Tampa BSides - Chef's Tour of Microsoft Security Adoption Framework (SAF)
2010 – 11 mtef strategic plan(91p)
1. 2010 – 11 MTEF STRATEGIC PLAN
PRESENTATION TO THE
SELECT COMMITTEE ON ECONOMIC
DEVELOPMENT
Presentation by : Ms N Magubane
Director General
13 APRIL 2010
1
2. DOE TEAM AND PRESENTATION
OUTLINE
• Team
Presentation
• What informed out strategic plan
• Programme 1 - Administration
• Update on the split of the DME
• Programme 2 – Hydrocarbons and Energy
Planning
• Programme 3 – Electricity, Nuclear and
Clean Energy
• Budget allocation
• Conclusion
2
3. WHAT INFORMS OUR STRATEGIC PLAN?
• Government priorities
• State of the Nation Address
• National Budget Speech
• Budget Vote Speech
• 2010 Cabinet Lekgotla’s Resolution
• Sector specific challenges
3
4. WHAT INFORMS OUR STRATEGIC PLAN?
(CONT.)
• Government priorities:
– Creation of decent work and sustainable
livelihoods
– Education
– Health
– Rural development, food security and land reform
– The fight against crime and corruption
4
5. WHAT INFORMS OUR STRATEGIC PLAN?
(CONT.)
• State of the Nation Address
– Over the next 3 years Govt. will spend R846
billion on public investment.
– Establishment of the Inter-Ministerial Committee
on Energy, to develop a 20 year Integrated
Resource plan
– Participation of Independent Power Producers
and protecting the poor from rising electricity
prices.
– Establishment of the Independent System
Operator, separate from Eskom
5
6. WHAT INFORMS OUR STRATEGIC PLAN?
(CONT.)
• National Budget Vote Speech
– Climate change and global energy supply
– Protection of the poor from rising cost of
electricity
– Public sector investments
6
7. DoE BUDGET SPEECH - 2009
• Review of the national strategic fuel stocks policy
(31 March 2010)
• Development of an Integrated Energy Plan
– (31 March 2010)
• Review of the fuel standards and specifications
– ( June 2010)
• Establish South African National Energy
Development Institute ( 31 March 2010)
• Review of the Liquid Fuels Charter (31 March
2010)
7
8. DoE BUDGET SPEECH - 2009
• Establish the National Radioactive Waste
Disposal Institute (31 March 2010)
• Conversion of the SAFARI reactor from using
Highly Enriched Uranium to Low Enriched
Uranium by NECSA (30 September 2009)
• Promotion of the energy mix - Independent
Power Producers (30 August 2009)
• Roll-out of one million solar water heaters in
households and commercial buildings over a
period of five years.
8
9. DoE BUDGET SPEECH - 2009
• Formalise engagement with the Clinton
Foundation, to facilitate the development of an
Industrial Energy Park concept, focussing on
concentrated solar power (31 March 2010)
• Establishment of the National Radioactive Waste
Disposal Institute ( 31 march 2010)
• Commissioning of the 400 MW of wind power
through the independent power producers, over
the next three years (31 March 2012)
• Gazetting and/or publishing of the integrated
resource plan or country.
9
10. DoE BUDGET SPEECH - 2009
• Displacement of 2% of crude oil based fuels with
bio-fuels.
• Develop an appropriate pricing policy framework
to structure our tariff regime such that the
indigent sections of our communities are
insulated from increasing electricity tariffs.
