PCE PRESENTATION OF THE 2013/14 2nd QUARTER PERFORMANCE (Quarter ending 30 September 2013)

PCE PRESENTATION OF THE 2013/14

2nd QUARTER PERFORMANCE(Quarter ending 30 September 2013)

Mr. G MnguniActing Director-General

29 October 2013

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DEPARTMENT OF ENERGY

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Introductiona)In April this year, the Department presented its 2013/14 APP to this committee based on the strategic session held in November 2012.b)The presentation indicated where our plans going forward were aligned to government priorities, NDP, government outcomes, budget as well as our role in the Strategic Integrated Projects (SIPs) of PICC.


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Introduction (continues……)c)The Department took cognisance of the fact that 2013/14 is the last year of the current government’s term of office.d)Key focus areas have been identified for the 2013/14 financial year


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KEY FOCUS AREAS FOR 2013/14

•Implementation of the IRP ( nuclear, IPPs, etc.) •Increase the number of grid and non-grid connections through INEP•Solar Water Heaters programme•Energy Efficiency•Finalisation of the CEF group restructuring process•Finalisation of the IEP•Monitoring of Petroleum Compliance•Conclusion of the Regulatory Account Process

CONCLUSION

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• Today’s presentation is on progress made during the 2nd quarter.

• Branch heads will focus their presentations on the partially achieved and not achieved targets

• CFO will give details of the department’s financial performance.

THANK YOU


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PCE PRESENTATION ON THE

2nd QUARTER PERFORMANCE PROGRAMME 4 : NUCLEAR ENERGY

Mr Z MbamboDeputy Director General

DoE 2nd Qtr. 2013/14 Performance Information ReportProgramme 4: Nuclear Energy

Annual Target Quarterly Target Progress this Quarter

Comments/ Corrective actions

7

1 nuclear infrastructurereview conducted.

Commence self assessmentaccording to International AtomicEnergy Agency (IAEA)guidelines on EmergencyPreparedness Review(EPREV).

Achieved Self assessment Commenced and EPREV Team reviewed the responses to questionnaires through a workshop

Implementation ofprocurement process.

Recommendation toCabinet on procurementprocess specifications.

Achieved Procurement framework proposal ready for NNEECC meeting of July 2013

Submission made toNNEECC on NuclearFuel Cycle Strategy.

N/A Strategy document ready for NNEECC meeting of July 2013.




8

Set up NRWDI office &implement Section 30(transitional arrangement) of the NRWDI Act, 2008.

Office space secured. Partially Achieved Board of Directors appointment pronouncement still outstanding, although NRWDI office is not yet established DoE is currently setting up Bank account for transfer of Seed capital. Technical Task Team (TTT) initiated strategies to address transitional arrangements.

1 RPM installed. Import equipment. Not Achieved project delayed. Department currently engaging relevant stakeholders in this process.




9

100% of applicationsfor nuclear materials& related equipmentconcluded within the8-week time period.

100% of applicationsfor nuclear materials& related equipmentconcluded within the8-week time period.

Partially achieved 16 out of 19 (84%) authorizations were issued within the turnaround time.

1 (Number of nuclear audits conducted).

Nuclear audit initiated.

Not achieved The NNP directorate consulted the Internal audit Directorate and National Nuclear Regulator (NNR) on the process to follow when conducting an audit. Then reason for the consultation was because this is the first audit the Directorate will be conducting. The initiation will be done in the 3rd quarter




10

8 nuclear safeguardscompliance inspectionsconducted.

2 nuclear safeguardscompliance inspectionsconducted.

Achieved Safeguards Inspection reports

Public consultationprocess completed.

Address publiccomments.

Not Achieved Target not met and Cabinet Submission deferred to next financial year. Workshop with stakeholders to address FOSAD comments held, with the exception of DoE Navy.




11

Nuclear Energy Actamendment submitted to Cabinet.

Draft amendment billsubmitted to legaladvisors.

Not Achieved Addressing stakeholders comments. One stakeholder’s comments still outstanding.

Public consultationprocess completed.

Draft bill consulted withlegal advisor.

Not Achieved Bill consulted with Treasury for concurrence.




12

Transitionalarrangements for SSAC.

Source the funding.Ministerial Delegationof Authority given to thehost.

Not achieved As reported in the 1st quarter the host was not identified due the recommendations in the INIR. A submission was approved in the 1st quarter to change the reporting of Nuclear Safeguards management division from Necsa to DoE. A meeting was held with Necsa to discuss the change in the reporting line.

4 community outreachevents held.

2 community outreachevents held.

Partially Achieved

1 ministerial engagement held with the young nuclear professionals held in Cape Town on 13 June 2013.


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2nd QUARTER PERFORMANCE PROGRAMME 3 : PETROLEUM & PETROLEUM

PRODUCTS REGULATIONS

Mr T MaqubelaDeputy Director General

DoE 2nd Qtr. 2013/14 Performance Information ReportProgramme 3: Petroleum and Petroleum Product Regulation Annual Target Quarterly Target Progress this

Quarter Comments/ Corrective

actions

14

1 500 compliance inspections conducted at sites

750 compliance inspections conducted (cumulative target)

Achieved Number of inspection conducted is463. The cumulative number is 845

100% of enforcement notices issued

100% of enforcement notices issued

Achieved There were 20 Non-compliance issues identified during the quarter under review. 13 enforcement notices were issued and 6 non-compliance matters were resolved immediately, hence no notice was issued. Therefore the percentage of enforcement notices issued for non-compliance this quarter is 65%



actions

15

750 fuel samples tested

250 samples tested Not Achieved The compulsory briefing sessions for prospective se4rvice provider were held on the 17/09/2013 as well as on the 25/09/2013



actions

16

90% compliance rate with 60 days prescribed timeframe by the controller when adjudicating on petroleum site& retail NTI licence application

90% compliance rate with 60 days prescribed timeframe

Partially Achieved

Number of Petroleum Site & Retail NTI applications finalised within 60 days is 47 out of 56 (83.9%) that were due for finalisation this quarter. The target is partially achieved due to applicants requesting more time to submit additional information, which then impact on the period it takes to finalised the applications.



actions

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95% compliance rate with the 90 days prescribed timeframe by the controller adjudicating on all petroleum activity licence applications excluding site & retail NTI applications

95% compliance rate with 90 days prescribed timeframe

Achieved Number of Petroleum activity licence applications excluding Site & Retail NTI applications, finalised within 90 days is 46 although only 38 were due for finalisation this quarter.



actions

18

100% compliance rate by the controller on finalising all historical applications that were on the system as of 30 September 2012

50%(cumulative target) of outstanding application finalised

Partially Achieved

Number of historical applications that were finalised is 263 out of 1783 (15%) that were in the system at the beginning of this quarter. The cumulative figure is 32%. The Department is working with Oil companies to exert pressure on retail applicants to submit additional information so their licences can be finalised.



actions

19

100% of arbitration notices issued for arbitration request

100% complicate rate

Not Achieved 1 arbitration requests received during this quarter however it could not be finalised, Awaiting BP South Africa Pty Ltd's representations on the request for arbitration by the complainant

9 PPA & licencing awareness campaigns conducted per annum

5 (cumulative target) awareness campaigns conducted

Achieved Number of awareness campaigns conducted during this quarter is 4. Cumulative target is 5.



actions

20

Implement the BFP & MDZ review study recommendations

• Amend the BFP working rules & implement the revised pricing elements.

