volume vi, edition iii, 2012 - nersa · 2 volume vi, edition iii, 2012 there seems to be widespread...

Volume VI, Edition III, 2012Official Newsletter of the National Energy Regulator of South Africa

Contents

NEWS

02 Editor’s NoteA challenging year draws to a close

03 From the desk of the CEO Celebrating the achievements in 2011

INsIdE OUT, reflecting our outward-bound activities ...

04 Profile NERSA welcomes new Regulator Member

04 Tariffs and pricing Creating a competitive local gas market

06 stakeholder dialogue National dialogue held to discuss hurdles to gas infrastructure investment

06 stakeholder consultationComplexities of electricity resale investigated

08 stakeholder consultationMYPD3 Methodology

09 EventsNERSA exhibits at COP17

10 Public hearings Public hearing held to consider applications from energy regulated industries

11 Rules and proceduresDecision-making guidelines for public hearings and the treatment of confidential information

13 stakeholder servicesMediating prepaid meters dispute

14 Regional participationRERA committees report good overall progress

16 Capacity BuildingLife changing training

OUTsIdE IN, a glimpse at our internal activities …

18 Employee eventsReconnecting to a collective heritage

19 Employee events‘Summer white’ dazzles at year-end function

19 Calendar of Events

Volume VI, Edition III, 20122

There seems to be widespread agreement that 2011 has been another challenging year that saw the world economy struggle to gain traction amidst the unprecedented bailouts of EU countries on the brink of collapse. Although South Africa has weathered the economic storms better than most, we did not escape the ripple effect of a slow recovery.

I am sure that we are all looking forward to a faster recovery and greater stability during 2012.

In our last issue for 2011, the focus in Inside out is on the national dialogue about local investment in the gas sector, as well as multi-year price determination methodology and stakeholder consultations about the resale of electricity. We also look at the setting of gas tariffs, public hearings for licences granted and revoked, as well as our interaction with residents in Chiawelo about prepaid meters.

Editor’s Note2011 – a challenging year draws to a close- time to replenish our energies and prepare for a busy 2012

1. Wanda Langenhoven2. Martin Untied3. Fiona Mbewe4. Dr Rod Crompton5. Ethel Teljeur6. Nomfundo Maseti

7. Sandile Jacobs8. Peter Buys9. Lebohang Makekeng10. Michael Maphosa11. Thobile Mbatha

12. Priya Singh13. David Mashiane14. Thulebona Nxumalo15. Elizabeth Molefe16. Takalani Hadzhi

Newsletter contributors:

Mr Charles Hlebela

Outside in again provides a perspective on the activities of our employees, which includes NERSA’s Heritage Day celebrations and our capacity building events.

Our Calendar of Events for January to March 2012 can be found in its usual spot on the back page.

We trust that you will enjoy reading this year-end issue of NERSA News and always appreciate your feedback in the interest of continuously improving the newsletter. Contact Poppie Mahlangu at [email protected] with comments or to contribute to the next issue, which is due early in April 2012.

As we near the end of a tough, yet in many instances rewarding year, we are optimistic about a dynamic, albeit challenging, year ahead.

I wish you all the best for a restful and joyous festive period and a New Year

filled with happiness in a world of peace.

season’s greetingsCharles Hlebela

PS: Visit our website at www.nersa.org.za for updates on our activities, public hearings and calendar of events.

The Official Newsletter of the National Energy Regulator of South Africa

NERSA’s performance and relevance is informed by its tangible impact on and benefits for the citizens of this country. The challenge is to balance the economic interests of all stakeholders with South Africa’s economic development and a better life for all.

While there is reason to celebrate the progress and achievements brought about by our activities during the past year, we must remain cognisant of the challenges that lie ahead.

The recent critical mid-term review of the planned activities in NERSA’s 2011/12 Business Plan identified a number of critical factors relating specifically to the adequacy of implementation, projects that need to be removed or are delayed or postponed and changes in NERSA’s business environment that may require the addition or removal of projects.

We have now incorporated all the recommended amendments to the Business Plan from the review. In summary, 10% of the 598 planned activities in our 2011/12 Business Plan have been completed, 38% are on track, 8% are delayed (2% of which are due to external dependencies), while 45% have not started. I urge all NERSA management and staff to ensure that all activities are implemented as planned.

We believe that our services continue to add value to the electricity, piped-gas and petroleum pipelines industries in creating regulatory and energy supply certainty and fair competition for industry players; protecting the interests of the

public and our customers; and delivering on our mandate and purpose.

During the year, some of our achievements in the electricity regulation industry included approving municipal tariff applications, the corrective actions of the Independent Technical Audits on Generators close-out report, charge-out rate mechanism and 2011/12 Free Basic Electricityc (FBE) rate, and the adjustment of previously approved 2011/12 Eskom coal benchmark prices. We also granted electricity generation licences to Electrawinds Africa and Indian Oceans (Pty) Limited to operate a 1.8MW wind generation station and to Sherpa Trade and Investment (Pty) for the operation of a 2.5MW biomass plant.

In the piped-gas industry, NERSA participated in completing the first draft amendment to the Gas Act; granted an operation licence to Sasol Gas for a gas distribution facility in Durban; and approved the Spring Lights Gas CAM and maximum prices for Greenfields customers according to clause 10 of Schedule One of the Agreement Concerning the Mozambique Gas Pipeline between Government and Sasol Ltd. We also calculated the special regulatory dispensation period and found that it has a confirmed validity of 10 years, ending in 2014. This means that there are sufficient gas reserves in Pande and Temane in Mozambique for Sasol Gas to meet its gas supply obligation to South African markets.

In the petroleum pipelines industry, we approved the storage tariffs for Engen (64 facilities) and Tarlton, as well as the amendment of Transnet’s pipelines licence for the New Multi-Product Pipeline (NMPP)

to include a tie-in into the current Durban-Johannesburg Pipeline (DJP) pump station. NERSA also presented a course on regulatory benchmarking that was attended by some of our staff, representatives from relevant government departments and licensees.

Our organisational highlights have included:• participationintheSADCMinistersof

Energy meeting in May 2011• 2010/11 Annual Financial Statements,

Performance Against Predetermined Objectives and Annual Report approved by the Energy Regulator on 26 May 2011 and submitted to the Auditor-General, Minister of Finance and Minister of Energy on 31 May 2011

• Strategic Plan (2012/13 to 2016/17)and Annual Performance Plan (2012/13 to 2014/15) submitted to the Minister of Energy on time

• AnnualReportsubmittedtotheMinisterof Energy, Minister of Finance and Auditor-General on time

• A-Z Marginal Cost Pricing andRegulatory Impact Assessment training (attended by NERSA staff and representatives from relevant government departments and licensees)

• participation in regional andcontinental regulatory activities such as Africa Forum for Utility Regulators (AFUR) Executive Committee meeting in Nouakchott, Mauritania

• AFUR Workshop on Tariff Designfor the Electricity and Water Sectors hosted on NERSA premises

• Regional Electricity RegulatorsAssociation (RERA) Subcommittee and Portfolio Committee meetings in Swakopmund, Namibia

3

Ms Phindile Nzimande

From the desk of the CEOCelebrating the achievements in 2011- and preparing for a challenging 2012

NERSA’s role is to ensure the development and sustainability of the electricity, piped-gas and petroleum pipelines industries and facilitate the affordability of and accessibility to these industries.