• Launching of the rural electrification projects,
Engcobo, Inxuba Yethemba &, Umhlonhlo that
will ensure R 170 million investment in the
infrastructure development of Chris Hani and
Alfred Nzo District municipalities (30 September
2009)
10
11. JANUARY CABINET LEKGOTLA
RESOLUTIONS 2010
• Integrated infrastructure plan
• Implementation of the industrial policy
• 2010 FIFA World Cup – progress, challenges and
interventions required
• Inter - cluster activities
11
12. OBJECTIVES OF ENERGY SECTOR
• Increasing access to affordable energy services
• Improving energy governance
• Stimulating economic development
• Managing energy – related environmental and
health impacts
• Securing supply through diversity
12
13. PRESSURES FACED BY THE SECTOR
Energy International
security cooperation
Access to
energy Climate change
(Clean energy)
Poor
economic Skills and
regulation Energy sector capacity
Demand
Diversity of
management
supply
Upward Safety
pressure on
cost of energy
13
15. TABLE OF CONTENTS
• Introduction
• Strategic Overview and Objectives
• Organizational environment
• Policy Development
• Key Focus Areas
• Resource plan
• Conclusion
15
16. MANDATE & MISSION
The revised mandate, mission and vision of
the DoE:
MANDATE
– Ensure secure and sustainable provision of
energy for socio-economic development
MISSION
– To regulate and transform the sector for the
provision of secure, sustainable and affordable
energy
16
17. VISION
In line with government’s planning for
both medium and long term, we
developed visions for both horizons
VISION 2014
– A transformed and sustainable energy
sector with universal access to modern
energy carriers for all by 2010
VISION 2025
– Improving our energy mix by having 30% of
clean energy by 2025
17
18. DoE STRATEGIC OBJECTIVES
Our strategic plan seeks to deliver results along the
following eight strategic objectives:
• Ensure energy security.
• Achieve universal access and transform the energy
sector.
• Regulate the energy sector.
• Effective and efficient service delivery.
• Optimal utilisation of energy resources.
• Ensure sustainable development.
• Enhance DoE culture, systems and people.
• Promote corporate governance.
18
19. ORGANISATIONAL ENVIRONMENT
• Budget split – 30/70 between DoE and DMR
for support services – although functions have
been duplicated.
• Impact of lesser budget – an interim
‘establishing’ structure that ensures all critical
positions to establish a new department are
filled immediately.
• Co-operation of SOEs – assistance with
setting up of the new department.
• First phase of capacitating DoE completed –
i.e matching and placement of DME personnel.
19
20. ORGANISATIONAL ENVIRONMENT
• Second phase – advertising and filling of vacant
posts has started, plans to complete by end of
the first quarter.
• Additional capacity to be obtained with the mid-
term adjustments later in the year.
• Line function has maintained the two branches
of Hydrocarbon and Energy Planning and
Electricity, Nuclear and Clean Energy.
• Plans for gradual increase of the line function
capacity to realise the full structure of the new
DoE by end of the MTEF.
20
21. POLICY DEVELOPMENT
Legislative focus for this year:
• The Seventeenth Constitutional Amendment Bill.
• The REDs establishment Bill – establish efficient
regional electricity distributors.
• The Electricity Regulation Amendment Bill –
appropriation of land for electricity infrastructure,
provision for the establishment of ISMO.
• New Generation/IPP Regulation – provision of
regulatory intervention to level the playing field in the
electricity generation sector.
21
22. POLICY DEVELOPMENT
Legislative focus for this year:
• The Petroleum Products Amendment Act, 2003 –
address non-compliance in the liquid fuels sector.
• The National Energy Act, 2008 – empowers the
Minister of Energy to execute certain initiatives to
achieve security of supply, develop regulations
for the provision of energy data, etc.
• Review of the fuel specification regulation – to
advance to higher and cleaner fuels.
22
24. 2010/11 MTEF STRATEGIC PLAN
PROGRAMME 1
ADMINISTRATION
PROGRAMME 4
STATE OWNED ENTITIES
Mrs. T.N Zungu
24
25. PROGRAMME FOCUS AREAS
SUPPORT SERVICES (Programme 1)
• Main focus is on the establishment of the new
department – operational structures, capacity and
provision of skills.
• Setting up of governance structures – internal
audit functions, audit committee, risk
management and fraud prevention, procurement
and finance committees, etc.
• Review of the international agreements – aligning
them to government’s objectives.
25
26. PROGRAMME FOCUS AREAS
SUPPORT SERVICES (Programme 1)cont
• Communication strategy – profiling the
department as the custodian of the country’s
energy security.
• Strengthening our SOE oversight function –
improving processes, alignments and capacity.
• Finance – complying with financial legislation
from day 1.
26
27. PROGRAMME FOCUS AREAS
SUPPORT SERVICES (Programme 1)cont
• Communication strategy – profiling the
department as the custodian of the country’s
energy security.