• Appoint a service provider to conduct the MDZ

Not Achieved The Department met with SAPIA technical team to discuss their recommendation and seek supporting documents. The DOE team attended training at Thompson Reuters, where, most of the BFP elements were discussed. The MDZ review will be conducted after June 2014 when all the terminals of the NMPP are completed.



actions

21

Implement and monitor .RAS Fuel margins in line with RAS models.

Submit progress reports

Partially Achieved

The Department concluded one-on-one meetings with the oil companies, Retailers and the Independent Wholesalers. The purpose of the meetings was to discuss outstanding issues for RAS implementation in December 2013.



actions

22

Promulgate & implement the fixed retail margin of IP

Included in the monthly fuel price submission

Not Achieved The submission requesting approval to promulgate the regulation was returned to the Directorate for clarity. The Directorate was requested to make a presentation during the branch meeting in October 2013.



actions

23

Conduct the service stations survey to determine the BSS asset base

• Training of the inspectors & identification of the service stations to be surveyed

Not Achieved Only two companies submitted their Bids Documents. The Bid Evaluation Committee could not recommend neither of them for further evaluation because they did not qualify technically. The Directorate will submit the TOR to the BAC for re-advertisement during October 2013



actions

24

Gazette the Biofuels pricing framework

Publish Biofuels pricing regulation

Not Achieved The Biofuels Task Team was requested to include other crops in the pricing models by the sugar industry. The qualification criteria that the biofuels manufacturers should meet in order to qualify for the subsidy could not be finalised. Hence, the publication could not be done.


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2nd QUARTER PERFORMANCE PROGRAMME 6 : PROGRAMMES AND PROJECTS

Dr W BarnardDeputy Director General

DoE 2nd Qtr. 2013/14 Performance Information ReportProgramme 6: Programmes & Projects



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200 000 additional households electrified.

65 000 additional households electrified

Partially Achieved:Municipalities electrified 26 676 additional householdsEskom electrified 32 216 additional householdsTOTAL = 58892.

Achievement:YTD households electrified: 92 085

15 000 non-grid connections.

4 000 non-grid connections.

Not Achieved: 2074 new non-grid connections were made.

Achievement:A total of 4415 non-grid connections achieved from Quarter 1 and 2. Constraints: Late signing of non-grid contracts by service providers.




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2 IEC established 1 IEC established Achieved:Makwane IEC established in Qwaqwa, Free State. This IEC will be launched in November 2013, awaiting a date in the Minister's diary.

For Quarter 1 and 2 a total of 1 IEC has been established.


Annual Target Quarterly Target

Progress this Quarter Comments/ Corrective actions

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350 km new MV power lines constructed


Partially Achieved:EC-Gatyana 132 kV line -construction is 36%. FS-Badirile MV/LV line complete. WC-Dassenberg 11kV feeder complete, EC-Ngqeleni PH3 22Link Line PH2, FS-Feeder line to Ntha 4.2km = 40% complete (1.7km), 6 km 88 kV feeder line from Zamdela Substation to Leitrim Substation =0%,

Comment:Holistic project approach have projects running in parallel and not specific delivery per km.



Progress this Quarter Comments/ Corrective actions

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350 km new MV power lines constructed (cont.)


Partially Achieved:Feeder Line to Mkgolokoeng 4KM = 90% complete (3.6km), Feeder Line to Tshiame, Overhead Feeder Line P-4, GT-Obed Nkosi Bulk Supply=0%, Cable link to energize Borwa=100% complete, Cable link to , Middelvlei / Mohlakeng ext 11 132 /KV overhead line- phase 2-3.2KM = 100% complete, Simunye, MP-11kV, 14km=0%, Farrad Conductor = 0%, WC-Knysna Phase 3 4.5KM = 25% complete (1.123km).





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220 km existing MV power lines upgraded

75 km existing MV power lines upgraded

Partially Achieved:WC-Wittewater Moravian station, Robberg farmers feeder1, DU Noon 11kV feeder, Robberg farmers feeder2, Belhar 11kV lines, Zandberg F2-Sandfontein voltage regulator, 35% complete





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6 new bulk substation built

2 new substation built Partially Achieved: EC-Gatyana substation-construction is 15%. Zwelethu sub-100% complete, Zoo Substation, New Signal substation. , FS-Leitrim sub, MP-Msukaligwa x33 88/11kV sub = 3%, NW-Vryburg ext 25 sub = 0%, WC- Calitzdorp 20mvA, 66/11kv sub = 0%,

Comment:Holistic project approach have projects running in parallel and not specific per substation.




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6 new bulk substation built (cont.)

2 new substation built Partially Achieved:GT-Mohlakeng x11 phase2=0%,Bulk Supply Khutsong South Secondary Network (Ext 1 substation) = 98% complete





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10 additional substations upgraded

3 additional substation upgraded

Partially Achieved:WC - Belhar substation, Khayelitsha feeder bay 45% complete. KZAN-Wembezi sub upgrade, MP-Emjindini Trust sub =0%, GT -K1=85% complete,K3 Substation= 70% complete, NW-De la Reyville and Ventersdorp subs =0%,





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10 additional substations upgraded (cont.)

3 additional substation upgraded

Partially Achieved:FS-Upgrade of Greenland Substation from 10 MVA to 15 MVA = 0%, NC-Okiep and Nababeep Primary Substations = 100%





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R 933 million spent on BEE & SMME

R 200 million spent on BEE & SMME

Achieved:R659 million was spent on BBEEE and SMME by Window 1 IPPs.

12 progress reports submitted

3 reports submitted Achieved:Monthly report received from Regions.




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12 progress reports & dashboards submitted per project

3 progress reports & dashboards submitted per project

Achieved:Progress reports were prepared for INEP, IPPs, PICC, Outcome 6 and Outcome 9.

4 SIP reports submitted to EXCO /MANCO & PICC Secretariat on all SIPs

1 SIP report submitted to EXCO /MANCO & PICC Secretariat on all SIPs

Achieved: SIP reports for SIP 6, 8 and summary of all other SIPs DOE are involved with, have been forwarded to PICC. SIP 8 Business Plan was approved by Minister Martins, the Chair of SIP 8.

Achievement:Two SIP reporting sessions were held with Minister Martins and one with Deputy Minister Thompson



Progress this Quarter


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Refurbishment of key electrical networks in 9 municipalities.

Refurbishment of key electrical networks in 3 municipalities.

Achieved:All project documentation have been completed and the municipal business plans approved by the MASC (Mini-Adam Steering Committee). The 9 contracts were sent to municipalities for their signatures.

Comment:The mini-ADAM project is running in all 9 municipalities in parallel, hence no projects have currently been completed. Challenges:Obtaining responses and signed documentation from municipalities.




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129 679 SHWs installed 60 000 SWHs installed

Not Achieved:A total of 7787 SWH installed for the period July and August 2013.

Comment:The figures are only for July+Aug as September figures has not been submitted.Challenges:The contract with Eskom with regards to the Contracting Phase has not been completed. As interim measure, a local manufacturing Rebate Phase will be implemented.




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60 % of construction phase of IPP Bid Window 1 projects completed.

25 % of construction phase of IPP Bid Window 1 projects completed.

Achieved:37% of construction of Window 1 projects are completed.

12 000 jobs created. 3 000 jobs created. Achieved:8016 new jobs have been created in BW1 and 1514 in BW2 of the IPP programme.511 jobs have been created as part of the INEP programme but is an accumulative figure for the yearTOTAL: 10 041.

Achievement:A total of 10 041 new jobs have been created.




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60 % of budget allocated for community upliftment spent on upliftment & empowerment projects programmes.