Our mandate is derived from the legislation that governs and prescribes our role and functions. We are expected to proactively take the necessary regulatory actions in anticipation of and response to the changing circumstances in the energy industry.

Continues on Page 4


INSIDE, REFLECTING OUTWARDS ...In the front section of our quarterly newsletter we provide readers with an ‘inside, reflecting outwards’ perspective of NERSA’s challenges and achievements, as well as our work-in-hand and the status of our regulatory activities as they affect our stakeholders and the public at large.

4

Tariffs and pricingCreating a competitive local gas market- hailed as a ‘bold move’

that approximates piped-gas prices based on reference fuels, such as coal, electricity, liquefied petroleum gas (LPG), heavy fuel oil (HFO) and diesel.

However, prior to the implementation of this methodology, NERSA must establish

whether there is ‘inadequate competition’ in the industry. To this end, NERSA published a discussion document and is currently in a formal public consultation process. NERSA’s discussion document on the adequacy of competition in the piped-gas industry has been hailed by the

In October 2011, after an extensive process of public consultation, NERSA approved the ‘Methodology to approve maximum prices in the piped-gas industry’. The methodology requires that all traders in piped-gas submit pricing proposals to the Energy Regulator based on a formula

ProfileNERsA welcomes new Regulator Member- well-experienced in strategic corporate management

NERSA recently welcomed Mr Oupa Jacob Komane on board as a new Part-Time Regulator Member. Mr

Komane is currently the Deputy-General Secretary of the National Union of Mineworkers (NUM).

Prior to joining NUM as Regional Secretary in 1996, he spent 15 years at Eskom Holdings in various positions. Mr Komane is a Trustee of the TEBA Trust Fund and served as a director on the Board of the Mineworkers Investment Company in 2000. He was the Chairperson of the Electricity Distribution Industry (EDI) Holdings Remco in 2003 and NUMPROP Ltd in 2007.

Mr Oupa Komane

Well-experienced in strategic corporate management and negotiation, Mr Komane’s qualifications include an MSc in Engineering Business Management from the University of Warwick in the United Kingdom, as well as diplomas in Business Management, Supervisory Management and Effective Directorship from various local tertiary education institutions and business schools.

Mr Komane is also multi-lingual, with a proficiency in six of South Africa’s 11 official languages.

Our thanks to the Chairperson and Regulator Members for their support and commitment to ensuring that we achieve our mandate. A special thanks to NERSA’s management and staff for your passion and drive and to the

From the desk of the CEO (continues) spouses and partners. It is because of your support that we are able to achieve our goals.

I wish you the very best for an enjoyable and restful year-end as you spend time with family and loved ones. Travel safely and return energised so that together, we

can effectively and efficiently address the challenges ahead.

Warm regards

Phindile Nzimande

The Official Newsletter of the National Energy Regulator of South Africa 5

media as an important step towards the development of a vibrant local gas market.

According to a recent article in Business Day by journalist Siseko Njobeni, “setting maximum prices for piped gas because of limited competition is a bold move as price regulation of any kind is frequently viewed with suspicion.”

Currently, natural gas is commercially available through Sasol Gas, a key player in the local gas market as the sole gas supplier and importer of natural gas, apart from natural gas produced and used by PetroSA, South Africa’s national oil and gas company, in its own production processes. Sasol sources the natural gas from the Pande and Temane gas fields in Mozambique and Sasol Synfuels produces methane-rich gas (a synthetic gas) at its Secunda plant in Mpumalanga.

The gas is delivered through a 2 242 km pipeline to about 550 commercial and other customers in Gauteng, Mpumalanga, theFreeStateandKwaZulu-Natal.SasolGas owns the distribution network and transmission pipeline in these provinces, apart from one transmission pipeline that transports methane-rich gas from Secunda to Durban.

In 2006, a 10-year special dispensation and 25-year supply agreement was reached between the South Africa government and Sasol Ltd to transmit and sell gas from Mozambique. This was incorporated into the Gas Act and is binding on NERSA until 25 March 2014. The Energy Regulator is concerned, however, that despite other players entering the South African gas market, such as Virtual Gas Networks, Novo Energy, Spring Light Gas and NVG Gas, the current market dominance by Sasol Gas is tantamount to a monopoly, with undue influence on supply and pricing.

In a high entry-barrier industry with significant capital requirements, NERSA’s proposed maximum price methodology will require Sasol to price below the maximum price approved by NERSA for each customer category. This methodology comes into effect in April 2014 for Sasol and for all other players as soon as NERSA has determined that there is indeed inadequate competition.

As such, NERSA can prevent Sasol from prejudicing growth in the piped-gas market in South Africa.

“Developing the gas market in South Africa requires a careful balancing act between the interests of consumers, suppliers and investors. This methodology allows NERSA to accommodate current and future players in the gas industry, providing both incentives to invest and ensuring that prices are not excessive,” according to Ethèl Teljeur, NERSA’s Regulator Member responsible for piped-gas.

NERsA considers maximum gas price

South Africa’s Energy Regulator, in its role as the gas regulator, is tasked with approving maximum gas prices if there is inadequate competition.

To this end, NERSA has called for public comments, all of which will be considered in its determination of the adequacy of competition in the gas market.

NERSA is working towards achieving the objectives of promoting the development of competitive markets for gas and the promotion of investment.

Left: Ms Azwindini Nelwamondo (HOD: Gas Tariffs, Pricing, and Compliance) and Ms Ethèl Teljeur (Regulator member for Piped-gas)

6 Volume VI, Edition III, 2012

Stakeholder dialogueNational dialogue held to discuss hurdles to gas infrastructure investments- through a series of stakeholder workshops

expectations. The more than 150 attendees ranged from gas producers, suppliers, traders and customers to representatives of financial institutions, potential investors in gas projects and members of the public.

‘The sessions were highly interactive, with lively debates about the challenges currently being experienced with investing in gas infrastructure. Discussions included proposed solutions to address these challenges,’ said NERSA’s Ethel Teljeur : Full-Time Regulator for Piped-Gas.

Way forward

NERSA’s Piped-Gas Division is compiling a report based on the discussions during the dialogue. The report will be presented to the Department on Energy with recommendations on the policy and legislative changes required to respond to the challenges highlighted by industry stakeholders during the workshops.

South Africa’s Gas Act, No. 48 of 2001, was enacted as a regulatory framework for the piped-gas industry in response to the objectives of the country’s Energy Policy of 1998 to provide and use gas as an energy source.

In terms of the Act, NERSA is responsible for, inter alia, facilitating investment in the gas industry and promoting the efficient, effective, sustainable and orderly development and operation of gas transmission, distribution, liquefaction and re-gasification facilities.

