Department of Energy on their Strategic Plan 2011/12 – 2015/16

PMG 19 March 2012.

Summary:

The Department of Energy presented its Revised Strategic Plan for 2011/12 – 2015/16 with its proposed six programmes Administration; Energy Policy and Planning; Petroleum Regulation, Nuclear Energy, Clean Energy, Programmes and Projects. However, it reported that when the DME had split. The DMR had received 70% of the budget and the DoE only 30%. This allocation of funds from National Treasury, was adversely affecting DoE’s ability to carry out its very important mandate. Such restriction would result in a programme having to be shelved due to their being so severely underfunded.

The Committee called for more realistic goals from DoE, as a result of the budget constraints. They called for effective prioritization for certain programmes. The DoE Budget presentation highlighted the problems that DoE was having when it came to allocation of scare funds. This meant they were heavily dependent on the permitted 8% virement to shift funds from one area to another, depending on the most urgent need.

The Committee voiced their concern with the system of fund shifting which the CFO justified by noting that DoE had to engage in this practice to survive. Other questions and concerns included:
▪ what would happen to Programme 6 (Programmes and Projects) if DoE failed to secure the required funds ▪ the single buoy mooring (SBM) being suspended for a month
▪ the many flaws in the Petroleum Products Act meant this act should be overhauled not amended.
▪ lack of a report on energy savings
▪ the budget cuts to the National Nuclear Regulator
▪ what would happen to the old pipeline when the New Multi-Product Pipeline was in operation
▪ the Coal Roadmap
▪ the inclining block tariff
▪ expedite the drafting of required legislation otherwise there would be an avalanche effect in Parliament
▪ role ISMO and StatsSA play in energy data collection and data management.
▪ the importance of National Radioactive Waste Disposal Institute funding
▪ a request for the Solomon Associates report on refineries
▪ the capability of the adjudication committee as they were handling billions of rand
▪ the restructuring of the CEF companies.
▪ request for a dedicated session to ascertain how brutal DoE had been in handling corruption
▪ was DoE ensuring the relevant Sector Education and Training Authorities were doing their jobs.
▪ resolving the Electricity Distribution Industry Holdings (EDIH) issue
As the Director General was unable to be present due to his attendance at a Cabinet meeting, many of these questions remained unanswered. The Director General would provide written responses later…

DOE Presentation document – DOE Strategic Plan 2011-12 to 2015-16 on 19 Mar 2012

http://www.pmg.org.za/report/20120320-department-energy-their-strategic-plan-201112-%E2%80%93-201516-annual-perform
 

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