10 % of budget allocated for community upliftment spent on upliftment & empowerment projects programmes.

Achieved:The Directorate used 33% of their R1 850 000 budget (R610 000) for the launch of IeC's, Sod Turning Events and Energy Awareness Campaigns.


Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions

41

4 public energy awareness campaigns conducted.

1 public energy awareness campaign conducted.

Achieved:Community Upliftment Directorate conducted, hosted and participated in three awareness campaign: (1) Energy Awareness on how to save energy held in Volkrust targeting 200 rural women,(2) In Limpopo and Mpumalanga Career Expo where youth were informed about career opportunities available within the energy sector, as well giving them tips on how to save energy, (3) Energy awareness in Free State.


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2nd QUARTER PERFORMANCE PROGRAMME 2: ENERGY POLICY & PLANNING

Mr O AphaneDeputy Director General

DoE 2nd Qtr. 2013/14 Performance Information ReportProgramme 2: Energy Policy & Planning



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Development of 2indicators for:1. electricity supplysecurity2. electricity EE.

N/A Not achieved

Due to delays in the Departmental matching & placing process, there are no personnel to execute this task. This target will be consolidated in the IRP Update and Energy Efficiency Target Monitoring System.

Development ofa research agendafor the expansion ofgas infrastructure

Produce reportregarding research topics for the expansion of gas infrastructure.

Not achievedThis target will be consolidated in the Gas Infrastructure Plan portion of the IEP

Development of aresearch agenda for the expansion of electricity generation, transmission & distributioninfrastructure.

Produce reportregarding researchtopics for the expansion of electricity generation,transmission &distribution infrastructure

Not achieved

This target will be consolidated in the Transmission Development Plan and Major Distribution Infrastructure Plan portion of the IEP

Development of aresearch agenda for EE in the Electricity Sector

N/A Not achievedThis target will be consolidated in the IRP Update and Energy Efficiency Target Monitoring System.




44

Draft IEP submitted to Cabinet.

Draft IEP published for public consultation.

IEP & revised IRPassumptions integratedunder public consultation process.

Achieved

The first consultation workshop took place on the 25 and 26 September 2013 in Johannesburg at Indaba Hotel. Other provincial consultations workshops will take place during the month of October and November 2013 and all provinces will be covered.

IRP & TDP incorporated as part of IEP.

TDP & Major DistributionInfrastructure Plan report. Not Achieved

Aligned with IEP Stakeholder consultation process. Eskom proposal to be policy adjusted. Distribution Infrastructure plan currently under development as part of IRP update.

Liquid FuelsInfrastructure Roadmap incorporated as part ofIEP.

Draft Liquid FuelsInfrastructure Roadmap report. Not Achieved

This forms part of the IEP Development process which is due for completion in March 2014.




45

Energy statistic compiled & disseminated timeously (according to reporting obligations).

Monthly basis: Joint Oil Data Iniative.

Achieved 1. May and June Gas quationaire submitted to JODI. 2. May and June final oil questionaire submitted to JODI 3. Preliminary Oil questionaire for August submitted to JODI

Quarterly basis:Petroleum product sale. Fuel levies & taxes. Data bank (upstream oil, gas).

Achieved. 1. APPA Databank updated with data up to June 2013. 2. 2013 third quarter Prices and Taxes questionaire submited to IEA.Achieved. 1. Draft 2011 commodity flows compiled 2. 2010 energy balance undergoing approval for dissemination

Developed strategy &plans for the introductionb of new economic infrastructure as per the IEP/IRP

Public consultationcompleted & reportapproved by the Minister.

Achieved.

Stakeholder Engagement plan developed and obtained Ministerial and Cabinet approval to engage in roadshows




46

Developed strategy &plans for the introduction of new economicinfrastructure as per the IEP/IRP.

Public consultationcompleted on thegas infrastructurerequirements for power generation & report approved by Minister.

Achieved. Stakeholder Engagement plan developed and obtained Ministerial and Cabinet approval to engage in roadshows

Develop amendments to the Petroleum Products Act, Gas Act

N/A Achieved: Comments received from stakeholders were considered and incorporated into the draft Gas Amendment Bill. A final Stakeholder Workshop was held on the 17 September 2013 to clarify comments received.

Transmission,Distribution InfrastructureRehabilitation &Expansion Planpublished after publicconsultation.

Transmission &distribution infrastructurerequirements ofmunicipalitiesincorporated into the IRP.

Not Achieved

Aligned with IEP Stakeholder consultation process. Eskom proposal to be policy adjusted. Distribution Infrastructure plan currently under development as part of IRP update.




47

Amendments toElectricity RegulationAct & National EnergyRegulator Act certifiedfor deliberation byParliament ISMO Billpromulgated.

Developed regulatorymechanisms & delivery model(s) for major municipal distribution infrastructure expansionrequirements.

Partially Achieved Instruction to resubmit to Cabinet all Bills that have been subjected to stakeholder engagement including Nedlac.

Published electricity price path for the 20 years.

N/A Partially Achieved To be completed once the IRP update in conluded

Promulgated policyfor the standard offerscheme for solar waterheaters.

Promulgation of thestandard offer policy &rebate level for SWHs.

Partially Achieved Engagement of Nersa to be concluded by end of Q3

Bidding documentsdeveloped in respect of W3 of REIPP, gas, coal baseload programmes.

N/A Partially Achieved Window 3 of REIPP completed. Coal, Gas to be concluded by end of Q4.


48


2nd QUARTER PERFORMANCE PROGRAMME 5: CLEAN ENERGY

Mr O AphaneDeputy Director General

DoE 2nd Qtr. 2013/14 Performance Information ReportProgramme 5: Clean Energy




49

Developed energyconsumption baselines for 10 municipalities.

Piloting of the baselinedevelopment approach.

Partially Achieved The baseline determination development approach was developed and municipalities were introduced to it in the workshop held on August 2013. Municipalities are currently submitting business plans based on this approach.

Promulgation of revised Cabinet-approved strategy & plan for improving EE.

Stakeholder engagement on draft NEE Strategydocument.

Achieved in first quarter The Strategy document is being finalised and the Cab Memo is being drafted for submission.

Stakeholder consultedECS rules developed.

Consultation on theECS with 10 industrycompanies representingthe Intensive EnergyUsers Sector.

Partially achieved Stakeholder consultation underway to resolve legal issue of selective legislation (ECS) due to targeting only key industrial customers.

Completed feasibilitystudy for thedevelopment of theNorthern Cape solarpark.

Feasibility study reportapproved by Minister.

Not Achieved Consultants have been appointed for the EIA and main Feasibility Study and both studies have commenced. The original Prieska site proved to be limited in terms of potential capacity i.e. up to 450MW therefore an alternative site in Kielder has been made available by the Municipality. Specialist studies have therefore been put on hold to save costs until there is final Agreement with Land Affairs on the use of this alternative site for the project.

DoE 2nd Qtr. 2013/14 Performance Information ReportProgramme 5: Clean Energy



50

Transition to revisedcontracting model fornew SWH installations.

Proposals for supplyof SWH units fromlocal manufacturersadjudicated.

Achieved Request for Information and Registration for local manufactures issued and briefing session held 28 August 2013. Assessment and evaluation of the Proposals completed and recommendations submitted for consideration.

80 000 SWH unitsinstalled.

Invitation for proposals & offer rebates for SWHs to pilot the standard offer policy for SWHs in highconsumption ResidentialSector.

Partially achieved Standard Offer model is being developed.

Submitted PINs & PDDs processed within the prescribed timelines.

