NEWS Editor’s Note NERSA in 2017: Achievements and awards overshadowing challenges Organisational Performance Update NERSA performance in the last quarter of 2017 INSIDE OUT Energy Regulator Decisions Approving Eskom’s price increase application for the 2018/19 financial year Notice to Electricity Supply Industry Stakeholders NERSA notes licensing exemption and registration notice NERSA System Adequacy Monitoring the electricity supply-and-demand balance Conferences • Taking gas utilisation downstream: International Gas Cooperation Summit • Unlocking massive oil and gas resources: the Mozambique Gas Summit • Energy efficiency at work: Annual SAEEC Conference, 2017 • Technical solutions for a changing business model: AMEU Convention 2017 • NERSA at the AFUR Annual Events in Rwanda • South African Energy Indaba Public Workshops and Customer Education • Gas Workshop • Creating NERSA awareness: customer education workshops NERSA Clean Audit Award Recipient of the PFMA Clean Audit Award for the third consecutive year OUTSIDE IN Events • 16 Days of Activism: NERSA takes a against • violence, World Aids Day Calendar of Events Schedule of Energy Regulator and Subcommittee meetings for the period February – April 2018 Contents 1 2 3 4 4 6 13 15 16 19
Transcript
NEWS
Editor’s NoteNERSA in 2017: Achievements and awards overshadowing challenges
Organisational Performance UpdateNERSA performance in the last quarter of 2017
INSIDE OUT
Energy Regulator DecisionsApproving Eskom’s price increase application for the 2018/19 financial year
Notice to Electricity Supply Industry StakeholdersNERSA notes licensing exemption and registration notice
NERSA System AdequacyMonitoring the electricity supply-and-demand balance
Conferences• Taking gas utilisation downstream: International Gas Cooperation Summit• Unlocking massive oil and gas resources: the
Mozambique Gas Summit• Energy efficiency at work: Annual SAEEC Conference, 2017• Technical solutions for a changing business model: AMEU Convention 2017 • NERSA at the AFUR Annual Events in Rwanda• South African Energy Indaba
Public Workshops and Customer Education• Gas Workshop• Creating NERSA awareness: customer education workshops
NERSA Clean Audit AwardRecipient of the PFMA Clean Audit Award for the third consecutive year
OUTSIDE IN
Events• 16 Days of Activism: NERSA takes a against • violence, World Aids Day
Calendar of EventsSchedule of Energy Regulator and Subcommittee meetings for the period February – April 2018
Contents
1
2
3
4
4
6
13
15
16
19
Volume 13, No 4, January 20181
Welcome to this issue of the official NERSA Newsletter, reporting on matters from the last quarter of 2017. As usual, the Newsletter reports on topics and issues relevant to all stakeholders in the energy industry in general and in energy regulation in particular.
During the last quarter of 2017, NERSA furthered its reputation of competence and professionalism and maintained its high level of performance. This is clearly reflected by the Energy Regulator achieving 30 of its 32 planned targets (i.e. 94%). In this Newsletter, you can read more about the achievements and challenges in the regulation of the electricity, piped-gas and petroleum pipelines industries.
NERSA made a number of decisions relating to energy regulation, including the approval of Eskom’s allowable revenue of R190.348 bn for the 2018/19 financial year, resulting in an average percentage price increase of 5.23%.
NERSA sustained its strong presence at energy-related conferences on an African and international level and attended the International Gas Cooperation Summit in Durban from 9 to 11 October 2017, the Mozambique Gas Summit in Durban from 18 to 20 October 2017, the Association of Municipal Electricity Utilities (AMEU) Convention from 8 to 11 October 2017 and the AFUR Annual Events held in Rwanda from 20 to 24 November 2017.
The Energy Regulator initiated public and customer education workshops to create a strong awareness of NERSA
NERSA in 2017: Achievements, awards and challenges
and its contribution to South Africa’s economic growth. Apart from the Gas Workshop held on 19 October 2017 at NERSA’s offices in Pretoria and 13 customer education workshops conducted, NERSA successfully participated in four exhibitions. NERSA received an award for the Best Small Exhibition Stand for its exhibition at the Southern African Energy Efficiency Confederation (SAEEC) Conference held at Emperors Palace from 14 to15 November 2017.
NERSA’s commitment to its social responsibility and employee wellbeing was clearly demonstrated in its active involvement in the 16 Days of Activism for No Violence against Women and Children and World AIDS Day.
The groundwork laid during 2017 provides NERSA with a solid foundation on which to build its performance in the year to come. As usual, NERSA will face the targets and challenges of the coming year with commitment and enthusiasm.
Should you wish to share industry news or your opinions and views about the content of the NERSA newsletter with us, please use the following email address to get in touch: [email protected]
We look forward to hearing from you!
Best wishesCharles Hlebela
Unless you know the road you’ve come from, you cannot know where you are going.
Welcome to this issue of the official NERSA Newsletter, reporting on matters from the last quarter of 2017. As usual, the Newsletter reports on topics and issues relevant to all stakeholders in the energy industry in general and in energy regulation in particular.
During the last quarter of 2017, NERSA furthered its reputation of competence and professionalism and maintained its high level of performance. This is clearly reflected by the Energy Regulator achieving 30 of its 32 planned targets (i.e. 94%). In this Newsletter, you can read more about the achievements and challenges in the regulation of the electricity, piped-gas and petroleum pipelines industries.
NERSA made a number of decisions relating to energy regulation, including the approval of Eskom’s allowable revenue of R190.348 bn for the 2018/19 financial year, resulting in an average percentage price increase of 5.23%.
NERSA sustained its strong presence at energy-related conferences on an African and international level and attended the International Gas Cooperation Summit in Durban from 9 to 11 October 2017, the Mozambique Gas Summit in Durban from 18 to 20 October 2017, the Association of Municipal Electricity Utilities (AMEU) Convention from 8 to 11 October 2017 and the AFUR Annual Events held in Rwanda from 20 to 24 November 2017.
The Energy Regulator initiated public and customer education workshops to create a strong awareness of NERSA
NERSA in 2017: Achievements, awards and challenges
and its contribution to South Africa’s economic growth. Apart from the Gas Workshop held on 19 October 2017 at NERSA’s offices in Pretoria and 13 customer education workshops conducted, NERSA successfully participated in four exhibitions. NERSA received an award for the Best Small Exhibition Stand for its exhibition at the Southern African Energy Efficiency Confederation (SAEEC) Conference held at Emperors Palace from 14 to15 November 2017.
NERSA’s commitment to its social responsibility and employee wellbeing was clearly demonstrated in its active involvement in the 16 Days of Activism for No Violence against Women and Children and World AIDS Day.
The groundwork laid during 2017 provides NERSA with a solid foundation on which to build its performance in the year to come. As usual, NERSA will face the targets and challenges of the coming year with commitment and enthusiasm.
Should you wish to share industry news or your opinions and views about the content of the NERSA newsletter with us, please use the following email address to get in touch: [email protected]
We look forward to hearing from you!
Best wishesCharles Hlebela
Unless you know the road you’ve come from, you cannot know where you are going.
NERSA managed to achieve most of its planned targets, which include the approval of the licences for the Umfolozi Sugar Mill Ltd and Port Elizabeth Solar PV (Pty) Ltd, the consideration of ten Department of Energy (DoE) Small-Scale Renewable Energy Applications, closing 91% of received disputes or complaints within 180 days of receipt (against the original target of 80%) and the conclusion of its consideration of Eskom SOC Ltd’s revenue application for the 2018/19 financial year.
