Transcript NERSA Strategic Plan & Annual Performance_PPC

NERSA Strategic Plan (2012/13 – 2016/17) and
Annual Performance Plan (2013/14 – 2015/16)
23 April 2013
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CONTENT (1)
A. Introduction
B. Framework for Strategic Plans and Annual Performance
Plans
C. Planning Concepts
D. Vision, Mission, Values and Regulatory Principles
E. Mandate
F. Achievements (2012/13)
I. Electricity Industry Regulation
II. Piped-Gas Industry Regulation
III. Petroleum Pipelines Industry Regulation
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CONTENT (2)
G. Strategic Plan (2012/13 – 2016/17)
I. Strategic Outcome Oriented Goals
II. Contribution to Service delivery through the link to Twelve
Government Outcomes
III. Compliance with other Government Strategies
IV. Strategic Objectives
V. Programmes
VI. Programme Strategic Objectives
H. Challenges, NERSA’s
Programmes
I.
II.
III.
IV.
V.
Response
Electricity Industry Regulation
Piped-Gas Industry Regulation
Petroleum Pipelines Industry Regulation
Cross-Cutting Regulatory
Organisational
and
Link
to
3
CONTENT (3)
I. Annual Performance Plan (2013/14 – 2015/16)
I.
II.
III.
IV.
V.
Electricity Industry Regulation
Piped-Gas Industry Regulation
Petroleum Pipelines Industry Regulation
Cross-Cutting Regulation
Organisational
J. Budget and Funding (2013/14)
I. Ring-fencing Methodology
II. Budget and Funding (2013/14)
III. Programme Budgets (2013/14)
K. Conclusion
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A. INTRODUCTION
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INTRODUCTION
• The National Energy Regulator (NERSA), a Schedule 3A
Public Finance Management Act, 1999 (Act No. 1 of 1999)
Public Entity was established on 1 October 2005 in terms of
the National Energy Regulator Act, 2004 (Act No. 40 of
2004) to regulate:
o Electricity industry (Electricity Regulation Act, 2006 (Act No. 4 of
2006))
o Piped-Gas industry (Gas Act, 2001 (Act No. 48 of 2001))
o Petroleum Pipelines industry (Petroleum Pipelines Act, 2003 (Act
No. 60 of 2003))
• In executing its mandate NERSA endeavours to balance the
interest of both licensed entities and end users/consumers
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B. FRAMEWORK FOR
STRATEGIC PLANS AND
ANNUAL PERFORMANCE
PLANS
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FRAMEWORK FOR STRATEGIC PLANS AND
ANNUAL PERFORMANCE PLANS (1)
• Published by National Treasury in August 2010
• Applicable to all national and provincial departments,
constitutional institutions and public entities in the
development of their strategic plans
• Applicable from 2012/13 for Schedule 3A Public Entities
• NERSA is required to:
o Produce and table a Strategic Plan with a five-year planning horizon;
o Produce and table an Annual Performance Plan including forward
projections for a further two years, with annual and performance
targets, where appropriate; and
o Identify a core set of indicators needed to monitor institutional
performance.
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FRAMEWORK FOR STRATEGIC PLANS AND
ANNUAL PERFORMANCE PLANS (2)
• In line with the Framework NERSA published a Strategic
Plan (2012/13 – 2016/17)
• According to the Framework a “Strategic Plan may be
changed during the five-year period that it covers. However,
such changes should be limited to revisions related to
significant policy shifts or changes in the service-delivery
environment”
• Upon revision it was found:
o There were no significant policy shifts or changes; and
o There were no significant gaps in the approved Strategic Plan.
• Strategic Plan was not amended.
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C. PLANNING CONCEPTS
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PLANNING CONCEPTS
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D. MISSION, VISION,
VALUES AND
REGULATORY PRINCIPLES
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VISION
“To be a world-class leader in energy regulation”
MISSION
“To regulate the energy industry in accordance with
government laws and policies, standards and
international best practices in support of sustainable
development”
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VALUES
•
•
•
•
•
•
•
Passion
Spirit of Partnership
Excellence
Innovation
Integrity
Responsibility
Professionalism
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REGULATORY PRINCIPLES
Underpinned by NERSA’s legal mandate
• Transparency
• Neutrality
• Consistency and Predictability
• Independence
• Accountability
• Integrity
• Efficiency
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E. MANDATE
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MANDATE (1)
NERSA’s Mandate is anchored in:
• 4 Primary Acts:
o
o
o
o
National Energy Regulator Act, 2004 (Act No. 40 of 2004)
Electricity Regulation Act, 2006 (Act No. 4 of 2006)
Gas Act, 2001 (Act No. 48 of 2001)
Petroleum Pipelines Act, 2003 (Act No. 60 of 2003)
• 3 Levies Acts:
o Gas Regulator Levies Act, 2002 (Act No. 75 of 2002)
o Petroleum Pipelines Levies Act, 2004 (Act No. 28 of 2004)
o Section 5B of the Electricity Act, 1987 (Act No. 41 of 1987)
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MANDATE (2)
• 3 Facilitating Acts:
o Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA)
o Promotion of Access to Information Act, 2000 (Act No. 2 of 2000)
(PAIA)
o Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000)
(PAJA)
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F. ACHIEVEMENTS
(2012/13)
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I. ELECTRICITY INDUSTRY REGULATION
• Tariffs
o Approved an average annual increase of 8% in the revenue
requirements for Eskom for the next five years; and
o Received 183 out of 186 (98%) municipal and private distributor tariffs
applications for 2012/13 and approved all for implementation.