• Strengthening our SOE oversight function –
improving processes, alignments and capacity.
• Finance – complying with financial legislation
from day 1.
27
28. SOEs REPORTING TO THE ENERGY
MINISTER
• Research and Development
– CEF (PTY) Ltd – CEF group of companies made up of
entities with commercial, strategic, licensing and
developmental roles. Has 5 operating subsidies.
Involved in the search for appropriate energy needs of
SA, SADEC and Sub-Saharan Africa region.
– NECSA – promotes research and development in the
field of nuclear energy and radiations science.
28
29. SOEs REPORTING TO THE ENERGY
MINISTER
Regulators
• National Energy Regulator of SA (NERSA) –
responsible for the issuing of licenses, setting
and/or approving tariffs and prices, monitoring
and enforcing compliance with license conditions.
• National Nuclear Regulator (NNR) – regulates
the diverse activities in the nuclear sector, protect
persons, property and environment against
nuclear damage.
29
30. SOEs REPORTING TO THE ENERGY
MINISTER
Other
• EDI Holdings – restructuring of the existing
electricity distribution entities into 6 financially
viable Regional Electricity Distributors (REDs).
30
31. SOEs REPORTING TO THE ENERGY
MINISTER
• Research and Development
– CEF (PTY) Ltd – CEF group of companies made up of
entities with commercial, strategic, licensing and
developmental roles. Has 5 operating subsidies.
Involved in the search for appropriate energy needs of
SA, SADEC and Sub-Saharan Africa region.
– NECSA – promotes research and development in the
field of nuclear energy and radiations science.
31
32. SOEs REPORTING TO THE ENERGY
MINISTER
Other
• EDI Holdings – restructuring of the existing
electricity distribution entities into 6 financially
viable Regional Electricity Distributors (REDs).
32
33. SOE OVERSIGHT
Introduction
• SOEs are the extended arm of government and
need to advance government priorities.
• SOEs are established as instruments of socio-
economic advancement.
• SOEs should have the means to contribute to the
improvement of the standard of living of the
citizens of our country – create sustainable
economic and social benefits.
33
34. DOE OVERSIGHT ROLE
• Alignment of strategies and plans -
• Ensure the balance between government
priorities and commercial priorities of these
entities.
• Shareholder board appointments
• Board participation by departmental
representatives
• Monitoring and evaluation of entities’
performance
• Oversight on the electrification programme – as
defined in the Division of Revenue Act. Applies to
both Eskom (schedule 7) and the Municipalities
(schedule 6)
34
36. CONCLUSION
In conclusion, we want to invest in building a
formidable TEAM ENERGY that is able to
effectively discharge our responsibilities, serve
the masses of our people and make a
difference in their lives.
36
39. BACKGROUND/OVERVIEW
May 2009 – President announced the split of DME into two
departments; viz Department of Energy and Mineral Resources;
National Macro Organization Steering Committee (NMOS) was
established to oversee the process of re-organizing government
departments;
Various work-streams were formed to focus on specific functions
such as, Organizational Scoping HR audits, Change Management
and Communication,; Labour and Legal Services; Infrastructure and
Assets; ICT; Finance and Budgets.
An internal steering committee for the split was established and work
stream leaders were appointed; and
A consolidated transitional plan was compiled and progress reports
by Work streams are being submitted to the Departmental Steering
Committee every second week.
39
40. UPDATE ON THE SPLIT
Departmental structures have been designed and
approved by both Executing Authorities (i.e.
Ministers);
Allocation of funding for newly created positions
has been obtained, but for critical posts only; and
All new positions in Support Services have been job
profiled and evaluated.
40
41. UPDATE ON THE SPLIT
The matching and placement of all employees was
finalised on 12/03/2010;
Formal placement of all employees on separate
Persal systems was finalised on 15/03/2010 ( DOE &
DMR );
Budget systems were posted on 23/3/2010 and the
first & successful test salary run was done on the
02/04/2010; and
Reports are continuously generated and any
anomalies between BAS and Persal are being
attended to prior to the 15/04/2010.