The greatest challenge that NERSA faced during the last quarter of 2017 involved the generation applications for the registration of Small-Scale Embedded Generation (SSEG), which was received after the Minister of Energy approved the Amendment of Schedule 2 of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) on 10 November 2017. However, NERSA was unable to process the applications, because the SSEG licensing rules are still in the process of being finalised.
The main challenge faced in Piped-Gas Industry Regulation involved the Republic of Mozambique Pipeline Company (ROMPCO), which requested a lengthy period of more than two months to comment on the planned amendment of its licence conditions in terms of Section 24(1)(a) of the Gas Act, 2001 (Act No. 28 of 2001). Such an exceptionally lengthy period will affect NERSA’s ability to complete the amendment within the standard period of 90 days allocated for the completion of amendment applications. However, this single challenge is dwarfed by the following achievements in the regulation of the Piped-Gas Industry during this quarter.
NERSA managed to process several applications, perform two investigations and conduct a total of 15 inspections. NERSA approved four maximum price applications, four licence applications, two licence amendment applications, three applications for the revocation of licences and one application for the registration for gas productions. NERSA also received and considered four applications for trading margins, two of which were approved. Two investigations were initiated and completed on gas supply interruptions, which occurred at Sasol Gas’ facilities in Meyerton and Nigel in the Gauteng Province. A total of 15 inspections were conducted on
licensed gas facilities to check for compliance with licence conditions. Two notices of non-compliance were issued. It is noteworthy that both the investigations of gas supply interruptions were completed within less than 12 months, as planned.
In the Petroleum Pipelines Industry Regulation, one challenge was related to concerns raised by the DoE about the Energy Regulator’s Bulk Storage Determination decision. Engagements with the DoE are in progress to resolve the matter.
In spite of the bulk storage challenge, there were several achievements in the regulation of the Petroleum Pipelines Industry during this quarter. These achievements include the approval that the Transnet SOC (Ltd) Petroleum Pipelines System Tariff Application for the 2018/19 and 2019/20 Tariff Year Discussion Document be published for public consultation. NERSA also approved the following: • thepublicationofthePrudencyAssessment Criteria Discussion Document for public consultation;• theamendmentofthelicenceconditions issued to BPSA and Sasol jointly to operate the Alrode storage facility;• theamendmentofalicencetoChevronSAfor the operation of its Kroonstad storage facility; and • thetariffsforBurganCapeTerminalsforits pipeline, storage and loading facilities for the period of 1 January 2017 to 31 December 2019.
The Energy Regulator also submitted comments to the Competition Commission on the South African Petroleum Industry Association’s (SAPIA’s) request for exemption in terms of Section 10 (6) (2) of the Competition Act. The Energy Regulator noted the report on the analysis of volume reports to identify potential facilities with uncommitted capacity for third-party access to petroleum storage and the analysis of the contracts submitted by the licensees regarding access to petroleum storage.
Transversal achievements included the approval of a Paper on Regulatory challenges associated with cross-border energy infrastructure. The main organisational achievement was the Human Resource and Remuneration Committee (HRRC) considering a report on the progress made with the Employment Equity (EE) Status against the current EE plan, as well as presentation of the draft amended EE plan to the HRRC.
NERSA achieving 30 of its 32 planned targets (94%)
NERSA Organisational Performance UpdateNERSA Performance in the last quarter 2017
Volume 13, No 4, January 2018
Approving 5.23% price increase for EskomAt its meeting of Friday, 15 December 2017, NERSA approved Eskom’s allowable revenue of R190.348 bn for the 2018/19 financial year (1 April 2018 – 31 March 2019), which will result in an average percentage price increase of 5.23%. NERSA based its decision on a thorough assessment of the application and the comments and views received from stakeholders during the public participation process, including the public hearings that were held in eight provinces, from 30 October to 22 November 2017.
Eskom applied for a total allowable revenue of R219.514 bn, which translates to an average percentage price increase of 19.9%, with the application consisting of the following eight broad categories of qualifying expenditure: return on assets (ROA), operating expenditure (OPEX), primary energy (PE), independent power producers (IPPs), depreciation, integrated demand management (IDM), research and development (R&D) and levies and taxes. However, the application is forward-looking and did not include the Regulatory Clearing Accounts (RCAs). NERSA will consider Eskom’s RCA applications (2014/15, 2015/16 and 2016/17) separately, following due regulatory process.
The Energy Regulator further decided that the allowed revenues must be recovered from Eskom’s standard and non-standard tariff customers [negotiated pricing agreement (NPAs) and international customers], based on the previously approved tariff principles and structures and by using the Eskom Retail Tariff Structural Adjustment (ERTSA) methodology, as approved by NERSA.
The summary of the allowed revenue, standard prices and percentage price increase for 2018/19 is detailed in the following table.
Allowed revenue, standard prices and percentage price increase: 2018/19
Based on its appreciation for and encouragement of stakeholder participation in its decision-making, the Energy Regulator followed due regulatory processes in its consideration of Eskom’s revenue application for 2018/19. On 13 September 2017, Eskom’s application was published on NERSA’s website, along with an invitation to stakeholders to submit written comments. A total of 23,000 written comments were received from stakeholders, consisting of comments from private individuals, small users, intensive energy users, non-government organisations (NGOs) and environmental activists, as well as local government and other stakeholders.
Application 2018/19
Adjustment Decision2018/19
Total expected revenues from all customers (R’m) 219 514 29 166 190 348
NPAs and International customers (R’m) 13 308 630 13 938
Revenues from tariffs based sales (R’m) 206 206 29 797 176 409
NERSA media briefing on annoucement of Energy Regulator decision on Eskom Revenue application 2018-19
Volume 13, No 4, January 2018 4
Notice to electricity supply Industry Stakeholders
Notice
Noting the gazetting of the Licensing Exemption and Registration Notice
On 19 December 2017, NERSA announced that it had noted the gazetting of the Licensing Exemption and Registration Notice, published in the Government Gazette (No. 41237 of 10 November 2017, Vol. 629, Notice 1231) by the Department of Energy.
NERSA is in the process of finalising the draft small-scale embedded generation (SSEG) rules, which were drafted in 2015, but put on hold until the publication of the Licensing Exemption and Registration Notice. NERSA will issue the draft rules for public comments as soon as its internal governance processes have been finalised. The draft rules would only apply to SSEGs with an installed capacity of no more than 1 MW connected to the national grid, as referred to in Sections 2.1 and 2.2 of the Notice. The SSEG rules will mainly focus on the registration and connection process, tariff structures and reporting requirements.
NERSA will also start the process of developing regulatory rules for the registration of all other categories of facilities referred to in the Notice in due course. The regulatory rules for small-scale SSEG will be published after stakeholders have been consulted and NERSA has made its final
decision. Applications for the registration of SSEGs will only be considered after the publication of the rules.
NERSA System Adequacy
Monitoring the electricity supply–demand balanceIn terms of the objects of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) (‘the Act’), the Energy Regulator should monitor the supply–demand balance of the electricity system to achieve the efficient, effective, sustainable and orderly development and operation of the electricity supply infrastructure in South Arica.
On 31 December 2017, the growth in energy sent out was 7.20%, compared to -8.231% in 2016. The peak demand was 35,301 MW, compared to 34,177 MW in 2016. The peak demand growth on 31 December 2017 was -1.37%, whereas a peak demand growth of -6.40% was reported for 2016.
The Act also requires the Energy Regulator to establish and manage information and monitoring systems, in order to establish and maintain regular and transparent communication with all its stakeholders. The following tables outline the power supply and demand in South Africa, the system performance (2013–2017) and the historic and medium-term capacity outlook, as communicated to stakeholders in the latest NERSA System Adequacy Outlook (31 December 2017).
