1 portfolio committee on energy 4 th qt 2014/15 and 1 st qt 2015/16 performance reports 4 august...

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PORTFOLIO COMMITTEE ON ENERGY4th Qt 2014/15 and 1st Qt 2015/16

PERFORMANCE REPORTS

4 August 2015

• This presentation reflects the performance information of the Department of

Energy (DoE) for the fourth quarter 2014/15 and first quarter of 2015/16.

• At the end of the 4th Quarter performance report an overview is given of the 14/15

financial year.

• DoE implements its Annual Performance Plan (APP) through six programmes;

Programme 1 – Administration,

Programme 2 – Energy Policy and Planning,

Programme 3 – Petroleum & Petroleum Products Regulation,

Programme 4 – Electrification & Energy Programme and Projects,

Programme 5 – Nuclear Energy and

Programme 6 – Clean Energy.

• The APP and Financial performance of the different Programmes are summarized in this

presentation, but the complete APP performance targets are presented in Appendix A (4 th Q

14/15) and Appendix C (1st Q 15/16), while the detailed Financial Performance per

Programme is presented in Appendix B (4th Q 14/15) and Appendix D (1st Q 15/16)

respectively.

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Background

Summary APP 4th Quarter 2014/15

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4

Progress Description

Indicative Quarterly Progress per Assigned Percentage (%)

Robot Status

Q1 Q2 Q3 Q4 Activity not initiated on time or progress slower than planned (annual target will not be met) 0-10% 11-24% 25-37% 38-49% Not AchievedProgress slower than planned(annual target unlikely to be fully achieved) 11-24% 25-37% 38-49% 50-99% Partially AchievedDelivery on track (annual target likely to be achieved) 25-49% 50-74% 75-99% 100% Achieved

Robot Status Legend

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4th QUARTER 2014/15 PERFORMANCE SUMMARY AGAINST THE APP

Branches/Units Number of

Quarterly targets in

APP

Achieved

Quarterly

Targets

Partially

Achieved

Quarterly

Targets

Not

Achieved

Quarterly

Targets

Policy and Planning 3 0 2 1

Petroleum and Petroleum

Products Regulation10 3 2 5

Nuclear Energy 12 5 6 1

Clean Energy 4 3 0 1

Programmes and Projects 5 3 2 0

Corporate Services 4 2 1 1

Financial Management Services 1 1 0 0

Governance and Compliance 0 0 0 0

Total 39 17 13 9

Out of a total of 39 fourth quarter 2014/15 targets, the department achieved 17 (44%) of its targets, partially achieved 13 (33%), and did not achieve 9 (23%).

Highlights of Targets achieved

• 2.2% of people with disabilities, against target of 1.8%

• 5 izimbizos/PPP conducted which is 100% achievement

Summary of Targets not achieved

• 42.5% of women in SMS positions, vs : 38.55%

• 10.26% of vacancy rate against the target of 10%

Comments

• The department will focus on females for vacant positions at SMS level in order to

address the target of 42.5% women.

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Programme 1: Administration (Corporate Services, 4th Qt 2014/15)


100% approved invoices paid within 30 days of receipt.


None.

Comments

The Department has continued to maintain a good record of paying invoices within

30 days.

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Programme 1 (Financial Management Services, 4th Qt 2014/2015)


• Technical outputs from DOE have been included in the IEP final report.

• Draft 20 Year Liquid Fuel Master Plan (20YRLFM) is currently undergoing

consultation process with SOCs before it can be submitted to Cabinet for

approval.


• Promulgation of norms and standards for municipal network asset rehabilitation.

Comments

• The delay in municipal network asset rehabilitation is due to finalization of funding

options

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Programme 2 (Energy Policy and Planning , 4th Qt 2014/15)


• Enforcement notices issued in 85% of cases where non-compliance is

identified during routine compliance inspections was achieved.


• 100 % arbitration requests could not be finalised due to limited cooperation between

parties.

• 30% of licence applications where BEE ownership is at least 50% could not be achieved.

• Implementation and monitoring of the biofuels pricing framework.

• 10 published working rules.

Comments

• Some of the targets could not be achieved as they are dependent on external parties such

as the Task Team on Biofuels which comprised of different departments and new issues

are continuously being added.

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Programme 3 ( Petroleum and Petroleum Products Regulation , 4th Qt 2014/15)


• 14 030 non-grid connections achieved against the target of 15 000.

• The 11th IPP report on construction has been completed. BW1 is at 99% complete and

BW2 is at 47% complete. 25 IPPs have reached COD for Bid Window 1 and 9 IPPs have

reached COD for Bid Window 2 and are in full commercial operation.

• Ngwaabe IeC is completed and was operationalized by the 22nd of May 2015 .


• 2 new bulk substations built against the target of 14.

Comments

• The delays of building new bulk substations are due to late start of the project, delays in

designs and delivery of ordered materials.

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Programme 4 ( Electrification and Energy Programme and Project Management, 4th Qt 2014/15)


• Development of the implementation plan on the Mission Report was finalised and

approved.

• Nuclear security compliance reports developed and approved.

• 2 nuclear safeguards compliance report developed and approved.

• 1 nuclear safeguards compliance report developed and approved.

• 3 public awareness campaigns conducted.


• Development of the Fund Bill is in progress and consultations with Chief State Law

Adviser is in progress. This target was partially achieved.

Comments

• Procurement process for new nuclear build programme in progress.

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Programme 5 (Nuclear Energy, 4th Qt 2014/15)


• None.


• 1.5 TWh of energy savings from EEDSM projects (cumulative).

• Development of baseline energy profiles for additional 30 municipalities.

• Promulgation of NEE Strategy document.

• Solar water heating units in residential and commercial sectors .

Comments

• The process of developing the templates for Measurement and Verification of energy savings has

commenced.

• Solar water heater contacting model submitted to Cabinet for moving the programme from Eskom

to DOE.

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Programme 6 (Clean Energy, 4th Qt 2014/15)

4th Quarter 2014/15Financial Performance

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PRESENTATION LAYOUT

• 4th Quarter Financial Performance for 2014/15 - Overview per Economic Classification

• 4th Quarter - Top 5 Major Cost Drivers (Goods & Services) for 2014/15

• 4th Quarter Financial Performance for 2014/15 – Overview per Programme

• 4th Quarter Transfer Payment Schedule for 2014/15

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4th QUARTER FINANCIAL PERFORMANCE FOR 2014/15Overview – Economic Classifications

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VOTE 29: ENERGY 2014/15

ECONOMIC CLASSIFICATION ADJUSTED BUDGET ACTUAL VARIANCE %

VARIANCE% BUDGET EXPENDED

Rand - Thousand R'000 R'000 R'000 % %

TOTAL

7,437,794

6,220,113

1,217,681 16.37% 83.63%

Compensation of Employees 273,246 264,266 8,980 3.29% 96.71%

Goods & Services

244,081

209,341

34,740 14.23% 85.77%Payments for Financial Assets

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- 0.00% 100.00%

Transfers & Subsidies

6,915,239

5,742,710

1,172,529 16.96% 83.04%

Payments for Capital Assets

5,195

3,763 1,432 27.56% 72.44%

4th QUARTER FINANCIAL PERFORMANCE - 2014/15 VARIANCES

• The Department’s 2014/15 adjusted budget was a total of R7.44 billion

• As at 31 March 2015, a total of R6.22 billion or 83.6% of this adjusted budget had been disbursed.

• This resulted in an unspent budget of R1.22 billion or 16.37% of the adjusted allocation, mainly due to the under spending in the transfer payments economic classification.

Compensation of employees: • The budget under-spending in this economic classification accumulated to

R8.98 million by year-end due to the high rate of attrition during the financial year.

• Also contributing to the variance was the delays in filling of vacancies, some positions had to undergo lengthy work study processes, which had to be finalized before the position could be filled.

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4th QUARTER FINANCIAL PERFORMANCE FOR 2014/15VARIANCES (Continued)

Goods & services: • The under-spending of R34.74 million or 14.23% of the total adjusted

budget for goods and services for the 2014/15 financial year. • The under-spending is mainly attributable to the delayed appointment of

service providers, delayed commencement of projects resulting in incomplete projects at year-end as well as operational savings brought about by cost reduction measures implemented during 2014/15.

Transfer payments: • The Department disbursed payments totalling R5.74 billion to public

entities, municipalities and implementing agents which resulted in a budget under-spending of R1.17 billion (16.96%) at year-end. The under-spend is mainly due to:

INEP Non-grid: R35.53 million (33.7%) below budget attributable to the late start of the programme’s implementation in 2014/15.

EEDSM Eskom (SWHP): R1.14 billion (69.4%) was not transferred to Eskom, as a result of changes to the implementation model.

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4th QUARTER (TOP 5) - MAJOR COST DRIVERS: GOODS AND SERVICES

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• The total budget spent on the procurement of various Goods & services amounted to R157.2m;

• The top 5 cost items collectively accounted for 75.1% of the total spend, an increase from 74% reported in 2013/14

• A significant portion of the Department’s goods and services spending, 26.9%, was directed towards travel and subsistence cost, a decrease from 31.2% expended on this item in 2013/14. The decrease is attributable to the implementation of cost containment measures in 2014/15.

• Leases is mainly for office accommodation lease rentals for head office regional offices . Spending on consultants increased from 13.6% reported in 2013/14 to 20.91% in 2014/15.

COST DRIVERS - GOODS AND SERVICES2014/15 2014/15

April-March 2015% of Total Goods &

Services SpentR'000 R'000

Travel and subsistence 56,344 26.91%

Consultants: Business and advisory services 43,780 20.91%

Operating leases 27,145 12.97%

Venues and facilities 19,706 9.41%

Computer services 10,264 4.90%

Total –Top 5 157,239 75.11%

TOTAL –Goods & Services 209,341 100.00%

4th QUARTER FINANCIAL PERFORMANCE FOR 2014/15 - per PROGRAMME

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PROGRAMMES ADJUSTED BUDGET ACTUAL VARIANCE %


R'000 R'000 R'000 % %

TOTAL 7,437,794 6,220,113 1,217,681 16.37% 83.63%

Administration 260,601 257,168 3,433 1.32% 98.68%

Energy Policy & Planning 53,053 41,749 11,304 21.31% 78.69%Petroleum & Petroleum Products Regulation 78,210 64,548 13,662 17.47% 82.53%Electricity and Energy Programme Management

4,217,327

4,180,973 36,354 0.86% 99.14%

Nuclear Energy 846,529 845,418 1,111 0.13% 99.87%

Clean Energy 1,982,074 830,257 1,151,817 58.11% 41.89%

Please see a detailed breakdown of 4th Quarter Financial Performance for 2014/15 per programme in Appendix B.

