PORTFOLIO COMMITTEE ON ENERGY 4 th Qt 201415

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PORTFOLIO COMMITTEE ON ENERGY 4 th Qt 2014/15 and 1 st Qt 2015/16 PERFORMANCE

PORTFOLIO COMMITTEE ON ENERGY 4 th Qt 2014/15 and 1 st Qt 2015/16 PERFORMANCE REPORTS 4 August 2015 1

Background • This presentation reflects the performance information of the Department of Energy (Do.

Background • This presentation reflects the performance information of the Department of Energy (Do. E) for the fourth quarter 2014/15 and first quarter of 2015/16. • At the end of the 4 th Quarter performance report an overview is given of the 14/15 financial year. • Do. E implements its Annual Performance Plan (APP) through six programmes; ü Programme 1 – Administration, ü Programme 2 – Energy Policy and Planning, ü Programme 3 – Petroleum & Petroleum Products Regulation, ü Programme 4 – Electrification & Energy Programme and Projects, ü Programme 5 – Nuclear Energy and ü Programme 6 – Clean Energy. • The APP and Financial performance of the different Programmes are summarized in this presentation, but the complete APP performance targets are presented in Appendix A (4 th Q 14/15) and Appendix C (1 st Q 15/16), while the detailed Financial Performance per Programme is presented in Appendix B (4 th Q 14/15) and Appendix D (1 st Q 15/16) respectively. 2

Summary APP th 4 Quarter 2014/15 3

Summary APP th 4 Quarter 2014/15 3

Robot Status Legend Progress Description Indicative Quarterly Progress per Assigned Percentage (%) Q 1

Robot Status Legend Progress Description Indicative Quarterly Progress per Assigned Percentage (%) Q 1 Activity not initiated on time or progress slower than planned (annual target will not be met) 0 -10% Progress slower than planned (annual target unlikely to be fully achieved) 11 -24% Delivery on track (annual target likely to be achieved) 25 -49% Q 2 Q 3 Q 4 Robot Status 11 -24% 25 -37% 38 -49% Not Achieved 25 -37% 38 -49% 50 -99% Partially Achieved 50 -74% 75 -99% 100% Achieved 4

Inter-Branch Comparison of Progress, 4 th Quarter 2014/15 5

Inter-Branch Comparison of Progress, 4 th Quarter 2014/15 5

4 th QUARTER 2014/15 PERFORMANCE SUMMARY AGAINST THE APP Branches/Units Number of Quarterly Achieved

4 th QUARTER 2014/15 PERFORMANCE SUMMARY AGAINST THE APP Branches/Units Number of Quarterly Achieved Partially Not targets in APP Quarterly Achieved Targets Quarterly Targets 3 0 2 1 10 3 2 5 12 5 6 1 Clean Energy 4 3 0 1 Programmes and Projects 5 3 2 0 Corporate Services 4 2 1 1 Financial Management Services 1 1 0 0 Governance and Compliance 0 0 39 17 13 9 Policy and Planning Petroleum and Petroleum Products Regulation Nuclear Energy Total Out of a total of 39 fourth quarter 2014/15 targets, the department achieved 17 (44%) of its targets, partially achieved 13 (33%), and did not achieve 9 (23%). 6

Programme 1: Administration (Corporate Services, 4 th Qt 2014/15) Highlights of Targets achieved •

Programme 1: Administration (Corporate Services, 4 th Qt 2014/15) Highlights of Targets achieved • 2. 2% of people with disabilities, against target of 1. 8% • 5 izimbizos/PPP conducted which is 100% achievement Summary of Targets not achieved • 42. 5% of women in SMS positions, vs : 38. 55% • 10. 26% of vacancy rate against the target of 10% Comments • The department will focus on females for vacant positions at SMS level in order to address the target of 42. 5% women. 7

Programme 1 (Financial Management Services, 4 th Qt 2014/2015) Highlights of Targets achieved Ø

Programme 1 (Financial Management Services, 4 th Qt 2014/2015) Highlights of Targets achieved Ø 100% approved invoices paid within 30 days of receipt. Summary of Targets not achieved Ø None. Comments Ø The Department has continued to maintain a good record of paying invoices within 30 days. 8

Programme 2 (Energy Policy and Planning , 4 th Qt 2014/15) Highlights of Targets

Programme 2 (Energy Policy and Planning , 4 th Qt 2014/15) Highlights of Targets achieved • Technical outputs from DOE have been included in the IEP final report. • Draft 20 Year Liquid Fuel Master Plan (20 YRLFM) is currently undergoing consultation process with SOCs before it can be submitted to Cabinet for approval. Summary of Targets not achieved • Promulgation of norms and standards for municipal network asset rehabilitation. Comments • The delay in municipal network asset rehabilitation is due to finalization of funding options 9

Programme 3 ( Petroleum and Petroleum Products Regulation , 4 th Qt 2014/15) Highlights

Programme 3 ( Petroleum and Petroleum Products Regulation , 4 th Qt 2014/15) Highlights of Targets achieved • Enforcement notices issued in 85% of cases where non-compliance is identified during routine compliance inspections was achieved. Summary of Targets not achieved • 100 % arbitration requests could not be finalised due to limited cooperation between parties. • 30% of licence applications where BEE ownership is at least 50% could not be achieved. • Implementation and monitoring of the biofuels pricing framework. • 10 published working rules. Comments • Some of the targets could not be achieved as they are dependent on external parties such as the Task Team on Biofuels which comprised of different departments and new issues are continuously being added. 10

Programme 4 ( Electrification and Energy Programme and Project Management, 4 th Qt 2014/15)

Programme 4 ( Electrification and Energy Programme and Project Management, 4 th Qt 2014/15) Highlights of Targets achieved • 14 030 non-grid connections achieved against the target of 15 000. • The 11 th IPP report on construction has been completed. BW 1 is at 99% complete and BW 2 is at 47% complete. 25 IPPs have reached COD for Bid Window 1 and 9 IPPs have reached COD for Bid Window 2 and are in full commercial operation. • Ngwaabe Ie. C is completed and was operationalized by the 22 nd of May 2015. Summary of Targets not achieved • 2 new bulk substations built against the target of 14. Comments • The delays of building new bulk substations are due to late start of the project, delays in designs and delivery of ordered materials. 11

Programme 5 (Nuclear Energy, 4 th Qt 2014/15) Highlights of Targets achieved • Development

Programme 5 (Nuclear Energy, 4 th Qt 2014/15) Highlights of Targets achieved • Development of the implementation plan on the Mission Report was finalised and approved. • Nuclear security compliance reports developed and approved. • 2 nuclear safeguards compliance report developed and approved. • 1 nuclear safeguards compliance report developed and approved. • 3 public awareness campaigns conducted. Summary of Targets not achieved • Development of the Fund Bill is in progress and consultations with Chief State Law Adviser is in progress. This target was partially achieved. Comments • Procurement process for new nuclear build programme in progress. 12

Programme 6 (Clean Energy, 4 th Qt 2014/15) Highlights of Targets achieved • None.

Programme 6 (Clean Energy, 4 th Qt 2014/15) Highlights of Targets achieved • None. Summary of Targets not achieved • 1. 5 TWh of energy savings from EEDSM projects (cumulative). • Development of baseline energy profiles for additional 30 municipalities. • Promulgation of NEE Strategy document. • Solar water heating units in residential and commercial sectors. Comments • The process of developing the templates for Measurement and Verification of energy savings has commenced. • Solar water heater contacting model submitted to Cabinet for moving the programme from Eskom to DOE. 13

4 th Quarter 2014/15 Financial Performance 14

4 th Quarter 2014/15 Financial Performance 14

PRESENTATION LAYOUT • 4 th Quarter Financial Performance for 2014/15 - Overview per Economic

PRESENTATION LAYOUT • 4 th Quarter Financial Performance for 2014/15 - Overview per Economic Classification • 4 th Quarter - Top 5 Major Cost Drivers (Goods & Services) for 2014/15 • 4 th Quarter Financial Performance for 2014/15 – Overview per Programme • 4 th Quarter Transfer Payment Schedule for 2014/15 15

4 th QUARTER FINANCIAL PERFORMANCE FOR 2014/15 Overview – Economic Classifications VOTE 29: ENERGY

4 th QUARTER FINANCIAL PERFORMANCE FOR 2014/15 Overview – Economic Classifications VOTE 29: ENERGY 2014/15 ECONOMIC CLASSIFICATION ADJUSTED BUDGET ACTUAL VARIANCE Rand - Thousand R'000 7, 43 TOTAL Compensation of Employees Goods & Services Payments for Financial Assets Transfers & Subsidies Payments for Capital Assets 7, 794 % % BUDGET VARIANCE EXPENDED % 6, 220, 1, 217, 68 113 1 16. 37% % 83. 63% 273, 246 264, 266 8, 980 3. 29% 96. 71% 244, 08 209, 34, 7 1 341 40 14. 23% 85. 77% 33 33 - 0. 00% 100. 00% 6, 91 5, 742, 7 1, 172, 5 5, 239 10 29 16. 96% 83. 04% 3, 7 1, 4 5, 195 63 32 27. 56% 72. 44% 16

4 th QUARTER FINANCIAL PERFORMANCE - 2014/15 VARIANCES • The Department’s 2014/15 adjusted budget

4 th QUARTER FINANCIAL PERFORMANCE - 2014/15 VARIANCES • The Department’s 2014/15 adjusted budget was a total of R 7. 44 billion • As at 31 March 2015, a total of R 6. 22 billion or 83. 6% of this adjusted budget had been disbursed. • This resulted in an unspent budget of R 1. 22 billion or 16. 37% of the adjusted allocation, mainly due to the under spending in the transfer payments economic classification. Compensation of employees: • The budget under-spending in this economic classification accumulated to R 8. 98 million by year-end due to the high rate of attrition during the financial year. • Also contributing to the variance was the delays in filling of vacancies, some positions had to undergo lengthy work study processes, which had to be finalized before the position could be filled. 17

4 th QUARTER FINANCIAL PERFORMANCE FOR 2014/15 VARIANCES (Continued) Goods & services: • The

4 th QUARTER FINANCIAL PERFORMANCE FOR 2014/15 VARIANCES (Continued) Goods & services: • The under-spending of R 34. 74 million or 14. 23% of the total adjusted budget for goods and services for the 2014/15 financial year. • The under-spending is mainly attributable to the delayed appointment of service providers, delayed commencement of projects resulting in incomplete projects at year-end as well as operational savings brought about by cost reduction measures implemented during 2014/15. Transfer payments: • The Department disbursed payments totalling R 5. 74 billion to public entities, municipalities and implementing agents which resulted in a budget under-spending of R 1. 17 billion (16. 96%) at year-end. The under-spend is mainly due to: ü INEP Non-grid: R 35. 53 million (33. 7%) below budget attributable to the late start of the programme’s implementation in 2014/15. ü EEDSM Eskom (SWHP): R 1. 14 billion (69. 4%) was not transferred to Eskom, as a result of changes to the implementation model. 18

4 th QUARTER (TOP 5) - MAJOR COST DRIVERS: GOODS AND SERVICES 2014/15 COST

4 th QUARTER (TOP 5) - MAJOR COST DRIVERS: GOODS AND SERVICES 2014/15 COST DRIVERS - GOODS AND SERVICES April-March 2015 R'000 Travel and subsistence Consultants: Business and advisory services Operating leases Venues and facilities Computer services Total –Top 5 TOTAL –Goods & Services 56, 344 43, 780 27, 145 19, 706 10, 264 157, 239 209, 341 2014/15 % of Total Goods & Services Spent R'000 26. 91% 20. 91% 12. 97% 9. 41% 4. 90% 75. 11% 100. 00% • The total budget spent on the procurement of various Goods & services amounted to R 157. 2 m; • The top 5 cost items collectively accounted for 75. 1% of the total spend, an increase from 74% reported in 2013/14 • A significant portion of the Department’s goods and services spending, 26. 9%, was directed towards travel and subsistence cost, a decrease from 31. 2% expended on this item in 2013/14. The decrease is attributable to the implementation of cost containment measures in 2014/15. • Leases is mainly for office accommodation lease rentals for head office regional offices . Spending on consultants increased from 13. 6% reported in 2013/14 to 20. 91% in 2014/15. 19

