South African Nuclear Industry.4. Manage and facil itate the developm ent and im plem entation of clean and renewable energy initiatives.5. Manage, coordinate, m onitor and report on energy related programm es and projects.6. Provide corporate support, governance and com pliance functions to the D epartm ent of Energy and the Energy Sector.

1 D irector-G eneral

MIN ISTER DEPU TY MIN ISTER

57

REVISED PURPOSES OF LINE FUNCTION COMPONENTS• Office of the Director General

– To provide executive and administrative support to the Department of Energy

• Energy Policy and Planning– To develop, maintain and implement an integrated energy policy (Legislation,

Regulations, etc) and planning framework

• Petroleum and Petroleum Products Regulation– To manage the regulation of petroleum and petroleum products

• Nuclear– To manage the South African Nuclear Industry

• Clean and renewable Energy– To manage and facilitate the development and implementation of clean and renewable

energy initiatives

• Energy Programmes and Projects– To manage, coordinate, monitor and report on energy related programmes and projects

58

REVISED PURPOSES OF SUPPORT SERVICES COMPONENTS Cont……..

• Ministerial and Parliamentary Services– To provide ministerial and parliamentary support to the Minister of the Department of

Energy

• Audit Services– To provide audit services to the Department of Energy and the Energy Sector

• Corporate Support Services– To provide corporate support to the Department of Energy and the Energy Sector

• Financial Information and Supply Chain Management– To provide financial information and supply chain management support to the

Department of Energy and the Energy Sector

• Governance and Compliance– To provide governance and compliance functions to the Department of Energy and the

Energy Sector

59

PERFOMANCE OUTPUT: Provision of effective and efficient human resource services to the department

KEY ACTIVITY OUPUT INDICATOR

Finalise and implement an Integrated HR Plan for DOE

DOE Organisational structure is aligned with Strategy;

The Employment Equity Plan of DOE is correctly implemented;

HR policies, processes and procedures are developed and implemented;

The identified Occupational categories for DOE are developed and implemented;

The HRD Strategy is implemented;

60

PERFOMANCE OUTPUT: Provision of effective and efficient human resource services to the department


Finalise and implement an Integrated HR Plan for DOE

Workplace Skills plan developed and implemented;

Filling of all funded vacancies finalised;

PMDS implemented and finalised;

The Public Service Health and Wellness Framework is implemented; and

Good employer and employee relations are maintained.

61

PERFOMANCE OUTPUT: Provision of effective and efficient auxiliary services to the department


Provision of safe and secureworking environment for DOE

A Security Risk Management plan for DOE is finalised and implemented;

The procurement of alternative office accommodation and relocation of DOE is finalised;

The DOE Contingency Plan is implemented;

All Auxilliary Services of DOE, policies, procedures and contracts are reviewed and implemented; and

Office facilities for DOE Regional offices

are provided.

62

PERFOMANCE OUTPUT: Provision of effective and efficient communication services to the department


Finalise and implement DOE Communication strategy and plan

DOE Communication strategy and plan aligned with National Strategy; DOE Communication plan implemented in line with approved Strategy; The effectiveness of DoE Communication Strategy is conducted; Stakeholder satisfaction survey is conducted; All logged calls on the Presidential hotline resolved within the given timeframes; and Energy departmental building and regional offices fully branded.

63

PERFOMANCE OUTPUT: Effective and efficient legal services provided to the department


Provide legal adviceto the Ministry and thedepartment

Draft, edit and finalise legislation to be administered by the DoE; Draft, edit and vet International Agreements in terms of Chapter 5 of the Manual on Executive Acts of 2006; Contracts are vetted and amended as required; Legal opinions are compiled and provided timeously; Appeals lodged i.t.o legislation administered by DoE are handled; All litigation against the Dept is managed and action instituted where necessary; and The implementation of PAJA and PAIA processes are properly managed.