4th QUARTER TRANSFER PAYMENT SCHEDULE FOR 2014/15

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Programme Projects & Entities Adjusted YTD-Mar YTDBudget Actual Variance Variance R’000 R’000 R’000 %

Programme 6 EEDSM - Municipalities 136,905 136,905 - 0.00%EEDSM – Eskom 1,636,400 500,000 1,136,400 69.45%SANEDI 162,685 162,685 - 0.00%IPEEC,IRENA- Int. fees 1,680 1,678 2 0.12%

Programme 5 NNR 33,697 33,697 - 0.00%NECSA 760,678 760,678 - 0.00%IAEA,GIF,AFRA- Int. fees 17,640 17,003 637 3.61%

Programme 4 INEP - Municipalities 1,104,658 1,104,658 - 0.00%INEP - Eskom 2,948,037 2,948,037 - 0.00%INEP – Non-grid 105,525 70,000 35,525 33.67%

Programme Households 3,965 3,963 2 0.05% 1,2,3 APPA,IEF- Int. fees 2,494 2,594 -100 -4.01% SETA transfers 875 812 63 7.20%Total Transfers 6,915,239 5,742,710 1,172,529 16.96%

2014/15 Roll-over application

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Quarter 4 - Roll over application • The Department submitted a request to the National Treasury motivating for a

portion of the unspent budget to be rolled over into the 2015/16 financial year to enable the completion of some projects which commenced in 2014/15.

• The rollover submission included the following:

Transfer Payments –budget balance R1.17 billion• R1.14 billion to implement the SWH programme. Approval of the new

implementation model has been received from National Treasury.• R35.5 million to pay service providers for services rendered under the INEP

Non-grid project

Goods and services• Costs to the value of R12.16 million met the criteria for a roll over of funds into

the 2015/16 financial year. • The roll over confirmation from National Treasury is still outstanding.

The following can be highlighted from the 4th Q performance:

• Out of a total of 39 fourth quarter 2014/15 targets, the department achieved 17 (44%) of its

targets, partially achieved 13 (33%), and did not achieve 9 (23%).

• The department achieved 2.2% employment of staff with disabilities thus exceeding the target of

1.8%, however has to improve on of women in SMS positions;

• SWH, EE and Bio fuels programme did not achieve the outcomes as planned, due to different

reasons;

• Progress on target with the RE IPP programme:Bid Window (BW) 1 is 99% complete, and BW2 is

at 47% complete. 25 IPPs have reached their Commercial Operation Date (COD) for BW 1, and

11 IPPs have reached COD for BW 2 and are in full commercial operation producing about 1871

MW;

The number of electricity connections achieved in the 4th Qt 2014/15 stood at 87 664. Cumulative

connections for 2014/15 amounted to 233 455;

The draft 20 YR Liquid Fuels Roadmap was completed but is currently undergoing consultation;

• A total of 1580 fuel samples were achieved for the financial year 2014/15, due to improved

processes in 4th quarter of which 1080 samples were done;

• DOE has unspent its budget by R1.22 billion or 16.37% of the adjusted allocation, mainly due to

the under spending in the transfer payments economic classification;

• All service provider invoices were paid within 30 days of receipt and submitted to NT by the 7th of

each month.

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Conclusion 4th Quarter 14/15

Overview of 2014/15 Financial year

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KEY ACHIEVEMENTS FOR 14/15 FINANCIAL YEAR

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Policy Development:

• Integrated Energy Plan (IEP): Since the approval and publication of the first

draft during the 2013/14 financial year, we have addressed the public comments

and produced a draft report which includes the technical outputs. The final IEP

report will be submitted to Cabinet during the third quarter of the 2015/16

financial year.

• 20 year Liquid Fuels Framework (20YRLFRM) - The draft 20YRLFRM has

been completed but it is currently undergoing consultations process before is

submitted to Cabinet for approval,

• The Draft Gas Utilization Master Plan was completed and is being considered

within the DOE; and

• The IRP was implemented according to timeframes set out in IRP 2010.

KEY ACHIEVEMENTS FOR 14/15 FINANCIAL YEAR (cont)

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Electrification Programme

• The total household connection target for 2014/15 was 265 000 grid and 15000 non-grid and achieved 247 485 with 233 455 grid and 14 030 non-grid connections.

• More than 70% of the funding was allocated to the 24 most deprived District Municipalities.

Community Upliftment

One Integrated Energy Centre (IeC) at Ngwabe village in Limpopo province has been completed.

The Thembisile Hani IeC in the Eastern Cape has not been completed due to contractual issues and acquisition of land issues

Learners Focus Week: A leaners focus week was held to disseminate information on energy as well as encouraging students to take science and mathematics subjects to enable them to be eligible to career paths related to the energy sector. More than 300 students participated


Community Upliftment (CONT.) Workshops: Four (4) workshops were conducted on business opportunities in

the energy sector for women in Gauteng, Western Cape, KwaZulu-Natal and Mpumalanga Provinces. A total of 350 women from the historically disadvantaged communities participated. The workshops provided information on business opportunities in the energy sector which includes renewables, electricity infrastructure, oil and gas.

• Participate in the June 16 Youth day and Nelson Mandela Day.

• International Women’s day celebration and launch of terms of reference for the Department’s Women Forum.

Petroleum• 2070 site inspections were conducted by Department officials during 2014/15,

to ensure regulatory compliance concerning petroleum products’ specifications and standards by all manufacturers, wholesalers, and retailers.

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Petroleum (cont.)

• 712 out of 1050 (67.8%) licence applications received were finalised within 90

days.

• 26 site & retail out of 30 site & retail (86.7%) new to industry licence

applications received were finalised within 60 days.

• Over 40 PPPs were hosted during the year, focusing, amongst others, on the

improvement of the petroleum licencing process and the role of the

applicants in improving the turnaround time.

• Margin adjustments as part of the implementation of the Regulatory Accounting

System (RAS) were effected in December 2014.


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Nuclear

• Nuclear Build: Two studies were completed in the period under review: (a) Finance Options, Models and Solutions for the nuclear build programme (in conjunction with the National Treasury and Department of Public Enterprises), and (b) Economic Impact of Localisation of the nuclear programme. Recommendations from these two studies will be presented to the Energy Security Committee in order to make an informed decision on financing of the nuclear build programme

• 5 Vendor parade workshops have been held; and• 50% authorisation applications were processed and approved within the

stipulated turn around time of 8 weeks.

Financial • All invoices were paid within 30 days of receipt; and• The AGSA reported that for the 2014/15 financial year, the Department has achieved a

Clean Audit.

CHALLENGES

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Background on Challenges facing the Department and the energy

sector:

• Reduce escalating energy prices of both electricity and petroleum products, to

cushion the adverse impact on the poor.

• Implement our plans to keep the lights on in the short- medium- to long- term,

in the context of Eskom’s balance sheet challenges. This includes finding a

solution to finance the various projects in a way that balances steep electricity

tariff increases on one hand, and on the other, against blackouts and stunted

economic growth due to lack of adequate power generation capacity.

• Provide short term/ immediate power solutions that will assist the country to

meet the current energy demand, until Medupi, Kusile and Ingula pump storage

station are fully operational in the absence of a clear ESI end state.

• Filling of positions timeously is a challenge as well as obtaining the requisite

skills.

CHALLENGES (cont)

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• Secure liquid fuels supply chains including crude oil supply, refining and

distribution.

• Improve our Energy Efficiency and Demand Side Management –

Implementation of new contracting model for the SWH programme.

• Transform the energy sector - bring more historically disadvantaged role

players into the economic mainstream and increase access to ordinary South

Africans to modern energy services.

• The aging electricity distribution infrastructure – its contribution to blackouts,

load shedding and investment requirements.

• INEP – capacity of Municipalities to deliver on the electrification programme

– Growing cost per connection as the programme moves deep into rural

areas, and

– Network capacity constrains.

CHALLENGES AND OUTSTANDING ISSUES –PLANS TO ADDRESS ISSUES

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• Nuclear – Finalisation of the amendments to the NNR Amendment Bill, National

Radioactive Fund Bill and the Draft Nuclear Energy Bill to accommodate further

consultation. Proposed submission to Cabinet is 2015/16 financial year.

• Consolidated monitoring and evaluation of departmental programmes –

challenges of funding were experienced in this area to address the performance of

programmes like; INEP, IPPs and energy efficiency initiatives. Requested

additional funding for operational budget, as well as “top slicing”.

• SWH roll-out – The implementation of the new Contracting model and

establishment of the local SWH manufacturing industry took much longer than

anticipated. Implementation plan still to be finalised.

• Gas – The development of an gas industry is required to ensure the

implementation of energy mix policy.

CHALLENGES AND OUTSTANDING ISSUES –PLANS TO ADDRESS ISSUES (cont.)

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• Electricity Distribution backlogs – The DOE received an allocation of R320 mil

to run a pilot on addressing the backlog model. Additional funding has been

requested from NT to address these issues. Not only infrastructure funding, but

also for planning, project management and oversight activities.

• Bio-fuels programme – Finalisation of food stock, subsidy and pricing framework

to be reached between different departments.

• Oversight of SOE’s - Oversight of SOE’s remains a challenge for the Department

due to governance challenges experienced by some of the SOE/Cs and capacity

challenges within the DOE . Requesting urgent additional funding for improving

this function, as well as looking at re-allocation of specific tasks within DOE.

