annual performance plan - department of energy · 2018-04-03 · ii annual performance plan 2018/19...

ANNUAL PERFORMANCE

PLANDEPARTMENT OF ENERGY

2018/2019

ANNUAL PERFORMANCE PLAN 2018/19 | Department of Energy i

DEPARTMENT OF ENERGY Annual Performance Plan

2018/19

ANNUAL PERFORMANCE PLAN 2018/19 | Department of Energyii

OFFICIAL SIGN-OFF

It is hereby certified that this Annual Performance Plan:

• Waspreparedinlinewiththetabled2015to2020Medium-TermStrategicFrameworkandtheenergysectorprioritiesoftheNationalDevelopmentPlan(NDP).

• ReflectsperformancetargetsthattheDepartmentofEnergywillendeavourtoachievegiventheresourcesmadeavailableinthebudgetoutcomeforthe2018/19fiscalyear.

Mr. Lloyd GantaActing Chief Operating Officer:Official Resposible for Planning

Ms. Camagwini Ntshinga:Chief Director: Financial &SupplyChainManagement

Mr. Thabane ZuluAccounting Officer

Ambassador Thembisile MajolaDeputy Minister of Energy

Approved By:Mr. Jeff Radebe , MP ExecutiveAuthority

ANNUAL PERFORMANCE PLAN 2018/19 | Department of Energy iii

Introduction .....................................................................................................................................................1

Foreword by Minister...............................................................................................................................2Message from the Deputy Minister.........................................................................................6Statement by Accounting Officer...............................................................................................9

Part A: Strategic Overview.................................................................................................10

1. Situation Analysis.......................................................................................................................................11

1.1 PerformanceDeliveryEnvironment.........................................................................................12

1.2 OrganisationalEnvironment.......................................................................................................13

2. Revision of Legislative and Other Mandates

3. Alignment with the Medium Term Strategic Framework and the

National Development Plan...................................................................................................................13

3.1. Overviewofthe2018/19BudgetandMediumTermExpenditureFramework.......18

3.2 RelatingExpenditureTrendstoStrategicOutcome-OrientedGoals...........................21

Part B: Programme and Subprogramme Plans.................................23

PROGRAMME 1: ADMINISTRATION...............................................................................................................24

1.1 Programme Purpose..................................................................................................................................24

1.2 Budget Sub-Programmes........................................................................................................................24

CrosscuttingProgramme1:StrategicObjectiveandAnnualTargetsfor2018/19..........................24

Cross-cuttingProgramme1:PerformanceIndicatorsandAnnualTargetsfor2018/19MTEF.....24

Cross-cuttingProgramme1:QuarterlyTargetfor2018/19....................................................................... 25

Sub-Programme1.1:Ministry..............................................................................................................................27

Sub-Programme1.2:DepartmentalManagement......................................................................................27

TABLE OF CONTENTS

Sub-Programme1.3:GovernanceandCompliance....................................................................................29

Sub-Programme1.4:FinanceAdministration................................................................................................32

Sub-Programme1.5:AuditServices..................................................................................................................33

Sub-Programme1.6:CorporateServices.........................................................................................................33

Sub-Programme1.7:OfficeAccommodation................................................................................................34

RiskManagement ..................................................................................................................................................36

PROGRAMME 2: ENERGY POLICY AND PLANNING................................................................................37



Sub-Programme2.1:PolicyAnalysisandResearch.....................................................................................38

Sub-Programme2.2:EnergyPlanning..............................................................................................................38

Sub-Programme2.3:HydrocarbonPolicy.......................................................................................................41

Sub-Programme2.4:Electricity,EnergyEfficiencyandEnvironmentalPolicy..................................44

Resource Consideration.........................................................................................................................................49

RiskManagement .................................................................................................................................................. 50

PROGRAMME 3: PETROLEUM AND PETROLEUM PRODUCTS REGULATION.............................. 51

3.1 Programme Purpose.................................................................................................................................. 52

3.2 Budget Sub-Programmes........................................................................................................................ 52

Sub-Programme3.1:Petroleum,Compliance,MonitoringandEnforcement................................... 52

Sub-Programme3.2:PetroleumLicensingandFuelSupply.................................................................... 56

Sub-Programme3.3:FuelPricingRegulation................................................................................................ 57

Sub-Programme3.4:RegionalPetroleumRegulationOffices................................................................. 57

ANNUAL PERFORMANCE PLAN 2018/19 | Department of Energyiv

Resource Consideration......................................................................................................................................... 57

RiskManagement .................................................................................................................................................. 59

PROGRAMME 4: ELECTRIFICATION AND ENERGY PROGRAMME

AND PROJECT MANAGEMENT.........................................................................................................................60



Sub-Programme4.1:IntegratedNationalElectrificationProgramme..................................................61

Sub-Programme4.2:EnergyRegionalOffices...............................................................................................66

Sub-Programme4.3:ProgrammeandProjectManagementOffice......................................................66

Sub-Programme4.4:ElectricityInfrastructure/IndustryTransformation/

CommunityUpliftment/ProgrammesandProjects...................................................................................68

Sub-Programme:CommunityUpliftment/ProgrammesandProjects................................................68


RiskManagement ..................................................................................................................................................71

PROGRAMME 5: NUCLEAR ENERGY..............................................................................................................72



Sub-Programme5.1:NuclearSafetyandTechnology.................................................................................73

Sub-Programme5.2:NuclearNon-ProliferationandRadiationSecurity.............................................74

Sub-Programme5.3:NuclearPolicy..................................................................................................................76


RiskManagement ..................................................................................................................................................80

PROGRAMME 6: CLEAN ENERGY....................................................................................................................81



Sub-Programme6.1:EnergyEfficiency............................................................................................................82

Sub-Programme6.2:RenewableEnergy.........................................................................................................84

Sub-Programme6.3:ClimateChangeandDesignatedNationalAuthority.......................................87


RiskManagement ..................................................................................................................................................91

PART C: Links to other Plans............................................................................................92

1 LINKSTOLONG-TERMINFRASTRUCTUREANDOTHERCAPITALPLANS....................................93

2 CONDITIONALGRANTS...............................................................................................................................94

3 PUBLICENTITIES............................................................................................................................................. 95

4 PUBLIC-PRIVATEPARTNERSHIPS...............................................................................................................96

Part D: Annexure................................................................................................................................97

ACRONYMS AND DESCRIPTIONS....................................................................................................................98

TABLE OF CONTENTS

ANNUAL PERFORMANCE PLAN 2018/19 | Department of Energy 1

Introduction

ANNUAL PERFORMANCE PLAN 2018/19 | Department of Energy2

INTRODUCTIONThe energy sector is governed and regulated by a number

of pieces of legislation, including the Energy White Paper

(1998)andtheNationalEnergyAct,2008(ActNo.34of2008).

TheNational EnergyAct, 2008 (ActNo. 34of 2008)mandates

the Department to ensure that diverse energy resources are

available, in sustainablequantitiesandataffordableprices, to

theSouthAfricaneconomy,insupportofeconomicgrowthand

poverty alleviation, while taking into account environmental

management requirements that are in line with the National

EnvironmentalManagementAct (NEMA), theNationalClimate

Change Response White Paper and the United National

Framework Convention on Climate Change. TheWhite Paper

onEnergyPolicy–SouthAfrica (1998) states the followingas

its objectives: Increasing access to affordable energy services:

Improving energy governance; Stimulating economic growth;

Managing energy-related environmental and health impacts;

Securing supply through diversity. However, many factors

poseapotentialthreattoenergysecurity,includingscarceand

depletingenergyresources,minimisingenvironmentalimpact,

geopolitical instability, and inadequate energy infrastructure.

Therefore, in order to ensure continued security of energy

supply, it is essential that a coordinated and integrated

approachtoenergyplanning,whichtakesthesecomplexissues

intoaccount,isundertakenregularly.

Inthe2018StateoftheNationAddress,hisExcellency,President

RamaphosaindicatedthatyoungSouthAfricanswillbemoved

tothecentreofoureconomicagenda.Theyarealreadyforming

a greater proportion of the labour force on our infrastructure

projects and are the primary beneficiaries of programmes

such as the installation of solar water heaters and the

war on leaks. The Department embarked on various

energyprojectsthatareaimedatresolvingtheenergy

challenges experienced in the past few years. The

projects include: Gas Infrastructure Plan, National

SolarWaterHeaterProgramme(NSWHP),MunicipalEnergy Efficiency Demand Side Management(EEDSM) (0.5 TWh savings), and IndependentPowerProducerPlan.

DuringDecember 2017, theDepartment hostedan Energy Indaba that brought together all the stakeholdersinthesectortoreflectonthecurrentenergy landscape in the country, and tomap outthe way forward to stimulate economic growth,developmentandjobcreation.Broadly,theobjectivesof the Indaba included determining methods to ensure access to energy, and the supply of affordable secureenergyinaclimatecarbonconstrainedenvironment.

ACCESS TO ENERGYThe electrification programme will be strengthened, inorder for it to continue its contribution to socio-economicdevelopment,jobcreation,povertyalleviation,andaddressingpast imbalances. Accordingly, this project will assist theDepartment to fulfil its goal of achieving universal access byformalhouseholdsby2025.Withinthenextthreeyears(MTEF)the Integrated National Electrification Programme (INEP) willdisburse to its implementing agencies (municipalities, Eskomand non-grid service providers) to achieve approximately700000households’connections.Thecountryhasmovedfrom

36%accesstoelectricityin1994to86%accessin2017.Over7.2millionhouseholdshave receivedelectricity throughthe INEP,incollaborationwithEskomandlicensedmunicipalities.While86%isacommendableachievement,thechallengeremains,asmany of our people continue to pursue economic opportunities

elsewhere,andthereforeleavetheirplaceoforigin.

Foreword by Minister


While the available budget has

beenreducedduetotightfiscalconstraints,theelectrification

programme will be refined to ensure efficient utilization of

limited resources while continuing to contribute to socio-

economic development, job creation and poverty alleviation.

Withthisbeingthefifthtermofdemocraticgovernment,more

effortwillbeexerted toensure that the targetof1.25million

householdconnectionsisachieved.

Cabinet approved the updated Integrated Resource Plan

(IRP) that plots South Africa’s energy future over the next 20

years, basedon a process of consultationwith awide variety

of stakeholders in the energy environment. IRP refers to thecoordinated schedule for generation expansion anddemand-sideinterventionprogrammes,whiletakingintoconsiderationmultiple criteria to meet electricity demand. The IRP directstheexpansionoftheelectricitysupplyoveragivenperiodandalsointroducesthepace,scale,affordabilityandenvironmentalconsiderationsforanyfutureexpansionprogramme.

TheIntegratedEnergyPlan(IEP)istheover-archingco-ordinatedenergyplanwhencombiningtheconstraintsandcapabilitiesofalternativeenergycarrierstomeetthecountry’senergyneeds.Itprovidesadetailedanalysisoftheenergysectorbyidentifyingand presenting key assumptions about the macro-economicenvironment and other factors that could have a significantinfluence on future energy demand and supply options.Given thehigh levelofuncertaintyassociatedwith long-termplanning, a scenario-based approachwill be followed. Futureenergy demand is projected and the associated supply sideimplicationswillbedetermined.Onceagain,wereiterate thattheIEPwillbeconcludedduringthe2018/19financialyear.

HYDROCARBONSPetroleum Licensing

ThemandatederivedfromthePetroleumProductsAmendmentAct(PPAA)enablestheDepartmenttolicencethedownstreampart of the petroleum value chain, thus ensuring that thereis orderly functioning of the petroleum industry, whilecontributing to the radical socio-economic transformation

and service delivery imperatives. The Department created asustainable environment for infrastructure investment anddevelopmentofsmallbusinesses,toensureaccesstoaffordableandon-specpetroleumproducts.

Liquid Fuel Industry Transformation

Despite the early adoption of the Petroleum and Liquid

Fuels Charter in 2000, the petroleum sector remains largely

untransformed,particularlyintheretailsector.Tothiseffect,the

Department commissioned an independent audit to confirm

theextentoftransformationinthepetroleumretailsector.The

audit will provide a baseline in the alignment of Petroleum

and Liquid Fuels Charter and the B-BBEE policy framework.

In collaboration with stakeholders with majority commercial

interest, the Department is developing the Petroleum sector

codes, to ensure monitoring, evaluation, reporting and

enforcement. The Department commissioned a review of

the margin determination methodology, in order to achieve

transparent, fair pricing and fair return on investments in the

benchmarkservicestation,secondarystorageanddistribution

Furthermore,inensuringthatfuelsupplyintheeconomyisnot

compromised,theDepartmentconstantlymonitorsfuelsupply

across the value chain, to minimize incidents of fuel supply

disruption.

Refining Capacity

In as far as liquid fuels requirements are concerned, theNDP

points out that South Africa faces challenges with regard

to existing refining capacity. Although the country has six

refineries, four of which are crude oil refineries, our country

importsan increasing shareof refinedproducts.Creatingand


maintaining a balance between energy supply and energy

demandwillcontinuetoformthebasisofourshort,mediumand

long term interventions.Thiswill require the development of

strategicpartnershipsbetweengovernment,theprivatesector

and communities. The Department will continue to promote

theexpansionofrefiningcapacitywithinthepetroleumsector

byengagingwith relevantstakeholders.PetroSA,ournational

oil company, must be used as the vehicle to implement the

provisionsoftheEnergySecurityMasterPlanandtheprovisions

containedintheLiquidFuelsCharter,inpursuitofthecountry’s

aspirationsofenergysecurity.

Thispicture is comparable to the restofAfrica.Africahas the

lowest number of refineries of any continent and fifteen are

located in two countries: SouthAfrica (six) and Egypt (9).The

common feature of these refineries is that they are ageing.

Even in South Africa, most oil refining capacity dates back

to the 1960s. Based on the facts above, it is evident that the

constructionof refineries on the continent has not kept pace

withdevelopmentsintheextractionoftheresource(crudeoil).

Inorder to increase investment inenergy infrastructure, there

isaneedtoconsideranewrefiningcapacity forSouthAfrica.

WithSouthAfricabeinganetimporterofpetroleumproducts,

anewrefiningcapacitypresentsaviableoptionforagasand

oilcompanythatiswhollyownedinSAbutwiththepotential

for regional integration. Consequently, we will soon make a

policydecision regardingthe refiningcapacityof thecountry,

especiallyaswemovetowardsCleanerFuelsII.

Gas

The Department will accelerate the diversification of energy

sources. With rising energy prices, we will seek to diversify

householdfuels.GovernmenthasinitiatedareviewoftheLPG

PricingRegulatoryModel,whichseekstopromoteanincreased

and adequate supply of Liquid petroleum gas (LPG) in the

countrythat isaffordable. It isenvisagedthat thenewPricing

RegulatoryFrameworkwillbeimplementedduringthe2018/19

financial year. The LPG technology system and infrastructure

developmentthatcomewiththeLPGstrategywillberealised,

such as reticulation network, and import and storage facility.

Thiswillbringaboutemploymentopportunities,particularlyfor

theyouth,whostandtobenefit fromskills transferassociated

withsuchdevelopments.

Goingforward,ourgasstrategy,asadoptedandimplemented,

must be viewed within the context of a wider government

strategytogrowtheeconomyandaspartoftheNinePointPlan.

Inordertomeetourenergychallenge,theavailabilityofnatural

gas as reliable combustible fuel and as an enabling source of

electricity power supply to the South African economy will

producedirectandindirectbenefitsforthecountry.

The amendment of the Gas Act has not progressed as well

as envisaged. This is intended to provide an opportunity to

incorporateothergasrelatedissues,suchastheGas-to-Power

ProjectTheBillwillbefinalised soon, inorder to:promotean

efficient, competitive and responsive economic infrastructure,

andinclusiveeconomicgrowth;leverageavailablegasresources

(appropriate dispensation inclusive of natural gas, LNG, CNG,

etc.).TheGas-to-PowerProgrammewillbeimplementedinline

withupdatedIRP.

Independent Power Producers Procurement Programme

Future allocation and bidding rounds for co-generation,

renewableenergy,coalIPPsandgastopowerwillbeinformed

bytheupdatedIRP.Inthisregard,theSouthAfricangovernment

hasestablishedanIndependentPowerProducersProcurement

Programme(IPPPP),whichhassuccessfullydesigned,procured,

monitored and evaluated electrical energy infrastructure

projects from the private sector. This is a demonstration

that both private and public sector funds can contribute to

infrastructureinvestments.Meaningfultransformationremains

ourimmediateconcernforthisprogramme.

Flagship Program

One of the flagship programmes that we had anticipated

wouldregistermuchimpactinourcommunity,especiallygiven

its emphasis on social facilitation, is the SolarWater Heating

Programme.SincetheprogrammewasmovedbackfromEskom,

over80000unitshavebeenmanufactured.However,weneedto

concede that no progress has been registered in respect of the

last and importantphase, i.e. installation.Wehave thus taken

aconsciousdecisiontomovethisphasetotheCentralEnergy

Fund(CEF),forittocommencewithinstallationincollaboration

withtheIndependentPowerProducerOffice(IPP).


Nuclear Energy

The Department is going to undertake a comprehensive

communicationscampaign,togetherwithNECSAandESKOM,to

improveawarenessandunderstandingofnucleartechnologies

amongst the South African population. South Africa remains

committed to ensuring and maintaining effective nuclear

securitymeasuresinrespectofallnuclearandotherradioactive

material, in accordance with our national and international

obligations.We thereforewelcome theentry into forceof the

2005AmendmenttoConventiononthePhysicalProtectionof

NuclearMaterial.National efforts areat anadvanced stage to

ratify the amended convention.We reiterate that the nuclear

expansion programme remains part of the energy mix and that

itwillbeimplementedatapace,scaleandpricethatthecountry

canafford.

State Owned Entities

OverthepastfewyearsourstateownedEntities(SOE/SOCs)have

experiencedmajorgovernanceandoperationalchallenges.Itis

forthisreasonthatGovernmenthastakenadecisionthatthis

situation cannot continue. In this regard, the Inter-Ministerial

Committee(IMC)onSOEReforms,chairedbythethenDeputy

PresidentoftheRepublic,hasmademajorrecommendationsto

turnthesituationaroundatallgovernmentSOE’s.Theentities

inourportfoliocontributeimmenselytowardsservicedelivery,

inpursuitoftheobjectivesoftheNationalDevelopmentPlan.

It is with this inmind that I will ensure that governance and

operationalstabilityatallourSOE’sisrestored.

During the year 2018/19 financial year, I will be engaging

withallourSOE’s,with theaimof improvinggovernanceand

resolvingcompliancechallengesfacedbysomeoftheentities.

Therestructuringof theCEFGroupwillbeundertakenduring

the coming year, so as to create a model that will improve

accountability and ensure that the group operates efficiently and

maximizesitssynergies.TheDepartmentiscurrentlyengagedin

discussionsandprovidingsupporttotheCEFGroup,inorderto

finalisetheturnaroundofPetroSAandtheinvestigationintothe

saleofstrategicstocks.

Grand Inga

SouthAfricahassignedaTreatywiththeDemocraticRepublic

ofCongo(DRC)ontheGrandIngaHydroSchemePowerProject.

This Treaty will be developed in seven phases, as strategic

projectstotransmitpowerfromtheIngaDamthroughthetransit

countries.Wewill make sure that such strategic partnerships

yieldthedesiredresultofsecurityofsupply.Sincethetreatyfor

thedevelopmentoftheGrandIngaHydropowerProjectcame

intoforceinMarch2014,theDRChascommencedtheprocess

ofselectingtheconcessionaire.TheGrandIngaTreatybetween

SAandtheDRCobligesSAtonegotiateanoff-takeagreement

for2500MWofhydroelectricity fromthe IngaHydroProject.

WewillcontinuetoworkwithourneighborsinSouthernAfrica

to concludepower transmission transit arrangements.During

the2018/19financialyear,theDepartmentwillbeaccelerating

implementationofbilateralandregionalagreements, inorder

torealizethebenefitsofenergycooperationintermsofhydro-

electricity,coal,gasandrenewableenergy.

Mr J. Radebe, MP

Minister of Energy


Message from the Deputy Minister

Energy Cooperation

The Department continues to maintain cooperation with

the SADC region, the Africa continent and the rest of the

world.These strategicpartnershipshavebeen in linewith

the energy interest of the country, particularity the need

for energy security of supply, diversification of energy

mix,andaccesstofinance, technology, technicalskilland

information. In linewith this imperative, theDepartment

has forged bilateral and multilateral relations that meet

ourstrategicobjectives.During2018,SouthAfricaassumes

the chairship of BRICS, with the Department leading the

workintheenergysector,and,specifically,hostingtheThird

BRICSEnergyMinistersMeetingandtheMeetingoftheBRICS

WorkingGrouponEnergySavingandImprovementofEnergy

Efficiency.

The 2018 SADC Summit, also under the chairship of South

Africa, will be preceded by a number of sectoral meetings

and engagements, with the Department hosting a meeting

of the SADC Energy Ministers during June 2018. One of the

key deliverables during the country’s chairship of SADC will

bethedevelopmentoftheRegionalGasificationStrategyand

Plan. The country will work with the SADC Secretariat. The

Zimbabwe-basedSADCRegionalIntegratedResourcePlanning

has completed the study on a regional Integrated Resource

Plan. This should cover key mega-resources, such as Inga III,

TeteCoal, theRovuma-basingas-fields, theAngolangasfields

andrenewableoptions.TheDepartmentwillalsoworkwiththe

relevantSADCmemberstatestowardsconcludingandsigning

of the Inter-governmental Memorandum of Understanding(IGMoU) and Inter-utility Memorandum of Understanding(IUMoU)ontheIngaIIItransmissionlineforthetransmissionofpowerfromtheIngaIIIHydropowerProjectwiththeDemocraticRepublicofCongo(DRC).