The Gas Act Rules require that potential investors in gas infrastructure must provide proof of their source of supply and market on application for a licence.

The inputs from the Midrand, Cape Town and Durban workshops will also form the basis of recommendations for amendments to the Gas Act.

In October and early November this year, NERSA’s Piped-Gas Division facilitated a national dialogue among various stakeholder groups to discuss the challenges affecting investments in infrastructure development in the gas industry.

Purpose of the dialogue

Facilitated through workshops held in Midrand (Blue Valley Estate, 26 October 2011), Cape Town (The Commodore Hotel, 31 October 2011) and Durban (Docklands Hotel, 4 November 2011) – the dialogue provided a platform for industry role players to discuss and share ideas about the hurdles currently experienced by potential investors in the gas industry. These included issues related to gas supply, policy or regulatory uncertainty and the bankability of gas infrastructure projects.

Workshops

The consultative workshops were well-received and attendance exceeded

The report will also be published on the NERSA website at www.nersa.org.za.

Stakeholder consultationComplexities of electricity resale investigated - robust dialogue with stakeholders

The electricity resale environment in South Africa is complex, with differing opinions among interested and affected parties about regulating the sector or maintaining the current status quo.

The resale of electricity locally in the electricity supply industry (ESI) is growing and constitutes a significant part of total gross sales to end users. The resale sector, however, is also rife with

customer complaints about the rights and responsibilities of the affected parties, dispute resolution, quality of service, tariffs, pricing principles and billing issues, among others.


The Electricity Regulation Act, 2006 (Act No. 4 of 2006) (Section 7) provides for the licensing of electricity generation, transmission, distribution, export/import and trading activities by the Energy Regulator. The resale of electricity falls under trading and from a regulatory point of view, remains an ‘unregulated and/or uncontrolled’ business activity.

The complexities associated with the resale of electricity, especially given the numerous complaints in this regard, need scrutiny and resolution. NERSA recently facilitated a number of provincial workshops in the main municipal centres to gather information and provide key stakeholders with opportunities for robust dialogue about the issues. The workshops provided opportunities for the Energy Regulator to interact with resellers and end users alike.

NERSA’s objective was to obtain comments and explore ways to address the challenges with appropriate interventions. Workshop participants included representatives from host municipalities, Eskom, electricity traders/resellers, consumer group representatives and civil organisations. NERSA advised participants that the workshops were ‘fact-finding missions’ as part of a process that entails a public hearing, which will be championed by the NERSA Board.

The final workshop was hosted by City Power in Johannesburg over a two-

day period due to the high number of participants interested in electricity resale. During its presentation at the workshop, NERSA’s invited comments on regulation vs maintaining the status quo. In the latter option, the sector would remain unregulated, characterised by good and bad resellers as highlighted by customer complaints, with no clarity about roles and responsibilities or dealing with the issue/s of end-user protection and guidelines for a fair tariff.

The stakeholder comments received indicate that NERSA needs to develop some sort of a regulatory framework. A need exists for players in the electricity resale space to abide by a code of conduct so that an orderly business environment can be established.

The analysis of the inputs and comments from workshop participants will be drafted into a Consultation Paper, which will give stakeholders a further chance to comment before the end of the 2011/12 financial year.

What exactly is a reseller/trader?

In terms of Section 1 of the Electricity Regulation Act, 4 of 2006, “trading” is defined as ‘the buying or selling of electricity as a commercial activity’.

The Act does not define a reseller. For the purposes of this article, a ‘Reseller means the buying of electricity from a licensed distributor and selling of electricity within the area of distribution of such distributor at the approved tariff of such distributor.’

Basically, resale of electricity occurs when an electricity customer purchases electricity from a licensed retailer and resells that electricity to other customers (inset customers). Inset customers (end users that are captive) are generally tenants of the operator or reseller.

Reselling occurs via an electricity distribution system, or inset network (also referred to as an embedded network), owned by the operator (landlord, developer and/or reseller).

Electricity reselling most commonly occurs in shopping centres, office buildings, industrial parks and caravan parks (NET Group).

In some instances, a reseller can be an agent who serves and/or is contracted as an interface between a local authority (municipality) and a consumer or group of consumers.

stakeholder consultation

Six fact-finding workshops were convened during October 2011 to interact with interested and affected parties about the resale of electricity. The workshops were held in: • CapeTown,5October2011.• NelsonMandelaBay,6October2011.• MangaungMetro,13October2011.• BuffaloCity,14October2011.• DurbanMetro,18October2011.• Johannesburg,26and27October2011.


Stakeholder consultationMYPd3 Methodology

NERSA recently indicated that its review of Eskom’s Multi-Year Price Determination (MYPD) methodology, developed to regulate the electricity supplier’s required revenues, will be finalised by 28 February 2012.

The MYPD methodology forms the basis for NERSA’s evaluation of the price adjustment applications received from Eskom.

As a cost-of-service-based methodology, it contains incentives for cost savings and efficient and prudent procurement by Eskom. The MYPD duration is three years and runs concurrently with Eskom’s financial years.

First introduced in 2006, the initial MYPD period ran from 1 April 2006 to 31 March 2009. A second period started on 1 April 2010 and will run until 31 March 2013, with the next period scheduled for 1 April 2013 to 31 March 2016.

NERSA aligned the formulation of the initial methodology with the achievement of a number of objectives. These included:

• ensuringEskom’s sustainabilityandlimiting the risk of excessive or inadequate returns, while providing incentives for new investment;

• ensuring reasonable tariff stabilityand smoothed changes over time, consistent with the socio-economic objectives of the Government;

• appropriately allocating commercialrisk between Eskom and its customers;

• providing efficiency incentiveswithout regulating performance;

• providing a systematic basis forrevenue/tariff setting; and

• ensuringconsistencybetweenpricecontrol periods.

NERSA’s current review of the MYPD is following a due process of stakeholder consultation. Stakeholders were invited to comment in writing on the issues raised in the draft MYPD consultation paper that was published on 14 October 2011 (available at www.nersa.org.za).

The consultation paper relates to key elements of the MYPD, including the Weighted Average Cost of Capital (WACC); Regulatory Asset Base (RAB); operating and maintenance expenses, primary energy, purchases from Independent Power Producers (IPPs), Research and Development (R&D); Integrated Demand Management (IDM) costs; service quality incentives, as well as taxes and levies; a risk management device and pass-through mechanisms; tariff design; sales volumes and the review and modification of the MYPD methodology.

Each key element section contains the draft rules and questions to which stakeholders were invited to respond. All comments received are currently being collated and will be taken into consideration when the final decision on the methodology is made. NERSA will also hold a public hearing on 2 February 2012, where interested and affected parties can present their views.

The revised MYPD methodology will be published on the NERSA website after the approval of the final methodology by the Energy Regulator.