All applicationsprocessed within theprescribed timelines.

Partially Achieved. 2 Pins and 2 PDD were received

Submission for Pins processed and Letters of No Objections issued. PDDS still under review process. Letters of approval not yet issued.

Promote the CDM& negotiation of theUNFCCC position.

Stakeholder engagement& education on CDMmethodology.

Achieved and the other is Partially Achieved

CDM waste to energy workshop held on 25 July 2013. Draft CDM status report and chemical sector booklet .


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2nd QUARTER PERFORMANCE PROGRAMME 1: SUB-PROGRAMME:

GOVERNANCE AND COMPLIANCE

Ms T Zungu Chief Operating Officer

DoE 2nd Qtr. 2013/14 Performance Information ReportProgramme 1: Sub-programme: Governance & Compliance




52

Risk ManagementImplementation Plan(including risk register) approved by the RiskManagement Committee by the end of June each year.

Progress report on the ImplementationPlan presented to RiskManagement Committee& Audit Committee

Partially Achieved Risk Management Implementation Plan was presented to and adopted by Risk Management Committee during the meeting held on 19 September 2013. To be presented during the next Audit Committee meeting.

4 quarterly riskmanagement reportspresented to the RiskManagement Committee.

1 risk management reportpresented to the RiskManagement Committee.

Achieved Risk Management Progress Report presented during Risk Management Committee held on the 19 September 2013.

DoE 2nd Qtr. 2013/14 Performance Information ReportProgramme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Progress this

Quarter Comments/

Corrective actions

53

100% of seniormanagement provided with prescripts &procedures for managing conflict of interest in the DoE (e.g gifts, declaration & outside work).

N/A N/A Target to be reported during the 4th Quarter

4 progress reports onanti-fraud & corruptioncases presented tothe Risk ManagementCommittee, AuditCommittee & PublicService Commission.

1 progress report on antifraud& corruption casespresented to the RiskManagement Committee,Audit Committee & PublicService Commission.

Achieved Anti-Fraud and Corruption Progress Report presented during Risk Management Committee held on the 19 September 2013.

DoE 2ndt Qtr. 2013/14 Performance Information ReportProgramme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Progress this

Quarter Comments/

Corrective actions

54

100% of active allegedfraud & corruption cases referred to the DoE that are responded to within a prescribed period of 40 days.

100% of active allegedfraud & corruption casesreferred to the DoE thatare responded to withina prescribed period of 40days.

Achieved No cases received from NACH, Whistle Blowing Mechanism, AG, IA and other sources.


Quarter Comments/

Corrective actions

55

100% of alleged fraud & corruption cases investigated & resolved.

100% of alleged fraud& corruption casesinvestigated & resolved.

Achieved No cases received from NACH, Whistle Blowing Mechanism, AG, IA and other sources.

Strategic Plan (whenapplicable) & APP tabled in Parliament by the stipulated timelines.

Submit 2nd draft ofStrategic Plan (whenapplicable) & APP tabledin Parliament by 31November 2013.

Achieved 1st draft of Strat Plan and APP submitted to NT on 30 August 2013.


Quarter Comments/

Corrective actions

56

Strategic Plan & APPoperationalised through operational & business plans.

N/A N/A Target to be reported during the 4th quarter.

Service DeliveryImprovement Plansdeveloped, implemented & adhered to.

N/A Draft SDIP has been completed and circulated.

Target to be reported during the 4th quarter


Quarter Comments/

Corrective actions

57

Performance site visits introduced & 4 or more conducted according to Branch Business Plan.

1 performance site visit conducted per Branch Business Plan.

Achieved: DOE's Polokwane Regional office was visited on 27 September 2013.

4 M&E compilationreports prepared forinternal approval &submitted per NT format & within 60 days of the end of each quarter to NT.

1 M&E compilation report prepared for internal approval & submitted per NT format & within 60days of the end of each quarter to NT.

Achieved: The first quarter M&E compilation report completed.

The approved 1st quarter performance reports (tables) were submitted to National Treasury on 28 August 2013.


Quarter Comments/

Corrective actions

58

Commission 1 externalmixed-methodsevaluation dependenton funding (evaluation of energy data collection,management &dissemination in SouthAfrica).

Select SteeringCommittee members& facilitate inauguralmeeting (if funding issecured).Select externalevaluators (if funding issecured).

Not achieved: This target is unlikely to be achieved due to lack of funds.


Quarter Comments/

Corrective actions

59

Produce 32 BranchImprovement Plans& 4 DepartmentalImprovement Plans& submit to EXCOfor implementationmonitoring.

8 Branch ImprovementPlans & 1 DepartmentalImprovement Planproduced & submitted toEXCO for implementationmonitoring.

Partially achieved: Eight branch improvement plans were produced. The improvement plans were based on the approved 4th quarter M&E compilation report.. The Departmental improvement plan will be produced after the branches have submitted their respective branches improvement plans.


Quarter Comments/

Corrective actions

60

Annual Report produced by 15 September of eachfiscal year

Annual Reportfor 2012/13 submitted to NT &tabled in Parliament.

Achieved 2012/13 Annual Report submitted to NT and tabled in Parliament on 27 September 2013.


Quarter Comments/

Corrective actions

61

MPAT questionnaire &supporting evidencesubmitted online byrequested deadline

Key performance areacoordinators selected,& procedural rolesdiscussed & tasksassigned.Submission for approvalof scores drafted.MPAT submitted viaMPAT website or othermutually agreed tomeans.

Achieved: All Key Performance Area coordinators were selected and provided with the necessary guidelines and support by the M&E unit on how to complete MPAT 1.3.


Quarter Comments/

Corrective actions

62

Final draft submissionsof Schedule 3A SOEsStrategic Plans & APPs reviewed, analysed & submitted to Minister for approval.

1st draft Strategic Plan& APPs submissionsof Schedule 3A SOEsreviewed, analysed &review notes sent toSOEs by 30 September2013.

Not Achieved:

NERSA,NNR, SANEDI submitted their strategic plans on the 30th August 2013.

SANEDI review meeting was held on the 04th October 2013.

NNR and NERSA review meetings will be held during October 2013 and comments sent to entities by the 23 October 2013.


Quarter Comments/

Corrective actions

63

NERSA electricity,piped-gas & petroleumpipelines levies & NNR authorisation fees submitted to the Minister for approval.


Schedule 2 SOEsShareholder Compacts & Corporate Plans with budgets reviewed, analysed & submitted to the Minister for approval.



Quarter Comments/

Corrective actions

64

SOE quarterlyperformance reportsreviewed, analysed & submission drafted for Ministerial approvalwithin 30 days of receipt of reports.

SOE 1st quarterperformance reports forthe 2013/14 financialyear reviewed, analysed& Ministerial submissiondrafted by 31 August2013.

Partially Achieved:

Entities submitted their first quarter reports on the 31st July expect for NNR that submitted on 01st August 2013.

Review meetings were held for all the entities expect for NERSA. NERSA meeting could not be held due to non-availability of either NERSA and DOE officials.

The reports are expected to be ready for the Minister's approval by the 30 October 2013.


Quarter Comments/

Corrective actions

65

Cabinet Memorandafor filling SOE boardvacancies drafted &submitted for Ministerial & Cabinet approval within 2 months of vacancy arising.

N/A N/A Target to be reported during the 3rd quarter.

2 SOE boardperformanceassessments submitted to the Minister

N/A N/A Target to be reported during the 3rd quarter.


Quarter Comments/

Corrective actions

66

Develop policy guidelines & templates for populating SOPs.