4 th QUARTER FINANCIAL PERFORMANCE FOR 2014/15 - per PROGRAMME VOTE 29: ENERGY 2014/15

4 th QUARTER FINANCIAL PERFORMANCE FOR 2014/15 - per PROGRAMME VOTE 29: ENERGY 2014/15 ADJUSTED BUDGET ACTUAL VARIANCE R'000 7, 437, 794 6, 220, 113 1, 217, 681 16. 37% 83. 63% 260, 601 257, 168 3, 433 1. 32% 98. 68% Energy Policy & Planning 53, 053 41, 749 11, 304 Petroleum & Petroleum Products Regulation 78, 210 64, 548 13, 662 Electricity and Energy 4, 217, 32 4, 180, 97 Programme Management 7 3 36, 354 21. 31% 78. 69% 17. 47% 82. 53% 0. 86% 99. 14% 846, 529 845, 418 1, 111 0. 13% 99. 87% 1, 982, 074 830, 257 1, 151, 817 58. 11% 41. 89% PROGRAMMES TOTAL Administration Nuclear Energy Clean Energy % % BUDGET VARIANCE EXPENDED % % Please see a detailed breakdown of 4 th Quarter Financial Performance for 2014/15 per programme in Appendix B. 20

4 th QUARTER TRANSFER PAYMENT SCHEDULE FOR 2014/15 Adjusted Programme Projects & Entities Programme

4 th QUARTER TRANSFER PAYMENT SCHEDULE FOR 2014/15 Adjusted Programme Projects & Entities Programme EEDSM - 6 Municipalities EEDSM – Eskom SANEDI IPEEC, IRENA- Int. fees Programme NNR 5 NECSA IAEA, GIF, AFRA- Int. fees Programme INEP - Municipalities 4 INEP - Eskom INEP – Non-grid Programme Households Budget YTD-Mar Actual R’ 000 136, 905 05 1, 636, 4 500, 000 00 162, 685 85 1, 678 80 33, 697 97 760, 678 78 17, 6 17, 003 40 1, 104, 658 58 2, 948, 037 37 105, 5 70, 000 25 3, 9 YTD Variance e R’ 000 % 0. 00% - 1, 136, 40 69. 45% 0 0. 00% - 0. 12% 2 0. 00% - 63 3. 61% 7 0. 00% - 35, 52 33. 67% 5 21

2014/15 Roll-over application Quarter 4 - Roll over application • The Department submitted a

2014/15 Roll-over application Quarter 4 - Roll over application • The Department submitted a request to the National Treasury motivating for a portion of the unspent budget to be rolled over into the 2015/16 financial year to enable the completion of some projects which commenced in 2014/15. • The rollover submission included the following: Transfer Payments –budget balance R 1. 17 billion • R 1. 14 billion to implement the SWH programme. Approval of the new implementation model has been received from National Treasury. • R 35. 5 million to pay service providers for services rendered under the INEP Non-grid project Goods and services • Costs to the value of R 12. 16 million met the criteria for a roll over of funds into the 2015/16 financial year. • The roll over confirmation from National Treasury is still outstanding. 22

Conclusion 4 th Quarter 14/15 The following can be highlighted from the 4 th

Conclusion 4 th Quarter 14/15 The following can be highlighted from the 4 th Q performance: • Out of a total of 39 fourth quarter 2014/15 targets, the department achieved 17 (44%) of its targets, partially achieved 13 (33%), and did not achieve 9 (23%). • The department achieved 2. 2% employment of staff with disabilities thus exceeding the target of 1. 8%, however has to improve on of women in SMS positions; • SWH, EE and Bio fuels programme did not achieve the outcomes as planned, due to different reasons; • Progress on target with the RE IPP programme: Bid Window (BW) 1 is 99% complete, and BW 2 is at 47% complete. 25 IPPs have reached their Commercial Operation Date (COD) for BW 1, and 11 IPPs have reached COD for BW 2 and are in full commercial operation producing about 1871 MW; Ø The number of electricity connections achieved in the 4 th Qt 2014/15 stood at 87 664. Cumulative connections for 2014/15 amounted to 233 455; Ø The draft 20 YR Liquid Fuels Roadmap was completed but is currently undergoing consultation; • A total of 1580 fuel samples were achieved for the financial year 2014/15, due to improved processes in 4 th quarter of which 1080 samples were done; • DOE has unspent its budget by R 1. 22 billion or 16. 37% of the adjusted allocation, mainly due to the under spending in the transfer payments economic classification; • All service provider invoices were paid within 30 days of receipt and submitted to NT by the 7 th of each month. 23

Overview of 2014/15 Financial year 24

Overview of 2014/15 Financial year 24

KEY ACHIEVEMENTS FOR 14/15 FINANCIAL YEAR Policy Development: • Integrated Energy Plan (IEP): Since

KEY ACHIEVEMENTS FOR 14/15 FINANCIAL YEAR Policy Development: • Integrated Energy Plan (IEP): Since the approval and publication of the first draft during the 2013/14 financial year, we have addressed the public comments and produced a draft report which includes the technical outputs. The final IEP report will be submitted to Cabinet during the third quarter of the 2015/16 financial year. • 20 year Liquid Fuels Framework (20 YRLFRM) - The draft 20 YRLFRM has been completed but it is currently undergoing consultations process before is submitted to Cabinet for approval, • The Draft Gas Utilization Master Plan was completed and is being considered within the DOE; and • The IRP was implemented according to timeframes set out in IRP 2010. 25

KEY ACHIEVEMENTS FOR 14/15 FINANCIAL YEAR (cont) Electrification Programme • The total household connection

KEY ACHIEVEMENTS FOR 14/15 FINANCIAL YEAR (cont) Electrification Programme • The total household connection target for 2014/15 was 265 000 grid and 15000 non-grid and achieved 247 485 with 233 455 grid and 14 030 non-grid connections. • More than 70% of the funding was allocated to the 24 most deprived District Municipalities. Community Upliftment One Integrated Energy Centre (Ie. C) at Ngwabe village in Limpopo province has been completed. Thembisile Hani Ie. C in the Eastern Cape has not been completed due to contractual issues and acquisition of land issues Learners Focus Week: A leaners focus week was held to disseminate information on energy as well as encouraging students to take science and mathematics subjects to enable them to be eligible to career paths related to the energy sector. More than 300 students participated 26

KEY ACHIEVEMENTS FOR 14/15 FINANCIAL YEAR (cont) Community Upliftment (CONT. ) Workshops: Four (4)

KEY ACHIEVEMENTS FOR 14/15 FINANCIAL YEAR (cont) Community Upliftment (CONT. ) Workshops: Four (4) workshops were conducted on business opportunities in the energy sector for women in Gauteng, Western Cape, Kwa. Zulu-Natal and Mpumalanga Provinces. A total of 350 women from the historically disadvantaged communities participated. The workshops provided information on business opportunities in the energy sector which includes renewables, electricity infrastructure, oil and gas. • • Participate in the June 16 Youth day and Nelson Mandela Day. International Women’s day celebration and launch of terms of reference for the Department’s Women Forum. Petroleum • 2070 site inspections were conducted by Department officials during 2014/15, to ensure regulatory compliance concerning petroleum products’ specifications and standards by all manufacturers, wholesalers, and retailers. 27

KEY ACHIEVEMENTS FOR 14/15 FINANCIAL YEAR (cont) Petroleum (cont. ) • 712 out of

KEY ACHIEVEMENTS FOR 14/15 FINANCIAL YEAR (cont) Petroleum (cont. ) • 712 out of 1050 (67. 8%) licence applications received were finalised within 90 days. • 26 site & retail out of 30 site & retail (86. 7%) new to industry licence applications received were finalised within 60 days. • Over 40 PPPs were hosted during the year, focusing, amongst others, on the improvement of the petroleum licencing process and the role of the applicants in improving the turnaround time. • Margin adjustments as part of the implementation of the Regulatory Accounting System (RAS) were effected in December 2014. 28

KEY ACHIEVEMENTS FOR 14/15 FINANCIAL YEAR (cont) Nuclear • • • Nuclear Build: Two

KEY ACHIEVEMENTS FOR 14/15 FINANCIAL YEAR (cont) Nuclear • • • Nuclear Build: Two studies were completed in the period under review: (a) Finance Options, Models and Solutions for the nuclear build programme (in conjunction with the National Treasury and Department of Public Enterprises), and (b) Economic Impact of Localisation of the nuclear programme. Recommendations from these two studies will be presented to the Energy Security Committee in order to make an informed decision on financing of the nuclear build programme 5 Vendor parade workshops have been held; and 50% authorisation applications were processed and approved within the stipulated turn around time of 8 weeks. Financial • All invoices were paid within 30 days of receipt; and • The AGSA reported that for the 2014/15 financial year, the Department has achieved a Clean Audit. 29

CHALLENGES Background on Challenges facing the Department and the energy sector: • Reduce escalating

CHALLENGES Background on Challenges facing the Department and the energy sector: • Reduce escalating energy prices of both electricity and petroleum products, to cushion the adverse impact on the poor. • Implement our plans to keep the lights on in the short- medium- to long- term, in the context of Eskom’s balance sheet challenges. This includes finding a solution to finance the various projects in a way that balances steep electricity tariff increases on one hand, and on the other, against blackouts and stunted economic growth due to lack of adequate power generation capacity. • Provide short term/ immediate power solutions that will assist the country to meet the current energy demand, until Medupi, Kusile and Ingula pump storage station are fully operational in the absence of a clear ESI end state. • Filling of positions timeously is a challenge as well as obtaining the requisite skills. 30

CHALLENGES (cont) • Secure liquid fuels supply chains including crude oil supply, refining and

CHALLENGES (cont) • Secure liquid fuels supply chains including crude oil supply, refining and distribution. • Improve our Energy Efficiency and Demand Side Management – Implementation of new contracting model for the SWH programme. • Transform the energy sector - bring more historically disadvantaged role players into the economic mainstream and increase access to ordinary South Africans to modern energy services. • The aging electricity distribution infrastructure – its contribution to blackouts, load shedding and investment requirements. • INEP – capacity of Municipalities to deliver on the electrification programme – Growing cost per connection as the programme moves deep into rural areas, and – Network capacity constrains. 31

CHALLENGES AND OUTSTANDING ISSUES – PLANS TO ADDRESS ISSUES • Nuclear – Finalisation of

CHALLENGES AND OUTSTANDING ISSUES – PLANS TO ADDRESS ISSUES • Nuclear – Finalisation of the amendments to the NNR Amendment Bill, National Radioactive Fund Bill and the Draft Nuclear Energy Bill to accommodate further consultation. Proposed submission to Cabinet is 2015/16 financial year. • Consolidated monitoring and evaluation of departmental programmes – challenges of funding were experienced in this area to address the performance of programmes like; INEP, IPPs and energy efficiency initiatives. Requested additional funding for operational budget, as well as “top slicing”. • SWH roll-out – The implementation of the new Contracting model and establishment of the local SWH manufacturing industry took much longer than anticipated. Implementation plan still to be finalised. • Gas – The development of an gas industry is required to ensure the implementation of energy mix policy. 32

CHALLENGES AND OUTSTANDING ISSUES – PLANS TO ADDRESS ISSUES (cont. ) • Electricity Distribution

CHALLENGES AND OUTSTANDING ISSUES – PLANS TO ADDRESS ISSUES (cont. ) • Electricity Distribution backlogs – The DOE received an allocation of R 320 mil to run a pilot on addressing the backlog model. Additional funding has been requested from NT to address these issues. Not only infrastructure funding, but also for planning, project management and oversight activities. • Bio-fuels programme – Finalisation of food stock, subsidy and pricing framework to be reached between different departments. • Oversight of SOE’s - Oversight of SOE’s remains a challenge for the Department due to governance challenges experienced by some of the SOE/Cs and capacity challenges within the DOE . Requesting urgent additional funding for improving this function, as well as looking at re-allocation of specific tasks within DOE. 33

Summary APP 1 st Quarter 2015/16 34

Summary APP 1 st Quarter 2015/16 34

Inter-Branch Comparison of Progress, 1 st Quarter 2015/16 35

Inter-Branch Comparison of Progress, 1 st Quarter 2015/16 35

1 st QUARTER 2015/16 PERFORMANCE SUMMARY AGAINST THE APP Branches/Units Number of Quarterly targets