• Generation
o Approved 47 Renewable Energy Generation licences (within 90 days
from application instead of the 120 days legislated timeframe); and
o Approved 7 licences under the Short Term Power Purchase
Programme (STPPP) as part of the short term mitigation programme
during maintenance of Eskom generation fleet.
• Distribution
o 9 distribution licences were issued for connection facilities between
the Eskom delivery point and IPP generation facilities.
• Other
o Assessed and concurred with three determinations of the Minister of
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Energy in terms of Section 34 of the Electricity Regulation Act, 2006
(Act No. 40 of 2006).
II. PIPED-GAS INDUSTRY REGULATION
• Pricing and Tariffs
o Approved the maximum prices of piped-gas for Sasol Gas in terms of
section 21(1)(p) of the Gas Act, (Act No. 48 of 2001), for the period 26
March 2014 to 30 June 2017 for various customer categories /
classes;
o Approved the transmission tariffs for Sasol Gas in terms of section
4(h) of Gas Act, (Act No. 48 of 2001), for the period 26 March 2014 to
30 June 2015; and
o Approved preliminary tariff assessment for Transnet Pipelines’ gas
multi-year tariff determination for the Lilly Pipeline for the periods
2013/14, 2014/15 and 2015/16.
• Licensing
o Granting of 5 licences for the construction of gas distribution facilities,
2 licences for trading in gas and 1 licence for the operation of a gas
facility; and
o Amending 5 gas trading licences and 5 licences for the operation of
gas facilities.
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III. PETROLEUM PIPELINES INDUSTRY
REGULATION
• Tariffs
o Approved an increase of 8.53% in allowable revenue for Transnet
Petroleum Pipelines for the period 2013/14; and
o Made decisions on 60 storage and loading facilities.
• Licensing
o Approved 8 construction licences and 3 operation licences;
o Amended 7 construction and storage licences; and
o Revoked 13 storage licences.
• Other
o Investigated 67 suspected unlicensed activities – only 4 of these do
not require a licence. All the others indicated that they will apply for a
licence
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G. STRATEGIC PLAN
(2012/13 – 2016/17)
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I. STRATEGIC OUTCOME ORIENTED
GOALS (1)
•
The strategic outcome oriented goals of NERSA are
cascaded from the mandate and reflect the 12 National
outcomes as well as those of the Department of Energy.
These goals attest to NERSA’s role in facilitating the
achievement of the national socio-economic and sociopolitical development agenda. The strategic outcome
oriented goals are:
1. To facilitate Security of Supply in order to support sustainable socioeconomic development in South Africa;
2. To facilitate investment in infrastructure in the energy industry to
support sustainable socio-economic development in South Africa;
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I. STRATEGIC OUTCOME ORIENTED
GOALS (2)
3. To promote competitive and efficient functioning of the energy
industry in order to sustain socio-economic development in South
Africa;
4. To facilitate affordability of and accessibility to the energy industry to
balance economic interests of all stakeholders in support of socioeconomic development of South Africa and a better life for all; and
5. To position and establish NERSA as a credible and reliable
regulator in order to create regulatory certainty.
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II. CONTRIBUTION TO SERVICE DELIVERY
THROUGH THE LINK TO THE TWELVE
NATIONAL OUTCOMES
•
The strategic outcome oriented goals of NERSA are linked
to the following 12 National outcomes:
2. A long and healthy life for all South Africans;
4. Decent employment through inclusive economic growth;
6. An efficient, competitive and responsive economic infrastructure
network;
8. Sustainable human settlements and improved quality of household
life;
10. Environmental assets and natural resources that are well protected
and continually enhanced; and
12. An efficient, effective and development oriented public service 26
and
an empowered, fair and inclusive citizenship.