Volume 13, No 4, January 2018
Approving 5.23% price increase for EskomAt its meeting of Friday, 15 December 2017, NERSA approved Eskom’s allowable revenue of R190.348 bn for the 2018/19 financial year (1 April 2018 – 31 March 2019), which will result in an average percentage price increase of 5.23%. NERSA based its decision on a thorough assessment of the application and the comments and views received from stakeholders during the public participation process, including the public hearings that were held in eight provinces, from 30 October to 22 November 2017.
Eskom applied for a total allowable revenue of R219.514 bn, which translates to an average percentage price increase of 19.9%, with the application consisting of the following eight broad categories of qualifying expenditure: return on assets (ROA), operating expenditure (OPEX), primary energy (PE), independent power producers (IPPs), depreciation, integrated demand management (IDM), research and development (R&D) and levies and taxes. However, the application is forward-looking and did not include the Regulatory Clearing Accounts (RCAs). NERSA will consider Eskom’s RCA applications (2014/15, 2015/16 and 2016/17) separately, following due regulatory process.
The Energy Regulator further decided that the allowed revenues must be recovered from Eskom’s standard and non-standard tariff customers [negotiated pricing agreement (NPAs) and international customers], based on the previously approved tariff principles and structures and by using the Eskom Retail Tariff Structural Adjustment (ERTSA) methodology, as approved by NERSA.
The summary of the allowed revenue, standard prices and percentage price increase for 2018/19 is detailed in the following table.
Allowed revenue, standard prices and percentage price increase: 2018/19
Based on its appreciation for and encouragement of stakeholder participation in its decision-making, the Energy Regulator followed due regulatory processes in its consideration of Eskom’s revenue application for 2018/19. On 13 September 2017, Eskom’s application was published on NERSA’s website, along with an invitation to stakeholders to submit written comments. A total of 23,000 written comments were received from stakeholders, consisting of comments from private individuals, small users, intensive energy users, non-government organisations (NGOs) and environmental activists, as well as local government and other stakeholders.
Application 2018/19
Adjustment Decision2018/19
Total expected revenues from all customers (R’m) 219 514 29 166 190 348
NPAs and International customers (R’m) 13 308 630 13 938
Revenues from tariffs based sales (R’m) 206 206 29 797 176 409
NERSA media briefing on annoucement of Energy Regulator decision on Eskom Revenue application 2018-19
Volume 13, No 4, January 2018 4
Notice to electricity supply Industry Stakeholders
Notice
Noting the gazetting of the Licensing Exemption and Registration Notice
On 19 December 2017, NERSA announced that it had noted the gazetting of the Licensing Exemption and Registration Notice, published in the Government Gazette (No. 41237 of 10 November 2017, Vol. 629, Notice 1231) by the Department of Energy.
NERSA is in the process of finalising the draft small-scale embedded generation (SSEG) rules, which were drafted in 2015, but put on hold until the publication of the Licensing Exemption and Registration Notice. NERSA will issue the draft rules for public comments as soon as its internal governance processes have been finalised. The draft rules would only apply to SSEGs with an installed capacity of no more than 1 MW connected to the national grid, as referred to in Sections 2.1 and 2.2 of the Notice. The SSEG rules will mainly focus on the registration and connection process, tariff structures and reporting requirements.
NERSA will also start the process of developing regulatory rules for the registration of all other categories of facilities referred to in the Notice in due course. The regulatory rules for small-scale SSEG will be published after stakeholders have been consulted and NERSA has made its final
decision. Applications for the registration of SSEGs will only be considered after the publication of the rules.
NERSA System Adequacy
Monitoring the electricity supply–demand balanceIn terms of the objects of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) (‘the Act’), the Energy Regulator should monitor the supply–demand balance of the electricity system to achieve the efficient, effective, sustainable and orderly development and operation of the electricity supply infrastructure in South Arica.
On 31 December 2017, the growth in energy sent out was 7.20%, compared to -8.231% in 2016. The peak demand was 35,301 MW, compared to 34,177 MW in 2016. The peak demand growth on 31 December 2017 was -1.37%, whereas a peak demand growth of -6.40% was reported for 2016.
The Act also requires the Energy Regulator to establish and manage information and monitoring systems, in order to establish and maintain regular and transparent communication with all its stakeholders. The following tables outline the power supply and demand in South Africa, the system performance (2013–2017) and the historic and medium-term capacity outlook, as communicated to stakeholders in the latest NERSA System Adequacy Outlook (31 December 2017).
* MTSAO Moderate Demand Growth ****MTSAO DSM Projections**Cumulative capacity as included in IRP 2015 ***Coal fired up IPP***Coal fired up IPP ****MTSAO DSM Projections
Volume 13, No 4, January 2018
Conferences
Taking gas utilisation downstream:International Gas Cooperation Summit
NERSA was represented at the International Gas Cooperation Summit– held in Durban from 9 to 11 October 2017 – by their Regulator Memberprimarily responsible for the regulation of the Piped-Gas industry, Ms Nomfundo Maseti.
The Summit, which was hosted by EnergyNet, took the dialogue of the 2016 meeting one step further, focusing on exploring
gas utilisation across the downstream sectors and the positive impact of the South African gas economy on the South African
Development Community (SADC) region as a whole. International Gas Cooperation Summit (IGCS) addressed the most recent
updates from the Independent Power Producer (IPP) office with regard to the Gas-to-Power Programme, using Singapore as a
case study of a country that has stimulated its economy through its successful gas model.
NERSA Regulator Member primarily responsible for Piped Gas,
Ms Nomfundo Maseti, taking part in panel discussions
NERSA Regulator Member primarily responsible for Piped Gas,
Ms Nomfundo Maseti, giving inputs during the panel discussions
Mr Samuel Gotora (NERSA) Ms Nomfundo Maseti- Regulator member for Piped - gas and Mr Letsatsi Melato (NERSA) during the International Gas Co-operation Sum-mit taking place in Durban
From left : Ms M Nkomo – NERSA Deputy Chairperson,Ms N Maseti – Regulator Member for Piped –Gasand a delegate during the International Gas Co-operation Summit taking place in Durban
* MTSAO Moderate Demand Growth ****MTSAO DSM Projections**Cumulative capacity as included in IRP 2015 ***Coal fired up IPP***Coal fired up IPP ****MTSAO DSM Projections
Volume 13, No 4, January 2018
Conferences
Taking gas utilisation downstream:International Gas Cooperation Summit
NERSA was represented at the International Gas Cooperation Summit– held in Durban from 9 to 11 October 2017 – by their Regulator Memberprimarily responsible for the regulation of the Piped-Gas industry, Ms Nomfundo Maseti.
The Summit, which was hosted by EnergyNet, took the dialogue of the 2016 meeting one step further, focusing on exploring
gas utilisation across the downstream sectors and the positive impact of the South African gas economy on the South African
Development Community (SADC) region as a whole. International Gas Cooperation Summit (IGCS) addressed the most recent
updates from the Independent Power Producer (IPP) office with regard to the Gas-to-Power Programme, using Singapore as a
case study of a country that has stimulated its economy through its successful gas model.
