Contents and... · 2019. 12. 13. · Ms Nomfundo Maseti has recently been appointed as Full-Time Regulator Member primarily responsible for petroleum pipelines. She is currently serving

NEWSVolume XI, Edition IV, October – December 2016

ContentsEditor’s NoteWelcoming new leadership

From the desk of the CEOQuarter characterised by remarkable achievements

INSIDE OUT:Reflecting our outward-bound activities...

Profiling new Chief Executive OfficerIntroducing the new Chief Executive Officer

Profiling new leadership• Ms Nomfundo Maseti • Mr Mbulelo Ncetezo

Piped gas methodology Methodology to approve maximum prices of piped gas in South Africa

Economics and behavioral studies The trade-offs between pro-poor and cost-reflective tariffs in South Africa

Petroleum pipelines Determining bulk storage

Electricity• Monitoring renewable energy performance • System adequacy outlook

VisitsBotswana delegates visit NERSA

Stakeholder workshops• Empowering stakeholders

Exhibition• AMEU’s 65th Convention• NERSA at the Southern African Energy Efficiency Convention 2016

OUTSIDE IN:A glimpse at our internal activities…

Human ResourceOptimising energy to increase performance

EventsAIDS Day

Calendar of eventsProgramme for February–April 2017

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Official Newsletter of the National Energy Regulator of South Africa

October – December 2016

Editor’s Note

Into 2016with confidence

Itake great pleasure in welcoming our new CEO and Full-Time Regulator Member, Mr Christopher Forlee, who will take NERSA to

new heights over the next five years. The Minister of Energy, Ms Tina Joemat-Pettersson, has also announced the appointment of two new Full-Time Regulator members for NERSA: Ms Momfundo Maseti, who will be responsible for petroleum pipelines and piped gas regulation, and Mr Mbulelo Ncetezo, who will be responsible for electricity. I wish them great success in their important tasks.

This quarter saw a number of exciting events, including the visit of a delegation from Botswana, which formed part of a multi-country fact-finding tour to discuss best practices for operationalising the Botswana Energy Regulatory Authority. A number of exciting stakeholder workshops were also hosted. These included ten provincial workshops in the Western Cape, Southern Cape, Eastern Cape, North West, Gauteng and KwaZulu-Natal, and four public participation events with the Department of Energy.

Two exhibitions assisted in promoting the role and responsibilities of NERSA, namely the Association of Municipal Electrical Utilities (AMEU) Convention that was held from 02 to 05 October 2016, and the South African Energy Efficiency Convention that was held on 08 and 09 November 2016.

Education and awareness programmes such as these go a long way in achieving maximum impact for NERSA, as well as in creating empowered consumers. May this success continue and remain a focus point in 2017 and onwards.

As always, we welcome your input and feedback on NERSA News and all comments or contributions can be sent through to [email protected]

Best wishes

Charles HlebelaVisit our website at www.nersa.org.za for updates on our activities, public hearings and event calendar.

Welcoming new senior management

Newsletter contributors - Our thanks go to:• Amukelani Chauke • Bianka Belinska • Faizal Karani • Fiona Harrison • Martin Untiedt • Mmoni Serumula

• Thulebona Nxumalo • Yvette van Zyl • Wanda Langenhoven

Editor’s Note

T: 012 401 4600 F: 012 401 4700Physical Address: Kulawula House, 526 Madiba Street, Arcadia, PretoriaPostal Address: PO Box 40343, Arcadia 0007, South Africa

Publisher: Corporate ServicesEditor: Charles HlebelaSub-Editor: Poppie MahlanguWriter: Milk Brown Designs and CommunicationsDesign, Layout and Printing: Milk Brown Designs and CommunicationsCover Photo: wklzzz photography

ISSN: 2221-898XKey Title: NERSA NewsAbbreviated Key title:NERSA News

This publication is produced by NERSA Corporate Services and may not be reproduced without the written consent of NERSA.

Mr Charles Hlebela

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The Official Newsletter of the National Energy Regulator of South Africa

Charles Hlebela: Editor

Mr Christopher Forlee

The third quarter of the current financial year has seen NERSA exceeding a number of its

planned targets, resulting in 97% of its overall planned targets being met for the quarter ending 31 December 2016.

Although no generation licences were issued during this quarter, a number of achievements were recorded in electricity industry regulation. These include the granting by the Gauteng High Court of NERSA’s leave to appeal Eskom’s Regulatory Clearing Account (RCA) for the current Multi-Year Price Determination (MYPD 3), as well as the issuing of one private distribution licence and the amendment of another distribution licence. Some 89% of complaints and disputes were resolved.

In respect of piped-gas industry regulation, the High Court ruled in favour of NERSA’s approval of Sasol’s maximum price application, as well as the transmission tariff for Sasol. This means that the methodology NERSA applies for

maximum prices will remain intact, and that NERSA will now be able to enforce it when considering maximum price applications.

