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Energy Regulator Bill
Presentation toParliamentary Portfolio Committee
byDepartment of Minerals and Energy
3 August 2004
National Energy Regulator BillContents of Presentation
BackgroundRelationship Between
National Energy Regulator Bill and Electricity Act Gas Act Petroleum Pipelines Act
Structure of BillSection by Section DescriptionProposed Schedule for establishment
Main Events
April 2002: Cabinet Approved a Multi-Sector Regulator Electricity Gas Petroleum Pipelines
DME Undertook Study to Ascertain How Best to Give Effect to Cabinet’s DecisionDecember 2003 Cabinet Approved Energy Regulator Bill be
Submitted Directly to Parliament for Consideration Not sent for public comment as merely an amalgamation
of other Acts
Why?
Concern over proliferation of state entitiesSynergies and efficienciesCompeting energy carriers need even treatment e.g. gas and electricityCost savingsShortage of regulatory skills
Submission to Parliament
February 2004: Submitted to Parliament
Re-Submitted after General Election
Zulu Translation Currently being Updated
THE PRESENT SITUATION
Electricity Act Gas Act Petroleum
Pipelines Act
THE PRESENT SITUATION
Electricity Act Gas Act Petroleum
Pipelines Act
National Electricity Regulator
Gas Regulator
Petroleum Pipelines Authority
THE CONCEPT
Electricity Act Gas Act Petroleum
Pipelines Act
NationalEnergy
Regulator
THE CONCEPT 2
Electricity Act Gas Act Petroleum
Pipelines Act
NationalEnergy
Regulator
Administers
Energy Regulator Bill
MattersPertaining
toLicenses
etc
RegulatorEstablishment
National Energy Regulator
MattersPertaining
ToLicenses
etc
RegulatorEstablishment
MattersPertaining
To Licensesetc
AuthorityEstablishment
Electricity ActNo 41 of 1987
Gas ActNo 48 of 2001
Petroleum Pipelines ActNo 60 of 2003
Structure of Bill
Chapter I: Definitions and ObjectChapter II: National Energy Regulator
Establishment & Functions Composition & Vacation of Office Meetings & Duties Decisions Personnel Funds, Accounting & Reporting
Chapter III: General Provisions Repeal of Sections of Electricity, Gas & Petroleum
Pipelines Acts Transition Measures
Schedule
Definitions and Object
Definitions As per existing Acts
Object of Act “The object of this Act is to establish
a National Energy Regulator for the regulation of the electricity, piped gas and petroleum pipelines industries.”
Establishment & Functions
§3 Establishment: Energy Regulator established as juristic
person
§4 Functions: Undertake the functions of Gas Regulator
& Petroleum Pipelines Regulatory Authority from 1 April 2005
Undertake the functions of National Electricity Regulator from 1 June 2005
Composition§5 Composition: Three full time & five part time regulators
Energy Regulator Functional Structure
T e ch n ica l S p ec ia lis ts
L eg a l
F in an ce
H R
C h ie f E xe cu tive O ffice r
E N E R G Y R E G U L A T O RIm p lem e nt P o lic y/R e g u la tio ns
3 F u ll t im e + 5 p art-t im e R e gu la to rs
M IN IS T E R M IN E R A L S & E N E R G YP re sc rib e P o licy/R e gu la tio ns
A p p o in ts R e g u la to rs
Composition
Of the three full-time 1 electricity 1 gas 1 petroleum pipelines
Term of office 4 yearsRemuneration set by Ministers of Minerals and Energy and Finance
Regulators: Requirements &Vacation of Office
§6 Membership Requirements: Requirements
SA citizen Collectively representative Impartial objective Terminate conflicts of interest
Disqualifications Insolvent Convictions
Appointment process Gazette call for nominations
§7 Vacation of Office Compulsory; unsound mind, misses > 2 meetings Resignation
Meetings & Duties
§8 Meetings of Regulator Frequency, times and places Quorum: majority or 4, whichever is greater Attendance Records Open to the Public
§9 Duties Justifiable & transparent Independency
Decisions
§10 Decisions: In writing In public interest Within powers Reasons given Public (except when confidential) Review by High Court
Personnel
§11 Personnel: Regulator appoint CEO CEO appoint employees Minister may instruct use of personnel from
another regulator or licensing authority Personnel actions to be professional
Funds
§12 Funds Appropriated by Parliament Levies under other Legislation:
Gas Regulator Levies Act Electricity Act Petroleum Pipelines money Bill
License fees Charges
Accounting & Reporting
§13 Accounting: Public Finance Management Act Separation of Accounts Costs shared in proportion to costs incurred Auditing by Auditor Geneal
§14 Reporting: PFMA applies Include:
Licenses Regulations and Directives Strategies & commercial developments Safety, Health & Environment
Repeals & Transitional Measures
§15 Repeals: Refer to Schedule (corresponding sections
of three acts)
§16 Transitional Provisions: CEO of National Electricity Regulator is CEO
of National Energy Regulator Staff of National Electricity Regulator are
staff of National Energy Regulator Assets & Liabilities of National Electricity
Regulator
Schedule
Repeals: Repeals regulator/authority established by:
Electricity Act (No 41 of 1987) Gas Act (No 48 of 2001) Petroleum Pipelines Act (No 60 of 2003)
Amends: Definitions of regulator/authority refer to the Energy Regulator
established by the National Energy Regulator Bill in the following:
Electricity Act (No 41 of 1987) Gas Act (No 48 of 2001) Petroleum Pipelines Act (No 60 of 2003) Gas Regulator Levies Act (No 75 of 2002)
“Gas Operator” to “National Energy Regulator” in the Gas Act.
Memorandum of Objects
Consultation: Cabinet approved consultation not necessary
as this Bill is merely an amalgamation of sections of other Acts that have already been through a consultation process.
Financial Implications: None to state as the Regulator is financed by
the industries that it serves.
Parliamentary Procedure: Section 75 Bill as the Bill does not affect
Provinces
Energy Regulator Implementation Plan
Apr May Jun Jly Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Energy Regulator Bill / Parliament
Promulgation Energy Regulator Bill Risk: Parliament may not pass Bill
Energy Regulator Act Into Force
Advertise Regulator Posts
Interviews Posts & Approval
Appointment and Training
Regulator Training NORAD
Regulator: Gas & Pet Pipeline Fns Gas/PP
Current Electricity Regulator
Regulator: Add Electricity Function
2004 2005
END