41
42. UPDATE ON THE SPLIT
Recommendations for placement has been
considered by both DGs and approval for
placements has been given;
Formal placement letters have been issued to all
affected employees in Support Services;
Confirmation/acceptance of placements are being
done in writing;
In cases where people are not satisfied with the
results of the placement, an appeal process will
commence; and
42
43. UPDATE ON THE SPLIT
All vacant (funded) positions are being advertised in
the National media in line with the Public Service
Regulations;
All employees that have been placed in both Dept,
are eligible to apply for higher/ lateral transfers; and
Advertising of positions is being done in line with
the departmental Recruitment and Selection policy.
43
44. UPDATE ON THE SPLIT
Both Departments have been created on Persal;
Identification and grouping of HR Administration
activities for both Departments was finalised by 31
March 2010 and implemented on 1 April 2010 (e.g.
Service benefits; leave; Medical Aid Schemes;
Subsidies; etc);
A Review of the current DME HR Plan was
commenced on 1st April 2010 and will be finalised
by end of June 2010; and
A Review of the current HR Policies, practices and
delegations will also commence w.e.f 1 April 2010
and finalised by end of May 2010.
44
46. 2010/11 MTEF STRATEGIC PLAN
PROGRAMME 2
HYDROCARBONS & ENERGY
PLANNING
Mr. T. B Maqubela
46
47. PROGRAMME FOCUS AREAS
Hydrocarbons and Energy Planning
• Integrated Energy Planning Strategy – provision
of an integrated energy plan that recognises the
interdependence of all forms of energy, by the
end of the year.
• Fuel specifications & standards
• LPG price regulation – support greater use of
LPG for thermal purposes.
• Biofuels pricing framework – development of a
framework to guide the implementation of the
biofuels strategy to expand the biofuels market.
47
48. POLICY DEVELOPMENT
• The Petroleum Products Amendment Act, 2003 –
improved governance of the petroleum sector.
• Review Charter that is annexed to the Act; provide waivers
i.r.o. fuel specifications; etc.
• 2010/11: Approval for public consultation
• The National Energy Act, 2008 – to enable
integrated energy planning and ensure energy
security
• 2010/11: Will commence with promulgation of Regulations for
mandatory provision of data.
• Review fuel specification & standards – Roadmap for
tightening of specs and standards for cleaner fuels in
pursuance of improved SHEQ
• Opposition by oil majors
48
49. PROGRAMME FOCUS AREAS
• Integrated Energy Plan (IEP) – to develop integrated
short-, medium- and long-term plans for the energy sector
in South Africa taking into cognisance the convergence of
energy carriers, plethora of technologies and that energy
exists everywhere
• LPG price regulation – support greater use of LPG for
thermal purposes.
• Biofuels pricing framework – to guide and enable the
implementation of the Biofuels Strategy through
appropriate pricing and manufacturer assistance
mechanisms
• Strengthen monitoring and enforcement of compliance
49
50. PROGRAMME FOCUS AREAS – (CONT.)
• Review of the Liquid Fuels Charter – to usher in a new
empowerment dispensation for the Liquid Fuels industry
• Revision of Strategic stocks policy - framework for the
storage of strategic and commercial fuel stocks.
• Current economic environment not conducive
• Development of an energy modeling system for South
Africa as a tool to develop an IEP
• Development of an appropriate pricing mechanism of
Regulatory Accounting throughout the liquid fuels value
chain to promote the appropriate behaviour i.r.o.
investments
• Develop integrated energy centres (IeCs) – to contribute
to the eradication of energy poverty
50
51. GENERAL CHALLENGES
• Budgetary constraints
• Inadequate support for line function, particularly ICT
systems
• Personnel;
• Data availability
• Understanding of energy issues; and
• External factors (e.g. energy availability and /or
pricing issues that could shift our focus during the
year).
51
52. 2010/11 MTEF STRATEGIC PLAN
PROGRAMME 3
ELECTRICITY, NUCLEAR & CLEAN
ENERGY
Mr. O. Aphane
52
53. ELECTRICITY NUCLEAR & CLEAN ENERGY
BRANCH
• Electricity
• Nuclear Energy
• Clean Energy
• Integrated National Electrification Programme (INEP)
53
54. ELECTRICITY
STRATEGIC OBJECTIVES
• To create and maintain a secure balance between
electricity supply and demand,
• To diversify primary energy mix in the new build
program,
• To create incentives for energy efficiency and
demand side management programs,
• To create a sustainable electricity distribution
industry.