The quarter also saw several achievements in petroleum pipelines industry regulation. The commencement of the bulk determination decision included the publication of the decision on NERSA’s website, the sending of a formal notification to the Department of Energy and the drafting of letters to notify the affected licensees. The discussion document regarding the Transnet SOC (Ltd) Petroleum Pipelines System Tariff Application for 2017/18 was published for public consultation. Furthermore, eight licence applications, five amendments and one revocation were finalised.

NERSA’s management and staff can take pride in these remarkable achievements during the past quarter. I know that we will all continue with our best efforts and strive to achieve 100% of our targets in the remaining few months of this financial year.

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The High Court ruled in favour of NERSA’s approval of Sasol’s maximum price application, as well as the

transmission tariff for Sasol.

Third Quarter characterised by remarkable achievements

From the desk of the CEO


Mr Christopher Forlee

Introducing the new CEO and Full-Time Regulator Member - Mr Christopher Forlee

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The Minister of Energy, Ms Tina Joemat-Pettersson, has appointed Mr Christopher

Forlee as Chief Executive Officer (CEO) and Full-Time Regulator Member of NERSA on a five-year contract, effective from 01 January 2017 to 31 December 2021.

Mr Forlee is a qualified electrical engineer, with a BSc in Electrical and Electronic Engineering from the University of Cape Town, and holds an MBA from the University of Pretoria’s Gordon Institute of Business Science (GIBS). He is a highly experienced professional with extensive skills and knowledge in the energy sector. Over the past 26 years, he has held various technical, managerial and executive positions in the private and public sector.

This Full-Time Regulator Member is renowned for leading by example, with a collaborative approach and excellent interpersonal skills to motivate and encourage others to reach their fullest potential to achieve business objectives successfully.

Mr Forlee started his career at Eskom where he held various positions, ranging from graduate engineer to chief engineer between 1991 and 2003. He later joined NERSA as a specialist for electricity trading and access, a position he occupied from 2004 to 2007. He then joined the Department of Public Enterprises, where he held the positions of Chief Director: Energy (2007 to 2008) and Deputy Director-General: Energy and Broadband (2008 to 2012). He was Regulatory Affairs and then Govern-ment and Public Affairs Manager at British Petroleum Southern Africa (BPSA) from 2012 to 2014.

Mr Forlee joined NERSA as Executive Manager: Petroleum Pipelines Regulation in February 2015, a position he occupied until June 2016. In July 2016, he was appointed as Acting Full-Time Regulator Member for Petroleum Pipelines Regulation. He acted in this position until December 2016, after which he was appointed as CEO and Full-Time Regulator Member of NERSA.

INSIDE REFLECTIONS OUTWARDS ...In the front section of our quarterly newsletter, we provide readers with an ‘inside, reflecting outwards’ perspective of NERSA’s challenges and achievements, as well as our work-in-hand and the status of our regulatory activities as they affect our stakeholders and the public at large.


Ms Nomfundo Maseti

Mr Mbulelo Ncetezo

Ms Nomfundo Maseti has recently been appointed as Full-Time Regulator Member primarily responsible for petroleum pipelines. She is currently serving as a Full-Time Regulator Member responsible for piped-gas. The new role effectively extends her portfolio in providing thoughtful leadership in the regulation of both the piped-gas and petroleum pipeline industries. Her extensive experience in regulation and industrial economics will enable her to execute her duties with ease.

She started her career in the competition law and policy environment where she held various positions at the Competition Commission of SA from early 2000 until 2007. She gained widespread experience in applying economic principles underpinning the competition law and handled various merger and acquisition transactions, as well as handling high profile investigations in various industries including energy, fertilizers, food and beverages.

She subsequently joined the Department of Trade and Industry in February 2007 until November 2010, where she held various positions and served as a Chief Director responsible for policy and legislative formulation and corporate and consumer regulation

in the areas of competition and consumer policy and law, Estate Agency Affairs Act, liquor and gambling.

Ms Maseti has 17 years’ experience in competition law enforcement and in regulatory enforcement. She joined NERSA in 2010 as an Executive Manager responsible for piped-gas regulation until she was appointed in March 2014 as a Full-Time Regulator Member for Piped-Gas. Ms Maseti successfully managed the regulatory regime applicable to the piped-gas industry until March 2014 through its transition into the new pricing and tariff principles regime encapsulated in the Gas Act of 2001. She played a keyrole in the development and finalisation of the Competition Assessment and the Maximum Price Methodology paving the way for NERSA to exercise its regulatory powers in approving maximum gas prices.

Ms Maseti holds a BA Honours degree in Economics and a Postgraduate Diploma in Economics for Competition Law. She served as a Board Member of the National Gambling Board from 2009 until November 2010 and as a Member of the ICASA Adjudicative Tribunal (Complaints and Compliance Committee) since February 2014.

