PCE PRESENTATION OF THE 2013 14 2 nd QUARTER

PCE PRESENTATION OF THE 2013/14 2 nd QUARTER PERFORMANCE (Quarter ending 30 September 2013) Mr. G Mnguni Acting Director-General 29 October 2013 1

DEPARTMENT OF ENERGY Introduction a) In April this year, the Department presented its 2013/14 APP to this committee based on the strategic session held in November 2012. b) The presentation indicated where our plans going forward were aligned to government priorities, NDP, government outcomes, budget as well as our role in the Strategic Integrated Projects (SIPs) of PICC. 2

DEPARTMENT OF ENERGY Introduction (continues……) c) The Department took cognisance of the fact that 2013/14 is the last year of the current government’s term of office. d) Key focus areas have been identified for the 2013/14 financial year 3

DEPARTMENT OF ENERGY KEY FOCUS AREAS FOR 2013/14 • Implementation of the IRP ( nuclear, IPPs, etc. ) • Increase the number of grid and non-grid connections through INEP • Solar Water Heaters programme • Energy Efficiency • Finalisation of the CEF group restructuring process • Finalisation of the IEP • Monitoring of Petroleum Compliance • Conclusion of the Regulatory Account Process 4

CONCLUSION • Today’s presentation is on progress made during the 2 nd quarter. • Branch heads will focus their presentations on the partially achieved and not achieved targets • CFO will give details of the department’s financial performance. THANK YOU 5

DEPARTMENT OF ENERGY PCE PRESENTATION ON THE 2 nd QUARTER PERFORMANCE PROGRAMME 4 : NUCLEAR ENERGY Mr Z Mbambo Deputy Director General 6

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 4: Nuclear Energy Annual Target 1 nuclear infrastructure review conducted. Implementation of procurement process. Submission made to NNEECC on Nuclear Fuel Cycle Strategy. Quarterly Target Progress this Quarter Comments/ Corrective actions Commence self Achieved assessment according to International Atomic Energy Agency (IAEA) guidelines on Emergency Preparedness Review (EPREV). Recommendation to Achieved Cabinet on procurement process specifications. Self assessment Commenced and EPREV Team reviewed the responses to questionnaires through a workshop N/A Strategy document ready for NNEECC meeting of July 2013. Procurement framework proposal ready for NNEECC meeting of July 2013 7

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 4: Nuclear Energy Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions Set up NRWDI office & implement Section 30 (transitional arrangement) of the NRWDI Act, 2008. Office space secured. Partially Achieved Board of Directors appointment pronouncement still outstanding, although NRWDI office is not yet established Do. E is currently setting up Bank account for transfer of Seed capital. Technical Task Team (TTT) initiated strategies to address transitional arrangements. 1 RPM installed. Import equipment. project delayed. Department currently engaging relevant stakeholders in this process. Not Achieved 8

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 4: Nuclear Energy Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions 100% of applications for nuclear materials & related equipment concluded within the 8 -week time period. 100% of applications Partially achieved 16 out of 19 (84%) for nuclear materials authorizations were issued & related equipment within the turnaround time. concluded within the 8 -week time period. 1 (Number of nuclear audits conducted). Nuclear audit initiated. Not achieved The NNP directorate consulted the Internal audit Directorate and National Nuclear Regulator (NNR) on the process to follow when conducting an audit. Then reason for the consultation was because this is the first audit the Directorate will be conducting. The initiation will be done in the 3 rd quarter 9

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 4: Nuclear Energy Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions 8 nuclear safeguards compliance inspections conducted. 2 nuclear safeguards Achieved compliance inspections conducted. Safeguards Inspection reports Public consultation process completed. Address public comments. Target not met and Cabinet Submission deferred to next financial year. Workshop with stakeholders to address FOSAD comments held, with the exception of Do. E Navy. Not Achieved 10

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 4: Nuclear Energy Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions Nuclear Energy Act Draft amendment bill Not Achieved amendment submitted to legal Cabinet. advisors. Addressing stakeholders comments. One stakeholder’s comments still outstanding. Public consultation process completed. Bill consulted with Treasury for concurrence. Draft bill consulted with legal advisor. Not Achieved 11

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 4: Nuclear Energy Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions Transitional arrangements for SSAC. Source the funding. Not achieved Ministerial Delegation of Authority given to the host. As reported in the 1 st quarter the host was not identified due the recommendations in the INIR. A submission was approved in the 1 st quarter to change the reporting of Nuclear Safeguards management division from Necsa to Do. E. A meeting was held with Necsa to discuss the change in the reporting line. 4 community outreach events held. 2 community outreach events held. 1 ministerial engagement held with the young nuclear professionals held in Cape Town on 13 June 2013. Partially Achieved 12

DEPARTMENT OF ENERGY PCE PRESENTATION ON THE 2 nd QUARTER PERFORMANCE PROGRAMME 3 : PETROLEUM & PETROLEUM PRODUCTS REGULATIONS Mr T Maqubela Deputy Director General 13

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 3: Petroleum and Petroleum Product Regulation Annual Target Quarterly Target 1 500 compliance 750 compliance inspections conducted inspections at sites conducted (cumulative target) Progress this Quarter Achieved 100% of enforcement Achieved notices issued Comments/ Corrective actions Number of inspection conducted is 463. The cumulative number is 845 There were 20 Non-compliance issues identified during the quarter under review. 13 enforcement notices were issued and 6 non-compliance matters were resolved immediately, hence no notice was issued. Therefore the percentage of enforcement notices issued for noncompliance this quarter is 65% 14

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 3: Petroleum and Petroleum Product Regulation Annual Target 750 fuel samples tested Quarterly Target 250 samples tested Progress this Quarter Not Achieved Comments/ Corrective actions The compulsory briefing sessions for prospective se 4 rvice provider were held on the 17/09/2013 as well as on the 25/09/2013 15

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 3: Petroleum and Petroleum Product Regulation Annual Target Quarterly Target Progress this Quarter 90% compliance rate Partially with 60 days Achieved prescribed timeframe by the controller when adjudicating on petroleum site& retail NTI licence application Comments/ Corrective actions Number of Petroleum Site & Retail NTI applications finalised within 60 days is 47 out of 56 (83. 9%) that were due for finalisation this quarter. The target is partially achieved due to applicants requesting more time to submit additional information, which then impact on the period it takes to finalised the applications. 16

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 3: Petroleum and Petroleum Product Regulation Annual Target Quarterly Target Progress this Quarter 95% compliance rate Achieved with the 90 days with 90 days prescribed timeframe by the controller adjudicating on all petroleum activity licence applications excluding site & retail NTI applications Comments/ Corrective actions Number of Petroleum activity licence applications excluding Site & Retail NTI applications, finalised within 90 days is 46 although only 38 were due for finalisation this quarter. 17

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 3: Petroleum and Petroleum Product Regulation Annual Target 100% compliance rate by the controller on finalising all historical applications that were on the system as of 30 September 2012 Quarterly Target 50%(cumulative target) of outstanding application finalised Progress this Quarter Partially Achieved Comments/ Corrective actions Number of historical applications that were finalised is 263 out of 1783 (15%) that were in the system at the beginning of this quarter. The cumulative figure is 32%. The Department is working with Oil companies to exert pressure on retail applicants to submit additional information so their licences can be finalised. 18

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 3: Petroleum and Petroleum Product Regulation Annual Target 100% of arbitration notices issued for arbitration request Quarterly Target Progress this Quarter 100% complicate rate Not Achieved 9 PPA & licencing 5 (cumulative target) Achieved awareness campaigns awareness conducted per annum campaigns conducted Comments/ Corrective actions 1 arbitration requests received during this quarter however it could not be finalised, Awaiting BP South Africa Pty Ltd's representations on the request for arbitration by the complainant Number of awareness campaigns conducted during this quarter is 4. Cumulative target is 5. 19

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 3: Petroleum and Petroleum Product Regulation Annual Target Quarterly Target Implement the BFP & • Amend the BFP MDZ review study working rules & recommendations implement the revised pricing elements. • Appoint a service provider to conduct the MDZ Progress this Quarter Not Achieved Comments/ Corrective actions The Department met with SAPIA technical team to discuss their recommendation and seek supporting documents. The DOE team attended training at Thompson Reuters, where, most of the BFP elements were discussed. The MDZ review will be conducted after June 2014 when all the terminals of the NMPP are completed. 20