OUTCOME 2: A LONG AND HEALTHY LIFE
FOR ALL SOUTH AFRICANS
•
NERSA contributes through:
o Offering advice/comment with regards to cleaner fuels;
o Driving renewable energy programmes and promoting the
introduction of renewables and gas into the energy mix;
o In determining electricity pricing, NERSA has set aside 3.2c/kWh in
the second Multi-Year Price Determination (MYPD2) for the
Electrification Cross-subsidy;
o Taking affordability into consideration when setting and/or approving
tariffs and prices;
o Implementing inclining block tariffs to protect the low income
electricity consumers; and
o Regulating in a manner which facilitates security of supply.
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OUTCOME 4: DECENT EMPLOYMENT
THROUGH INCLUSIVE ECONOMIC GROWTH
•
NERSA contributes through:
o Licensing and the setting and/or approving of tariffs and prices. In
this manner NERSA creates pre-conditions towards the achievement
of this outcome;
o Approving renewable energy licensees to ensure that the socioeconomic development commitments specified in the DoE bidding
process are met; and
o Promoting companies that are owned and controlled by Historically
Disadvantaged Individuals (HDIs) to become competitive.
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OUTCOME 6: AN EFFICIENT, COMPETITIVE
AND RESPONSIVE ECONOMIC
INFRASTRUCTURE NETWORK
•
NERSA contributes through:
o Regulating in a manner which facilitates security of supply;
o Setting rules and frameworks that facilitate the building of new
infrastructure;
o Setting and/or approving cost reflective tariffs and prices that
encourage investment;
o Facilitating 3rd party access to facilities; and
o Monitoring compliance and undertaking technical audits leading to
regulatory efficiency.
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OUTCOME 8: SUSTAINABLE HUMAN
SETTLEMENTS AND IMPROVED QUALITY OF
HOUSEHOLD LIFE
•
NERSA contributes through:
o
o
o
o
o
Facilitating access to electricity / energy services;
Facilitating reliability of supply;
Monitoring maintenance of infrastructure;
Compliance monitoring to licence conditions; and
Dispute resolution, including mediation, arbitration and handling of
complaints.
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•
OUTCOME 10: ENVIRONMENTAL ASSETS
AND NATURAL RESOURCES THAT ARE
WELL PROTECTED AND CONTINUALLY
ENHANCED
NERSA contributes through:
o Incorporating compliance with the National Environmental
Management Act, 1998 (Act No. 107 of 1998) into licence conditions;
o Promoting energy efficiency in licencees and in the NERSA building;
o Saving of electricity (MYPD1 and MYPD2);
o We have concurred with determinations made by the Minister of
Energy in line with section 34 of the Electricity Regulation Act, 2006
(Act No. 4 of 2006) regarding Open Cycle Gas Turbines in order to
give effect to the Integrated Resource Plan (IRP);
o Monitoring the implementation of the IRP; and
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o Facilitating the transition to a low carbon economy.
OUTCOME 12: AN EFFICIENT, EFFECTIVE
AND DEVELOPMENT ORIENTED PUBLIC
SERVICE AND AN EMPOWERED, FAIR AND
INCLUSIVE CITIZENSHIP
•
NERSA contributes through:
o Transparent Processes;
o All Decisions and Reasons thereof are made public through being
published on the web site;
o The Public is invited to make comments prior to decisions being
made (written or in public hearing);
o Customer education;
o Training and development of staff and stakeholders;
o Clean Energy Education and Empowerment; and
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o Corporate Social Investment – Luvuyo House, Techno Girl.
III. COMPLIANCE WITH OTHER
GOVERNMENT STRATEGIES
• NERSA’s Strategic Plan was not revised in 2013/14 (no
amendment in legislation);
• Other
Government
Strategies
such
as
National
Development Plan (NDP), Industrial Plan and Action
Programme (IPAP) and the Strategic Infrastructure
Programme (SIP) were not completed at the time of
finalisation of the Strategic Plan (2012/13 – 2016/17); and
• All of these will be taken into consideration in the new
planning cycle starting in June 2013.
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IV. STRATEGIC OBJECTIVES
• The strategic objectives of NERSA, expressed as the
desired end state of the energy industry are stated as:
o A Regulatory environment that facilitates investment in energy
infrastructure;
o Ensuring energy supply that is certain and secure for current and
future user needs;
o Ensure that fair competition exists within the energy industry;
o Ensure that regulatory certainty exists within the energy industry;
o Ensure that energy is accessible and affordable for all citizens; and
o Ensure that NERSA is established and positioned as a credible and
reliable regulator.
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V. PROGRAMMES
• In order to achieve its outcome oriented goals NERSA will
deliver on its strategic objectives through the following
structured programmes:
1.
2.
3.
4.
5.
6.
Setting and/or approving tariffs and prices;
Licensing and registration;
Compliance monitoring and enforcement;
Dispute resolution including mediation, arbitration and the handling
of complaints;
Setting of rules, guidelines and codes for the regulation of the three
industries; and
Establishing NERSA as an efficient and effective regulator.
