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NATIONAL ENERGY BILL [B52 – 2008]

NATIONAL ENERGY BILL [B52 – 2008]. PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON MINERALS AND ENERGY By NERSA. OVERVIEW OF PRESENTATION. Background of NERSA Context of comments Purpose of the presentation Recommendations Conclusion. NERSA REGULATED INDUSTRIES AND LEGISLATION.

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NATIONAL ENERGY BILL [B52 – 2008]

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  1. NATIONAL ENERGY BILL[B52 – 2008] PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON MINERALS AND ENERGY By NERSA

  2. OVERVIEW OF PRESENTATION • Background of NERSA • Context of comments • Purpose of the presentation • Recommendations • Conclusion

  3. NERSA REGULATED INDUSTRIES AND LEGISLATION Single, multi-sector regulator - National Energy Regulator Act, 2004 (Act No. 40 of 2004) • Electricity Electricity Regulation Act, 2006 (Act No. 4 of 2006) • Piped Gas Gas Act, 2001 (Act No. 48 of 2001) • Petroleum Pipelines Petroleum Pipelines Act, 2003 (Act No. 60 of 2003) Based on these 3 Acts NERSA executes its mandate among others, with regards to planning, modelling and data collection, storing and dissemination

  4. CONTEXT OF COMMENTS • NERSA welcomes and supports the objectives of the Bill • The Bill however brings about challenges • The position of the Energy Regulator on the Bill is informed by the need to: • Minimise the proliferation of public entities performing identical functions; • Minimise the functions to be performed at Ministerial level as proposed in the Bill; • Clearly define or set a framework through which the entities can operate to minimise gaps and overlapping jurisdiction; • Address cooperative governance among the entities. • Appropriately assign responsibilities between the Executive Authority, the Minister and the legislature

  5. PURPOSE OF THE PRESENTATION • The purpose of this presentation to the Parliamentary Portfolio Committee on Minerals and Energy (PPC) is to propose general and specific amendments to the National Energy Bill • The presentation borders on the following areas to give context to the comments: • Implications of the Bill • Juristic nature and powers of the entities proposed in the Bill

  6. PURPOSE OF THE PRESENTATION • Duplication of functions • Penalty provision proposed by the Bill vis-à-vis regulatory penalty • Recommendations

  7. Implications of the Bill • There is overlapping jurisdiction between current and proposed entities in the Bill • This will lead to additional expenditure in setting up the entities and duplication of tasks, human capital and financial; • The will be a overstretch to the already limited human resources skills; • The creation of grey areas that will weaken the effectiveness and efficiency of the entities;

  8. Implications of the Bill (cont) • The context of the Bill encroaches on the provisions of the Promotion of Access to Information Act, 2000 (Act No. 2 of 2000)(it sets a framework) - s3 p 5 • The Bill does not define or set a framework on how the current and proposed entities will interact.

  9. Powers of the proposed entities • The functions of the entities are not totally provided for in the Bill; • The functions/ powers of SANEDI are accorded to the Minister and the divisions within the entity; • The Bill is very prescriptive on structural issues eg it defines what divisions the entities must establish;

  10. Duplication of functions • The Bill was drafted before the establishment of NERSA and it does not take into account subsequent changes brought about by the establishment; • There is therefore no interface among:- • The existing and proposed entities • Legislation • Data, modelling and planning

  11. Penalty provision in the Bill • The Bill takes away the supposed power of the entity to penalise non-compliance by utilities and entities and gives it to courts of law; • The complexity of investigation in non-compliance should be performed by the entities up to the finalisation stage; • Investigation by the entities is complex i.e non compliance processes in the energy industry to be uniform;

  12. PROPOSED AMENDMENTS Not limited to the below proposed amendments the National Energy Regulator proposes: • Section 8(1)(c) to read: NEMIA in consultation with the National Energy Regulator in developing sector specific energy plans • Section 8 (2)(a) to read: NEMIA must in accordance with this Act and in consultation with the National Energy Regulator advise the Minister

  13. PROPOSED AMENDMENTS • Section 8(2)(b)(i) to read: the possible impact on the economy of any draft energy policy (P7) • Section 16(1) to read: NEMIA must… (P9) • Section 19(1) to read: the Board may establish subcommittees and may appoint any of its members to one or more subcommittees… (P11)

  14. PROPOSED AMENDMENTS • There should be an addition in section 21 which sets out the conditions under which the CEO should vacate office • Section 26 to read: SANEDI must… (P14) • Section 28 to read: SANEDI must…(P15) • Section 34(2)(d) to read: invest in or enter into contracts with the owners of…. (P18)

  15. CONCLUSION • NERSA humbly requests that the PPC consider the comments and recommendations made and believes that the current version of the National Energy Bill will be enhanced if accepted • NERSA is willing and prepared to assist the department in revising the Bill • If the PPC needs further clarity and/or input, NERSA is prepared to present further to the Committee

  16. Thank you

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