54
55. ELECTRICITY -PROGRAMMES
• Integrated Resource Planning
• Private sector participation in electricity
generation sector.
• Energy Efficiency and Demand Side
Management Scheme (Standard Offer)
• Distribution Asset Rehabilitation
• Establish Regional Electricity Distributors
55
56. ELECTRICITY IRP
• Electricity supply-demand matching plan for next
20 years.
• Plan to provide for diverse technologies and
primary energy sources.
• Government policy objective for the sector
– Mitigate carbon emissions
– Supply adequacy
– Diversify generations
– Imports from neighbouring countries
56
57. ELECTRICITY – PRIVATE SECTOR
PARTICIPATION
• Introduce private generators (Independent Power
Producers) in both fossil fuel and renewable
energy.
• Enablers:
– Establish Independent System and Market Operator.
(short-term is a ring-fenced entity within Eskom)
– Long term ISMO – introduce legislation to create
ISMO as public entity with BoD.
– Power Purchase Arrangement risk allocation
– Transmission Access Code
57
58. ELECTRICITY – STANDARD OFFER
• Rebate linked to energy (kWh) savings.
• Independent of technology deployed to achieve
savings.
• Residential (SWH), Industrial (PCP) and
Commercial (Improved Building Insulation)
• Linked to other outcomes – (i.e. sustainable job
creation)
58
59. ELECTRICITY – DISTRIBUTION INDUSTRY
• Intensive network rehabilitation program.
• Introduce regulations to ensure sound asset
maintenance going forward.
• Funded in part from fiscal and in part from tariff.
• One of key outcomes – Improve municipalities
technical skills.
59
60. ELECTRICITY – DISTRIBUTION INDUSTRY
• 17th Constitutional amendment completed.
• Regional Electricity Distribution establishment bill.
• Establish REDs (wall-to-wall).
60
61. NUCLEAR ENERGY
• To improve governance of the nuclear sector,
specifically in relation to nuclear safety, nuclear
non-proliferation and nuclear technology.
• Nuclear Energy Policy, 2008
• Decision regarding new nuclear power plants
• Nuclear Fuel Cycle
• Regulatory Framework
• Skills and Training
• Stakeholder engagement and communication
• Industrialization and localization
• Funding and procurement process
61
62. NUCLEAR ENERGY…
• Radioactive Waste Management Policy,2005
– Establish the Disposal Institute
• Develop Business Plan and Budget
• Appointment of Board and CEO
• Transitional Arrangements with Necsa
– National Committee on Radwaste Management
• Review of Operator’s radioactive waste management
plans as per policy
62
63. NUCLEAR ENERGY (CONT.)
• Nuclear Security and Non-Proliferation (Nuclear
Energy Act)
– Develop the Regulations to introduce the Design
Basis Threat (DBT)
– Development of Nuclear Security regulations
63
64. NUCLEAR ENERGY (CONT.)
• Establishment of the African Commission on Nuclear
Energy (Africa Nuclear Weapons Free-zone,
Pelindaba Treaty, in force July 2009)
– AU calling for Conference of State Parties on 15-17 April
to address:
• Composition of Secretariat
• Location of Secretariat – RSA has offered to host
• Role and functions of Secretariat
• Funding – scale of assessment
64
66. ENERGY EFFICIECNY
• Finalization of the Energy Efficiency (2005)
– Energy Efficiency Strategy (2005)
• A Final Energy Demand Reduction of 12% by 2015, with
industrial sector contributing 15%
• Review of the Energy Efficiency Accord
• Development of the Monitoring and Verification system
for Energy Efficiency and Demand Side Management.
• Implementation of the
– Municipal Energy Efficiency projects
– Public Buildings Energy Efficiency Projects
• Regulation of criteria for Tax Incentives applicability on
energy efficiency to minimize double dipping
• Energy Efficiency and Demand Side Management
Campaigns to enhance uptake of energy efficiency
initiatives.