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 3: Petroleum and Petroleum Product Regulation Annual Target Implement and monitor. RAS Fuel margins in line with RAS models. Quarterly Target Submit progress reports Progress this Quarter Partially Achieved Comments/ Corrective actions The Department concluded one -on-one meetings with the oil companies, Retailers and the Independent Wholesalers. The purpose of the meetings was to discuss outstanding issues for RAS implementation in December 2013. 21

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 3: Petroleum and Petroleum Product Regulation Annual Target Quarterly Target Promulgate & Included in the implement the fixed monthly fuel price retail margin of IP submission Progress this Quarter Not Achieved Comments/ Corrective actions The submission requesting approval to promulgate the regulation was returned to the Directorate for clarity. The Directorate was requested to make a presentation during the branch meeting in October 2013. 22

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 3: Petroleum and Petroleum Product Regulation Annual Target Conduct the service stations survey to determine the BSS asset base Quarterly Target Progress this Quarter • Training of the Not Achieved inspectors & identification of the service stations to be surveyed Comments/ Corrective actions Only two companies submitted their Bids Documents. The Bid Evaluation Committee could not recommend neither of them for further evaluation because they did not qualify technically. The Directorate will submit the TOR to the BAC for re-advertisement during October 2013 23

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 3: Petroleum and Petroleum Product Regulation Annual Target Quarterly Target Gazette the Biofuels Publish Biofuels pricing framework pricing regulation Progress this Quarter Not Achieved Comments/ Corrective actions The Biofuels Task Team was requested to include other crops in the pricing models by the sugar industry. The qualification criteria that the biofuels manufacturers should meet in order to qualify for the subsidy could not be finalised. Hence, the publication could not be done. 24

DEPARTMENT OF ENERGY PCE PRESENTATION ON THE 2 nd QUARTER PERFORMANCE PROGRAMME 6 : PROGRAMMES AND PROJECTS Dr W Barnard Deputy Director General 25

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions 200 000 additional 65 000 additional Partially Achieved: Achievement: households Municipalities YTD households electrified 26 676 electrified: 92 085 additional households Eskom electrified 32 216 additional households TOTAL = 58892. 15 000 non-grid 4 000 non-grid Not Achieved: Achievement: connections. 2074 new non-grid A total of 4415 nonconnections were grid connections made. achieved from Quarter 1 and 2. Constraints: Late signing of nongrid contracts by service providers. 26

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target 2 IEC established Quarterly Target Progress this Quarter Comments/ Corrective actions 1 IEC established Achieved: For Quarter 1 and 2 Makwane IEC a total of 1 IEC has established in been established. Qwaqwa, Free State. This IEC will be launched in November 2013, awaiting a date in the Minister's diary. 27

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions 350 km new MV 90 km new MV Partially Achieved: Comment: power lines EC-Gatyana 132 k. V Holistic project constructed line -construction is approach have 36%. projects running in FS-Badirile MV/LV line parallel and not complete. specific delivery per WC-Dassenberg 11 k. V km. feeder complete, EC-Ngqeleni PH 3 22 Link Line PH 2, FSFeeder line to Ntha 4. 2 km = 40% complete (1. 7 km), 6 km 88 k. V feeder line from Zamdela Substation to Leitrim Substation =0%, 28

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions 350 km new MV 90 km new MV Partially Achieved: Comment: power lines Feeder Line to Holistic project constructed (cont. ) constructed Mkgolokoeng 4 KM = approach have 90% complete projects running in (3. 6 km), Feeder Line parallel and not to Tshiame, Overhead specific delivery per Feeder Line P-4, km. GT-Obed Nkosi Bulk Supply=0%, Cable link to energize Borwa=100% complete, Cable link to , Middelvlei / Mohlakeng ext 11 132 /KV overhead line- phase 2 -3. 2 KM = 100% complete, Simunye, MP-11 k. V, 14 km=0%, 29 Farrad Conductor =

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target Quarterly Target 220 km existing MV 75 km existing power lines MV power lines upgraded Progress this Quarter Comments/ Corrective actions Partially Comment: Achieved: Holistic project WC-Wittewater approach have Moravian station, projects running in Robberg farmers parallel and not feeder 1, DU Noon specific delivery per 11 k. V feeder, km. Robberg farmers feeder 2, Belhar 11 k. V lines, Zandberg F 2 Sandfontein voltage regulator, 35% complete 30

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target 6 new bulk substation built Quarterly Target Progress this Quarter Comments/ Corrective actions 2 new substation Partially Comment: built Achieved: Holistic project EC-Gatyana approach have substationprojects running in construction is parallel and not 15%. Zwelethu specific per sub-100% substation. complete, Zoo Substation, New Signal substation. , FS-Leitrim sub, MP-Msukaligwa x 33 88/11 k. V sub = 3%, NW-Vryburg ext 25 sub = 0%, WC- Calitzdorp 20 mv. A, 66/11 kv sub = 0%, 31

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target 6 new bulk substation built (cont. ) Quarterly Target Progress this Quarter Comments/ Corrective actions 2 new substation Partially Comment: built Achieved: Holistic project GT-Mohlakeng approach have x 11 projects running in phase 2=0%, Bulk parallel and not Supply Khutsong specific per South Secondary substation. Network (Ext 1 substation) = 98% complete 32

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target 10 additional substations upgraded Quarterly Target 3 additional substation upgraded Progress this Quarter Comments/ Corrective actions Partially Comment: Achieved: Holistic project WC - Belhar approach have substation, projects running in Khayelitsha feeder parallel and not bay 45% complete. specific per KZAN-Wembezi substation. sub upgrade, MP-Emjindini Trust sub =0%, GT -K 1=85% complete, K 3 Substation= 70% complete, NW-De la Reyville and Ventersdorp subs =0%, 33

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target 10 additional substations upgraded (cont. ) Quarterly Target 3 additional substation upgraded Progress this Quarter Comments/ Corrective actions Partially Comment: Achieved: Holistic project FS-Upgrade of approach have Greenland projects running in Substation from 10 parallel and not MVA to 15 MVA = specific per 0%, substation. NC-Okiep and Nababeep Primary Substations = 100% 34

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions R 933 million spent R 200 million spent Achieved: on BEE & SMME R 659 million was spent on BBEEE and SMME by Window 1 IPPs. 12 progress reports 3 reports submitted Achieved: submitted Monthly report received from Regions. 35

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions 12 progress reports & 3 progress reports Achieved: dashboards submitted & dashboards Progress reports per project submitted per were prepared for project INEP, IPPs, PICC, Outcome 6 and Outcome 9. 4 SIP reports 1 SIP report Achieved: Achievement: submitted to EXCO submitted to SIP reports for SIP Two SIP reporting /MANCO & PICC EXCO /MANCO & 6, 8 and summary sessions were held Secretariat on all SIPs PICC Secretariat of all other SIPs with Minister on all SIPs DOE are involved Martins and one with, have been with Deputy forwarded to PICC. Minister Thompson SIP 8 Business Plan was approved by Minister Martins, the Chair of SIP 8. 36

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions Refurbishment of key Refurbishment Achieved: Comment: electrical networks in of key electrical All project The mini-ADAM 9 municipalities. networks in 3 documentation have project is running in municipalities. been completed and all 9 municipalities in the municipal parallel, hence no business plans projects have approved by the currently been MASC (Mini-Adam completed. Steering Challenges: Committee). The 9 Obtaining responses contracts were sent and signed to municipalities for documentation from their signatures. municipalities. 37

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target 129 679 SHWs installed Quarterly Target 60 000 SWHs installed Progress this Quarter Comments/ Corrective actions Not Achieved: Comment: A total of 7787 The figures are only SWH installed for July+Aug as the period July and September figures August 2013. has not been submitted. Challenges: The contract with Eskom with regards to the Contracting Phase has not been completed. As interim measure, a local manufacturing Rebate Phase will be implemented. 38