Legal basis for the MYPd methodology

Section 4 of the Electricity Regulation Act, 4 of 2006, states that ‘the Regulator must regulate prices and tariffs’, while Section 16 prescribes the following tariff principles:

1. A licence condition determined under Section 15 relating to setting or approval of prices, charges and tariffs and the regulation of revenues must –

a. enable an efficient licensee to recover the full cost of its licensed activities, including a reasonable margin or return;

b. provide for or prescribe incentives for the continued improvement of the technical and economic efficiency with which the services are to be provided;

c. avoid undue discrimination between customer categories; and may permit the cross-subsidy of tariffs to certain classes of customers.

2. A licensee may not charge a customer any other tariff and make use of provisions in agreements other than that determined or approved by the Regulator as part of its licensing conditions. Apart from the Act, the EPP gives broad guidelines to the Energy Regulator in approving prices and tariffs for the electricity supply industry.


EventsNERsA exhibits at COP17- a participant in responding to climate change

together representatives from the world’s governments, international organisations and civil society. The discussions seek to advance a balanced implementation of the Convention and the Kyoto Protocol, as well as the Bali Action Plan and Cancun Agreements. The latter were agreed on at COP13 in 2007 and COP16 last December, respectively.

The office of the Conference President rotates annually between the five United Nations (UN) regional groups. Following the procedural rules of the Conference, it is customary for the COP and CMP to elect a Minister from the host country as President. The COP17/CMP7 President was Ms Maite Nkoana-Mashabane, the South African Minister of International Relations and Cooperation.

South Africa’s National Energy Regulator participated as an exhibitor at COP17. The event was held in Durban from 28 November to 9 December 2011.

NERSA not only contributed towards the Conference as an exhibitor, but also as a sponsor of the Conference Dinner and a participant in various side events of the Department of Energy.

“It was an interesting and insightful experience to participate in such an important global event. Climate change is a reality that affects all of us and NERSA was proud to be involved, jointly with the DoE,” said Mr Charles Hlebela, NERSA’s Head of Communication and Stakeholder Management.

The 2011 international climate change conference – the 17th Conference of the Parties (COP17) – hosted by the African Group in South Africa recently delivered a breakthrough in the global community’s response to climate change and the urgent need to reduce greenhouse gas emissions.

“We have taken crucial steps forward for the common good and the global citizenry,” said Ms Maite Nkoana-Mashabane, South Africa’s Minister of International Relations and Cooperation and the President of the Durban COP17.

Always much publicised, the COP events represent the United Nations Framework Convention on Climate Change (UNFCCC) and this year also saw the 7th Session of the Conference of the Parties, which serves as the meeting of the parties (CMP7) to the Kyoto Protocol.

Annually, the COP assesses progress in dealing with climate change and brings

What is COP?

Since the inception of the United Nations Framework Convention on Climate Change (UNFCCC) in 1995, the Conference of Parties (COP) to the UNFCCC have met annually to assess progress in dealing with climate change.

COP adopts decisions and resolutions that are published in COP reports and creates a detailed set of rules for the practical and effective implementation of the Convention.

Key decisions taken at COP17

At the Durban event this year, governments decided to adopt a universal legal agreement on climate change as soon as possible, but not later than 2015.

Governments also agreed to a second commitment period of the Kyoto Protocol from 1 January 2013. Signatories to this second period agreed to quantify their emission limitation or reduction objectives and submit them for review by 1 May 2012.

In addition, an agreement was reached to implement a support package for developing nations, concluded in Mexico previously.

COP18 will take place at the end of 2012 in Qatar, in cooperation with the Republic of Korea.

Minister of Energy, Ms Dipuo Peters at NERSA exhibition stand during COP17


Public hearingsPublic hearings held to consider applications from energy regulated industries- towards fair and transparent outcomes

PETROLEUM PIPELINEs

Applicant/ Licensee Application/ Facility description Outcomes and way forward

October 2011

BP Southern Africa (Pty) Ltd

Application to revoke the licence issued to operate a petroleum pipeline running from the SAPREF Refinery to the Old Durban International Airport.

The pipeline is no longer required due to the closure of the airport operations after ACSA commissioned the King Shaka International Airport near La Mercy.

On 3 October 2011, the Energy Regulator decided to grant the revocation of the licence.

BPSA will start excavations to remove the pipeline and rehabilitate the land in accordance with the Environmental Authorisation as soon as NERSA has finalised its application.


Application to revoke 10 licences issued to operate petroleum storage facilities located at 10 airports around the country.

The airports are: Midrand, Plettenberg Bay, Port Elizabeth, V&A Waterfront (Cape Town), Umtata, Polokwane, Hoedspruit, Krugersdorp, Bethlehem and Nelspruit.

BPSA submitted that its operation of these facilities will cease as a result of the facilities closing down or being sold to new owners.

On 3 October 2011, the Energy Regulator decided to grant the revocations sought.

For the facilities being decommissioned, BPSA will have to comply with the decommissioning plan and the associated environmental requirements.

The new owners will have to apply to NERSA for operation licence for the facilities sold to them.

November 2011

Oiltanking Grindrod Calulo (Pty) Ltd

Application to construct new petroleum loading and storage facilities in the Port of Ngqura (CoegaIndustrialDevelopmentZone).

Revoke the licence issued to operate a petroleum pipeline running from the SAREF Refinery to the Old Durban International Airport.

The Petroleum Pipelines Subcommittee considered the matter on 2 December 2011.

The Energy Regulator will decide on the Subcommittee’s recommendations in due course.


Application to construct an additional petroleum storage tank at its existing Waltloo storage facility in Pretoria.

On 21 November 2011, the Energy Regulator decided to grant a licence to BPSA.

The actual construction activities are due to start before the end of 2011.

Wilprops 35 (Pty) Ltd

Application to operate an existing storage facility in Roodekop (Germiston). The facility previously belonged to BPSA, but was sold to the new owners.

On 21 November 2011, the Energy Regulator decided to grant a licence to Wilprops to operate the facility.

The licensee plans to commence with its operations in due course.

The electricity resale environment in South Africa is complex, with differing opinions among interested and affected parties about regulating the sector or maintaining the current status quo.

The resale of electricity locally in the electricity supply industry (ESI) is growing and constitutes a significant


Rules and proceduresdecision-making guidelines for public hearings and the treatment of confidential information Part II

In our second article in the NERSA Rules and Procedures series, we look at both the guidelines for the Energy Regulator’s decisions about holding public hearings and the treatment of confidential information.

These articles aim to increase public awareness about NERSA’s role and conduct in adhering to rules, procedures and guidelines in its decision-making process.

decision-making guidelines

Holding public hearingsThe National Energy Regulator Act, 2004 (Act No. 40 of 2004), stipulates that NERSA’s decisions about licensing, pricing and tariffs, compliance, complaints and dispute resolution, investigations and enquiries and expropriations and other matters within its mandate, must be made within a procedurally fair process.

People affected by these issues must be allowed to present their views, relevant facts and evidence. This can be done either through a notice and comment procedure; or a notice, comment procedure and public hearing; or a public hearing only.

