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Annual Performance Plan 2014/15

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Annual Performance Plan 2014/15 ANNUAL PERFORMANCE PLAN 2014/15 OFFICIAL SIGN-OFF It is hereby certified that this Annual Performance Plan: • Was developed by the management of the Department of Energy under the guidance of Minister Dikobe Ben Martins (MP); • Was prepared in line with the revised Strategic Plan of the Department of Energy for the fiscal years 2011/12 to 2015/16; and • Accurately reflects the performance targets which the Department of Energy will endeavour to achieve given the resources made available in the budget for the 2014/15 fiscal year. MS THANDEKA ZUNGU MS NELISIWE MAGUBANE DEPUTY DIRECTOR-GENERAL: DIRECTOR-GENERAL: ENERGY GOVERNANCE AND COMPLIANCE ACCOUNTING OFFICER MS YVONNE CHETTY HON. DIKOBE BEN MARTINS (MP) CHIEF FINANCIAL OFFICER MINISTER OF ENERGY EXECUTIVE AUTHORITY DEPARTMENT OF ENERGY ANNUAL PERFORMANCE PLAN 2014/15 1 TABLE OF CONTENTS OFFICIAL SIGN-OFF ...................................................................... 1 PART B: PROGRAMME AND SUB-PROGRAMME PLANS 32 INTRODUCTION 4 PROGRAMME 1: ADMINISTRATION ........................................... 33 1.1 Purpose ................................................................................................................... 33 SECTION 1: FOREWORD BY THE MINISTER ............................... 5 1.2 Strategic Objectives ............................................................................................... 33 1.3 Cross-cutting Programme 1: Sub-programmes .................................................... 33 SECTION 2: DEPUTY MINISTER’S STATEMENT .......................... 8 1.4 Sub-programme 1.1: Ministry ................................................................................ 35 1.5 Sub-programme 1.2: Departmental Management ................................................ 35 SECTION 3: DIRECTOR-GENERAL’S OVERVIEW ...................... 10 1.6 Sub-programme 1.3: Finance Administration ....................................................... 35 1.7 Sub-programme 1.4: Audit Services ...................................................................... 36 1.8 Sub-programme 1.5: Corporate Services .............................................................. 36 PART A: STRATEGIC OVERVIEW 14 1.9 Sub-programme 1.6: Office Accommodation ....................................................... 37 1.10 Reconciling Performance Targets with the Budget and MTEF .......................... 38 SECTION 1: UPDATED SITUATIONAL ANALYSIS ....................... 15 1.1 Performance Delivery Environment ....................................................................... 15 PROGRAMME 2: ENERGY POLICY AND PLANNING ................ 41 1.2 Organisational Environment ................................................................................... 23 2.1 Purpose ................................................................................................................... 41 2.2 Strategic Objectives ............................................................................................... 41 SECTION 2: REVISIONS TO LEGISLATIVE AND OTHER 2.3 Sub-programme 2.1: Policy Analysis and Research ............................................. 41 MANDATES ................................................................................... 24 2.4 Sub-programme 2.2: Energy Planning .................................................................. 41 2.5 Sub-programme 2.3: Hydrocarbon Policy ............................................................. 43 SECTION 3: OVERVIEW OF THE 2014/15 BUDGET AND 2.6 Sub-programme 2.4: Electricity, Energy Efficiency and Environmental Policy .... 44 MTEF ESTIMATES ........................................................................ 25 2.7 Reconciling Performance Targets with the Budget and MTEF ............................ 47 3.1 Expenditure Estimates ........................................................................................... 25 3.2 Performance and Expenditure Trends ................................................................... 29 PROGRAMME 3: PETROLEUM AND PETROLEUM PRODUCTS REGULATION .......................................................... 50 3.1 Purpose ................................................................................................................... 50 3.2 Strategic Objectives ............................................................................................... 50 3.3 Sub-programme 3.1: Petroleum Compliance, Monitoring and Enforcement ...... 50 3.4 Sub-programme 3.2: Petroleum Licensing and Fuel Supply ................................ 52 DEPARTMENT OF ENERGY 2 ANNUAL PERFORMANCE PLAN 2014/15 3.5 Sub-programme 3.3: Fuel Pricing .......................................................................... 