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VI. PROGRAMME STRATEGIC OBJECTIVES
Programme
Programme Strategic Objective
Setting and/or approval of tariffs and
prices
To set and approve tariffs and/or prices that facilitate
affordability and accessibility whilst balancing the
economic interests of all stakeholders
Licensing and registration
To control entry and ensure orderly development of
the industry
Compliance monitoring and
enforcement
To monitor and enforce compliance to legislation and
licence conditions in order to ensure the efficient
operation of licensed activities within the legislative
framework
Dispute resolution including mediation,
arbitration and handling of complaints
To create a fair balance between the needs of all
stakeholders
Setting of rules, guidelines and codes
for regulation
To ensure the setting of appropriate rules, guidelines
and codes of best practices in the quest to promote
uniformity and standardise practices in the regulation
of the three energy industries
Establishing NERSA as an efficient and
effective regulator
To facilitate the effectiveness and efficiency of
NERSA as a regulator in the energy industry
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H. CHALLENGES, NERSA’s
RESPONSE AND LINKS TO
PROGRAMMES
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I. Electricity Industry
Regulation
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Challenge (1)
Demand and Supply
Transport and reliability
NERSA’s Response
Streamlining IPP
licensing process
Energy Efficiency and
Demand Side
Management
Energy Conservation
Scheme for emergency
conditions
Create space for
maintenance of the
generation fleet
Assessment and
evaluation of projects in
Eskom’s approved
Transmission
Development Plan
Programme
Licensing and Registration
Setting of rules, guidelines
and codes
Licensing and Registration
Setting of rules, guidelines
and codes
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Challenge (2)
NERSA’s Response
Distribution and reticulation Compliance framework
implementation and
monitoring
Cost of supply studies for
electricity distributors
Access, affordability and
investments
Programme
Compliance monitoring
and enforcement
Setting of rules, guidelines
and codes
Customisation of the IBTs Setting and/or approval of
prices and tariffs
Monitoring the
implementation of
MYPD3
Municipal tariff approvals
Establishing NERSA as an
Establishment of
efficient and effective
consumer forums
regulator
40
II. Piped-Gas Industry
Regulation
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Challenge (1)
Lack of credible gas
anchor customers
Ensure that prices are
equitable and
competitive for all
categories / classes of
customers
NERSA’s Response
Development of a gas
market
o Monitor trends in
alternative sources of
supply
o Continue the dialogues
on impediments to gas
infrastructure investment
Sending correct price
signals
o Implement maximum
pricing methodology
o Market value pricing
investigations
o Enforce pricing provisions
of the Agreement
Programme
Establishing NERSA as
an efficient and effective
regulator
Setting and/or approval of
prices and tariffs
Compliance monitoring
and enforcement
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Challenge (2)
NERSA’s Response
Programme
Entry to and competition
within the gas market
Promote entry and competition
o Licence construction
applications
o Compliance framework
implementation and
monitoring
o Third Part Access
enforcement and advocacy
Licensing and
Registration
Compliance
monitoring and
enforcement
Loss of credibility and
regulatory reputation can
deter development of the
gas market
Create regulatory certainty
Establishing NERSA
as an efficient and
effective regulator
43
III. Petroleum Pipelines
Industry Regulation
44
NERSA’s Response
o Determining “prudently
incurred” costs in the
increased capital costs
due to infrastructure
construction delays
o Monitor impact on
Transnet’s financial state
Tariff increases may
Setting of appropriate tariffs
incentivise other modes in line with the published
of transport (road and
methodology
rail) when pipelines
need higher volumes
Security of supply of
Monitoring security of inland
petroleum to the inland supply
areas
Challenge (1)
Construction delays
have resulted in
increased capital costs
which will attract higher
tariffs
Programme
Setting and/or approval of
prices and tariffs
Setting and/or approval of
prices and tariffs
Establishing NERSA as
an efficient and effective
regulator
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Challenge (2)
Applicants for storage
construction licences
need to find areas of
low/no competition to
remain competitive
Promotion of 3rd party
access
NERSA’s Response
Evaluation of storage
construction licence
applications
Monitoring and inspection of
licences issued
Identification of and
appropriate action against
unlicensed facilities
Common carriage and 3rd
party access: monitoring
facilitation and enforcement
Programme
Licensing and registration
Compliance Monitoring
and Enforcement
Compliance Monitoring
and Enforcement
46
IV. Cross-Cutting Regulatory
47
NERSA’s Response
Implementation of the
Regulatory Reporting
Manuals (Financial and
Non-Financial)
Advise policy makers of NERSA Regulator