Mr Mbulelo Ncetezo has been appointed as a Full-Time Regulator Member of NERSA, primarily responsible for electricity.

Mr Ncetezo is currently NERSA’s Executive Manager of Electricity. He is a qualified electrical engineer with extensive knowledge and understanding of the electricity supply industry (generation, transmission and distribution).

He holds a BSc in Physics and Chemistry from Fort Hare University, a BSc in Electrical Engineering from

Marquette University, USA, and an MSc in Electrical Engineering from University of Minnesota, USA.

His first exposure to regulation was when he joined the newly established Independent Communications Authority of South Africa (ICASA) in 2000. He led the team that drafted the regulations on infrastructure sharing and interconnection. His experience includes working in various management positions in organisations such as Anglo American Electronics Laboratories, the Transkei Electricity Supply Corporation (Tescor) and Eskom.

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Profiling

IntroducingFull-Time Regulator Member: Piped-Gas and Petroleum Pipelines Ms Nomfundo Maseti

Introducing Full-Time Regulator Member: Electricity – Mr Mbulelo Ncetezo


Methodology to approve maximum prices of piped gas in South Africa

On 04 October 2016, the National High Court dismissed a review application by PG

Group (Pty) Ltd and six others (SAB, Consol Glass, Nampak, Mondi, Distribution and Warehousing Network and Illovo Sugar) against NERSA and Sasol Gas Limited. The applicants are large-scale consumers of piped gas supplied by Sasol Gas, one of the organisations licensed under the Gas Act, 2001, and whose activities are regulated by NERSA.

The companies, who are part of the Gas User’s Group, took NERSA and Sasol Gas to the High Court in October 2013. The applicants’ review application was based on a series of grounds that included relief after a change in the methodology used to determine gas prices from market value to maximum price methodology.

A number of issues were highlighted during the court hearing. These included the following: • The maximum price methodology is a non-

binding internal policy with no direct external legal effect.

• In the event that the maximum price methodology is found to have a binding effect, the review must still succeed, as NERSA allegedly acted outside this methodology when it introduced the new concept of

revenue neutrality during its approval of Sasol’s maximum price application.

• The maximum prices approved by NERSA for Sasol are irrational because the pricing approach used by NERSA is allegedly monopolistic, not used by any other regulator in the world, and did not compensate for competition.

It was counter-argued for the respondents that the maximum price methodology is essentially a binding ‘rule book’ on NERSA, and that the court had to review and set this methodology aside before it could consider the review of NERSA’s decisions on Sasol’s applications.

The court eventually dismissed the application on technical grounds, stating that the application to review the maximum price methodology nearly two years after it had been approved (it was approved in October 2011 and the applicants went to court in 2013) was unreasonable.

“According to NERSA’s Full-Time Regulator Member for Piped Gas, Ms Nomfundo Maseti, ‘the implications of the High Court’s judgment are that NERSA’s maximum price methodology remains valid. NERSA will continue to implement the current methodology, as well as monitor and enforce compliance with its decisions”.

Piped gas methodology

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From left: Mr Thulebona Nxumalo, Executive Manager: Piped-Gas, and Ms Nomfundo Maseti, Full-Time Regulator Member – Piped-Gas during the media briefing


An article published in the Journal of Economics and Behavioral Studies in

December 2016 (Vol. 8, No. 6) by Michael Maphosa and Patrick Mabuza of NERSA presented an argument for and against cost-reflectivity and the pro-poor tariff policy in the South African electricity supply industry (ESI) from a regulatory perspective. This debate has been ongoing for decades in developing countries. However, there is still no clear direction on how countries should approach these two important competing policy positions.

There are those who argue that achieving cost-reflective tariffs will attract private- sector investment in the ESI, which will lead to much-needed competition and reduced electricity tariffs. However, there are also those who argue that cost-reflective tariffs will make it difficult to achieve government’s social objectives of universal access through pro-poor tariffs, as cost-reflective tariffs will be unaffordable to the majority of the population. This will delay the achievement of universal access, as struggling consumers may switch to unsafe and inefficient sources of energy. The fundamental question is what should come first: cost-reflective tariffs or pro-poor tariffs.

Literature suggests that the priority between cost-reflective tariffs and pro-poor tariff policies differs from one country to another. For a country with a large social welfare base, like South Africa, the priorities between pro-poor and cost-reflective tariffs are different to those in a developed country.

The article therefore attempted to examine the real trade-offs between pro-poor tariff policies and cost-reflective tariffs, based on a study conducted with the objective of answering one critical question: How can the electricity sector attract local and foreign investors without necessarily affecting government’s social objectives, such as universal access to electricity?