State Owned Entities

Thesafedisposalofradioactivewasteistheendgoalofthetotalradioactivewastemanagementcycle.Thenuclearcommunity

INTRODUCTIONThe Department is responsible for ensuring exploration,

development,processing,utilizationandmanagementofSouth

Africa’senergysources. In linewiththeprovisionof theWhite

PaperonEnergy,oneofthekeyobjectivesoftheDepartmentis

toensureenergysecurity,which,inessence,isaboutensuring

theavailabilityofenergyresourcesandaccesstoenergyservices

in an affordable and sustainable manner while minimising

the associated adverse environmental impact. Certain factors

poseapotentialthreattoenergysecurity,includingscarceand

depletingenergyresources,minimisingenvironmentalimpact,

geopolitical instability and inadequate energy infrastructure.

In order to ensure continued security of energy supply, it is

essential that a coordinated and integrated approach to energy

planning, which takes into account these complex issues, is

undertakenregularly.

TheSouthAfricanenergysectorisgovernedandregulatedby

anumberofpiecesoflegislation,includingtheNationalEnergy

Act,2008(ActNo.34of2008).TheNationalEnergyActstatesthe

followingasbeingitsobjectives:Increasingaccesstoaffordable

energy services; improving energy governance; Stimulating

economic growth; Managing energy-related environmental

and health impacts; Securing supply through diversity. The

developmentofanenergysector-widetransformationcharter,

in line with the revised codes of good practice is critical

as a driver of transformation across the sector, if the NDP

commitments to dealing with inequality, poverty and high

levelsofunemploymentaretoberealized.


needstobuildconfidencethatsuchwastecanbesafelydisposedinsafe,anenvironmentallyacceptableandeconomicalmanner.To this end, Vaalputs has been established in 1986 as thenational radioactive waste management disposal facility thatservesSouthAfrica’sneedsfordisposingoflowlevelradioactivewaste (LLW)generatedby thenuclear, industrial,medicalandagricultural sectors. Radioactive waste is different from othertypes of waste in that it contains radioactivity above certainconcentrations. This waste needs to be disposed in a special

mannerthatisolatesitfromhumansandtheenvironmentfor

aslongasnecessary.

Radioactivewasteconsistsofmaterialswith radioactive

propertiesthatvarysignificantlydependingonthekind

ofmaterialandconcentration involved.Thewastecan

occurintheformoflargequantitiesofwastecontaining

low concentrations of radioactive materials (soil,

sludge, etc.), drummed operational waste containing

contaminated items (protective clothing, rags, etc.),

solidifiedoperationalwastecontainingspentresinsand

other radioactive components, and spent nuclear fuel

assemblies containing high concentrations of radioactive

(fissile)components.

Localandinternationalpeerreviewsshallbeconductedofwaste

management practises to ensure appropriate benchmarking

and compliance with applicable legislation and international

bestpractise.

Themanagementof radioactivewaste complywith, amongst

other, the following national legislation, international

agreements, standards, safety principles and other codes of

practise.

• national radioactivewaste disposal institute act (act 53 of

2008);

• radioactivewastemanagementpolicyandstrategy for the

RepublicofSouthAfrica(2005).

• nuclearenergyact,1999(actno.46of1999);

• nationalnuclearregulatoract,1999(actno.47of1999);

In the management and disposal of radioactive waste, the

regulator,wastegenerator and repositoryoperatorhave clear

responsibilitiesdefined in the radioactivewastemanagement

policy and strategy for the republic of South Africa. Vaalputs

is authorised by the national nuclear regulator to be used as

a national disposal site for low-level waste (LLW) within the

nuclear regulatory framework of, amongst other, the national

nuclearregulatoract(actno.47of1999)andthenuclearenergy

act(actno.46of1999).tothisregard,Vaalputsisoperatedunder

the regulatory control of the national nuclear regulator and the

safetyofVaalputscomplieswiththenuclearinstallationlicense.

The waste disposal operations at Vaalputs are subject

to continual radiological monitoring of the workers, the

environmentandthepublicatlarge.intheoperationallifetime

of vaalputs, resultsofmonitoringandmeasurementhavenot

shownanytransgressionofregulatorylimitsoroverexposureof

personnel,theenvironmentorthepublicatlarge.

Energy Savings Initiatives

TheDepartment,incollaborationwiththeotherkeygovernment

structures, has introduced initiatives to secure funding to

unlock the potential energy savings in public infrastructure

and buildings through the Nationally Appropriate Mitigation

Actions (NAMA) Facility. The Department will approve the

utilisationofEnergyEfficiencyandDemandSideManagement

(EEDSM)grantfundstobeallocatedtomunicipalitiesthatwill

participateintheNAMAFacility.


In order to reduce the damaging impact from emissions due

toburning fossil fuels in the engines of vehicles, theworld is

movingtowardstheuseofcleanerandmoreefficientelectrically

poweredmodesoftransport.Intheprocess,ithasbeenfound

that electric vehicles (EVs) use about four times less energy

andproducenoemissionsatpointofuse,makingit logicalto

eventually use renewable energy to recharge the batteries of

EVs. It is then important to consider the impact of switching

fromfossilfuelstoelectricityinthetransportsector.Astudyto

investigatethishasbeeninitiatedbySANEDI.Initialcalculations

show that, not only can the new demand for electricity be

suppliedfromexistinglocalcapacity,itcanalsoreduceforeign

exchange payments for petroleum imports and also support

theEskomgridandneedforsales.Notwithstandingrecentand

continued advances in the roll-out of renewable energy and

energyefficiencymeasures,weexpect that coalwill continue

toformasignificantcomponentofourprimaryenergysupply.

Therefore, as a transition measure, carbon capture utilisation

andstoragecontinuestobedevelopedasoneoftheNational

Flagship Programmes of the National Climate Change Response

WhitePaper.FollowingthepublicationoftheAtlasonGeological

StorageofCarbonDioxideinSouthAfricaandtheidentification

ofapotentialstoragebasin,existinggeologicaldatahasbeen

furtherandmoredeeplyanalysed.Anexplorationprogramme

hasbeendevelopedto identifyandcharacteriseasite for the

Pilot Carbon Dioxide Storage Project; it is scheduled to be

completedduring2018/19.

Amb. Thembisile Majola

Deputy Minister of Energy


Thetablingofthe2018/19AnnualPerformancePlansignalsthelastyearofthefifthtermofthisgovernment.Itthusprovidesanopportunity to reflectonkeyprogrammesthatwillaccelerateservicedeliveryintheenergyspaceinthisfinancialyear.

Theenergy sector isgovernedand regulatedby anumberoflaws,includingtheEnergyWhitePaper(1998)andtheNationalEnergyAct,2008(ActNo.34of2008).TheWhitePaperonEnergyPolicy–SouthAfrica(1998)statesthefollowingasitsobjectives:increasing access to affordable energy services: improvingenergy governance; stimulating economic growth; managingenergy-relatedenvironmentalandhealthimpacts;andsecuringsupplythroughdiversificationofresources.

TheNational EnergyAct, 2008 (ActNo. 34of 2008)mandatesthe Department to ensure that diverse energy resources areavailable in sustainablequantities and at affordableprices, totheSouthAfricaneconomy,insupportofeconomicgrowthandpovertyalleviation.Thismustbedonewhiletakingintoaccounttheenvironmentalmanagement requirements that are in linewiththeNationalEnvironmentalManagementAct(NEMA),theNationalClimateChangeResponseWhitePaperandtheUnitedNationalFrameworkConventiononClimateChange. Renewable Energy Independent Power Producer Programme (REIPPP)Our renewable energy programmewas introduced as part oftheenergymixandattractedbillionsofRandsintoourcountry,makingSouthAfricaoneoftheleadingcountriesinrollingoutgood green energy projects. While significant progress hasbeenmadewiththefirstthreewindows,littleprogresshasbeenmadewithbidwindows3,5 and4.However,discussionswiththepowerutility(Eskom)arecontinuinganditisexpectedthatthismatterwillberesolvedduringthe2018/19financialyear.

Governance

Inthe2018/19FinancialYear,theDepartmentwillembarkonanumberofinitiativesaimedataddressingstrategicchallenges,as part of our key core focus areas. In order to realise ourstrategicvision, it is imperativethat theDepartmentcreatesalearningand trainingdevelopmentplatform for the sector, soastoensurethatthescarceandcriticalskillsthatareneededareprovided.TheDepartmentwillformstrategicpartnershipswithrelevantstakeholderstoplananddeveloptherightskillsbasefortheSouthAfricaneconomy.

National Solar Water Heater Programme

The National Solar Water Heater Program embodies thecollaborative spirit of inter-governmental cooperation, withvarious stakeholders from the 3 spheres of governmentworking together. Due to the nature and complexity of itsimplementation, we have resolved to work closely with keystakeholders that contribute to theprogramme.This includesboth national and local government. We are alive to theconcerns of the public regarding the implementationmodel.Inthisregard,wecommittoacceleratingtheinstallationofthealreadyprocuredunitsduringthe2018/19financialyear.

Iwish to thank theMinisterand theDeputyMinister for theirleadership, commitment and dedication to the Department,the entities reporting to theDepartment, and the sector as awhole.Throughprioritising,guidanceandconsiderationoftheconstructive input receivedover thepastyearandduring theEnergyIndaba,IamconfidentthattheDepartmentwillfinaliseallitspendinglegislationandimproveoperationalefficiencytodrivesocio-economicgrowthanddevelopment.

I commitTeamEnergy to continuing todisplay high levels ofexcellenceanddedicationintheserviceofthepeopleofSouthAfrica.

Mr Thabane ZuluDirector-General:Energy

Statement by Accounting Officer


Part AStrategic Overview


1. Situation Analysis Anumberoffactorsposeapotentialthreattoenergysecurity,

including scarce and depleting energy resources, geopolitical

instability,inadequateenergyinfrastructureand,morerecently,

natural disasters. To ensure continued security of energy

supply,itisessentialthatthereisacoordinatedandintegrated

approachtoenergyplanningandcoherentpolicymaking.We

facenumerousenergychallenges;firstly,tomeetrapidlyrising

demandforenergyespeciallyindevelopingcountries;secondly,

to increase energy supply in a globally carbon constrained

environment; and, lastly to ensure security of supply and

affordabilityofenergy forall.Thesearechallenges thatSouth

Africafacesasacountryandintheenergysector.

Constrained government budgets, in both the developed

and developing countries, have necessitated increased

infrastructural investment through innovative private sector

financing options. Institutions that finance infrastructure

development are increasingly broadening their investment

opportunities, innovativefinancingoptions and risk tolerance

levels toward developing markets, greenfield projects and

riskierinfrastructureassetswithagreaterlevelofprivateequity.

The South African situation is no different from that of other

countries. The country’s social, economic and fiscal context

makes it imperative to leverage private sector financing and

investmenttomeetinfrastructureinvestmentneeds.

To alleviate pressure on the fiscus and stimulate economic

growthanddevelopment,thegovernmentneedstoutilisethe

privatesectorforinfrastructuredevelopment,especiallyinterms

ofthedevelopment, implementationandoperationofenergy

infrastructure. In this regard, the South African government

hasestablishedanIndependentPowerProducersProcurement

Programme(IPPPP),whichhassuccessfullydesigned,procured,

monitored and evaluated electrical energy infrastructure

projects from the private sector. This is a demonstration

that both private and public sector funds can contribute to

infrastructure investment.Meaningful transformation remains

ourimmediateconcerninthissector.

1.1 Performance Delivery Environment

Nuclear

Thereisanincreasedneed,notonlyglobally,butalsoinSouth

Africa for mitigation policy efforts to lower the use of fossil

fuelsanddecarbonisetheeconomy,byshiftingto lowcarbon

alternatives.SouthAfricacontributesabout1.5percentofGHG

emissionsandisrankedinthetop20highestGHGemitters,with

emissionpercapitaintheregionof9.5tons,whichiscomparable

to that of developed countries. Currently, nuclear constitutes

about6%oftheSouthAfricanenergymix–with1800megawatt

of electricity supplied to the national grid by the Koeberg

NuclearPowerStationintheWesternCape.Beingadeveloping

country,thekeydriverofourpolicydecisionfornuclearpower

istheeconomicsoftheenergysource.Currently,Koebergisone

ofourlowestcostelectricitysources,andGenerationIIInuclear

powerplants(NPPs)remainagoodeconomicchoiceforSouth

Africa. Generation IV nuclear power plants promise improved

economics and SouthAfrica looks forward to deploying such

advancedenergysystemstosupportitsdevelopment.Beinga

committedpartytotheParisConvention,SouthAfricahasset

ambitiouscarbonreductiontargets,andGenerationIVreactors

will continue the traditionof nuclearpowerbeing the lowest

carbonemitterofallenergysources.Withtheadventofreduced

wastefromthesesystems,thereisnodoubtthatnuclearpower

itself will be more sustainable than ever. One of the most

importantaspectsofnuclearpowerissafety.Withmostofthe

reactorsintheworldstillbeingGenerationIItypes,SouthAfrica

hastakenadecisiontodeployonlyGenerationIIIorabovetype

technologygoingforward.Nuclearpowercontinuestobethe

safestsourceofelectricity.

Currently evolutionary new design NPPs are being deployed

and,throughitsparticipationintheGenerationIVInternational

Forum,SouthAfricaiskeepingabreastofthesedevelopments.

Lessonslearnedfromfirst-of-a-kinddeploymentsareexpected

to drive construction costs down and shorten construction

schedules. The first small modular reactors are under

constructionandseveralhavecleardeploymentroadmapsfor

thenextdecade.

In terms of the nuclear waste management, there has been

progress, as several countries are about to construct final

disposal facilities for spent fuel and high-level radioactive

waste,whichwillhelpaddressoneofthelong-standingpublic

concernsaboutradioactivewaste.

Following the 2017 Clean Energy Ministerial Conference in

Beijing, China, countries proposed that nuclear should be

included in theCleanEnergyMinisterial Forum,asoneof the

clean energy sources. South Africa welcomes this proposal,

Part AStrategic Overview


since we recognise that nuclear energy has the potential to

makeasubstantialcontributiontotheobjectivesoftheClean

Energy Ministerial and has committed itself to participating in

theproposednuclearwork-streamofthisglobalinitiative.

Access to Electricity

In line with the National Development Plan (NDP) the

Departmentremainscommittedtoreachinguniversalaccess

to electrify households by 2025, through the Integrated

NationalElectrificationProgramme(INEP).AsatendofMarch

2017,theDepartmenthadconnected769426householdsto

the grid; this number is expected to increase to 994 426 by

endMarch2018.TheDepartmentismakingpositiveprogress

towards theMediumTermStrategic Framework (MTSF2014-

2019)targetof1,25millionhouseholdsconnectedtothegrid.

Most households that are still to be electrified are in deep

rural areas in the 27 priority Districts in KwaZulu-Natal

and the Eastern Cape. There is a need to build more bulk

infrastructure in theseareas toeffecthouseholdconnection.

Where households are far from the national grid, they will

be connected using off-grid home solar systems. Long-term

sustainabilityof theoff-grid solution is an area that requires

focus.

Despite budget reductions, the MTSF target is still within

reach.Theelectrificationprogrammewillberefinedtoensure

efficient utilization of limited resources, while continuing to

contributetosocio-economicdevelopment, jobcreationand

povertyalleviation.

Lack of skills and resources in municipality technical

departments to plan and manage large electrification

projects remains a challenge that the INEP is facing. In the

year 2018/19 the Department will continue to work closely

with Municipal Infrastructure Support Agent (MISA) to

ensure that municipalities are capacitated and able to rollout

electrificationprojects. IntegratedplanningwithDepartment

ofHumanSettlementwillalsobeimproved.

1.2 Organisational Environment

The Department operates with an approved organisational

structureconsistingof621fundedposts,with543postsbeing

filled and a vacancy rate of 17.60%.The envisaged approved

organisational structure to support the Department Strategy

wasnotfullyimplementedduetofundingrestrictions.

During the 2017/18 financial year, the Department realised

a deficit on Compensation of Employees, due to consecutive

years of budget cuts. The Department has commenced with

theprocess of reprioritization and identifying critical posts to

befilledinthenewfinancialyear(2018/19),inlinewithbudget

realities. Additional employment currently stands at 38 posts

(down from 62 in 2016/17), with 22 posts being Internship

contractsthatareduetoconcludeat31March2018.Four(4)of

theDeputyDirector-Generalpostshavebeenvacantformore

than six months, with the sections being managed through

acting appointments. A process has commenced to fill these

vacancies.

Training and Development

Thereisneedforskillsauditstobeconductedandstrategicplans

tobedevelopedtoensurethatwehaveanadequatesupplyof

skills required in theenergysector.Theskillsplanshouldalso

belinkedtotheenergyinfrastructuredevelopmentplanofthe

country,toensurethatwefocusandinvestinskillsthatwillbe

absorbedandutilisedby theenergy sector.This key strategic

skillsinterventionprogrammewilloptimiseskillsinthesector.

TheDepartmentshouldworkwiththeEnergyandWaterSETA

(EWSETA) to develop an energy skills plan for the country. A

WorkplaceSkillsPlan(WSP)wasdevelopedfortheDepartment,

following the skills audit conducted through the submission

of PersonalDevelopmentPlans (PDPs).Aspartof theprocess

of implementing theWSP,fifty (50) traininganddevelopment

interventionswereidentified.

The Department also offered 37 new bursaries to serving

employees, with effect from the beginning of the 2017

academic year. This brings the total number of employees

studyingpart-timeatvarious institutions to59. Inaddition to

theinternalbursariesprovided,theDepartmentalsohassix(6)

activeexternalbursarieswithpreviouslydisadvantagedyoung

people, and twenty-one (21) sector focussed programmes,

withsixteen(16) learnersonlearnershipsandfive(5)onWork

Integrated Learning programmes. The latter programmes are

being sponsored by the Chemical Industries Education and


TrainingAuthority(CHIETA)andEWSETA.Furthermore,effectivemanagementoftheSkillsDevelopmentProgram and the Internship Programme also resulted in the Departmentwinning two (2) awards (Silver and Bronze) fromtheNationalSkillsAuthorityin2017.

Regional Offices

Initsquesttoimproveandbringservicedeliveryclosertothepeople, theDepartment has secured permanent office spacefor its Regional offices in theMpumalanga, KwaZulu-Natal,North West, Eastern Cape, Western Cape and Limpopoprovinces.TheprocurementofpermanentofficespaceintheGauteng,NorthernCapeandFreeStateprovincesiscurrentlyonhold,duetofinancialconstraints;however,shared office accommodation has been identified as a viableoption.


2. Revision of Legislative and Other Mandates Forthe2018Parliamentaryprogramme,theDepartmenthassubmittedthefollowinglegislationtotheLeaderofGovernmentBusiness,forconsiderationbyParliamentwhichwilleitherbeintroduced.