views, policy gaps and
communication with
NERSA’s mandate
Policy Maker
Coordinate NERSA activities
Memoranda of
with other regulators with
Understanding
concurrent jurisdiction
Consumer Advocacy
o Consumer
Education
o Improve access of
customers to public
hearing notices
Challenge (1)
Information Asymmetry
Programme
Establishing NERSA as
an efficient and
effective regulator
Establishing NERSA as
an efficient and
effective regulator
Establishing NERSA as
an efficient and
effective regulator
Establishing NERSA as
an efficient and
effective regulator
48
Challenge (2)
Assess NERSA’s
processes and
methodologies against best
in world practices through
regulatory analysis,
research, benchmarking
and auditing
NERSA’s Response
o Regulatory Impact
Analysis / Assessment
o Benchmarking of
regulatory decisions
o Harmonisation of
regulatory processes
Programme
Establishing NERSA as
an efficient and effective
regulator
49
V. Organisational
50
Challenge (1)
Legislative amendment
o National Energy
Regulator
Amendment Bill
o Electricity Regulation
Amendment Bill
o Independent System
and Market Operator
Bill
Possible change in
institutional character
Attraction and retention
of requisite skills
NERSA’s Response
Institutional and Organisational
Review
Programme
Establishing NERSA
as an efficient and
effective regulator
o Improved Human Resource
Policies, Procedures and
Systems
o Culture recalibration
o Conditions of Service
Establishing NERSA
as an efficient and
effective regulator
51
Challenge (2)
Enabling technology
Conducive working
environment
Image of NERSA
NERSA’s Response
o Business Process Analysis
o Improvement of IT systems and
processes
o Knowledge Management
o Organisational culture
development
o Refurbishment of the NESRA
building
Stakeholder perception survey
Programme
Establishing NERSA
as an efficient and
effective regulator
Establishing NERSA
as an efficient and
effective regulator
Establishing NERSA
as an efficient and
effective regulator
52
I. ANNUAL PERFORMANCE
PLAN (2013/14 – 2015/16)
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I. ELECTRICITY INDUSTRY REGULATION
54
NUMBER OF KPI’S PER PROGRAMME
55
Programme 1: Setting and/or approval of
tariffs and prices
•
•
•
•
•
Municipal tariff approvals;
Implementation of inclining block tariffs;
Free Basic Electricity;
Monitoring the implementation of MYPD3; and
Structural adjustment approvals.
56
Programme 1: Setting and/or approval of tariffs and prices (1)
Programme KPI
% of tariff applications of all licensed
distributors approved
Annually published Guidelines for
Municipal tariff increases and
Benchmarks
Number of metros’ Regulatory
Reporting Manual (RRM)
implementation plans approved
% of licensed distributors for residential
customers with Approved Inclining
Block Tariffs (IBTs)
Annually approved Free Basic
Electricity Rate for Eskom
Target for 2013/14
100%
Published Guidelines for Municipal tariff
increases and Benchmarks for 2014/15
6
80%
Free Basic Electricity Rate for 2013/14
approved and communicated
57
Programme 1: Setting and/or approval of tariffs and prices (2)
Programme KPI
Annual approved report on Eskom’s
actual revenue recovery
Target for 2013/14
Annual report on Eskom’s actual
revenue recovery
Annually approved Regulatory Financial
Reports of Eskom
Approved Eskom’s Regulatory Financial
Reports for 2012/13
Annually approved retail tariffs (ERTSA)
of Eskom
Approved Eskom’s retail tariffs (ERTSA)
for 2014/15
58
Programme 2: Licensing and Registration
• Processing of licence applications
59
Programme 2: Licensing and Registration
Programme KPI
% of licence applications processed
within statutory time frames
Target for 2013/14
80% of licence applications processed
within 120 days from application
60
Programme 3: Compliance Monitoring and
Enforcement
• Conducting of compliance audits; and
• Monitoring implementation of action plans arising from
compliance audits.
61
Programme 3: Compliance monitoring and enforcement
Programme KPI
Target for 2013/14
Number of licencees audited per annum
10
to determine their level of compliance
with licence conditions
Number of audit reports on the state on
10
compliance of licencees with licence
conditions
Number of corrective action plans
5
received from non-complying licencees
monitored
Annual report on state of compliance in Annual report on state of compliance in
the electricity industry published
the electricity industry published
62
Programme 4: Dispute resolution, including
mediation, arbitration and handling of
complaints
• Resolution of complaints
63
Programme 4: Dispute resolution, including mediation,
arbitration and handling of complaints
Programme KPI
% of complaints processed within
statutory timelines
Annual report on the trends regarding to
and status of complaints in the electricity
industry published
Target for 2013/14
75% of complaints processed within 120
days from receipt
Annual report on the trends regarding to
and status of complaints in the
electricity industry published
64
Programme 5: Setting of rules, guidelines
and codes for the regulation of the
electricity industry
•
•
•
•
Grid Code administration;
Audits of Transmission development plans;
Audits on EEDSM and compliance with the MYPD; and
Reports on performance and progress of Renewable
Energy.
