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PORTFOLIO COMMITTEE ON MINERALS AND ENERGY NATIONAL ENERGY BILL 30 JULY 2008

PORTFOLIO COMMITTEE ON MINERALS AND ENERGY NATIONAL ENERGY BILL 30 JULY 2008. STRUCTURE OF THE PRESENTATION. The presentation is structured as follows- Background Governance Transitional Arrangements Planning Security of Supply. 2. BACKGROUND. White Paper on Energy Policy

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PORTFOLIO COMMITTEE ON MINERALS AND ENERGY NATIONAL ENERGY BILL 30 JULY 2008

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  1. PORTFOLIO COMMITTEE ON MINERALS AND ENERGYNATIONAL ENERGY BILL30 JULY 2008

  2. STRUCTURE OF THE PRESENTATION • The presentation is structured as follows- • Background • Governance • Transitional Arrangements • Planning • Security of Supply 2

  3. BACKGROUND • White Paper on Energy Policy • Energy Security Master Plan for Electricity (December 2007) • National Response Plan • National Electricity Response Team (NERT) • Cabinet Lekgotla (July 2008)

  4. GOVERNANCE • Potential duplication of roles • The collation and availability of Information • Provision overly prescriptive • functions of established bodies and the Minister • considerations in developing policies • Internal governance

  5. TRANSITIONAL ARRANGEMENTS • Interim arrangements while bodies are being established • plans to be complied with • licences

  6. PLANNING • Annual vs. regular publication of plan • Time horizon • Peremptory nature of issues to be considered

  7. SECURITY OF SUPPLY • Primary Energy • Holding of strategic energy minerals • Prioritize resources for energy production • Reserve stocks i.e. coal and gas

  8. SECURITY OF SUPPLY • Phases of National Recovery Programme • System stability phase • Power rationing phase • Power conservation phase

  9. SECURITY OF SUPPLY • Power Conservation Programme • Sustainable reduction in energy consumption • Continued stability of the power system • Allow electricity load growth • Demand-side Management 9

  10. SECURITY OF SUPPLY • The key elements of the PCP are - • Baseline consumption • Energy allocations • Penalty & Incentive Scheme • Termination, refusal and reduction of electrical supply 10

  11. SECURITY OF SUPPLY • Legislative framework • Varying opinions • Clarification of legislation regarding security of supply 11

  12. SECURITY OF SUPPLY • It is proposed that the following elements of the PCP be catered for in the Energy Bill, namely- • National and Sector Savings Targets • Penalty & Incentive Scheme • Termination, refusal and reduction of electricity supply • Access to electricity supply • Addressing non-technical losses (i.e. tampering with meters) 12

  13. SECURITY OF SUPPLY • Non-technical losses (i.e. tampering with meters) • The non-technical losses relates to tampering, illegal connections and fraud • Non-technical losses amounts to R1.2b.

  14. Thank you Questions?

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