The study found that electricity consumers and, in particular, poor households, have historically benefited from relatively cheap electricity, and that tariffs have not been cost-reflective. In other words, there is a mismatch between tariffs and the under-lying costs of supplying electricity in South Africa. The study also found competing expectations between poor consumers and utilities. Consumers expect to receive electricity at an affordable price, while utilities argue that the tariffs of a good,

Economics and behavioral studies

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THE TRADE-OFFS BETWEEN PRO-POOR AND COST-REFLECTIVE TARIFFS IN SOUTH AFRICA


Economics and behavioral studies

reliable electricity supply must be matched with the costs. Lastly, the study found that it is difficult to achieve cost-reflective tariffs in the short run in an environment that is characterised by a high number of consumers who are dependent on social grants and cross-subsidies.

From a regulatory point of view, reasonable return and affordability are two of the most difficult issues to balance in the ESI without one necessarily compromising the other. The study therefore examined possible ways of protecting low-income households, as well as possible approaches to promoting the affordability of electricity usage.

Possible approaches to cushion poor households from high electricity costs in South Africa include providing a partial or full subsidy for the connection fee, reducing or eliminating the fixed-charge component of the tariff, and reducing or eliminating the energy charge for a defined maximum consumption per month.

The study recommended a gradual movement towards cost-reflective tariffs in order to minimise the short-term impact of price increases on poor households. This must be accompanied by key strategies, such as customer education programmes that focus on the importance of moving towards cost-effective tariffs for the sustainability of the ESI in South Africa, and the introduction of robust energy-efficiency and demand-side management (EEDSM) programmes that are aimed at reducing energy costs and demand.

There should also be an understanding of other subsidies that accrue to the poor, regarding whether the subsidies given

are enough to achieve government’s social objectives. A national study should be conducted on the minimum level of service grade required by poor households, based on their economic circumstances. This will help determine the minimum electricity services required by households, and will avoid an over-supply of services, which could lead to the inefficient use of these services.

Legislation or policies that promote competition in the ESI should also be introduced. The Regulator must be involved in the procurement of all regulatory assets to be included in the regulatory asset base as the efficient and timely procurement of assets will limit the costs to consumers.

The study revealed that the existing tariffs for residential users do not reflect the underlying costs of supplying electricity to them. There is evidence to suggest that low-income households will not be reached if utilities were to decide who to supply without tariff subsidies. Poor households in low-income areas would be excluded permanently from the network. The Regulator should therefore always consider the socio-economic implications of cost-reflective tariffs within the broader context.

The protection of poor households and low-income areas goes beyond issues of affordability of services. Moving them gradually from informal to formal services is a fundamental starting point, even without necessarily establishing pro-poor tariffs. It is important for electricity tariffs to be balanced in order to enable private and public investors to efficiently recover incurred costs plus a reasonable profit, while attempting to supply poor households and low-income areas with affordable electricity.

The study recommended a gradual movement towards cost-reflective tariffs in order

to minimise the short-term impact of price increases

on poor households.

The Official Newsletter of the National Energy Regulator of South Africa 8

Petroleum Pipelines

The term ‘bulk’ is not defined in the Petroleum Pipelines Act, 2003 (Act No. 60 of 2003). Therefore, the Energy Regulator published a discussion document on 23 November 2015 to determine what constitutes ‘bulk storage’ for licencing purposes in terms of the Petroleum Pipelines Act.

On 26 May 2016, after considering comments submitted by the public, the Energy Regulator decided that storage facilities that do not fall under the categories listed below are, in terms of section 15(2)(a) of the Petroleum Pipelines Act, eligible for exclusion from licensing:

Owners of storage facilities that do not fall under any of the abovementioned categories must submit information on their facilities to NERSA for verification and confirmation that they do not require a licence. This information must be submitted on the prescribed form, which is available from [email protected] or on NERSA’s website.

Category 1: all crude oil and condensate storage facilities;

Category 2: all petroleum product storage facilities, excluding liquefied petroleum gas (LPG) storage facilities, connected to a marine loading facility (including those connected by pipeline), and those connected to the Transnet petroleum pipeline system, excluding those connected to a marine loading facility with a design capacity exceeding 1.5 million litres;

Category 3: all LPG storage facilities connected to a marine loading facil-ity (including those connected to a pipeline), excluding those with a design capacity exceeding 1 000 tonnes;

Category 4: storage facilities comprising a mixture of categories 2 and 3 with a combined design capacity exceeding 1.5 million litres; and

Category 5: storage facilities that comprise a mixture of category 1 and either category 2 or category 3 or both categories 2 and 3.

Determining BULK STORAGE


Electricity

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Monitoring renewable energy performanceNERSA fully supports the government’s

renewable energy (RE) plans, as set out in the Integrated Resource Plan (IRP) 2010–2030. The Minister of Energy, Ms Tina Joemat-Pettersson, has made three determinations under the Department of Energy’s Renewable Energy Independent Power Producer Programme (REIPPP).