Name of the Bill Strategic Focus of the BillDate for Submissionof the Bill to Cabinet

Date forSubmissionof the Bill toParliament

Impact

National Energy Regulator AmendmentBill

ToestablishaNationalEnergyRegulator,fortheregulationoftheelectricity,piped-gasandpetroleum pipelines industries

Beforetheendofthe2018/19Financial Year

Dependent on the Portfolio Committee

Toensureanenergysectorthatpromotessocialequitythroughexpandedaccesstoelectricityataffordabletariffsandthroughtargetedsustainable subsidies for needy households

GasAmendmentBill Tofacilitategasinfrastructuredevelopmentandinvestment.TopromoteBroad-BasedBlackEconomicEmpowerment,andtoprovideforsocio-economicandenvironmentallysustainabledevelopment

Beforetheendofthe2018/19Financial Year

Dependent on the Portfolio Committee

Toprovidefortheconstructionofinfrastructuretoimportliquifiednaturalgas(LNG),aswellasfor increasing exploration to find domestic gas feedstock

3. Alignment with the Medium Term Strategic Framework and the National Development PlanTheDepartmenthasalignedits2018/19AnnualPerformancePlanwiththeMTSFand2018/19BudgetOutcome:

Department Goals Department Objectives Linkage to the NDP ProposalsLinkage to the MTSF (2014 – 2019)

(outcomes)Departmental Programme

1. Securityofsupply-Toensure that energy supply is secure and thatdemandiswellmanaged

SO2.1Improvedenergysecurity

SO2.2Improvedliquidfuelsenergy securitythroughthedevelopment&implementation of the LiquidFuels20-YearInfrastructurePlan

SO2.11Ensuresecurityofsupply through additional powergenerationcapacity

Enable exploratory drilling to identify economically recoverablecoalseamsandshalegasreserves,whileenvironmentalinvestigationscontinuetoascertainwhethersustainableexploitationoftheseresourcesispossible.Ifgasreservesareprovenandenvironmentalconcernsalleviated,thendevelopmentoftheseresourcesandgas-topowerprojectswillbefast-tracked

Investinanewheavy-haulrailcorridortotheWaterbergcoalfield,upgradethecentralbasincoalnetworkandexpandtheexportcapacityofthelinetoRichardsBay

Ensure domestic security of coal supply for existing powerstationsthroughanindustrycompact,morecomprehensivecoalfieldsplanningandopeninguptheWaterbergforcoalmining

Outcome 10-AnnualEnergyBalancesprovidedtosupportthecompilationoftheGHGinventory;

Outcome 6-PublicationofanapprovedIEP;

Outcome 6-Takeadecisiononexpandingoilrefiningcapacity;

Outcome 6-Developanationalcoalpolicy,withregulationsthatincludea strategy to secure coal supply andwhichalignswiththemningbeneficiationmandate;

Sub-programme 2.1 : Energy PlanningProgramme Performance Indicators:• Numbersofstudiestodetermine

the impact of Clean Fuels 2 on fuel consumptionbyroadvehiclesandprice elasticity of fuel demand for the Integrated Energy Plan

Sub-programme 2.3: Hydrocarbon Policy: Programme Performance Indicators:• Finalised20YRLFMP• DraftPositionPaperonCoalfor

Energy Policy• DevelopedDraftGUMPandits

Implementation Plan


Department Goals Department Objectives Linkage to the NDP ProposalsLinkage to the MTSF (2014 – 2019)

(outcomes)Departmental Programme

Fast-trackthedevelopmentofoff-shoreWestCoastgas,coupledwithincrementalpowergenerationunits

Developinfrastructurefortheimportofliquefiednaturalgas,mainlyforpowerproduction

Upgraderefineriestoensuretheymeetnewfuelqualitystandardsandinsistonstrategicfuelstockstoensuresecurity of supply

Continuetoimportrefinedfuels,ensuringthatthegrowingdeficitinpetroleumproductsismet,anddeferthedecisiononanewrefinery

Outcome 6-DevelopandimplementaGasInfrastructureMasterPlan;

Outcome 6-Developafundingmechanism for upgrading of existing refineriestoensuretheymeetnewfuel-qualitystandards;

Outcome 6-Refine,updateandimplement the integrated Resource Plan(IRP);

Outcome 6-PSPFramework:Randsprivateinvestmentandmarketshareofprivateownershipofinbaseload,renewableenergy,fuelsandgas

Sub-programme2.1 : Energy PlanningProgramme Performance Indicators:• Studytodeterminetheimpactof

Clean Fuels 2 on fuel consumption by roadvehicles

• Studytodeterminethepriceelasticityof fuel demand

Sub-programme 2.4: Electricity, Energy Efficiency and environment Policy: Programme Performance Indicators:• IntegratedResourcePlan(IRP)• Additionalpowergenerationcapacity

as per the IRP

2.Infrastructure-Tofacilitateanefficient,competitiveandresponsiveenergyinfrastructurenetwork

SO2.9Reviewthebulkelectrical infrastructure requiredfortheuniversalaccess to electricity

4.3Monitorenergyinfrastructuredevelopment

SO4.2Enhanceprogrammesandprojectmanagement

Ring-fencetheelectricitydistributionbusinessesofthe12largestmunicipalities,resolvemaintenanceandrefurbishmentbacklogsanddevelopafinancingplan,alongsideinvestmentinhumancapital

Outcome 6-Ring-fencetheelectricity-distributionbusinessofthe 12 largest municipalities and resolvetheirmaintenanceandrefurbishment;

Outcome 6-SIPNO.6IntegratedMunicipalInfrastructureProject;SIPNO.8GreenEnergyinSupportoftheSouthAfricanEconomy;SIPNO.9ElectricityTransmissionandDistribution;SIP10:ElectricityTransmissionandDistribution;SIPNO.17RegionalintegrationforAfricancooperation,overthenextfiveyears,SouthAfrica;andStrategicIntegratedProjects(SIP)17NumberofIntegratedEnergyCentres(IECs)

Number of Integrated Energy Centres(IECs)

Sub-programme 2.4: Electricity, Energy Efficiency and Environmental Policy:• Normsandstandardsformunicipal

electricity infrastructure asset management

Sub-programme 4.4: Electricity Infrastructure/Industry Transformation Programme Performance Indicator:• Numberofreportsoninterventions

orsupportprovidedtomunicipalitiesstrugglingwithelectricityinfrastructure rollout

Sub-programme 4.3: Community Upliftment programmes and projects Programme Performance Indicators:• NumberofQuarterlyandAnnual

ReportsonprogressmadewiththedevelopmentofruralIeCs


Department Goals Department Objectives Linkages to the NDP ProposalsLinkages to the MTSF (2014 –

2019) (outcomes)Departmental Programme

3.Regulationandcompetition-Toensurethatthereisimprovedenergy regulation and competition

SO2.8Reviewpolicyandregulations to ensure security of supply

SO3.1AuditB-BBEEparticipation in the PetroleumRetailSector

SO3.2PromotetransformationoftheSouthAfricanPetroleum&LiquidFuels Industrythrough issuing licences

MoveEskom’ssystemoperator,planning,powerprocurement,powerpurchasingandpowercontractingfunctionstotheindependentsystemandmarketoperatorandacceleratedprocurementofindependentpowerproducers.(ISMO)

Outcome 6-AmendtheNationalEnergy Regulator Act and the Electricity Regulation Act – Legislativeamendments;

Outcome 6-Independentsystemoperatorinplace(6)

Sub-programme 2.4: Electricity, Energy Efficiency and Environmental Policy Programme Performance Indicators:• AmendNationalEnergyRegulator

Act,2004(ActNo.40of2004)• AmendElectricityRegulatorAct,2006

(ActNo.4of2006)

4. Universalaccessandtransformation-Toensure that there is an efficient and diverseenergymixforuniversalaccesswithina transformed energy sector

SO2.9Reviewthebulkelectrical infrastructure requiredforuniversalaccessto electricity

SO2.10Establishmechanisms to prefund capital and create a smooth pricepathoverthelongterm

SO4.1Accessto electricity by households

Revisenationalelectrificationplanandensure90percentcoverage

“… more than 90 percent of the population should enjoy access to grid-connected or off-grid electricity within 20 years” (Energy Vision, published 2012) and NDP Energy Proposals “Revise national electrification plan and ensure 90 percent access to grid-connected or off-grid electricity”

Outcome 6 -ReviewedElectricityPricing Policy issued

Outcome 7-Numberofruralhouseholdslinkedtogridormicroscheme(electricity);Number of rural households connectedwithoff-gridtechnology

Outcome 9-1.25millionadditionalhouseholds connected to the grid by 2019;105000additionalhouseholdsconnectedonnon-gridby2019

Sub-programme 2.4: Electricity, Energy Efficiency and Environmental Policy Programme Performance Indicators: • ElectricityPricingPolicy

Sub-programme 4.1: Integrated National Electrification Programme Programme Performance Indicators:• NumberofQuarterlyReports

on additional households to be electrifiedwithgridelectrificationtowardthe2018/19targetof200000in the National Electrification Plan

• Numberofquarterlyreportsonadditional households electrified withnon-gridelectrificationtowardsthe 2018/19 target of 20 000 in the National Electrification Plan


Department Goals Department Objectives Linkages to the NDP ProposalsLinkages to the MTSF (2014 –

2019) (outcomes)Departmental Programme

5. Environmentalassets-Toensurethatenvironmentalassetsand natural resources are protected and continually enhanced by cleaner energy technologies

SO4.4Renewableenergy

SO6.2Coordinate &monitored implementationoftheEEDSMmeasures across all sectors

Movetolesscarbon-intensiveelectricityproductionthroughprocuringupto20000MWofrenewableenergy,increased hydro imports from the region and increased demand-sidemeasures,includingsolarwaterheating

Outcome 10-Percentageofnewbuildthatisrenewablepowergeneration(429or17800MW)by2030forrenewableenergydeveloped

Outcome 6-MeasuredemandsavingsinMWinlinewiththeNationalEnergyEfficiencyStrategyandActionPlan(6)

Sub-Programme 6.2: Renewable EnergyProgramme Performance Indicators:• Numberofprocuredbaselinesystems

inlinewithbudgetallocation;targetyouth trained under accredited programmes to install the systems at target municipalities

6. Climatechange-Toimplement policies that adapt to and mitigatetheeffectsofclimate change

SO5.3ImprovedSecurityofEnergySupply

SO6.1Coordinate &monitoredimplementation ofenergy-relatedclimate changeresponsemeasures &environmentalcompliance

Thoroughinvestigationoftheimplicationsofgreateruseofnuclearenergy,includingitspotentialcosts,safety,environmentalbenefits,localisationandemploymentopportunities,uraniumenrichment,fuelfabrication,andthedangersofweaponsproliferation

Reviewalternativegenerationoptions,includingCoal3andnuclear,toevaluatefinancingandconstructionrisksandsubmitrealisticoptionstoCabinet(includedinOutcome4)

Outcome 10-Percentageofnewbuildthatisrenewablepowergeneration(toincorporateoff-gridenergywithatargetof42(or17800MW)by2030forrenewableenergydeveloped

6%(or2600MW)by2030forimportofhydropowerdeveloped

Sub-programme 5.1 Nuclear Safety and Technology: Programme Performance Indicator:• Numberofquarterlymonitoring

reports on the localisation & industrialisation strategy that are implemented

Sub-programme 4.1: Integrated National Electrification ProgrammeProgramme Performance Indicators:• Numberofquarterlyreportson

allocation of funding and monitoring of the progress on the number of additionalhouseholdselectrifiedwithnon-gridelectrificationofhouseholdsprojectsperyearincomparisontotheelectrification plan


3.1. Overview of the 2018/19 Budget and Medium Term Expenditure Framework

PROGRAMMES

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome

Voted (Main appropriation)

Adjusted Appropriation

Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000

Administration 257168 277 768 282 762 239541 263561 282 638 299 108 314 794

Energy Policy and Planning 41 749 38095 39 878 46 668 46 668 53078 56232 60258

Petroleum and Petroleum Products Regulation 64548 68958 78 991 81 828 81 828 87 132 92 697 99305

Electrification and Energy Programme and

ProjectManagement 4 180 973 5820485 5678659 6 184 028 6 219 980 5435400 5845439 6 168 407

Nuclear Energy 845418 655028 872451 786875 790875 816586 870 269 912 140

Clean Energy 830257 281 783 560101 774510 742510 370 183 409 901 442 701

Total for Programmes 6 220 113 7 142 117 7 512 842 8 113 450 8 145 422 7 045 017 7 573 646 7 997 605

Expenditure Estimates

ECONOMIC CLASSIFICATION

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline


Current payments 473 607 509 308 681 997 557 923 572 647 612 823 656 376 706 128

Compensation of employees 264 266 296 009 321 466 318 247 333 247 360 517 384 278 409 249

Salariesandwages 234156 261 009 283 260 273 673 287 208 309 988 330 410 351866

Socialcontributions 30 110 35000 38 206 44574 46 039 50529 53868 57383

Goods and services 209 341 213 299 360 531 239 676 239 400 252 306 272 098 296 879

Administrativefees 4453 5663 4650 3635 3 771 3 764 3975 4 192

Advertising 8652 13785 8 362 7 299 8525 6 774 7 298 7645

Minor assets 367 1 036 833 3 367 2 177 451 486 524



BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline


Audit costs: External 3578 4 233 3805 4 472 4 472 3 909 4 129 4356

Bursaries:Employees 761 610 555 785 785 821 867 915

Catering:Departmentalactivities 1 032 1 961 2546 2 042 1 992 1 630 1 721 1 819

Communication(G&S) 7 846 7 613 8517 5836 6 307 6155 6 499 6859

Computerservices 10 264 9 839 10658 6115 6523 7795 8 221 8658

Consultants:Businessandadvisoryservices 43 780 25828 189 849 97 719 83 681 93 799 106 366 122 022

Legalservices(G&S) 846 924 2451 458 458 2 190 517 545

Contractors 1 743 2560 2 206 1451 1 871 1547 1 634 1 723

Agencyandsupport/outsourcedservices 270 3305 1 096 9 909 8 763 10 308 10 886 11 484

Entertainment 22 1 8 197 173 184 195 206

Fleetservices(includinggovernmentmotortransport)

1 130 1586 1275 689 706 571 605 639

Consumable supplies 1582 1 042 1 032 2563 2357 2125 2 246 2 371

Consumables:Stationery,printingandofficesupplies

4 119 4653 4 722 3520 4 260 3 939 4 160 4385

Operating leases 27145 34 063 38955 34 080 35348 45097 47538 50152

Rental and hiring 15 93 - 395 349 - - -

Property payments 3 849 4 082 8851 779 2 718 4 934 5210 5497

Transportprovided:Departmentalactivity 1 238 294 - - - - -

Travelandsubsistence 56344 65249 52019 37 004 42158 39 226 41485 43 779

Traininganddevelopment 5665 4 664 4 041 4 049 3 973 4 086 4315 4552

Operating payments 6 171 4 898 3 988 5239 6 721 3 844 4059 4 282

Expenditure Estimates (continued)



BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline


Venuesandfacilities 19 706 15373 9 818 8 073 11 312 9157 9 686 10 274

Transfers and subsidies 5 742 710 6 628 380 6 816 117 7 551 241 7 568 489 6 427 655 6 912 485 7 286 429

Municipalities 1241563 2158239 2 131 871 2 290 284 2 290 284 2119501 2354993 2484518

Departmental agencies and accounts 197 194 87 140 72546 129 394 129 394 133 391 161 916 164 313

Foreigngovernments&international

organisations21275 29565 25003 17 907 17 907 27915 29 478 31 099

Public corporations 3708715 4 193 601 4125672 4510325 4510325 3944745 4152677 4 381 339

Privateenterprises 570000 156179 458047 600 919 615891 201 649 212 941 224653

Households 3 963 3656 2 978 2 412 4 688 454 480 507

Payments for capital assets 3 763 4 424 14 700 4 286 4 286 4 539 4 785 5 048

Transportequipment - - - - 1 300 - - -

Othermachineryandequipment 3 763 4 424 14 700 4 286 2 986 4539 4785 5048

Payments for financial assets 33 5 28 - - - - -

Total economic classification 6 220 113 7 142 117 7 512 842 8 113 450 8 145 422 7 045 017 7 573 646 7 997 605

DIVISION OF REVENUE

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline


National 4978550 4 983 878 5380971 5823166 5855138 4925516 5218653 5513087

Local 1241563 2158239 2 131 871 2 290 284 2 290 284 2119501 2354993 2484518

TOTAL 6 220 113 7 142 117 7 512 842 8 113 450 8 145 422 7 045 017 7 573 646 7 997 605

Expenditure Estimates (continued)


3.2 Relating Expenditure Trends to Strategic Outcome-Oriented Goals

Expenditure analysis

The NDP envisages that, by 2030, South Africa will have an

adequate supply of electricity and liquid fuels to maintain

economic activity and prevent any economic disruption. This

isgivenexpressioninoutcome6(anefficient,competitiveand

responsive economic infrastructure network) and outcome 9

(responsive,accountable,effectiveandefficientdevelopmental

local government) of government’s 2014-2019 medium-term

strategic framework, which are closely alignedwith thework

of theDepartment.Over themedium term, theDepartment

intends to focus on securing energy resources and energy

supply, increasing household access to electricity, enhancing

energyefficiency,diversifying theenergygenerationmix,and

improvingthequalityandsecurityofpetroleumfuels.

TheDepartment’stotalspendingisexpectedtodecreaseatan

averageannualrateof0.6percentovertheMTEFperiod,from

R8.1 billion in 2017/18 to R8billion in 2020/21.This decrease

is largely due to Cabinet approved reductions of R1.4 billion

in2018/19,R2.4billionin2019/20andR2.5billionin2020/21.

These reductions aremostly to the Electrification and Energy

Programme and the Project Management Programme, the

Department’s largest programmes, which account for 76.9

percent(R17.4billion)oftotalprojectedexpenditureoverthe

mediumterm.

Spendingoncompensationofemployeesisexpectedtoincrease

atanaverageannualrateof7.1percentovertheMTEFperiod,

fromR333.2millionin2017/18toR409.2millionin2020/21,in

linewithadjustmentsrelatedtocostofliving.TheDepartment’s

staff complement is expected to decrease by 28 over the

mediumterm,from595in2017/18to567in2020/21.However,

the Department expects to fill some critical posts at the senior

managementlevelintheEnergyPolicyandPlanning,Petroleum

and Petroleum Products Regulation and Electrification and

EnergyProgrammeandtheProjectManagementProgramme.

The Department’s total spending on goods and services is

expectedtoincreaseatanaverageannualrateof7.4percent

overtheMTEFperiod,fromR239.4millionin2017/18toR296.9

millionin2020/21.Expenditureinthisregardmainlycomprises

servicingoperatingleases,astheDepartment’sregionaloffices

arerelocated,aswellascostsrelatedtotheinspectionof4500

petroleum retail sites and the establishment of 3 integrated

energycentresoverthemediumterm.

Extending access to electricity and enhancing energy efficiency

DespitereductionstotheDepartment’sbudget, it isexpectedthat an additional 625 000 households will be connected totheelectricitygridandan9additional sub-stationsbuiltovertheMTEFperiod.Afurther20000householdsperyearwillbeprovidedwith non-grid (mainly solar) electrification.Transfersto municipalities for the Integrated National Electrification Programme are expected to increase at an average annualrateof2.5percentoverthemediumterm,fromR2.1billionin2017/18toR2.2billionin2020/21.

TransferstoEskomfortheindirectcomponentoftheIntegratedNational Electrification Programme are expected to decrease at anaverageannualrateof2percentovertheMTEFperiod,fromR3.8billionin2017/18toR3.6billionin2020/21,asaresultofCabinet approved reductionsofR2.2billionover themediumterm.

As a result of reductions effected on allocations for the SolarWater Heater Programme, expenditure in the Clean EnergyProgrammeisexpectedtodecreaseatanaverageannualrateof15.9per centover theMTEFperiod, fromR743.2million in

2017/18toR442.7millionin2020/21.Despitethisdecrease,57000solarwaterheatersareexpectedtobemanufacturedoverthemediumterm.

Torealise1.5terawatthoursofenergysavingsoverthemedium

term, allocations to the energy efficiency and demand side

managementgrant increasedatanaverageannual rateof5.6

per cent, from R203.2million in 2017/18 to R239.6million in

2020/21.Thiswillenablemunicipalitiestoundertakeinitiatives

such as replacing street and traffic signal lights with energy

efficient technology, and to retrofit and replace municipal

infrastructurethatisenergyinefficient.

Creating an enabling policy environment for a sustainable and diversified energy mix

Although spending in the Energy Policy and Planning

programme accounts for 0.7 per cent of the Department’s

totalestimatedspendingovertheMTEFperiod,itisthefastest

growing programme, increasing at an average annual rate of

8.4percent, fromR47.3million in2017/18 toR60.3million in

2020/21.Thisincreaseinexpenditureisexpectedtoenablethe

Department to focus on finalising and implementing legislation

and policy frameworks over themedium term, including the

draftingoftheNationalEnergyRegulatorAmendmentBill,the

ElectricityRegulationSecondAmendmentBillandthebiofuels

strategy. In addition, the Gas Amendment Bill is expected to

be processed and published for public comment in 2018/19.

Thislegislationwillassistindefiningthepolicyandregulatory

frameworktosupporttherolloutofgasinfrastructureandthe

developmentofagasindustry.

Nuclear energy

To subsidise the operational costs of the South African

Nuclear Energy Corporation and for the decommissioning

and decontamination of past nuclear assets, transfers to


entities form the bulk of expenditure in the Nuclear Energy

programme. Spending in this programme is expected to

increase at an average annual rate of 4.9 per cent over the

MTEF period, from R790million in 2017/18 to R912.1million

in2020/21.TheincreaseintransferstoDepartmentalagencies

and accounts, from R68.6million in 2017/18 to R84.9million

in 2020/21, is mainly driven by increased allocations to the

NationalRadioactiveWasteDisposalInstitutetooperationalise

thepublicentity.TheNationalRadioactiveWasteDisposalFund

Bill,whichisexpectedtobeapprovedin2018/19,providesfora

sustainablefundingmechanismfortheInstitute.


Part BProgramme and Sub- Programmes Plans


1.1 Programme Purpose

Toprovidestrategicleadership,managementandsupportservicestotheDepartment.