64

OFFICE OF THE Chief Operating Officer

Ms T ZUNGU

65

Structure of the presentation•Introduction•Key focus areas for 2011/12

•Strategy and Risk management•Monitoring and Evaluation•SOE oversight•International Co-ordination•Special Programmes and Outreach Projects

66

OFFICE OF THE CHIEF OPERATING OFFICER

67

KEY FOCUS AREAS – 2011/12Strategy and Risk Management• Full implementation of government’s new outcome based planning approach – timeframes, alignments, delivery agreements, budget cycle, etc•Implementation of the department’s Risk Management and Fraud Prevention Plan

Monitoring and Evaluation•Implementation of the department’s outcomes oriented monitoring and evaluation system led by the Presidency (conduct risk assessment, training of risk champions, etc)

68

SOEs reporting to the Minister of Energy

•Regulators•National Nuclear Regulator (NNR)•National Energy Regulator of South Africa (NERSA)

•Research and Development•South African Nuclear Energy Corporation (NECSA)•South African National Energy Development Institute (SANEDI)

•Other•CEF

DOE

NNR NERSA CEF NECSA SANEDI

69

KEY FOCUS AREAS – 2011/12 (cont)State Owned Entities Oversight•Winding up and de-registration of EDI Holdings early 2011• CEF group of companies – restructuring

•The future CEF group of companies•The future PetroSA – oil and gas in the space•PASA – stand alone entity reporting to the Minister of Energy•AEMFC – stand alone entity, move to Dept of Mineral Resources•SANERI/DI – process completed. Stand alone entity•Legislation

70

KEY FOCUS AREAS – 2011/12 (cont)State Owned Entities Oversight (cont)•Establishing of the National Radioactive Waste Disposal Institution - • Review legislation

•Nersa Act – governance and structural issues•CEF Act - mandate

71

KEY FOCUS AREAS – 2011/12 (cont)International Co-ordinationCurrently RSA is a net importer of both crude oil and gas and hence will always be targeting cooperation with countries that could enhance the security of supply of crude oil and gas.• RSA demand for energy is set to increase and the DOE needs to facilitate investment in the sector through international funding, access to technology, information, skills and partnership with international players•Clean energy is a mandate and a demonstration of RSA taking position of a responsible citizen to reduce the carbon foot print.

72

KEY FOCUS AREAS – 2011/12 (cont)International co-ordination (cont)• Clean energy technologies are available from developed

countries and RSA has to work with such countries and multilateral organization to meet this need.

• RSA is often the voice of Africa at international forums and therefore needs to take an active role.

• Hosting of COP 17 by organizing energy side events with international partners.

73

INTERNATIONAL CO-ORDINATION

•To facilitate development of and access to electricity in SADC and Africa at large• Attraction of International Private Power Producers to participation in electricity generation sector in RSA• Cooperation in upstream oil and gas sectors in third part countries especial in Africa and South America to ensure access to oil and gas• Maintaining relations with countries currently supplying gas to RSA- Mozambique Gas Commission

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The role in SADC and AfricaIn SADC•Strengthen relations with SADC countries that are increasingly discovering hydrocarbons•DoE support to development of Regulatory Capacity for Petroleum Pricing•Strengthen Energy Secretariat•Facilitate investment in infrastructure project to secure power needs for RSA and religionIn Africa•Strengthen multilateral Energy initiatives around climate change, peaceful uses of nuclear energy and Energy dialogue between oil producing and consuming nations

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KEY FOCUS AREAS – 2011/12 (cont)Special Programmes and Outreach ProjectsSpecial Programmes• Represent the department at multilateral/international engagements• Participate in intergovernmental special programmes (women, youth, children and people with disabilities);• Mainstream gender within the energy sector;• Coordinate the work of energy sector groups (WINSA, WOESA, SYNPS and Youth in Energy);•Monitor and evaluate special programmes.

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KEY FOCUS AREAS – 2011/12 (cont)Special Programmes and Outreach Projects

Outreach Projects• Identify and implement rural development energy projects;• Initiate projects aimed at poverty alleviation;•Create various community committees in order for government, labour and the energy sector to exchange ideas on training and development of vulnerable groups;•Coordinate information sessions on career opportunities within the energy sector and mandate of the department.

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THANK YOU

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department of energy presentation of the 2011/12 mtef strategic plan to the select committee on...

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