NERSA Regulator Member primarily responsible for Piped Gas,
Ms Nomfundo Maseti, taking part in panel discussions
NERSA Regulator Member primarily responsible for Piped Gas,
Ms Nomfundo Maseti, giving inputs during the panel discussions
Mr Samuel Gotora (NERSA) Ms Nomfundo Maseti- Regulator member for Piped - gas and Mr Letsatsi Melato (NERSA) during the International Gas Co-operation Sum-mit taking place in Durban
From left : Ms M Nkomo – NERSA Deputy Chairperson,Ms N Maseti – Regulator Member for Piped –Gasand a delegate during the International Gas Co-operation Summit taking place in Durban
6
Volume 13, No 4, January 2018
Unlocking massive oil and gas resources: the Mozambique Gas Summit
NERSA participated in the Mozambique Gas Summit, which was held from 18 to 20 October 2017 at the Joaquim Chissano International Conference Centre in Maputo, Mozambique. South African gas traders were represented by Sasol Gas, Spring Light Gas, Virtual Gas Network (VGN) and the Republic of Mozambique Pipeline Company (ROMPCO).
NERSA Regulator Member Ms Nomfundo Maseti with HighCommissioner of SA in Mozambique. HE Mandisi Mphalwa and his Senior Advisor Mr Matome Kgowedi
NERSA Regulator Member Ms Nomfundo Maseti.Mozambique Gas Summit
7
The audience consisted of international investors, private companies and licensees from various countries. The event provided investors with the opportunity to interact with government and regulatory bodies to discuss challenges and solutions that could unlock the massive oil and gas resources discovered in Mozambique and the way in which these resources could diversify the Mozambican economy, as well as challenges of infrastructure, human capital and access to capital to develop infrastructure.
NERSA was represented by its Full-Time Regulator Member responsible for Piped-Gas, Ms Nomfundo Maseti, who addressed delegates on cross-border regulatory issues and their importance in future cross-border gas projects. Ms Maseti outlined key regulatory challenges as well as measures that investors and governments need to consider at the conception of the cross-border gas infrastructure projects in Mozambique. Ms Maseti received welcome support from the High Commissioner of South Africa in Mozambique, His Excellency Mr Mandisi Mpahlwa, and his Senior Advisor, Mr Matome Kgowedi.
Conferences
Volume 13, No 4, January 2018 8
Conferences
Energy efficiency at work: Annual SAEEC Conference, 2017
The continuous drive of the Southern African Energy Efficiency Confederation (SAEEC) for information dissemination, awareness creation and linking stakeholders is strongly reflected in its flagship event – the Annual SAEEC Conference. Apart from the energy management sector, the Annual SAEEC Conference also serves industries such as environmental management, energy engineering, co-generation, power generation and efficiency improvement. On 14 and 15 November 2017, NERSA participated as an exhibitor at the 12th SAEEC Annual Conference in Kempton Park, Gauteng.
NERSA also exhibited at the 12th Southern African Energy Efficiency Confederation (SAEEC) Conference held in Kempton Park from 14 to 15 November 2017. NERSA’s commitment to positively profiling the organisation’s image was recognised as NERSA received the Award for
the Best Small Exhibition Stand. The SAEEC Conference, which focused on the theme ‘Energy efficiency for sustainable growth’, was an important energy event of national scope for stakeholders and role players in the energy field. It provided a platform for effective networking and creating awareness of how all the economic and market forces, new technologies, regulatory developments and industry trends merge to shape the critical decisions on organisations’ energy and economic future.
The energy sector, which has the potential to make or break the efforts of achieving the world’s climate goal, should be at the core of global climate change action. Regarding energy as one of the essential drivers of socio-economic development, green technologies and a safe environment, the SAEEC focuses strongly on energy efficiency. The theme of the 12th SAEEC Annual Conference – Energy efficiency for Sustainable Growth – aligned with these SAEEC focus areas.
The conference was attended by a variety of energy end-users in the industrial, mining, construction and commercial sectors, as well as consultants and service providers, product suppliers and independent professionals in the energy sector. Stakeholders in the legislative standardisation and governmental sector, educational institutions and government institutions were also present. A plenary session with guest speakers from the United Nations Industrial Development Organization
Volume 13, No 4, January 2018
Unlocking massive oil and gas resources: the Mozambique Gas Summit
NERSA participated in the Mozambique Gas Summit, which was held from 18 to 20 October 2017 at the Joaquim Chissano International Conference Centre in Maputo, Mozambique. South African gas traders were represented by Sasol Gas, Spring Light Gas, Virtual Gas Network (VGN) and the Republic of Mozambique Pipeline Company (ROMPCO).
NERSA Regulator Member Ms Nomfundo Maseti with HighCommissioner of SA in Mozambique. HE Mandisi Mphalwa and his Senior Advisor Mr Matome Kgowedi
NERSA Regulator Member Ms Nomfundo Maseti.Mozambique Gas Summit
7
The audience consisted of international investors, private companies and licensees from various countries. The event provided investors with the opportunity to interact with government and regulatory bodies to discuss challenges and solutions that could unlock the massive oil and gas resources discovered in Mozambique and the way in which these resources could diversify the Mozambican economy, as well as challenges of infrastructure, human capital and access to capital to develop infrastructure.
NERSA was represented by its Full-Time Regulator Member responsible for Piped-Gas, Ms Nomfundo Maseti, who addressed delegates on cross-border regulatory issues and their importance in future cross-border gas projects. Ms Maseti outlined key regulatory challenges as well as measures that investors and governments need to consider at the conception of the cross-border gas infrastructure projects in Mozambique. Ms Maseti received welcome support from the High Commissioner of South Africa in Mozambique, His Excellency Mr Mandisi Mpahlwa, and his Senior Advisor, Mr Matome Kgowedi.
Conferences
Volume 13, No 4, January 2018 8
Conferences
Energy efficiency at work: Annual SAEEC Conference, 2017
The continuous drive of the Southern African Energy Efficiency Confederation (SAEEC) for information dissemination, awareness creation and linking stakeholders is strongly reflected in its flagship event – the Annual SAEEC Conference. Apart from the energy management sector, the Annual SAEEC Conference also serves industries such as environmental management, energy engineering, co-generation, power generation and efficiency improvement. On 14 and 15 November 2017, NERSA participated as an exhibitor at the 12th SAEEC Annual Conference in Kempton Park, Gauteng.
NERSA also exhibited at the 12th Southern African Energy Efficiency Confederation (SAEEC) Conference held in Kempton Park from 14 to 15 November 2017. NERSA’s commitment to positively profiling the organisation’s image was recognised as NERSA received the Award for
the Best Small Exhibition Stand. The SAEEC Conference, which focused on the theme ‘Energy efficiency for sustainable growth’, was an important energy event of national scope for stakeholders and role players in the energy field. It provided a platform for effective networking and creating awareness of how all the economic and market forces, new technologies, regulatory developments and industry trends merge to shape the critical decisions on organisations’ energy and economic future.
The energy sector, which has the potential to make or break the efforts of achieving the world’s climate goal, should be at the core of global climate change action. Regarding energy as one of the essential drivers of socio-economic development, green technologies and a safe environment, the SAEEC focuses strongly on energy efficiency. The theme of the 12th SAEEC Annual Conference – Energy efficiency for Sustainable Growth – aligned with these SAEEC focus areas.
The conference was attended by a variety of energy end-users in the industrial, mining, construction and commercial sectors, as well as consultants and service providers, product suppliers and independent professionals in the energy sector. Stakeholders in the legislative standardisation and governmental sector, educational institutions and government institutions were also present. A plenary session with guest speakers from the United Nations Industrial Development Organization
Volume 13, No 4, January 2018
Technical solutions for a changing business model: the AMEU Convention 2017
9
Several NERSA staff members attended the Convention, which was hosted by the Nelson Mandela Bay Municipality, from 8 to 11 October 2017 at the Boardwalk Convention Centre in Port Elizabeth. The theme of the Convention was ‘Technical solutions for our changing business model’. The keynote address was delivered by the Minister of Cooperative Government & Traditional Affairs Mr David van Rooyen.