1 st QUARTER 2015/16 PERFORMANCE SUMMARY AGAINST THE APP Branches/Units Number of Quarterly targets in APP Achieved Quarterly Targets Partially Not Achieved Quarterly Targets 18 11 3 4 3 1 0 2 13 7 1 5 7 3 2 2 11 6 2 3 Corporate Services 5 3 1 1 Financial Management Services 1 1 0 0 Governance and Compliance 3 1 2 0 61 33 11 17 Policy and Planning Petroleum and Petroleum Products Regulation Nuclear Energy Clean Energy Programmes and Projects Total For the first quarter 2015/16, out of a total of 61 targets, the department achieved 33 (55%) of its targets, partially achieved 11 (18%), and did not achieve 17 (28%). 36

Programme 1: Administration (Corporate Services , 1 st Qt 2015/16) Highlights of Targets achieved

Programme 1: Administration (Corporate Services , 1 st Qt 2015/16) Highlights of Targets achieved • Vacancy rate of 9. 7% was achieved against the target of 10%. • HR plan was reviewed. • A target of 2% of people with disabilities employed was achieved. • Training of officials in nuclear was partially achieved as only three officials were trained. • Out of 18 bilateral agreements, 13 were entered into. This target was partially achieved Summary of Targets not achieved • 50% of women in SMS positions was not achieved as the figure is currently at 38%. Comments • The process of recruiting more females on SMS positions has commenced for vacant positions. 37

Programme 1: Administration (Financial Management Services , 1 st Qt 2015/16) Highlights of Targets

Programme 1: Administration (Financial Management Services , 1 st Qt 2015/16) Highlights of Targets achieved • 100% approved invoices paid within 30 days of receipt was achieved. Summary of Targets not achieved • None. Comments • None. 38

Programme 2: Policy and Planning, 1 st Qt 2015/16) Highlights of Targets achieved •

Programme 2: Policy and Planning, 1 st Qt 2015/16) Highlights of Targets achieved • Draft Coal, Gas, Petroleum and commodity flows compiled. • A draft GUMP has been developed and being considered for approval. • Gas Amendment Bill – consultation with NEDLAC has taken place. • Consultation and internal engagement on draft 20 YLFMP report has taken place with SOCs. • Comments on SA Biofuels Regulatory Framework have been included in the framework and submitted for Ministerial approval. • Consultation on Petroleum Pipelines Act with NERSA has taken place and Amendment Regulations are submitted for Ministerial approval to promulgate. • NERA Bill has been submitted and approved by Cabinet with certain conditions. Summary of Targets not achieved • Revised ADAM Report could not be finalised. • Norms and Standards for municipal assets. • Review and revise the electricity industry structure and propose options. • Development of the SFF legislation could not be achieved this quarter. Comments • The SFF legislation will be prioritised in 2016. 39

Programme 3: Petroleum and Petroleum Products Regulation, 1 st Qt 2015/16) Highlights of Targets

Programme 3: Petroleum and Petroleum Products Regulation, 1 st Qt 2015/16) Highlights of Targets achieved • 607 retail site inspections conducted: January to March 2015. The target was exceeded by 107 new retail site inspections. • Enforcement notices issued in 90% of cases where non-compliance is identified during routine compliance inspections. Summary of Targets not achieved • Enforcement notices issued in 95% of cases where non-compliance is identified during routine fuel sample testing. Comments • None. 40

Programme 4: Electrification and Energy Programme and Project Management, 1 st Qt 2015/16) Highlights

Programme 4: Electrification and Energy Programme and Project Management, 1 st Qt 2015/16) Highlights of Targets achieved • All Ie. Cs were monitored during the first quarter. Monthly reports were submitted on the engagements with Ie. Cs. • Provincial reports prepared from the INEP Municipality Programme. • Contracts for locally manufactured products placed. Training & capacity building of installation teams in identified municipalities completed. • The 12 th IPP report on construction has been completed. BW 1 is at 99% complete and BW 2 is at 64% complete. 26 IPPs have reached COD for Bid Window 1 and 11 IPPs have reached COD for Bid Window 2 and are in full commercial operation. Summary of Targets not achieved • Project Management Business Process. • Implement dashboards for monitoring of 3 projects. Comments • None. 41

Programme 5: Nuclear Energy, 1 st Qt 2015/16) Highlights of Targets achieved • Draft

Programme 5: Nuclear Energy, 1 st Qt 2015/16) Highlights of Targets achieved • Draft updated National Nuclear Disaster Management Plan – relevant stakeholders consulted on progress regarding the implementation and response of the action plan on the emergency plan. • Draft report for transactional advisor motivation completed. • 70% of authorisation applications processed within the 8 week time period. • Nuclear safeguard compliance reports submitted for approval. • One nuclear safeguard compliance audit submitted and approved. • 1 community outreach event held. Summary of Targets not achieved • Draft revision of the NNR Amendment Act. • Fund Bill. Comments • Additional vendor workshop been held. 42

Programme 6 Clean Energy, 1 st Qt 2015/16) Highlights of Targets achieved • Energy

Programme 6 Clean Energy, 1 st Qt 2015/16) Highlights of Targets achieved • Energy consumption baseline - Stakeholder engagement process with an additional 20 target municipalities conducted. • Renewable Energy Implementation Report - Developed the Terms of Reference & for the appointment of a service provider. • Appointment of a service provider for the coordination & management of the hosting of SAIREC. Summary of Targets not achieved • There were no SWH units installed this quarter. The Cabinet Memorandum which contains the clarification on the mow of the programme form Eskom to DOE was approved on 26 June 2015. Comments • None. 43

1 st Quarter 2015/16 Financial Performance 44

1 st Quarter 2015/16 Financial Performance 44

PRESENTATION LAYOUT • 1 st Quarter Financial Performance for 2015/16 - Overview per Economic

PRESENTATION LAYOUT • 1 st Quarter Financial Performance for 2015/16 - Overview per Economic Classification • 1 st Quarter - Top 5 Major Cost Drivers (Goods & Services) for 2015/16 • 1 st Quarter Financial Performance for 2015/16 – Overview per Programme • 1 st Quarter Transfer Payment Schedule for 2015/16 45

QUARTER 1 - FINANCIAL PERFORMANCE FOR 2015/16 Overview – Economic Classifications VOTE 26: ENERGY

QUARTER 1 - FINANCIAL PERFORMANCE FOR 2015/16 Overview – Economic Classifications VOTE 26: ENERGY 2015/16 ECONOMIC CLASSIFICATION ENE TOTAL Compensation of Employees Goods & Services Transfers and Subsidies Payments for Capital Assets Payments for Financial Assets YTD BUDGET YTD ACTUAL R'000 7, 482, 09 4 1, 922, 345 1, 895, 160 289, 479 YTD % BUDGET VARIANCE EXPENDED R'000 % % 27, 185 67, 927 70, 437 -2, 510 1. 41% 98. 59% -3. 70% 103. 70% 203, 116 51, 680 29, 444 22, 236 43. 03% 56. 97% 6, 985, 49 2 1, 801, 842 1, 793, 969 7, 873 0. 44% 99. 56% 4, 00 7 896 1, 305 -409 -45. 65% 145. 65% - 5 -5 0. 00% 46

QUARTER 1 - FINANCIAL PERFORMANCE FOR 2015/16 VARIANCES • The Department’s 2014/15 adjusted budget

QUARTER 1 - FINANCIAL PERFORMANCE FOR 2015/16 VARIANCES • The Department’s 2014/15 adjusted budget is a total of R 7. 48 billion • On 30 June 2015, a cumulative budget of R 1. 92 billion was available from which R 1. 9 billion or 98. 6% was utilized resulting in a budget underspending of R 27. 19 million or 1. 41%. The Transfers category accounted for 37. 6% and goods and services for 59. 9% of the total under spending. Compensation of employees: • R 2. 51 million (3. 70%) over budget attributable to the once-off gratuity paid in April 2015 which was funded, however there were unfunded fixed term contract positions which are carried additional to the establishment. • The Department also had a budget reduction of R 22. 11 million in 2015/16, and this will have an impact on the monthly/quarterly variances. 47

QUARTER 1 - FINANCIAL PERFORMANCE FOR 2015/16 VARIANCES (continued): Goods and services: • R

QUARTER 1 - FINANCIAL PERFORMANCE FOR 2015/16 VARIANCES (continued): Goods and services: • R 22. 24 million (43. 03%) below budget, major variances being in: ü Consultants / business advisory services item (R 10. 57 m) attributable to delays in activating projects carried over from the previous financial year; ü Operating leases (R 8. 54 m) due to outstanding office accommodation lease invoices which have not been received from DPW as planned; ü Computer services item (R 1. 40 m) attributable to delays in installation of services at new regional office premises. Transfer payments • R 7. 87 million (0. 44%) below budget due to the non-disbursement of payments in INEP Non-grid: R 10. 74 million (50%). Some invoices which were returned to service providers for correction as these documents contained some anomalies. Payments for capital assets • R 408 thousand (45. 56%) over budget, due to the timing of the procurement of office furniture & equipment 48

QUARTER 1 - TOP 5 MAJOR COST DRIVERS: GOODS AND SERVICES 2015/16 COST DRIVERS

QUARTER 1 - TOP 5 MAJOR COST DRIVERS: GOODS AND SERVICES 2015/16 COST DRIVERS - GOODS AND SERVICES Rand thousand Travel and Subsistence Consult: Business & Advisory Services Venues and Facilities Advertising Communication Total –Top 5 TOTAL –Goods & Services April-June 2015 R'000 11, 360 3, 686 2, 479 1, 779 21, 783 29, 444 2015/16 % of Total Goods & Services Spent R'000 38. 58% 12. 52% 8. 42% 6. 04% 73. 98% 100. 00% • The total budget spent on the procurements of various Goods & services amounted to R 29. 4 m; • The top 5 cost items collectively accounted for 73. 98% of the total spend; • A significant portion of the Department’s goods and services spending, 38. 58%, was directed towards travel and subsistence cost. 49

QUARTER 1 - FINANCIAL PERFORMANCE FOR 2015/16 - per PROGRAMME VOTE 26: ENERGY PROGRAMMES

QUARTER 1 - FINANCIAL PERFORMANCE FOR 2015/16 - per PROGRAMME VOTE 26: ENERGY PROGRAMMES TOTAL Administration Energy Policy & Planning Petroleum & Petroleum Products Regulation Electricity and Energy Programme Management 2015/16 ENE YTD BUDGET R'000 YTD YTD % ACTUAL VARIANCE R'000 7, 482, 094 1, 922, 345 1, 895, 160 R'000 % YTD % BUDGET EXPENDED % 27, 185 1. 41% 98. 59% 242, 598 57, 257 53, 786 3, 471 6. 06% 93. 94% 45, 096 11, 209 8, 958 2, 251 20. 08% 79. 92% 74, 37 18, 507 14, 992 8 3, 51 18. 99% 5 81. 01% 5, 778, 29 1, 413, 270 1, 403, 826 7 9, 44 0. 67% 4 99. 33% Nuclear Energy 654, 398 394, 072 391, 805 2, 267 0. 00% Clean Energy 687, 327 28, 030 21, 793 6, 237 22. 25% 77. 75% Please see a detailed breakdown of 1 st Quarter Financial Performance for 2015/16 per programme in Appendix D. 50

1 ST QUARTER TRANSFER PAYMENT SCHEDULE FOR 2015/16 2015 ENE PROGRAMME TRANSFER DETAILS Programme

1 ST QUARTER TRANSFER PAYMENT SCHEDULE FOR 2015/16 2015 ENE PROGRAMME TRANSFER DETAILS Programme 6 EEDSM - Municipalities YTD Budget Actual R’ 000 Variance R’ 000 % 177, 899 - - - 0. 00% 398, 315 - - - 0. 00% 64, 861 16, 215 - 0. 00% 1, 980, 340 - - - 0. 00% 3, 613, 243 1, 378, 886 - 0. 00% 131, 067 21, 540 10, 799 10, 741 49. 87% 21, 487 7, 878 - 0. 00% 580, 358 377, 224 - 0. 00% 16, 612 - 457 -457 0. 00% Programme 1 Households 388 99 2, 114 SETAs 922 - 396 Total Transfers EEDSM – Eskom SANEDI Programme 4 INEP - Municipalities INEP - Eskom INEP – Non-grid Programme 5 NNR NECSA IAEA- Int. fees -2, 015 -2035. 35% -396 0. 00% 6, 985, 492 1, 801, 842 1, 793, 969 7, 873 0. 44% 51