1.2 Budget Sub-Programmes• Ministry• DepartmentManagement• FinanceAdministration• AuditServices• CorporateServices• OfficeAccommodation

Cross cutting Programme 1: Strategic Objective and Annual Targets for 2018/19

Strategic Objectives

5 Year Strategic Plan Target

Audited/Actual PerformanceEstimated

PerformanceMedium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO1.1SoundCorporateGovernancePractices

SO1.2SoundFinancial ResourceManagement

AverageMPATscore of at least3.75achievedfor moderatedassessment of2018/19

AverageMPATscore of at least3.1achievedfor moderatedassessment of2013/14,withatleastthefollowingsub-scores:- KPA1–3.3- KPA2–3.2- KPA3–3.1- KPA4–2.9

AverageMPATscore of at least3.5achievedfor moderatedassessment of2014/15,withatleastthefollowingsub-scores:- KPA1–3.5- KPA2–3.5- KPA3–3.5-KPA4–3.5



MPATaveragescore of at least3.0achievedduringmoderatedassessment of2017/18 by DPME

MPATaveragescore of at least3.75achievedduring moderatedassessment of2018/19 by DPME


Programme 1: Administration


Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO1.3SoundCorporate ResourceManagement

SOE’sStrategicPlans,CorporatePlans&ShareholderCompacts submitted to the Minister for approval

N/A N/A N/A SOE’sStrategicPlans,CorporatePlans&ShareholderCompacts submitted to the Minister for approvalby31March annually

SOE’sStrategicPlans,CorporatePlans&ShareholderCompacts submitted to the Minister for approvalby31March annually


ApprovedSOE’sStrategicPlans,Corporate Plans &ShareholderCompacts aligned toDOEandoverallgovernmentpriorities

Unqualifiedauditoutcome for the Department

Unqualifiedauditreport by the AGachievedfor2013/14







Strategic Objective

PerformanceIndicators



2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21


SO1.2SoundFinancial ResourceManagement

FinalMPATreportonscoresof3.0compiled by DPME

AverageMPATscore of at least3.1achievedfor moderatedassessment of2013/14,withatleastthefollowingsub-scores:- KPA1–3.3- KPA2–3.2- KPA3–3.1- KPA4–2.9

AverageMPATscore of at least3.5achievedfor moderatedassessment of2014/15,withatleastthefollowingsub-scores:- KPA1–3.5- KPA2–3.5- KPA3–3.5-KPA4–3.5






Cross-cutting Programme 1: Performance Indicators and Annual Targets for 2018/19 MTEF

Cross-cutting Programme 1: Strategic Objective and Annual Targets for 2018/19 (continued)


Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO1.3SoundCorporate ResourceManagement

SOE’sStrategicPlans,CorporatePlans&ShareholderCompactsapproved

N/A N/A N/A SOE’sStrategicPlans,CorporatePlans&ShareholderCompacts submitted to the Minister for approvalby31March 2018




Results of the Annual Audit








Cross-cutting Programme 1: Quarterly Target for 2018/19

Strategic Objective

Performance Indicators

Reporting Period

Annual Target 2018/19

Quarterly Targets

Q1 Q2 Q3 Q4


SO1.2SoundFinancialResource Management

SO1.3CorporateResource Management

FinalMPATreport on scores of3.0compiledby DPME

Annually (endofthe3rdquarter)

MPATaveragescore of at least3.0achievedduring moderatedassessment of2017/18

N/A N/A MPATaveragescore of at least3.0achievedduring moderatedassessment of2017/18 by DPME

N/A

SOE’sStrategicPlans,Corporate Plans &ShareholderCompacts approved

Annually SOE’sStrategicPlans,Corporate Plans & ShareholderCompactssubmitted to the Ministerforapprovalby 31 March 2019

N/A Schedule3ASOE’s1stdraftAPPsreviewedandsubmittedtotheNTand DPME by 31 August 2018

2.AnnualReportsofSOE’stabledinParliamentby30September2018

chedule3ASOE’s2nddraft APP’s submitted toDPME&NTby30November2018

1.Finaldraftofschedule3ASOE’sAPPssubmittedtotheMinisterforapprovalby28February2015

2. CorporatePlansandShareholdercompactsofSchedule2SOE’ssubmittedtotheMinisterforapprovalby31March2018

Results of the Annual Audit

Annually (endofthe3rdquarter)

UnqualifiedauditreportbytheAGachievedfor2017/18

N/A UnqualifiedauditreportbytheAGachievedfor2017/18

N/A N/A

Cross-cutting Programme 1: Performance Indicators and Annual Targets for 2018/19 MTEF (continued)


Sub-Programme 1.1: Ministry

This sub-programme provides overall management and

administration of the Department and ensures that SOE’s

that report to theDepartmentcomplywithgoodgovernance

principles,normsandstandards,andthattheircorporateplans

arealignedwiththestrategicobjectivesoftheDepartment.

Thissub-programmeisalsogearedtosupporthigh–levelpolicy

prioritisationoftheDepartmentthroughthefollowing:

• ConductpoliticaloversightandaccountabilitytoParliament.

• Providingguidanceanddirectionforthedevelopment

of strategic plans and annual performance plans for the

Departmentanditspublicentities.

Strategic Objective5 Year Strategic

Plan TargetAudited/Actual Performance

Estimated Performance

Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO1.5ExecutivesupportservicesprovidedtoMinistry,DGandDDGs

20QuarterlyProgress Reportswhichdetailtheimplementationof the 2014–2019MTSFOutcomes6,7,9and10submitted toClusters

N/A 4QuarterlyReportswhichdetailtheimplementation of the 2014–2019 MTSFOutcomes4,6,7,8,9 and 10 signed by the the Department Minister

4QuarterlyProgressReportswhichdetailthe implementation of the 2014–2019 MTSFOutcomes4,6,7,8,9 and 10 signed by the the Department Minister





SO1.6Executiveand administration supportservicesforMinistry,DG,DDGs

100IzimbizoPublicParticipation Programmes(PPPs)conducted

20IzimbizoPPPsconducted




20 Community engagements conducted



• Supportingandensuringgoodcorporategovernance

practicesbyentitiesreportingtotheDepartment.

• Coordinatingengagementprogrammeswithentities

throughtheestablishedmanagementstructures.

• Monitoringandevaluatingtheperformanceofthe

Departmentanditspublicentities.

• Submitting/tablingstrategicplans,annualperformance

plans and annual reports for the Department and its public

entitiesinParliament.

• EnsuringeffectivecommunicationbetweentheDepartment

anditskeystakeholders,andcreatingawarenessof

theDepartment’skeyobjectivesandactivitiesthrough

communityengagement.

Sub-Programme 1.2: Departmental Management

This sub-programme provides executive support to the

Director-General(DG)andDeputyDirectors-General(DDGs)in

carrying out the the Department’s mandate and contributes to

criticalgovernmentprogrammes.

Sub-Programme 1.2: Strategic Objective and Annual Targets for 2018/19


Sub-Programme 1.2: Performance Indicators and Annual Targets for 2018/19 MTEF

Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21


Number of quarterlyProgress Reportswhichdetailtheimplementationof the 2014–2019MTSFOutcomes,6,7,9and10submitted toClusters

N/A 4QuarterlyProgressReportswhichdetail the implementation of the 2014–2019 MTSFOutcomes4,6,7,8,9&10signedby the DepartmentMinister

QuarterlyProgressReportswhichdetail the implementation of the 2014–2019 MTSFOutcomes4,6,7,8,9 & 10 signed by the DepartmentMinister





Number of Community engagements conducted








Sub-Programme 1.2: Quarterly Targets for 2018/19

Strategic Objective


Reporting PeriodAnnual Target

2018/19Quarterly Targets

Q1 Q2 Q3 Q4


NumberofQuarterlyProgress Reports whichdetailtheimplementation of the2014–2019MTSFOutcomes,6,7,9and10 submitted toCluster

Quarterly 4QuarterlyProgressReportswhichdetailthe implementation of the 2014–2019MTSFOutcomes,6,7,9and 10 submitted toCluster

1QuarterlyProgressReportwhichdetailsthe implementation of the2014–2019MTSFOutcomes6,7,9and10 submitted to the Clusters(Q4)2017/18

Q21QuarterlyProgressReportwhichdetailsthe implementation of the2014–2019MTSFOutcomes6,7,9and10 submitted to the Clusters(Q1)2018/19



Number of Community engagements conducte



5Communityengagements conducted





Sub-Programme 1.3: Governance and Compliance

Thissub-programmeprovidesstrategicdirectionandguidanceonstrategicplanning,riskmanagement,reportmonitoringandevaluation,SOEoversight,aswellasinternationalco-ordination.

Sub-Programme 1.3: Strategic Objective Annual Targets for 2018/19

Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO1.4Strategicsupportof energy security (re-establishnewpartnership/bi-lateralagreements)

5010Bi-lateral(Botswana,DRC,Zimbabwe,Zambia/Ghana/Mozambique,Nigeria/Namibia/ Angola/ Botswana/Tanzania)intergovernmentalengagements/visitshosted in the Energy sector,withAfricanstates(Inboundandoutbound)

N/A 10Bilateralinter-governmentalengagementsorvisitshostedin the energysector,withAfricanstates(inboundandoutbound)

10 Foreign participants (advancementoftheAfrican Agenda in theenergysector)topromote the use of cleaner safer energy carriers,reducegreenhouse gas emissions,knowledgetransfer and enhance the energy sector as agreedwithforeignpartners

10Bi-lateral(Botswana,DRC,Zimbabwe,Zambia/Ghana/Mozambique,Nigeria/Namibia/ Angola/ Botswana/Tanzania)intergovernmentalengagements/visitshosted in the Energy sector,withAfricanstates(Inboundandoutbound)

1SADCEnergyMinisters Meeting by30June2018facilitated,coordinated and hosted

N/A N/A

60 12 multilateral engagements and visitshostedintheEnergysector,targetingEU,G20,IEF,IRENA,BRICS,IORA,FOCAC,SE4ALL,WEF,CEM,UNFCCC,APPA,IPEEC,IAEA,SADC,IEA,IGU,GenIV,AEEP,PowerAfrica,AfricaEnergyForum,IRENA

N/A N/A N/A 12 multilateral engagementsandvisitshosted in the Energy sector,targetingEU,G20,IEF,IRENA,BRICS,IORA,FOCAC,SE4ALL,WEF,CEM,UNFCCC,APPA,IPEEC,IAEA,SADC,IEA,IGU,GenIV,AEEP,PowerAfrica,AfricaEnergyForum,IRENA

1BRICSEnergyMinisters Meeting by 30 August 2018 facilitated ,coordinatedandhosted

N/A N/A



Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO1.4Strategicsupportof energy security (Re-establishnewpartnerships/Bi-lateralagreements)

Number of foreign participants (Advancementof the African agenda in the energysector)topromote the use of cleaner safer energycarriers,reduce greenhouse gasemissions,knowledgetransferand enhanced energy sector as agreedwithforeignpartners

N/A 10Bilateralinter-governmentalengagementsorvisitshostedin the energysector,withAfricanstates(inboundandoutbound)

10 Foreign participants (advancementof the African Agenda in the energysector)topromote the use of cleaner safer energycarriers,reduce greenhouse gasemissions,knowledgetransferand enhance the energy sector as agreedwithforeignpartners

10Bi-lateral(Botswana,DRC,Zimbabwe,Zambia/Ghana/Mozambique,Nigeria/ Namibia/ Angola/Botswana/Tanzania)intergovernmentalengagements/visitshostedintheEnergysector,withAfricanstates(Inboundandoutbound)

1SADCEnergyMinisters Meeting by30June2018facilitated,coordinated and hosted

N/A N/A

Number of multilateral engagements hosted in the Energysector,inAfrica & globally (Inboundandoutbound)aimedatEU,G20,IEF,IRENA,BRICS,IORA,FOCAC,SE4ALL,WEF,CEM,UNFCCC,APPA,IPEEC,IAEA,SADC,IEA,IGU,GenIV,AEEP,PowerAfrica,AfricaEnergyForum,IRENA

N/A N/A N/A 12 multilateral engagements and visitshostedintheEnergysector,targetingEU,G20,IEF,IRENA,BRICS,IORA,FOCAC,SE4ALL,WEF,CEM,UNFCCC,APPA,IPEEC,IAEA,SADC,IEA,IGU,GenIV,AEEP,PowerAfrica,Africa Energy Forum,IRENA

1BRICSEnergyMinisters Meeting by 30 August 2018facilitated,coordinated and hosted

N/A N/A



Strategic Objective




Q1 Q2 Q3 Q4

SO1.4Strategicsupport of energy security (re-establishnewpartnerships/ bilateral agreements)

Number of foreign participants (AdvancementoftheAfrican agenda in theenergysector)topromote the use of cleaner safer energy carriers,reducegreenhouse gas emissions,knowledgetransfer and enhanced energy sector as agreed withforeignpartners

Quarterly 1SADCEnergyMinisters Meeting facilitated,coordinatedandhostedby30June2018

SADCEnergyMinistersMeeting held by 30 June2018

N/A N/A N/A

Number of multilateral engagements hosted in the Energy sector,inAfricaandglobally(inboundandoutbound)aimedatEU,G20,IEF,IRENA,BRICS,IORA,FOCAC,SE4ALL,WEF,CEM,UNFCCC,APPA,IPEEC,IAEA,SADC,IEA,IGU,GenIV,AEEP,PowerAfrica,AfricaEnergyForum,IRENA

Quarterly 1BRICSEnergyMinisters Meeting facilitated,coordinatedand hosted by 30 August 2018

N/A HosttheBRICSEnergyMinisters Meeting by 30 August 2018

N/A N/A


Sub-Programme 1.4: Finance Administration

Thissub-programmeprovidesfinancialmanagement,accountingandsupplychainmanagement(SCM)servicestothetheDepartment.

Sub-Programme 1.4: Finance Administration Strategic Objective Annual Targets for 2018/19

Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO1.2Soundfinancialresourcemanagement

100%approvedinvoicesfromserviceproviderspaidwithin30daysof receipt

100%approvedinvoicespaidwithin30 days of receipt




100%approvedInvoicesfromserviceproviderspaidwithin30daysof receipt



Sub-Programme 1.4: Finance Administration Performance Indicators and Annual Targets for 2018/19 MTEF

Links to strategic Objectives in above table




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO1.2Soundfinancial resourcemanagement

Percentage of approvedinvoicesfromserviceproviderspaidwithin30daysofreceipt

100%approvedinvoicespaidwithin30 days ofreceipt







Sub-Programme 1.4: Finance Administration Quarterly Targets for 2018/19

Strategic Objective




Q1 Q2 Q3 Q4

SO1.2Soundfinancial resource management

Percentage of approvedinvoicesfromserviceproviderspaidwithin30daysofreceipt

Monthly 100%approvedinvoicesfromserviceproviderspaidwithin30 days of receipt

100%approvedinvoicesfromserviceproviderspaidwithin30 days of receipt





Sub-Programme 1.5: Audit Services

Thissub-programmeprovidesanauditandsupportservicetothetheDepartment.Nostrategicobjectives,performanceindicatorsortargetsweresetforthissub-programme.

Sub-Programme 1.6: Corporate ServicesThissub-programmeprovidescorporatesupporttothetheDepartmentandensuresgoodcorporategovernanceandcompliancebythetheDepartmentandSOE’s.


Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO1.3Soundcorporate resource management

20QuarterlyReports–Vacancyrate not exceeding threshold of 10%

Vacancyratebelow10% maintained

Vacancyratebelow10%maintained

Vacancyratebelow10%maintained

4QuarterlyReports–Vacancyratenot exceeding threshold of 10%





Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21


Number of QuarterlyReportsonvacancyratenot exceeding threshold of 10%









Strategic Objective


Reporting Period

Annual Target 2018/19Quarterly Targets

Q1 Q2 Q3 Q4


NumberofQuarterlyReportsonvacancyratenotexceedingthreshold of 10%

Quarterly 4QuarterlyReports–Vacancyratenot exceeding threshold of 10%

1QuarterlyProgressReportonvacancyrate





Sub-Programme 1.7: Office Accommodation

Thissub-programmeprovidesofficeaccommodationandrelatedsupport tothetheDepartment.Nostrategicobjectives,performance indicatorsor targetswereset for thissub-programme.Seethe

Departmental2018/19OperationalPlan.

Resource Consideration

Programme 1: Administration (Sub-Programmes)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline


Ministry 41 767 42 298 39 314 25250 39 294 33 272 35359 37 326

Departmental Management 45787 52619 72 710 58100 63576 73165 77825 82 080

Finance Administration 29 390 33 294 34695 36051 36051 39 338 41 809 44 138

AuditServices 6754 6 698 6 934 6 076 6 076 8454 8 982 9 482

CorporateServices 109053 110759 98508 80753 82753 79 232 83 286 87 069

Office Accommodation 24 417 32 100 30 601 33 311 35811 49 177 51847 54699

Total for Programmes 257 168 277 768 282 762 239 541 263 561 282 638 299 108 314 794

Programme 1: Administration (Economic Classification)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline


Current payments 248 394 268 555 272 282 231 796 253 640 276 537 292 673 308 005

Compensation of employees 131 521 138 750 149 826 138 899 152 919 164 202 174 155 182 972

Salariesandwages 116 920 122581 132 332 119454 131 892 140 838 149 280 156699

Socialcontributions 14 601 16 169 17 494 19445 21 027 23 364 24875 26 273


Administrativefees 2 111 2956 1 997 1 768 1 762 1 821 1 923 2 027

Advertising 6 062 6 212 3455 3 087 3 037 3 219 3 400 3588

Minor assets 360 1 006 828 1 941 869 451 486 524


Programme 1: Administration (Economic Classification)

(continued)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Audit costs: External 3578 4 233 3805 3 740 3 740 3 909 4 129 4356

Bursaries:Employees 761 610 555 785 785 821 867 915

Catering:Departmentalactivities 392 288 231 564 579 511 539 570

Communication(G&S) 6352 5851 6 672 3475 4 097 3835 4050 4 273

Computerservices 10 204 9 807 10658 5690 6 380 7795 8 221 8658

Consultants:Businessandadvisoryservices 5103 4025 4 722 4215 4 301 5281 5573 5879

Legalservices(G&S) 647 824 2 261 458 458 490 517 545

Contractors 1 461 2514 1538 1 333 1 732 1 423 1503 1585

Agencyandsupport/outsourcedservices 270 2 201 -4 751 731 779 823 868

Entertainment 22 1 8 174 154 184 195 206

Fleetservices(includinggovernmentmotortransport) 951 1 277 991 489 506 514 544 574

Consumable supplies 1 219 853 685 1 819 1597 1 896 2 003 2 114

Consumables:Stationery,printingandofficesupplies 3542 4 370 3 828 2 324 3 179 2 697 2850 3 003

Operating leases 26 737 33165 38 093 34 080 35302 45097 47538 50152

Rental and hiring - 72 - 328 317 - - -

Property payments 3 849 4050 8 827 - 2 020 4 934 5210 5497

Transportprovided:Departmentalactivity 1 - - - - - - -

Travelandsubsistence 27 842 32 467 26 072 17 196 20584 17 323 18 269 19 277

Traininganddevelopment 5636 4 643 4 030 3925 3 849 4 086 4315 4552

Operating payments 2 212 3 277 1 818 2 424 2635 2564 2 708 2857

Venuesandfacilities 7561 5103 1 386 2 331 2 107 2705 2855 3 013

Transfers and subsidies 5 007 4 789 6 833 3 459 5 635 1 562 1 650 1 741 Departmental agencies and accounts 812 792 985 1 047 1 047 1 108 1 170 1 234

Foreigngovernmentsandinternationalorganisations 282 366 3 034 - - - - -

Households 3 913 3 631 2 814 2 412 4588 454 480 507

Payments for capital assets 3 763 4 424 3 634 4 286 4 286 4 539 4 785 5 048 Transportequipment - - - - 1 300 - - -

Othermachineryandequipment 3 763 4 424 3 634 4 286 2 986 4539 4785 5048

Payments for financial assets 4 - 13 - - - - - Total economic classification 257 168 277 768 282 762 239 541 263 561 282 638 299 108 314 794


Programme 1: Administration (Transfer Payments)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Beneficiary R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000EmployeeSocialBenefits 3 212 2 920 2 001 368 2 468 389 411 434

EmployeeEx-Gratiapayments 701 711 58 61 61 65 69 73

EnergyandWaterSectorEducationandTrainingAuthority

812 792 985 1 047 1 047 1 108 1 170 1 234

International Energy Forum 282 366 3 034 - - - - -

BursariesforNon-employees - - 755 1 983 2059 - - -

TOTAL 5 007 4 789 6 833 3 459 5 635 1 562 1 650 1 741

Risk Management

TheDoEfullyunderstandsitsstatutoryobligationsinrespectof

enterpriseriskmanagement.Tothatend,theDoEwillcontinue

to enhance the risk management culture as contemplated

inSection38(1) (a) (i)of thePublicFinanceManagementAct,

1999(ActNo.1of1999),asamended.TheDoEisguidedbythe

Risk Exposure for Programme 1

Strategic Objective Strategic Risk Risk Consequence Mitigation Strategy

SO1.2SoundFinancialResourceManagement Validinvoicesnotpaidwithin30days Adverseauditfindings

NegativeimpactofsocioeconomicgrowthinSMMEs

Underspending of the budget

Regularmonitoringofinvoiceregisterandfollowuponoutstandinginvoicesfromprojectmanagers for certification process

Expeditingprocessdoneregularandfollowupon long outstanding transactions

SO1.2SoundFinancialResourceManagement Non-compliancewithSCMprescriptsandprocedures

Adverseauditopinion

Incur irregular expenditures

Departmental reputational damage

Strictenforcementofprescripts

AlldeviationsfromSCMproceduresappliedcorrectlyanddulyapproved


Organisational structure of DOE not fully implemented

Inability of the department to perform its mandateeffectively

Approvaloftherevisedorganisationalstructureexpedited

PublicSectorRiskManagementFramework,2008,whichaimsto

support institutionsto improveandsustaintheirperformance

byenhancingsystemsofriskmanagement.

Internalauditwillplayapivotalroleinthecombinedassurance

framework by providing independent assurance over

governance,riskmanagementandsystemsofinternalcontrolas

wellasoverthecombinedassuranceframework.Contributorsin

thisrolepredominantlyincludeinternalaudit,riskmanagement,

qualityassurance,theexternalauditorandmanagement.


Programme 2:Energy Policy and Planning



To ensure evidence-based planning, policy setting and

investmentdecisionsintheenergysector, inordertoimprove

thesecurityofenergysupply,regulationandcompetition.

2.2 Budget Sub-Programmes• PolicyAnalysisandResearch• EnergyPlanning• HydrocarbonPolicy• Electricity,EnergyEfficiencyandEnvironmentalPolicy

Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO2.1Improvedenergy security

Finalised IEP Studyofthesocio-economic impact oftechnologies in theelectricity sectorcompleted

Studyontheexternality costs ofdifferentelectricitytechnologiescompleted

Studyonthemacroeconomicimpact of the IEPcompleted

Final IEP published

Cabinetapproveddraft IEP issued for final public consultation

2017/18TabletheCabinetMemo ontheIEP,takingintoaccount thepublic comments

Gasdemand/supplyanalysis including Gas-to-Power

GasImportStrategy(includingstrategiclocation of import terminals)

Gas-to-powerMaster Plan

GasInfrastructureMaster Plan (includingbulktransportation)

N/A N/A

RegionalGasMasterPlan

N/A N/A

Sub-Programme 2.1: Policy Analysis and Research

Thissub-programme:developskeyindicatorsandmonitorsthe

impact of energy sector policies, planning and interventions;

analyses all energy policies and their impact on access to energy

andsecurityofenergysupply;conductsresearchandanalyses

policies in relation to other countries; and conducts research

andanalysesnationalandinternationaltrendsordevelopments

thatimpactonthedemandandsupplyofenergy.Currently,this

sub-programmehasnofinancialandhumanresourcecapability

allocatedtoittoperformitsresponsibilities.