NERSA’s Full-Time Regulator Member for Electricity, Mr Mbulelo Ncetezo, also delivered an address. Various presentations were made and numerous discussions took place, including a round table on ‘Achieving Gender Equality’ organised by the AMEU’s Women in Energy (WiE) group. Other matters that were discussed included the impact of Small-Scale Embedded Generation and other technology disrupters on the industry, business sustainability and related challenges, as well as safety and health issues.
Conferences
NERSA participated as an exhibitor at the 66th Convention of the Association of Municipal Electricity Utilities (AMEU).
(UNIDO), the Department of Science and Technology (DST), the National Cleaner Production Centre (NCPC) and the Federal Ministry for Economic Affairs and Energy in Germany set the tone of the 2017 SAEEC Conference.
In line with the central theme, and looking towards the future, the conference programme focused on the following topics: trends and innovation in transportation and mobility; climate change; energy management; financing sustainable energy projects; ESCo market development in SA; mining and industrial energy efficiency; energy efficiency building envelope; and renewable and alternative energy.
Volume 13, No 4, January 2018
Accelerating Sustainable Utility Services in Africa: NERSA at the AFUR Annual Conference and AGA in Rwanda
NERSA attended the 14th AFUR Conference and Annual General Assembly (AGA) in Kigali, Rwanda from 20 to 24 November 2017, with the theme Regulatory Actions for Accelerating Sustainable Utility Services in Africa. The annual Conference and AGA were hosted by the Rwanda Utility Regulatory Authority (RURA), with the support of the African Development Bank.
NERSA is a founding member of the African Forum for Utility Regulators (AFUR) and has contributed effectively to the activities of the forum, which was established in the spirit of regional harmonisation and information-sharing on regulatory issues. The AFUR Annual Conference sets a framework for debate on how regulatory policy and actions can contribute to meeting public policy challenges. It also encourages creative and alternative thinking about the relevance of energy and utility regulation in support of growth, the promotion of sustainable development and social welfare.
The Minister of Infrastructure, Honourable Mr James Musoni, delivered the welcome address to the Annual Conference, in which he pointed out the role and challenges of energy regulators, including:•theimportanceofutilityregulationinensuringtheavailabilityand accessibility, affordability and sustainability of utility services;•theimportanceofregulatorsbalancingtheinterestsoflicencedservice providers and consumers; and•theneedforcollaborationatregionallevel.
The following papers were presented by representatives from various institutions in the energy regulation sector:•‘Smart’gridtechnologiesandgreenerenergysources;•Planningacountry’senergyinfrastructure:emergingdebatesfromSouth Africa and the implication for regulators;•Rationalapproachtotariffdesignforlong-termfinancialandtechnical sustainability of the electricity sector;•ConditionstostrengthenAfricanregionalpowerpools;•Promotingasustainableelectricitysupplyindustry:ERA’sjourney;and•ElectricityRegulatoryIndexforAfrica.
NERSA is proud to report that two of its representatives, Ms Nomfundo Maseti and Dr Patrick Mabuza, presented papers at the 14th Annual AFUR Conference. Ms Maseti presented the following paper: (An evaluation of the challenges faced in regulating cross-border assets: a case study of the South African experience.) In her paper, she addressed the way in which regulators in South Africa apply pricing principles to promote the sustainability of utilities in the electricity and natural gas industries.
Dr Mabuza delivered a paper entitled: (The potential trade-offs between the user-pay principles and the developmental state.) The paper presented arguments for and against the role of the user-pay principle in the development state and in the sustainability of regulated utilities in the South African context.
On 23 November 2017, the Annual General Assembly agreed that that the theme of the 2018 Annual Conference should be: Innovation and Affordability of Services for Rural Areas.
NERSA Full- Time Regulator Member- Ms Nomfundo
Maseti presenting on the importance of regional
cooperation at the AFUR conference
Signing of the MoU between African Forum for
Utility Regulators and African Electrotechnical
Standardization Commission, which is aimed
at ensuring the standardizing of the technical
standards within the electricity industry, in
realization of universal access to mordant energy.
From left Ms Zethu Kapika (NERSA), Mr Mzingisi
Gumana (First Secretary:Political-Rwanda),
Ms Nomfundo Maseti (NERSA), Mr George Twala
(South African High Commissioner), Ms Fiona
Harrison (NERSA) & Ms Nomalanga Sithole (NERSA) in
Kigali, Rwanda
10
Conferences
Volume 13, No 4, January 2018
Technical solutions for a changing business model: the AMEU Convention 2017
9
Several NERSA staff members attended the Convention, which was hosted by the Nelson Mandela Bay Municipality, from 8 to 11 October 2017 at the Boardwalk Convention Centre in Port Elizabeth. The theme of the Convention was ‘Technical solutions for our changing business model’. The keynote address was delivered by the Minister of Cooperative Government & Traditional Affairs Mr David van Rooyen.
NERSA’s Full-Time Regulator Member for Electricity, Mr Mbulelo Ncetezo, also delivered an address. Various presentations were made and numerous discussions took place, including a round table on ‘Achieving Gender Equality’ organised by the AMEU’s Women in Energy (WiE) group. Other matters that were discussed included the impact of Small-Scale Embedded Generation and other technology disrupters on the industry, business sustainability and related challenges, as well as safety and health issues.
Conferences
NERSA participated as an exhibitor at the 66th Convention of the Association of Municipal Electricity Utilities (AMEU).
(UNIDO), the Department of Science and Technology (DST), the National Cleaner Production Centre (NCPC) and the Federal Ministry for Economic Affairs and Energy in Germany set the tone of the 2017 SAEEC Conference.
In line with the central theme, and looking towards the future, the conference programme focused on the following topics: trends and innovation in transportation and mobility; climate change; energy management; financing sustainable energy projects; ESCo market development in SA; mining and industrial energy efficiency; energy efficiency building envelope; and renewable and alternative energy.
Volume 13, No 4, January 2018
Accelerating Sustainable Utility Services in Africa: NERSA at the AFUR Annual Conference and AGA in Rwanda
NERSA attended the 14th AFUR Conference and Annual General Assembly (AGA) in Kigali, Rwanda from 20 to 24 November 2017, with the theme Regulatory Actions for Accelerating Sustainable Utility Services in Africa. The annual Conference and AGA were hosted by the Rwanda Utility Regulatory Authority (RURA), with the support of the African Development Bank.
NERSA is a founding member of the African Forum for Utility Regulators (AFUR) and has contributed effectively to the activities of the forum, which was established in the spirit of regional harmonisation and information-sharing on regulatory issues. The AFUR Annual Conference sets a framework for debate on how regulatory policy and actions can contribute to meeting public policy challenges. It also encourages creative and alternative thinking about the relevance of energy and utility regulation in support of growth, the promotion of sustainable development and social welfare.
The Minister of Infrastructure, Honourable Mr James Musoni, delivered the welcome address to the Annual Conference, in which he pointed out the role and challenges of energy regulators, including:•theimportanceofutilityregulationinensuringtheavailabilityand accessibility, affordability and sustainability of utility services;•theimportanceofregulatorsbalancingtheinterestsoflicencedservice providers and consumers; and•theneedforcollaborationatregionallevel.