QUARTER 1 - TRANSFER PAYMENT SCHEDULE FOR 2015/16 • The Department disbursed a total

QUARTER 1 - TRANSFER PAYMENT SCHEDULE FOR 2015/16 • The Department disbursed a total of R 1. 79 billion from a budget allocation of R 1. 8 billion resulting in a YTD budget under-spending of R 7. 87 million or 0. 44%. • INEP Non-grid project below budget by R 10. 74 million (50%). Invoices received from service providers were returned for rectification due to the quantities billed not corresponding with the actual installations performed. • Transfer payments to SETAs and leave gratuities to officials was overspent. The SETA payment made in June was planned for payment in July. • The major contributor to the over spending in household is a GEPF liability paid in May 2015. 52

Conclusion 1 st Quarter 15/16 The following can be highlighted from the 1 st

Conclusion 1 st Quarter 15/16 The following can be highlighted from the 1 st Q performance: • Vacancy rate has decreased; • Draft GUMP has been developed and being discussed within DOE; • Gas Amendment Bill – consultation with NEDLAC has taken place; • Consultation on Petroleum Pipelines Act with NERSA has taken place and Amendment Regulations are submitted for Ministerial approval to promulgate; • NERA Bill has been approved by Cabinet with certain conditions; • Development of the SFF legislation could not be achieved this quarter; • REIPP programme progress: ü BW 1 is at 99% complete and BW 2 is at 64% complete. 26 IPPs have reached COD for Bid Window 1 and 11 IPPs have reached COD for Bid Window 2 and are into full commercial operation • Draft revision of the NNR Amendment Act and Fund Bill were not completed; • Additional vendor workshop been held; • Energy consumption baseline - Stakeholder engagement process with an additional 20 target municipalities conducted; • No SWH units installed this quarter - Cabinet approved on 26 June 2015 moving of programme from Eskom to DOE and • Much more financial control is exercise to prevent underspending – underspending of 1. 41% in the first quarter. 53

Thank You! 54

Thank You! 54

Appendix A APP Performance 4 th Quarter 2014/15 55

Appendix A APP Performance 4 th Quarter 2014/15 55

Programme 1: Administration (Corporate Services, 4 th Qt 2014/15) Annual Target 2014/15 (from Strategic

Programme 1: Administration (Corporate Services, 4 th Qt 2014/15) Annual Target 2014/15 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Progress this Quarter ("achieved", or "partially achieved", or "not achieved", and support for the self-assessment) Comments (constraints, variances, likelihood of annual achievement, corrective actions, etc) Vacancy rate below 10% at least maintained. Vacancy rate reduced to 10%. Vacancy rate stands at 10. 26% The delays were experienced in the constitution of the Panel Members. Measures have been put in place to expedite the speedy appointment of Panel Members 1. 8% of people with disabilities employed. Achieved: 2. 2% of people with disabilities as of 31 March 2015 The target has been met due to the increased recruitment of personnel for the quarter, mainly through internship and learnership programmes 42. 5% of women in SMS positions. Not Achieved: 38. 55% as at 1 December 2014 Some women in SMS retired/resigned at the end of October and November 2014 which resulted in a decrease in the achievement. 20 Izimbizo PPPs conducted. Five (5) Izimbizo PPPs conducted. Achieved 8 Izimbizo conducted. (1) Stakeholder Engagement with Moqhaka Municipal Council. (2)Visit to the Fuel Cell Project and walkabouts at Naledi Trust. (3) Inspection of electrification project and walk about in Nyakelang. (4) Inspection of electrification project and walk about in Malungane. (5) Community engagement in Malungane. (6) Electrification project inspection and walkabout in Welverdiend (7) Community engagement in 56

Programme 1: Administration (Financial Management Services , 4 th Qt 2014/15) Annual Target 2014/15

Programme 1: Administration (Financial Management Services , 4 th Qt 2014/15) Annual Target 2014/15 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Progress this Quarter ("achieved", or "partially achieved", or "not achieved", and support for the selfassessment) Comments (constraints, variances, likelihood of annual achievement, corrective actions, etc) Unqualified audit report by the Auditor-General achieved for 2013/14. No target set for this quarter. N/A None 100% approved invoices paid within 30 days of receipt. Achieved, 3 reports of approved invoices paid within 30 Days of receipt submitted to NT by the 7 th of each month. None 57

Programme 1: Administration (Governance and Compliance , 4 th Qt 2014/15) Annual Target 2014/15

Programme 1: Administration (Governance and Compliance , 4 th Qt 2014/15) Annual Target 2014/15 (from Strategic Plan - link to Technical Indicator Description) Average MPAT score of at least 3. 1 achieved for moderated assessment of 2013/14; with at least the following sub-scores: • KPA 1 – 3. 3; • KPA 2 – 3. 2; • KPA 3 – 3. 1; and • KPA 4 – 2. 9. Quarterly Target (from APP) No target set for this quarter. Progress this Quarter Comments ("achieved", or "partially (constraints, variances, likelihood of achieved", or "not achieved", annual achievement, corrective and support for the selfactions, etc) assessment) The MPAT process will begin in the second quarter of 2015/16 58

Programme 2: Energy Policy and Planning , 4 th Qt 2014/15 Annual Target 2014/15

Programme 2: Energy Policy and Planning , 4 th Qt 2014/15 Annual Target 2014/15 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Finalised IEP submitted to Cabinet. Draft 20 YRLFMP submitted to Cabinet for approval. Progress this Quarter ("achieved", or "partially achieved", or "not achieved", and support for the selfassessment) Comments (constraints, variances, likelihood of annual achievement, corrective actions, etc) Partially Achieved None. A draft report which includes the technical outputs from the Department of Energy have been incorporated in the final IEP report. Draft 20 YRLFMP report Partially achieved None submitted to Cabinet for approval. Draft 20 YRLFRM completed but currently undergoing consultation process with SOCs before taken to Cabinet for approval. 59

Programme 2: Energy Policy and Planning , 4 th Qt 2014/15 Annual Target 2014/15

Programme 2: Energy Policy and Planning , 4 th Qt 2014/15 Annual Target 2014/15 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Progress this Quarter ("achieved", or "partially achieved", or "not achieved", and support for the selfassessment) No target set for this quarter. Partially Achieved Promulgated policy for the standard offer scheme for reducing energy in the building envelope. Norms and standards for Promulgation of municipal asset management set norms and standards with the concurrence of the energy for municipal asset regulator. rehabilitation. Not Achieved Comments (constraints, variances, likelihood of annual achievement, corrective actions, etc) The draft Policy is in place but the Standard Offer scheme is awaiting departmental ratification. Awaiting the close out report from the Adam Pilot. 60

Programme 3: Petroleum and Petroleum Products Regulation , 4 th Qt 2014/15 Annual Target

Programme 3: Petroleum and Petroleum Products Regulation , 4 th Qt 2014/15 Annual Target Quarterly Target Progress this Quarter Comments 2014/15 (from APP) ("achieved", or "partially achieved", (constraints, variances, likelihood (from Strategic Plan - link to Technical or "not achieved", and support for of annual achievement, corrective Indicator Description) the self-assessment) actions, etc) 2 000 retail site Achieved 607 retail site inspections compliance inspections conducted: January to March 2015. conducted (cumulative target). The target was exceeded by 107 new retail site inspections. Enforcement notices issued in 85% of Enforcement notices issued in Achieved Enforcement notices issued in cases where non compliance is 85% of cases where non 100% of cases where nonidentified during routine compliance is identified during compliance was identified during inspections. routine compliance inspections. Out of 607 retail site compliance inspections conducted during the 4 th Quarter, 6 non-compliance cases were identified and 3 enforcement notices issued. The remaining 3 non-compliance were price related and were corrected immediately hence no notices Enforcement notices Not Achieved Out of 500 fuel samples tested, 11 issued in 95% of cases where non- issued in 95% of cases where samples for petrol and 33 for compliance is non-compliance is diesel were found to be non identified during routine fuel sample identified during routine fuel compliant to the standards. The testing. sample testing. procedure is that a re-sampling and a confirmatory test is done before a notice is issued. This is still pending 100% of arbitration Not achieved Voluminous and complex nature of requests finalised Arbitration requests, and the within the prescribed delays caused by back and forth timeframes. exchanging of Parties' representations to Controller. 61

Programme 3: Petroleum and Petroleum Products Regulation , 4 th Qt 2014/15 Annual Target

Programme 3: Petroleum and Petroleum Products Regulation , 4 th Qt 2014/15 Annual Target 2014/15 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Progress this Quarter Comments ("achieved", or "partially achieved", or (constraints, variances, likelihood "not achieved", and support for the self- of annual achievement, corrective assessment) actions, etc) 30% of licence applications where BEE ownership is at least 50%. Not achieved Not enforced, current legislation makes no reference to BEE. Can only be done once legislation has been reviewed. Progress reports on RAS implémentation. Achieved The margin adjustments were implemented in December 2014 Adjust the BSS asset Implementation of the BSS Partially Achieved base using economic indices. asset base into the RAS margin calculations. The process of signing the contract was prolonged by KPMG. Delays by the oil companies in submitting service station data (Volumes). 62

Programme 3: Petroleum and Petroleum Products Regulation , 4 th Qt 2014/15 Annual Target

Programme 3: Petroleum and Petroleum Products Regulation , 4 th Qt 2014/15 Annual Target 2014/15 (from Strategic Plan - link to Technical Indicator Description) Promulgation and implementation of the MDZ system. Quarterly Target (from APP) Progress this Quarter Comments ("achieved", or "partially achieved", or (constraints, variances, likelihood of "not achieved", and support for the self- annual achievement, corrective assessment) actions, etc) Implementation of the revised Partially Achieved MDZ system. The project commenced late due to a delay in obtaining approval internally. Only phase 1 was completed out of the 4 phases. Implementation and monitoring Implementation and of the monitoring of the bio‑fuels pricing framework. Not Achieved Awaiting approval of the subsidy framework by the Intergovernmental Task Team on Biofuels. Promulgation and 10 Published working rules. implementation of the revised BFP. Not Achieved The project was put on hold by the Branch Head in order to restructure the approach. 63

Programme 4: Electrification and Energy Programme and Project Management, 4 th Qt 2014/15 Annual

Programme 4: Electrification and Energy Programme and Project Management, 4 th Qt 2014/15 Annual Target 2014/15 (from Strategic Plan - link to Technical Indicator Description) 11 monthly reports on the allocation of funding and monitoring of progress on the number of additional households electrified with grid electrification towards the 2014/15 target of 265 000 in the electrification plan. Three (3) quarterly reports on the allocation of funding and monitoring of progress on the building/ upgrading of electrification infrastructure projects towards the 2014/15 target of: • 14 new bulk substations built; • Ten (10) additional substations upgraded; • 350 km new MV power lines constructed; and • 220 km of existing MV power lines upgraded. Quarterly Target (from APP) Progress this Quarter ("achieved", or "partially achieved", or "not achieved", and support for the selfassessment) Comments (constraints, variances, likelihood of annual achievement, corrective actions, etc) None Three (3) monthly reports Partially Achieved: January 2015 - (December to February) on the March 2015. Combined 4 th Quarter allocation of connections Rollovers: 8991 funding and monitoring of progress on the Actual: 75561 Eskom Own funding : number of additional 3112 Total per 4 th quarter : 87664 households electrified with grid Total year to date: 233455 electrification towards the 2014/15 target of 265 000 in the electrification plan. One (1) quarterly report Partially achieved Most projects are still in (3 rd quarter) on the progress but behind schedule allocation of funding and monitoring 2 new bulk substations built due to: of progress on the - Mfinizo 132/22 2 x 10 MVA substation - late starting, building/upgrading - Graafwater bulk infrastructure - design and scope changes, of electrification - delivery of long lead material, infrastructure projects 2 additional substations upgraded - late appointment of towards the 2014/15 - Obed Nkosi switching station contractors, and target of: - Calitzdorp bulk infrastructure - delays due to rainy season • 14 new bulk substations built; 29. 4 km new MV power lines Projects are being fastracked • Ten (10) additional constructed and will be closely monitored substations upgraded; - 8 KM Line Oskraal to ensure that the annual • 350 km new MV power lines - GOSO ELECT LINK LINE 15/16 target is achieved. constructed; and - Calitzdorp bulk infrastructure line • 220 km of existing MV power lines upgraded. -0 km existing MV power lines upgraded 64