Summary APP1st Quarter 2015/16

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Inter-Branch Comparison of Progress, 1st Quarter 2015/16

1st QUARTER 2015/16 PERFORMANCE SUMMARY AGAINST THE APP

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Branches/UnitsNumber of Quarterly

targets in APP

Achieved

Quarterly

Targets

Partially

Achieved

Quarterly

Targets

Not

Achieved

Quarterly

Targets

Policy and Planning 18 11 3 4

Petroleum and Petroleum Products

Regulation3 1 0 2

Nuclear Energy 13 7 1 5

Clean Energy 7 3 2 2

Programmes and Projects 11 6 2 3

Corporate Services 5 3 1 1

Financial Management Services 1 1 0 0

Governance and Compliance 3 1 2 0

Total 61 33 11 17

For the first quarter 2015/16, out of a total of 61 targets, the department achieved 33 (55%) of its targets, partially achieved 11 (18%), and did not achieve 17 (28%).


• Vacancy rate of 9.7% was achieved against the target of 10%.

• HR plan was reviewed.

• A target of 2% of people with disabilities employed was achieved.

• Training of officials in nuclear was partially achieved as only three officials were trained.

• Out of 18 bilateral agreements, 13 were entered into. This target was partially achieved


• 50% of women in SMS positions was not achieved as the figure is currently at 38%.

Comments

• The process of recruiting more females on SMS positions has commenced for vacant

positions.

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Programme 1: Administration (Corporate Services , 1st Qt 2015/16)


• 100% approved invoices paid within 30 days of receipt was achieved.


• None.

Comments

• None.

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Programme 1:Administration (Financial Management Services , 1st Qt 2015/16)


• Draft Coal, Gas, Petroleum and commodity flows compiled.

• A draft GUMP has been developed and being considered for approval.

• Gas Amendment Bill – consultation with NEDLAC has taken place.

• Consultation and internal engagement on draft 20YLFMP report has taken place with SOCs.

• Comments on SA Biofuels Regulatory Framework have been included in the framework and submitted for

Ministerial approval.

• Consultation on Petroleum Pipelines Act with NERSA has taken place and Amendment Regulations are

submitted for Ministerial approval to promulgate.

• NERA Bill has been submitted and approved by Cabinet with certain conditions.


• Revised ADAM Report could not be finalised.

• Norms and Standards for municipal assets.

• Review and revise the electricity industry structure and propose options.

• Development of the SFF legislation could not be achieved this quarter.

Comments

• The SFF legislation will be prioritised in 2016.

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Programme 2: Policy and Planning, 1st Qt 2015/16)


• 607 retail site inspections conducted: January to March 2015. The target was

exceeded by 107 new retail site inspections.

• Enforcement notices issued in 90% of cases where non-compliance is identified

during routine compliance inspections.


• Enforcement notices issued in 95% of cases where non-compliance is identified

during routine fuel sample testing.

Comments

• None.

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Programme 3: Petroleum and Petroleum Products Regulation, 1st Qt 2015/16)


• All IeCs were monitored during the first quarter. Monthly reports were submitted on the

engagements with IeCs.

• Provincial reports prepared from the INEP Municipality Programme.

• Contracts for locally manufactured products placed. Training & capacity building of installation

teams in identified municipalities completed.

• The 12th IPP report on construction has been completed. BW1 is at 99% complete and BW2 is

at 64% complete. 26 IPPs have reached COD for Bid Window 1 and 11 IPPs have reached COD

for Bid Window 2 and are in full commercial operation.


• Project Management Business Process.

• Implement dashboards for monitoring of 3 projects.

Comments

• None.

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Programme 4: Electrification and Energy Programme and Project Management, 1st Qt 2015/16)


• Draft updated National Nuclear Disaster Management Plan – relevant stakeholders consulted on

progress regarding the implementation and response of the action plan on the emergency plan.

• Draft report for transactional advisor motivation completed.

• 70% of authorisation applications processed within the 8 week time period.

• Nuclear safeguard compliance reports submitted for approval.

• One nuclear safeguard compliance audit submitted and approved.

• 1 community outreach event held.


• Draft revision of the NNR Amendment Act.

• Fund Bill.

Comments

• Additional vendor workshop been held.

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Programme 5: Nuclear Energy, 1st Qt 2015/16)


• Energy consumption baseline - Stakeholder engagement process with an additional 20 target

municipalities conducted.

• Renewable Energy Implementation Report - Developed the Terms of Reference &

for the appointment of a service provider.

• Appointment of a service provider for the coordination & management of the hosting of SAIREC.


• There were no SWH units installed this quarter. The Cabinet Memorandum which contains the

clarification on the mow of the programme form Eskom to DOE was approved on 26 June 2015.

Comments

• None.

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Programme 6 Clean Energy, 1st Qt 2015/16)

1st Quarter 2015/16Financial Performance

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PRESENTATION LAYOUT

• 1st Quarter Financial Performance for 2015/16 - Overview per Economic Classification

• 1st Quarter - Top 5 Major Cost Drivers (Goods & Services) for 2015/16

• 1st Quarter Financial Performance for 2015/16 – Overview per Programme

• 1st Quarter Transfer Payment Schedule for 2015/16

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QUARTER 1- FINANCIAL PERFORMANCE FOR 2015/16Overview – Economic Classifications

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ECONOMIC CLASSIFICATION 2015/16 ENE

YTD BUDGET

YTD ACTUAL

YTD VARIANCE

YTD % VARIANCE

YTD % BUDGET

EXPENDEDR'000 R'000 R'000 R'000 % %

TOTAL

7,482,094 1,922,345

1,895,160 27,185 1.41% 98.59%Compensation of Employees 289,479 67,927

70,437 -2,510 -3.70% 103.70%

Goods & Services 203,116 51,680 29,444 22,236 43.03% 56.97%

Transfers and Subsidies

6,985,492

1,801,842

1,793,969 7,873 0.44% 99.56%Payments for Capital Assets

4,007 896 1,305 -409 -45.65% 145.65%

Payments for Financial Assets

- - 5 -5 0.00% 0.00%

QUARTER 1 - FINANCIAL PERFORMANCE FOR 2015/16 VARIANCES

• The Department’s 2014/15 adjusted budget is a total of R7.48 billion

• On 30 June 2015, a cumulative budget of R1.92 billion was available from which R1.9 billion or 98.6% was utilized resulting in a budget underspending of R27.19 million or 1.41%. The Transfers category accounted for 37.6% and goods and services for 59.9% of the total under spending.

Compensation of employees:

• R2.51 million (3.70%) over budget attributable to the once-off gratuity paid in April 2015 which was funded, however there were unfunded fixed term contract positions which are carried additional to the establishment.

• The Department also had a budget reduction of R22.11 million in 2015/16, and this will have an impact on the monthly/quarterly variances.

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QUARTER 1 - FINANCIAL PERFORMANCE FOR 2015/16

VARIANCES (continued):

Goods and services:• R22.24 million (43.03%) below budget, major variances being in:

Consultants / business advisory services item (R10.57m) attributable to delays in activating projects carried over from the previous financial year;

Operating leases (R8.54m) due to outstanding office accommodation lease invoices which have not been received from DPW as planned;

Computer services item (R1.40m) attributable to delays in installation of services at new regional office premises.

Transfer payments • R7.87 million (0.44%) below budget due to the non-disbursement of payments in

INEP Non-grid: R10.74 million (50%). Some invoices which were returned to service providers for correction as these documents contained some anomalies.

Payments for capital assets• R408 thousand (45.56%) over budget, due to the timing of the procurement of

office furniture & equipment

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QUARTER 1 - TOP 5 MAJOR COST DRIVERS: GOODS AND SERVICES

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• The total budget spent on the procurements of various Goods & services amounted to R29.4m;

• The top 5 cost items collectively accounted for 73.98% of the total spend;• A significant portion of the Department’s goods and services spending, 38.58%,

was directed towards travel and subsistence cost.

COST DRIVERS - GOODS AND SERVICES2015/16 2015/16

April-June 2015% of Total Goods &

Services SpentRand thousand R'000 R'000Travel and Subsistence 11,360 38.58%Consult:Business & Advisory Services 3,686 12.52%Venues and Facilities 2,479 8.42%Advertising 2,479 8.42%Communication 1,779 6.04%Total –Top 5 21,783 73.98%TOTAL –Goods & Services 29,444 100.00%

QUARTER 1 - FINANCIAL PERFORMANCE FOR 2015/16 - per PROGRAMME

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PROGRAMMES 2015/16 ENE

YTD BUDGET

YTD ACTUAL

YTD VARIANCE

YTD % VARIANCE

YTD % BUDGET

EXPENDEDR'000 R'000 R'000 R'000 % %

TOTAL 7,482,094 1,922,345 1,895,160 27,185 1.41% 98.59%

Administration 242,598 57,257 53,786 3,471 6.06% 93.94%Energy Policy & Planning

45,096 11,209 8,958 2,251 20.08% 79.92%

Petroleum & Petroleum Products Regulation

74,378 18,507

14,992

3,515 18.99% 81.01%

Electricity and Energy Programme Management

5,778,297 1,413,270 1,403,826

9,444 0.67% 99.33%

Nuclear Energy 654,398 394,072 391,805 2,267 0.00% 0.00%

Clean Energy 687,327 28,030 21,793 6,237 22.25% 77.75%

Please see a detailed breakdown of 1st Quarter Financial Performance for 2015/16 per programme in Appendix D.

1ST QUARTER TRANSFER PAYMENT SCHEDULE FOR 2015/16

51

PROGRAMME TRANSFER DETAILS

2015 ENE YTD YTD

Budget Budget Actual Variance Variance

R’000 R’000 R’000 R’000 %Programme 6 EEDSM - Municipalities 177,899 - - - 0.00%

EEDSM – Eskom 398,315 - - - 0.00%SANEDI 64,861 16,215 16,215 - 0.00%

Programme 4 INEP - Municipalities 1,980,340 - - - 0.00%INEP - Eskom 3,613,243 1,378,886 1,378,886 - 0.00%INEP – Non-grid 131,067 21,540 10,799 10,741 49.87%

Programme 5 NNR 21,487 7,878 7,878 - 0.00% NECSA 580,358 377,224 377,224 - 0.00% IAEA- Int. fees 16,612 - 457 -457 0.00%Programme 1 Households 388 99 2,114 -2,015 -2035.35% SETAs 922 - 396 -396 0.00% Total Transfers 6,985,492 1,801,842 1,793,969 7,873 0.44%

52

QUARTER 1 - TRANSFER PAYMENT SCHEDULE FOR 2015/16

• The Department disbursed a total of R1.79 billion from a budget allocation of R1.8 billion resulting in a YTD budget under-spending of R7.87 million or 0.44%.