The following papers were presented by representatives from various institutions in the energy regulation sector:•‘Smart’gridtechnologiesandgreenerenergysources;•Planningacountry’senergyinfrastructure:emergingdebatesfromSouth Africa and the implication for regulators;•Rationalapproachtotariffdesignforlong-termfinancialandtechnical sustainability of the electricity sector;•ConditionstostrengthenAfricanregionalpowerpools;•Promotingasustainableelectricitysupplyindustry:ERA’sjourney;and•ElectricityRegulatoryIndexforAfrica.
NERSA is proud to report that two of its representatives, Ms Nomfundo Maseti and Dr Patrick Mabuza, presented papers at the 14th Annual AFUR Conference. Ms Maseti presented the following paper: (An evaluation of the challenges faced in regulating cross-border assets: a case study of the South African experience.) In her paper, she addressed the way in which regulators in South Africa apply pricing principles to promote the sustainability of utilities in the electricity and natural gas industries.
Dr Mabuza delivered a paper entitled: (The potential trade-offs between the user-pay principles and the developmental state.) The paper presented arguments for and against the role of the user-pay principle in the development state and in the sustainability of regulated utilities in the South African context.
On 23 November 2017, the Annual General Assembly agreed that that the theme of the 2018 Annual Conference should be: Innovation and Affordability of Services for Rural Areas.
NERSA Full- Time Regulator Member- Ms Nomfundo
Maseti presenting on the importance of regional
cooperation at the AFUR conference
Signing of the MoU between African Forum for
Utility Regulators and African Electrotechnical
Standardization Commission, which is aimed
at ensuring the standardizing of the technical
standards within the electricity industry, in
realization of universal access to mordant energy.
From left Ms Zethu Kapika (NERSA), Mr Mzingisi
Gumana (First Secretary:Political-Rwanda),
Ms Nomfundo Maseti (NERSA), Mr George Twala
(South African High Commissioner), Ms Fiona
Harrison (NERSA) & Ms Nomalanga Sithole (NERSA) in
Kigali, Rwanda
10
Conferences
Volume 13, No 4, January 2018
The purpose of the Energy Indaba was to stimulate a national conversation for South Africans to find solutions in moving
towards a sustainable energy sector. The Energy Indaba engaged and debated with stakeholders on how they access
opportunities in the Energy Sector, as well as how they discuss the challenges, and come up with solutions that promote
inclusivity and transformation of the sector.
The Energy Indaba was used as a platform for government, private sector and civil society leaders to jointly address the energy master plan of government and the associated policies and legislations governing the energy sector. The hosting of the Energy Indaba was an opportunity to profile the positive developments in the energy space to governments and financial institutions. The Indaba was attended by delegates from the Energy Intensive Users Group (EIUG), political parties, Non-Governmental Organisations (NGOs), State-owned entities (SOEs), private companies, academics, media and the public.
The event was opened by Deputy Minister of Energy, Ambassador Thembisile Majola. In her welcome remarks, Ambassador Majola, pointed out that the South African Energy Indaba ‘is a platform created by the Minister of Energy, David Mahlobo, to enable discussions, debates and sharing of ideas and information, so we can all contribute to the energy discourse of the country and shape the trajectory for the sector’. This was followed by remarks and the introduction of the President by the Minister of Energy, Mr David Mahlobo.
The highlight of the Indaba was the keynote address, which was delivered by His Excellency, President Jacob Zuma, where he emphasised that the energy sector is an important engine of growth, which makes the Indaba quite opportune as South Africa continues to search for ways of re-igniting growth.
Conferences
The Department of Energy (DoE), in conjunction with the Central Energy Fund (CEF), hosted the South African Energy Indaba, which was held on 7 and 8 December 2017 at the Gallagher Estate Convention Centre in Midrand, under the theme ‘Positioning the energy sector to maximise contribution to economic growth, development and transformation’.
SOUTH AFRICAN ENERGY INDABA
11 Volume 13, No 4, January 2018
In his closing remarks, the Minister identified the main energy challenges, which include meeting the rapidly rising demand for energy, particularly in developing countries, the need to increase energy supply in a globally carbon-constrained environment and ensuring security of supply and affordability of energy for all. The main threats to energy security include depleting energy resources, geopolitical instability, inadequate infrastructure and diminishing natural resources. In order to overcome these challenges, Mr Mahlobo recommended an integrated and coordinated approach to energy planning and coherent policy making.
Mr Mahlobo was of the opinion that the future South African energy mix may be quite different from that of the past, mainly because of climate change, as well as global developments in renewable energy and nuclear energy technologies and other, cleaner alternatives to traditional coal power stations.
Like other countries, the social, economic and fiscal context of South Africa leaves the country no choice but to leverage private sector financing and investment to meet energy infrastructure investment needs. Mr Mahlobo made it clear that South Africa needs to industrialise its economy in order to take advantage of both its renewable and non-renewable resources. Mr Mahlobo left the Energy Indaba with the following challenge: ‘Now that we have looked at the issues, it’s time to walk the talk. It is in our hands to change our economic fortunes and we dare not fail’.
12
NERSA CEO Mr Chris Forlee and Deputy Minister of
Energy Ambassador Thembekile Majola at the
Energy Indaba
NERSA staff interacting with stakeholders during the
Energy Indaba
Volume 13, No 4, January 2018
The purpose of the Energy Indaba was to stimulate a national conversation for South Africans to find solutions in moving
towards a sustainable energy sector. The Energy Indaba engaged and debated with stakeholders on how they access
opportunities in the Energy Sector, as well as how they discuss the challenges, and come up with solutions that promote
inclusivity and transformation of the sector.
The Energy Indaba was used as a platform for government, private sector and civil society leaders to jointly address the energy master plan of government and the associated policies and legislations governing the energy sector. The hosting of the Energy Indaba was an opportunity to profile the positive developments in the energy space to governments and financial institutions. The Indaba was attended by delegates from the Energy Intensive Users Group (EIUG), political parties, Non-Governmental Organisations (NGOs), State-owned entities (SOEs), private companies, academics, media and the public.
The event was opened by Deputy Minister of Energy, Ambassador Thembisile Majola. In her welcome remarks, Ambassador Majola, pointed out that the South African Energy Indaba ‘is a platform created by the Minister of Energy, David Mahlobo, to enable discussions, debates and sharing of ideas and information, so we can all contribute to the energy discourse of the country and shape the trajectory for the sector’. This was followed by remarks and the introduction of the President by the Minister of Energy, Mr David Mahlobo.
The highlight of the Indaba was the keynote address, which was delivered by His Excellency, President Jacob Zuma, where he emphasised that the energy sector is an important engine of growth, which makes the Indaba quite opportune as South Africa continues to search for ways of re-igniting growth.
Conferences
The Department of Energy (DoE), in conjunction with the Central Energy Fund (CEF), hosted the South African Energy Indaba, which was held on 7 and 8 December 2017 at the Gallagher Estate Convention Centre in Midrand, under the theme ‘Positioning the energy sector to maximise contribution to economic growth, development and transformation’.
SOUTH AFRICAN ENERGY INDABA
11 Volume 13, No 4, January 2018
In his closing remarks, the Minister identified the main energy challenges, which include meeting the rapidly rising demand for energy, particularly in developing countries, the need to increase energy supply in a globally carbon-constrained environment and ensuring security of supply and affordability of energy for all. The main threats to energy security include depleting energy resources, geopolitical instability, inadequate infrastructure and diminishing natural resources. In order to overcome these challenges, Mr Mahlobo recommended an integrated and coordinated approach to energy planning and coherent policy making.
Mr Mahlobo was of the opinion that the future South African energy mix may be quite different from that of the past, mainly because of climate change, as well as global developments in renewable energy and nuclear energy technologies and other, cleaner alternatives to traditional coal power stations.