66
67. RENEWABLE ENERGY
• Finalization of the Renewable Energy Policy (2003)
– Contribution of 10 000GWh from Renewable Energy
sources to RSA energy mix by 2013
• Implementation of the National Solar Water heating
Programme to install 1 000 000 by 2014.
• Operationalisation of the Working for Energy Programme
(WfE)
• Implementation of the South African Wind Energy
Programme (SAWEP)
• Implementation of the Biofuels Strategy
• Implementation of Tradable Renewable Energy Certificates
(TRECs)
• Operationalisation of IRENA engagements
67
68. ENVIRONMENTAL MANAGEMENT AND DNA
• Development of the Department’s Environmental
Impact Management Plan .
• Finalization of the Climate Change Strategy
• Support the Commission on Sustainable
Development (CSD) led by the DEA
• Support the United Nations Framework on
Sustainable Development (UNFCCC) led by the
DEA
• Promotion of DNA to have as many CDM
projects registered as possible
68
69. INTEGRATED NATIONAL
ELECTRIFICATION PROGRAMME
• To manage the electrification planning, funding and
implementation process, with the aim of eliminating
the electrification backlog so as to reach Universal
Access
• Our Focus areas
– Managing the electrification planning process
– Managing the electrification funding allocation process
– Managing the electrification implementation process
– Monitoring the INEP in line with the Energy White
Paper,
– the DoRA, PFMA, Electricity Regulation Act, OHS Act
etc.
69
70. ELECTRICITY VALUE CHAIN
GENERATION
Electricity is
Generated by burning
of fossil fuels (coal, oil,
or natural gas), use of 2 TRANSMISSION MUNICIPALITIES
nuclear technology
SUBSTATIONS
and hydro capability
1
TRANSMISSION LINES
TRANSMISSION (400/275 kV) 3
POWER STATIONS High Voltage electricity is carried DISTRIBUTION
DISTRIBUTION
between Generation and required LINES
(132/33 kV)
Distribution through Transmission
networks (or Transmission grids)
The distribution networks
DISTRIBUTION SUBSTATIONS
collect ‘stepped down’
electricity from the
transmission networks and
deliver it to Redistributors /End
Users
The voltage levels of electricity are further
transformed to meet Distribution requirements
SERVICE CONNECTION
RETICULATION HV LINE
(11 & 22kV) Customer consumption is measured at the
point of supply in KWh. This information is
70
RETICULATION LV LINE used to measure and bill consumption
(380/220V) levels utilised/sold
72. FUNDING REQUIREMENT FOR UNIVERSAL
ACCESS
BULK
FINANCIAL INFRASTRUCTUR REFURBISHMENT/
YEAR CONNECTIONS E REHABILITATION TOTAL PER YEAR
2009-10 R 4,554,560,933 R 1,066,368,279 R 666,018,943 R 6,286,948,156
2010-11 R 4,625,652,151 R 2,087,695,645 R 759,261,595 R 7,472,609,392
2011-12 R 4,698,165,194 R 2,109,449,558 R 865,558,218 R 7,673,172,971
2012-13 R 4,772,128,498 R 2,131,638,549 R 986,736,368.92 R 7,890,503,417
Totals R 18,650,506,778 R 6,465,571,031 R 6,465,571,031 R 29,323,233,937
72
74. MUNICIPAL PROGRAMME 2009/10
Monthly report as 28 FEBRUARY 2010
Transfers Expenditure Expenditure
Allocated Transferred Expenditure
Summary by province as % as % as %
(R'000) to date to date
allocation allocation transferred
Eastern Cape 234,300 219,570 95% 129,162 55% 59%
Free State 88,456 66,254 76% 54,934 62% 83%
Gauteng 82,580 58,106 78% 54,665 66% 94%
KwaZulu Natal 123,303 39,613 33% 28,396 23% 72%
Limpopo 139,761 114,745 82% 69,483 50% 61%