Preliminary draft to be evaluated.

Partially Achieved The guideline awaits the final assessment by Senior Managers before approval.

Review, amend (where necessary) & submit standard operatingprocedures for approval.

Consolidate thecomments & finalise SOPbooklet.

Partially Achieved The total number of SOP's reported is 178 of which 138 are in operations and only 51 are either listed as not existing or are on the draft stage. The process of finalising the SOP booklet is still on-going with outstanding Branches.


Quarter Comments/

Corrective actions

67

4 quarterly performancereports submitted to the Audit Committee.

1 performance reportsubmitted to the AuditCommittee.

Not Achieved The Reporting Calendar has been approved during the month of September by the DG's office. As a result, the Unit is now in the process of monitoring. Reporting on Monthly basis and it will consolidated quarterly report for Audit Committee.


Quarter Comments/

Corrective actions

68

64 bilateralintergovernmentalengagements/visitshosted in the EnergySector, excluding Africa (inbound & outbound).

16 bilateralintergovernmentalengagements/visitshosted in the EnergySector, excluding Africa (inbound & outbound).

Achieved 16 Inbound and 7 Outbound.


Quarter Comments/

Corrective actions

69

16 bilateralintergovernmentalengagements/visitshosted in the EnergySector with African states (inbound & outbound).

4 bilateralintergovernmentalengagements/visitshosted in the EnergySector with African states (inbound & outbound).

Achieved 1. Kenya: 19-20 August 2013 2. DRC: 22-23 September 2013. 3. Malawi: 27-30 August 2013. 4. Sao Tome and Principe: 28-29 August 2013. 5. SA/Ghana: 19 September. 7. C3S Steering Committee Meeting: 20 September 2013. 8. Senegal; 26-27 September 2013.


Quarter Comments/

Corrective actions

70

12 multilateralengagements/visitshosted in the EnergySector.

3 multilateralengagements/visitshosted in the EnergySector

Achieved 1. Botswana: SADC Renewable Energy Efficiency. 2. Angola: Signing of the MOU on the Establishment of a Tripartite Mechanism on Dialogue and Co-orperation between SA, Angola and the DRC. 3. Vienna: IAEA General Conference 2013


Quarter Comments/

Corrective actions

71

5 progress reports onthe implementation ofinternational EnergySector agreements.

1 progress report on the Implementation of international Energy Sector agreements.

Not Achieved Draft progress report not finalised.

2 structured SADCintergovernmental energy forums participated in.

1 structured SADCintergovernmental energyforum participated in.

Achieved Briefing: World Bank SADC Region


Quarter Comments/

Corrective actions

72

4 SADC prioritisedEnergy Sector projectsparticipated in/contributed to.

1 SADC prioritisedEnergy Sector project participated in/ contributed to.

Achieved Botswana: SADC Renewable Energy Efficiency

1 strategy progressreport submitted to the Minister.

Conduct stakeholderconsultation to secure input in the draft Implementation Plan.

Not Achieved Submission drafted after the second round of consultation with government departments and is waiting for Ministerial approval. The submission is currently in Minister's office. The SOEs workshop preparations has commenced to secure input in the draft Implementation Plan.


73

PPC PRESENTATION ON THE

2nd QUARTER PERFORMANCE PROGRAMME 1 :SUB PROGRAMME:

CORPORATE SERVICES

Mr GM MnguniDeputy Director General

DoE 2nd Qtr. 2013/14 Performance Information ReportProgramme 1: Sub-programme: Corporate Services



74

Finalisation of phase 3 of the HR Plan.

Quarterly progressreports on theimplementation ofphase 3 of the HR Plansubmitted.

Partially achieved: Delayed implementation of revised structure and matching and placing of staff.

The process has prompted the total review of the HR Plan which is already finalised and is en- route for approval.

Finalisation of the review of phase 2 of the HR Plan’s progress.

No Target set for the quarter




75

4 HR policies reviewed/ updated in line with broader public services prescripts.

1 HR policy reviewed/updated in line withbroader public servicesprescripts.

Achieved: Three(3) policies were reviewed and adopted at the DBC during this quarter.

8 workshops conducted at head office & regional offices on 4 policies.

2 workshops conducted at head office & regional offices on 4 policies.

Achieved: Eight workshops were conducted in this quarter 6 in Head Office and two (2) in regional offices namely in Western Cape and Limpopo.




76

Finalised supportservices organisationalstructure.

Compile job descriptions and conduct job evaluations for support services organisational structure

Partially achieved : Preliminary investigation completed.

Consultation with the Chief Directorate Communications is still outstanding but has been prioritised




77

Implementation of all the identified organisationalculture surveyrecommendations forDoE for 2013/14 as per the Implementation Plan.

Commence withfacilitation & coordination of the implementationof culture surveyrecommendations as per the Implementation Plan.

Achieved: A proposal for the implementation of phase 3 of the culture survey recommendations were received from the service provider. Supply Chain Procedures currently in process.




78

Vacancy rate reduced to 10%.

Vacancy rate reduced to 13%.

Achieved: The average vacancy rate for the Quarter was 8.33% which is still below 10%

100% of trainingprogrammesimplemented.

40% of training programmes implemented.

Achieved. 86 officials attended 20 different training programmes for the quarter




79

Conducted 4 DBC & 4 multilateral meetings in line with the GPSSBC rules for chambers.

1 DBC & 1 multilateralmeeting held.

Achieved

Training/awarenesssessions on labourrelation conducted.

4 training/awareness sessions on labour relations conducted

Achieved. Workshops in Head Office as well as regional offices were conducted.




80

Turnaround time forfinalisation of grievance& misconduct casesimproved by 30 & 45days, respectively.

Turnaround time forfinalisation of grievance& misconduct casesimproved by 30 & 45days, respectively.

Partially Achieved: Four(4) grievances were received in this quarter of which 3 are completed in less than 35 days the other one is a new case which is only active for 6 days.Three Misconduct cases were received in this quarter of which 2 cases is completed in 45 days and less .

There is only one misconduct case outstanding in which case the department awaits the external investigators final report.




81

4 approved wellnessprogrammesimplemented.

1 approved wellnessprogramme implemented.

Achieved: One wellness event was hosted for the quarter

None

50% of performanceagreements submitted.

50% compliance withthe submission ofperformance agreements.

Achieved: 81% of all performance agreements were received

Submission containing proposed corrective action on route to Director-General




82

1,8% of employment of people with disabilities.

No target set. Figure for the quarter for disability 1.27%

47% of women in middle management.

No target set. Only to be measured at the end of the year.

42,5% of women in SMS positions.

No target set. Current figure is 42.5%




83

12 of MIS reportssubmitted on EE.

Publish 3 MIS reports.

Achieved: Three (3) MIS Reports are published on the intranet, one for every month in the quarter.

None

1 DoL report submitted on EE.

1 EE analysis report to DoL(for 1 October 2013)

Partially Achieved. Submission for and sign off of the reports was forwarded to the DG for approval.

Due date is 1/10/2013 will be reported on in next quarter because on-line capturing will be finalsed in October 2013.

50% of employees in the DoE trained on the Records ManagementPolicy & Procedures.

25% of employees in the DoE trained on the Records ManagementPolicy & Procedures.

Achieved. 27% of employees in the DoE trained on the Records ManagementPolicy & Procedures.




84

29 serviceable vehicles maintained.

29 serviceable vehiclesmaintained.

Achieved: 29 serviceable vehicles maintained throughout the quarter

95% of new candidatesscreened as per theMISS.