• INEP Non-grid project below budget by R10.74 million (50%). Invoices received from service providers were returned for rectification due to the quantities billed not corresponding with the actual installations performed.

• Transfer payments to SETAs and leave gratuities to officials was overspent. The SETA payment made in June was planned for payment in July.

• The major contributor to the over spending in household is a GEPF liability paid in May 2015.

The following can be highlighted from the 1st Q performance:

• Vacancy rate has decreased;

• Draft GUMP has been developed and being discussed within DOE;

• Gas Amendment Bill – consultation with NEDLAC has taken place;

• Consultation on Petroleum Pipelines Act with NERSA has taken place and Amendment Regulations are

submitted for Ministerial approval to promulgate;

• NERA Bill has been approved by Cabinet with certain conditions;

• Development of the SFF legislation could not be achieved this quarter;

• REIPP programme progress:

BW1 is at 99% complete and BW2 is at 64% complete. 26 IPPs have reached COD for Bid Window 1 and

11 IPPs have reached COD for Bid Window 2 and are into full commercial operation

• Draft revision of the NNR Amendment Act and Fund Bill were not completed;

• Additional vendor workshop been held;

• Energy consumption baseline - Stakeholder engagement process with an additional 20 target municipalities

conducted;

• No SWH units installed this quarter - Cabinet approved on 26 June 2015 moving of programme from Eskom to

DOE and

• Much more financial control is exercise to prevent underspending – underspending of 1.41% in the first quarter.

53

Conclusion 1st Quarter 15/16

Thank You!

54

Appendix AAPP Performance 4th Quarter

2014/15

55

56

Programme 1: Administration (Corporate Services, 4th Qt 2014/15) Annual Target

2014/15(from Strategic Plan - link to

Technical Indicator Description)

Quarterly Target(from APP)

Progress this Quarter("achieved", or "partially achieved", or

"not achieved", and support for the self-assessment)

Comments(constraints, variances, likelihood of

annual achievement, corrective actions, etc)

Vacancy rate below 10% at least maintained.

Vacancy rate reduced to 10%. Vacancy rate stands at 10.26% The delays were experienced in the constitution of the Panel Members. Measures have been put in place to expedite the speedy appointment of Panel Members

1.8% of people with disabilities employed.

1.8% of people with disabilities employed.

Achieved: 2.2% of people with disabilities as of 31 March 2015

The target has been met due to the increased recruitment of personnel for the quarter, mainly through internship and learnership programmes

42.5% of women in SMS positions.

42.5% of women in SMS positions. Not Achieved: 38.55% as at 1 December 2014

Some women in SMS retired/resigned at the end of October and November 2014 which resulted in a decrease in the achievement.

20 Izimbizo PPPsconducted.

Five (5) Izimbizo PPPs conducted. Achieved 8 Izimbizo conducted. (1) Stakeholder Engagement with Moqhaka Municipal Council. (2)Visit to the Fuel Cell Project and walkabouts at Naledi Trust. (3) Inspection of electrification project and walk about in Nyakelang . (4) Inspection of electrification project and walk about in Malungane. (5) Community engagement in Malungane. (6) Electrification project inspection and walk-about in Welverdiend (7) Community engagement in

57

Programme 1:Administration (Financial Management Services , 4th Qt 2014/15)

Annual Target 2014/15

(from Strategic Plan - link to Technical Indicator Description)


Progress this Quarter("achieved", or "partially achieved", or "not

achieved", and support for the self-assessment)

Comments(constraints, variances,

likelihood of annual achievement, corrective

actions, etc)

Unqualified audit report by the Auditor-General achieved for 2013/14.

No target set for this quarter. N/A None



Achieved,3 reports of approved invoices paid within 30 Days of receipt submitted to NT by the 7th of each month.

None

58

Programme 1: Administration (Governance and Compliance , 4th Qt 2014/15)






Comments(constraints, variances, likelihood of annual

achievement, corrective actions, etc)

Average MPAT score of at least 3.1 achieved for moderated assessment of 2013/14; with at leastthe following sub-scores:• KPA 1 – 3.3;• KPA 2 – 3.2;• KPA 3 – 3.1; and• KPA 4 – 2.9.

No target set for this quarter. The MPAT process will begin in the second quarter of 2015/16

The MPAT process will begin in the second quarter of 2015/16

59

Programme 2: Energy Policy and Planning , 4th Qt 2014/15Annual Target

2014/15(from Strategic Plan - link to Technical

Indicator Description)


Progress this Quarter("achieved", or "partially achieved", or "not achieved",

and support for the self-assessment)



actions, etc)

Finalised IEP submitted to Cabinet Finalised IEP submitted to Cabinet. Partially Achieved A draft report which includes the technical outputs from the Department of Energy have been incorporated in the final IEP report.

None .

Draft 20YRLFMPsubmitted to Cabinet for approval.

Draft 20YRLFMP report submitted to Cabinet for approval.

Partially achieved Draft 20YRLFRM completed but currently undergoing consultation process with SOCs before taken to Cabinet for approval.

None

60

Programme 2: Energy Policy and Planning , 4th Qt 2014/15Annual Target








Promulgated policy for the standard offer scheme for reducing energy in the building envelope.

No target set for this quarter. Partially Achieved The draft Policy is in place but the Standard Offer scheme is awaiting departmental ratification.

Norms and standards for municipal asset management set with the concurrence of the energy regulator.

Promulgation ofnorms and standardsfor municipal assetrehabilitation.

Not Achieved Awaiting the close out report from the Adam Pilot .

61

Programme 3:Petroleum and Petroleum Products Regulation , 4th Qt 2014/15Annual Target








2 000 retail sitecompliance inspectionsconducted.

2 000 retail sitecompliance inspectionsconducted (cumulative target).

Achieved 607 retail site inspections conducted: January to March 2015. The target was exceeded by 107 new retail site inspections.

Enforcement notices issued in 85% of cases where non compliance is identified during routine compliance inspections.

Enforcement notices issued in 85% of cases where non-compliance is identified during routine compliance inspections.

Achieved Enforcement notices issued in 100% of cases where non-compliance was identified during routine compliance inspections. Out of 607 retail site compliance inspections conducted during the 4th Quarter, 6 non-compliance cases were identified and 3 enforcement notices issued. The remaining 3 non-compliance were price related and were corrected immediately hence no notices

Enforcement noticesissued in 95% of cases where non-compliance isidentified during routine fuel sample testing.

Enforcement noticesissued in 95% of cases where non-compliance isidentified during routine fuel sample testing.

Not Achieved Out of 500 fuel samples tested, 11 samples for petrol and 33 for diesel were found to be non compliant to the standards. The procedure is that a re-sampling and a confirmatory test is done before a notice is issued. This is still pending

100% of arbitrationrequests finalisedwithin the prescribedtimeframes.

100% of arbitrationrequests finalisedwithin the prescribedtimeframes.

Not achieved Voluminous and complex nature of Arbitration requests, and the delays caused by back and forth exchanging of Parties' representations to Controller.

62

Programme 3:Petroleum and Petroleum Products Regulation , 4th Qt 2014/15Annual Target








30% of licenceapplications where BEE ownership is at least 50%.

30% of licenceapplications where BEE ownership is at least 50%.

Not achieved Not enforced, current legislation makes no reference to BEE. Can only be done once legislation has been reviewed.

Progress reports on RAS implémentation.

Progress reports on RAS implémentation.

Achieved The margin adjustments were implemented in December 2014

Adjust the BSS assetbase using economic indices.

Implementation of the BSS asset base into the RAS margin calculations.

Partially Achieved The process of signing the contract was prolonged by KPMG. Delays by the oil companies in submitting service station data (Volumes).

63

Programme 3:Petroleum and Petroleum Products Regulation , 4th Qt 2014/15








Promulgation and implementation of the MDZ system.

Implementation of the revised MDZ system.

Partially Achieved The project commenced late due to a delay in obtaining approval internally. Only phase 1 was completed out of the 4 phases.

Implementation and monitoring of thebio‑fuels pricingframework.

Implementation and monitoring of thebio‑fuels pricingframework.

Not Achieved Awaiting approval of the subsidy framework by the Intergovernmental Task Team on Biofuels.

Promulgation and implementation of the revised BFP.

10 Published working rules. Not Achieved The project was put on hold by the Branch Head in order to restructure the approach.

64

Programme 4: Electrification and Energy Programme and Project Management, 4th Qt 2014/15








11 monthly reports on the allocation of funding andmonitoring of progress onthe number of additionalhouseholds electrified with grid electrificationtowards the 2014/15target of 265 000 in the electrification plan.

Three (3) monthly reports (December to February) on the allocation offunding and monitoring of progress on thenumber of additionalhouseholds electrified with grid electrificationtowards the 2014/15target of 265 000 in the electrification plan.

Partially Achieved: January 2015 - March 2015. Combined 4th Quarter connections Rollovers:8991

Actual: 75561 Eskom Own funding : 3112 Total per 4th quarter : 87664 Total year to date: 233455

None

Three (3) quarterly reportson the allocation offunding and monitoring ofprogress on the building/ upgrading of electrificationinfrastructure projectstowards the 2014/15target of:• 14 new bulksubstations built;• Ten (10) additionalsubstations upgraded;• 350 km new MV powerlines constructed; and• 220 km of existing MVpower lines upgraded.

One (1) quarterly report(3rd quarter) on theallocation of funding and monitoring of progress on the building/upgradingof electrificationinfrastructure projectstowards the 2014/15target of:• 14 new bulksubstations built;• Ten (10) additionalsubstations upgraded;• 350 km new MV power lines constructed; and• 220 km of existing MV power lines upgraded.