Mpumalanga 98,436 89,562 95% 33,640 34% 38%
Northern Cape 28,675 25,819 98% 12,895 45% 50%
North West 59,122 11,662 21% 7,658 13% 66%
Western Cape 78,324 77,521 86% 42,204 54% 64%
TOTAL 932,957 691,754 76% 433,037 46% 63%
74
75. MUNICIPAL PROGRAMME 2009/10
as at 28 February 2010
Province Name Revised Connections Actual Year to date
Connections- Connections
February-2010
Eastern Cape 6,904 0 5,323
Free State 2,237 0 4,011
Gauteng 4,474 0 4,043
Kwazulu/Natal 17,091 0 16,832
Limpopo 7,384 718 6,200
Mpumalaga 3,019 0 1,522
North West 2,184 0 1,040
Northern Cape 349 0 353
Western Cape 4,645 282 3,763
Total 48,287 1,000 43,087
75
76. MUNICIPAL PROGRAMME 2008/9
Transfers from Spent by Percentage Percentage spent
National municipality transfers
Province
Eastern Cape 137,266 137,266 100.00% 90.70%
Free State 21,791 21,323 100.00% 157.73%
Gauteng 128,847 127,069 100.00% 98.62%
KwaZulu Natal 94,394 93,521 100.00% 93.65%
Limpopo 56,636 56,014 100.00% 36.05%
Mpumalanga 47,248 45,663 100.00% 96.66%
Northern Cape 3,413 3,413 100.00% 51.13%
North West 43,772 38,180 100.00% 87,24%
Western Cape 55,772 55,747 100.00% 97.33%
Total 589,139 589,139 100.00% 98.90%
76
77. MUNICIPAL PROGRAMME 2008/9
2008-9 Connections as at 28 February 2010
Province Name Revised Connections Year to date Actual
Eastern Cape 6904 5,323
Free State 2237 4,011
Gauteng 4474 4,043
Kwazulu/Natal 17091 16,832
Limpopo 7544 6,200
Mpumalanga 3019 1,522
North West 2184 1,040
Northern Cape 349 353
Western Cape 4645 3,763
Total 48447 43,087
77
78. ESKOM PROGRAMME 2009/10
as at 28 February 2010
Province Planned CAPEX Total YTD Actual Percentage
CAPEX spend
Eastern Cape 331,340,531 271,187,706 82%
Free State 49,323,990 38,690,271 78%
Gauteng 71,950,766 54,342,727 76%
KZN 303,178,808 294,752,619 97%
Limpopo 156,701,639 86,250,214 55%
Mpumalanga 95,618,928 53,362,752 56%
North West 79,349,578 53,377,689 67%
Northern Cape 28,809,747 15,709,212 55%
Western Cape 53,672,859 30,198,518 56%
Grand Total 1,169,946,849 897,871,713 76%
78
79. ESKOM PROGRAMME 2009/10
as at 28 February 2010
Province Planned Total YTD Actual
Connections Connections
Eastern Cape 29 280 22,364
Free State 5 783 5,540
Gauteng 6 411 3,378
KZN 20 344 13,632
Limpopo 14 612 13,706
Mpumalanga 6 117 5,126
North West 7 565 4,834
Northern Cape 1 645 1,254
Western Cape 6 670 5,052
Grand Total 98 427 74,886
79
80. Schools Connections as at 28 February 2010
Province Planned Total YTD Actual
Connections Connections
Eastern Cape 214 155
Free State
Gauteng
KZN 132 81
Limpopo 107 87
Mpumalanga 22 28
North West 6 6
Northern Cape
Western Cape
Grand Total 481 357
80
81. 2010/11 plan
Province MUNICIPAL ESKOM TOTAL ALLOCATION % OF NATIONAL
PER PROVINCE ALLOCATION
R’000 R’000
Eastern Cape 285 258 551 486 836,744 30.2%
Free State 55 063 38 921 93,984 3.4%
Gauteng 142 200 107 616 249,816 9.0%
KwaZulu- Natal 223 776 409 294 633,070 22.8%
Limpopo 130 500 188 268 318,768 11.5%
Mpumalanga 57 300 117 657 174,957 6.3%
Northern Cape 21 555 47 265 68,820 2.5%
North West 40 800 192 883 233,683 8.4%
Western Cape 63 652 98 391 162,043 5.8%
BASELINE ALLOCATION 1 020 104 1 751 780 2,771,885
81
82. Service Delivery Performance
• The electrification programme is one of the best performing
service delivery programme on the overall.
• Electrification is the number one priority for most communities
although not as basic as water.