65
Programme 5: Setting of rules, guidelines and codes for the
regulation of the electricity industry (1)
Programme KPI
% of applications from the ESI relating to fair and
equitable access to electricity infrastructure
requiring exemptions to the South African
distribution and transmission grid code,
considered in line with legal requirements
% of applications from the ESI relating to fair and
equitable access to electricity infrastructure
requiring amendment to the South African
distribution and transmission grid code,
considered in line with legal requirements
Updated grid code
Target for 2013/14
80%
80%
Annually published updated
Grid Code
66
Programme 5: Setting of rules, guidelines and codes for the
regulation of the electricity industry (2)
Programme KPI
Number of approved audit reports that details the
assessment and evaluation of projects in Eskom’s
approved Transmission Development Plan for
compliance with the South African Grid Code
Number of approved audit reports for the review of
EEDSM and compliance with the MYPD
Target for 2013/14
1
1
Number of action plans for the annual EEDSM
audits
1
Number of reports on the performance and
progress of Renewable Energy
4
67
Programme 6: Establishing NERSA as an
efficient and effective regulator
• Establishment of end-user forums
68
Programme 6: Establishing NERSA as an efficient and
effective regulator
Programme KPI
Number of end-user forums established
Target for 2013/14
5
69
II. PIPED-GAS INDUSTRY REGULATION
70
NUMBER OF KPI’S PER PROGRAMME
71
Programme 1: Setting and/or approval of
tariffs and prices
• Approval of maximum prices;
• Approval of transmission and storage tariffs;
• Report on Sasol Gas compliance with all pricing provisions
in terms of Schedule One to the Agreement; and
• Calculation of aggregate prices.
72
Programme 1: Setting and/or approval of tariffs and prices (1)
Programme KPI
Finalised number of maximum
prices applications approved
within 120 days from the date of
publishing the (final) price
application
Finalised number of transmission
and storage tariffs applications
within 120 days from the date of
publication of the tariff application
Target for 2013/14
Finalise maximum price applications for all
licensees other than Sasol Gas within 120
days from the date of publishing the (final)
price application
Decision on Transnet transmission tariff and
all storage licensee tariff applications within
120 days of the date of publication of the
(final) tariff application
Draft/consultation (Gauteng) gas
transmission pipeline tariffs for Sasol Gas
Number of days for providing a
report on Sasol Gas compliance
with all pricing provisions in terms
of Schedule One to the Agreement
Report on Sasol Gas compliance with all
pricing provisions contained in Schedule
One to the Agreement to be completed
within 110 days after receipt of the relevant73
information
Programme 1: Setting and/or approval of tariffs and prices (2)
Programme KPI
Target for 2013/14
Number of days for completing the Approval of aggregate prices of gas for 2012
calculation of aggregate prices of in each province within 120 days after receipt
gas for each province in line with
of the relevant information
legal requirements
74
Programme 2: Licensing and Registration
• Processing of licence and registration applications and
implementation of decisions;
• Investigation of industry investigated to identify unregistered
import and production activities; and
• Reporting on the implementation of the gas to power
component of IRP2010.
75
Programme 2: Licensing and Registration
Programme KPI
% of all licence applications
finalized according to licensing
procedures
Number of days taken to finalise
registration applications
Annual reports on the
implementation of gas to power in
IRP
Target for 2013/14
50%
100% of registration applications are
processed within 60 days and approved
within 90 days.
Draft implementation framework developed
and communicated
76
Programme 3: Compliance Monitoring and
Enforcement
•
•
•
•
Assessment of volume balance reports;
Conducting of audits on ROMPCO pipeline;
Conducting investigations / inspections; and
Reports on uncommitted capacity.
77
Programme 3: Compliance Monitoring and Enforcement
Programme KPI
Number of monthly volume balance
reports assessed and discrepancies
investigated
Number of audits on the ROMPCO
pipeline conducted
Target for 2013/14
12
2
Number of investigations / inspections
conducted
4
Quarterly monitoring reports on RRM
Compliance
Full year financial reports submitted by
50% of licensees included in the pilot
project
Evaluation reports on uncommitted
capacity in transmission pipelines
ROMPCO + 1
78
Programme 4: Dispute resolution, including
mediation, arbitration and handling of
complaints
• Resolution of received complaints; and
• Finalisation of investigations.
79
Programme 4: Dispute resolution, including mediation,
arbitration and handling of complaints
Programme KPI
% of complaint investigations completed
within 9 months and non-compliance
notices issued (where applicable)
% of initiated investigations completed
within 9 months and non-compliance
notices issued (where applicable)
Target for 2013/14
50%
50%
80
Programme 5: Setting of rules, guidelines
and codes for the regulation of the pipedgas industry
• Developed, approved and implemented HDI scorecard.