Partially achieved

2 new bulk substations built- Mfinizo 132/22 2x10MVA substation- Graafwater bulk infrastructure

2 additional substations upgraded- Obed Nkosi switching station- Calitzdorp bulk infrastructure

29.4km new MV power lines constructed- 8 KM Line Oskraal- GOSO ELECT LINK LINE 15/16- Calitzdorp bulk infrastructure line

-0km existing MV power lines upgraded

Most projects are still in progress but behind schedule due to:- late starting,- design and scope changes,- delivery of long lead material,- late appointment of contractors, and- delays due to rainy season

Projects are being fastracked and will be closely monitored to ensure that the annual target is achieved.

65

Programme 4: Electrification and Energy Programme and Project Management, 4th Qt 2014/15







likelihood of annual achievement, corrective actions,

etc)

11monthly reports on the allocation of funding and monitoring of progress on the number of additional households electrified with non-grid electrification towards the 2014/15 target of 15 000 in the electrification plan.

Three (3) monthly reports (December to February) on the allocation of funding and monitoring of progress on the number of additional households electrified with non-grid electrification towards the 2014/15 target of 15 000 in the electrification plan.

Achieved: 14 030 achieved against the 15 000 target

None

Three (3) quarterly reports on progress made with regards to the construction and operation phases ofIPP projects.

One (1) quarterly report (3rd quarter) on progress made with regards to theconstruction and operation phases of IPP projects.

Achieved:The 11th IPP report on construction has been completed. BW1 is at 99% complete and BW2 is at 47% complete. 25 IPPs have reached COD for Bid Window 1 and 9 IPPs have reached COD for Bid Window 2 and are into full commercial operation.

None

66

Programme 4: Electrification and Energy Programme and Project Management , 4th Qt 2014/15








Three (3) quarterly reports on progress made in 2014/15 with regards to the establishment of two (2) IECs.

One (1) quarterly report (3rd quarter) on progress made in 2014/15 with regards to the establishment of two (2) IEC.

Achieved: Ngwaabe IeC is completed and will be operationalized by the 22nd of May 2015 while Thembisile Hani IeC has been delayed due to outstanding land disposal issue under consideration by the Department of Rural Development and also the withdrawal of the contractor who has been appointed by PetroSA (project sponsor). The contractor increased the projecte costs.

PetroSA to process the appointment of new contractor. Department of Rural Development has received drawings of the land to be used so that they can make a determination on whether the land will be disposed or leased to the co-operative that will be operating the IeC.

Programme 5: Nuclear Energy , 4th Qt 2014/15








Fully operational andfunded NRWDI.

Transferred Vaalputsdisposal facility andrelated functions, assets and staff to the NRWDI and produce status report.

Partially achieved: Business Plan to assist the Board of NRWDI to draft its strategy was submitted to the Board

Business Plan to assist the Board of NRWDI to draft its strategy was submitted to the Board. Task Team addressing section 197 transitional arrangements at Necsa was formed. TOR to establish Steering Committee to address transitional arrangements submitted to ADG in February 2015.

Develop implementationplan based on theMission Report andcommence withimplementation.

Implementationcommenced.

Achieved: Action plan approved by the acting DG

None

Implementation of procurement process (if approved).

Implementation of procurement process (if approved).

Partially Achieved: Pre-procurement process completed

Preparation for a procurement process only ended in March2015.

Submission to Cabinet for approval of implementation plan to support Nuclear FuelCycle Strategy.

Submission to Cabinet for approval of implementation plan to support Nuclear Fuel Cycle Strategy.

Partially Achieved: Extract of the Minutes from NEWG

Strategy presented at Nuclear Sub working Group and it is 90% completed as noted at the NEWG.

67


68








100% of authorizationapplications considered within the eight-week time period.

100% of authorizationapplications considered within the eight-week time period.

Partially achieved: 26 authorizations were approved, 13 (50%) met the turnaround time of 8 weeks.

Factors which contributed to this result: Submission drafted late - 2 authorisations Delayed Recommendation letter - 5 authorisations Delayed in DG's office - 6 authorisations

Eight (8) nuclearsafeguards compliancereports submitted to the relevant decision‑makingstructures.

Two (2) nuclearsafeguards compliancereport submitted to the relevant decision‑makingstructures.

Achieved: Inspection reports approved by DG

None

Four (4) nuclearsafeguards complianceaudit submitted to the relevant decision‑makingstructures.

One (1) nuclearsafeguards complianceaudit submitted to the relevant decision‑makingstructures.

Achieved: Audit report approved by DG None


69








Two (2) Nuclear securitycompliance reportssubmitted to the relevantdecision‑makingstructures.

Nuclear securitycompliance reportssubmitted to the relevantdecision‑makingstructures.

Achieved: Inspection reports approved by DG None

Submission to Cabinet for public consultation (ifapproved by the FOSAD Cluster).

Presentation to the FOSAD Cluster. Partially Achieved: Correspondence to Legal Services.

NNR Act Amendments under legal review. Unexpected loss of human resources in the Chief Directorate Policy. Finalize appointment of CD nuclear policy.

Submission to Cabinet for public consultation (ifapproved by the FOSAD Cluster).

Presentation to the FOSAD Cluster. Not Achieved Relevant stakeholders consulted and consolidation of inputs still in progress. Unexpected loss of human resources in the Chief Directorate Policy. Finalize appointment of CD nuclear policy.

Submission to FOSAD Cluster). Draft Fund Bill consultedwith FOSAD Cluster.

Partially Achieved: Correspondence to Legal Services and Chief State Law Adviser.

Fund Bill still with CSLA for comments.

Five (5) public awarenesscampaigns andcommunity outreachevents held.

Two (2) public awarenesscampaigns held.

Achieved: 3 public awareness campaigns completed

3 public awareness campaigns completed.

Programme 6: Clean Energy , 4th Qt 2014/15

70








1.5 TWh of energy savings realised andverified from EEDSMprojects.

1.5 TWh of energy savings realised from EEDSM projects(cumulative).

Partially achieved. Templates for Measurement and Verification of energy savings for the 2014/15 municipal EEDSM projects developed, circulated to all M&V service providers. M&V service provider for 2014/15 FY appointed. Scope for the Measurement and Verification of energy savings discussed and agreed with appointed external M&V Professionals.

Late implementation of projects by beneficiary municipalities. Delays on procurement of an M&V service provider. Delays in municipal procurement.

Developed energyconsumption baselinesfor additional 30municipalities.

Developed baselineenergy profilesfor additional 30municipalities.

Partially achieved. Several Municipal workshops on the achievement of the 2014/15 EEDSM project activities were held. 2014/15 EEDSM projects implemented by municipalities.

Inadequate reporting from municipalities on progress made. Regular workshops are held to improve reporting.

Promulgation of NEE strategy document (if approved by Cabinet).

Promulgation of NEE Strategy document(if approved by Cabinet).

Partially achieved. Still waiting for the reviewed NEES to be discussed. However, the process to develop post-2015 Energy Efficiency Targets and Action Plans has been started.

The delays in the tabling of the reviewed NEES at Cabinet.

485 000 solar water heating units installed in residential and commercial sectors.

485 000 solar water heating units installed in residential and commercial sectors.

Partially achieved. total of 412,959 SWH units have been installed to date. The Programme Implementation

Contract between DoE and Eskom was terminated and the new Implementation model proposed for the programme has not been approved by Cabinet as yet. Internal process are in progress to have the Cabinet submission tabled.

Appendix BFinancial Performance per

Programme 4th Quarter 2014/15

71

Programme 1: Administration

72

The under-spending of R3.43 million or 1.32% is mainly due to savings realized as a result of:• Compensation of employees R606 thousand - Vacancies during the financial year• Goods and services R1.34 million – cost containment measures which resulted in

operational savings in a number of items such as consultants, contractors and outsourced services, travel and subsistence and office consumables and pending expenditure for goods and services.

• Payments for Capital Assets - delayed procurement of furniture for regional offices due to the delayed relocation to new office accommodation (R1.43m).

Administration 2014/15



Rand - Thousand R'000 R'000 R'000 % %

TOTAL 260,601 257,168 3,433 1.32% 98.68%

Compensation of Employees 132,127 131,521 606 0.46% 99.54%

Goods & Services 118,209 116,873 1,336 1.13% 98.87%

Payments for Financial Assets 4 4 - 0.00% 100.00%

Transfers & Subsidies 5,066 5,007 59 1.16% 98.84%

Payments for Capital Assets 5,195 3,763 1,432 27.56% 72.44%

Programme 2: Energy Policy and Planning

73

R11.30 million or 21.31% budget under-spending due to:• Compensation of employees R1.65 million - Vacancies during the financial year• Goods and services R9.65 million savings on some projects due to the cost of services

rendered being lower than anticipated, projects which could not be completed by year end as envisaged as a result of operational delays – projects affected included, the review and enhancement of energy data collection and management tools, process and systems project (R2.03m) and the study and data collection on the energy footprint and energy savings potential in heavy industry (R3.03m), these studies were undertaken to support policy development for the Integrated Energy Plan.

• Significant operational saving (R3.6m) on the item travel and subsistence was achieved due to cost reduction measures.

Energy Policy & Planning 2014/15



Rand - Thousand R'000 R'000 R'000 % %TOTAL 53,053 41,749 11,304 21.31% 78.69%Compensation of Employees 30,406 28,754 1,652 5.43% 94.57%

Goods & Services 22,605 12,954 9,651 42.69% 57.31%

Payments for Capital Assets 42 41 1 2.38% 97.62%

Programme 3: Petroleum & Petroleum Products Regulation

74

Petroleum & Petroleum Products Regulation 2014/15



Rand - Thousand R'000 R'000 R'000 % %TOTAL 78,210 64,548 13,662 17.47% 82.53%Compensation of Employees 44,285 41,927 2,358 5.32% 94.68%Goods & Services 31,709 20,309 11,400 35.95% 64.05%

Transfers & Subsidies

2,216 2,312 -96 -4.33% 104.33%

The under-spending of R13.66 million or 17.47% is mainly due to savings realized as a result of:• Compensation of employees R2.36 million - Vacancies during the financial year• Goods and services R11.4 million – cost containment measures which resulted in

operational savings on travel and subsistence, catering, advertising and venues and facilities. Also projects which could not be finalized by year end due to the delayed commencement and finalization of projects which amongst others are: R6.80 million remaining under the sampling and testing of petroleum products in the

South African Petroleum Industry in terms of regulations regarding Petroleum Products Specifications and Standards

R1.25 million for a project to review the application of magisterial district zone (MDZ) system to determine the transport tariffs included in the price structures of petrol,

diesel and illuminating paraffin.