Programme 4: Electrification and Energy Programme and Project Management, 4 th Qt 2014/15 Annual

Programme 4: Electrification and Energy Programme and Project Management, 4 th Qt 2014/15 Annual Target 2014/15 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Progress this Quarter Comments ("achieved", or "partially achieved", or "not (constraints, variances, achieved", and support for the selflikelihood of annual assessment) achievement, corrective actions, etc) 11 monthly reports on the Three (3) monthly reports Achieved: None allocation of funding and (December to February) on the 14 030 achieved against the 15 000 target monitoring of progress on the allocation of funding and monitoring number of additional households of progress on the number of electrified with non-grid additional households electrified electrification towards the with non-grid electrification towards 2014/15 target of 15 000 in the electrification plan. Three (3) quarterly reports on progress made with regards to the construction and operation phases of IPP projects. One (1) quarterly report (3 rd quarter) on progress made with regards to the construction and operation phases of IPP projects. Achieved: None The 11 th IPP report on construction has been completed. BW 1 is at 99% complete and BW 2 is at 47% complete. 25 IPPs have reached COD for Bid Window 1 and 9 IPPs have reached COD for Bid Window 2 and are into full commercial operation. 65

Programme 4: Electrification and Energy Programme and Project Management , 4 th Qt 2014/15

Programme 4: Electrification and Energy Programme and Project Management , 4 th Qt 2014/15 Annual Target 2014/15 (from Strategic Plan - link to Technical Indicator Description) Three (3) quarterly reports on progress made in 2014/15 with regards to the establishment of two (2) IECs. Quarterly Target (from APP) One (1) quarterly report (3 rd quarter) on progress made in 2014/15 with regards to the establishment of two (2) IEC. Progress this Quarter Comments ("achieved", or "partially achieved", (constraints, variances, or "not achieved", and support for the likelihood of annual self-assessment) achievement, corrective actions, etc) Achieved: Petro. SA to process the Ngwaabe Ie. C is completed and will appointment of new contractor. be operationalized by the 22 nd of Department of Rural May 2015 while Thembisile Hani Development has received Ie. C has been delayed due to drawings of the land to be used outstanding land disposal issue so that they can make a under consideration by the determination on whether the Department of Rural Development land will be disposed or leased and also the withdrawal of the to the co-operative that will be contractor who has been appointed operating the Ie. C. by Petro. SA (project sponsor). The contractor increased the projecte costs. 66

Programme 5: Nuclear Energy , 4 th Qt 2014/15 Annual Target 2014/15 (from Strategic

Programme 5: Nuclear Energy , 4 th Qt 2014/15 Annual Target 2014/15 (from Strategic Plan - link to Technical Indicator Description) Fully operational and funded NRWDI. Develop implementation plan based on the Mission Report and commence with implementation. Quarterly Target (from APP) Progress this Quarter Comments ("achieved", or "partially achieved", (constraints, variances, likelihood or "not achieved", and support for of annual achievement, corrective the self-assessment) actions, etc) Transferred Vaalputs Partially achieved: Business Plan to assist the Board disposal facility and Business Plan to assist the Board of NRWDI to draft its strategy was related functions, assets and staff to of NRWDI to draft its strategy was submitted to the Board. Task Team the NRWDI and produce status submitted to the Board addressing section 197 transitional report. arrangements at Necsa was formed. TOR to establish Steering Committee to address transitional arrangements submitted to ADG in February 2015. Implementation Achieved: None commenced. Action plan approved by the acting DG Implementation of procurement process (if approved). Partially Achieved: Pre-procurement process completed Preparation for a procurement process only ended in March 2015. Submission to Cabinet for approval Partially Achieved: Strategy presented at Nuclear Sub approval of implementation plan to support Extract of the Minutes from NEWG working Group and it is 90% to support Nuclear Fuel Cycle Strategy. completed as noted at the NEWG. Cycle Strategy. 67

Programme 5: Nuclear Energy , 4 th Qt 2014/15 Annual Target 2014/15 (from Strategic

Programme 5: Nuclear Energy , 4 th Qt 2014/15 Annual Target 2014/15 (from Strategic Plan - link to Technical Indicator Description) Progress this Quarter Comments ("achieved", or "partially achieved", or (constraints, variances, "not achieved", and support for the likelihood of annual self-assessment) achievement, corrective actions, etc) 100% of authorization Partially achieved: 26 authorizations Factors which contributed to applications considered within the applications considered within were approved, 13 (50%) met the this result: eight-week time period. the eight-week time period. turnaround time of 8 weeks. Submission drafted late - 2 authorisations Delayed Recommendation letter - 5 authorisations Delayed in DG's office - 6 authorisations Eight (8) nuclear Two (2) nuclear Achieved: Inspection reports None safeguards compliance approved by DG reports submitted to the relevant report submitted to the relevant decision‑making structures. Four (4) nuclear safeguards compliance audit submitted to the relevant decision‑making structures. Quarterly Target (from APP) One (1) nuclear Achieved: Audit report approved by None safeguards compliance DG audit submitted to the relevant decision‑making structures. 68

Programme 5: Nuclear Energy , 4 th Qt 2014/15 Annual Target 2014/15 (from Strategic

Programme 5: Nuclear Energy , 4 th Qt 2014/15 Annual Target 2014/15 (from Strategic Plan - link to Technical Indicator Description) Two (2) Nuclear security compliance reports submitted to the relevant decision‑making structures. Submission to Cabinet for public consultation (if approved by the FOSAD Cluster). Quarterly Target (from APP) Nuclear security compliance reports submitted to the relevant decision‑making structures. Presentation to the FOSAD Cluster. Submission to Cabinet for public Presentation to the FOSAD consultation (if Cluster. approved by the FOSAD Cluster). Submission to FOSAD Cluster). Draft Fund Bill consulted with FOSAD Cluster. Five (5) public awareness campaigns and community outreach events held. Two (2) public awareness campaigns held. Progress this Quarter Comments ("achieved", or "partially achieved", or (constraints, variances, "not achieved", and support for the selflikelihood of annual assessment) achievement, corrective actions, etc) Achieved: Inspection reports approved None by DG Partially Achieved: Correspondence to NNR Act Amendments under Legal Services. legal review. Unexpected loss of human resources in the Chief Directorate Policy. Finalize appointment of CD nuclear policy. Not Achieved Relevant stakeholders consulted and consolidation of inputs still in progress. Unexpected loss of human resources in the Chief Directorate Policy. Finalize appointment of CD nuclear policy. Partially Achieved: Correspondence to Fund Bill still with CSLA for Legal Services and Chief State Law comments. Adviser. Achieved: 3 public awareness campaigns completed. 69

Programme 6: Clean Energy , 4 th Qt 2014/15 Annual Target Quarterly Target 2014/15

Programme 6: Clean Energy , 4 th Qt 2014/15 Annual Target Quarterly Target 2014/15 (from APP) (from Strategic Plan - link to Technical Indicator Description) 1. 5 TWh of energy savings realised and from EEDSM projects verified from EEDSM (cumulative). projects. Developed energy consumption baselines for additional 30 municipalities. Developed baseline energy profiles for additional 30 municipalities. Promulgation of NEE strategy document (if approved by Cabinet). Promulgation of NEE Strategy document (if approved by Cabinet). 485 000 solar water heating units installed in residential and commercial sectors. Progress this Quarter Comments ("achieved", or "partially achieved", or(constraints, variances, likelihood "not achieved", and support for the of annual achievement, self-assessment) corrective actions, etc) Partially achieved. Templates for Late implementation of projects Measurement and Verification of by beneficiary municipalities. energy savings for the 2014/15 Delays on procurement of an municipal EEDSM projects M&V service provider. Delays in developed, circulated to all M&V municipal procurement. service providers. M&V service provider for 2014/15 FY appointed. Scope for the Measurement and Verification of energy savings discussed and agreed with appointed external M&V Professionals. Partially achieved. Several Inadequate reporting from Municipal workshops on the municipalities on progress made. achievement of the 2014/15 EEDSM Regular workshops are held to project activities were held. 2014/15 improve reporting. EEDSM projects implemented by municipalities. Partially achieved. Still waiting for The delays in the tabling of the reviewed NEES to be discussed. reviewed NEES at Cabinet. However, the process to develop post -2015 Energy Efficiency Targets and Action Plans has been started. Partially achieved. total of 412, 959 The Programme Implementation SWH units have been installed to Contract between Do. E and date. Eskom was terminated and the new Implementation model proposed for the programme has not been approved by Cabinet as yet. Internal process are in progress to have the Cabinet submission tabled. 70

Appendix B Financial Performance per Programme 4 th Quarter 2014/15 71

Appendix B Financial Performance per Programme 4 th Quarter 2014/15 71

Programme 1: Administration 2014/15 ECONOMIC CLASSIFICATION ADJUSTED BUDGET ACTUAL VARIANCE Rand - Thousand R'000

Programme 1: Administration 2014/15 ECONOMIC CLASSIFICATION ADJUSTED BUDGET ACTUAL VARIANCE Rand - Thousand R'000 % % BUDGET VARIANCE EXPENDED % % 260, 601 257, 168 3, 433 1. 32% 98. 68% Compensation of Employees 132, 127 131, 521 606 0. 46% 99. 54% Goods & Services 118, 209 116, 873 1, 336 1. 13% 98. 87% Payments for Financial Assets 4 - 0. 00% 100. 00% Transfers & Subsidies 5, 066 5, 007 59 1. 16% 98. 84% Payments for Capital Assets 5, 195 3, 763 1, 432 27. 56% 72. 44% TOTAL The under-spending of R 3. 43 million or 1. 32% is mainly due to savings realized as a result of: • Compensation of employees R 606 thousand - Vacancies during the financial year • Goods and services R 1. 34 million – cost containment measures which resulted in operational savings in a number of items such as consultants, contractors and outsourced services, travel and subsistence and office consumables and pending expenditure for goods and services. • Payments for Capital Assets - delayed procurement of furniture for regional offices due to the delayed relocation to new office accommodation (R 1. 43 m). 72

Programme 2: Energy Policy and Planning Energy Policy & Planning ECONOMIC CLASSIFICATION Rand -

Programme 2: Energy Policy and Planning Energy Policy & Planning ECONOMIC CLASSIFICATION Rand - Thousand TOTAL 2014/15 ADJUSTED BUDGET ACTUAL VARIANCE % % BUDGET VARIANCE EXPENDED R'000 53, 053 41, 749 11, 304 % 21. 31% % 78. 69% Compensation of Employees 30, 406 28, 754 1, 652 5. 43% 94. 57% Goods & Services 22, 605 12, 954 9, 651 42. 69% 57. 31% Payments for Capital Assets 42 41 1 2. 38% 97. 62% R 11. 30 million or 21. 31% budget under-spending due to: • Compensation of employees R 1. 65 million - Vacancies during the financial year • Goods and services R 9. 65 million savings on some projects due to the cost of services rendered being lower than anticipated, projects which could not be completed by year end as envisaged as a result of operational delays – projects affected included, the review and enhancement of energy data collection and management tools, process and systems project (R 2. 03 m) and the study and data collection on the energy footprint and energy savings potential in heavy industry (R 3. 03 m), these studies were undertaken to support policy development for the Integrated Energy Plan. • Significant operational saving (R 3. 6 m) on the item travel and subsistence was achieved due to cost reduction measures. 73

Programme 3: Petroleum & Petroleum Products Regulation 2014/15 Rand - Thousand TOTAL ADJUSTED %

Programme 3: Petroleum & Petroleum Products Regulation 2014/15 Rand - Thousand TOTAL ADJUSTED % % BUDGET ACTUAL VARIANCE BUDGET VARIANCE EXPENDED R'000 % % 78, 210 64, 548 13, 662 17. 47% 82. 53% Compensation of Employees Goods & Services Transfers & Subsidies 44, 285 41, 927 2, 358 31, 709 20, 309 11, 400 2, 216 2, 312 -96 ECONOMIC CLASSIFICATION 5. 32% 35. 95% -4. 33% 94. 68% 64. 05% 104. 33% The under-spending of R 13. 66 million or 17. 47% is mainly due to savings realized as a result of: • Compensation of employees R 2. 36 million - Vacancies during the financial year • Goods and services R 11. 4 million – cost containment measures which resulted in operational savings on travel and subsistence, catering, advertising and venues and facilities. Also projects which could not be finalized by year end due to the delayed commencement and finalization of projects which amongst others are: ü R 6. 80 million remaining under the sampling and testing of petroleum products in the South African Petroleum Industry in terms of regulations regarding Petroleum Products Specifications and Standards ü R 1. 25 million for a project to review the application of magisterial district zone (MDZ) system to determine the transport tariffs included in the price structures of petrol, diesel and illuminating paraffin. 74