In the first Independent Power Producer (IPP) determination, issued in 2011, a target of 3,825 MW of RE was set. In the second determination, issued in 2012, a target of 3,455 MW of RE capacity by 2020 was set, while in the third determination, issued in 2015, it is anticipated that 6,300 MW of RE capacity will be procured between

2021 and 2025, in accordance with the objectives of the IRP 2010–2030. In total, the RE capacity to be procured by 2025 is estimated at 13,580 MW.

The Minister issued a fourth determination in November 2015, which formed part of the Department of Energy’s RE (solar) procurement programme. This programme proposes 1.500 MW of RE capacity to be procured from solar photovoltaic (PV) cells or any other solar technology. The Department has successfully concluded four RE IPP bid windows, including a mini-bid window of concentrated solar power (CSP) projects (termed Window 3.5). The total


Electricity

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NERSA is required to monitor the supply-demand equation of the electricity system for the efficient, effective, sustainable, and orderly development and operation of the electricity supply infrastructure of South Af-rica. In order to comply with the objectives of the Electricity Regulation Act of 2006 (Act No. 4 of 2006), certain monitoring and information systems need to be in place.

One of these information systems is NERSA’s quarterly bulletin that provides information, based on Eskom reports, on historic and current generation system adequacy and performance, as well as future capacity outlook.

According to the current bulletin, the trends in the supply and demand of

power in South Africa as at 31 December 2016 are as follows: • The energy supplied decreased from

245,610 GWh in 2007 to 225,395 GWh in 2016. This represents a decrease of 8.23%.

• Peak demand decreased from 36,513 MW in 2007 to 34,177 MW in 2016. This represents a decrease of 6.40%.

• The average plant performance in terms of total capacity unavailable increased from 9,008 MW in 2013 to 10,984 MW in 2016. This represents an increase of 2.95%.

• Eskom’s installed capacity (including imports) increased from 39,982 MW in 2008 to 46,625 MW in 2016. The medium-term demand forecast for 2017 is 45,957 MW.

System adequacy outlook

RE IPP capacity awarded in all the RE bid windows is 6,321 MW.

During the first six months of 2015, according to energy production data submitted by IPPs, RE power plants produced nearly 2,870 GWh of electricity. This is more than the electricity produced by IPPs in 2014, which was approximately 2,189 GWh. This is due to new power plant additions over the last

two years. In the first six months of 2016, the average monthly capacity factor for wind power plants was 31%, while the average capacity factor of solar PV plants was 24%.

By 26 August 2016, the total grid-connected capacity of RE IPPs stood at 3,181 MW, generated by 50 RE IPPs. About 2,678 MW, is in commercial operation from this grid-connected capacity.


Visits

On 18 November 2016, NERSA hosted a delegation of seven visitors from Botswana. This visit was

part of a multi-country fact-finding tour undertaken by the delegation and included visits to other countries in the region, such as Zambia and Namibia.

Mr Gaolathe Dipholo, the Deputy Permanent Secretary in the Ministry of Mineral Resources, Green Technology and Energy Security (MMGE), was accompanied by the Executive Coordinator of the Botswana Power Corporation, Mr Gaoleboge Mmola. The other delegates were Ms Kelebogile Moremi, Principal Legislative Drafter and Attorney for General’s Chambers, Ms Goitseone Klinck, Deputy Manager: Corporate Services at MMGE, Mr Benny Mdluli, Principal Economist at the Ministry of Finance and Economic Development (MFED), Mr Batsumi Rankokwane, Principal Energy Officer at the Department of Energy, and Ms Meimah Keitseope, Principal Engineer at MMGE.

NERSA’s acting CEO, Mr Paseka Nku, introduced the delegates and welcomed them to the country. A number of presentations were made by both the delegates from Botswana and members of NERSA.

Mr Gaolathe Dipholo’s presentation highlighted the objectives and purpose of the visit, which was to discuss best practices for operationalising the Botswana Energy Regulatory Authority (BERA). He focused on issues related to governance, licensing, fees and penalties, tariff setting and price regulation, supervision and monitoring, protecting the environment, customer and consumer protection, the procurement of significant infrastructure and the MMGE’s IT systems.

Mr Bothito Chokoe, who is from NERSA’s Regulator Support Unit, provided the delegates with an overview of the National Energy Regulator Act, NERSA’s governance structure, the composition of the Board, its tenure, mandate, reporting structure and institutions, governance and coordination, and the framework of the role of regulators in conducting public hearings. Mr Dennis Seemela, Acting Executive Manager: Electricity Regulation, provided an overview of electricity regulation by NERSA, which included the tariff-setting process, tariff methodology, licensing process and requirements, standard operating procedures on compliance, and monitoring and enforcement. Mr Thabo-Ramanamane, Acting Executive Manager: Petroleum Pipeline Regulation, and Mr Thulebona Nxumalo, Executive Manager:

Piped Gas Regulation, provided an overview of NERSA’s petroleum pipelines and piped gas regulations respectively.