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target Quarterly Target 60 % of construction 25 % of phase of IPP Bid construction Window 1 projects phase of IPP Bid completed. Window 1 projects completed. 12 000 jobs created. 3 000 jobs created. Progress this Quarter Comments/ Corrective actions Achieved: 37% of construction of Window 1 projects are completed. Achieved: 8016 new jobs have been created in BW 1 and 1514 in BW 2 of the IPP programme. 511 jobs have been created as part of the INEP programme but is an accumulative figure for the year TOTAL: 10 041. Achievement: A total of 10 041 new jobs have been created. 39

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target Quarterly Target 60 % of budget 10 % of budget allocated for community upliftment community spent on upliftment & upliftment spent empowerment on upliftment & projects programmes. empowerment projects programmes. Progress this Quarter Comments/ Corrective actions Achieved: The Directorate used 33% of their R 1 850 000 budget (R 610 000) for the launch of Ie. C's, Sod Turning Events and Energy Awareness Campaigns. 40

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 6: Programmes & Projects Annual Target 4 public energy awareness campaigns conducted. Quarterly Target 1 public energy awareness campaign conducted. Progress this Quarter Achieved: Community Upliftment Directorate conducted, hosted and participated in three awareness campaign: (1) Energy Awareness on how to save energy held in Volkrust targeting 200 rural women, (2) In Limpopo and Mpumalanga Career Expo where youth were informed about career opportunities available within the energy sector, as well giving them tips on how to save energy, (3) Energy awareness in Free State. Comments/ Corrective actions 41

DEPARTMENT OF ENERGY PCE PRESENTATION ON THE 2 nd QUARTER PERFORMANCE PROGRAMME 2: ENERGY POLICY & PLANNING Mr O Aphane Deputy Director General 42

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 2: Energy Policy & Planning Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions Development of 2 indicators for: 1. electricity supply security 2. electricity EE. N/A Not achieved Due to delays in the Departmental matching & placing process, there are no personnel to execute this task. This target will be consolidated in the IRP Update and Energy Efficiency Target Monitoring System. Development of a research agenda for the expansion of gas infrastructure Produce report regarding research topics Not achieved for the expansion of gas infrastructure. This target will be consolidated in the Gas Infrastructure Plan portion of the IEP Development of a research agenda for the expansion of electricity generation, transmission & distribution infrastructure. Produce report regarding research topics for the expansion of Not achieved electricity generation, transmission & distribution infrastructure This target will be consolidated in the Transmission Development Plan and Major Distribution Infrastructure Plan portion of the IEP Development of a research agenda for EE in the N/A Electricity Sector Not achieved This target will be consolidated in the IRP Update and Energy Efficiency Target Monitoring System. 43

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 2: Energy Policy & Planning Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions Draft IEP submitted to Cabinet. IEP & revised IRP assumptions integrated Achieved Draft IEP published for public under public consultation. process. The first consultation workshop took place on the 25 and 26 September 2013 in Johannesburg at Indaba Hotel. Other provincial consultations workshops will take place during the month of October and November 2013 and all provinces will be covered. IRP & TDP incorporated as part TDP & Major Distribution Not Achieved of IEP. Infrastructure Plan report. Aligned with IEP Stakeholder consultation process. Eskom proposal to be policy adjusted. Distribution Infrastructure plan currently under development as part of IRP update. Liquid Fuels Infrastructure Roadmap incorporated as part of IEP. This forms part of the IEP Development process which is due for completion in March 2014. Draft Liquid Fuels Infrastructure Roadmap report. Not Achieved 44

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 2: Energy Policy & Planning Annual Target Energy statistic compiled & disseminated timeously (according to reporting obligations). Quarterly Target Progress this Quarter Comments/ Corrective actions Achieved 1. May and June Gas quationaire submitted to JODI. 2. May and June final oil Monthly basis: Joint Oil Data Iniative. questionaire submitted to JODI 3. Preliminary Oil questionaire for August submitted to JODI Achieved. 1. APPA Databank updated Quarterly basis: Petroleum product sale. with data up to June 2013. Fuel levies & taxes. Data 2. 2013 third quarter Prices bank (upstream oil, gas). and Taxes questionaire submited to IEA. Achieved. 1. Draft 2011 commodity flows compiled 2. 2010 energy balance undergoing approval for dissemination Developed strategy & Public consultation plans for the introductionb of completed & report new economic infrastructure as approved by the Minister. per the IEP/IRP Achieved. Stakeholder Engagement plan developed and obtained Ministerial and Cabinet approval to engage in roadshows 45

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 2: Energy Policy & Planning Annual Target Developed strategy & plans for the introduction of new economic infrastructure as per the IEP/IRP. Develop amendments to the Petroleum Products Act, Gas Act Transmission, Distribution Infrastructure Rehabilitation & Expansion Plan published after public consultation. Quarterly Target Public consultation completed on the gas infrastructure requirements for power generation & report approved by Minister. N/A Progress this Quarter Comments/ Corrective actions Achieved. Stakeholder Engagement plan developed and obtained Ministerial and Cabinet approval to engage in roadshows Achieved: Comments received from stakeholders were considered and incorporated into the draft Gas Amendment Bill. A final Stakeholder Workshop was held on the 17 September 2013 to clarify comments received. Transmission & distribution infrastructure requirements of municipalities Not Achieved incorporated into the IRP. Aligned with IEP Stakeholder consultation process. Eskom proposal to be policy adjusted. Distribution Infrastructure plan currently under development as part of IRP update. 46

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 2: Energy Policy & Planning Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions Amendments to Developed regulatory Electricity Regulation mechanisms & delivery Act & National Energy model(s) for major Regulator Act certified municipal distribution for deliberation by infrastructure expansion Parliament ISMO Bill requirements. promulgated. Published electricity price path N/A for the 20 years. Partially Achieved Instruction to resubmit to Cabinet all Bills that have been subjected to stakeholder engagement including Nedlac. Partially Achieved To be completed once the IRP update in conluded Promulgated policy for the standard offer scheme for solar water heaters. Partially Achieved Engagement of Nersa to be concluded by end of Q 3 Partially Achieved Window 3 of REIPP completed. Coal, Gas to be concluded by end of Q 4. Promulgation of the standard offer policy & rebate level for SWHs. Bidding documents N/A developed in respect of W 3 of REIPP, gas, coal baseload programmes. 47

DEPARTMENT OF ENERGY PCE PRESENTATION ON THE 2 nd QUARTER PERFORMANCE PROGRAMME 5: CLEAN ENERGY Mr O Aphane Deputy Director General 48

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 5: Clean Energy Annual Target Quarterly Target Progress this Quarter Developed energy Piloting of the baseline Partially Achieved consumption baselines for development approach. 10 municipalities. Promulgation of revised Stakeholder Cabinet-approved strategy engagement on draft & plan for improving EE. NEE Strategy document. Stakeholder consulted ECS rules developed. Completed feasibility study for the development of the Northern Cape solar park. Achieved in first quarter Consultation on the Partially achieved ECS with 10 industry companies representing the Intensive Energy Users Sector. Feasibility study report Not Achieved approved by Minister. Comments/ Corrective actions The baseline determination development approach was developed and municipalities were introduced to it in the workshop held on August 2013. Municipalities are currently submitting business plans based on this approach. The Strategy document is being finalised and the Cab Memo is being drafted for submission. Stakeholder consultation underway to resolve legal issue of selective legislation (ECS) due to targeting only key industrial customers. Consultants have been appointed for the EIA and main Feasibility Study and both studies have commenced. The original Prieska site proved to be limited in terms of potential capacity i. e. up to 450 MW therefore an alternative site in Kielder has been made available by the Municipality. Specialist studies have therefore been put on hold to save costs until there is final Agreement with Land Affairs on the use of 49 this alternative site for the project.