No target set. Target is set to be measured at the end of the year.

60 vetting investigationsconducted as per theMISS.

15 vetting investigationsconducted as per theMISS.

Achieved .15 vetting investigations conducted during quarter 2.




85

9 physical security audits conducted as per the MISS.

2 physical security audits conducted as per the MISS.

Achieved: Seven Security Audits were conducted during this quarter .

Approved DoEcommunication strategy (including Action Plan).

Approved DoEcommunication strategy (including Action Plan).

Achieved: Review of SoPs; Business Plan implementation; Utilising the 2011-14 Communication Strategy presented to MANCO in 2011.




86

20 PPPs. 5 PPPs conducted. Achieved: (5) PPPs conducted, ie.(1) KZN visit to the SA Sugar Association and engagement with community; (2) Sod turning ceremony for the Qamata IEC and Public Engagement; (3) Launch of Ulundi IeC and electricity switch-on in Ulundi; (4) Energy Women's Day Round Table at CEF; (5)Nelspruit Opportunities for Women in the energy Sector.




87

4 external communicationcampaigns conducted.

1 external communicationcampaign conducted.

Achieved: (10) Communication campaigns conducted. (1) IEP Stakeholder consultation Workshop; (2) Petroleum Products Act Awareness Workshop; (3) BPSA signing ceremony; (4) Mandela Day Celebration; (5) Launch of the Ulwazi Centre; (6) Gas Amendment Bill Stakeholder consultation; (7) SA Germany Partnership meeting; (9) Energy Post Graduate Conference; (10)NIASA Conference;




88

50 weekly mediamonitoring reports.

13 weekly mediamonitoring reports

Achieved. 13 weekly media reports for the quarter

Daily response tomedia enquiries (24 hrs electronic media; 48 hrs print media).

Daily response tomedia enquiries (24 hrs electronic media; 48 hrs print media).

Achieved. 63 daily response to media enquiries.

36 media statementsissued by the DoE.

9 media statementsissued by the DoE.

Achieved :Target over achieved due to DoE needs of 12 media statements and 13 media invites issued




89

8 structured (face to face) media interactions.

2 structured (face-face) media interactions

Achieved. 12 Media interviews conducted.

8 internal networksessions conducted.

2 internal networksessions conducted.

Not Achieved Budget Constraints

4 internal marketingcampaigns implemented.

1 internal marketingcampaign implemented.

Achieved. 1 internal campaign - SARS Return Season.




90

50 updates conducted on the events calendar.

13 updates conducted on the events calendar.

Achieved :Weekly report on all the updates

13 publicationsdeveloped.

4 publications developed.

Not Achieved Budget Constratints

50 website updatesmade.

13 website updatesmade

Achieved Target exceeded due to DoE needs - 225 updates made

50 intranet updatesmade.

13 intranet updatesmade.

Achieved Target exceeded due to DoE needs – 209 updates made




91

1 updated stakeholderdatabase.

1 updated stakeholderdatabase.

Achieved

4 stakeholderengagements conducted

1 stakeholderengagement conducted

Achieved : 1 stakeholderengagement conducted

8 cluster sessionsattended as per the GCIS schedule.

2 cluster sessionsattended as per the GCIS schedule.

Achieved. 2 cluster sessionsattended as per the GCIS schedule.




92

Implement ResourceCentre Strategy & Plan.

Implement ResourceCentre Strategy & Plan.

Achieved. Implementation of the Resource Centre strategy and plan is on-going.

100% of the followingrequests receivedprocessed withinprescribed or agreedtimeframes:

100% of the followingrequests receivedprocessed withinprescribed or agreedtimeframes:

Achieved - 100% of requests received processed within agreed or prescribed timeframes




93

Draft & vet legislationincluding subordinatelegislation administeredby the DoE;


Achieved. Draft Electricity Regulation Amendment Bill and National Energy Regulator Amendment Bill precertified with comments; submitted to line function for Cabinet approval for tabling in Parliament.. Gas Amendment Bill currently with line function and being consulted with NEDLAC.


Conti



94



Achieved. NNR Bill pending further input from Defence and to be aligned with INIR recommendations. Draft Notice of Commencement of Blending Regulations finalised.




95

Comply with legalprocesses for conclusionof internationalagreements as set outin Chapter 5 of the 2006Manual on ExecutiveActs of the President ofthe RSA;

Comply with legalprocesses for conclusionof internationalagreements as set outin Chapter 5 of the 2006Manual on ExecutiveActs of the President ofthe RSA;

Achieved. All International agreements dealt with in accordance with prescribed process for conclusion.

15 international agreements/ Declaration of Intents received. (Two finalised, two on route to Minister for President's Minute and 11 awaiting further instructions from line function)




96

Vet contracts enteredinto by the DoE & advise on implications;

Vet contracts enteredinto by the DoE & adviseon implications;

Achieved. 15 contracts received and dealt with at legal services

Research & draftlegal opinions;

Research & draftlegal opinions;

Achieved. 12 legal opinions received 10 finalised ,2 awaiting further information and instructions




97

Process appeals tothe Minister for decision;

Process appeals tothe Minister for decision;

Partially Achieved. 35 appeals with controller (for response and record); 17 Finalised by Legal Services in this quarter (5 still en-route to Minister), 25 New Appeals received in this quarter. 8 with legal services for finalisation.




98

Manage all litigationfor & against the DoE/Minister; &

Manage all litigationfor & against the DoE/Minister; &

Achieved. 4 Litigation matters received in this quarter and total of 40 litigation files pending. All matters being attended to in terms of Court Rules through Office of the State Attorney.

Ensure that PAJA &PAIA are complied with.

Ensure that PAJA &PAIA are complied with.

Achieved. 25 Requests received ,15 Finalised and 10 pending finalisation by DIO, all still within prescribed timeframe in terms of PAIA.




99

95% of WAN availabilityachieved.

95% of WAN availability.

Achieved: WAN availability exceeded 98%

95% of server availabilityachieved.

95% of server availability

Achieved: Server availability exceeded 98%

Develop 1 petroleumlicensing lodgmentmodule.

Develop & display 1licensing lodgementmodule as per projectschedule.

Achieved. The Scheduled Inspection Plan and Site Inspection Proof modules have been developed




100

Maintain 1 data line at each of the 9 regional offices.

Install data lines at 2regional offices.

Partially Achieved. Data line maintained at site where installation has been completed.

Since resumption of the VPN project, data lines have been installed at 3 regional offices. Data lines to be installed by 31.12.2013


101


2ndQUARTER PERFORMANCE PROGRAMME 1: SUB-PROGRAMME: FINANCIAL

MANAGEMENT SERVICES

Ms Y ChettyChief Financial Officer

DoE 2nd Qtr. 2013/14 Performance Information ReportProgramme 1: Sub-programme: Financial Management

Services Annual Target Quarterly Target Progress this

Quarter Comments/

Corrective actions

102

4 budget submissionssubmitted to NT.

2 budget submissionssubmitted to NT.

Achieved The main challenge experienced in both the MTEF and AENE processes in the current financial year was the submission of appropriate inputs from branches on time. This had to be followed up vigorously to achieve the deadline date.



Quarter Comments/

Corrective actions

103

12 IYM reports submitted to NT.

3 IYM reports submittedto NT.

Achieved N/A

12 (monthly) budgetexpenditure statementssent to branches.

3 (monthly) budgetexpenditure statementssent to branches.

Achieved N/A

100% of revenuecollected surrendered to NT.

100% of revenuecollected surrenderedto NT.