81
Programme 5: Setting of rules, guidelines and codes for the
regulation of the piped-gas industry
Programme KPI
Developed, approved and implemented
HDI scorecard
Target for 2013/14
Approved HDI scorecard
implementation framework
82
Programme 6: Establishing NERSA as an
efficient and effective regulator
• Proposed
amendments
to
legislation
engagements with policy maker; and
• Stakeholder workshops.
and
other
83
Programme 6: Establishing NERSA as an efficient and
effective regulator
Programme KPI
Ongoing engagements with policy
makers
Number of stakeholder workshops and
media engagements
Target for 2013/14
Continued engagement policy makers
and comment on legislative
amendments where applicable
4
84
III. PETROLEUM PIPELINES INDUSTRY
REGULATION
85
NUMBER OF KPI’S PER PROGRAMME
86
Programme 1: Setting and/or approval of
tariffs and prices
• Setting of pipeline tariffs (Transnet and others);
• Approval of storage and loading facility tariffs.
87
Programme 1: Setting and/or approval of tariffs and prices
Programme KPI
Number of pipelines tariffs applications
approved
% of licensed storage and loading
facilities’ tariffs approved
Target for 2013/14
Approved Transnet pipeline tariffs
for 2014/15
Approved tariffs for Chevron
40%
Updated published storage tariff
Published storage tariffs
Annual Report on benchmarking of
storage tariffs
Conduct a benchmark study on storage
tariffs
Updated published financial and
information
Financial and tariff information
published on NERSA website
88
Programme 2: Licensing and Registration
• Processing of licence applications; and
• Investigation of suspected unlicensed activities.
89
Programme 2: Licensing and Registration
Programme KPI
% of licences approved within statutory
deadlines
Number of suspected unlicensed
facilities investigated
Target for 2013/14
100%
5
90
Programme 3: Compliance Monitoring and
Enforcement
•
•
•
•
•
Infrastructure utilisation reports;
Completion of assessment reports;
HDSA reporting;
Storage allocation reporting; and
Reporting on specified licensees’ implementation of the
pipelines and loading facilities access principles.
91
Programme 3: Compliance Monitoring and Enforcement
Programme KPI
Number of infrastructure utilisation
reports
% of reports analysed and ready for
noting within 60 days
Published status report on HDSA
indicators based on a % of licensees
Published storage allocation
mechanisms based on a % of licensees
Number of reports on the analysis of
specified licensees’ implementation of
the pipelines and loading facilities
access principles
Target for 2013/14
2
90%
70%
70%
2
92
Programme 4: Dispute resolution, including
mediation, arbitration and handling of
complaints
• Resolution of complaints
93
Programme 4: Dispute resolution, including mediation,
arbitration and handling of complaints
Programme KPI
% of complaints received investigated
and concluded in line with legal
requirements
Target for 2013/14
100% of complaints received
investigated and reported on within 60
days.
94
Programme 5: Setting of rules, guidelines
and codes for the regulation of the
petroleum pipelines industry
• Publish licensing guidelines;
• Publish tariff guidelines for storage facilities;
• Review and publish Frequently Asked Questions document
on tariff applications;
• Publish guidelines for calculation of Starting Regulatory
Asset Base;
• Publish Minimum Information Requirements for Tariff
Applications; and
• Reporting on contributions towards alignment between
95
different Acts and government policies and regulations.
Programme 5: Setting of rules, guidelines and codes for the
regulation of the petroleum pipelines industry (1)
Programme KPI
Target for 2013/14
Approved licensing guidelines published Updated licensing guidelines published
on NERSA website
Approved tariff guidelines for storage
Updated annual tariff guidelines for
facilities published
storage facilities published on NERSA
website
Approved annually reviewed FAQ
Approved reviewed FAQ published on
published
NERSA website
Approved guidelines to determine the
Guidelines to determine the SRAB of
SRAB of storage facilities published
storage facilities published
Approved Minimum Information
Approved updated MIRTA published on
Requirements for Tariff Applications
NERSA website
(MIRTA) published
96
Programme 5: Setting of rules, guidelines and codes for the
regulation of the petroleum pipelines industry (2)
Programme KPI
Number of reports on contributions
towards alignment between Petroleum
Pipelines Act and Petroleum Pipelines
Levies Act and government policies and
regulations
Target for 2013/14
Quarterly
97
Programme 6: Establishing NERSA as an
efficient and effective regulator
• Approved implementation plan for the findings and
recommendations in the Report on investigated
infrastructure and bottlenecks in the petroleum pipelines
infrastructure in Durban; and
• Report on the inland supply forecast.