In terms of the issues indicated above:• Licensing relates to applications for

new licences, amendments to existing licences and/or a licence condition and revocations of a licence.

• Pricing and tariffs relate to applications for new tariffs and the amendment of existing tariffs.

• Compliance relates to the resolution of disputes between licensees and consumers or licensees themselves, illegal tariffs, non-compliance with licence conditions, expropriation applications and investigations of or enquiries and action taken against a licensee.

Decisions about holding public hearings are influenced by the nature, purpose and circumstances of a case or matter, as well as public interest, the effect of the decision, consent/refusal from the affected parties and the need of third parties to be heard, comment or express an opinion.

In the case of a notice and comment procedure, NERSA must inform all interested and affected parties of the intended administrative action and invite them to comment. All comments received have to be considered before a decision is taken about the appropriate action. Any deviation from the procedure must take into account the nature, purpose, need, likely effect, urgency or need to promote the action, as well as efficient administration and good governance.

In the second article of four about NERSA’s meeting rules and procedures, including public hearings, we look at decision-making guidelines for:• holdingpublichearings,and• thetreatmentofconfidentialinformation.

PETROLEUM PIPELINEs

Applicant/ Licensee Application/ Facility description Outcomes and way forward

November 2011

Chevron SA Application to revoke eight licences issued to operate petroleum storage facilities located in Bethal, Bredasdorp, Empangeni, Piet Retief, Kimberley, Keimoes, Moorreesburg and Mokopane.

Chevron stated that its operation of these facilities will cease as a result of closing down the facilities or selling it to new owners.

On 21 November 2011, the Energy Regulator decided to grant the revocations sought.

For the facilities being decommissioned, Chevron will have to comply with the decommissioning plan and the associated environmental requirements.

The new owners will have to apply to NERSA for operation licence for the facilities sold to them.

ELECTRICITY

November 2011

N/A Determination of the municipal tariff guideline and revision of municipal tariff benchmarks for the 2012/13 financial year.

The public hearing was held on 18 November 2011 and the Electricity Subcommittee will convene on 18 January 2012 to approve the guideline increase and the reasons for decision.


NERSA uses the guidelines reflected in Table 1 to determine when to hold a public hearing.

Table 1: Decision guidelines for holding public hearings

Action Procedure Reasons for the procedures

New licence applications (minor and major)

• With objections (interested parties and/or request to be heard).

• Notice and comment procedure and a public hearing.

• To hear the views of the applicant and 3rd parties.

• Without objections and NERSA requires no further information from the applicant.

• Notice and comment procedure• (unless there are exceptional

circumstances; if the applicant declines the opportunity to present).

• May be prejudicial to the applicant, unnecessary prolonging of the process and wasted costs for the Energy Regulator and the applicant.

• Without objections. • Notice and comment procedure and a public hearing.

• Based on public interest and the effect of the administrative decision.

Amendment of license on application

• By the applicant with objections. • Notice and comment procedure and a public hearing.

• To hear the view of the applicant and 3rd parties.

• By the applicant without objections and NERSA requires no further information from the applicant.

• Notice and comment procedure.


• By any affected party. • Notice and comment procedure and a public hearing.

• To hear the views of the affected party/parties and the applicant.

Expropriation applications

• With consent by the landowner (relates to the land in question, compensation amount and applicable law).



• Without consent by the landowner. • Notice and comment procedure and a public hearing.

• To hear the views of the applicant and the land owner and/or the affected person/s.

Tariffs

• New tariff applications. • Notice and comment and a public hearing.

• To hear the views of the applicant and the affected parties.

• Amendment of existing tariff. • Notice and comment and a public hearing.

• To hear the views of the applicant and the affected parties.

Licence amendment application

• Where a public hearing was held previously and the amendment is of a minor nature with no consequences for affected and/or interested parties.



Treatment of confidential information

NERSA uses a checklist to guide its decisions about how to treat confidential information and the effect of the release of such information to a third party. Questions endeavour to determine

the possible harm that may result from information that contains trade secrets or financial, commercial, technical or scientific information if disclosed to a third party.

The questions also relate to information that could prejudice commercial

competitiveness; whether verbal or written consent has been obtained for its disclosure; and the public safety and environmental risks involved in releasing the information.

In Part III of this series, we will be looking at Representations at Public Hearings.


The present metering system is similar to the previous prepaid system, apart from the keypad and display panel being separated from the circuit breaker or switch.

The circuit breaker or switch and keypad are computerised to recognise and communicate with one another once the keypad is plugged into the socket in the house.

The meter is housed inside a distribution box (green box) on the pavement and the keypad is given to the customer for use to load electricity credits to the meter.

The location of the circuit breaker or switch is known only to the end-user and under normal circumstances cannot easily be bypassed, which reduces electricity theft and illegal connections.

Earlier this year, NERSA was called on to mediate a dispute between Eskom, as the licensed supplier and distributor of electricity in Soweto, and the Chiawelo community in Soweto, as the end-users of the electricity.

The mediation involved the testing of a sample of Eskom-installed prepaid split meters in Chiawelo to address the community’s concern that the meters were ‘running fast’ and that they were paying more for electricity than when they had been using conventional prepaid and post-paid meters.

Background

The high levels of electricity theft and illegal electrical connections in Soweto presented Eskom with serious revenue collection problems and created safety risks for residents in the area. In mitigation, Eskom installed 4 000 prepaid electricity split meters in Wards 11 and 12 in Chiawelo, as well as in the Chiawelo and Jabulani blocks of flats, as a pilot project to reduce the occurrence of theft and illegal connections. The pilot project was also seen as a suitable mechanism to collect revenue and implement credit control in Soweto.

The project reduced losses by between 12% and 60% and Eskom intended to roll out the installation of meters to the rest of Chiawelo, then Soweto and eventually nationally where these types of problems occurred.

Allegations from the Chiawelo community, however, that the prepaid split meters were ‘running fast’ prevented Eskom from expanding the pilot to other communities. The allegations implied that the electricity distributor had set the meters to run faster than the conventional

prepaid and post-paid meters (consumers are billed monthly) or that all the meters were faulty.

The community also rejected Eskom’s offer to have the meters tested for accuracy, citing conflict of interest, and requested an independent party to conduct the tests. Eskom raised a dispute with NERSA and in its role as a mediator under the Electricity Regulation Act, 2006 (Act No. 4 of 2006), the Energy Regulator was called upon to resolve the dispute.

Mediation

As the mediator, NERSA organised a meeting between Eskom and the Chiawelo Ward 11 and 12 councillors and community leaders to resolve the problem. All parties agreed to NERSA’s suggestion that a sample of the meters be tested by an accredited body in the presence of both Eskom and the Chiawelo community representatives. The South African Bureau of Standards (SABS) was the only accredited laboratory equipped to test the meters for compliance with the SANS 1524-1 standard.

The community also agreed to nominate their own witnesses and selected 20 meters that they believed were problematic. NERSA arranged financing for the tests.