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 5: Clean Energy Annual Target Quarterly Target Progress this Quarter Transition to revised contracting model for new SWH installations. Proposals for supply of SWH units from local manufacturers adjudicated. 80 000 SWH units installed. Invitation for proposals & Partially achieved offer rebates for SWHs to pilot the standard offer policy for SWHs in high consumption Residential Sector. All applications Partially Achieved. 2 Pins Submission for Pins processed within the and 2 PDD were received and Letters of No Objections prescribed timelines. issued. PDDS still under review process. Letters of approval not yet issued. Submitted PINs & PDDs processed within the prescribed timelines. Promote the CDM & negotiation of the UNFCCC position. Achieved Comments/ Corrective actions Request for Information and Registration for local manufactures issued and briefing session held 28 August 2013. Assessment and evaluation of the Proposals completed and recommendations submitted for consideration. Standard Offer model is being developed. Stakeholder engagement Achieved and the other is CDM waste to energy & education on CDM Partially Achieved workshop held on 25 July 2013. methodology. Draft CDM status report and chemical sector booklet. 50

DEPARTMENT OF ENERGY PCE PRESENTATION ON THE 2 nd QUARTER PERFORMANCE PROGRAMME 1: SUB-PROGRAMME: GOVERNANCE AND COMPLIANCE Ms T Zungu Chief Operating Officer 51

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions Risk Management Progress report on Partially Achieved Implementation Plan the Implementation (including risk Plan presented to register) approved by Risk the Risk Management Committee by the & Audit Committee end of June each year. Risk Management Implementation Plan was presented to and adopted by Risk Management Committee during the meeting held on 19 September 2013. To be presented during the next Audit Committee meeting. 4 quarterly risk management reports presented to the Risk Management Committee. Risk Management Progress Report presented during Risk Management Committee held on the 19 September 2013. 1 risk management Achieved report presented to the Risk Management Committee. 52

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target 100% of senior N/A management provided with prescripts & procedures for managing conflict of interest in the Do. E (e. g gifts, declaration & outside work). 4 progress reports on anti-fraud & corruption cases presented to the Risk Management Committee, Audit Committee & Public Service Commission. Progress this Quarter N/A 1 progress report on Achieved antifraud & corruption cases presented to the Risk Management Committee, Audit Committee & Public Service Commission. Comments/ Corrective actions Target to be reported during the 4 th Quarter Anti-Fraud and Corruption Progress Report presented during Risk Management Committee held on the 19 September 2013. 53

Do. E 2 ndt Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Progress this Quarter 100% of active alleged 100% of active Achieved fraud & corruption cases alleged referred to the Do. E that fraud & corruption are responded to within cases a prescribed period of 40 referred to the Do. E days. that are responded to within a prescribed period of 40 days. Comments/ Corrective actions No cases received from NACH, Whistle Blowing Mechanism, AG, IA and other sources. 54

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target 100% of alleged fraud & 100% of alleged corruption cases fraud investigated & resolved. & corruption cases investigated & resolved. Progress this Quarter Achieved Strategic Plan (when Submit 2 nd draft of Achieved applicable) & APP tabled Strategic Plan (when in Parliament by the applicable) & APP stipulated timelines. tabled in Parliament by 31 November 2013. Comments/ Corrective actions No cases received from NACH, Whistle Blowing Mechanism, AG, IA and other sources. 1 st draft of Strat Plan and APP submitted to NT on 30 August 2013. 55

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions Strategic Plan & APP N/A operationalised through operational & business plans. N/A Target to be reported during the 4 th quarter. Service Delivery Improvement Plans developed, implemented & adhered to. Draft SDIP has been completed and circulated. Target to be reported during the 4 th quarter N/A 56

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions Performance site visits 1 performance Achieved: introduced & 4 or site visit more conducted per according to Branch Business Plan. DOE's Polokwane Regional office was visited on 27 September 2013. 4 M&E compilation reports prepared for internal approval & submitted per NT format & within 60 days of the end of each quarter to NT. The first quarter M&E compilation report completed. Achieved: 1 M&E compilation report prepared for internal approval & submitted per NT format & within 60 days of the end of each quarter to NT. The approved 1 st quarter performance reports (tables) were submitted to National Treasury on 28 August 2013. 57

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Commission 1 external Select Steering mixed-methods Committee evaluation dependent members on funding (evaluation & facilitate of energy data inaugural collection, meeting (if management & funding is dissemination in South secured). Africa). Select external evaluators (if funding is secured). Progress this Quarter Not achieved: Comments/ Corrective actions This target is unlikely to be achieved due to lack of funds. 58

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Produce 32 Branch Improvement Plans & 4 Departmental Improvement Plans & submit to EXCO for implementation monitoring. Quarterly Target Progress this Quarter Partially achieved: 8 Branch Improvement Plans & 1 Departmental Improvement Plan produced & submitted to EXCO for implementation monitoring. Comments/ Corrective actions Eight branch improvement plans were produced. The improvement plans were based on the approved 4 th quarter M&E compilation report. . The Departmental improvement plan will be produced after the branches have submitted their respective branches improvement plans. 59

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Annual Report produced by 15 September of each fiscal year Quarterly Target Progress this Quarter Achieved Annual Report for 2012/13 submitted to NT &tabled in Parliament. Comments/ Corrective actions 2012/13 Annual Report submitted to NT and tabled in Parliament on 27 September 2013. 60

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Progress this Quarter MPAT questionnaire & Key performance Achieved: supporting evidence area submitted online by coordinators requested deadline selected, & procedural roles discussed & tasks assigned. Submission for approval of scores drafted. MPAT submitted via MPAT website or other mutually agreed to means. Comments/ Corrective actions All Key Performance Area coordinators were selected and provided with the necessary guidelines and support by the M&E unit on how to complete MPAT 1. 3. 61

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions Final draft submissions 1 st draft Strategic Not Achieved: of Schedule 3 A SOEs Plan NERSA, NNR, SANEDI NNR and NERSA review Strategic Plans & APPs submitted their meetings will be held reviewed, analysed & submissions strategic plans on the during October 2013 and submitted to Minister of Schedule 3 A 30 th August 2013. comments sent to for approval. SOEs entities by the 23 reviewed, SANEDI review meeting October 2013. analysed & was held on the 04 th review notes sent October 2013. to SOEs by 30 September 2013. 62

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions NERSA electricity, N/A piped-gas & petroleum pipelines levies & NNR authorisation fees submitted to the Minister for approval. N/A Target to be reported during the 4 th Quarter Schedule 2 SOEs N/A Shareholder Compacts & Corporate Plans with budgets reviewed, analysed & submitted to the Minister for approval. N/A Target to be reported during the 4 th Quarter 63

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target SOE quarterly SOE 1 st quarter performance reports performance reviewed, analysed & reports for submission drafted for the 2013/14 Ministerial approval financial within 30 days of year reviewed, receipt of reports. analysed & Ministerial submission drafted by 31 August 2013. Progress this Quarter Comments/ Corrective actions Partially Achieved: The reports are expected to be ready for the Entities submitted their Minister's approval by first quarter reports on the 30 October 2013. the 31 st July expect for NNR that submitted on 01 st August 2013. Review meetings were held for all the entities expect for NERSA meeting could not be held due to nonavailability of either NERSA and DOE officials. 64

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Cabinet Memoranda N/A for filling SOE board vacancies drafted & submitted for Ministerial & Cabinet approval within 2 months of vacancy arising. 2 SOE board N/A performance assessments submitted to the Minister Progress this Quarter Comments/ Corrective actions N/A Target to be reported during the 3 rd quarter. 65

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions Develop policy guidelines & templates for populating SOPs. Preliminary draft Partially Achieved to be evaluated. The guideline awaits the final assessment by Senior Managers before approval. Review, amend (where necessary) & submit standard operating procedures for approval. Consolidate the comments & finalise SOP booklet. The total number of SOP's reported is 178 of which 138 are in operations and only 51 are either listed as not existing or are on the draft stage. The process of finalising the SOP booklet is still on-going with outstanding Branches. Partially Achieved 66

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target 4 quarterly performance reports submitted to the Audit Committee. Quarterly Target Progress this Quarter 1 performance Not Achieved report submitted to the Audit Committee. Comments/ Corrective actions The Reporting Calendar has been approved during the month of September by the DG's office. As a result, the Unit is now in the process of monitoring. Reporting on Monthly basis and it will consolidated quarterly report for Audit Committee. 67