98
Programme 6: Establishing NERSA as an efficient and
effective regulator
Programme KPI
Approved implementation plan for the
findings and recommendations in the
Report on investigated infrastructure
and bottlenecks in the petroleum
pipelines infrastructure in Durban
Number of reports on the inland supply
forecast
Approved RRM for non-financial
information (NFI) Volume 7
Target for 2013/14
Implementation plan for the findings and
recommendations in the Report on
investigated infrastructure and
bottlenecks in the petroleum pipelines
infrastructure in Durban
Biannual
Finalised RRM for NFI
99
IV. CROSS-CUTTING REGULATION
100
NUMBER OF KPI’S PER PROGRAMME
101
Programme 6: Establishing NERSA as an
efficient and effective regulator
•
•
•
•
•
Benchmark report on regulatory decisions by category;
Impact of regulatory decisions;
Research on new sources of energy;
Stakeholder engagement and education; and
Approved proposals / comments on policy changes.
102
Programme 6: Establishing NERSA as an efficient and
effective regulator (1)
Programme KPI
Benchmark report on regulatory
decisions by category
Report on the impact of regulatory
decisions
Research reports on new sources of
energy
Published quarterly newsletters
Number of stakeholder engagement and
education programmes conducted
Target for 2013/14
Benchmark report on regulatory
decisions by category
Approved framework for conducting
impact assessment
Research reports
Quarterly newsletters published
25
103
Programme 6: Establishing NERSA as an efficient and
effective regulator (2)
Programme KPI
Approved proposals / comments on
policy changes
Target for 2013/14
Approved proposals / comments on
policy changes (if and when necessary)
104
V. ORGANISATIONAL
105
NUMBER OF KPI’S PER PROGRAMME
106
Programme 6: Setting of rules, guidelines
and codes for the regulation of the
electricity industry
•
•
•
•
•
•
Implementation of Annual Performance Plan;
Organisational structure filled;
Training and Development;
Customer satisfaction;
Unqualified audit; and
Payment of creditors.
107
Programme 6: Establishing NERSA as an efficient and
effective regulator (1)
Programme KPI
% of targets in the Annual Performance
Plan met
% of organisational structure filled
% of staff undergoing training and
development
Level of (%) customer satisfaction
Result of annual audit
% of creditors paid within 30 days after
all relevant documentation have been
received
Target for 2013/14
Baseline to be determined in 2012/13
95%
80%
68%
Unqualified
100%
108
J. BUDGET AND FUNDING
(2013/14)
109
RING-FENCING METHODOLOGY
• According to Section 13 of the National Energy Regulator
Act, all accounts for the three regulated industries have to
be ring-fenced
o all direct costs attributable to an industry are allocated to that industry
o the ratio of the staff compliment attributed to the industry-specific
functions is used to allocate the remaining (common) costs to the
respective industries
o the common costs allocation ratio for electricity, piped-gas and
petroleum pipelines industries is 58%:21%:21%
110
BUDGET AND FUNDING FOR 2013/14
Expenditure
Income
Levies
Electricity
R159 225 099
R137 043 936
0.05468 c/kWh
Piped-Gas
R56 942 531
R48 808 067
30.166 c/GJ
Petroleum
Pipelines
R59 739 715
R50 933 740
0.28777 c/l
Other
Total
R39 121 602*
R275 907 345
R275 907 345
*Over recovery from previous years from regulated industries
– approved by National Treasury
111
NATIONAL ENERGY REGULATOR OF SOUTH AFRICA
Budget per programme
2013/14
Programme
PROG 1 - Setting and/or approval
of tariffs and prices
PROG 2 - Licensing and
Registration
PROG 3 - Compliance monitoring
and enforcement
PROG 4 - Dispute resolution
including mediation, arbitration
and the resolution of complaints
PROG 5 - Setting of rules, guides
and codes for regulation
PROG 6 - Establishing NERSA as
an efficient and effective
organisation
Total per Industry
Electricity
Piped-Gas
Petroleum
Pipelines
Total per
Programme
51 820 027
12 358 916
26 623 264
90 802 206
23 216 712
7 867 285
11 974 737
43 058 734
15 477 808
7 867 285
8 708 092
32 053 185
10 318 539
1 866 190
3 110 072
15 294 801
40 070 485
10 697 091
3 776 296
54 543 872
18 321 528
16 285 764
5 547 255
40 154 547
159 225 099
56 942 531
59 739 715
275 907 345
112
K. CONCLUSION
113
CONCLUSION
• NERSA would like to thank the Portfolio Committee for the
opportunity to present its Strategic Plan and Annual
Performance Plan;
• Ongoing refinement of processes is taking place;
• NERSA is conscious of the regulatory burden it imposes;
• NERSA is striving for regulatory certainty to create a
conducive environment for attracting and ensuring orderly
investment;
• Filling legislative gaps is a priority; and
• Regulatory challenge - balance the interests of suppliers
and customers.
114
THANK YOU
visit us at www.nersa.org.za
115