53 PART C: LINKS TO OTHER PLANS 92 3.6 Sub-programme 3.4: Regional Petroleum Regulation Offices ............................. 55 3.7 Reconciling Performance Targets with the Budget and MTEF ............................ 56 SECTION 1: LINKS TO LONG-TERM INFRASTRUCTURE AND OTHER CAPITAL PLANS ..................................................... 93 PROGRAMME 4: ELECTRIFICATION AND ENERGY PROGRAMME AND PROJECT MANAGEMENT ......................... 59 SECTION 2: CONDITIONAL GRANTS ......................................... 94 4.1 Purpose ................................................................................................................... 59 4.2 Strategic Objectives ............................................................................................... 59 SECTION 3: PUBLIC ENTITIES .................................................... 95 4.3 Sub-programme 4.1: Integrated National Electrification Programme .................. 59 4.4 Sub-programme 4.2: Energy Regional Offices ...................................................... 65 SECTION 4: PUBLIC-PRIVATE PARTNERSHIPS ........................ 99 4.5 Sub-Programme 4.3: Programme and Projects Management Office .................. 65 4.6 Sub-programme 4.4: Energy Infrastructure/Industry Transformation .................. 65 4.7 Sub-programme 4.5: Community Upliftment Programmes and Projects ............ 67 ANNEXURES 100 4.8 Reconciling Performance Targets with the Budget and MTEF ............................ 68 ANNEXURE A: SERVICE DELIVERY IMPROVEMENT PLAN .... 101 PROGRAMME 5: NUCLEAR ENERGY ........................................ 71 1. Service Levels and Challenges .............................................................................. 101 5.1 Purpose ................................................................................................................... 71 2. Key Services Identified for Improvement .............................................................. 103 5.2 Strategic Objectives ............................................................................................... 71 3. Improvement Plan: Electrification of the Country, in Particular Low Cost 5.3 Sub-programme 5.1: Nuclear Safety and Technology .......................................... 72 Residential Housing ............................................................................................... 104 5.4 Sub-programme 5.2: Nuclear Non-proliferation and Radiation Security ............. 74 4. Improvement Plan: Petroleum Licensing Process with a Constant Focus on 5.5 Sub-programme 5.3: Nuclear Policy ...................................................................... 77 Turnaround Times ................................................................................................... 107 5.6 Reconciling Performance Targets with the Budget and MTEF ............................ 79 5. Improvement Plan: Nuclear Licensing Process .................................................... 110 PROGRAMME 6: CLEAN ENERGY.............................................. 83 ANNEXURE B: AMENDMENT TO REVISED STRATEGIC 6.1 Purpose ................................................................................................................... 83 PLAN ........................................................................................... 113 6.2 Strategic Objectives ............................................................................................... 83 1. Strategic Objectives ............................................................................................... 113 6.3 Sub-programme 6.1: Energy Efficiency ................................................................. 83 6.4 Sub-programme 6.2: Renewable Energy .............................................................. 85 ACRONYMS AND ABBREVIATIONS.......................................... 118 6.5 Sub-programme 6.3: Climate Change and Designated National Authority ......... 86 6.6 Reconciling Performance Targets with the Budget and MTEF ............................ 87 DEPARTMENT OF ENERGY ANNUAL PERFORMANCE PLAN 2014/15 3 INTRODUCTION DEPARTMENTDEPARTMENT OF ENERGYENERGY 4 ANNUALANNUAL PERFORMANCEPERFORMANCE PLANPLAN 2014/15 SECTION 1: FOREWORD BY THE Electricity MINISTER The global demand for electricity, especially by developing Introduction economies including the African continent, has increased. South Africa has equally shown an increase in electricity demand from The National Development Plan (NDP) has elevated the role of both the household and industrial/commercial sectors. Historically, energy in the country’s economic growth and development. access to electricity has been limited, leaving the majority of the This role, as envisaged in the NDP, ensures that by 2030 South South African population excluded from the grid. Since 1994, Africa has an energy
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