Programme 4: Electricity & Energy Programme & Project Management ECONOMIC CLASSIFICATION Rand - Thousand

Programme 4: Electricity & Energy Programme & Project Management ECONOMIC CLASSIFICATION Rand - Thousand TOTAL 2014/15 ADJUSTED % % BUDGET ACTUAL VARIANCE BUDGET VARIANCE EXPENDED R'000 % % 4, 217, 327 4, 180, 973 36, 354 0. 86% 99. 14% Compensation of Employees Goods & Services 36, 483 36, 224 259 22, 585 22, 016 569 0. 71% 2. 52% 99. 29% 97. 48% Payments for Financial Assets Transfers & Subsidies 29 - 4, 158, 230 4, 122, 704 35, 526 0. 00% 0. 85% 100. 00% 99. 15% The under-spending of R 36. 35 million or 0. 86% is mainly due to savings as follows: • Compensation of employees - R 259 thousand - Vacancies during the financial year • Goods and services - R 569 thousand – cost containment measures implemented, resulted in operational savings in a number of items such as consultants, travel and subsistence. • Transfer Payments - INEP Non-grid project (R 35. 5 m) for the installation of solar home systems as a result of operational delays in finalizing contracts with service providers and the subsequent late commencement of projects. A roll-over request was submitted to the National Treasury for these funds to enable service providers to complete work in their designated areas and also to allow for proper evaluation of work performed prior to executing final payments. 75

Programme 5: Nuclear Energy ECONOMIC CLASSIFICATION Rand - Thousand TOTAL Compensation of Employees Goods

Programme 5: Nuclear Energy ECONOMIC CLASSIFICATION Rand - Thousand TOTAL Compensation of Employees Goods & Services Transfers & Subsidies 2014/15 ADJUSTED % % BUDGET ACTUAL VARIANCE BUDGET VARIANCE EXPENDED R'000 % % 846, 529 845, 418 1, 111 0. 13% 99. 87% 13, 979 13, 446 533 3. 81% 96. 19% 20, 535 20, 594 -59 -0. 29% 100. 29% 812015 811378 637 0. 08% 99. 92% The under-spending of R 1. 11 million or 0. 13% is mainly due to savings realized as a result of: • Compensation of employees R 533 thousand - Vacancies during the financial year • Transfer Payments – Member ship fee payment (R 637 thousand) to the Generation IV International Forum(GIF), an international body which researches and develops the next generation of nuclear systems, was paid in April due to the processing time required by National Treasury and the Reserve Bank for executing international payments. 76

Programme 6: Clean Energy ECONOMIC CLASSIFICATION Rand - Thousand TOTAL Compensation of Employees Goods

Programme 6: Clean Energy ECONOMIC CLASSIFICATION Rand - Thousand TOTAL Compensation of Employees Goods & Services Transfers & Subsidies 2014/15 ADJUSTED % % BUDGET ACTUAL VARIANCE BUDGET VARIANCE EXPENDED R'000 % % 1, 982, 074 830, 257 1, 151, 817 58. 11% 41. 89% 15, 966 12, 394 3, 572 22. 37% 77. 63% 28, 438 16, 595 11843 41. 64% 58. 36% 1937670 801268 1136402 58. 65% 41. 35% The under-spending of R 1. 15 billion or 58. 11% is mainly due to savings as follows: • Compensation of employees - R 3. 57 million - Vacancies during the financial year • Goods and services – R 11. 84 million – cost containment measures - resulted in operational savings in a number of items such as consultants, travel and subsistence and projects which could not be finalized before year-end as anticipated due to the pending finalization of the procurement process – project affected amongst others are: ü Technical audit for measurement and verification (M&V) of energy savings achieved from the implementation of the municipal energy efficiency and demand side programme (R 5. 26 m), the appointment of a service provider for the management and coordination of South Africa’s International renewable energy conference (SAIREC) to be hosted in October 2015 (R 3 m) and Energy Efficiency awareness campaigns which did not take place as anticipated resulting in an underspend in the items – Venues/Facilities (R 2. 6 m). 77

Programme 6: Clean Energy (continued) Transfer Payments • At the close of the 2014/15

Programme 6: Clean Energy (continued) Transfer Payments • At the close of the 2014/15 financial year, the Eskom Solar Water Heater Programme reflected an under spending of R 1. 14 billion attributable to a number of implementation challenges faced by Do. E and Eskom. • On account of the aforementioned challenges, a re-engineering of the programme was undertaken by the Department during the financial year under review. This culminated in the termination of the Do. E-Eskom Mo. A (by mutual agreement) in November 2014 and request was sent to Cabinet for the approval of the Revised Contracting Model. • A request has also been submitted to National Treasury to roll over funding of R 1. 14 billion over to the 2015/16 financial year to implement Solar Water Heater Projects at municipalities across all nine regions. 78

Appendix C APP Performance 1 st Quarter 2015/16 79

Appendix C APP Performance 1 st Quarter 2015/16 79

 Programme 1: Administration (Corporate Services , 1 st Qt 2015/16) Annual Target 2015/16

Programme 1: Administration (Corporate Services , 1 st Qt 2015/16) Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Progress this Quarter ("achieved", or "partially achieved", or "not achieved", and support for the selfassessment) Comments (constraints, variances, likelihood of annual achievement, corrective actions, etc) Delays in filling the posts Percentage of vacancy rate. Vacancy rate below 10% maintained. Achieved an average of 9. 7% Number of HR Plans reviewed. Review HR Plan. Achieved None Percentage of people with disabilities employed. 2% of people with disabilities employed. Achieved None employees in the Do. E trained on the 70% of employees in the Do. E Nuclear Skills Development trained on the Nuclear Programme. Skills Development Programme. Partially achieved Three officials trained on Nuclear Percentage of women in SMS positions. Not Achieved (38%) The officials from Nuclear have identified both Nuclear and generic training courses in their PDPs. The officials from nuclear need to review their PDPs in order to meet the set target The target must be changed to read "Employees in Nuclear branch…. " not Do. E None 50% of women in SMS positions. 80

 Programme 1: Administration (Financial Management Services 1 st Qt 2015/16) Annual Target 2015/16

Programme 1: Administration (Financial Management Services 1 st Qt 2015/16) Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Progress this Quarter Comments ("achieved", or "partially (constraints, variances, likelihood of achieved", or "not achieved", annual achievement, corrective and support for the selfactions, etc) assessment) Result of the annual audit. Unqualified audit report by the AG achieved for 2014/15. Achieved An unqualified None audit of performance information and financial statements for 2014/15 was obtained 100% approved invoices paid within 30 days of receipt. 100% approved invoices paid Achieved, 3 Reports of within 30 days of receipt. approved invoices paid within 30 days of receipt submitted to NT by the 7 th of each month. None 81

 Programme 1: Administration (Governance and Compliance 1 st Qt 2015/16) Annual Target 2015/16

Programme 1: Administration (Governance and Compliance 1 st Qt 2015/16) Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Number of institutional operational plans produced. Quarterly Target (from APP) Progress this Quarter Comments ("achieved", or "partially achieved", or "not (constraints, variances, achieved", and support for the selflikelihood of annual assessment) achievement, corrective actions, etc) One 1 institutional operational Achieved None plan produced. Number of bilateral intergovernmental engagements or visits hosted in the energy sector, excluding Africa (inbound & outbound). 18 bilateral intergovernmental engagements or visits hosted in the energy sector, excluding Africa (inbound & outbound). Partially Achieved Number of bilateral intergovernmental engagements or visits hosted in the energy sector, with African states (inbound & outbound). 10 bilateral intergovernmental engagements or visits hosted in the energy sector, with African states (inbound & outbound). Partially Achieved 13 bilateral intergovernmental engagements were conduct. Denmark x 3, Russia, UK, France, Norway, Hungary, Sweden, USA x 3 (telecon, business delegation, Embassy delegation). 1 Hosted Senegal Study Tour on Energy, 2 bilateral meeting with Botswana, 3 participated in the state visit to Mozambique, 4 Ministerial follow up visit to Mozambique, 5 hosted bilateral meeting with DRC on the Grand Inga on hydropower project. 82

 Programme 2: Policy and Planning Annual Target 2015/16 (from Strategic Plan - link

Programme 2: Policy and Planning Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) 1 st Qt 2015/16 Progress this Quarter ("achieved", or "partially achieved", or "not achieved", and support for the selfassessment) Comments (constraints, variances, likelihood of annual achievement, corrective actions, etc) Annual energy balance (2013) published Draft 2013 energy by commodity flows March 2016. compiled. Achieved Drafts Coal, Gas, Petroleum and Electricity commodity flows compiled None Submission of GUMP & its Development of the draft Implementation Plan for Cabinet approval. GUMP Report. Achieved A Draft GUMP Report has been developed and submitted to the Department for approval None Submission of the draft Gas Amendment Consultation of Bill for Ministerial approval for submission NEDLAC on the draft to Cabinet. Gas Amendment Bill & submission of the NEDLAC Report. Achieved None NEDLAC was consulted and a report has been submitted to the Department Publish 20 YLFIRM for external consultation. Achieved Lack of internal capacity to Consulted with SOCs (Petro. SA, Trasnet complete the 20 YLFIRM and SFF) Consultant & internal engagement on the draft 20 YLFIRM Report. 83

 Programme 2: Policy and Planning Annual Target 2015/16 (from Strategic Plan - link

Programme 2: Policy and Planning Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Biofuels Regulatory Framework implemented. Draft Petroleum Products Bill submitted for Ministerial approval. 1 st Qt 2015/16 Quarterly Target (from APP) Progress this Quarter Comments ("achieved", or "partially achieved", or "not (constraints, variances, achieved", and support for the selflikelihood of annual assessment) achievement, corrective actions, etc) Consolidate public comments; Achieved The documents were submit revised draft position paper The Framework, including the revised tabled before the Outcome on South African Biofuels Feedstock Protocol and the 6 Committee prior to Regulatory revised Biofuels Subsidy/Financial Models submission to Cabinet. Framework for has been submitted for Ministerial approval. The Committee referred Ministerial approval. the documents to the Sub. Outcome 2 [Reliable Generation, transmission and distribution of energy] Committee for further interrogation Consultation of SOCs on the draft Achieved None Petroleum Products Bill. Consulted with SOCs (Petro. SA, Trasnet and SFF) Submission of the concept document for the amendment of the Petroleum Pipelines Act for Ministerial approval. Consultation of Partially Achieved Regulations drafted but not NERSA & SOCs on the Consultation with Nersa, Amendment yet promulgated Petroleum Pipelines Regulations sent for Ministerial approval to Act. Promulgation of the promulgate amendment regulation for the principal act (as an interim measure). Ministerial approval of the concept Consultation of CEF Group & SFF Not Achieved SFF legislation not document for the SFF-related on the objective of the intended Consulted with SFF included as priority in legislation. 2015/16 cycle. Will be prioritized in 2016. 84

 Programme 2: Policy and Planning Annual Target 2015/16 (from Strategic Plan - link

Programme 2: Policy and Planning Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Draft Position Paper on Coal for Research on status on Coal for Energy Policy developed (based discussion paper. on duly considered comments) & submitted for Ministerial approval. Infrastructure needs for energy sector Consultation with Eskom & other identified stakeholders. & recommendations made. Introduce the National Energy regulator N/A Bill for consideration & support by Cabinet & by Parliament. Introduce the Electricity N/A Amendment Bill for consideration & support by Cabinet & by Parliament. 1 st Qt 2015/16 Progress this Quarter Comments ("achieved", or "partially (constraints, variances, achieved", or "not achieved", and likelihood of annual support for the self-assessment) achievement, corrective actions, etc) Partially Achieved Mandate on the coal policy lies with the Department of Mineral Resources. Do. E participates in the forum to secure coal for power. Achieved None Consultation on Phakisa A 1 Workstream (Development of a Phased Gas Pipeline Network) Consultation under the auspices of the War Room (SOCs role in alleviating Eskom's challenges) Do. E/DPE/Eskom engagements on the Mozambique Gas Achieved None The Bill was submitted for transmission to Cabinet and approved based on the fulfilment of certain conditions. Achieved Cabinet indicates need for The Bill could not be processed end state of sector to be further by Cabinet Committee defined before finalizing this based on recommendations by Bill. the IMC on Energy. 85