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target 64 bilateral intergovernmental engagements/visits hosted in the Energy Sector, excluding Africa (inbound & outbound). Quarterly Target Progress this Quarter Achieved 16 bilateral intergovernmental engagements/visits hosted in the Energy Sector, excluding Africa (inbound & outbound). Comments/ Corrective actions 16 Inbound and 7 Outbound. 68

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target 16 bilateral intergovernmental engagements/visits hosted in the Energy Sector with African states (inbound & outbound). Quarterly Target Progress this Quarter Achieved 4 bilateral intergovernmental engagements/visits hosted in the Energy Sector with African states (inbound & outbound). Comments/ Corrective actions 1. Kenya: 19 -20 August 2013 2. DRC: 22 -23 September 2013. 3. Malawi: 27 -30 August 2013. 4. Sao Tome and Principe: 28 -29 August 2013. 5. SA/Ghana: 19 September. 7. C 3 S Steering Committee Meeting: 20 September 2013. 8. Senegal; 26 -27 September 2013. 69

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target 12 multilateral engagements/visits hosted in the Energy Sector. Quarterly Target Progress this Quarter Achieved 3 multilateral engagements/visits hosted in the Energy Sector Comments/ Corrective actions 1. Botswana: SADC Renewable Energy Efficiency. 2. Angola: Signing of the MOU on the Establishment of a Tripartite Mechanism on Dialogue and Coorperation between SA, Angola and the DRC. 3. Vienna: IAEA General Conference 2013 70

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions 5 progress reports on 1 progress report Not Achieved the implementation of on the international Energy Implementation of Sector agreements. international Energy Sector agreements. Draft progress report not finalised. 2 structured SADC intergovernmental energy forums participated in. Briefing: World Bank SADC Region 1 structured SADC Achieved intergovernmental energy forum participated in. 71

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Governance & Compliance Annual Target Quarterly Target Progress this Quarter 4 SADC prioritised 1 SADC prioritised Achieved Energy Sector projects Energy Sector participated in/ project contributed to. participated in/ contributed to. Not Achieved 1 strategy progress Conduct report submitted to stakeholder the Minister. consultation to secure input in the draft Implementation Plan. Comments/ Corrective actions Botswana: SADC Renewable Energy Efficiency Submission drafted after the second round of consultation with government departments and is waiting for Ministerial approval. The submission is currently in Minister's office. The SOEs workshop preparations has commenced to secure input in the draft Implementation Plan. 72

DEPARTMENT OF ENERGY PPC PRESENTATION ON THE 2 nd QUARTER PERFORMANCE PROGRAMME 1 : SUB PROGRAMME: CORPORATE SERVICES Mr GM Mnguni Deputy Director General 73

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Finalisation of phase 3 Quarterly progress of the HR Plan. reports on the implementation of phase 3 of the HR Plan submitted. Progress this Quarter Comments/ Corrective actions Partially achieved: The process has Delayed prompted the total implementation of review of the HR Plan revised structure which is already and matching and finalised and is en- placing of staff. route for approval. Finalisation of the No Target set for review of phase 2 of the quarter the HR Plan’s progress. 74

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Progress this Quarter 4 HR policies reviewed/ updated in line with broader public services prescripts. 1 HR policy reviewed/ updated in line with broader public services prescripts. 8 workshops conducted at head office & regional offices on 4 policies. Comments/ Corrective actions Achieved: Three(3) policies were reviewed and adopted at the DBC during this quarter. 2 workshops Achieved: Eight conducted at head workshops were office & regional conducted in this offices on 4 policies. quarter 6 in Head Office and two (2) in regional offices namely in Western Cape and Limpopo. 75

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Finalised support Compile job services organisational descriptions and structure. conduct job evaluations for support services organisational structure Progress this Quarter Comments/ Corrective actions Partially achieved : Consultation with the Preliminary Chief Directorate investigation Communications is completed. still outstanding but has been prioritised 76

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Implementation of all the identified organisational culture survey recommendations for Do. E for 2013/14 as per the Implementation Plan. Quarterly Target Progress this Quarter Comments/ Corrective actions Commence with Achieved: A facilitation & proposal for the coordination of the implementation of implementation phase 3 of the of culture survey recommendations as per the were received from Implementation the service provider. Plan. Supply Chain Procedures currently in process. 77

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Progress this Quarter Vacancy rate reduced Vacancy rate to 10%. reduced to 13%. Achieved: The average vacancy rate for the Quarter was 8. 33% which is still below 10% 100% of training programmes implemented. Comments/ Corrective actions Achieved. 86 officials attended 20 different training programmes for the quarter 40% of training programmes implemented. 78

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Conducted 4 DBC & 4 1 DBC & 1 multilateral meetings multilateral in line with the meeting held. GPSSBC rules for chambers. Training/awareness sessions on labour relation conducted. Progress this Quarter Achieved Comments/ Corrective actions 4 Achieved. training/awareness Workshops in Head sessions on labour Office as well as relations regional offices conducted were conducted. 79

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Turnaround time for finalisation of grievance & misconduct cases improved by 30 & 45 days, respectively. Quarterly Target Progress this Quarter Turnaround time Partially Achieved: for Four(4) grievances finalisation of were received in grievance this quarter of & misconduct caseswhich 3 are improved by 30 & completed in less 45 than 35 days the days, respectively. other one is a new case which is only active for 6 days. Three Misconduct cases were received in this quarter of which 2 cases is completed in 45 days and less. Comments/ Corrective actions There is only one misconduct case outstanding in which case the department awaits the external investigators final report. 80

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target 4 approved wellness programmes implemented. Quarterly Target 1 approved wellness programme implemented. 50% of performance 50% compliance agreements submitted. with the submission of performance agreements. Progress this Quarter Comments/ Corrective actions Achieved: One None wellness event was hosted for the quarter Achieved: 81% of all Submission containing performance proposed corrective agreements were action on route to received Director-General 81

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target 1, 8% of employment No target set. of people with disabilities. Progress this Quarter Figure for the quarter for disability 1. 27% 47% of women in No target set. middle management. 42, 5% of women in SMS positions. No target set. Comments/ Corrective actions Only to be measured at the end of the year. Current figure is 42. 5% 82

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target 12 of MIS reports submitted on EE. 1 Do. L report submitted on EE. Quarterly Target Progress this Quarter Comments/ Corrective actions Publish 3 MIS reports. Achieved: Three (3) None MIS Reports are published on the intranet, one for every month in the quarter. 1 EE analysis report Partially Achieved. Due date is 1/10/2013 to Do. L(for 1 Submission for and will be reported on in October 2013) sign off of the next quarter because reports was on-line capturing will forwarded to the be finalsed in October DG for approval. 2013. 50% of employees in 25% of employees the Do. E trained on the in the Do. E trained Records Management on the Records Policy & Procedures. Management Policy & Procedures. Achieved. 27% of employees in the Do. E trained on the Records Management Policy & Procedures. 83

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions 29 serviceable vehicles 29 serviceable maintained. vehicles maintained. Achieved: 29 serviceable vehicles maintained throughout the quarter 95% of new candidates screened as per the MISS. 60 vetting investigations conducted as per the MISS. No target set. 15 vetting investigations conducted as per the MISS. Achieved. 15 vetting investigations conducted during quarter 2. Target is set to be measured at the end of the year. 84

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Progress this Quarter 9 physical security audits conducted as per the MISS. 2 physical security Achieved: Seven audits conducted Security Audits as per the MISS. were conducted during this quarter. Approved Do. E communication strategy (including Action Plan). Comments/ Corrective actions Approved Do. E Achieved: Review communication of So. Ps; Business strategy (including Plan Action Plan). implementation; Utilising the 201114 Communication Strategy presented to MANCO in 2011. 85

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target 20 PPPs. Quarterly Target Progress this Quarter 5 PPPs conducted. Achieved: (5) PPPs conducted, ie. (1) KZN visit to the SA Sugar Association and engagement with community; (2) Sod turning ceremony for the Qamata IEC and Public Engagement; (3) Launch of Ulundi Ie. C and electricity switch-on in Ulundi; (4) Energy Women's Day Round Table at CEF; (5)Nelspruit Opportunities for Women in the energy Sector. Comments/ Corrective actions 86