Meter testing

The meters were removed for testing and replaced with new meters, similar in type and model. NERSA and the community representatives accompanied Eskom to remove the 20 selected meters, four of which could not be removed due to malfunction or vandalism.

NERSA received the 16 meters from the Chiawelo community leaders on

15 March 2011 and delivered them to the SABS on the same day. The testing methodology was agreed on by the community and Eskom representatives who witnessed the tests.

South Africa’s Energy Regulator is a juristic person mandated to regulate the electricity, piped-gas and petroleum pipeline industries in terms of the related Acts.

NERSA’s regulation of the Electricity Supply Industry (ESI) in a well-coordinated and structured manner is governed by the implementation of the Electricity Regulation Act, 4 of 2006.

Section 4 (b) (i) of the Act, under Powers and Duties of the Regulator, makes provision for the regulator to: ‘mediate disputes between generators, transmitters, distributors, customers or end-users.’

Stakeholder servicesMediating prepaid meters dispute- meter testing towards a resolution


Regional participationRERA committees report good overall progress- in supporting the region’s energy sector

framework through regulatory policies, legislation, standards, practices and cooperation is being given effect through its Portfolio and related Subcommittees.

Committees meet at least twice a year to coordinate and report on progress. Most recently, meetings took place in Swakopmund on 12 to 16 September 2011. A general sense of appreciation prevailed for the commitment of committee members towards achieving RERA’s objectives, particularly with regard to information sharing. Good overall progress was recorded by all the committees.

Progress reports – Portfolio Committees

Capacity building and information sharing• SupportedtheRegulatoryPractitioners

and Commissioners Orientation

training courses during October 2011, funded by the United States Agency for International Development (USAID) Southern Africa Trade Hub.

• Applied for grant funding under theTrilateral Cooperation Fund of the German/South African Partnership to implement a Renewable Energy Feed-In Tariff (REFIT) Knowledge Transfer Programme in the SADC region.

• DiscussingcooperativeventureswithEuropean Union Energy Initiative Partnership Dialogue Facility and the USA National Association of Regulatory Utility Commissioners

• Member survey report submittedabout capacity building and training needs of RERA members and approved for circulation to members.

• Training proposal from US-basedDM Management Lab circulated to members for a practical toolkit for electricity regulatory authority professionals to assess and

Substantial progress has been reported by the Portfolio and Subcommittees of the Regional Electricity Regulators Association of Southern Africa (RERA) in giving effect to initiatives that are helping the Association to achieve its strategic objectives.

As a Southern African Development Community (SADC) undertaking, RERA is executed in terms of the region’s 1996 Protocol on Energy, as well as its Energy Cooperation Policy and Strategy (1996), Energy Sector Action Plan (1997) and Energy Activity Plan (2000).

Its activities also support the broader New Partnership for Africa’s Development (NEPAD) and African Energy Commission initiatives.

RERA’s vision of providing the SADC energy sector with a world-class, consistent and harmonised regulatory

Test results

NERSA received the test results from the SABS on 01 July 2011. The results showed that all the meters that had been tested were accurate according to SANS 1524-1 Clause 8 standard. None of the tested meters had produced an error more than the limit allowed by the standard, which meant that they complied with the requirements of the standard.

Conclusions

The results of the SABS tests, which were witnessed by all parties, indicated

that the representative sample of meters tested operated according to the accepted standards. This meant that all 4 000 meters installed in Chiawelo could be regarded as operating according to accepted standards and could therefore be used by Eskom to collect revenue.

The findings also meant that Eskom could continue with the installation of the meters in other areas as necessary.

“The success of the mediation process between Eskom and the Chiawelo community proves that the use of an

alternative dispute resolution mechanism can yield positive results and build a relationship between the suppliers and end users of electricity. NERSA also successfully assisted the parties to negotiate their settlement. NERSA’s role as a mediator was the key distinguishing feature of the mediation process,” says Mr Dennis Seemela, Head of Department: Licensing, Compliance and Dispute Resolution.


determine innovative performance in electricity companies without micro-managing utilities.

Regional Regulatory Cooperation

• ContactedgovernmentsinMauritius,Botswana, Democratic republic of the Congo (DRC) and Seychelles to advocate RERA membership and address impediments to establishing regulators.

• ParticipatedinSADCenergymeetings.• Fostered excellentworking relations

with the African Union, SADC Secretariat, Southern African Power Pool (SAPP), African Forum for Utility Regulation (AFUR), the International Confederation of Energy Regulators (ICER) and the USAID Southern African Trade Hub.

• Addressed partnership requestfrom ECOWAS Regional Electricity Regulatory Authority (ERERA), cooperation between RERA and Power Institute for Eastern and Southern Africa (PIESA) and affiliate membership of the African Electro-technical Commission (AFSEC).

Facilitation of ESI Policy, Legislation and Regulations

• Addressed key issues from theLegal and Economic Regulation Subcommittees respectively:

o Implementation of RERA Regulatory Guidelines on cross-border power trading in SADC by urging six outstanding SADC members to adopt guidelines and arrange training for implementation as Phase 2 of the project, which will be sponsored by the World Bank and include the development of model power purchase agreements, transmission wheeling agreements and capacity building.

o Considered the reviews on best practices, gaps and recommendations (agreed to source input from members) and on RERA’s best practice regulatory framework (narrative developed to make the model law user-friendly); and a special meeting of the Legal Subcommittee (agreed to the special meeting held in South Africa at NERSA on 13 and 14 October 2011).

o Publication of tariffs (finalisation by the end of 2011).

o Considered the reviews on RERA Regulatory Guidelines for cross-border power trading (main challenge noted as implementation by SADC governments); RERA position papers on experiences and challenges in economic

regulation (agreed that members submit updates to paper by end October 2011); and RERA guidelines on licensee reporting system (recommended that RERA arrange workshop to update guidelines).

NERsA participants

The NERSA employees assigned to the Portfolio Committees areMs ZethuMacKenzie (Capacity Building and Information Sharing), Mr Charles Geldard (ESI Policy, Legislation and Regulations) and Ms Fiona Mbewe (Regional Regulatory Cooperation). The NERSA Subcommittee members are Ms Nomalanga Sithole, Chairperson (Legal), Mr Ronald Chauke (Technical Regulation) and Mr Thifhelimbilu Mashapa (Economic Regulation).

The Portfolio Committee reports were presented at the RERA Executive Committee and Annual General Meeting in Malawi on 3 November 2011.

NERSA is a member and current Chair of the RERA Executive Committee. A number of NERSA employees have been nominated to serve on the Association’s Portfolio and Subcommittees.

While the RERA Exco deals with the Association’s management affairs, the three Portfolio committees have been assigned specific functions to achieve RERA’s strategic objectives:• Capacity Building and Information Sharing - facilitates electricity regulatory capacity building among national and regional members• Regional Regulatory Cooperation -addresses electricity interconnections and trade among SADC members through the Energy Protocol • Facilitation of Electricity Supply Industry (ESI) Policy, Legislation and Regulations - facilitates integration of electricity systems and trade in

the Southern African region and beyond

Three subcommittees – Legal, Economic Regulation and Technical Regulation – carry out the programmes and activities of the ESI Portfolio Committee.