 Programme 2: Policy and Planning Annual Target 2015/16 (from Strategic Plan - link

Programme 2: Policy and Planning Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Introduce improved electricity industry structure for consideration & support by stakeholders before introduction to Cabinet & Parliament. 1 st Qt 2015/16 Quarterly Target (from APP) Progress this Quarter Comments ("achieved", or "partially achieved", (constraints, variances, or "not achieved", and support for likelihood of annual the self-assessment) achievement, corrective actions, etc) Review & revise the electricity Not Achieved Cabinet indicates need industry for end state of sector to structure & propose be defined before options. finalizing this Bill. Develop Integrated Distribution Infrastructure Revised 2008 electricity ADAM Not Achieved Plan for the Metro Municipalities (ADAM). report presented to the Do. E for adoption. Develop norms & standards for municipal asset management in concurrence of the energy regulator. Develop norms & Standards for Not Achieved municipal asset. Develop the electricity price path in line with N/A Not Applicable the IRP, ADAM & Transmission Plan. Obtain approval & amend the Electricity Pricing Policy accordingly for introduction to Cabinet for approval. Introduce the updated IRP for consideration & Collate & synthesis stakeholder Achieved support by Cabinet & by Parliament. comments on draft IRP. This target falls under the Programme and Projects Branch which is currently conducting an Adam Pilot project in this regard. Need for consolidation of responsibility regarding the ADAM Project. Not Applicable Draft Updated IRP has been developed. Needs policy adjustment by political principals. 86

 Programme 2: Policy and Planning Annual Target 2015/16 (from Strategic Plan - link

Programme 2: Policy and Planning Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) 1 st Qt 2015/16 Progress this Quarter ("achieved", or "partially achieved", or "not achieved", and support for the selfassessment) Comments (constraints, variances, likelihood of annual achievement, corrective actions, etc) Introduce bidding rounds for renewable Issue cogeneration RFP. Achieved energy, cogeneration, coal & gas programmes in line with IRP determinations made by the Minister. None Negotiate PPA & resolve the N/A transmission solution associated with power delivery from Inga. Not Applicable Contributing to & monitoring of progress Progress report on the interventions identified under the supply & demand war interventions. room. Partially Achieved RFI for EEDSM issued. In process of finalizing expedited procurement. 87

 Programme 3: Petroleum and Petroleum Products Regulation 1 st Qt 2015/16 Annual Target

Programme 3: Petroleum and Petroleum Products Regulation 1 st Qt 2015/16 Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Progress this Quarter Comments ("achieved", or "partially achieved", or "not (constraints, variances, likelihood of achieved", and support for the selfannual achievement, corrective assessment) actions, etc) Enforcement notices issued in 90% of Enforcement notices issued in Achieved cases where non-compliance is 90% of cases where nonidentified during routine compliance is identified during inspections. routine compliance inspections. Of the 375 site inspections conducted in Q 1, only one non- compliance was detected hence one enforcement Notice was issued. Enforcement notices issued in 95% of Enforcement notices issued in Not Achieved cases where non-compliance is 95% of cases where nonidentified during routine fuel sample compliance is identified during testing. routine fuel sample testing. 38 of 485 fuel samples failed the tests in Q 1. A re-sampling to be conducted on the failed samples before Notices are issued. 40% of licence applications approved N/A have 50% BEE ownership. Not achieved Not enforced, current legislation makes no reference to BEE. Can only be done once legislation has been reviewed. Monitoring of RAS implementation. Report on the fuel price & margin adjustments using the RAS model. N/A RAS was implemented in December 2014 and there are no more quarterly targets except in the 3 rd Quarter (i. e. December) when the margins will be adjusted using the RAS models. So the 3 rd Quarter target is an approved submission to adjust the margins Progress reports on RAS implementation. 88

Programme 4: Electrification and Energy Programme and Project Management 1 st Q 2015/16 Annual

Programme 4: Electrification and Energy Programme and Project Management 1 st Q 2015/16 Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Number of additional households to be 25 000 grid households’ electrified with grid electrification toward connections to be reported. the 2015/16 target of 260 000 in the National E electrification Plan. Progress this Quarter Comments ("achieved", or "partially achieved", or "not (constraints, variances, achieved", and support for the selflikelihood of annual assessment) achievement, corrective actions, etc) Partially Achieved: 17 414 households have Munic: 8143 households electrified been connected to grid ( (including roll overs) For now we can say any Eskom: 9271 households electrified reason for us not to (including roll overs) Total: 17 414 achieve the quarterly target as the connections are only for 2 months-April to May) Building /upgrading of electrification Provide evaluation report Not Achieved: Most projects in the Eskom infrastructure projects toward the against the programme are in 2015/16 Implementation Plan with progress, while others are target of: - 4 new bulk substations built; procurement & execution of still in the technical - 6 additional substations upgraded; - the projects. evaluation stages. 100 km new medium-voltage power lines Most projects in the constructed; & municipal programme have - 90 km of existing medium-voltage only just started in the power lines month of July 2015 as it is upgraded. the beginning of the municipal financial year; reporting on these projects will only start in August 2015. 89

Programme 4: Electrification and Energy Programme and Project Management 1 st Q 2015/16 Annual

Programme 4: Electrification and Energy Programme and Project Management 1 st Q 2015/16 Annual Target Quarterly Target 2015/16 (from APP) (from Strategic Plan - link to Technical Indicator Description) Number of additional households 3 500 non-grid electrified households’ connections with non-grid electrification toward the to be reported 2015/16 target of 20 000 in the National Electrification Plan. Progress this Quarter Comments ("achieved", or "partially (constraints, variances, likelihood achieved", or "not achieved", and of annual achievement, support for the self-assessment) corrective actions, etc) Partially Achieved: Late signing of contracts 3153 achieved against the 20 000 target Implementation of the 2015/16 National Refine & update the master plan Partially Achieved: Travel to site in some instances EMP & refine & update the 2016/17 with 55 % costing for the 27 district to verify that the scope is correct National EMP, pending the availability of data collected from and 60 % with to inform costing resources. municipalities & Eskom. document compilation. Annual report on the progress made in N/A 2014/15 with regard to the energy centres & development of the draft strategy on rural energy centres. 12 site visit reports on the monitoring & management of the IECs. Partially Achieved: The draft strategy will be The Stakeholder forum to enable finalized by end of 2015/2016 consultation with all the Ie. C financial year. The consultation stakeholders was drafted and on the strategy will be initiated approved. The Ie. C strategy with the stakeholder forum during discussion document has been the following quarters. completed and submitted for internal consultation. 3 monthly reports (1 st quarter) on Achieved: There are seven operational the monitoring of the IEC’s All Ie. Cs were monitored during Ie. Cs and of these currently all operations & management made the first quarter. Monthly reports are operating well. There are in were submitted on the three Ie. Cs closed down during 2014/15. engagements with Ie. Cs. the previous years and these are under negotiations to resuscitated them. 90

Programme 4: Electrification and Energy Programme and Project Management 1 st Q 2015/16 Annual

Programme 4: Electrification and Energy Programme and Project Management 1 st Q 2015/16 Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Progress this Quarter ("achieved", or "partially achieved", or "not achieved", and support for the selfassessment) Comments (constraints, variances, likelihood of annual achievement, corrective actions, etc) Provincial reports on the Provincial reports prepared from Achieved: No reports for this quarter performance of the municipalities for the INEP Municipality Programme. No reports for this quarter as the INEP Municipality the 2015/16 INEP. Municipality programme started in July 2015 quarterly reports on conducted site quarterly report on conducted site Achieved & technical audits during INEP projects implementations & the monitoring of implementations & monitoring of projects for 2014/15. projects. Project Management Business Process Approved & implemented. Implement 3 dashboards. Conducted technical Audits at four (4) municipalities. Stakeholder consultation. Not Achieved: None Implement 3 dashboards. Not Achieved: No Reports on DOE Youth The dashboard consists of information & Children strategy/Policy from 4 units, Programmes and Projects were received. Management Office, Community Upliftment, INEP and Electricity Industry Transformation 91

Programme 4: Electrification and Energy Programme and Project Management 1 st Q 2015/16 Annual

Programme 4: Electrification and Energy Programme and Project Management 1 st Q 2015/16 Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Provincial reports on the performance Provincial reports prepared of the municipalities for the 2015/16 from the INEP Municipality INEP. Programme. Progress this Quarter ("achieved", or "partially achieved", or "not achieved", and support for the self-assessment) Comments (constraints, variances, likelihood of annual achievement, corrective actions, etc) Achieved: No reports for this quarter as the INEP Municipality programme started in July 2015 quarterly reports on conducted site & quarterly report on conducted Achieved technical audits during INEP projects site implementations & & technical audits during INEP the monitoring of projects for 2014/15. projects implementations & monitoring of projects. (45 141) SWH units installed in residential & commercial sectors. Conducted technical Audits at four (4) municipalities. Contracts for locally Achieved: None manufactured products placed. Internal process to be concluded Training & capacity building of before the program can be installation teams in identified implemented municipalities completed. 92

Programme 4: Electrification and Energy Programme and Project Management 1 st Qt 2015/16 Annual

Programme 4: Electrification and Energy Programme and Project Management 1 st Qt 2015/16 Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) An updated report highlighting achievements of the implementation of the programme. An annual report on non- REIPPP. Quarterly Target (from APP) Report highlighting achievements of the implementation of the programme. N/A Provide a sustainable Electricity N/A Distribution Intervention Plan (including the effect on tariffs) & start with the implementation to deal with the electricity infrastructure backlog in mining town municipalities, municipalities mentioned in the So. NA & the so-called hot spot areas to receive assistance. Progress this Quarter Comments ("achieved", or "partially achieved", or (constraints, variances, "not achieved", and support for the self likelihood of annual -assessment) achievement, corrective actions, etc) Achieved None Achieved: None The 12 th IPP report on construction has been completed. BW 1 is at 99% complete and BW 2 is at 64% complete. 26 IPPs have reached COD for Bid Window 1 and 11 IPPs have reached COD for Bid Window 2 and are into full commercial operation. Achieved: None To date firth teen (15) Districts have been visited and network plans have been sent to the Department as well as gaps that talks to skills requirements 93

Programme 5: Nuclear Energy 1 st Qt 2015/16 Annual Target 2015/16 (from Strategic Plan

Programme 5: Nuclear Energy 1 st Qt 2015/16 Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Progress this Quarter Comments ("achieved", or "partially achieved", or (constraints, "not achieved", and support for the self variances, likelihood -assessment) of annual achievement, corrective actions, etc) Draft updated National Nuclear Disaster Relevant stakeholders consulted on Achieved: Minutes of the None Management Plan completed. progress regarding the Emergency Preparedness Review implementation & (EPREV) meeting. response of the action plan on the emergency plan. Procurement of the nuclear power Implementation of the procurement Not achieved reactor as per the procurement process (if approved). launched. Cabinet Granted Conditional approval pending few other submissions. Programme plan completed & implementation commenced. Development of optimized Not achieved programme plan completed in line with 2023 as per IRP 2010 -30. None Transactional advisors motivation completed. Draft report for transactional advisor Achieved: MTEF Submission motivation completed. None PMO established & operational. Submission on PMO motivation submitted to Minister for approval. None Not achieved 94

Programme 5: Nuclear Energy 1 st Qt 2015/16 Annual Target 2015/16 (from Strategic Plan

Programme 5: Nuclear Energy 1 st Qt 2015/16 Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Procurement of the NFC facilities as Developed per the implementation plan launched. implementation plan based on the mission report. Progress this Quarter Comments ("achieved", or "partially achieved", or "not (constraints, variances, achieved", and support for the selflikelihood of annual assessment) achievement, corrective actions, etc) Partially Achieved: Draft Strategy for NFC Plan is pending completed. approval of strategy Implementation of the nuclear localization strategy (if approved). N/A 70% of authorization applications processed within the 8 -week time period. 70% of authorization Achieved: 30 authorizations were received, applications processed within 26 (87%) were approved and met the 8 -week time turnaround time of 8 weeks. period. None nuclear safeguard compliance reports submitted to the relevant decision‑making structures. Factors which contributed to this result: Two authorisations were drafted late - due to CC recommendation letter being late. The other two authorisations were delayed in the approval process. nuclear safeguard compliance Achieved: 2 Nuclear safeguard compliance None reports submitted to the report approved. relevant decision‑making structures. nuclear safeguard compliance audits submitted to the relevant decision‑making structures. One nuclear safeguard Achieved: 1 Nuclear safeguard compliance None compliance audit submitted to audit approved. the relevant decision‑making structures. 95