Programme 4: Electricity & Energy Programme & Project Management

75

Electricity & Energy Programme & Project

Management2014/15



Rand - Thousand R'000 R'000 R'000 % %TOTAL 4,217,327 4,180,973 36,354 0.86% 99.14%Compensation of Employees 36,483 36,224 259 0.71% 99.29%Goods & Services 22,585 22,016 569 2.52% 97.48%

Payments for Financial Assets 29 29 - 0.00% 100.00%Transfers & Subsidies 4,158,230 4,122,704 35,526 0.85% 99.15%

The under-spending of R36.35 million or 0.86% is mainly due to savings as follows:• Compensation of employees - R259 thousand - Vacancies during the financial year• Goods and services - R569 thousand – cost containment measures implemented,

resulted in operational savings in a number of items such as consultants, travel and subsistence.

• Transfer Payments - INEP Non-grid project (R35.5m) for the installation of solar home systems as a result of operational delays in finalizing contracts with service providers and the subsequent late commencement of projects. A roll-over request was submitted to the National Treasury for these funds to enable service providers to complete work in their designated areas and also to allow for proper evaluation of work performed prior to

executing final payments.

Programme 5: Nuclear Energy

76

Nuclear Energy 2014/15



Rand - Thousand R'000 R'000 R'000 % %TOTAL 846,529 845,418 1,111 0.13% 99.87%Compensation of Employees 13,979 13,446 533 3.81% 96.19%Goods & Services 20,535 20,594 -59 -0.29% 100.29%Transfers & Subsidies 812015 811378 637 0.08% 99.92%

The under-spending of R1.11 million or 0.13% is mainly due to savings realized as a result of:• Compensation of employees R533 thousand - Vacancies during the financial

year• Transfer Payments – Member ship fee payment (R637 thousand) to the

Generation IV International Forum(GIF), an international body which researches and develops the next generation of nuclear systems, was paid in April due to the processing time required by National Treasury and the Reserve Bank for executing international payments.

Programme 6: Clean Energy

77

Clean Energy 2014/15



Rand - Thousand R'000 R'000 R'000 % %TOTAL 1,982,074 830,257 1,151,817 58.11% 41.89%Compensation of Employees 15,966 12,394 3,572 22.37% 77.63%Goods & Services 28,438 16,595 11843 41.64% 58.36%Transfers & Subsidies 1937670 801268 1136402 58.65% 41.35%

The under-spending of R1.15 billion or 58.11% is mainly due to savings as follows:• Compensation of employees - R3.57 million - Vacancies during the financial year• Goods and services – R11.84 million – cost containment measures - resulted in

operational savings in a number of items such as consultants, travel and subsistence and projects which could not be finalized before year-end as anticipated due to the pending finalization of the procurement process – project affected amongst others are:

Technical audit for measurement and verification (M&V) of energy savings achieved from the implementation of the municipal energy efficiency and demand side programme (R5.26m), the appointment of a service provider for the management and coordination of South Africa’s International renewable energy conference (SAIREC) to be hosted in October 2015 (R3m) and Energy Efficiency awareness campaigns which did not take place as anticipated resulting in an underspend in the items – Venues/Facilities (R2.6m).

Programme 6: Clean Energy (continued)

78

Transfer Payments

• At the close of the 2014/15 financial year, the Eskom Solar Water Heater Programme reflected an under spending of R1.14 billion attributable to a number of implementation challenges faced by DoE and Eskom.

• On account of the aforementioned challenges, a re-engineering of the programme was undertaken by the Department during the financial year under review. This culminated in the termination of the DoE-Eskom MoA (by mutual agreement) in November 2014 and request was sent to Cabinet for the approval of the Revised Contracting Model.

• A request has also been submitted to National Treasury to roll over funding of R1.14 billion over to the 2015/16 financial year to implement Solar Water Heater Projects at municipalities across all nine regions.

Appendix C APP Performance 1st Quarter

2015/16

79

Programme 1:Administration (Corporate Services , 1st Qt 2015/16)

80








actions, etc)

Percentage of vacancyrate.

Vacancy rate below 10% maintained. Achieved an average of 9.7% Delays in filling the posts

Number of HR Plansreviewed.

Review HR Plan. Achieved None

Percentage of people with disabilities employed.

2% of people withdisabilities employed.

Achieved None

employees in the DoE trained on the Nuclear Skills DevelopmentProgramme.

70% of employees in the DoE trained on the NuclearSkills DevelopmentProgramme.

Partially achieved Three officials trained on Nuclear

The officials from Nuclear have identified both Nuclear and generic training courses in their PDPs. The officials from nuclear need to review their PDPs in order to meet the set target The target must be changed to read "Employees in Nuclear branch…." not DoE

Percentage of women in SMS positions. 50% of women in SMSpositions.

Not Achieved (38%) None

Programme 1: Administration (Financial Management Services 1st Qt 2015/16)

81








Result of the annual audit. Unqualified audit report by the AG achieved for2014/15.

Achieved An unqualified audit of performance information and financial statements for 2014/15 was obtained

None

100% approved invoices paid within 30 days ofreceipt.


Achieved, 3 Reports of approved invoices paid within 30 days of receipt submitted to NT by the 7th of each month.

None

Programme 1:Administration (Governance and Compliance 1st Qt 2015/16)

82








etc)

Number of institutionaloperational plansproduced.

One 1 institutional operationalplan produced.

Achieved None

Number of bilateralintergovernmentalengagements or visitshosted in the energysector, excluding Africa(inbound & outbound).

18 bilateralintergovernmentalengagements or visitshosted in the energysector, excluding Africa(inbound & outbound).

Partially Achieved 13 bilateral intergovernmental engagements were conduct. Denmark x 3, Russia, UK, France, Norway, Hungary, Sweden, USA x 3 (telecon, business delegation, Embassy delegation).

Number of bilateralintergovernmentalengagements or visitshosted in the energysector, with African states(inbound & outbound).

10 bilateralintergovernmentalengagements or visitshosted in the energysector, with Africanstates (inbound &outbound).

Partially Achieved 1 Hosted Senegal Study Tour on Energy,2 bilateral meeting with Botswana, 3 participated in the state visit to Mozambique, 4 Ministerial follow up visit to Mozambique, 5 hosted bilateral meeting with DRC on the Grand Inga on hydropower project.

Programme 2:Policy and Planning 1st Qt 2015/16

83






Comments(constraints, variances, likelihood of annual achievement, corrective

actions, etc)

Annual energy balance (2013) published byMarch 2016.

Draft 2013 energycommodity flowscompiled.

Achieved Drafts Coal, Gas, Petroleum and Electricity commodity flows compiled

None

Submission of GUMP & its Implementation Plan for Cabinet approval.

Development of the draft GUMP Report.

Achieved A Draft GUMP Report has been developed and submitted to the Department for approval

None

Submission of the draft Gas Amendment Bill for Ministerial approval for submission to Cabinet.

Consultation ofNEDLAC on the draftGas Amendment Bill& submission of theNEDLAC Report.

Achieved NEDLAC was consulted and a report has been submitted to the Department

None

Publish 20YLFIRM forexternal consultation.

Consultant & internal engagement on the draft 20YLFIRM Report.

Achieved Consulted with SOCs (PetroSA, Trasnet and SFF)

Lack of internal capacity to complete the 20YLFIRM


84








etc)

Biofuels RegulatoryFrameworkimplemented.

Consolidate public comments; submit revised draft position paper on South African Biofuels RegulatoryFramework forMinisterial approval.

AchievedThe Framework, including the revised Biofuels Feedstock Protocol and the revised Biofuels Subsidy/Financial Models has been submitted for Ministerial approval

The documents were tabled before the Outcome 6 Committee prior to submission to Cabinet. The Committee referred the documents to the Sub-Outcome 2 [Reliable Generation, transmission and distribution of energy] Committee for further interrogation

Draft PetroleumProducts Bill submittedfor Ministerial approval.

Consultation of SOCs on the draft Petroleum Products Bill.

Achieved Consulted with SOCs (PetroSA, Trasnet and SFF)

None

Submission of theconcept document forthe amendment of thePetroleum Pipelines Act for Ministerial approval.

Consultation ofNERSA & SOCs on thePetroleum PipelinesAct. Promulgation of the amendment regulation for the principal act (asan interim measure).

Partially Achieved Consultation with Nersa, Amendment Regulations sent for Ministerial approval to promulgate

Regulations drafted but not yet promulgated

Ministerial approval of the concept document for the SFF-related legislation.

Consultation of CEF Group & SFF on the objective of the intended legislation.

Not Achieved Consulted with SFF

SFF legislation not included as priority in 2015/16 cycle. Will be prioritized in 2016.


85







actions, etc)

Draft Position Paper on Coal for Energy Policydeveloped (basedon duly consideredcomments) & submitted for Ministerial approval.

Research on status on Coal for Energy Policydiscussion paper.

Partially Achieved Mandate on the coal policy lies with the Department of Mineral Resources. DoE participates in the forum to secure coal for power.

Infrastructure needs for energy sector identified& recommendationsmade.

Consultation with Eskom & other stakeholders.

AchievedConsultation on Phakisa A1 Workstream (Development of a Phased Gas Pipeline Network)Consultation under the auspices of the War Room (SOCs role in alleviating Eskom's challenges) DoE/DPE/Eskom engagements on the Mozambique Gas

None

Introduce the National Energy regulator Bill for consideration &support by Cabinet & by Parliament.

N/A AchievedThe Bill was submitted for transmission to Cabinet and approved based on the fulfilment of certain conditions.

None

Introduce the ElectricityAmendment Bill forconsideration & support by Cabinet & by Parliament.