Ms Mmanaka Kwapeng, Head of Value Creation in NERSA’s Human Resources (HR) Division,

shared information on NERSA’s HR policies and procedures, as well as methodology followed during the organisational review process. Mr Peter Buys delivered a presentation on the Communications and Stakeholder Management Department’s activities related to customer and service provider engagement.

The delegates attested to the success of the fact-finding mission, as they gained valuable knowledge that can be implemented in their own country. It was agreed that further information sharing would take place to assist Botswana in the successful establishment of its energy regulator.

The visit by the delegation from Botswana to NERSA was aimed at discussing best practices for operationalising the Botswana Energy Regulatory Authority.

BOTSWANA DELEGATES VISIT NERSA

NERSA hosting Botswana delegates


NERSA’s conducted 17 stakeholder workshops during the third quarter, ending on 31 December 2016. These comprised ten workshops, two exhibitions, four public participation events with the Department of Energy and one Consumer Education Committee meeting.

The ten workshops that were conducted were attended by a total of 1,304 stakeholders. These workshops were hosted as follows:• Uniondale, Western Cape, 08 November 2016;• George, Southern Cape, 09 and 10 November 2016

(two workshops);• Douglas, Northern Cape, 05 October 2016;• Venterstad, Eastern Cape, 19 October 2016;• Ganyesa, North West, 06 October 2016;• Mmamutla, North West, 16 November 2016;• Alexandra, Gauteng, 28 October 2016;• Port Shepstone, KwaZulu-Natal, 26 October 2016; and• Ndlangubo, KwaZulu-Natal, 27 October 2016.

The main issues raised at these workshops were the high cost of electricity, inclining block tariffs, the theft of electricity, NERSA’s Electrification Programme, the quality of service, and participation in NERSA’s public hearing on pricing determination.

NERSA participated in two exhibitions at the conventions hosted by the Association of Municipal Electrical Utilities (AMEU) and the Southern African Association for Energy Efficiency that were held from 02 to 05 October 2016 and 08 to 09 November 2016 respectively.

NERSA also took part in the following public participation events as part of the Department of Energy’s community outreach programme: • School Energy Day, which was held in De Aar, Northern

Cape, on 20 October 2016;• Career Expo, which was held in Hoedspruit, Limpopo,

on 22 October 2016;• Ngwaabe Integrated Energy Centre Launch, which

was held on 04 November 2016; and• Limpopo Youth Development Expo, which was held on

19 November 2016.

Stakeholder Workshops

Stakeholder workshop in De Aar

Stakeholder workshop in Hoedspruit

EMPOWERING stakeholders

Stakeholder workshop in Tzaneen


Exhibition

AMEU’s 65th Convention

The Minister of COGTA highlighted the fact that municipalities and metropolitan councils need to address the electrification of such communities and find solutions to the scourge of electricity theft

and illegal connections.

NERSA participated as an exhibitor at the 65th Convention of the Association of

Municipal Electricity Utilities (AMEU), which was hosted by the Emfuleni Local Municipality on 02 to 05 October 2016 at the Emerald Resort and Casino in Vanderbijlpark. The event attracted about 450 delegates, including representatives from 43 municipalities and over 80 companies from all over the country.

The Minister of Cooperative Governance and Traditional Affairs (COGTA), Mr Des van Rooyen, addressed the participants and spoke about electricity being an essential service for the improvement of people’s lives and the growth of industry. He said that many more South Africans have access to electricity than ever before, yet several communities and informal settlements still lack access to electricity. The Minister highlighted the fact that municipalities and metropolitan councils need to address the electrification of such communities and find solutions to the scourge of electricity theft and illegal connections.

The Convention focused on the role of women in the electricity industry. The AMEU subcommittee, Women in Electricity (WiE), held a panel discussion on the maintenance of

electrical infrastructure, financial control and skills development within local municipalities. As for the low number of females studying electrical engineering, the panel said that the industry needed to focus on making a career in electrical engineering more desirable for women. Another suggestion was that companies that offer internships work hard-er to retain women engineers in the face of competition from the commercial sector, so that these trained women remain in the electrical sector. The panel also suggested that NERSA, which allows for a mark-up on electricity sales for the purpose of the maintenance, refurbishment and replacement of electrical distribution equipment, should enforce stricter financial controls.

Incoming President of AMEU, Mr Moferefere Tshabalala, thanked his predecessor, Mr Sicelo Xulu, for his leadership and mentorship, and said that he was looking forward to his new role as President of the Association. The Mayoral Committee Member of Infrastructure and Engineering in the Nelson Mandela Bay Metropolitan Council, Ms Annette Lovemore, extended an invitation to AMEU to hold its next convention in Port Elizabeth, which was accepted.


Exhibition

NERSA participated as an exhibitor at the 11th Southern African Energy Efficiency Convention (SAEEC) held on 08 to 09 November 2016 at Emperors Palace, Gauteng. The event was attended by 578 delegates, representing 290 companies.