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target 4 external 1 external communication campaigns conducted. campaign conducted. Progress this Quarter Comments/ Corrective actions Achieved: (10) Communication campaigns conducted. (1) IEP Stakeholder consultation Workshop; (2) Petroleum Products Act Awareness Workshop; (3) BPSA signing ceremony; (4) Mandela Day Celebration; (5) Launch of the Ulwazi Centre; (6) Gas Amendment Bill Stakeholder consultation; (7) SA Germany Partnership meeting; (9) Energy Post Graduate Conference; (10)NIASA Conference; 87

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Progress this Quarter 50 weekly media monitoring reports. 13 weekly media Achieved. 13 monitoring reports weekly media reports for the quarter Daily response to media enquiries (24 hrs electronic media; 48 hrs print media). Comments/ Corrective actions Daily response to Achieved. 63 daily media enquiries response to media (24 hrs electronic enquiries. media; 48 hrs print media). 36 media statements 9 media Achieved : Target issued by the Do. E. statements over achieved due issued by the Do. E. to Do. E needs of 12 media statements and 13 media invites issued 88

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions 8 structured (face to 2 structured (face- Achieved. 12 face) media Media interviews interactions conducted. 8 internal network sessions conducted. 2 internal network Not Achieved sessions conducted. 4 internal marketing campaigns implemented. 1 internal marketing campaign implemented. Budget Constraints Achieved. 1 internal campaign - SARS Return Season. 89

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions 50 updates conducted 13 updates Achieved : Weekly on the events calendar. conducted on the report on all the events calendar. updates 13 publications developed. 4 publications developed. Not Achieved 50 website updates made. 13 website updates Achieved Target made exceeded due to Do. E needs - 225 updates made 50 intranet updates made. Budget Constratints 13 intranet updates Achieved Target made. exceeded due to Do. E needs – 209 updates made 90

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Progress this Quarter 1 updated stakeholder 1 updated database. stakeholder database. Achieved 4 stakeholder engagements conducted 1 stakeholder engagement conducted Achieved : 1 stakeholder engagement conducted 8 cluster sessions attended as per the GCIS schedule. Comments/ Corrective actions 2 cluster sessions Achieved. 2 cluster attended as per sessions the GCIS schedule. attended as per the GCIS schedule. 91

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Progress this Quarter Implement Resource Implement Centre Strategy & Plan. Resource Centre Strategy & Plan. Achieved. Implementation of the Resource Centre strategy and plan is on-going. 100% of the following requests received processed within prescribed or agreed timeframes: Comments/ Corrective actions Achieved - 100% of requests received processed within agreed or prescribed timeframes 100% of the following requests received processed within prescribed or agreed timeframes: 92

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Draft & vet legislation including subordinate legislation administered by the Do. E; Quarterly Target Draft & vet legislation including subordinate legislation administered by the Do. E; Progress this Quarter Comments/ Corrective actions Achieved. Draft Electricity Regulation Amendment Bill and National Energy Regulator Amendment Bill precertified with comments; submitted to line function for Cabinet approval for tabling in Parliament. . Gas Amendment Bill currently with line function and being consulted with NEDLAC. 93

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Conti Annual Target Draft & vet legislation including subordinate legislation administered by the Do. E; Quarterly Target Draft & vet legislation including subordinate legislation administered by the Do. E; Progress this Quarter Comments/ Corrective actions Achieved. NNR Bill pending further input from Defence and to be aligned with INIR recommendations. Draft Notice of Commencement of Blending Regulations finalised. 94

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Comply with legal processes for conclusion of international agreements as set out in Chapter 5 of the 2006 Manual on Executive Acts of the President of the RSA; Quarterly Target Progress this Quarter Comply with legal Achieved. All processes for International conclusion agreements dealt of international with in accordance agreements as set with prescribed out process for in Chapter 5 of the conclusion. 2006 Manual on Executive Acts of the President of the RSA; Comments/ Corrective actions 15 international agreements/ Declaration of Intents received. (Two finalised, two on route to Minister for President's Minute and 11 awaiting further instructions from line function) 95

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Vet contracts entered Vet contracts into by the Do. E & entered advise on implications; into by the Do. E & advise on implications; Research & draft legal opinions; Progress this Quarter Comments/ Corrective actions Achieved. 15 contracts received and dealt with at legal services Achieved. 12 legal opinions received 10 finalised , 2 awaiting further information and instructions 96

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Process appeals to the Minister for decision; Quarterly Target Progress this Quarter Comments/ Corrective actions Process appeals to Partially Achieved. the Minister for 35 appeals with decision; controller (for response and record); 17 Finalised by Legal Services in this quarter (5 still en-route to Minister), 25 New Appeals received in this quarter. 8 with legal services for finalisation. 97

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Progress this Quarter Manage all litigation Manage all for & against the Do. E/ litigation Minister; & for & against the Do. E/ Minister; & Ensure that PAJA & PAIA are complied with. Achieved. 4 Litigation matters received in this quarter and total of 40 litigation files pending. All matters being attended to in terms of Court Rules through Office of the State Attorney. Ensure that PAJA & Achieved. 25 PAIA are complied Requests received with. , 15 Finalised and 10 pending finalisation by DIO, all still within prescribed timeframe in terms of PAIA. Comments/ Corrective actions 98

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target 95% of WAN availability achieved. Quarterly Target Progress this Quarter 95% of WAN availability. Achieved: WAN availability exceeded 98% 95% of server availability Comments/ Corrective actions Achieved: Server availability exceeded 98% 95% of server availability achieved. Develop 1 petroleum Develop & display 1 Achieved. The licensing lodgment licensing Scheduled module. lodgement Inspection Plan and module as per Site Inspection project Proof modules have schedule. been developed 99

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Corporate Services Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions Maintain 1 data line at Install data lines at Partially Achieved. Since resumption of each of the 9 regional 2 Data line the VPN project, data offices. regional offices. maintained at site lines have been where installation installed at 3 regional has been completed. offices. Data lines to be installed by 31. 12. 2013 100

DEPARTMENT OF ENERGY PCE PRESENTATION ON THE 2 nd. QUARTER PERFORMANCE PROGRAMME 1: SUB-PROGRAMME: FINANCIAL MANAGEMENT SERVICES Ms Y Chetty Chief Financial Officer 101

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Financial Management Services Annual Target 4 budget submissions submitted to NT. Quarterly Target 2 budget submissions submitted to NT. Progress this Quarter Achieved Comments/ Corrective actions The main challenge experienced in both the MTEF and AENE processes in the current financial year was the submission of appropriate inputs from branches on time. This had to be followed up vigorously to achieve the deadline date. 102

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Financial Management Services Annual Target 12 IYM reports submitted to NT. Quarterly Target Progress this Quarter Achieved 3 IYM reports submitted to NT. 12 (monthly) budget 3 (monthly) budget Achieved expenditure statements sent to branches. 100% of revenue Achieved collected surrendered collected to NT. surrendered to NT. Comments/ Corrective actions N/A Revenue payments to National Revenue Fund account were processed on 26 July 2013, 30 August 2013 and 26 September 2013. 103

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Financial Management Services Annual Target Quarterly Target Progress this Quarter Achieved: 12 debtors ageanalysis compiled. 3 debtors ageanalysis reports compiled. 12 (monthly) bank reconciliations completed & submitted to NT. 3 (monthly) bank Achieved: reconciliations completed & submitted to NT. 12 (monthly) asset reconciliations completed & submitted to NT. 3 asset (monthly) reconciliations performed Achieved Comments/ Corrective actions Three Age Analysis report approved on the 08 July 2013, 06 August 2013 and 04 October 2013. Three Bank Recons were submitted to NT on the 06 August 2013, 09 September 2013 & 04 October 2013 Three Assets Recons were performed and signed off on 05 August 2013, 06 September 2013 and 04 October 2013) 104

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Financial Management Services Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions 16 asset verifications 4 asset verifications Achieved conducted. Verifications conducted in Durban (16 to 18 September 2013), PE (02 -04 September 2013 ), Welkom (09 -10 September 2013) and Klerksdorp(11 -12 September 2013) 100% of approved transfers processed 100% of approved Achieved transfers processed. 105