N/A Achieved The Bill could not be processed further by Cabinet Committee based on recommendations by the IMC on Energy.

Cabinet indicates need for end state of sector to be defined before finalizing this Bill.


86








actions, etc)Introduce improved electricity industry structure for consideration & support by stakeholders beforeintroduction to Cabinet & Parliament.

Review & revise the electricity industrystructure & proposeoptions.

Not Achieved Cabinet indicates need for end state of sector to be defined before finalizing this Bill.

Develop Integrated Distribution Infrastructure Plan for the Metro Municipalities (ADAM).

Revised 2008 electricity ADAM report presented to the DoE for adoption.

Not Achieved This target falls under the Programme and Projects Branch which is currently conducting an Adam Pilot project in this regard. Need for consolidation of responsibility regarding the ADAM Project.

Develop norms & standards for municipal asset management in concurrence of the energy regulator.

Develop norms & Standards for municipal asset .

Not Achieved This target falls under the Programme and Projects Branch which is currently conducting an Adam Pilot project in this regard. Need for consolidation of responsibility regarding the ADAM Project.

Develop the electricity price path in line with the IRP, ADAM & Transmission Plan. Obtain approval & amend the Electricity Pricing Policy accordingly forintroduction to Cabinet for approval.

N/A Not Applicable Not Applicable

Introduce the updated IRP for consideration &support by Cabinet & by Parliament.

Collate & synthesis stakeholder comments on draft IRP.

Achieved Draft Updated IRP has been developed. Needs policy adjustment by political principals.


87







actions, etc)

Introduce bidding rounds for renewable energy, cogeneration, coal & gas programmes in line with IRP determinations made by the Minister.

Issue cogeneration RFP. Achieved None

Negotiate PPA & resolve the transmission solutionassociated with power delivery from Inga.

N/A Not Applicable Not Applicable

Contributing to & monitoring of progresson the interventions identified under the warroom.

Progress report on the supply & demand interventions.

Partially Achieved RFI for EEDSM issued. In process of finalizing expedited procurement.

Programme 3:Petroleum and Petroleum Products Regulation 1st Qt 2015/16

88










Achieved Of the 375 site inspections conducted in Q1, only one non- compliance was detected hence one enforcement Notice was issued.

Enforcement notices issued in 95% of cases where non-compliance is identified during routine fuel sample testing.

Enforcement notices issued in 95% of cases where non-compliance is identified during routine fuel sample testing.

Not Achieved 38 of 485 fuel samples failed the tests in Q1. A re-sampling to be conducted on the failed samples before Notices are issued.

40% of licence applications approved have 50% BEE ownership.

N/A Not achieved Not enforced, current legislation makes no reference to BEE. Can only be done once legislation has been reviewed.

Monitoring of RAS implementation. Report on the fuel price & margin adjustments using the RAS model.

Progress reports on RAS implementation.

N/A RAS was implemented in December 2014 and there are no more quarterly targets except in the 3rd Quarter (i.e. December) when the margins will be adjusted using the RAS models. So the 3rd Quarter target is an approved submission to adjust the margins

Programme 4:Electrification and Energy Programme and Project Management 1st Qt 2015/16

89








etc)Number of additional households to beelectrified with grid electrification towardthe 2015/16 target of 260 000 in the NationalE electrification Plan.

25 000 grid households’ connections to be reported.

Partially Achieved: Munic: 8143 households electrified (including roll overs) Eskom: 9271 households electrified (including roll overs) Total: 17 414

17 414 households have been connected to grid ( For now we can say any reason for us not to achieve the quarterly target as the connections are only for 2 months-April to May)

Building /upgrading of electrificationinfrastructure projects toward the 2015/16target of: - 4 new bulk substations built; - 6 additional substations upgraded;- 100 km newmedium-voltage power lines constructed; &- 90 km of existing medium-voltage power linesupgraded.

Provide evaluation report against theImplementation Plan with procurement & execution of the projects.

Not Achieved:

Most projects in the Eskom programme are in progress, while others are still in the technical evaluation stages.

Most projects in the municipal programme have only just started in the month of July 2015 as it is the beginning of the municipal financial year; reporting on these projects will only start in August 2015.


90








Number of additional households electrifiedwith non-grid electrification toward the 2015/16 target of 20 000 in the National Electrification Plan.

3 500 non-gridhouseholds’ connectionsto be reported

Partially Achieved: 3153 achieved against the 20 000 target

Late signing of contracts

Implementation of the 2015/16 National EMP & refine & update the 2016/17 National EMP, pending the availability of resources.

Refine & update the master plan withdata collected frommunicipalities & Eskom.

Partially Achieved: 55 % costing for the 27 district and 60 % with document compilation.

Travel to site in some instances to verify that the scope is correct to inform costing

Annual report on the progress made in2014/15 with regard to the energy centres &development of the draft strategy on rural energy centres.

N/A Partially Achieved: The Stakeholder forum to enable consultation with all the IeC stakeholders was drafted and approved. The IeC strategy discussion document has been completed and submitted for internal consultation.

The draft strategy will be finalized by end of 2015/2016 financial year. The consultation on the strategy will be initiated with the stakeholder forum during the following quarters.

12 site visit reports on the monitoring &management of the IECs.

3 monthly reports (1st quarter) on the monitoring of the IEC’s operations & management made in2014/15.

Achieved: All IeCs were monitored during the first quarter. Monthly reports were submitted on the engagements with IeCs.

There are seven operational IeCs and of these currently all are operating well. There are three IeCs closed down during the previous years and these are under negotiations to resuscitated them.


91








etc)Provincial reports on the performance of the municipalities for the 2015/16 INEP.

Provincial reports prepared from the INEP Municipality Programme.

Achieved: No reports for this quarter as the INEP Municipality programme started in July 2015

No reports for this quarter as the INEP Municipality programme started in July 2015

quarterly reports on conducted site& technical audits during INEP projectsimplementations & the monitoring of projects for 2014/15.

quarterly report on conducted site& technical audits during INEP projectsimplementations & monitoring of projects.

Achieved Conducted technical Audits at four (4) municipalities.

Project Management Business ProcessApproved & implemented.

Stakeholder consultation. Not Achieved: None

Implement 3 dashboards. Implement 3 dashboards. Not Achieved: The dashboard consists of information from 4 units, Programmes and Projects Management Office, Community Upliftment, INEP and Electricity Industry Transformation

No Reports on DOE Youth & Children strategy/Policy were received.


92








Provincial reports on the performance of the municipalities for the 2015/16 INEP.

Provincial reports prepared from the INEP Municipality Programme.

Achieved: No reports for this quarter as the INEP Municipality programme started in July 2015

No reports for this quarter as the INEP Municipality programme started in July 2015

quarterly reports on conducted site & technical audits during INEP projects implementations &the monitoring of projects for 2014/15.

quarterly report on conducted site& technical audits during INEP projects implementations &monitoring of projects.

Achieved Conducted technical Audits at four (4) municipalities.

(45 141) SWH units installed in residential & commercial sectors.

Contracts for locally manufactured products placed. Training & capacity building of installation teams in identified municipalities completed.

Achieved: Internal process to be concluded before the program can be implemented

None


93







actions, etc)

An updated report highlighting achievementsof the implementation of the programme.

Report highlightingachievements of theimplementation of theprogramme.

Achieved None

An annual report on non- REIPPP. N/A Achieved:The 12th IPP report on construction has been completed. BW1 is at 99% complete and BW2 is at 64% complete. 26 IPPs have reached COD for Bid Window 1 and 11 IPPs have reached COD for Bid Window 2 and are into full commercial operation.

None

Provide a sustainable Electricity DistributionIntervention Plan (including the effect on tariffs) & start with the implementation to deal with theelectricity infrastructure backlog in miningtown municipalities, municipalities mentioned in the SoNA & the so-called hot spot areas to receive assistance.

N/A Achieved: To date firth teen (15) Districts have been visited and network plans have been sent to the Department as well as gaps that talks to skills requirements

None

Programme 5: Nuclear Energy 1st Qt 2015/16

94








actions, etc)

Draft updated National Nuclear Disaster Management Plan completed.

Relevant stakeholders consulted onprogress regarding the implementation &response of the action plan on the emergency plan.

Achieved: Minutes of the Emergency Preparedness Review (EPREV) meeting.

None

Procurement of the nuclear power reactor as per the procurement process launched.

Implementation of the procurement process (if approved).

Not achieved Cabinet Granted Conditional approval pending few other submissions.

Programme plan completed & implementationcommenced.

Development of optimized programmeplan completed in line with 2023 as per IRP2010-30.

Not achieved None

Transactional advisors motivation completed. Draft report for transactional advisormotivation completed.

Achieved: MTEF Submission None

PMO established & operational. Submission on PMO motivation submitted to Minister for approval.

Not achieved None


95








actions, etc)

Procurement of the NFC facilities as per the implementation plan launched.

Developedimplementation planbased on the missionreport.

Partially Achieved: Draft Strategy for NFC completed. Plan is pending approval of strategy

Implementation of the nuclear localizationstrategy (if approved).

N/A N/A None

70% of authorization applications processed within the 8-week time period.

70% of authorization applications processed within the 8-week timeperiod.

Achieved: 30 authorizations were received, 26 (87%) were approved and met the turnaround time of 8 weeks.

Factors which contributed to this result: Two authorisations were drafted late - due to CC recommendation letter being late. The other two authorisations were delayed in the approval process.

nuclear safeguard compliance reportssubmitted to the relevant decision‑makingstructures.

nuclear safeguard compliance reports submitted to the relevantdecision‑making structures.

Achieved: 2 Nuclear safeguard compliance report approved.

None

nuclear safeguard compliance audits submitted to the relevant decision‑makingstructures.

One nuclear safeguardcompliance audit submitted to the relevant decision‑makingstructures.

Achieved: 1 Nuclear safeguard compliance audit approved.

None


96








actions, etc)

4 nuclear security compliance reports submitted to the relevant decision‑making structures.

One nuclear securitycompliance report submitted to the relevant decision‑makingstructures.

Achieved: 1 Nuclear security compliance report approved.

None

Submission to Cabinet for public consultation (if approved by the FOSAD Cluster).