Regional Electricity Regulators Association of southern Africa (RERA)


The opportunity to pursue further training and skills development in France resulted directly from a JIPSA – Joint Initiative on Priority Skills Acquisition – Declaration of Cooperation signed between the French and South African Governments in 2008. JIPSA is a high-level joint

Capacity buildingLife-changing training - an exceptional opportunity

initiative between government, business and labour to address skill shortages in critical areas of the local economy.

In addition to being of direct benefit to the programme participants, the JIPSA Junior Manager Development Programme addresses the country’s critical skills shortages. As such, it also benefits employers and the respective sectors from which the participants have been selected. Ultimately, the economy as a whole will derive value from the initiative.

Ms Mbatha, from NERSA’s Electricity Regulatory Reform: Specialist Trading Frameworks division, was one of the fortunate participants selected for the 2011 programme. The final of the two groups accommodated under the Declaration consisted of 57 participants (2010:34) and ran from 16 September to 31 October.

Thobile Mbatha (standing 3rd from left) and some of the JIPSA JPMD 2011 delegates on a site visit to Rungis Wholesale market in France

A partnership between South Africa’s National Empowerment Fund and the French Agence Française de Développement and Chamber of Commerce and Industry of Paris (CCIP), have provided 100 South African junior managers with exceptional opportunities to participate in training programmes in France in a variety of disciplines over the past two years.

The CEA employs about 15 718 workers with 289 qualified PhDs and 1 360 studying towards PhDs. The company maintains a cross-disciplinary culture of engineers and researchers to optimise synergies between fundamental and technological research.

The CEA’s main focus in renewable energy is on: • Solarenergy,specificallyconcentrated

photovoltaic and thermal systems; the management of intermittently-produced electricity; and chemical and electrochemical electricity storage options, particularly as hydrogen and its use in the synthesis of biofuels from biomass.

• Electricityusageinthebuildingandtransport sectors, traditionally strong emitters of greenhouse gases, respectively applied to design, integration of thermal and photovoltaic energy and optimised energy management, and the development of batteries and fuel cells for electric and hybrid vehicles.

Recently returned from participating in an exceptional training opportunity in France, NERSA’s Thobile Mbatha is one of 100 South African junior managers who have benefited from a ‘life-changing’ skills management experience during the past two years.


The programme entailed a two-week management training seminar hosted by Advancia Negotia, a CCIP-associated business school in Paris, and a four-week internship at a French host company.

“The business school training seminar reinforced our managerial, negotiation, project management, team building and dynamics skills. We were also given tools to understand the French and European context of our different fields of endeavour, which helped with the integration into our host companies,” says Ms Mbatha.

The seminar included site visits to Loreal, the world’s largest cosmetics manufacturing plant, the Rungis wholesale fresh produce market, also the largest in the world, as well as the Nogent Nuclear Plant: 1 of Électricité de France (EDF), the main electricity generation and distribution company in France.

EDF manages the country’s 59 nuclear power plants. Since 2008, these plants produce 90% of EDF’s and about 78% of France’s electrical power production (of which some is exported), making EDF the world leader (by percentage) in the production of nuclear power.

Ms Mbatha’s internship was hosted by the French Alternative Energies and Atomic Energy Commission, the CEA (Commissariat à l’Énergie Atomique et aux Énergies Alternatives), at the Institut de Technico-économie des Systèmes Énergétiques (I-tésé) in Saclay, south of Paris (www.cea.fr).

A leader in research, development and innovation, the CEA is a public body established in October 1945 by General de Gaulle and is active in four main areas: low-carbon energies (nuclear, solar and wind), defence and security, information technologies and health technologies.

Ms Mbatha’s account of her training experience:

Internship placement

“I was placed at I-tésé and tasked to conduct research into solar [photovoltaic (PV)] generation and its integration into the grid. I had to benchmark the French electricity system against those of other countries, evaluate how solar (PV) is integrated into the transmission grid and how other countries evaluate the reduction in emissions associated with the introduction of solar (PV) generation at grid level.

“I also looked at the differences between the French and South African energy mix and the methods of PV integration at grid level.

Learning outcomes

“My knowledge about and appreciation of renewable energy technologies increased significantly, specifically solar (PV) generation. I was introduced to methodologies for economic valuations, technical and environmental considerations for PV integration to the grid, as well as methodologies to quantify the cost and actual emissions displaced due to the introduction of PV into an energy mix.

“Most available methodologies are from fossil fuel-intensive countries, such as the USA, and comparisons could be drawn with South Africa. The French system, which is mainly nuclear, is unique in its energy mix and brings about different challenges.

“The results and recommendations from my research is currently being used at I-tésé to model scenarios from the proposed methodologies. I will be advised of the outcome, which will be shared with the CCIP and NERSA.

special appreciation

“A special note of appreciation is due to all those who made this exceptional learning experience possible. First

and foremost to NERSA’s Executives and management for affording me this once-in-a-lifetime opportunity that took me out of my comfort zone to learn and share experiences with peers in another country.

“The appreciation of our skills and competence was evident in the feedback we received from our French host companies, and I am confident that we demonstrated that South African professionals can ably compete in the global arena. I was proud to be an ambassador for my country and my organisation.

“Secondly, I want to thank the South African government, specifically the NEF and the DTI (Department of Trade and Industry), as well as the CCIP, for an initiative that clearly demonstrates their commitment to addressing the critical skills shortages among young South African professionals.

“From a personal perspective, being exposed to different countries has been a priceless experience. Participation in the programme has also given me immense respect for South Africa’s constitution and confidence in our ability as young South Africans to be competitive in the global market place.

“Visiting foreign shores has enhanced my love for this country and my appreciation of where we have come from as a nation, as well as insight into where we should be going to ensure that South Africa takes up its rightful place within the world’s developed economies.

“It is our responsibility as young professionals to find the avenues and ways to ensure that, through our contributions, South Africa moves forward as a progressive country filled with infinite possibilities.”


The second section of our quarterly newsletter provides readers with an ‘outside in’ perspective of NERSA’s people and their activities during the previous quarter and how NERSA’s values and goals drive its vision of being a world-class energy regulator.

OUTSIDE, LOOKING IN …The second section of our quarterly newsletter provides readers with an ‘outside in’ perspective of NERSA’s people and their activities during the previous quarter and how NERSA’s values and goals drive its vision of being a world-class energy regulator.

OUTSIDE, LOOKING IN …

Under this year’s Heritage Day theme of Celebrating the Heroes and Heroines of the Liberation Struggle in South Africa, NERSA’s employees participated in an event to acknowledge the rich tapestry of cultures, languages and traditions that make up the social fabric of our national identity.

The event was held in the NERSA auditorium on 30 September 2011 and also saw the launch of the Energy Regulator’s Fraud Hotline. The programme also consisted of dance and song items by different cultural groups and a post-lunch drumming session in which all employees participated.