Like other countries, the social, economic and fiscal context of South Africa leaves the country no choice but to leverage private sector financing and investment to meet energy infrastructure investment needs. Mr Mahlobo made it clear that South Africa needs to industrialise its economy in order to take advantage of both its renewable and non-renewable resources. Mr Mahlobo left the Energy Indaba with the following challenge: ‘Now that we have looked at the issues, it’s time to walk the talk. It is in our hands to change our economic fortunes and we dare not fail’.
12
NERSA CEO Mr Chris Forlee and Deputy Minister of
Energy Ambassador Thembekile Majola at the
Energy Indaba
NERSA staff interacting with stakeholders during the
Energy Indaba
Volume 13, No 4, January 201813
On 19 October 2017, the stakeholders in the piped-gas industry joined the Gas Workshop, organised by NERSA’s Gas Pricing and Tariffs Department, to review the adequacy of the Methodology to Approve Maximum Prices of Piped-Gas in South Africa (‘the Methodology’). The Methodology provides two approaches to the approval of maximum prices for gas molecules: (i) the use of energy price indicators to determine the gas energy price and (ii) pass-through (cost build-up), which accommodates the traders of gas, importers of Liquefied Natural Gas (LNG), the developers of domestic gas sources, etc.
The review of the Methodology will be conducted in three phases. Phase 1 entailed benchmarking the maximum price methodology against those of other jurisdictions. Phase 2 is currently underway, with the objective of
Workshops
NERSA Gas Workshop: 19 October 2017conducting an impact study. The study will evaluate the impact of the Methodology on the Gas Industry and the extent to which it has contributed to the achievement of the objectives of the Gas Act, 2001 (Act No. 48 of 2001). Phase 3 will become the final review, which will be steered by a consultant as an expert to consolidate the findings of phase 1 and 2 in a bid to conduct the actual Methodology review.
The main objectives of the workshop were to determine the need to review the Methodology; the extent to which the Methodology has met the objectives of the Gas Act and to benchmark the Methodology against other gas pricing methodologies of other jurisdictions. The workshop facilitated a rapport between NERSA and the stakeholders in the Gas Industry in discussing contentious issues around the Methodology, as well as areas of improvement that have been identified so far. The discussion document that was published prior to the workshop posed questions and solicited responses from stakeholders.
The response from stakeholders regarding the utilisation of either the price indicators approach or the pass-through/cost-build up mechanism has been ambiguous. An evaluation of the responses to the discussion document show that the price indicators approach has fallen out of favour, because the basket of alternatives is contested for inheriting the inefficiencies of the electricity market through high prices, as electricity has a contribution of about 37% in the gas formula. Stakeholders have argued that the price indicators approach, and the weights attached to each element of the basket of alternatives, bears no reasonable relationship with the actual consumption of gas by the industry in the market. The current gas-pricing regime is thus believed inefficient and exploitative, particularly by downstream players. Therefore, stakeholders have advocated for a paradigm shift towards the cost-pass through approach in the pricing of both piped-gas and Compressed Natural Gas (CNG) in a framework that will facilitate the recovery of costs and the reward of optimal economic returns. Phase 2 culminated in the submission of written input by stakeholders in response to questions posed in the discussion document.
NERSA workshop- Adequacy of the Methodology to Approve Maximum Prices of Piped-Gas in SA, held 19 October 17 at NERSA’s office
NERSA workshop 2- Adequacy of the Methodology to Approve Maximum Prices of Piped-Gas in SA
Volume 13, No 4, January 2018 14
Creating NERSA awareness: Customer education workshopsThrough its customer education initiatives, NERSA creates a greater awareness of its positive contribution to the economic growth of the country. During the last quarter of the year, NERSA’s Customer Education Unit conducted a total of 17 customer education/stakeholder engagement initiatives: 13 customer education workshops and two exhibitions.
The general issues raised at the 13 workshops, which were attended by 1029 customers, were the inclining block tariffs, electricity theft, vendors charging extra fees on prepaid vouchers, high electricity costs, service quality and participation in NERSA public hearings on pricing determinations.
The Customer Education Unit participated in the following two exhibitions: Association of Municipal Electricity Utilities convention (AMEU) (Port Elizabeth, 9–11 October 2017) and the Energy Indaba (Midrand, 7–8 December 2017).
Workshops
Customer Education - Kgabalatsane
Customer Education - Umlazi V- section in Ethekwini
Municipality Customer Education - Kgabalatsane
Customer Education - Umlazi V- section in
Ethekwini Municipality Customer Education - Kwa- Ndengezi in Ethekwini
Volume 13, No 4, January 201813
On 19 October 2017, the stakeholders in the piped-gas industry joined the Gas Workshop, organised by NERSA’s Gas Pricing and Tariffs Department, to review the adequacy of the Methodology to Approve Maximum Prices of Piped-Gas in South Africa (‘the Methodology’). The Methodology provides two approaches to the approval of maximum prices for gas molecules: (i) the use of energy price indicators to determine the gas energy price and (ii) pass-through (cost build-up), which accommodates the traders of gas, importers of Liquefied Natural Gas (LNG), the developers of domestic gas sources, etc.
The review of the Methodology will be conducted in three phases. Phase 1 entailed benchmarking the maximum price methodology against those of other jurisdictions. Phase 2 is currently underway, with the objective of
Workshops
NERSA Gas Workshop: 19 October 2017conducting an impact study. The study will evaluate the impact of the Methodology on the Gas Industry and the extent to which it has contributed to the achievement of the objectives of the Gas Act, 2001 (Act No. 48 of 2001). Phase 3 will become the final review, which will be steered by a consultant as an expert to consolidate the findings of phase 1 and 2 in a bid to conduct the actual Methodology review.
The main objectives of the workshop were to determine the need to review the Methodology; the extent to which the Methodology has met the objectives of the Gas Act and to benchmark the Methodology against other gas pricing methodologies of other jurisdictions. The workshop facilitated a rapport between NERSA and the stakeholders in the Gas Industry in discussing contentious issues around the Methodology, as well as areas of improvement that have been identified so far. The discussion document that was published prior to the workshop posed questions and solicited responses from stakeholders.
The response from stakeholders regarding the utilisation of either the price indicators approach or the pass-through/cost-build up mechanism has been ambiguous. An evaluation of the responses to the discussion document show that the price indicators approach has fallen out of favour, because the basket of alternatives is contested for inheriting the inefficiencies of the electricity market through high prices, as electricity has a contribution of about 37% in the gas formula. Stakeholders have argued that the price indicators approach, and the weights attached to each element of the basket of alternatives, bears no reasonable relationship with the actual consumption of gas by the industry in the market. The current gas-pricing regime is thus believed inefficient and exploitative, particularly by downstream players. Therefore, stakeholders have advocated for a paradigm shift towards the cost-pass through approach in the pricing of both piped-gas and Compressed Natural Gas (CNG) in a framework that will facilitate the recovery of costs and the reward of optimal economic returns. Phase 2 culminated in the submission of written input by stakeholders in response to questions posed in the discussion document.
NERSA workshop- Adequacy of the Methodology to Approve Maximum Prices of Piped-Gas in SA, held 19 October 17 at NERSA’s office
NERSA workshop 2- Adequacy of the Methodology to Approve Maximum Prices of Piped-Gas in SA
Volume 13, No 4, January 2018 14
Creating NERSA awareness: Customer education workshopsThrough its customer education initiatives, NERSA creates a greater awareness of its positive contribution to the economic growth of the country. During the last quarter of the year, NERSA’s Customer Education Unit conducted a total of 17 customer education/stakeholder engagement initiatives: 13 customer education workshops and two exhibitions.