• The biggest challenge at the moment is the provision of bulk
infrastructure in deep rural areas.
• Eskom program is satisfactorily delivering in terms of numbers.
• Funding of Bulk infrastructure has drastically reduced the
connections targets.
• Informal settlements poses a big threat in reaching universal
access by target date.
• Funding is not aligned to the target and pressures on the ground.
• The yearly increases only caters for the inflationary implications
on the programme.
82
83. SHORT-TERM OBJECTIVES AND
OUTCOMES 2010/11
OBJECTIVES OUTCOME
1. Existing homes (formal) that were No formal RDP houses completed without
constructed within last 2 years timeframe electricity
all electrified.
2. Address all political hotspots with service All hotspots identified and addressed
delivery protests due to lack of
electricity
3. Breaking New Ground Projects in urban All identified Breaking New Grounds in Metros
areas to relieve informal settlements and secondary cities prioritized.
prioritized (including bulk projects).
4. All outstanding formal schools prioritized Universal access to schools this financial year
5. Build bulk projects to open up access in Completed bulk projects to open up areas for
specific targeted rural areas. electrification
6. Upgrading of bulk projects where Completed upgrade bulk projects.
electrifications cannot proceed without
the upgrade.
83
21:23 83
85. MTEC Proposal
Programme 2009/10 MTEC Final Variance Variance as
ENE Proposal Appropriation (Fin App- a % of
Proposal) Proposal
Administration 75,5 189,5 104,2 (85,3) (45,0)
Hydrocarbons 60,5 60,5 1 555,9 1 495,4 2 471,7
and Energy
Planning
Electricity, 458,0 458,0 408,8 (49,2) (10,7)
Nuclear and
Clean Energy
Associated 3 556,0 3 378,3 3 463,8 85.5 2,5
Services
Total 4 150,0 4 086,4 5 535,4 1 449,0 35,5
86. ENE allocated funds
2009/2010 2010/2011 2011/2012 2012/2013
Programmes Revised Medium term expenditure estimates
Estimate
MTEF Baseline
Administration 68,2 104,2 127,7 106,9
Hydrocarbons 54,4 1 555,8 1 564,4 1 571,2
and Energy
Planning
Electricity, 327,5 408,8 513,7 116,5
Nuclear and
Clean Energy
Associated 3 290,1 3 463,8 3 553,6 3 744,0
Services
Total 3 740,2 5 535,4 5 739,6 5 538,7
86
87. ENE allocations per economic
classification
2009/2010 2010/2011 2011/2012 2012/2013
Programmes Revised Medium term expenditure estimates
Estimate
MTEF Baseline
Current 194,5 202,1 235,6 220,7
Payments
Transfer and 3 543,1 5 328,7 5 499,1 5 312,8
Subsidies
Payments of 2,6 4,6 5,0 5,3
Capital
Assets
Total 3 740,2 5 535,4 5 739,6 5 538,7
87
88. 2010 MTEF Allocation
• Total allocation for DoE for 2010 is
R5,535 billion
• Major projects funded:
– Integrated National Electrification Programme-
R2,808 billion
– Demand Side Management-R 329 million
– Renewable Energy –R36 million
– Energy modelling system –R20 million
– Transnet pipeline – R1,5 billion
88
89. Costing of the approved structure for DOE
Programme Cost of Structure Available Funding Difference
Support Services 134,479,632.06 51,452,397.90 ( 83,027,234.16)
Policy Development 51,196,330.92 17,042,741.82 ( 34,153,589.10)
Nuclear Energy 56,311,575.54 48,757,626.00 (7,553,949.54)
Integrated Energy
Planning 21,951,150.12 18,064,200.18 (3,886,949.94 )
Nuclear Technology 23,895,717.12 6,917,858.58 ( 16,977,858.54 )
Total 287,834,405.76 142,234,824.48 (145,599,581.28 )
90. Costing of the interim structure for DOE
Programme Cost of Structure
Support Services R46,8m
Hydrocarbons & Energy Planning R50,8m
Electricity & Nuclear R35,5m
Total R133,1m
Note:
-Interim structure developed in line with available funding
-Line function branches funded according to existing positions
(old DME structure)
- Support services – funding allocated to key priority positions