Draft version of the National Nuclear Regulator AmendmentAct consulted with stakeholders.

Not achieved Target needs to be revised. The Bill has already been consulted with the stakeholders. The Bill needs to be prepared for submission to CSLA

Submission to the Chief SLA. Bill workshop with stakeholders. Not achieved Organized workshop could not take place

5 public awareness campaigns & community outreach events held.

1 community outreach event held. Achieved: 1 Nuclear Career Exhibition/Awareness event held on 30 May 2015

None

Programme 6: Clean Energy 1st Qt 2015/16Annual Target

2015/16(from Strategic Plan - link to Technical Indicator

Description)





actions, etc)

Planning & developing projects to achieve 0.5 TWh of energy savings per annum.

Finalization of contractualarrangements between theDepartment of Municipalities. Commence with measurements and verification of energy savings for 2014/15 municipal interventions

Partially achieved. Contracts with municipalities have been signed by the partcipating municipalities and Internal Memo and contracts are pendng DoE approval after quality assurance. Measurement and Verification of energy savings for 2014/15 municipal interventions commenced with three appointed M&V bodies.

Developed energy consumption baselines for an additional 20 municipalities.

Stakeholder engagement process with an additional 20 target municipalities conducted.

Achieved. None. This project has been commissioned through GIZ.

45 141 SWH units installed in residential & commercial sectors.

Contracts for locally-manufacturedproducts placed. - Training & capacitybuilding of installation teams in identified municipalities completed.

Not Achieved: There were no SWH units installed this quarter. The Cabinet Memorandum which contains the new proposed implementation framework was only approved on 26 June 2015.

Preparations for the National Rollout of the programme have already started. This includes consultation with key stakeholders, for example, an intergovernmental steering committee inaugural meeting has been planned for the 2 July 2015 to give feedback to sector departments and pave the way forward for implementation.

97

Programme 6: Clean Energy 1st Qt 2015/16

98


(from Strategic Plan - link to Technical Indicator

Description)






Renewable Energy Implémentation Report.

Development of the Terms of Reference &appointment of a service provider.

Achieved. Draft terms of reference have been prepared. Engagement with potential stakeholders such as GIZ has been started.

Draft National Biogas Strategy.

Development &approval of the Termsof Reference forthe National BiogasStrategy.

Partially Achieved. The Terms of Reference have been prepared for BAC submission meeting scheduled for 13 August.

SAIREC Conference Report.

Appointment of aservice provider forthe coordination &management of thehosting of SAIREC.

Achieved. Events Management Company has been appointed; LOC meetings are running monthly; website is up and running; registration has started etc. Most of the sub deliverables as outlined in the ToRs / SLA are in progress.

Energy & ClimateChange Strategy forpublic building sectorapproved.

Draft Energy & Climate Change Strategy approved & released for public consultation.

Partially Achieved. The draft strategy has been completed. A submission for the ADG to note and support the pilot projects as proposed by the strategy has been developed and enroute for signatures

Appendix D -Financial Performance per

Programme 1st Quarter 2015/16

99

Programme 1: Administration

100

The under-spending of R3.47 million or 1.43% is mainly due to savings realized as a result of:• Compensation of employees R3.23 million (10.5%) over budget attributable to the once-off

gratuity paid in April 2015 that was funded, fixed term contract positions carried additional to the establishment and the impact of budget reduction in 2015/16.

• Goods and services R9.5 million (37.5%) under budget due to Consultants / business advisory services item attributable to delays in activating projects carried over from the previous financial year; operating leases item (R8.54m) due to outstanding office accommodation lease invoices which have not been received from DPW as planned and computer services item (R1.40m) attributable to delays in installing services at new regional office premises.

• Transfers and subsidies – R2.4 million over budget. The SETA payment made in June was planned for payment in July, therefore, the over spending will be corrected in July. The major contributor to the over spending in household is a GEPF liability paid in May 2015.

Administration 2015/16


YTD BUDGET

YTD ACTUAL

YTD VARIANCE

YTD % VARIANCE

YTD % BUDGET

EXPENDED

Rand - Thousand R'000 R'000 R'000 R'000 % %TOTAL 242,598 57,257 53,786 3,471 6.06% 93.94%Compensation of Employees 131,214 30,880 34,114 -3,234 -10.47% 110.47%

Goods & Services 106,067 25,382 15,857 9,525 37.53% 62.47%

Transfers & Subsidies 1,310 99 2,510 -2,411 -2435.35% 2535.35%

Payments for Capital Assets 4,007 896 1,305 -409 -45.65% 145.65%

Programme 2: Energy Policy and Planning

101

R2.25 million or 20.08% budget under-spending due to:• Goods and services: R2.548 million or 67.27% under spending. Consultants /

business advisory services under spending attributable to outstanding finalization of processes to activate some projects carried over from 2014/15. No payments has taken place in the following projects which were incomplete by the closure of the previous financial year: The review and enhancement of energy data collection and management tools,

process and systems and The study and data collection on the energy footprint and energy savings

potential in heavy industry, both by Energy Policy and Planning.

Energy Policy & Planning 2015/16

ECONOMIC CLASSIFICATION 2015/16 ENE YTD BUDGET

YTD ACTUAL

YTD VARIANCE

YTD % VARIANCE

YTD % BUDGET

EXPENDEDR'000 R'000 R'000 R'000 % %

TOTAL 45,096 11,209 8,958 2,251 20.08% 79.92%Compensation of Employees

31,735

7,421 7,718

-297 -4.00% 104.00%

Goods & Services 13,361 3,788 1,240 2,548 67.27% 32.73%

Programme 3: Petroleum & Petroleum Products Regulation

102

The under-spending of R3.5 million or 18.9% is mainly due to:• Goods and services R3.6 million or 55.06% underspending due to:

Outstanding payments under the sampling and testing of petroleum products in the South African Petroleum Industry project;

Consultants/business advisory services: under spending attributable to outstanding finalization of processes to activate some projects carried over from 2014/15 including a project to collate detailed operating expenses of a selected number of service station, retail sites and to determine the average operating costs of benchmark service station.

Petroleum & Petroleum Products Regulation 2015/16


YTD BUDGET

YTD ACTUAL

YTD VARIANCE

YTD % VARIANCE

YTD % BUDGET

EXPENDEDR'000 R'000 R'000 R'000 % %

TOTAL 74,378 18,507 14,992 3,515 18.99% 81.01%

Compensation of Employees 50,926 11,945

12,043 -98 -0.82% 100.82%

Goods & Services 23,452 6,562

2,949

3,613 55.06% 44.94%

Programme 4: Electricity & Energy Prog & Project Management

103

The under-spending of R9.4 million or 0.67% is mainly due to:• Compensation of employees - R505 thousand over budget - fixed term contract

positions carried additional to the establishment.• Goods and services – R787 thousand over budget due to the increased travel relating

to verification activities.• Transfer Payments - R10.74 million (0.77%) below budget due to the non-

disbursement of payments in INEP Non-grid. Some invoices which were returned to service providers for correction as some anomalies were detected.

Electricity & Energy Programme & Project

Management2015/16


YTD BUDGET

YTD ACTUAL

YTD VARIANCE

YTD % VARIANCE

YTD % BUDGET

EXPENDEDR'000 R'000 R'000 R'000 % %

TOTAL 5,778,297 1,413,270 1,403,826 9,444 0.67% 99.33%Compensation of Employees

38,864 9,089

9,594 -505 -5.56% 105.56%

Goods & Services 14,783 3,755

4,542 -

787 -20.96% 120.96%

Payments Financial Assets

- - 5 -5 0.00% 0.00%

Transfers & Subsidies 5,724,650 1,400,426 1,389,685

10,741 0.77% 99.23%

Programme 5: Nuclear Energy

104

The under-spending of R2.27 million or 0.58% is mainly due to:• Compensation of employees: R455 thousand - Vacancies during the financial year;• Goods and Services: R2.27 million below budget, mainly due to non-spending in

consultants/advisory services. The evaluation of bid proposals for the following projects were delayed: Develop a detailed Financing Model for the Radioactive waste management fund Development of instructor training material for Nuclear and Radiological emergency

1st Responders.

Nuclear Energy 2015/16


YTD BUDGET

YTD ACTUAL

YTD VARIANCE

YTD % VARIANCE

YTD % BUDGET

EXPENDEDR'000 R'000 R'000 R'000 % %

TOTAL 654,398 394,072 391,805 2,267 0.58% 99.42%

Compensation of Employees 18,479 4,321

3,866

455 10.53% 89.47%

Goods & Services

17,462

4,649

2,379

2,270 48.83% 51.17%

Transfers & Subsidies 618,457 385,102 385,560 -

458 -0.12% 100.12%

Programme 6: Clean Energy

105

The under-spending of R6.24 million or 22.25% is mainly due to:• Compensation of employees - R1.17 million - Vacancies during the financial year;• Goods and services – R5.07 million –Pending finalization of the procurement process,

namely for: The technical audit, measurement and verification (M&V) of energy savings

achieved from the implementation of the municipal energy efficiency and demand side programme (R5.26m),

The appointment of a service provider for the management and coordination of South Africa’s International renewable energy conference (SAIREC) to be hosted in October 2015 at the (CTICC) (R3m) and Energy Efficiency awareness campaigns which did not take place as anticipated resulting in a budget balance under the venues and facilities and advertising items (R2.6m).

Clean Energy 2015/16


YTD BUDGET

YTD ACTUAL

YTD VARIANCE

YTD % VARIANCE

YTD % BUDGET

EXPENDEDR'000 R'000 R'000 R'000 % %

TOTAL 687,327 28,030 21,793 6,237 22.25% 77.75%

Compensation of Employees 18,261 4,271 3,102 1,169 27.37% 72.63%

Goods & Services 27,991 7,544 2,476 5,068 67.18% 32.82%

Transfers & Subsidies 641,075 16,215 16,215 - 0.00% 100.00%

1 portfolio committee on energy 4 th qt 2014/15 and 1 st qt 2015/16 performance reports 4 august...

Documents

highlights of targets

th quarter performance

programmes programme

quarterly targets policy

performance summary

achievement summary

nuclear energy

energy policy