According to NERSA CEO, Ms Phindile Nzimande, in her address at the event, the Heritage Day theme contributed

Our African heritage

“We must work to rediscover and claim the African heritage, for the benefit especially of our young generations.

From South Africa to Ethiopia lie strewn ancient fossils, which in their stillness, speak still of the African origins of all humanity. Recorded history and the material things that time left behind also speak of Africa’s historic contribution to the universe of philosophy, the natural sciences, human settlement and organisation and the creative arts.

Being certain that not always were we the children of the abyss, we will do what we have to do to achieve our own Renaissance. We trust that what we will do will not only better our own condition as a people, but will also make a contribution, however small, to the success of Africa’s Renaissance, towards the identification of the century ahead of us as the African Century.”

- Thabo Mbeki’s inaugural speech as President of South Africa, 16 June 1999

towards reconnecting the nation to its collective liberation heritage.

“In our fledgling democracy and developmental state,” she said, “we are creating a new heritage and re-contextualising the legacy of the past. A heritage in which all of us can find meaning and expression and share together as South Africans.”

She reiterated the message from the Minister of Arts and Culture, Mr Paul Mashatile, during the debate about this year’s Heritage Month celebrations when he said that “the history of our national liberation struggle belongs to all the people of South Africa. It is who we are. It is the source of our national pride. It is our historic

Employee eventsReconnecting to a collective heritage- a rich tapestry makes up our national identity

Ndebele group dancing during heritage day

Xhosa group dancing

Sotho dance


Calendar of Events: January – March 2012Meeting dates and times are subject to change. Visit our website at www.nersa.org.za for the latest updates and to verify the

information below.

Meeting date and time Meeting purpose

January 2012

Regulator Executive Committee Mon, 16 Jan 2012 09:00-11:00 • 3rd Quarter Performance Report• Reports, governance, delegated matters

Piped-Gas Subcommittee Tue, 17 Jan 2012 09:00-12:00 • Reports, delegated matters

Petroleum Pipelines Subcommittee Tue, 17 Jan 2012 13:00-15:00 • Statuary requirements• Reports, delegated matters

Electricity Subcommittee Wed, 18 Jan 2012 09:00-12:00 • Statuary requirements• Reports, delegated matters

Finance Subcommittee Thu, 19 Jan 2012 09:00-11:00 • 3rd Quarter Management Accounts• Other reports

Audit and Risk Committee Thu, 19 Jan 2012 11:30-13:00

• 3rd Quarter Management Accounts• 3rd Quarter Performance report• Audit Plan• Other reports

Energy Regulator Thu, 26 Jan 2012 09:00-12:00• 3rd Quarter Management Accounts• 3rd Quarter Performance report• Subcommittee Reports

Regulator Executive Committee Mon, 30 Jan 2012 09:00-11:00 • Reports, governance, delegated matters

Employee events‘summer white’ dazzles at year-end function- taking leave of 2011

in theme’ as indicated in the electronic invitation sent out from the office of NERSA’s CEO, Ms Phindile Nzimande.

“It was an impressive sight to see everyone dressed in white with bold splashes of colour everywhere. Every single person had entered into the spirit

After a successful, albeit demanding year, NERSA employees and Regulator Members recently gathered at Avianto in Muldersdrift for the organisation’s year-end function.

Without exception, the guests arrived at the ‘White Summer Party’ luncheon

of the theme and it created a wonderful ambiance for the event,” according to organiser Wanda Langenhoven.

mission therefore to preserve it.” She also reminded employees to recommit to the ideals for which South Africa’s heroes and heroines fought so bravely.

The purpose of launching NERSA’s Fraud Hotline, which is operated by KPMG,

was confirmed as that of entrenching an honest work ethic and creating a mechanism to bring unethical business practices to the attention of management. The initiative reinforced NERSA’s zero tolerance to fraud, as asserted in its Fraud Policy and Prevention Plan.

“I encourage you to use this opportunity to report any unethical behaviour, theft, fraud or related activities within NERSA,” according to Ms Nzimande.Details and instructions on how to use the Fraud Hotline are available on the Intranet and internal posters.


This Publication is produced by NERSA Corporate Services and may not be reproduced

without the written consent of the NERSA.

Phone: 012 401 4600Fax : 012 401 4700Physical Address: Kulawula House 526 Vermeulen Street Arcadia PretoriaPostal Address: P O Box 40343 Arcadia 0007 South Africa

Publisher: Corporate ServicesEditor: Charles HlebelaSub-Editor/Writer: Poppie MahlanguDesign, Layout and Printing: Blackmoon Advertising

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Meeting date and time Meeting purpose

February 2012

Public Hearing Thu, 20 Feb 2012 09:00-16:30

Piped-Gas Subcommittee Wed, 8 Feb 2012 09:00-11:00 • Reports, delegated matters

Regulator Executive Committee Mon, 13 Feb 2011 09:00-11:00 • Reports, governance, delegated matters

Petroleum Pipelines Subcommittee Tue, 14 Feb 2012 09:00-11:00 • Reports, delegated matters

Electricity Subcommittee Wed, 15 Feb 2012 09:00-12:00 • Reports, delegated matters

Human Resources Subcommittee Wed, 15 Feb 2012 13:00-15:00 • Reports

Electricity Subcommittee Wed, 22 Feb 2012 09:00-12:00 • MYPD

Energy Regulator Wed, 29 Feb 2012 09:00-13:00 • PPS Reports, delegated matters

March 2012

Public Hearing Thu, 1 Mar 2012 09:00-16:30

Regulator Executive Committee Mon, 5 Mar 2012 09:00-11:00 • Municipal tariff increases• Reports, governance, delegated matters

Piped-Gas Subcommittee Wed, 7 Mar 2012 09:00-12:00 • Reports, delegated matters

Public Hearing Thu, 8 Mar 2012 09:00-16:30

Regulator Executive Committee Mon, 12 Mar 2012 09:00-11:00 • Municipal tariff increases

Petroleum Pipelines Subcommittee Tue, 13 Mar 2012 09:00-11:00 • Reports, delegated matters

Electricity Subcommittee Wed, 14 Mar 2012 09:00-12:00 • Reports, delegated matters

Human Resource Subcommittee Wed, 14 Mar 2012 13:00-15:00 • Salary increases

Finance Subcommittee Thu, 15 Mar 2012 09:00-12:00 • Bid Adjudication Committee

Energy Regulator Thu, 15.3.2012 13:00-15:00 • Petroleum pipelines licensing matters



Energy Regulator Thu, 29 Mar 2012 09:00-11:00 • Subcommittee Reports

Calendar of Events: January – March 2012Meeting dates and times are subject to change. Visit our website at www.nersa.org.za for the latest updates and to verify the

information below.

ISSN: 222 - 898X Key tittle: NERSA News Abbreviated key tittle: NERSA News

volume vi, edition iii, 2012 - nersa · 2 volume vi, edition iii, 2012 there seems to be widespread...

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