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Financial Management Services Annual Target Quarterly Target Progress this Quarter 100% of approved Achieved invoices paid within 30 invoices paid within days of receipt. 30 days of receipt. Comments/ Corrective actions 100% of approved invoices paid within 30 days of receipt 12 reports submitted 3 (monthly) reports Achieved to NT on payments of approved invoices within 30 days of receipt submitted to NT by the 7 th of each month. July report delivered on 7 August 2013, August report delivered on 5 September 2013, September report delivered on 7 October 2013 106

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Financial Management Services Annual Target Quarterly Target 12 compliance reports 3 compliance submitted to NT. reports submitted to NT. 4 interim (quarterly) financial statements submitted to NT. Progress this Quarter Achieved 1 interim Achieved (quarterly) financial statement submitted to NT. Comments/ Corrective actions Compliance Certificate for July and August submitted on 2013/08/15; 2013/09/18 respectively. Compliance Certificate for September to be submitted by 2013/10/18 due date. IFS for 30 June 2013 submitted by 30 July 2013. IFS for 30 September 2013 to be submitted by 30 October 2013 due date. 107

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Financial Management Services Annual Target Quarterly Target Progress this Quarter Comments/ Corrective actions 2 AFSs submitted to NT 1 draft AFS Achieved & AGSA. submitted to NT & AGSA by 31 May. Submitted copy of Audited AFS, and AG audit report and confirmation of review of template by AG 100% alignment of SCM policies to NT SCM prescripts. Supply chain management policy approved on 30 August 2013 SCM policy aligned Achieved as per instruction notes issued by NT, where applicable. 108

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Financial Management Services Annual Target Quarterly Target Progress this Quarter 100% compliance to the SCM checklist Comments/ Corrective actions 100% compliance Achieved to SCM policies & prescripts, i. e. orders generated only after SCM checklist criteria are met. 2 awareness & training 1 awareness & Achieved sessions conducted on training SCM matters. session on SCM matters conducted. SCM Compliance is checked prior to the generating of the purchase orders 12 (monthly) reviews of commitment & accrual register conducted N/A 3 (monthly) reviews Achieved of commitment & accrual register conducted. Training was conducted on 11 September 2013 109

Do. E 2 nd Qtr. 2013/14 Performance Information Report Programme 1: Sub-programme: Financial Management Services Annual Target 1 procurement plan submitted to NT. Quarterly Target N/A Progress this Quarter N/A 1 update performed to Invitation of Achieved the supplier database. suppliers to register on the supplier database by 30 September 2013. 4 warehouse inventory 1 warehouse Achieved counts & inventory count & reconciliations reconciliation performed. Comments/ Corrective actions N/A N/A 110

DEPARTMENT OF ENERGY PCE PRESENTATION ON THE 2 nd. QUARTER FINANCIAL PERFORMANCE Presented by: Office the CFO 111

PRESENTATION LAYOUT q 2 nd Quarter Financial Performance: ü Overview per Economic Classification ü Top 5 Major Cost Drivers (Goods & Services) ü Overview per Programme ü Transfer Payment Schedule for 2013/14 112

2013/14: 2 nd QUARTER FINANCIAL PERFORMANCE Overview – per Economic Classification {A} 2013/14 Goods & Services Transfers & Subsidies Payments for Capital Assets Q 2 Budget R’ 000 Total Energy Compensation of Employees Adjusted Budget Vote 29: Energy {B} 2013/14 R’ 000 {C} 2013/14 {D} {E} 2013/14 Adjusted Q 2 Q 2 B. VARIANC VARIAN Actual Expended E CE R’ 000 % % 6, 50 3, 712, 2, 838, 873, 3, 244 069 186 883 23. 54% 24 123, 112, 11, 523 259 9. 10% 2, 562 782 64, 34, 21 98, 778 122 34. 50% 7, 745 900 6, 03 3, 486, 2, 657, 828, 4, 264 078 873 205 23. 76% 3, 012 297 8. 98% 8, 673 309 43. 64% 46. 39% 29. 75% 44. 05% 34. 73% 113

2 nd QUARTER FINANCIAL PERFORMANCE FOR 2013/14 • The Department’s 2013/14 main appropriation of R 6. 598 billion has been reduced by R 94. 928 million to an adjusted total of R 6. 503 billion • Total expenditure for quarter two was planned or estimated at R 3. 7 billion and the actual amount spent was a total R 2. 8 billion (76. 46%). • The budget variance of R 873. 9 million (23. 54%) is mainly in the following areas: Compensation of employees: • R 11. 26 million (9. 1%) under budget mainly attributable to vacancies Outstanding Expenditure Ø Filling of vacancies –mainly the additional vacancies following the prioritization of positions by the DODC and the final approval by the Finance Committee; Ø Payments for unutilized leave from the 2012 leave cycle. Goods & services: • Projected expenditure in the 2 nd quarter, represented by actual cash withdrawn from the National Revenue Fund, was expected to amount to a total of R 98. 9 million. 114

2 nd QUARTER FINANCIAL PERFORMANCE FOR 2013/14 Goods and services: • However, actual expenditure at the close of Q 2 was a total of R 64. 78 million resulting in a variance of R 34. 12 million (34. 5%) • The unspent funds have mainly been attributable to projects, which at the beginning of the financial year were projected to have been underway as at the 2 nd quarter. These projects could not commence due to delays in procurement processes and or delays in initiating the procurement process (mainly due to implementation time changes). Transfer payments: • R 828. 2 million (23. 76%) unspent mainly attributable to the performance within the EEDSM-Eskom project which contributed R 767. 9 million or (93%) to this total variance • The spending in the EEDSM-Eskom project was affected by the challenges experienced in finalizing the 2013/14 implementation contract with Eskom, the implementing agent. • All challenges have since been resolved and transfers to Eskom are to commence in the following periods. 115

MAJOR COST DRIVERS (Top 5): GOODS AND SERVICES COST DRIVERS - GOODS AND SERVICES Rand thousand Travel and subsistence Operating leases Consultants and professional services: Business and advisory services Computer services Communication Total 2013/14 2 nd Quarter R'000 • • 23, 886 • 9, 173 5, 106 4, 852 • 3, 220 46, 237 • • Total expenditure for Goods & services is R 64. 78 m The top 5 costs accounts for 71% of the total spend Spending on travel and subsistence constituted 37% of the total Departments goods and services expenditure, 50% being accounted by the Administration programme Operating leases is mainly for office accommodation lease rentals for head office and all regional offices 57% of total computer services went to SITA for software licenses Communication spend is dominated by mobile & 3 G fees 116

2013/14: 2 nd QUARTER FINANCIAL PERFORMANCE per Programme {A} 13/14 Adjusted {B} Budget R’ 000 Q 2 Vote 29: Energy TOTAL: Administration Energy Policy & Planning Energy Regulation Electrification & Energy Programmes Management Nuclear Energy & Regulation Clean Energy {C} {D} {E} 13/14 Q 2 Q 2 Adjusted B. VARIAN Expende Actual CE CE d R’ 000 % % 6, 5 3, 712, 2, 838, 87 03, 244 069 186 3, 883 23. 54% 43. 64% 21 100, 99, 9, 628 771 372 1, 399 1. 39% 344 1. 69% 4 20, 19, 7, 201 297 953 4 23, 10, 1 3, 315 914 660 3, 254 55. 42% 3, 97 2, 064, 2, 003, 8, 028 675 883 60, 792 2. 94% 70 634, 620, 1 8, 798 037 652 3, 385 2. 11% 78 1, 506, 868, 83, 274 375 666 4, 709 90. 37% 45. 25% 42. 27% 24. 61% 50. 37% 87. 56% 117 5. 55%