Programme 5: Nuclear Energy 1 st Qt 2015/16 Annual Target 2015/16 (from Strategic Plan

Programme 5: Nuclear Energy 1 st Qt 2015/16 Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Progress this Quarter Comments ("achieved", or "partially achieved", or (constraints, "not achieved", and support for the self- variances, likelihood assessment) of annual achievement, corrective actions, etc) 4 nuclear security compliance reports One nuclear security Achieved: 1 Nuclear security None submitted to the relevant decision‑making compliance report submitted compliance report approved. structures. to the relevant decision‑making structures. Submission to Cabinet for public consultation Draft version of the National Not achieved Target needs to be (if approved by the FOSAD Cluster). Nuclear Regulator revised. The Bill has Amendment already been Act consulted with the stakeholders. The Bill needs to be prepared for submission to CSLA Submission to the Chief SLA. Bill workshop with Not achieved Organized workshop stakeholders. could not take place 5 public awareness campaigns & community 1 community outreach event Achieved: 1 Nuclear Career outreach events held. Exhibition/Awareness event held on 30 May 2015 None 96

Programme 6: Clean Energy 1 st Qt 2015/16 Annual Target 2015/16 (from Strategic Plan

Programme 6: Clean Energy 1 st Qt 2015/16 Annual Target 2015/16 (from Strategic Plan - link to Technical Indicator Description) Quarterly Target (from APP) Progress this Quarter ("achieved", or "partially achieved", or "not achieved", and support for the self-assessment) Planning & developing projects to achieve Finalization of contractual Partially achieved. 0. 5 TWh of energy savings per annum. arrangements between the Department of Municipalities. Commence with measurements and verification of energy savings for 2014/15 municipal interventions Developed energy consumption baselines Stakeholder engagement Achieved. for an additional 20 municipalities. process with an additional 20 target municipalities conducted. Comments (constraints, variances, likelihood of annual achievement, corrective actions, etc) Contracts with municipalities have been signed by the partcipating municipalities and Internal Memo and contracts are pendng Do. E approval after quality assurance. Measurement and Verification of energy savings for 2014/15 municipal interventions commenced with three appointed M&V bodies. None. This project has been commissioned through GIZ. 45 141 SWH units installed in residential & Contracts for locally. Not Achieved: There were no SWH Preparations for the commercial sectors. manufactured units installed this quarter. The National Rollout of the products placed. - Training & Cabinet Memorandum which programme have already capacity contains the new proposed started. This includes building of installation teams in implementation framework was only consultation with key identified municipalities approved on 26 June 2015. stakeholders, for example, completed. an intergovernmental steering committee inaugural meeting has been planned for the 2 July 2015 to give feedback to sector departments and pave the way forward for implementation. 97

Programme 6: Clean Energy 1 st Qt 2015/16 Annual Target 2015/16 (from Strategic Plan

Programme 6: Clean Energy 1 st Qt 2015/16 Annual Target 2015/16 (from Strategic Plan link to Technical Indicator Description) Quarterly Target (from APP) Progress this Quarter Comments ("achieved", or "partially achieved", or (constraints, variances, likelihood of "not achieved", and support for the annual achievement, corrective self-assessment) actions, etc) Renewable Energy Development of the Achieved. Implémentation Terms of Reference Report. & appointment of a service provider. Draft National Biogas Development & Partially Achieved. Strategy. approval of the Terms of Reference for the National Biogas Strategy. Draft terms of reference have been prepared. Engagement with potential stakeholders such as GIZ has been started. SAIREC Conference Appointment of a Report. service provider for the coordination & management of the hosting of SAIREC. Events Management Company has been appointed; LOC meetings are running monthly; website is up and running; registration has started etc. Most of the sub deliverables as outlined in the To. Rs / SLA are in progress. The draft strategy has been completed. A submission for the ADG to note and support the pilot projects as proposed by the strategy has been developed and enroute for signatures Achieved. Energy & Climate Draft Energy & Partially Achieved. Change Strategy for Climate Change public building sector Strategy approved & approved. released for public consultation. The Terms of Reference have been prepared for BAC submission meeting scheduled for 13 August. 98

Appendix D - Financial Performance per Programme 1 st Quarter 2015/16 99

Appendix D - Financial Performance per Programme 1 st Quarter 2015/16 99

Programme 1: Administration 2015/16 YTD % ECONOMIC CLASSIFICATION BUDGET VARIANCE EXPENDED Rand - Thousand

Programme 1: Administration 2015/16 YTD % ECONOMIC CLASSIFICATION BUDGET VARIANCE EXPENDED Rand - Thousand R'000 % % TOTAL 242, 598 57, 257 53, 786 3, 471 6. 06% 93. 94% 2015/16 ENE Compensation of Employees Goods & Services Transfers & Subsidies Payments for Capital Assets YTD BUDGET YTD ACTUAL 131, 214 30, 880 34, 114 106, 067 25, 382 15, 857 1, 310 99 2, 510 4, 007 896 1, 305 -3, 234 -10. 47% 110. 47% 9, 525 37. 53% 62. 47% -2, 411 -2435. 35% 2535. 35% -409 -45. 65% 145. 65% The under-spending of R 3. 47 million or 1. 43% is mainly due to savings realized as a result of: • Compensation of employees R 3. 23 million (10. 5%) over budget attributable to the once-off gratuity paid in April 2015 that was funded, fixed term contract positions carried additional to the establishment and the impact of budget reduction in 2015/16. • Goods and services R 9. 5 million (37. 5%) under budget due to Consultants / business advisory services item attributable to delays in activating projects carried over from the previous financial year; operating leases item (R 8. 54 m) due to outstanding office accommodation lease invoices which have not been received from DPW as planned and computer services item (R 1. 40 m) attributable to delays in installing services at new regional office premises. • Transfers and subsidies – R 2. 4 million over budget. The SETA payment made in June was planned for payment in July, therefore, the over spending will be corrected in July. The major contributor to the over spending in household is a GEPF liability paid in May 2015. 100

Programme 2: Energy Policy and Planning Energy Policy & Planning 2015/16 YTD % YTD

Programme 2: Energy Policy and Planning Energy Policy & Planning 2015/16 YTD % YTD YTD % ECONOMIC CLASSIFICATION 2015/16 ENE YTD ACTUAL BUDGET VARIANCE EXPENDED R'000 % % TOTAL 45, 096 11, 209 8, 958 2, 251 20. 08% 79. 92% Compensation of Employees 31, 735 7, 421 7, 718 Goods & Services 13, 361 3, 788 1, 240 297 -4. 00% 2, 54 8 67. 27% 104. 00% 32. 73% R 2. 25 million or 20. 08% budget under-spending due to: • Goods and services: R 2. 548 million or 67. 27% under spending. Consultants / business advisory services under spending attributable to outstanding finalization of processes to activate some projects carried over from 2014/15. No payments has taken place in the following projects which were incomplete by the closure of the previous financial year: ü The review and enhancement of energy data collection and management tools, process and systems and ü The study and data collection on the energy footprint and energy savings potential in heavy industry, both by Energy Policy and Planning. 101

Programme 3: Petroleum & Petroleum Products Regulation ECONOMIC CLASSIFICATION TOTAL 2015/16 ENE YTD BUDGET

Programme 3: Petroleum & Petroleum Products Regulation ECONOMIC CLASSIFICATION TOTAL 2015/16 ENE YTD BUDGET YTD % BUDGET EXPENDED % % 18. 99% 81. 01% YTD YTD % ACTUAL VARIANCE R'000 74, 378 18, 507 14, 992 3, 515 Compensation of Employees 50, 926 11, 945 12, 043 -98 -0. 82% 100. 82% Goods & Services 55. 06% 44. 94% 23, 452 6, 562 2, 949 3, 613 The under-spending of R 3. 5 million or 18. 9% is mainly due to: • Goods and services R 3. 6 million or 55. 06% underspending due to: ü Outstanding payments under the sampling and testing of petroleum products in the South African Petroleum Industry project; ü Consultants/business advisory services: under spending attributable to outstanding finalization of processes to activate some projects carried over from 2014/15 including a project to collate detailed operating expenses of a selected number of service station, retail sites and to determine the average operating costs of benchmark service station. 102

Programme 4: Electricity & Energy Prog & Project Management Electricity & Energy Programme &

Programme 4: Electricity & Energy Prog & Project Management Electricity & Energy Programme & Project Management 2015/16 ECONOMIC CLASSIFICATION ENE TOTAL YTD BUDGET YTD % BUDGET EXPENDED % % 0. 67% 99. 33% YTD YTD % ACTUAL VARIANCE R'000 5, 778, 297 1, 413, 270 1, 403, 826 9, 444 Compensation of Employees 38, 864 9, 089 9, 594 -505 -5. 56% 105. 56% -20. 96% 120. 96% Payments Financial Assets - 5 -5 0. 00% 10, 74 Transfers & Subsidies 5, 724, 650 1, 400, 426 1, 389, 685 1 0. 77% 0. 00% Goods & Services 14, 783 3, 755 4, 542 -787 99. 23% The under-spending of R 9. 4 million or 0. 67% is mainly due to: • Compensation of employees - R 505 thousand over budget - fixed term contract positions carried additional to the establishment. • Goods and services – R 787 thousand over budget due to the increased travel relating to verification activities. • Transfer Payments - R 10. 74 million (0. 77%) below budget due to the nondisbursement of payments in INEP Non-grid. Some invoices which were returned to service providers for correction as some anomalies were detected. 103

Programme 5: Nuclear Energy ECONOMIC CLASSIFICATION TOTAL 2015/16 ENE YTD BUDGET YTD % BUDGET

Programme 5: Nuclear Energy ECONOMIC CLASSIFICATION TOTAL 2015/16 ENE YTD BUDGET YTD % BUDGET EXPENDED % % 0. 58% 99. 42% YTD YTD % ACTUAL VARIANCE R'000 654, 398 394, 072 391, 805 2, 267 45 5 10. 53% 89. 47% 48. 83% -0. 12% 51. 17% 100. 12% Compensation of Employees 18, 479 4, 321 3, 866 17, 46 Goods & Services 2 4, 649 2, 379 2, 270 Transfers & Subsidies 618, 457 385, 102 385, 560 -458 The under-spending of R 2. 27 million or 0. 58% is mainly due to: • Compensation of employees: R 455 thousand - Vacancies during the financial year; • Goods and Services: R 2. 27 million below budget, mainly due to non-spending in consultants/advisory services. The evaluation of bid proposals for the following projects were delayed: ü Develop a detailed Financing Model for the Radioactive waste management fund ü Development of instructor training material for Nuclear and Radiological emergency 1 st Responders. 104

Programme 6: Clean Energy 2015/16 TOTAL R'000 687, 327 28, 030 21, 793 6,

Programme 6: Clean Energy 2015/16 TOTAL R'000 687, 327 28, 030 21, 793 6, 237 YTD % BUDGET EXPENDED % % 22. 25% 77. 75% Compensation of Employees 18, 261 4, 271 3, 102 1, 169 27. 37% 72. 63% Goods & Services 27, 991 7, 544 2, 476 5, 068 67. 18% 32. 82% Transfers & Subsidies 641, 075 16, 215 - 0. 00% 100. 00% ECONOMIC CLASSIFICATION 2015/16 ENE YTD BUDGET YTD YTD % ACTUAL VARIANCE The under-spending of R 6. 24 million or 22. 25% is mainly due to: • Compensation of employees - R 1. 17 million - Vacancies during the financial year; • Goods and services – R 5. 07 million –Pending finalization of the procurement process, namely for: ü The technical audit, measurement and verification (M&V) of energy savings achieved from the implementation of the municipal energy efficiency and demand side programme (R 5. 26 m), ü The appointment of a service provider for the management and coordination of South Africa’s International renewable energy conference (SAIREC) to be hosted in October 2015 at the (CTICC) (R 3 m) and Energy Efficiency awareness campaigns which did not take place as anticipated resulting in a budget balance under the venues and facilities and advertising items (R 2. 6 m). 105