Achieved Revenue payments to National Revenue Fund account were processed on 26 July 2013, 30 August 2013 and 26 September 2013.



Quarter Comments/

Corrective actions

104

12 debtors age-analysis compiled.

3 debtors age-analysis reports compiled.

Achieved: Three Age Analysis report approved on the 08 July 2013, 06 August 2013 and 04 October 2013.

12 (monthly) bankreconciliations completed & submitted to NT.

3 (monthly) bankreconciliations completed& submitted to NT.

Achieved: Three Bank Recons were submitted to NT on the 06 August 2013, 09 September 2013 & 04 October 2013

12 (monthly) asset reconciliations completed & submitted to NT.

3 asset (monthly)reconciliations performed

Achieved Three Assets Recons were performed and signed off on 05 August 2013, 06 September 2013 and 04 October 2013)



Quarter Comments/

Corrective actions

105

16 asset verificationsconducted.

4 asset verifications conducted.

Achieved Verifications conducted in Durban (16 to 18 September 2013), PE (02 -04 September 2013 ), Welkom (09 -10 September 2013) and Klerksdorp(11 -12 September 2013)

100% of approvedtransfers processed.

100% of approved transfers processed.

Achieved 100% of approved transfers processed



Quarter Comments/

Corrective actions

106

100% of approvedinvoices paid within 30days of receipt.

100% of approvedinvoices paid within 30 days of receipt.

Achieved 100% of approved invoices paid within 30 days of receipt

12 reports submitted to NT

3 (monthly) reports on payments of approved invoices within 30 days ofreceipt submitted to NT by the 7th of each month.

Achieved July report delivered on 7 August 2013, August report delivered on 5 September 2013, September report delivered on 7 October 2013



Quarter Comments/

Corrective actions

107

12 compliance reports submitted to NT.

3 compliance reports submitted to NT.

Achieved Compliance Certificate for July and August submitted on 2013/08/15; 2013/09/18 respectively. Compliance Certificate for September to be submitted by 2013/10/18 due date.

4 interim (quarterly)financial statementssubmitted to NT.

1 interim (quarterly) financial statementsubmitted to NT.

Achieved IFS for 30 June 2013 submitted by 30 July 2013. IFS for 30 September 2013 to be submitted by 30 October 2013 due date.



Quarter Comments/

Corrective actions

108

2 AFSs submitted to NT & AGSA.

1 draft AFS submitted to NT & AGSA by 31 May.

Achieved Submitted copy of Audited AFS, and AG audit report and confirmation of review of template by AG

100% alignment of SCM policies to NT SCM prescripts.

SCM policy aligned as per instruction notes issued by NT, where applicable.

Achieved Supply chain management policy approved on 30 August 2013



Quarter Comments/

Corrective actions

109

100% compliance to the SCM checklist

100% compliance to SCM policies &prescripts, i.e. orders generated only after SCM checklist criteria are met.

Achieved SCM Compliance is checked prior to the generating of the purchase orders

2 awareness & training sessions conducted onSCM matters.

1 awareness & trainingsession on SCM matters conducted.

Achieved Training was conducted on 11 September 2013

12 (monthly) reviews of commitment & accrual register conducted

3 (monthly) reviews of commitment & accrual register conducted.

Achieved N/A



Quarter Comments/

Corrective actions

110

1 procurement plansubmitted to NT.

N/A N/A N/A

1 update performed to the supplier database.

Invitation of suppliers to register on the supplier database by 30 September 2013.

Achieved N/A

4 warehouse inventory counts & reconciliationsperformed.

1 warehouse inventory count & reconciliation performed.

Achieved N/A


111

PCE PRESENTATION ON THE 2ndQUARTER FINANCIAL PERFORMANCE

Presented by: Office the CFO

PRESENTATION LAYOUT

2nd Quarter Financial Performance:Overview per Economic ClassificationTop 5 Major Cost Drivers (Goods & Services)Overview per ProgrammeTransfer Payment Schedule for 2013/14

112

2013/14: 2nd QUARTER FINANCIAL PERFORMANCE Overview – per Economic Classification

113

Vote 29: Energy

{A} {B} {C} {D} {E}2013/14 2013/14 2013/14 2013/14 2013/14 2013/14

Adjusted Q2 Q2 Q2 Q2 Adjusted B.

Budget Budget Actual VARIANCE VARIANCE Expended

R’000 R’000 R’000 R’000 % %

Total Energy

6,503,244

3,712,069

2,838,186

873,883 23.54% 43.64%

Compensation of Employees

242,562

123,782

112,523

11,259 9.10% 46.39%

Goods & Services

217,745

98,900

64,778

34,122 34.50% 29.75%Transfers & Subsidies

6,034,264

3,486,078

2,657,873

828,205 23.76% 44.05%

Payments for Capital Assets

8,673

3,309

3,012

297 8.98% 34.73%

114

2nd QUARTER FINANCIAL PERFORMANCE FOR 2013/14• The Department’s 2013/14 main appropriation of R6.598 billion has been

reduced by R94.928 million to an adjusted total of R6.503 billion• Total expenditure for quarter two was planned or estimated at R3.7

billion and the actual amount spent was a total R2.8 billion (76.46%).• The budget variance of R873.9 million (23.54%) is mainly in the following

areas:

Compensation of employees: • R11.26 million (9.1%) under budget mainly attributable to vacancies Outstanding Expenditure Filling of vacancies –mainly the additional vacancies following the

prioritization of positions by the DODC and the final approval by the Finance Committee;

Payments for unutilized leave from the 2012 leave cycle.

Goods & services:• Projected expenditure in the 2nd quarter, represented by actual cash

withdrawn from the National Revenue Fund, was expected to amount to a total of R98.9 million.

115

2nd QUARTER FINANCIAL PERFORMANCE FOR 2013/14Goods and services:

•However, actual expenditure at the close of Q2 was a total of R64.78 million resulting in a variance of R34.12 million (34.5%) •The unspent funds have mainly been attributable to projects, which at the beginning of the financial year were projected to have been underway as at the 2nd quarter. These projects could not commence due to delays in procurement processes and or delays in initiating the procurement process (mainly due to implementation time changes).

Transfer payments:•R828.2 million (23.76%) unspent mainly attributable to the performance within the EEDSM-Eskom project which contributed R767.9 million or (93%) to this total variance•The spending in the EEDSM-Eskom project was affected by the challenges experienced in finalizing the 2013/14 implementation contract with Eskom, the implementing agent.•All challenges have since been resolved and transfers to Eskom are to commence in the following periods.