Programme 1: Administration Vote 29: Energy Total {A} {B} {C} {D} {E} 2013/14 2013/14 Adjusted Original YTD YTD B. VARIANC VARIAN Budget Actual Expended E CE R’ 000 % % 2 100, 9 1, 19, 628 771 9, 372 399 1. 39% 45. 25% Compensation of employees 1 57, 5 4, 236 7. 35% 47. 28% 12, 947 638 3, 402 39, 4 Goods and Services 97, 932 762 2, 839 -3, 077 -7. 74% 43. 74% 127 61 32. 45% 35. 67% Transfers and subsidies 356 188 • Compensation of employees: Variance is mainly due to vacancies. The Department, is currently doing all that is possible to fast track the filling of vacancies. The Department is also in discussions with the DPSA regarding some positions brought about by the new structure, 3, 004 179 5. 62% 35. 79% Payments for capital 3, e. g. the financial accounting & reporting position in the CFO branch. assets 8, 393 183 • Goods and services: Mainly affected by the additional resources required in the Minister’s office, following the announced changes in that office. This variance is however off-set by the unspent total in compensation of employees. 118

Programme 2: Energy Policy and Planning Vote 29: Energy Total {A} {B} {C} {D} {E} 2013/14 2013/14 Adjusted Original YTD YTD B. VARIANC VARIAN Budget Actual Expended E CE R’ 000 % % 20, 1 47, 201 297 9, 953 344 1. 69% 42. 27% Compensation of employees 16, 1 2, 455 14. 66% 46. 65% 30, 629 743 4, 288 3, Goods and Services 16, 572 554 5, 657 -2, 103 -59. 17% 34. 14% 8 -8 0. 00% Transfers and 0. 00% subsidies - - • The over spend in Goods and services is attributable to the number of IEP stakeholder engagement workshops which were undertaken. This variance is off-set by the under- - 0. 00% Payments for capital 0. 00% spending in compensation of employees. assets - - 119

Programme 3: Energy Regulation Vote 29: Energy Total {A} {B} {C} {D} {E} 2013/14 2013/14 Adjusted Original YTD YTD B. VARIANC VARIAN Expende Budget Actual E CE d R’ 000 % % 23, 1 13, 43, 315 914 0, 660 254 55. 42% 24. 61% 12, 2, 804 22. 84% 47. 20% 20, 072 278 9, 474 11, 10, 503 90. 26% 4. 87% Goods and Services 23, 243 636 1, 133 Transfers and 53 -53 0. 00% subsidies - - Payments for capital • Compensation of employees: Variance is mainly the result of vacancies following the matching - - 0. 00% assets - - Compensation of employees and placing process • Goods & services: The process of appointing a service provider to undertake the fuel specification testing project was delayed, this project is, however, now ready to commence. 120

Prog. 4: Electrification & Energy Programmes Management Vote 29: Energy Total {A} {B} {C} {D} {E} 2013/14 2013/14 Adjusted Original YTD YTD B. VARIANC VARIAN Expende Budget Actual E CE d R’ 000 % % 3, 2, 06 2, 00 60, 978, 028 4, 675 3, 883 792 2. 94% 50. 37% Compensation of employees 2 23, 1, 43. 17% 4. 54% 53, 660 4, 270 167 103 30. 61% 1 9, 4, 31. 51% 169 045 Goods and Services 29, 095 3, 214 1, 971, 55, 2. 74% 50. 62% 518 Transfers and 3, 8 2, 02 547 95, 023 7, 065 • subsidies Compensation of employees: Variance due to vacancies, the recruitment process is being finalized Payments for capital • assets Goods and services: The reported saving is earmarked for electrification switch-on events and 250 126 - 126 0. 00% community outreach campaigns scheduled for later, due to the availability of the President, Minister and Deputy Minister. • Transfer payments: The variance is mainly attributable to the performance of the Non-grid electrification project, which is R 33. 3 million behind in spending. The delay in the finalization of service providers’ contracts contributed to the variance. The balance of the variance is due to the misalignment between drawings schedules, which will be corrected in November. 121

Programme 5: Nuclear Energy and Regulation {A} 2013/14 Vote 29: Energy Total {B} {C} {D} {E} 2013/14 2013/14 Adjusted Original YTD YTD B. VARIANC VARIAN Budget Actual Expended E CE R’ 000 % % 7 634, 62 13, 08, 798 037 0, 652 385 2. 11% 87. 56% 1 6, 1, 309 20. 54% 43. 02% 1, 772 373 5, 064 2 16, 12, 349 74. 56% 18. 23% Goods and Services 3, 107 562 4, 213 61 1, 375 - -0. 04% 90. 72% Transfers and 67 611, subsidies and services: Variance is due to delayed projects, i. e. 273 nuclear awareness 3, 919 102 • Goods the Payments for capital campaigns, study on the cost of nuclear power and advisory services on the financing options, models and solutions for the new nuclear build programme. The delay was caused by the - - 0. 00% assets - - 0. 00% Compensation of employees necessary approvals required and delays associated with procurement processes. 122

Programme 6: Clean Energy {A} 2013/14 Vote 29: Energy Total {B} {C} {D} {E} 2013/14 2013/14 Adjusted Original YTD YTD B. VARIANC VARIAN Budget Actual Expended E CE R’ 000 % % 1, 5 868, 8 784, 06, 274 375 3, 666 709 90. 37% 5. 55% 1 6, 3, 482 480 7, 128 -648 -10. 00% 52. 87% 2 14, 12, 405 87. 53% Goods and Services 7, 796 172 1, 767 6. 36% Transfers and 1, 46 847, 772, 960 91. 18% subsidies 4, 966 723 4, 763 5. 10% Payments for capital The planned Clean energy/energy efficiency awareness campaigns • Goods and services: could 8 -8 0. 00% assets not commence as planned due to conflicting engagements, resulting in the above 30 - 0. 00% Compensation of employees variance. The saving from this project, which cannot be utilized, will be redirected to other priorities. • Transfers and subsidies: The reported variance, R 772. 96 million, is mainly as a result of the spending in the EEDSM-Eskom programme which reported a budget under spending of R 767. 9 million. Transfers to Eskom were affected by the delayed finalization of the implementation contract. A total of R 5. 06 million was withheld from 12 municipalities due to them failing to comply with the DORA requirements. 123

2 nd QUARTER TRANSFER PAYMENT SCHEDULE FOR 2013/14 Programme Projects & Entities Programme EEDSM - Municipalities 6 {A} 2013/14 Adjusted Budget R’ 000 180, 722 EEDSM – Eskom 1, 149, 900 SANEDI 134, 344 Programme INEP - Municipalities 4 1, 634, 772 INEP - Eskom 2, 141, 027 INEP – Non-grid 119, 224 Dept Agencies - gifts - Programme NNR 5 NECSA 592, 182 IAEA- Int. fees 48, 360 Waste Disposal Ins 13, 577 19, 800 {B} {C} {D} {E} 2013/14 YTD YTD Budget Actual Variance R’ 000 % 12, 65 7, 59 5, 06 40. 00% 1 1 0 767, 90 767, 90 100. 00% 0 - 0 67, 17 0. 00% 2 2 - 855, 40 833, 01 22, 392. 62% 9 4 5 1, 126, 95 0. 00% 6 6 - 44, 70 11, 43 33, 26 74. 42% 0 5 5 10 0. 00% - 4 104 36, 84 0. 00% - 8 8 562, 57 0. 00% 2 2 - 11, 95 0. 00% - 5 11, 955 11, 68 100. 00% 2 - 2 124

2 nd QUARTER TRANSFER PAYMENT SCHEDULE FOR 2013/14 YTD, the transfer payments reflected a budget under spend of R 828. 2 million (23. 76%) mainly due to the following: • EEDSM –Eskom: -R 767. 9 (100%) not transferred to Eskom due to delays in finalizing the implementation contract. • INEP Non-grid: -R 33. 27 million (74. 4%) remained unspent due to delays with the extension of contracts. • NRAWDI: -R 11. 68 million (100%) not transferred due to the delay in establishing the institute’s board. The variance reflected under the INEP-Municipalities project is due to the difference between the Drawings schedule and the schedule being used by INEP. The variance in Programme 5, Nuclear Energy, is as a result of the IAEA payment from the previous financial year which had to be paid. This will be reimbursed by savings. 125

Thank You Ke ya leboga Ke a leboha Ngiyabonga Ndiyabulela Ndi khou livhuha Ke a leboga Ngiyathokoza Inkomu Dankie 126