The 2016 SAEEC was an important energy event of national scope for end-users and energy professionals in all areas of the energy field. It was a comprehensive forum where delegates could fully assess the big picture and see how all the economic and market forces, new technologies, regulatory developments and industry trends merge to shape the critical decisions in their companies’ energy and economic future.

NERSA at the Southern African Energy Efficiency

Convention 2016

NERSA’s exhibition stand at the Southern African Energy Efficiency Convention 2016


Human Resource

OUTSIDE LOOKING IN ...The second section of our quarterly newsletter provides readers with an ‘outside in’ perspective of NERSA’s people and their activities during the previous quarter and how NERSA’s values and goals drive its vision of being a world-class energy regulator.

Mavis Ureke, a human behaviour specialist and co-founder of Training B2B CC, a

leading provider of emotional intelligence training, believes that when energy is optimised, performance increases, and those who have become emotionally resigned are energised and re-engaged. She explains this by focusing on three forms of non-physical energy: mental energy, emotional energy and spiritual energy.

Mental energy relates to positive, quality thoughts, which are energising, and are opposed to negative thoughts, such as thoughts of victimhood and cynicism, which are draining. We often have negative thoughts when our mental software is outdated. In this case, our view or philosophy of life is opaque.

Optimising

To boost your mental energy, you need to

read or attend seminars covering all your life zones,

including your family, your social life and your finances, as well as the

mental, spiritual, career and physical aspects

of your life.


To boost your mental energy, you need to read or attend seminars covering all your life zones, including your family, your social life and your finances, as well as the mental, spiritual, career and physical aspects of your life. We often outsource responsibilities because of a lack of knowledge. The result is a feeling of los-ing control over those areas of our lives that we have outsourced, which directly impacts on our overall sense of control. The reason 78% of the global population is dominated by anxiety is because they feel they do not have control over their lives. When you boost your mental energy, you become more aware and you have many more options and ideas, and can direct your own thoughts, giving you an internal locus of control.

Emotional energy relates to the fact that emotions are the drivers of behaviour. They are so powerful that they can incapacitate physical, mental and spiritual energy. This is therefore the master key to energy optimisation. When you take responsibility of your emotions, you have the power to create unlimited energy to get things done. You will have the

ability to transform negative energy into positive power, instead of negativity draining your ability to get things done without you realising it. To optimise emotional energy, you have to prioritise happiness. Many people want to be happy, but the opposite happens. They are unhappy at work, in their relationships, with their finances and with their physical appearance.

As an exercise to improve your energy, write down five things that make you happy and assess how often you do them. Prioritise them each

day or week and see how your energy is boosted.

Spiritual energy relates to spiritual rituals and practices like prayer and meditation. Our sense of inner peace

comes through connecting with our sense of purpose. Purpose has to do with the greater good. When we serve others with authenticity, we feel good. To boost spiritual energy over and above your spiritual practices, serve others, give back and connect with purpose.

Which of these forms of energy are you going to use this quarter to boost your performance?

Human Resource

energy to increase performance

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Events

The slogan for World AIDS Day on 01 December 2016 was: ‘It’s in our hands to end HIV and TB’. It is in our hands because we are a proactive country in the response to HIV, tuberculosis (TB) and sexually-transmitted infections (STIs). We all contribute towards the development of the country’s National Strategic Plan for HIV, TB and STIs, and we are all committed to ending AIDS and TB by 2030.

The main purpose of World AIDS Day 2016 was to celebrate and acknowledge the vital role that communities have played in achieving the long-term vision of the National Strategic Plan on HIV, STIs and TB (NSP 2012–2016), which has come to an end. The vision of this plan was: ‘zero new HIV and TB infections, zero HIV- and TB-related deaths, zero new infections due to vertical transmission and zero discrimination’. South Africa has achieved its targets for antiretroviral (ARV) treatment and now has the largest ARV programme in the world, with 3.4 million people on treatment in 2015.

According to the South African National AIDS Council (SANAC), the target for the prevention of mother-to-child transmission has been

reached, which is a major achievement. There has been a marked decline in transmissions from more than 3.5% in 2010 to 1.8% in 2014. Sexual transmission of HIV among youths aged 15 to 24 years has declined from 410.000 in 2011 to 330,000 in 2014, a decline of 17.5%. New TB infections and TB deaths declined, but the targets to achieve a 50% reduction in TB deaths were not reached. South Africa has over 300 GeneXpert machines. These are fully automated diagnostic tests for TB and results are available within two hours.

In 2016, South Africa implemented the universal ‘test and treat’ programme, where HIV-positive people are put on treatment regardless of their CD4 cell count, which is used to determine whether the immune system is working and to predict HIV progression.

The focus will now be on the development of the NSP for the next five years – covering the period 01 April 2017 to 31 March 2022. The NSP 2017–2022 will be an ambitious plan to take South Africa forward: one that mobilises political commitment, focuses resources and accelerates progress.