Sub-Programme 2.2: Energy Planning

This sub-programme: manages energy data and information;

developsandmaintainsanenergymodellingsystemtosimulate

energy supply and distribution; identifies energy supply and

distribution constraints and addresses them through the IEP;

manages the overall collection, collation, validation, integrity

andqualityofenergydata;andmanages thedevelopmentof

energy plans and strategic interventions for the generation,

refining, distribution and transmission of energy sources for

demandandsupplyoptimisation.


Programme 2: Energy Policy and Planning


Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21


Studyofthesocio-economic impact of technologies in theelectricity sector completed

Studyontheexternality costs of differentelectricitytechnologiescompleted

Studyonthemacroeconomicimpact of the IEP completed

Final IEP published

Cabinetapproveddraft IEP issued for final public consultation

TabletheCabinetMemo on the IEP,takingintoaccount the public comments

TabletheCabinetMemo on the IEP,takingintoaccount the public comments

Gasdemand/supplyanalysis including Gas-to-Power

GasImportStrategy(includingstrategiclocation of import terminals)

Gas-to-powerMaster Plan

GasInfrastructureMaster plan report

GasInfrastructureMaster Plan (includingbulktransportation)

N/A N/A

RegionalGasMasterPlan report

RegionalGasMasterPlan

N/A N/A




Strategic Objective Performance IndicatorsReporting

PeriodAnnual Target 2018/19

Quarterly Targets

Q1 Q2 Q3 Q4


Gasdemand/supplyanalysisreport

Quarterly Gasdemand/supplyanalysisincludingGas-to-Power

Collate gas supply data Collate gas consumption data

Developareportongassupply(includingGas-to-Power)Developareportongas consumption (includingGas-to-Power)

DraftGasInfrastructure baseline report for consultation

GasInfrastructureMaster Plan

GasInfrastructureMasterplanreport

Quarterly GasInfrastructureMasterPlan(includingbulktransportation)

Collate input assumption


DraftGasInfrastructure baseline report for consultation

GasInfrastructureMaster Plan

RegionalGasMasterPlanreport Quarterly RegionalGasMasterPlan Collate input assumption


Draft Regional GasInfrastructurebaseline report for consultation

RegionalGasInfrastructure Master Plan


Sub-Programme 2.3: Hydrocarbon Policy

Thissub-programmeensuresasecureenergysupply,well-manageddemand,enhancedaccesstohydrocarbonsandatransformedenergysector.Italsoensuresthatenergyregulationandcompetitionare

improvedthroughthedevelopment,promulgationandmaintenanceofastatutoryframeworkforpetroleum,petroleumproducts,petroleuminfrastructure,coalandgas.





2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21


GasAmendmentBill

DraftGasAmendmentBillsubmittedtoofficeofStateLawAdvisorforfinalpre-certification

SubmissionofdraftGasAmendmentBillforMinisterialapprovalforsubmission to Cabinet


SubmitCabinetMemoonGasAmendment Billtounlockinfrastructure development(gaspipelines,storage,regasification)

Regulations to support implementation of GasAmendmentActdeveloped

DevelopRegulations to support implementation of GasAmendmentAct

N/A

SO2.2Improvedliquidfuelsenergysecurity

Incorporate the 20-YearLiquidFuels Infrastructure Roadmap(20YRLFIR)intotheIEP to determine thenewrefinerycapacity

Draft20-YearLiquidFuels Master Plan (20YRLFMP)submitted to Cabinetforapproval

Publish 20YLFIRM for external consultation

Incorporate20YLFIRM into theIEP

SubmitCabinetMemowithadecision on the needforanewoilrefinery

Proposal on newoilrefineryimplementation frameworkdeveloped

Implementation of the Cabinet decision relating to aNewOilrefinery


SubmitCabinetMemowitharecommendation on Clean Fuels 2

Proposal on Clean Fuels 2 implementation frameworkdeveloped

Developrefineryupgrade implementation plan for Clean Fuels 2


Introduce biofuelsintotheliquidfuelsindustry throughmandatory blending

SouthAfricanBiofuelsRegulatoryFrameworkfinalised

BiofuelsRegulatoryFrameworkimplemented

SubmissionofdraftBiofuelsRegulatoryFrameworkforMinisterialapproval

ResubmitBiofuelsCabinetMemo,takingintoconsideration comments about the extent of fiscal incentives

PilotBiofuelsProgramme implemented in linewithCabinetapproval





Strategic ObjectivePerformance

IndicatorsAudited/Actual Performance


Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21


FinalizedGasRegulations to support implementation of GasAmendmentAct

DraftGasAmendmentBillsubmittedtoofficeofStateLawAdvisorforfinalprecertification



SubmitCabinetMemoonGasAmendment Billtounlockinfrastructure development(gaspipelines,storage,regasification)

Developregulationsto support implementation of GasAmendmentAct

Developregulationsto support implementation of GasAmendmentAct

N/A

SO2.2ImprovedLiquidFuelsEnergySecurity

Finalizedproposalreportsonnewoil refinery implementation framework

Draft 20YRLFMPsubmitted toCabinet for approval

Publish 20YLFIRM forexternal consultation

Incorporate the20YLFIRM into theIEP

SubmitCabinetMemowithadecision on the needforanewoilrefinery

Proposal on a newoilrefineryimplementation frameworkdeveloped



Finalizedproposal report on Clean Fuels 2 implementation plan

SubmitCabinetMemowitharecommendation on Clean Fuels 2

Proposal on Clean Fuels 2 implementation frameworkdeveloped



FinalizedPilotBiofuelProgrammeimplementation plant

SouthAfricanBiofuelsRegulatoryFrameworkfinalised

BiofuelsRegulatoryFrameworkimplemented

SubmissionofdraftBiofuelsRegulatoryFrameworkforMinisterialapproval

ResubmitBiofuelsCabinetMemo,takingintoconsideration commentsabout the extent of fiscalincentives




Sub-Programme 2.3: Performance Indicators and Annual Targets for the 2018/19 MTEF




Performance IndicatorsReporting


Quarterly Targets

Q1 Q2 Q3 Q4

SO2.1ImprovedEnergySecurity

FinalizedGasRegulationstosupportimplementationofGasAmendment Act

Quarterly Regulations to support implementationofGasAmendmentActdeveloped

N/A DraftGasRegulations prepared

FinalDraftGasRegulations concluded forstakeholderconsultation

DevelopedfinalGasRegulationsconsolidated and

Finalizedproposalreportsonnewoilrefineryimplementationframework

Quarterly Proposalonnewoilrefineryimplementationframeworkdeveloped

N/A Draftnewoil refinery implementation frameworkprepared

Consult stakeholdersondraftnewoilrefineryframework

Consolidated and developedtheProposal report on newoilrefineryimplementation framework

FinalizedproposalreportonClean Fuels 2 implementation plan

Proposal on Clean Fuels 2 implementationframeworkdeveloped

N/A Draft Clean Fuels 2 implementation planforstakeholderconsultation

Draft Clean Fuels 2 implementation planincorporate stakeholderinputs

DevelopedProposal report on Clean Fuels 2 Implementation Framework

FinalizedPilotBiofuelProgramme implementation plant

Annual PilotBiofuelsProgrammeimplementedinlinewithCabinetapproval

N/A DevelopBiofuelsImplementation PlanforStakeholderconsultation

FinalizeBiofuelsImplementation Plan

Implement theBiofuelsProgramme


Sub-Programme 2.4: Electricity, Energy Efficiency and Environmental Policy

TThissub-programmeensuresasecureenergysupply,well-manageddemand,atransformedenergysector,andenergyregulationandcompetitionthatisimprovedthroughthedevelopment,promulgation

andmaintenanceofastatutoryframeworkforelectricityoverthemediumterm.ThisincludesreformingtheelectricitysupplyindustrytointroduceIPPsinsupportofelectricitysecurity.




Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO2.3Policyandregulations to ensure security of supply

Electricity Regulation AmendmentBillintroduced for consideration and support for itspromulgation,ifapprovedbyCabinet

N/A N/A Proposals regarding industryend-statedevelopedandtabled

Submitproposalsregardingthe‘end-state’electricitysector

Final proposals regardingthe‘end-state’electricitysectorapproved

Electricity Regulation AmendmentBillamendedtoreflectend state

Amended Electricity AmendmentBillpublished

Electricity Pricing PolicyReview

Implement the revisedEPP


TheNationalEnergy Regulator AmendmentBillintroduced for consideration and support its promulgation ifapprovedbyCabinet

Continuewithstakeholderengagement on the proposed amendments

Introduce National Energy RegulatorBillforconsideration and support by Cabinet and Parliament

Reintroduce the BillinCabinetafterconsideration of the policy input

Resubmit the Cabinet Memo regarding the National Energy RegulatorBill,takingintoaccountcomments by Cabinet

Proposal on the National Energy RegulatorBill,takingintoaccountcomments by Cabinet








Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO2.4Bulkelectrical infrastructure requiredforuniversalaccesstoelectricity

Reviewthebulkelectricalinfrastructure requiredforuniversalaccesstoelectricity

Prepare an implementation plan & implement it (submissionoftheimplementation plantocabinet)

Finalise ADAM Report update

TabletherevisedADAMReport,including the ring-fencingof the largest municipalities,toCabinet

Developnormsand standards for municipal electricity infrastructure asset management in concurrencewiththe regulator


UndertakeaphasedMunicipal Asset ManagementProgramme,focusingonrevenuemanagement,energyefficiency,orasset rehabilitation as applicable

Municipal Asset ManagementProgramme rolloutframeworkdeveloped

Municipal Asset Management Programme rolled out


Procurement of powerfromIngasupported by March 2017,March2018,March 2019

BilateralEnergyAgreement signedwiththegovernmentoftheDRC

Negotiate PPA andresolvetransmissionsolution associatedwithpowerdeliveryfrom Inga

RSAhascommittedtoprocure2500MWfrom the first phase oftheproject(NOTE:RSAwillnotbuildtheprojectbutisaBuyer,whereastheDRCtakesthefinancingand construction riskofdeliveringthepowerattheborderbetweenDRC/Zambia

Finalise the transmissionInfrastructure solutionrequiredtotransferpowerfrom the DRC overZambia/Zimbabwe/BotswanaintoRSA

Inter-governmentalagreementswithtransmission line transit countries concluded

Conclude negotiations on the PPA

Implementprojectagreements on Inga ProjectAgreement

Sub-Programme 2.4: Strategic Objectives and Annual Targets for 2018/19 (continued)


Sub-Programme 2.4: Performance Indicators and Annual Targets for 2018/19




Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO2.3PolicyandRegulations to EnsureSecurityofSupply

Proposals regardingthe‘end-state’oftheelectricitysector

N/A N/A TablingoftheEnd-state Proposal in Cabinet

Submitproposalsregardingthe‘end-state’electricitysector

Final proposals regardingthe‘end-state’electricitysectorapproved

Electricity Regulation AmendmentBillamendedtoreflectend state

Amended Electricity AmendmentBillpublished

Electricity Pricing PolicyReview





Introduce National Energy RegulatorBillforconsideration and support by Cabinet and Parliament

Reintroduce the BillinCabinetafterconsideration of the policy input

Resubmit the Cabinet Memo regarding the National Energy RegulatorBill,takingintoaccountcomments by Cabinet

Proposal on the National Energy RegulatorBill,takingintoaccountcomments by Cabinet



SO2.4BulkElectrical Infrastructure requiredfortheuniversalaccesstoelectricity

Report on Municipal Asset ManagementProgramme

Finalise Adam Report update

TabletherevisedADAMReport,including the ring-fencingof the largest municipalities,tocabinet



UndertakeaphasedMunicipal Asset ManagementProgramme,focusingonrevenuemanagement,energyefficiency,orasset rehabilitation as applicable

Municipal Asset ManagementProgramme rolloutframeworkdeveloped







Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Transmissioninfrastructure solution report

BilateralEnergyAgreement signed withgovernmentof DRC

Negotiate PPA and resolvetransmissionsolution associated withpowerdeliveryfrom Inga

RSAhascommittedtoprocure2500MWfromthefirstphaseoftheproject(NOTE:RSAwillnotbuildtheprojectbutisaBuyer,whereastheDRCtakesthefinancingand construction riskofdeliveringthepowerattheborderbetweenDRC/Zambia

Finalise the transmissionInfrastructure solutionrequiredtotransferpowerfrom the DRC overZambia/Zimbabwe/BotswanaintoRSA

Inter-governmentalagreementswithtransmission line transit countries concluded transmission line transit countries

Conclude negotiations on the PPA

Implementprojectagreements on Inga ProjectAgreement

Sub-Programme 2.4: Performance Indicators and Annual Targets for 2018/19 (continued)





Quarterly Targets

Q1 Q2 Q3 Q4

SO2.3Policyandregulations to ensure security of supply

Final Proposals regardingthe‘end-state’oftheelectricitysector

Bi-annual Final proposals regardingthe‘end-state’electricitysectorapproved

1st Draft Electricity IndustryEndStateReport prepared

2nd Draft Electricity IndustryEndStateReportfollowinginter-departmentalconsultations

3rd Draft Electricity Industry End StateReportfollowingIndustryConsultations

Final Draft Report on EndStatedecisionsin the Electricity Regulation AmendmentBill

Bi-annual ElectricityPricingPolicyReview Refined problem statement (framework)withstakeholderinputincorporated

N/A DraftReviewedElectricity Pricing PolicyIssued for consultation

Updated Electricity Pricing Policy submitted for Cabinetapproval

TheNationalEnergyRegulatorAmendmentBillintroducedforconsideration and support its promulgationifapprovedbyCabinet

Bi-annual Proposal on the National Energy RegulatorBill,takingintoaccountcomments by Cabinet

N/A Finalisestakeholderconsultations

SubmittoCabinet N/A

SO2.4Bulkelectricalinfrastructure requiredfortheuniversalaccesstoelectricity

Final Report on Municipal Asset ManagementProgramme

Bi-annual Municipal Asset ManagementProgrammerolloutframeworkdeveloped

Consultation on draft rollout frameworkwithindustrystakeholders

Frameworkthat includes stakeholderinputisincorporated

Inter-departmentalconsultation on draftframework

Frameworksubmitted for Cabinetapproval

SO2.5Securityofsupply through additionalpowergeneration capacity

FinalMoUonTransmissioninfrastructure solution

Quarterly Concludeinter-governmentalagreementswithtransmissionlinetransit countries

Finalizetransmissionsolution

Conclude MoU discussionswithtransit countries

N/A SigningofMoUbetweentransitcountries

Sub-Programme 2.4: Quarterly targets for 2018/19


Programme 2: Energy Policy and Planning (Sub-Programmes)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Policy Analysis and Research 475 1570 2056 2531 2531 2 623 2 791 2 970

Energy Planning 23 134 18 429 18 822 22 718 22 718 25574 27 014 28 993

HydrocarbonPolicy 11695 11 428 11 486 12 770 12 770 15224 16 133 17 314

Electricity,EnergyEfficiencyandEnvironmentalPolicy 6445 6 668 7514 8 649 8 649 9657 10 294 10 981



Programme 2: Energy Policy and Planning (Economic Classification)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Current payments 41 708 38 095 39 878 46 668 46 668 53 078 56 232 60 258 Compensation of employees 28 754 31 521 32 805 35 283 35 283 41 632 44 183 47 557 Salariesandwages 25523 27959 29 023 30 343 30 379 36 127 38 282 41 228

Socialcontributions 3 231 3562 3 782 4 940 4 904 5505 5901 6 329

Goods and services 12 954 6 574 7 073 11 385 11 385 11 446 12 049 12 701 Administrativefees 233 222 365 469 458 489 516 546

Advertising 111 147 138 227 354 236 249 263

Minor assets - - - 30 24 - - -


Communication(G&S) 408 265 330 514 489 537 567 597

Computerservices - - - 63 50 - - -

Consultants:Businessandadvisoryservices 8 144 342 1065 4 377 4 442 4 274 4 479 4 714

Contractors 15 - - 97 117 102 108 114

Fleetservices(includinggovernmentmotortransport) - - 4 - 9 - - -

Consumable supplies 19 39 59 29 43 30 32 34

Consumables:Stationery,printingandofficesupplies 8 24 14 304 254 317 334 353

Operating leases - - 7 - 17 - - -


Programme 2: Energy Policy and Planning (Economic Classification)

(continued)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Property payments - - - 41 24 - - -

Transportprovided:Departmentalactivity - - 180 - - - - -

Travelandsubsistence 2 941 4 062 3 234 3 661 3 761 3 816 4 030 4251

Traininganddevelopment - - - 124 124 - - -

Operating payments 833 742 707 236 455 514 542 572

Venuesandfacilities 212 693 833 1 040 640 1 088 1 147 1 210

Transfers and subsidies 41 - - - - - - - Households 41 - - - - - - -

Payments for capital assets - - - - - - - - Othermachineryandequipment - - - - - - - -

Payments for financial assets - - - - - - - - Total economic classification 41 749 38 095 39 878 46 668 46 668 53 078 56 232 60 258

Programme 2: Energy Policy and Planning (Transfer Payments)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Beneficiary R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000EmployeeSocialBenefits 41 - - - - - - -

Total 41 - - - - - - -

Risk Management


SO2.2Improvedliquidfuelsenergysecurity InadequateregulationoftheLiquidfuelsindustry(LFI)

Inability of the department to perform its mandateeffectively

ReviewthePetroleumPipelinesAct


Programme 3: Petroleum and Petroleum Product Regulations



Regulate the petroleum and petroleum products industry to

ensure the optimal and orderly functioning of the petroleum

industrytoachievegovernment’sdevelopmentalgoals.

3.2 Budget Sub-Programmes

• PetroleumCompliance,MonitoringandEnforcement

• PetroleumLicensingandFuelSupply

• FuelPricing

• RegionalPetroleumRegulationOffices

Sub-Programme 3.1: Petroleum, Compliance, Monitoring and Enforcement

This sub-programme monitors compliance with the Liquid Fuels

Charterandtechnical,legalandcommerciallicensingconditions.This

includes compliance with import and export conditions, as well as

theenforcementofthesubmissionofdatabytheindustry.Thesub-

programmealsoprocessesarbitrationrequestsaswellaspromotion

of access to information requests on behalf of the Controller of

PetroleumProducts.




Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO3.1Compliancemonitoring andenforcement in thepetroleum sector

7500Retailsitecomplianceinspections conducted

Enforcement notices issuedin85%ofcaseswherenon-compliancewasidentified during routine complianceinspections(baseline2000retail site complianceinspectionsconducted)

Enforcement notices issued in 90% of caseswherenon-compliancewasidentified during routine complianceinspections (baseline1500retail site compliance inspectionsconducted)



Atleast1500Retailsite complianceinspections conducted



6212 fuel samplestested

Enforcement notices issuedin95%ofcaseswherenon-compliancewasidentified during routine fuel sample testing(baseline1080 fuel samples tested)

Enforcement notices issuedin95%ofcaseswherenon-compliancewasidentified during routine fuel sample testing(baseline1892 fuel samples tested)

1 892 fuel samplestested


At least 1 080 fuel samplestested




Programme 3: Petroleum and Petroleum Product Regulations


Programme 3: Petroleum and Petroleum Product RegulationsStrategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21


Audit report of B-BBEEinthePetroleum Retail Sectorpublished

N/A N/A N/A N/A Publication of the Audit report ofB-BBEEinthePetroleum Retail Sector

Annual Report on petroleum retail transformation


Petroleum and LiquidFuelSectorCode published

N/A N/A N/A N/A Publication of Petroleum and LiquidFuelSectorCode

Annual Report on Compliance to the PetroleumandLiquidFuelSectorCode

Annual Report on Compliance to the PetroleumandLiquidFuelSectorCode





Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21


Number of retail sitecomplianceinspections conducted per year

Enforcement notices issued in 85%ofcaseswherenon-compliancewasidentifiedduring routine complianceinspections(baseline2000retailsite complianceinspectionsconducted)

Enforcement notices issued in 90%ofcaseswherenon-compliancewasidentifiedduring routine complianceinspections (baseline1500retailsite complianceinspectionsconducted)

1500retailsitecomplianceinspections conducted

1500retailsitecomplianceinspections conducted

Atleast1500retailsite complianceinspections conducted



Sub-Programme 3.1: Strategic Objective and Annual Targets for 2017/18 (continued)


Sub-Programme 3.1: Performance Indicators and Annual Targets for 2018/19 MTEF (continued)




Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Number of fuel samplestested

Enforcement notices issued in 95%ofcaseswherenon-compliancewasidentifiedduring routine fuel sample testing (baseline1080fuelsamplestested)

Enforcement notices issued in 95%ofcaseswherenon-compliancewasidentifiedduring routine fuel sample testing (baseline1892fuelsamplestested)







Baselineinformation in the Published Audit reportofB-BBEEinthe Petroleum Retail Sector

N/A N/A N/A N/A Publication of the Audit report ofB-BBEEonthePetroleum Retail Sector



Petroleum and LiquidFuelSectorCode

N/A N/A N/A N/A Publication of the Petroleum and LiquidFuelSectorCode

Annual Report on Compliancewiththe Petroleum and LiquidFuelSectorCode

Annual Report on Compliancewiththe Petroleum and LiquidFuelSectorCode




Quarterly Targets

Q1 Q2 Q3 Q4

SO3.1ComplianceMonitoring & Enforcement in the PetroleumSector

Number of petroleum retail site inspections conducted per year

Quarterly Atleast1500retailsitecomplianceinspections conducted

At least 300 retail site complianceInspections conducted

Atleast500retailsite compliance inspections conducted

300 retail site compliance inspections conducted

At least 400 retail site Compliance inspections conducted

Number of fuel samples tested Quarterly At least 1 080 fuel samples tested Atleast250fuelsamples tested

At least 290 fuel samples tested

At least 290 fuel samples tested

Atleast250fuelsamples tested

Petroleum and LiquidFuelSectorTransformation

Baselineinformationinthepublished audit report of B-BBEEonthePetroleumRetailSector

Quarterly Publication of the Audit report onB-BBEEinthePetroleumRetailSector

Consultation withaffectedstakeholdersonthepublished report



Audit report on B-BBEEinthePetroleum Retail Sectorpublished

Finalise the Petroleum and LiquidFuelSectorCode

Quarterly Publication of the Petroleum and LiquidFuelSectorCode

Consultation withaffectedstakeholdersonthe Petroleum and LiquidFuelSectorCode



Petroleum and LiquidFuelSectorCode published

Sub-Programme 3.1 Quarterly Targets for 2018/19


Sub-Programme 3.2: Petroleum Licensing and Fuel Supply

This sub-programmemanages the adjudication of petroleum

licenseapplications,regulatesthepermittingoftheexportand

importofpetroleumproducts,monitorsfuelstocklevels,andco-

ordinatescorrectiveactionstoavoidfuelshortages.Thisentails




Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO3.2Promotepetroleumlicensing

Atleast50%oflicenceapplicationsapprovedhaveaminimumof50%HDSAownership

30% of licenceapplicationsapprovedhave50%BEEownership

40% of licenceapplications approvedhave50%BEEownership

50%oflicenceapplicationsapprovedhave50%BEEownership


Atleast50%oflicenceapplicationsapprovedhaveaminimum50%HDSAownership







Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO3.2Promotepetroleumlicensing

% of licence applications approvedwhereHDSAownershipisatleast50%

30% of licence applications approvedhave50%BEEownership

40% of licence applications approvedhave50%BEEownership






Sub-Programme 3.2: Performance Indicators and Annual Targets for 2017 MTEF



Quarterly Targets

Q1 Q2 Q3 Q4

SO3.2Promotepetroleum licensing

% of licence applications approvedwhereHDSAownershipisatleast50%

Quarterly Atleast50%oflicenceapplicationsapprovedhaveaminimumof50%HDSAownership

Atleast50%oflicence applications approvedhaveaminimum50%HDSAownership





conducting license analyses and ensuring permit and charter

compliance and fuel supply. It also includes the adjudication

of different license types in accordance with the Petroleum

ProductsAct,1977(ActNo.120of1977),asamended.


Sub-Programme 3.3: Fuel Pricing Regulation

This sub-programme regulates the pricing of petroleum

products in accordance with the legislative framework. This

entails the determination, review, updating andmaintenance

offuelleviesandmarginsandtheprocessofpayingfuellevies.

Fuelprice administration includesdeveloping, evaluatingand

Sub-Programme 3.4: Regional Petroleum Regulation Offices

This sub-programme provides advice on integrated energy

services, develops appropriate interventions to enhance and

promoteuniversalaccesstoenergy,andensureseconomicand

technical compliancewith relevant legislation. In addition, all

annual information submitted by licence holders is captured

andanalysed.


Programme 3: Petroleum & Petroleum Products Regulation (Sub-Programmes)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000PetroleumCompliance,MonitoringandEnforcement 13541 13 847 14 189 12 728 12 728 18574 19655 20 800

PetroleumLicensingandFuelSupply 19 400 20 740 24152 26 946 26 946 27 388 29 164 31 129

Fuel Pricing 9158 6 839 7 367 8465 8465 6 169 6554 6 980

Regional Petroleum Regulation Offices 22 449 27532 33 283 33 689 33 689 35001 37 324 40 396


Programme 3: Petroleum & Petroleum Products Regulation (Economic Classification)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Current payments 62 236 68 958 78 819 81 828 81 828 84 254 89 659 96 100 Compensation of employees 41 927 52 566 58 939 60 917 60 917 63 363 67 599 72 825 Salariesandwages 36605 45620 51163 52388 52432 54542 58193 62 728

Socialcontributions 5322 6 946 7 776 8529 8485 8 821 9 406 10 097


Advertising 468 432 756 995 783 1 040 1 099 1159

monitoringpricemodels,updatingelementsof theBasicFuel

Price(BFP),andensuringsecureauditservicesfortheauditing

of fuel prices, to ensure internationally competitivepricingof

petroleumproducts,therebyenablinginvestmentinthesector.


Programme 3: Petroleum & Petroleum Products Regulation (Economic Classification)

(continued)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline


Minor assets - - 1 177 114 - - -



Computerservices 60 9 - 180 40 - - -

Consultants:Businessandadvisoryservices 9056 10 023 10415 9965 10056 12 601 13 308 14 041

Legalservices(G&S) 199 - 119 - - - - -

Contractors 41 7 12 21 22 22 23 24

Agencyandsupport/outsourcedservices - - - 6 - - - -

Entertainment - - - 4 - - - -

Fleetservices(includinggovernmentmotortransport) 22 32 27 174 138 29 31 33



Operating leases 221 26 20 - 10 - - -

Rental and hiring 15 - - 67 32 - - -

Property payments - - - 27 22 - - -

Travelandsubsistence 5714 4 270 6 200 3895 4 331 4 082 4 307 4544

Traininganddevelopment 11 - 11 - - - - -

Operating payments 3 036 254 481 2 362 2258 540 570 601

Venuesandfacilities 367 218 645 1 221 1 333 1 280 1351 1425

Transfers and subsidies 2 312 - 122 - - 2 878 3 038 3 205

Foreigngovernmentsandinternationalorganisations 2 312 - - - - 2 878 3 038 3205

Households - - 122 - - - - -

Payments for capital assets - - 35 - - - - -

Othermachineryandequipment - - 35 - - - - -

Payments for financial assets - - 15 - - - - -

Total economic classification 64 548 68 958 78 991 81 828 81 828 87 132 92 697 99 305


Programme 3: Petroleum & Petroleum Products Regulation (Transfer Payments)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Beneficiary R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000EmployeeSocialBenefits - - 122 - - - - -

African Petroleum Producers Association 2 312 - - - - 2 878 3 038 3205

TOTAL 2 312 - 122 - - 2 878 3 038 3 205

Risk Management

Strategic Objective Strategic Risk Root Cause Risk Consequence Mitigation Strategy

SO3.1ComplianceMonitoring&EnforcementinthePetroleumSector

Non-compliancetolicenceconditions(displayofsiteandretail&manufacturinglicences)

Noconsequencesforretailersfornon-complianceorbreachofregulations.

Possibletrendsettingnon-complianceacrossretailers.

Finalisation of the amendment to the PPA(PetroleumProductAct)

SO3.2PromotePetroleumLicensing PerpetuatedexclusionofBEEintheliquidfuelssector

Barrierstoentry(accesstomarket,fundingandinfrastructure)

llegaloperations.Possibleuprisingbythepublic.

Finalisation of the alignment of the liquidfuelscharterandBEEcharter


Programme 4: Electrification and Energy Programme and Project Management



Tomanage,coordinateandmonitorprogrammesandprojects

focusedonaccesstoenergy.

4.2 Budget Sub-Programmes• IntegratedNationalElectrificationProgramme• EnergyRegionalOffices• ProgrammesandProjectManagementOffice• Electricity Infrastructure/Industry Transformation/

CommunityUpliftmentProgrammesandProjects

Sub-Programme 4.1: Integrated National Electrification Programme

The Integrated National Electrification Programme (INEP)

oversees and manages the finance and implementation

processes for the electrification programme; manages

the annual planning processes, including electrification

infrastructure plans; and manages and coordinates technical

auditsfortheprogramme.Thissub-programmeaimstodeliver

ontheMTSFtargetforelectrificationof1.25millionhouseholds

throughgridandnon-gridtechnologies.

Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO4.1Accessto electricity byhouseholds

0QuarterlyReportson the allocation of funding and monitoring of progress of additional households to be electrifiedwithgrid electrification towardthe2019/20 target of1.25millionin the National Electrification Plan

Number of additional households to be electrifiedwithgrid electrification towardthe2014/15targetof265000in the National Electrification Plan

4QuarterlyReportson additional households to be electrifiedwithgrid electrification towardthe2015/16target of 260 000 in the National Electrification Plan

4QuarterlyReportson the allocation of funding and monitoring of progress of additional households to be electrifiedwithgrid electrification towardsthe2016/17 target of235000inthe National Electrification Plan

4QuarterlyReportson additional households to be electrifiedwithgrid electrification towardthe2017/18targetof235000in the National Electrification Plan



4QuarterlyReportson additional households to be electrifiedwithgrid electrification towardthe2020/21targetof215000in the National Electrification Plan

Sub-Programme 4.1 Strategic Objective and Annual Targets for 2018/19

Programme 4: Electrification and Energy Programme and Project Management


Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

20QuarterlyReports on building/upgrading of electrification infrastructure projectstowardthe2019/20 target of: -17newbulksubstations built -24additionalsubstations upgraded -545kmnewMVpowerlinesconstructed -450kmofexistingMVpowerlinesupgraded

Building/upgradingof electrification infrastructure projectstowardthe2014/15targetof:-4newbulksubstations built -7additionalsubstations upgraded/strengthened -150kmnewMVpowerlinesconstructed -80kmofexistingMVpowerlinesupgraded/strengthened

4QuarterlyReportson the building/upgrading of electrification infrastructure projectstowardthe2015/16targetof:-4newbulksubstations built -6additionalsubstations upgraded -110kmnewMVpowerlinesconstructed -95kmofexistingMVpowerlinesupgraded

4QuarterlyReportson the allocation of funding and monitoring of progress of building/upgrading of electrification infrastructure projectstowardsthe2016/17 target of: -3newbulksubstations built -3additionalsubstations upgraded -90kmnewMVpowerlinesconstructed -90kmofexistingMVpowerlinesupgraded

4QuarterlyReportson building/upgrading ofelectrification infrastructureprojectstowardthe2017/18targets,ascontractedwithEskomandmunicipalities

4QuarterlyReportsonbuilding/upgrading ofelectrification infrastructureprojectstowardthe2018/19targets,ascontractedwithEskomandmunicipalities



20QuarterlyReports on additional households electrifiedwithnon-grid connection of 115000householdsby March 2019 of which86250(75%)are in the rural areas

Number of additional households electrifiedwithnon-grid electrification towardthe2014/15targetof15000in the National Electrification Plan

Number of additional households electrifiedwithnon-grid electrification towardthe2015/16target of 20 000 in the National Electrification Plan

4QuarterlyReportson the allocation of funding and monitoring of progress of additional households electrifiedwithnon-grid electrification towardsthe2016/17target of 20 000 in the National Electrification Plan

4QuarterlyReportson the allocation of funding and monitoring of progress of additional households electrifiedwithnon-grid electrification towardsthe2017/18 target of 15000inthe National Electrification Plan

4QuarterlyReportson additional households electrifiedwithnon-grid electrification towardsthe2018/19 target of 20 000 inthe NationalElectrification Plan



Sub-Programme 4.1 Strategic Objective and Annual Targets for 2018/19 (continued)


Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO4.1Accessto electricity by households

Number of QuarterlyReportsof additional households to be electrifiedwithgrid electrification towardthe2018/19target of 200 000 in the National Electrification Plan

Number of additional households to be electrifiedwithgrid electrification towardthe2014/15targetof265000in the National Electrification Plan

4QuarterlyReportson the additional households to be electrifiedwithgrid electrification towardthe2015/16target of 260 000 In the National Electrification Plan

4QuarterlyReportson the allocation of funding and monitoring of progress of additional households to be electrifiedwithgrid electrification towardsthe2016/17 target of235000inthe National Electrification Plan

4QuarterlyReportson the additional households to be electrifiedwithgrid electrification towardsthe2017/18 target of235000inthe National Electrification Plan

4QuarterlyReportson the additional households to be electrifiedwithgrid electrification towardsthe2018/19 target of 200 000 in the National Electrification Plan

4QuarterlyReportson the additional households to be electrifiedwithgrid electrification towardsthe2019/20 target of 210 000 in the National Electrification Plan

4QuarterlyReportson the additional households to be electrifiedwithgrid electrification towardsthe2019/20 target of215000inthe National Electrification Plan

Number of quarterlyprogressreports on building/upgrading of electrification infrastructure projectstowardthe2018/19 target

Building/upgradingof electrification infrastructure projectstowardthe2014/15targetof:-4newbulksubstations built -7additionalsubstations upgraded/strengthened -150kmnewMVpowerlinesconstructed -80kmofexistingMVpowerlinesupgraded/ strengthened powerlinesupgraded

4QuarterlyReportson the building/upgrading of electrification infrastructure projectstowardthe2015/16targetof:-4newbulksubstations built -6additionalsubstations upgraded -110kmnewMVpowerlinesconstructed -95kmofexistingMVpowerlinesupgraded

4QuarterlyReportson the allocation of funding and monitoring of progress of building/upgrading of electrification infrastructure projectstowardsthe 2016/17 target of: -3newbulksubstations built -3additionalsubstations upgraded -90kmnewMVpowerlinesconstructed -90kmofexistingMVpowerlinesupgraded

4QuarterlyReportsonbuilding/upgrading of electrification infrastructureprojectstowardthe2017/18targets,ascontractedwithEskomandmunicipalities









Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Number of quarterlyreportson additional households electrifiedwithnon-grid electrification towardsthe2018/19 target of 20 000 in the National Electrification Plan

Number of additional households electrifiedwithnon-grid electrification towardthe2014/15targetof15000in the National Electrification Plan

Number of additional households electrifiedwithnon-grid electrification towardthe2015/16target of 20 000 in the National Electrification Plan

4QuarterlyReportson additional households electrifiedwithnon-grid electrification towardsthe2016/17 target of 20 000 in the National Electrification Plan

4QuarterlyReportson additional households electrifiedwithnon-grid electrification towardsthe2017/18 target of 15000inthe National Electrification Plan






Quarterly Targets

Q1 Q2 Q3 Q4

SO4.1Accessto Electricity byHouseholds

Numberofquarterlyreportsof additional households tobeelectrifiedwithgridelectrificationtowardthe2018/19target of200 000 in the NationalElectrification Plan

Quarterly 4QuarterlyReportsonadditionalhouseholdstobeelectrifiedwithgridelectrificationtowardthe2018/19target of 238 000 in the National Electrification Plan

1QuarterlyReporton allocation of funding and monitoring of progress of additional households to be electrifiedwithgrid electrification towardsthe2018/19target of 20 000

1QuarterlyReporton allocation of funding and monitoring of progress of additional households to be electrifiedwithgrid electrification towardsthe2018/19targetof45000

1QuarterlyReporton allocation of funding and monitoring of progress of additional households to be electrifiedwithgrid electrification towardsthe2018/19targetof55000

1QuarterlyReporton allocation of funding and monitoring of progress of additional households to be electrifiedwithgrid electrification towardsthe2018/19target of 80 000






Quarterly Targets

Q1 Q2 Q3 Q4

Numberofquarterlyprogressreports on building/upgrading of electrification infrastructure projectstowardthe2018/19target

Quarterly 4Quarterlyreportsonbuilding/upgrading of electrification infrastructureprojectstowardthe2018/19targetsascontractedwithEskomandmunicipalities

1Quarterlyreporton building/upgrading of electrification infrastructure projectstowardthe2018/19 targets as contracted withEskomandmunicipalities



1Quarterlyreportbuilding/upgrading of electrification infrastructure projectstowardthe2018/19 targets as contracted withEskomandmunicipalities

Numberofquarterlyreportson additional households electrifiedwithnon-gridelectrificationtowardsthe2018/19 target of20 000 in the NationalElectrification Plan

Quarterly 4QuarterlyReportsonadditionalhouseholdselectrifiedwithnon-gridelectrificationtowardsthe2018/19 target of 20 000 in the NationalElectrification Plan

1QuarterlyReporton the allocation of funding and monitoring of progress ofadditional households electrifiedwithnon-grid electrification towardthe2018/19targetof2500

1QuarterlyReporton the allocation of funding and monitoring of progress ofadditional households electrifiedwithnon-grid electrification towardthe2018/19target of 4000



Sub-Programme 4.1: Quarterly Targets for 2018/19 (continued)


Sub-Programme 4.2: Energy Regional Offices

This sub-programme provides advice on integrated energy

services, develops appropriate interventions to enhance and

promoteuniversalaccesstoenergy,managesandco-ordinates

regional electrification planning, and ensures economic and

technicalcompliancewithrelevantlegislation.

Sub-Programme 4.3: Programme and Project Management Office

This sub-programme provides specialised assistance to

programme and project managers, and management in

general, to apply management principles, coordinate project

informationand reportonprojects.The sub-programmeaims

todevelopIntegratedEnergyCenters(IeC)withthesupportof

majoroilcompaniestoensureaccesstovariousformsofenergy

incommunitieswherevolumesdonotjustifysuchbutthereis

aneed.




Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO4.2Enhancedprogramme andprojectmanagementSO4.3EnhancedProgrammes &ProjectsManagement

20QuarterlyReportsand5Annual Reports regarding thedevelopmentofrural IeC

4QuarterlyReportson progress made in2013/14withregard to the establishment of 2 IeC

Annual Report on progress made in 2014/15withregardto IeC

AnnualReport(s)ondevelopmentofrural IeC

4QuarterlyReportsand oneAnnual Report regarding thedevelopmentofrural IeC








Quarterly Targets

Q1 Q2 Q3 Q4

SO4.2EnhancedProgrammes &ProjectsManagement


Numberofquarterlyreportsand Annual reports on progress madewithregardtothedevelopmentofruralIeCs

Quarterly Fourquarterly&oneannualreportswithregardtothedevelopmentofIeC’s

1quarterlyreportwithregardtothedevelopmentofIeC’s

1quarterlyreportonIeCswithregardtothedevelopmentof rural IeC’s

1quarterlyreportonIeCswithregardtothedevelopmentof rural IeC’s

1quarterly&oneannual reports on IeCswithregardtothedevelopmentofrural IeC’s





Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO4.2Enhancedprogramme andprojectmanagement


Number of QuarterlyandAnnual Reports on progressmadewithdevelopmentofrural IeCs

4QuarterlyProgressReports made in 2013/14withregardto establishment of 2 IeC’s

Annual report on progress made in2014/15withregards to IeC’s

Monthly,Quarterlyand Annual Reports withregardtodevelopmentofIeC’s

4QuarterlyReportsand oneAnnual Report regarding thedevelopmentofrural IeC’s






Sub-Programme 4.4: Electricity Infrastructure/Industry Transformation/ Community Upliftment / Programmes and Projects

Thissub-programmeoverseesprogrammesandprojectsfocusedonthedevelopment,improvement

andtransformationoftheelectricitygeneration,transmissionanddistributionsector,andindependent

powerproducers.

Sub-Programme: Community Upliftment / Programmes and Projects

This sub-programme implements, manages and coordinates programmes and projects

aimed at empowerment of disadvantaged and vulnerable groups and increases public

awarenessonenergyissues.




Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO4.2EnergyInfrastructure DevelopmentMonitored

10 Reports on interventionsorsupportprovidedto municipalities struggling withelectricityinfrastructure rollout

Updated report highlightingachievementsofimplementation of IPP Programme

1 Annual Report on infrastructuremonitoring and compliancewithimplementation ofnon-REIPPPGenerationProgramme – peakerstations

1 annual report on infrastructuremonitoring & compliancewithimplementation ofnon-REIPPPGenerationProgramme – peakerstations

2 Reports on interventionsorsupportprovidedto municipalities strugglingwithelectricityinfrastructurerollout

2 reports on interventionsorsupportprovidedto municipalities struggling withelectricityinfrastructure rollout







Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO4.3Energyinfrastructure developmentmonitored

Number of reports oninterventionsorsupportprovidedto municipalities struggling withelectricityinfrastructure rollout

An updated report highlighting achievementonimplementation of IPP Programme

1 Annual Report on infrastructure monitoring and compliancewithimplementation ofnon-REIPPPgeneration programme – peakerstations

1 Annual Report on infrastructure monitoring and compliancewithimplementation ofnon-REIPPPgeneration programme – peakerstations

2 Reports on interventionsorsupportprovidedto municipalities strugglingwithelectricityinfrastructurerollout




Sub-Programme 4.4 Performance Indicators and Annual Targets for 2018/19 MTEF


Programme 4: Electrification & Energy Programme & Project Management (Sub-Programmes)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Integrated National Electrification Programme 4142550 5775682 5630619 6143507 6177659 5392463 5799346 6 118 779

Energy Regional Offices 17581 20 271 19650 15805 16605 18 123 19 799 21 621

ProgrammeandProjectManagementOffice 7245 9095 13 491 11 338 11 338 11353 12 024 12 788

ElectricityInfrastructure/IndustryTransformation 6575 8593 9 278 7 713 7 713 8 140 8 631 9 213

CommunityUpliftmentProgrammesandProjects 7 022 6 844 5621 5665 6665 5321 5639 6 006

Total for Programmes 4 180 973 5 820 485 5 678 659 6 184 028 6 219 980 5 435 400 5 845 439 6 168 407


Programme 4: Electrification & Energy Programme & Project Management (Economic Classification)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Current payments 58 240 70 718 68 304 60 998 64 978 67 243 72 117 77 302 Compensation of employees 36 224 41 796 43 841 44 232 45 212 49 620 53 471 57 619 Salariesandwages 31 993 36 804 38475 38 020 39 031 42 668 46055 49656

Socialcontributions 4 231 4 992 5366 6 212 6 181 6952 7 416 7 963




Quarterly Targets

Q1 Q2 Q3 Q4

SO4.2EnergyInfrastructure DevelopmentMonitored

Number of reports on interventionsorsupportprovidedtomunicipalitiesstrugglingwithelectricityinfrastructure rollout

Bi-annually 2reportsoninterventionsorsupportprovidedtomunicipalitiesstrugglingwithelectricityinfrastructure rollout

N/A Report on interventionsorsupportprovidedto municipalities struggling withelectricityinfrastructure rollout

N/A Report on interventionsorsupportprovidedto municipalities struggling withelectricityinfrastructure rollout



Programme 4: Electrification & Energy Programme & Project Management (Economic Classification)

(continued)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Administrativefees 991 1 328 1 213 833 812 863 912 962

Advertising 976 853 1 663 93 74 98 104 110

Minor assets 7 30 - 564 557 - - -

Audit costs: External - - - 732 732 - - -

Catering:Departmentalactivities 261 1435 1 381 641 662 669 708 748


Computerservices - 15 - 53 53 - - -

Consultants:Businessandadvisoryservices 25 19 182 3515 3515 4 111 4 341 4580

Contractors 14 39 561 - - - - -

Agencyandsupport/outsourcedservices - 9 6 - - - - -

Fleetservices(includinggovernmentmotortransport) 153 276 253 26 53 28 30 32



Operating leases 183 871 834 - 19 - - -

Rental and hiring - 21 - - - - - -

Property payments - 32 24 - - - - -

Transportprovided:Departmentalactivity - 238 114 - - - - -

Travelandsubsistence 14254 15700 12 210 7505 6 988 8 929 9 463 9 993

Traininganddevelopment 18 21 - - - - - -


Venuesandfacilities 4 447 7153 4592 1 616 5132 1 686 1 780 1 878

Transfers and subsidies 4 122 704 5 749 762 5 610 355 6 123 030 6 155 002 5 368 157 5 773 322 6 091 105 Municipalities 1104658 1 980 340 1 946 246 2 087 048 2 087 048 1 904 477 2 127 928 2 244 964

Public corporations 2 948 037 3 613 243 3526334 3846154 3846154 3 262 031 3432453 3 621 488

Privateenterprises 70 000 156179 137 733 189 828 221 800 201 649 212 941 224653

Households 9 - 42 - - - - -

Payments for capital assets - - - - - - - - Transportequipment - - - - - - - -

Payments for financial assets 29 5 - - - - - - Total economic classification 4 180 973 5 820 485 5 678 659 6 184 028 6 219 980 5 435 400 5 845 439 6 168 407


Programme 4: Electrification & Energy Programme & Project Management (Transfer Payments)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Beneficiary R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Variousinstitutions:IntegratedNationalElectrificationProgramme

70 000 156179 137 733 189 828 221 800 201 649 212 941 224653

Eskom 2 948 037 3 613 243 3526334 3846154 3846154 3 262 031 3432453 3 621 488

EmployeeSocialBenefits 9 - 42 - - - - -

IntegratedNationalElectrificationProgrammeGrant 1104658 1 980 340 1 946 246 2 087 048 2 087 048 1 904 477 2 127 928 2 244 964

TOTAL 4 122 704 5 749 762 5 610 355 6 123 030 6 155 002 5 368 157 5 773 322 6 091 105

Risk Management

Strategic Objective Strategic Risk Root Cause Risk Consequence Mitigation Strategy

SO4.1Accesstoelectricitybyhouseholds

Inabilitytoreachuniversalaccesstoelectricity

Lackofcapacityofimplementingstrategicagents(ESKOMandMunicipalities)todeliveronstrategicprojects

Reputational damage and loss of credibility of the DOE

Allocate additional resources to improvemonitoringteam

S.O.4.2.EnergyInfrastructuredevelopmentmonitored

Lackoftransformationintheenergysector(social-economicbenefitsnotachieved)

Lackofeffectivepolicyenforcement Socialandeconomicinequalityperpetuated

Reviewtransformationtargetstoensureinclusionofvulnerablegroupsand enforceable targets


Programme 5:Nuclear Energy



TomanagetheSouthAfricannuclearenergyindustryinterms

of internationalobligations,nuclear legislationandpolicies to

ensurethepeacefuluseofnuclearenergy.

5.2 Budget Sub-Programmes• NuclearSafetyandTechnology• NuclearNon-ProliferationandRadiationSecurity• NuclearPolicy

Sub-Programme 5.1: Nuclear Safety and Technology

This sub-programme manages and implements all matters

relating to nuclear safety and technology, as required by

legislation and international agreements; implements the

Nuclear Energy Policy in line with the requirements of the

Integrated Resource Plan (IRP); and administers all matters

relatingtonuclearsafety,liabilityandemergencymanagement,

withtheaimofimprovingthegovernanceofthenuclearsector,

specificallyinrelationtonuclearsafetyandnucleartechnology.

Thissub--programmeisresponsiblefortheoverallcoordination

and oversight for the new nuclear expansion programme.

together with the necessary due diligence on the proposed

transaction. This sub-programme also makes transfers to the

SouthAfricanNuclearEnergyCorporation,theNationalNuclear

RegulatorandtheNationalRadioactiveWasteDisposalInstitute

Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO5.13ToImproveSecurityofEnergySupply

Decommissioning and Decontamination Policy

N/A N/A N/A N/A Decommissioning and Decontamination Policy produced

Draft Decommissioning and Decontamination Policy submitted to Cabinet forpublicconsultationwithstakeholders

Draft Decommissioning and Decontamination Policyapprovedandpromulgated


Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO5.1Improvedsecurity of energysupply

Decommissioning and Decontamination Policy

N/A N/A N/A N/A Decommissioning and Decontamination Policy produced

Draft Decommissioning and Decontamination Policy submitted to Cabinet forpublicconsultationwithstakeholders

Draft Decommissioning and Decontamination Policyapprovedandpromulgated


Programme 5: Nuclear Energy


Strategic Objective



Quarterly Targets

Q1 Q2 Q3 Q4

SO5.1ImprovedSecurityofEnergySupply

Decommissioning and Decontamination Policy finalised

Quarterly Decommissioning and DecontaminationPolicydevelopedand produced

Decommissioning and Decontaminations Policy draft prepared

ConsultationwithstakeholderonDraftDecommissioning and Decontamination Policy

Consolidated Stakeholderinputs on Draft Decommissioning and Decontamination Policy

Decommissioning and Decontamination Policy produced


Sub-Programme 5.2: Nuclear Non-Proliferation and Radiation Security

Thissub-programmemanagesandimplementsallmattersrelatedtonuclearnon-proliferationandradiationsecurityasrequiredbylegislationandinternationalagreements.Thisentailsaccountingforand

controllingofnuclearmaterialthroughissuingofnuclearauthorisations;ensuringcompliancebyconductinginspections,andaudits,andregulatingthesecurityofnuclearmaterialandrelatedfacilities.

Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO5.2ToStrengthentheControl of Nuclear Material and Equipment

Accounting and control ofpossession,acquisition,transportation,importation and exportation of nuclear material and related equipmentthroughconsiderationof 70% of authorisation applicationswithin8weeks

70% of authorisation applications processedwithinthe8-weektimeperiod




At least 70% of authorisation applications processedwithinthe8-weektimeperiod








Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO5.2ToStrengthentheControl of Nuclear Material and Equipment

Percentage of processed authorisation applicationswithinthe8-weektimeperiod











Quarterly Targets

Q1 Q2 Q3 Q4

SO5.2StrengthenedControl of Nuclear Material and Equipment

Percentage of processed authorisation applications withinthe8-weektimeperiod

Quarterly 70% of authorisation applications processedwithinthe8-weektimeperiod







Sub-Programme 5.3: Nuclear Policy

Thissub-programmedevelopsandreviewspoliciesandlegislation,asrequiredbyinternationalagreementsandthegovernanceprinciplesofthenuclearenergysectorinSouthAfrica;undertakesresearch

anddevelopmentonmattersrelatedtonuclearpolicyandlegislation;andreviewsandmonitorsnuclearsafety,nucleartechnology,nuclearnon-proliferationandnuclearradiationsecuritypoliciesand

legislation,andprovidesadviceaccordingly.

Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO5.3Improvednuclear safety andsecurity

Promulgation of the National Nuclear RegulatorAct,1999(ActNo.47of1999)amendmentcompleted

Consultationwithand presentation toFOSADCluster

SubmissiontoCabinetfor public consultation

SubmissiontoCabinetfor public consultation consideration

4Workshopswithimpactedstakeholders(NNR,DoH,SANDFandDPME)ontheDraftNNR Amendment Bill

SubmittheNationalNuclear Regulator AmendmentBillto obtain cabinet approvalforpublicconsultation

National Nuclear Regulator Amendment Billsubmittedto Parliament for approval

N/A

Promulgation of RadioactiveWasteManagement Fund Billcompleted

N/A N/A N/A N/A DraftRadioactiveWasteManagementFundBillsenttotheChiefStateLawAdvisor

RadioactiveWasteManagement FundBillSubmissiontoCabinet to obtainapprovalforPublicConsultation

N/A


Strategic Objective




2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO5.3Improvednuclear safety andsecurity

DraftRadioactiveWasteManagementFundBillsenttotheChiefStateLawAdvisor

Consultationwithand presentation toFOSADCluster

SubmissiontoCabinetfor public consultation

SubmissiontoCabinetfor public consultation consideration

4Workshopswithimpactedstakeholders(NNR,DoH,SANDFandDPME)ontheDraftNNR Amendment Bill

SubmittheNationalNuclear Regulator AmendmentBillto obtain cabinet approvalforpublicconsultation

National Nuclear Regulator Amendment Billsubmittedto Parliament for approval

N/A






Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21


N/A N/A N/A N/A DraftRadioactiveWasteManagementFundBillsenttotheChiefStateLawAdvisor

RadioactiveWasteManagement FundBillSubmissiontoCabinet to obtainapprovalforPublicConsultation

N/A




Quarterly Targets

Q1 Q2 Q3 Q4

SO5.3ImprovedNuclearSafetyandSecurity

Draft National Nuclear RegulatorAmendmentBillfinalizedforpublicconsultation

Quarterly SubmittheNationalNuclearRegulatorAmendmentBillforCabinetapprovalforpublicconsultation

CompiledrevisedSocioEconomicImpact Assessment Report for the National Nuclear Regulator AmendmentBill

SubmittedtheNational Nuclear Regulator AmendmentBilltoFOSAD

Consolidated Nuclear Regulator AmendmentBillwithinputsfromFOSAD

National Nuclear Regulator AmendmentBillSubmittedtoCabinet

SO5.3ImprovedNuclearSecurity


Quarterly DraftRadioactiveWasteManagementFundBillsenttotheChiefStateLawAdvisor

RadioactiveWasteManagement Fund Billdraftedwithinputs from the financing model study

DraftRadioactiveWasteManagementFundBillConsultedwithimpactedstakeholdersthroughaworkshop

CompileSocioEconomic Impact AssessmentSystemReport Phase 1





Programme 5: Nuclear Energy (Economic Classification)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Current payments 34 040 25 272 191 393 36 224 40 124 49 540 39 912 42 593 Compensation of employees 13 446 17 040 19 791 21 181 21 181 21 794 23 445 25 221 Salariesandwages 12085 15322 17 790 18 216 18 216 18555 19 996 21525Socialcontributions 1 361 1 718 2 001 2965 2965 3 239 3 449 3 696 Goods and services 20 594 8 232 171 602 15 043 18 943 27 746 16 467 17 372 Administrativefees 447 383 152 92 92 96 101 104 Advertising 476 1570 486 2 091 3 241 1 344 1575 1 606 Minor assets - - 4 - - - - -Catering:Departmentalactivities 155 81 380 132 132 143 150 159Communication(G&S) 146 277 237 244 244 255 269 284 Consultants:Businessandadvisoryservices 11 847 752 165829 10 078 10 798 21052 10 986 11591Legalservices(G&S) - 50 71 - - 1 700 - -Contractors 212 - - - - - - -Agencyandsupport/outsourcedservices - - - 32 32 - - -Fleetservices(includinggovernmentmotortransport) 2 1 - - - - - -Consumable supplies 16 19 25 - - - - -Consumables:Stationery,printingandofficesupplies 468 130 595 465 465 484 511 539Operating leases 2 - - - - - - -

Programme 5: Nuclear Energy (Sub-Programmes)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000NuclearSafetyandTechnology 832 274 641 491 859003 769527 770 727 796159 850227 890 921

NuclearNon-proliferationandRadiationSecurity 6156 7 168 8 303 8 003 9253 9 074 9 623 10 206

Nuclear Policy 6 988 6 369 5145 9345 10895 11353 10 419 11 013




Programme 5: Nuclear Energy (Transfer Payments)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Beneficiary R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Beneficiary R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000

SouthAfricanNuclearEnergyCorporation 760 678 580358 599338 664 171 664 171 682 714 720 224 759851

National Nuclear Regulator 33 697 21 487 40 936 38573 38573 16510 43 096 45467

International Atomic Energy Agency 17 003 27 886 19753 17 207 17 207 18205 19 224 20 281

NationalRadioactiveWasteDisposalInstitute - - 10 000 30 000 30 000 45532 43 499 39 397

Employee social benefits - 25 - - - - - -

GenerationIVInternationalForum - - - 700 700 741 782 825

Households:Bursaries(non-employees) - - - - 100 - - -

AFRA - - - - - 3 344 3532 3 726

TOTAL 811 378 629 756 670 027 750 651 750 751 767 046 830 357 869 547

Programme 5: Nuclear Energy (Economic Classification)

(continued)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Travelandsubsistence 3 386 3 177 2 181 1 368 3 128 1591 1 678 1 771 Operating payments - 1 8 - - - - -Venuesandfacilities 3 437 1 791 1 634 541 811 1 081 1 197 1 318 Transfers and subsidies 811 378 629 756 670 027 750 651 750 751 767 046 830 357 869 547 Departmental agencies and accounts 33 697 21 487 50936 68573 68573 62 042 86595 84 864 Foreigngovernmentsandinternationalorganisations 17 003 27 886 19753 17 907 17 907 22 290 23538 24 832 Public corporations 760 678 580358 599338 664 171 664 171 682 714 720 224 759851Households - 25 - - 100 - - -Payments for capital assets - - 11 031 - - - - - Transportequipment - - - - - - - -Othermachineryandequipment - - 11 031 - - - - -Payments for financial assets - - - - - - - - Total economic classification 845 418 655 028 872 451 786 875 790 875 816 586 870 269 912 140


Risk Management


SO5.3ImprovedNuclearSafetyandSecurity DelaysintherevisionoftheNationalNuclearRegulator(NNR)AmendmentBill

NNRAmendmentBillnotrevised.Delays on the promulgation of the regulation

FurtherdiscussionwithNNRandDoHregardingprovisionrelatedtoDoHradiationcontrol


Programme 6:Clean Energy



Tomanageandfacilitatethedevelopmentandimplementation

of clean and renewable energy initiatives, as well as Energy

EfficiencyandDemand-SideManagement(EEDSM)initiatives.

6.2 Budget Sub-Programmes• EnergyEfficiency• RenewableEnergy• ClimateChangeResponse, Environmental Compliance and

Designated National Authority

Sub-Programme 6.1: Energy Efficiency

Thissub-programmeadvancesenergyefficiencyinSouthAfrica

by:planningandcoordinatinginitiativesandinterventionsthat

arefocusedondevelopingandimprovingtheenergyefficiency

market; and ensuring the integration and coordination of

energyefficiencyinitiativesandinterventionswiththerelevant

associatedinstitutions.




Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO6.1Implementation of theEEDSMMeasuresAcrossallSectorsCo-ordinatedandMonitored

Developenergyconsumption baselinesfor an additional 100municipalities

Planning and developingprojectstoachieve0.5TWhofenergysavingsperannum

0.5TWhofenergysavingsrealisedandverifiedfromEEDSMprojects

VerifiedenergysavingsfromEEDSMinitiatives






Develop&implement thepost-2015EEtargets &strategy

Promulgation of National Energy EfficiencyStrategyand Plan Document (ifapprovedbyCabinet

N/A Post2015NationalEnergy Efficiency Strategydraftedand submitted for approval

Post2015National Energy EfficiencyStrategyimplemented

Post2015NationalEnergy Efficiency Strategyfinalisedand promulgated


Post2015National Energy EfficiencyStrategyImplemented


Programme 6: Clean Energy





Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21


Number of energy savingsrealisedandverifiedfromEEDSMprojects

Planning and developingprojectstoachieve0.5TWhofenergysavingsperannum








Post-2015NationalEnergy Efficiency Strategy

Promulgation of National Energy EfficiencyStrategyand Plan Document (ifapprovedbyCabinet

N/A Post-2015NationalEnergy Efficiency Strategydraftedand submitted for approval


Post-2015NationalEnergy Efficiency Strategyfinalisedand promulgated


Post2015National Energy EfficiencyStrategyImplemented





Quarterly Targets

Q1 Q2 Q3 Q4

SO6.1ImplementationoftheEEDSMMeasures AcrossallSectorsCoordinated & Monitored

NumberofenergysavingsrealisedandverifiedfromEEDSMprojects

Quarterly 0.5TWhofenergysavingsrealisedandverifiedfromEEDSMprojects

Report on the identifiedEEDSMProjects

Report on the identifiedEEDSMProjects

Report on the implementation of the identified EEDSMProjects



Post-2015NationalEnergyEfficiencyStrategy

Quarterly Post2015NationalEnergyEfficiencyStrategyfinalisedandpromulgated

N/A N/A N/A Report on the post2015NEESimplementation (subjecttoCabinetapproval)



Sub-Programme 6.2: Renewable Energy

This sub-programme ensures the integration of renewable

energy into South Africa’s mainstream energy supply by

planning and co-ordinating initiatives and interventions




Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO6.2RenewableEnergy

Strategytoincreasetheuptakeofsolartechnologies in the energy mix

N/A N/A SolarEnergyTechnologyRoadmap incorporated into the Integrated Energy Plan

Promulgation of theSolarEnergyTechnologyRoadmap

DraftRenewableEnergyTechnologyRoadmap(RETRM)drafted and completed

FinalRenewableEnergyTechnologyRoadmap(RETRM)approvedandpublished

RenewableEnergyTechnologyRoadmap(RETRM)implemented

1millionSWHs,increasedbiogasuptake&use

-DeploymentofsolarPV

N/A CompletedSolarWaterHeatingImplementation Plan

Procure about 50000baselinesystemswithalocalcontent exceeding 70%

Increase the number of procured baseline systems inlinewithbudgetallocation;targetyouth trained under accredited programmes to install the systems at target municipalities

SolarWaterHeatingProgramme Implementation Plan finalisedSolarWaterHeaterProgramme Implemented

SolarWaterHeaterProgramme Implemented

SolarWaterHeaterProgramme Implemented


focused on the development and improvement of the

renewable energymarket. It also integrates and co-ordinates

renewableenergyinitiativesandinterventionswiththerelevant

associated localand international institutions. Inaddition, the

sub-programmemakestransferstotheSouthAfricanNational

EnergyDevelopmentInstitute(SANEDI).





Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21


RenewableEnergyTechnologyRoadmap developed

N/A N/A SolarEnergyTechnologyRoadmap incorporated into the Integrated Energy Plan

Promulgation of theSolarEnergyTechnologyRoadmap

DraftRenewableEnergyTechnologyRoadmap(RETRM)drafted and completed

FinalRenewableEnergyTechnologyRoadmap(RETRM)Completed,approvedandpublished

RenewableEnergyTechnologyRoadmap(RETRM)implemented

Number of procured baseline systemsinlinewithbudgetallocation;target youth trained under accredited programmes to install the systems at target municipalities

N/A SolarWaterHeatingProgrammeImplementation Plan

Procure about 50000baselinesystemswithalocalcontent exceeding 70%

Increase the number of procured baseline systems inlinewithbudgetallocation;targetyouth trained under accredited programmes to install the systems at target municipalities

SolarWaterHeaterProgramme implementation monitored and 4 quarterlyprogressreports submitted



Sub-Programme 6.2 Performance Indicators and Annual Targets for 2018/19 MTEF





Quarterly Targets

Q1 Q2 Q3 Q4


FinalDaftRenewableEnergyTechnologyRoadmaps(RETRM)

Quarterly DraftRenewableEnergyTechnologyRoadmaps(RETRM)completed

ProjectSteeringCommittee established

TermsofReference for the procurement ofTechnicalSupportfinalised

Procurement ofTechnicalsupport finalised

Visioningworkshopconducted

Expertworkshop

Roadmaps Document developed

DraftRenewableEnergy TechnologyRoadmaps finalised

SolarWaterHeaterProgrammeImplementation Monitored

Quarterly AnnualSWHInstallationcompleted SolarWaterHeatingProgramme Implementation Plan finalised

Quarterlyprogress report on the implementation oftheSolarHeaterProgramme






Sub-Programme 6.3: Climate Change and Designated National Authority

Thissub-programmeensuresthattheenergysector’sclimatechangeandenvironmentresponsemeasures,intermsofmitigationandadaptation,areimplementedwithintheenergysector.Italsoensures

thefulfillmentofinternationalenergycommitmentsandobligationsundertheUnitedNationsFrameworkConventiononClimateChangepertainingtotheKyotoProtocol.




Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO6.3Implementation ofenergy-relatedclimate changeresponse measuresandenvironmentalcomplianceco-ordinated and monitored

12%by2015(Energyefficiencytarget for 2019 to befinalised as outlinedby the NationalEnergy EfficiencyStrategy

N/A N/A ApprovedAnnualCompliance Report on the 3rd EnvironmentalManagement Plan Edition

ApprovedAnnualCompliance Report on the 3rd EnvironmentalManagement Plan Edition

Annual Compliance Report on the 3rd EnvironmentalManagement Plan Editionapproved



SO6.4Measurement,Reporting and VerificationSystemof Climate Change Parameters

Efficiency Action Planto be tabled forCabinet consideration

N/A N/A CarbonOffsetAdministrativeSystemestablished to supportimplementation ofCarbonTaxPolicy

SubmissiontotheMinister regarding CarbonOffsetAdministrativeSystemto support Carbon TaxPolicy

Carbonoffsetsregistry for listingoffsetscreditslinkedtocarbonoffsetsadministration systemdevelopedand implemented

Carbonoffsetprogramme administered and monitored







Medium-Term Targets

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

SO6.3Implementation ofEnergy-RelatedClimate ChangeResponse MeasuresandEnvironmentalComplianceCo-ordinated and Monitored

DevelopedAnnualCompliance Report on the 3rd EnvironmentalManagement Plan

N/A N/A ApprovedAnnualCompliance Report on the 3rd EnvironmentalManagement Plan Edition





SO6.4Measurement,Reporting and VerificationSystemof Climate Change Parameters

Developedandimplemented Carbonoffsetsregistry for listing offsetscreditstocarbonoffsetsadministration system

N/A N/A CarbonOffsetAdministrativeSystemestablishedto supportimplementation ofCarbonTaxPolicy

SubmissiontotheMinister regarding CarbonOffsetAdministrativeSystemtosupportCarbonTaxPolicy

Carbonoffsetsregistry for listing offsetscreditstocarbonoffsetsadministration systemdevelopedand implemented







Quarterly Targets

Q1 Q2 Q3 Q4

SO6.3Implementation ofEnergy-RelatedClimate Change Response Measures &EnvironmentalCompliance Coordinated & Monitored

Final Annual Compliance Report on the 3rd EnvironmentalManagementPlanEditionapproved

Quarterly Annual Compliance Report on the 3rdEnvironmentalManagementPlanEditiondevelopedandproduced

An outline of the annual compliance developed

Stakeholderconsultation workshopheldontherequireddataand outline

Report on data collection process

Draft Annual Compliance Report on the 3rd EnvironmentalManagement Plan Edition


SO6.4Measurement,Reporting & VerificationSystemof Climate Change Parameters

FinalCarbonoffsetsregistryforlistingoffsetscreditslinkedtocarbonoffsetsadministrationsystemDevelopedframeworktoapproveneweligiblestandardsunderthecarbonoffsetprogramme implemented

Quarterly Carbonoffsetsregistryforlistingoffsetscreditslinkedtocarbonoffsetsadministrationsystemdevelopedandimplemented

Carbonoffsetsadministration system and registry for gap identification and assessment conducted

Requestforproposalof outsourcing hosting of registry forlistingofoffsetscredits as part of implementation issued

Proposalsreceived/ assessed and approvedfortheentity to host the carbonoffsetsregistry

Carbonoffsetsregistry hosting implemented subjecttoapproval


Programme 6: Clean Energy (Sub-Programmes)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Energy Efficiency 658657 206 211 527139 700 703 668 703 285720 320588 348 238

RenewableEnergy 167 419 69 774 25240 65752 65752 75796 80 038 84 492

Climate Change and Designated National Authority 4 181 5798 7 722 8055 8055 8 667 9275 9 971




Programme 6: Clean Energy (Economic Classification)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Current payments 28 989 37 710 31 321 100 409 85 409 82 171 105 783 121 870 Compensation of employees 12 394 14 336 16 264 17 735 17 735 19 906 21 425 23 055 Salariesandwages 11 030 12 723 14 477 15252 15258 17258 18 604 20 030

Socialcontributions 1 364 1 613 1 787 2 483 2 477 2 648 2 821 3025


Advertising 559 4571 1 864 806 1 036 837 871 919

Minor assets - - - 655 613 - - -



Computerservices - 8 - 129 - - - -

Consultants:Businessandadvisoryservices 9605 10 667 7 636 65569 50569 46 480 67 679 81 217

Legalservices(G&S) - 50 - - - - - -

Contractors - - 95 - - - - -

Agencyandsupport/outsourcedservices - 1095 1 094 9 120 8 000 9529 10 063 10 616

Entertainment - - - 19 19 - - -

Fleetservices(includinggovernmentmotortransport) 2 - - - - - - -



Operating leases 2 1 1 - - - - -

Property payments - - - 711 652 - - -

Travelandsubsistence 2 207 5573 2 122 3 379 3 366 3485 3 738 3 943


Venuesandfacilities 3 682 415 728 1 324 1 289 1 317 1356 1 430

Transfers and subsidies 801 268 244 073 528 780 674 101 657 101 288 012 304 118 320 831 Municipalities 136905 177 899 185625 203 236 203 236 215024 227065 239554

Departmental agencies and accounts 162685 64 861 20625 59774 59774 70 241 74151 78215


Programme 6: Clean Energy (Economic Classification)

(continued)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Rand thousand R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000Foreigngovernmentsandinternationalorganisations 1 678 1 313 2 216 - - 2 747 2 902 3 062

Privateenterprises 500000 - 320 314 411 091 394 091 - - -

Payments for capital assets - - - - - - - - Othermachineryandequipment - - - - - - - -

Payments for financial assets - - - - - - - - Total economic classification 830 257 281 783 560 101 774 510 742 510 370 183 409 901 442 701

Programme 6: Clean Energy (Transfer Payments)

BASELINE MTEF

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited Outcome

Audited Outcome

Audited Outcome



Revised Baseline

Revised Baseline

Revised Baseline

Beneficiary R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000SouthAfricanNationalEnergyDevelopmentInstitute 162685 64 861 20625 59774 59774 70 241 74151 78215

Variousinstitutions:Solarwaterheaterproject 500000 - 320 314 411 091 394 091 - - -

InternationalRenewableEnergyAgency 1 678 1 313 2 216 - - 1 137 1 201 1 267

International Energy Forum - - - - - 337 356 376

International Partnership for Energy Efficiency Cooperation

- - - - - 1 273 1345 1 419

Energy efficiency and demand side management grant 136905 177 899 185625 203 236 203 236 215024 227065 239554

TOTAL 801 268 244 073 528 780 674 101 657 101 288 012 304 118 320 831

Risk Management


SO6.2RenewableEnergy Failure to complete and implement the solar waterheatingprogrammeplan

Slowrolloutofthesolarwaterheatingprogramme planEscalatingstoragecostsforsolarwaterheatersystems

CompletionofframeworkagreementwithmunicipalitiesFollow-upontheapprovaloftherevisedimplementation plan

SO6.1Implementationofthe(EnergyEfficiencyDemandSideManagement)EEDSMMeasuresAcrossallSectorsCoordinated&Monitored

Lackofcooperationandbuyinbystakeholderse.g.industry,commerce,municipalitiesetc.

EnergyefficiencytargetsnotachievedInability to meet international obligation on emissions

Promulgationoftheregulationsforprovisionof energy consumption data and energy management plans


Part CLinks to other Plans


Links to other Plans

1. LINKS TO LONG-TERM INFRASTRUCTURE AND OTHER CAPITAL PLANSTheDepartmentleadsthreeStrategicIntegratedProjects(SIPs),namelyIntegratedMunicipalInfrastructureProjects,GreenEnergyinsupportoftheSouthAfricanEconomyandElectricityTransmissionand

DistributionforAll.Inaddition,theDepartmentisfurtherrequiredtodirectlyorindirectlyparticipateinotherSIPinitiativesforcoordinationandreportingpurposes

Expenditure on long-term infrastructure and other capital plans

Project Name Programme OutputsOutcome

Main Appropriation


Revised Estimate

Medium Term Estimate

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

New Assets (R thousand) R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000

INEP:Eskom Electrification and Energy Programme andProjectManagement

ProvisionofcapitalsubsidiestoEskomtoaddresselectrificationbacklogsfor permanently occupied residentialdwellings,installbulkinfrastructure&rehabilitate electrification infrastructure

2,948,037 3,613,243 3,526,334 3,846,154 - 3,846,154 3,262,031 3,432,453 3,621,488

INEP: Municipalities

Electrification and Energy Programme andProjectManagement

Provisionofcapitalsubsidiesto municipalities to address electrificationbacklogsfor permanently occupied residentialdwellings,installbulkinfrastructure&rehabilitate electrification infrastructure

1,104,658 1,980,340 1,946,246 2,087,048 - 2,087,048 1,904,477 2,127,928 2,244,964

INEP:Non-gridelectrification technology


Provisionofcapitalsubsidiestonon-gridelectrificationserviceproviderstoaddresselectrificationbacklogs

70,000 156,179 137,733 189,828 31,972 221,800 201,649 212,941 224,653

Total 4,122,695 5,749,762 5,610,313 6,123,030 31,972 6,123,030 5,368,157 5,773,322 6,091,105


TheDepartment’sspendingfocusoverthemediumtermisset

to remain largely on household’s electrification. To this end,

an additional R1 billion has been allocated in 2019/20 during

the 2017 MTEF process to support the Integrated National

ElectrificationProgramme,whichelectrifieshouseholdsthrough

gridandnon-gridconnections,andnewbuilds/upgradesbulk

infrastructureofelectricitynetworkstosupporttheeradication

of backlogs. Governmentwill be reducing spending over the

MTEFperiodtoplaceitsfinancesonasustainablepathandthis

willconsequently result inabudget reductionofR2.24billion

in respectof Eskomgrantsover theMTEFperiod.Conditional

municipal grants similarly reduces by R2.77 billion over the

MTEF period, reducing projected grid electricity connections

made by both Eskom and Municipalities from 738 000 to

625000overtheMTEFperiod.

An estimated 625 000 grid and 60 000 non-grid connections

to households are expected to be made over the medium

term, funded by transfers to implementing municipalities,

non-grid service providers and Eskom. However, transfers to

municipalities are expected to increase from R1.92 billion in

2018/19,toR2.2billionin2020/21,andtransferstoEskomfrom

R3.3 billion in 2018/19, to R3.4 billion in 2020/21.The cost of

connections isexpectedto increaseover themediumtermas

the integrated national electrification programme shifts to deep

ruralareaswherethere isahistoricalbacklogs (27Districts), it

also requires more expensive hardware and covering larger

geographicareas.2. CONDITIONAL GRANTS TheDepartmentadministersconditionalgrantswithregardtotheNationalElectrificationProgrammeandEnergyEfficiencyandDemand-SideManagement(EEDSM)Programme.Theseconditionalgrants

aresummarisedasfollows(detailsprovidedintheDivisionofRevenueAct,2014[ActNo.10of2014]):

Programme Projectname Projectdescription2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Audited outcome

Audited outcome

Audited outcome

Revised baseline

Revised baseline

Revised baseline

Revised baseline

Rand thousand R'000 R'000 R'000 R'000 R'000 R'000 R'000

Clean Energy Energy Efficiency andDemandSideManagement Programme

Implementation of energy efficiency technologies

136,905 177,899 185,625 203,236 215,024 227,065 239,554


Integrated national electrification programme:Eskom

ProvisionofcapitalsubsidiestoEskomtoaddresselectrificationbacklogsforpermanentlyoccupiedresidentialdwellings,installationofbulkinfrastructure,andrehabilitationofelectrification infrastructure

2,948,037 3,613,243 3,526,334 3,846,154 3,262,031 3,432,453 3,621,488


Integrated national electrification programme: Municipalities

Provisionofcapitalsubsidiestomunicipalitiestoaddresselectrificationbacklogsforpermanentlyoccupiedresidentialdwellings,installationofbulkinfrastructure,andrehabilitation of electrification infrastructure

1,104,658 1,980,340 1,946,246 2,087,048 1,904,477 2,127,928 2,244,964

TOTALS 4,189,600 5,771,482 5,658,205 6,136,438 5,381,532 5,787,446 6,106,006


3. PUBLIC ENTITIESTheMinisterofEnergyisresponsibleforoverseeingfivestate-ownedentities(SOE’s)andtheirsubsidiaries,whichareeitherclassifiedasSchedule2oras3AinstitutionsaccordingtothePublicFinance

ManagementAct,1999(ActNo.1of1999):

• TheNationalNuclearRegulator(NNR);

• TheCentralEnergyFund(CEF)GroupofcompaniesunderCEF(Pty)Ltd;

• TheSouthAfricanNuclearEnergyCorporationSOCLimited(NECSA);

• TheNationalRadioactiveWasteDisposalInstitute(NRWDI);

• TheNationalEnergyRegulatorofSouthAfrica(NERSA);and

• TheSouthAfricanNationalEnergyDevelopmentInstitute(SANEDI).

TheenablinglegislationrequiresthattheMinisterofadepartmentappointsmembersoftheboardforallSOE’sreportingtohimorher.Boardsareultimatelyaccountableandresponsiblefortheperformance

oftheirrespectiveentities.TheygivestrategicdirectioninlinewiththeDepartment’sstrategywithintheirrespectivemandatesandimplementationisundertakenbymanagement.

Public entities’ mandate, outputs, annual budget and next evaluation date of the SOE’s.

Name of Public Entity Mandate Outputs Current Annual Budget 2018/19Date of Next Evaluation

NNR TheNNRisestablishedintermsoftheNationalNuclearRegulatorAct,1999(ActNo.47of1999)

TheactestablishestheregulatorasacompetentauthorityfornuclearregulationinSouthAfrica

ThepurposeoftheNNR,asoutlinedinSection5oftheNationalNuclearRegulatorAct,1999(ActNo.47of1999)istoessentiallyprovidefortheprotectionofpersons,property&theenvironmentagainst nuclear damage through the establishment of safety standards & regulatory practices

Refer to the NNR’s 2018/19 APP for details regarding the specific outputs planned by the NNR for the period

R16510million

TheNNRtotalbudgetedrevenuecomes from:fiscal grant allocation R21487million;&authorisationfeesR149255million

As needed

CEF Tofinance&promotetheacquisitionof,researchinto&exploitationofoil,gas&renewable/cleanenergy-relatedproducts& technology

Refer to the CEF’s 2018/19 APP for details regarding the specific outputs planned by the CEF for the period

R19,606billion(asper2017/18budgetprojections)

ThefollowingcompaniescontributetowardthetotalrevenuefortheCEFGroup:CEF(SOC)Ltd;AfricanExploration;PetroSA;&SFF

As needed


Name of Public Entity Mandate Outputs Current Annual Budget 2018/19Date of Next Evaluation

NECSA NECSAisestablishedintermsofSection3(1)oftheNuclearEnergyAct,1999(ActNo.46of1999)

Theactprovidesforthecommercialisationofnuclear&relatedproducts&services,&delegatesspecificresponsibilitiestothecorporation,includingtheimplementation&executionofnationalsafeguards & other international obligations

TheNuclearEnergyPolicyof2008reinforcedNECSA’smandaterelating to R&D & NFC responsibilities

RefertotheNECSA’s2018/19APPfordetails regarding the specific outputs plannedbyNECSAfortheperiod

R682,714billion

NECSA’stotalbudgetedrevenuecomes from: fiscal grant allocationR528,673million;budgetedsalesrevenueR1,711billion;&other incomeR140,034million

As needed

NRWDI NRWDIisaNuclearWasteDisposalInstituteestablishedintermsofSection3oftheNationalRadioactiveWasteDisposalInstituteAct,2008(ActNo.53of2008)

TheactprovidesfortheestablishmentofanNRWDIinordertomanageradioactivewastedisposalonanationalbasis&toprovideforitsfunctions&forhowitistobemanaged

RefertotheNRWDI’s2018/19APPfordetails regarding the specific outputs plannedbyNRWDIfortheperiod

R46,978million

ThetotalrevenueconsistsofgovernmentgrantofR45,532millionandinterestincomeofR1,416million

As needed

NERSA NERSAisaregulatoryauthorityestablishedasajuristicpersonintermsofSection3oftheNationalEnergyRegulatorAct,2004(ActNo.40of2004)

NERSA’smandateistoregulatetheelectricity,piped-gas&petroleum pipeline industries in terms of the Electricity Regulation Act,2006(ActNo.4of2006),MunicipalFinanceManagementAct,2003(ActNo.56of2003),theGasAct,2001(ActNo.48of2001)&thePetroleumPipelinesAct,2003(ActNo.60of2003)

RefertoNERSA’s2018/19APPfordetails regarding the specific outputs plannedbyNERSAfortheperiod

R343,509million

NERSA’stotalbudgetedrevenuecomes from: leviesof3regulatedindustriesR332,164millioninterestreceivedfrominvestments&otherincomeR11,345million

As needed

SANEDI SANEDIisanappliedenergyresearchinstituteestablishedintermsofSection7(1)oftheNationalEnergyAct,2008(ActNo.34of2008)

RefertoSANEDI’s2018/19APPfordetails regarding the specific outputs plannedbySANEDIfortheperiod

R70 241 million

SANEDI’stotalbudgetedrevenueis:grant allocation R64,861million(operationsR29,861million& carbonR35,000million);&otherincomeR23,200million

As needed

4. PUBLIC-PRIVATE PARTNERSHIPS Nopublic-privatepartnershipsexistbetweentheDepartmentandotherstakeholdersduetonopolicyshift.


Part D:Annexure

2018/19TechnicalIndicatorDescription

Noamendedtothe2015/2020

MTSFStrategicPlan


Acronym Description Acronym Description

20YRLFMP 20-YearLiquidFuelsMasterPlan GUMP GasUtilisationMasterPlan

Amb. Ambassador GTL Gas-to-liquid

APP Annual Performance Plan G&S GoodsandServices

ADAM Approach to Distribution Management GHG Greenhousegas

AG AttorneyGeneral GDP GrossDomesticProduct

BFP BasicFuelPrice Hon. Honourable

BEE BlackEconomicEmpowerment HR HumanResource

CEF Central Energy Fund IPP IndependentPowerProducer

CHIETA ChemicalIndustriesEducationandTrainingAuthority IPAP Industrial Policy Action Plan

CSP ConcentratedSolarPower IDP IntegratedDevelopmentPlan

DRC Democratic Republic of Congo IEC Integrated Energy Centre

DoE Department of Energy IEP Integrated Energy Plan

DPME DepartmentofMonitoringandEvaluation INEP Integrated National Electrification Programme

DDG DeputyDirector-General KPA Key Performance Area

DM Deputy Minister LNG Liquefiednaturalgas

DG Director-General LPG Liquefiedpetroleumgas

DoRA DivisionofRevenueActofSouthAfrica MANCO Management Committee

Eskom ElectricitySupplyCommission MPAT ManagementPerformanceAssessmentTool

EWSETA EnergyandWaterSectorEducationandTrainingAuthority MTEF Medium-TermExpenditureFramework

EE Energy Efficiency MTSF Medium-TermStrategicFramework

EEDSM EnergyEfficiencyandDemand-SideManagement MP Member of Parliament

EXCO ExecutiveCommittee MoA Memorandum of Agreement

FDI ForeignDirectInvestment NDP NationalDevelopmentPlan

FOSAD ForumofSouthAfricanDirectors NECSA SouthAfricanNuclearEnergyCorporationSOCLimited

FBAE FreeBasicAlternativeEnergy NER National Energy Regulator

FBE FreeBasicElectricity NERSA NationalEnergyRegulatorofSouthAfrica

ACRONYMS AND DESCRIPTIONS


Acronym Description Acronym Description

NGP NationalGrowthPath PFMA Public Finance Management Act

NIP National Infrastructure Plan PPP Public Participation Programme

NIEP National Integrated Electrification Programme REIPPP RenewableEnergyIndependentPowerProducerProgramme

NNEECC NationalNuclearEnergyExecutiveCoordinationCommittee RFP RequestforProposal

NNR National Nuclear Regulator SMME Small,mediumandmicroenterprise

NPP NuclearPowerPlant SEIAS Socio-EconomicImpactAssessment

NRWDI NationalRadioactiveWasteDisposalInstitute SANEDI SouthAfricanNationalEnergyDevelopmentInstitute

NSWHP NationalSolarWaterHeaterProgramme SOE State-ownedentity

NT NationalTreasury SFF StrategicFuelFund

NFC Nuclear Fuel Cycle SIP StrategicIntegratedProject

OECD OrganisationforEconomicCo-operationandDevelopment SO StrategicObjective

PetroSA PetroleumOilandGasCorporationofSouthAfricaSOCLimited TWh Terawatthour

PPA Petroleum Products Act WSP WorkplaceSkillsPlan

PICC Presidential Infrastructure Coordinating Commission

ACRONYMS AND DESCRIPTIONS


NOTES

Physical address:

Matimba House

192 Visagie Street

C/o Paul Kruger & Visagie Streets

Pretoria

Postal address:

Private Bag X96

Pretoria 0001

Telephone number: +27 12 406 8000/7300

Fax number: +27 12 323 5646

E-mail address: [email protected]

Website: www.energy.gov.za

RP:42/2018

ISBN:978-0-621-46098-8

annual performance plan - department of energy · 2018-04-03 · ii annual performance plan 2018/19...

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