MAJOR COST DRIVERS (Top 5): GOODS AND SERVICES

116

COST DRIVERS - GOODS AND SERVICES

2013/14

2nd Quarter

Rand thousand R'000Travel and subsistence 23,886Operating leases 9,173Consultants and professional services: Business and advisory services 5,106Computer services 4,852Communication 3,220Total 46,237

• Total expenditure for Goods & services is R64.78 m

• The top 5 costs accounts for 71% of the total spend• Spending on travel and subsistence constituted

37% of the total Departments goods and services expenditure, 50% being accounted by the Administration programme

• Operating leases is mainly for office accommodation lease rentals for head office and all regional offices

• 57% of total computer services went to SITA for software licenses

• Communication spend is dominated by mobile & 3G fees

2013/14: 2nd QUARTER FINANCIAL PERFORMANCE per Programme

117

Vote 29: Energy

{A} {B} {C} {D} {E} 13/14

Adjusted Q2 Q2 Q2 Q2

13/14Adjusted B.ExpendedBudget Budget Actual VARIANCE VARIANCE

R’000 R’000 R’000 R’000 % %

TOTAL:

6,503,244

3,712,069

2,838,186

873,883 23.54% 43.64%

Administration

219,628

100,771

99,372 1,399 1.39% 45.25%

Energy Policy & Planning 47,201

20,297

19,953

344 1.69% 42.27%

Energy Regulation 43,315

23,914

10,660

13,254 55.42% 24.61%

Electrification & Energy Programmes Management

3,978,028

2,064,675

2,003,883

60,792 2.94% 50.37%Nuclear Energy & Regulation

708,798

634,037

620,652

13,385 2.11% 87.56%

Clean Energy 1,506,274

868,375

83,666

784,709 90.37% 5.55%

Programme 1: Administration

118

Vote 29: Energy

{A} {B} {C} {D} {E} 2013/14 2013/14 2013/14 2013/14 2013/14 2013/14 Original YTD YTD YTD YTD Adjusted B.Budget Budget Actual VARIANCE VARIANCE ExpendedR’000 R’000 R’000 R’000 % %

Total

219,628

100,771

99,372 1,399 1.39% 45.25%

Compensation of employees

112,947

57,638

53,402

4,236 7.35% 47.28%

Goods and Services 97,932

39,762

42,839

-3,077 -7.74% 43.74%

Transfers and subsidies

356

188

127

61 32.45% 35.67%

Payments for capital assets

8,393 3,183

3,004

179 5.62% 35.79%

• Compensation of employees: Variance is mainly due to vacancies. The Department, is currently doing all that is possible to fast track the filling of vacancies. The Department is also in discussions with the DPSA regarding some positions brought about by the new structure, e.g. the financial accounting & reporting position in the CFO branch.

• Goods and services: Mainly affected by the additional resources required in the Minister’s office, following the announced changes in that office. This variance is however off-set by the unspent total in compensation of employees.

Programme 2: Energy Policy and Planning

119

Vote 29: Energy


Total 47,201

20,297

19,953

344 1.69% 42.27%


30,629

16,743

14,288

2,455 14.66% 46.65%


3,554

5,657

-2,103 -59.17% 34.14%


-

-

8

-8 0.00% 0.00%


-

-

-

- 0.00% 0.00%

• The over spend in Goods and services is attributable to the number of IEP stakeholder engagement workshops which were undertaken. This variance is off-set by the under-spending in compensation of employees.

Programme 3: Energy Regulation

120

Vote 29: Energy


Total 43,315

23,914

10,660

13,254 55.42% 24.61%


20,072

12,278

9,474

2,804 22.84% 47.20%


11,636

1,133

10,503 90.26% 4.87%


-

-

53

-53 0.00% 0.00%


-

-

-

- 0.00% 0.00%

• Compensation of employees: Variance is mainly the result of vacancies following the matching and placing process• Goods & services: The process of appointing a service provider to undertake the fuel specification testing project

was delayed, this project is, however, now ready to commence.

Prog.4: Electrification & Energy Programmes Management

121

Vote 29: Energy


Total

3,978,028

2,064,675

2,003,883

60,792 2.94% 50.37%Compensation of employees

53,660

24,270

23,167

1,103

4.54% 43.17%


13,214

9,169

4,045

30.61% 31.51%


3,895,023

2,027,065

1,971,547

55,518 2.74% 50.62%


250 126-

126

0.00% 0.00%

• Compensation of employees: Variance due to vacancies, the recruitment process is being finalized• Goods and services: The reported saving is earmarked for electrification switch-on events and community outreach

campaigns scheduled for later, due to the availability of the President, Minister and Deputy Minister. • Transfer payments: The variance is mainly attributable to the performance of the Non-grid electrification project,

which is R33.3 million behind in spending. The delay in the finalization of service providers’ contracts contributed to the variance. The balance of the variance is due to the misalignment between drawings schedules, which will be corrected in November.

Programme 5: Nuclear Energy and Regulation

122

Vote 29: Energy


Total

708,798

634,037

620,652


11,772

6,373

5,064

1,309 20.54% 43.02%


16,562

4,213

12,349 74.56% 18.23%


673,919

611,102

611,375

-273 -0.04% 90.72%Payments for capital assets

-

-

-

- 0.00% 0.00%

• Goods and services: Variance is due to delayed projects, i.e. the nuclear awareness campaigns, study on the cost of nuclear power and advisory services on the financing options, models and solutions for the new nuclear build programme. The delay was caused by the necessary approvals required and delays associated with procurement processes.

Programme 6: Clean Energy

123

Vote 29: Energy


Total

1,506,274

868,375

83,666


13,482

6,480

7,128

-648 -10.00% 52.87%


14,172

1,767

12,405 87.53% 6.36%


1,464,966

847,723

74,763

772,960 91.18% 5.10%Payments for capital assets

30

-

8

-8 0.00% 0.00%

• Goods and services: The planned Clean energy/energy efficiency awareness campaigns could not commence as planned due to conflicting engagements, resulting in the above variance. The saving from this project, which cannot be utilized, will be redirected to other priorities.

• Transfers and subsidies: The reported variance, R772.96 million, is mainly as a result of the spending in the EEDSM-Eskom programme which reported a budget under spending of R767.9 million. Transfers to Eskom were affected by the delayed finalization of the implementation contract. A total of R5.06 million was withheld from 12 municipalities due to them failing to comply with the DORA requirements.

2nd QUARTER TRANSFER PAYMENT SCHEDULE FOR 2013/14

124

Programme Projects & Entities

{A} {B} {C} {D} {E}2013/14 2013/14 2013/14 2013/14 2013/14

Adjusted YTD YTD YTD YTDBudget Budget Actual Variance Variance R’000 R’000 R’000 R’000 %

Programme 6 EEDSM - Municipalities 180,722 12,651 7,591 5,060 40.00%EEDSM – Eskom 1,149,900 767,900 - 767,900 100.00%SANEDI 134,344 67,172 67,172 - 0.00%

Programme 4 INEP - Municipalities 1,634,772 855,409 833,014 22,395 2.62%INEP - Eskom 2,141,027 1,126,956 1,126,956 - 0.00%INEP – Non-grid 119,224 44,700 11,435 33,265 74.42%Dept Agencies - gifts - - 104 -104 0.00%

Programme 5 NNR 48,360 36,848 36,848 - 0.00% NECSA 592,182 562,572 562,572 - 0.00% IAEA- Int. fees 13,577 - 11,955 -11,955 0.00% Waste Disposal Ins 19,800 11,682 - 11,682 100.00%Programme 1,2,3

Households

356 188 226 -38 -20.21%

Total Transfers 6,034,264 3,486,078 2,657,873 828,205 23.76%

2nd QUARTER TRANSFER PAYMENT SCHEDULE FOR 2013/14

125

YTD, the transfer payments reflected a budget under spend of R828.2 million (23.76%) mainly due to the following:

•EEDSM –Eskom: -R767.9 (100%) not transferred to Eskom due to delays in finalizing the implementation contract.

•INEP Non-grid: -R33.27 million (74.4%) remained unspent due to delays with the extension of contracts.

•NRAWDI: -R11.68 million (100%) not transferred due to the delay in establishing the institute’s board.

The variance reflected under the INEP-Municipalities project is due to the difference between the Drawings schedule and the schedule being used by INEP.

The variance in Programme 5, Nuclear Energy, is as a result of the IAEA payment from the previous financial year which had to be paid. This will be reimbursed by savings.

Thank YouKe ya leboga

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