‘IT IS IN OUR HANDS TO END HIV AND TB’


Calender of Events

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Schedule of Energy Regulator and Subcommittee meetings for the period February to April 2017The Energy Regulator envisages the following schedule for the above-mentioned period.

FEBRUARY 2017

TYPE OF MEETING DATE OF MEETING PUPRPOSE

Public Hearing Thursday, 02 Feb 2017

Electricity Subcommittee Tuesday, 07 Feb 201709:00 – 12:00 • Reports/Delegated matters

Petroleum Pipelines Subcommittee

Tuesday, 07 Feb 201713:00 – 15:00 • Reports/Delegated matters

Piped-Gas Subcommittee Wednesday, 08 Feb 201709:00 – 12:00 • Reports/Delegated matters

Executive Committee Thursday, 09 Feb 201709:00 – 12:00

• Salary increases • Reports/Governance/Delegated matters• Reports/Governance/Delegated matters

Regulator Executive Committee Monday, 13 Feb 201709:00 – 11:00 • Reports/Governance/Delegated matters

Finance Bid Adjudication Committee

Wednesday, 15 Feb 201713:00 – 15:00 • Tenders/Bids

Energy Regulator Thursday, 23 Feb 201710:00 – 14:00

• Reports• Annual report (Chairperson, CEO and Audit Chairperson Reports, etc.)

Regulator Executive Committee Monday, 27 Feb 201709:00 – 11:00

• Municipal tariff increases• Reports/Governance/Delegated matters

MARCH 2017

TYPE OF MEETING DATE OF MEETING PURPOSE

Public Hearing Thursday, 02 March 2017

Electricity Subcommittee Tuesday, 07 March 201709:00 – 12:00 • Reports/Delegated matters


Tuesday, 07 March 201713:00 – 15:00 • Reports/Delegated matters

Piped Gas Subcommittee Wednesday, 08 March 201709:00 – 12:00 • Reports/Delegated matters

Regulator Executive Committee Monday, 13 March 201709:00 – 11:00 • Municipal tariff increases

Executive Committee Tuesday, 14 March 201709:00 – 12:00 • NERSA Planning and Monitoring Cycle

Energy Regulator (Special) Wednesday, 15 March 201709:00 – 11:00 • Transnet Tariff

Finance Bid Adjudication Committee

Wednesday, 22 March 201709:00 – 12:00 • Tenders/Bids

Public Hearing Thursday, 23 March 2017

Energy Regulator Thursday, 30 March 201710:00 – 14:00 • Subcommittee Reports


Calender of Events

APRIL 2017

TYPE OF MEETING DATE OF MEETING PURPOSE

Regulator Executive Committee Monday, 03 April 201709:00 – 11:00 • Municipal tariff increases

Piped Gas Subcommittee Tuesday, 04 April 201709:00 – 12:00 • Reports/Delegated matters

Electricity Subcommittee Wednesday, 05 April 201709:00 – 12:00 • Reports/Delegated matters


Wednesday, 05 April 201713:00 – 15:00 • Reports/Delegated matters

Public Hearing Thursday, 06 April 2017

Executive Committee Friday, 07 April 201709:00 – 12:00

• 4th Quarter Management Accounts • 4th Quarter Performance Report• Risk Management matters Bi-annual monitoring report on NERSA risks• Quarterly monitoring report on the 2014/15 Audit findings (if needed)

Regulator Executive Committee Monday, 10 April 201709:00 – 11:00

• Municipal tariff increases• 4th Quarter Performance Report• 4th Quarter Management Accounts • Reports/Governance/Delegated matters

Human Resources and Remuneration Committee

Tuesday, 11 April 201709:00 – 12:00

• Reports/Delegated matters• Annual report (Chairperson, CEO and Audit Chairperson Reports, etc.)

Finance Committee Tuesday, 18 April 201709:00 – 12:00

• 4th Quarter Management Accounts • Other Reports

Audit and Risk CommitteeTuesday, 18 April 201713:00 – 16:00

• 4th Quarter Management Accounts• 4th Quarter Performance Report• Quarterly monitoring report on the 2014/15 Audit findings• Bi-annual monitoring report on NERSA risk

Public Hearing Thursday, 20 April 2017

Regulator Executive Committee Monday, 24 April 201709:00 – 11:00

• Municipal tariff increases• Reports/Governance/Delegated matters

Energy Regulator Wednesday, 26 April 201710:00 – 14:00

• 4th Quarter Management Accounts• 4th Quarter Performance Report• Subcommittee Reports

Schedule of Energy Regulator and Subcommittee meetings for the period February to April 2017The Energy Regulator envisages the following schedule for the above-mentioned period.

Documents

Contents and... · 2019. 12. 13. · Ms Nomfundo Maseti has recently been appointed as Full-Time Regulator Member primarily responsible for petroleum pipelines. She is currently serving