The general issues raised at the 13 workshops, which were attended by 1029 customers, were the inclining block tariffs, electricity theft, vendors charging extra fees on prepaid vouchers, high electricity costs, service quality and participation in NERSA public hearings on pricing determinations.
The Customer Education Unit participated in the following two exhibitions: Association of Municipal Electricity Utilities convention (AMEU) (Port Elizabeth, 9–11 October 2017) and the Energy Indaba (Midrand, 7–8 December 2017).
Workshops
Customer Education - Kgabalatsane
Customer Education - Umlazi V- section in Ethekwini
Municipality Customer Education - Kgabalatsane
Customer Education - Umlazi V- section in
Ethekwini Municipality Customer Education - Kwa- Ndengezi in Ethekwini
Volume 13, No 4, January 201815
NERSA CLEAN AUDIT AWARD
NERSA is a proud recipient of a Public Finance Management Act (PFMA)
Clean Audit Award for 2016/17 from the Auditor-General
of South Africa for the fourth consecutive year. This award is a testament to NERSA’s
commitment to excellence and integrity in regulating the energy industry.
NERSA Team displaying the PFMA 2016/17 CleanNERSA Regulator members and AG officials during the
hand-over of the Clean Audit Award
Volume 13, No 4, January 2018 16
16 Days of Activism: NERSA takes a standagainst violence
EVENTS
The 16 Days of Activism for No Violence against Women and Children is an international awareness-raising campaign that includes Universal Children’s Day and World AIDS Day. Together, we need to stand up against violence – particularly
against women and children.
The International 16 Days of Activism campaign, which is annually commemorated from 25 November to 10 December, focuses on generating an increased awareness on the negative impact of violence and abuse on women and children and on society. The theme in the 2017 Campaign was: COUNT ME IN. TOGETHER MOVING A NON-VIOLENT SOUTH AFRICA FORWARD. The International 16 Days of Activism campaign, which is annually commemorated from 25 November to 10 December, focuses on generating an increased awareness on the negative impact of violence and abuse on women and children and on society. The theme in the 2017 Campaign was: COUNT ME IN. TOGETHER MOVING A NON-VIOLENT SOUTH AFRICA FORWARD.
Apart from the importance of protecting fundamental human rights (including those of women and children) in the South African Constitution, NERSA supports the International 16 Days of Activism for No Violence against Women and Children because it is in agreement of the essential aims of the Campaign, which aims to:
• generateanincreasedlevelofawarenessamongallSouthAfricansaboutthenegativeimpactofviolence and abuse on our women and children;• standuptoperpetratorsoftheseoffencestochangetheirbehaviour;• enhanceandincreasepartnershipsbetweengovernment,theprivatesector,civilsociety,faith-based organisations, and the media in an effort to spread the message;• raisefundsforNon-GovernmentalOrganisations(NGOs)thatprovideinvaluablesupporttothevictimsand survivors of violence;• providesurvivorswithinformationontheseservicesandorganisationsthatcanhelpreducetheimpactof violence on their lives;• engageactivelywithmenandboysinthediscourseaboutcombattingviolenceinourhomes,our communities and in the workplace; and• highlightthestoriesofsurvivorsofgender-basedviolenceandchildabuse,andtheimpactthatthe campaign has had on their lives.
Volume 13, No 4, January 201815
NERSA CLEAN AUDIT AWARD
NERSA is a proud recipient of a Public Finance Management Act (PFMA)
Clean Audit Award for 2016/17 from the Auditor-General
of South Africa for the fourth consecutive year. This award is a testament to NERSA’s
commitment to excellence and integrity in regulating the energy industry.
NERSA Team displaying the PFMA 2016/17 CleanNERSA Regulator members and AG officials during the
hand-over of the Clean Audit Award
Volume 13, No 4, January 2018 16
16 Days of Activism: NERSA takes a standagainst violence
EVENTS
The 16 Days of Activism for No Violence against Women and Children is an international awareness-raising campaign that includes Universal Children’s Day and World AIDS Day. Together, we need to stand up against violence – particularly
against women and children.
The International 16 Days of Activism campaign, which is annually commemorated from 25 November to 10 December, focuses on generating an increased awareness on the negative impact of violence and abuse on women and children and on society. The theme in the 2017 Campaign was: COUNT ME IN. TOGETHER MOVING A NON-VIOLENT SOUTH AFRICA FORWARD. The International 16 Days of Activism campaign, which is annually commemorated from 25 November to 10 December, focuses on generating an increased awareness on the negative impact of violence and abuse on women and children and on society. The theme in the 2017 Campaign was: COUNT ME IN. TOGETHER MOVING A NON-VIOLENT SOUTH AFRICA FORWARD.
Apart from the importance of protecting fundamental human rights (including those of women and children) in the South African Constitution, NERSA supports the International 16 Days of Activism for No Violence against Women and Children because it is in agreement of the essential aims of the Campaign, which aims to:
• generateanincreasedlevelofawarenessamongallSouthAfricansaboutthenegativeimpactofviolence and abuse on our women and children;• standuptoperpetratorsoftheseoffencestochangetheirbehaviour;• enhanceandincreasepartnershipsbetweengovernment,theprivatesector,civilsociety,faith-based organisations, and the media in an effort to spread the message;• raisefundsforNon-GovernmentalOrganisations(NGOs)thatprovideinvaluablesupporttothevictimsand survivors of violence;• providesurvivorswithinformationontheseservicesandorganisationsthatcanhelpreducetheimpactof violence on their lives;• engageactivelywithmenandboysinthediscourseaboutcombattingviolenceinourhomes,our communities and in the workplace; and• highlightthestoriesofsurvivorsofgender-basedviolenceandchildabuse,andtheimpactthatthe campaign has had on their lives.
Volume 13, No 4, January 201817
NERSA demonstrates its commitment to health and wellbeing: World Aids Day
EVENTS
As part of its commemoration of World Aids Day on 1 December 2017, NERSA performed health assessments and provided health-related services at its offices, including:
Energy RegulatorWednesday, 28 Feb 201810:00 – 14:00
•Reports•AnnualReport(Chairperson,CEOand
MARCH 2018
Type of meeting Date of meeting PurposePublic Hearing Thursday, 1 Mar 2018
Electricity Subcommittee Monday, 5 Mar 201809:00 – 12:00
•Reports/Delegatedmatters
Petroleum Pipelines Subcommittee Tuesday, 6 Mar 201809:00 – 12:00
•Reports/Delegatedmatters
Piped-Gas Subcommittee Wednesday, 7 Mar 201809:00 – 12:00
•Reports/Delegatedmatters
Regulator Executive Committee Monday, 12 Mar 201809:00 – 11:00
•MunicipalTariffIncreases
Executive Committee Tuesday, 13 Mar 201809:00 –12:00
•EnvironmentalScan
Energy Regulator (Special) Thursday, 15 Mar 201809:00 – 11:00
•TransnetTariff
Finance Bid Adjudication Committee Friday, 16 Mar 201809:00 – 12:00
•Tenders/Bids
Public Hearing Tuesday, 27 Mar 2018
Energy Regulator Wednesday, 28 Mar 201810:00 – 14:00
•SubcommitteeReports
Calendar of Events
Audit Chairperson Reports etc.)
matters
NERSA staff members having messages as part of health risk assessment
Volume 13, No 4, January 201817
NERSA demonstrates its commitment to health and wellbeing: World Aids Day
EVENTS
As part of its commemoration of World Aids Day on 1 December 2017, NERSA performed health assessments and provided health-related services at its offices, including:
