Government Gazette
REPUBLIC OF SOUTH AFRICA
Vol. 521 Cape Town
24 November 2008
No. 31638
THE PRESIDENCY
No. 1263
24 November 2008
It is hereby notified that the President has assented to the following Act, which is
hereby published for general information:–
No. 34 of 2008: National Energy Act, 2008.
AIDS HELPLINE: 0800-123-22 Prevention is the cure
ACT
To e n s u r e that d i v e r s e e n e r g y resources are a v a i l a b l e , in s u s t a i n a b l e quantities a n d
at affordable p r i c e s , to the S o u t h A f r i c a n e c o n o m y in s u p p o r t of e c o n o m i c g r o w t h
and poverty alleviation, t a k i n g into a c c o u n t e n v i r o n m e n t a l m a n a g e m e n t require­
m e n t s a n d i n t e r a c t i o n s a m o n g s t e c o n o m i c s e c t o r s ; to provide for e n e r g y p l a n n i n g ,
i n c r e a s e d g e n e r a t i o n a n d c o n s u m p t i o n of r e n e w a b l e e n e r g i e s , c o n t i n g e n c y e n e r g y
supply, h o l d i n g of strategic e n e r g y f e e d s t o c k s a n d c a r r i e r s , a d e q u a t e i n v e s t m e n t
in, a p p r o p r i a t e u p k e e p a n d a c c e s s to e n e r g y infrastructure; t o provide m e a s u r e s
for t h e furnishing of certain d a t a a n d i n f o r m a t i o n r e g a r d i n g energy d e m a n d ,
s u p p l y and g e n e r a t i o n ; to establish a n institution to be r e s p o n s i b l e for p r o m o t i o n
of efficient g e n e r a t i o n a n d c o n s u m p t i o n of e n e r g y a n d e n e r g y research; a n d to
p r o v i d e for all m a t t e r s c o n n e c t e d therewith.
B
E
IT E N A C T E D
follows:—
by the Parliament
of the Republic of, South
Africa,
as
ARRANGEMENT OF SECTIONS
CHAPTER 1
DEFINITIONS AND OBJECTS
1.
Definitions
2.
Objects of Act
CHAPTER 2
E N E R G Y SUPPLY, O P T I M I S A T I O N A N D UTILISATION
3.
Provision of data and access to data sources
4.
Safety, health and e n v i r o n m e n t
5.
Energy access by h o u s e h o l d s
CHAPTER 3
INTEGRATED ENERGY PLANNING
6.
Integrated energy p l a n n i n g
CHAPTER 4
SOUTH AFRICAN NATIONAL ENERGY D E V E L O P M E N T INSTITUTE
7.
E s t a b l i s h m e n t of South African National Energy D e v e l o p m e n t Institute
8.
9.
Constitution of South African National Energy D e v e l o p m e n t Institute
South African National Energy D e v e l o p m e n t Institute s u b - c o m m i t t e e s for
specific p u r p o s e s
Act No. 34, 2008
10.
11.
12.
13.
14.
15.
16.
NATIONAL ENERGY ACT. 2008
M e e t i n g s of Board of South African National Energy D e v e l o p m e n t Institute
Chief E x e c u t i v e Officer of South African National Energy D e v e l o p m e n t
Institute
South African National Energy D e v e l o p m e n t Institute e m p l o y e e s and c o n d i ­
tions of service
Transitional provisions
Funding of South African National Energy D e v e l o p m e n t Institute
A c c o u n t i n g and auditing at South African National Energy D e v e l o p m e n t
Institute
Discoveries, inventions and i m p r o v e m e n t s
CHAPTER 5
SECURITY OF SUPPLY
17.
18.
Acquisition and maintenance of National Strategic energy feedstocks and
carriers
I n v e s t m e n t in and m a i n t e n a n c e of energy infrastructure
CHAPTER 6
GENERAL PROVISIONS
19.
Regulations
20.
Offences and penalties
21.
Short title and c o m m e n c e m e n t
CHAPTER 1
DEFINITIONS AND OBJECTS
Definitions
1. In this Act. unless the context indicates o t h e r w i s e —
" B o a r d " m e a n s the Board of the South African National E n e r g y D e v e l o p m e n t
Institute c o n t e m p l a t e d in section 8;
" D e p a r t m e n t " m e a n s the Department of Minerals and E n e r g y :
" e n e r g y c a r r i e r " m e a n s a substance or system that m o v e s or carries energy in a
usable form from one place to another:
" e n e r g y d a t a " m e a n s energy-related statistics, facts, figures, information and
records of the energy industry and all other e c o n o m i c sectors;
" e n e r g y efficiency" m e a n s economical and efficient production and utilisation of
an energy carrier or resource:
" e n e r g y f e e d s t o c k s " m e a n s any substance used or that can be used as a raw
material in an industrial process producing energy:
" e n e r g y i n f r a s t r u c t u r e " m e a n s public and privately o w n e d physical structures
which are used for the production, transformation, conversion, transportation or
distribution of energy carriers:
" e n e r g y - r e l a t e d s e c t o r s " m e a n s all sectors which are impacted by or h a v e an
impact on the energy sector;
" e n e r g y r e s o u r c e " m e a n s non-value added material or mineral that can be used to
produce energy or be converted to an energy carrier;
"free basic e l e c t r i c i t y " m e a n s a limited free a m o u n t of electricity supply d e e m e d
necessary to support basic energy services of a typical p o o r h o u s e h o l d as
d e t e r m i n e d from lime to lime;
" g r e e n h o u s e g a s e s " mean gases present in the a t m o s p h e r e , w h i c h reduce the loss
of heal into space and thereby contributing to an increase in global t e m p e r a t u r e s
through a process k n o w n as the g r e e n h o u s e effect;
" I n t e g r a t e d E n e r g y P l a n " m e a n s the national energy plan c o n t e m p l a t e d in
section 6, approved by Cabinet and published in the Gazette by the Minister;
" M i n i s t e r " m e a n s the Minister of Minerals and Energy;
" o r g a n of the s t a t e " m e a n s an organ of stale as defined in section 2 3 9 of the
Constitution;
Act No. 34, 2008
NATIONAL ENERGY ACT. 2008
" p r e s c r i b e d " m e a n s prescribed by regulation:
" P r o m o t i o n of A c c e s s to I n f o r m a t i o n A c t " m e a n s the P r o m o t i o n of A c c e s s to
Information Act, 2 0 0 0 (Act No. 2 of 2000);
" P u b l i c F i n a n c e M a n a g e m e n t A c t " m e a n s the Public Finance M a n a g e m e n t Act,
1999 (Act N o . 1 of 1999):
" r e g u l a t i o n " m e a n s any regulation m a d e in terms of this Act;
" r e n e w a b l e e n e r g y " m e a n s energy generated from natural non-depleting
resources including solar energy, wind energy, b i o m a s s energy, biological w a s t e
energy, h y d r o energy, geothermal energy and ocean and tidal energy; and
"this A c t " includes regulations m a d e in terms of this Act.
O b j e c t s of Act
2. T h e
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
objects of this Act are t o —
ensure uninterrupted supply of energy to the R e p u b l i c ;
p r o m o t e diversity of supply of energy and its s o u r c e s ;
facilitate effective m a n a g e m e n t of energy d e m a n d and its conservation;
promote energy research;
p r o m o t e appropriate standards and specifications for the e q u i p m e n t , s y s t e m s
and processes used for producing, supplying and c o n s u m i n g energy;
ensure collection of data and information relating to energy supply,
transportation and d e m a n d ;
provide for optimal supply, transformation, transportation, storage and
d e m a n d of energy that are planned, organised and i m p l e m e n t e d in a c c o r d a n c e
with a balanced consideration of security of supply, e c o n o m i c s , c o n s u m e r
protection and a sustainable d e v e l o p m e n t ;
provide for certain safety, health and e n v i r o n m e n t matters that pertain to
energy:
facilitate energy access for i m p r o v e m e n t of the quality of life of the p e o p l e of
Republic;
c o m m e r c i a l i s e energy-related technologies;
ensure effective planning for energy supply, transportation and c o n s u m p t i o n :
and
contribute to sustainable d e v e l o p m e n t of South Africa's e c o n o m y .
CHAPTER 2
E N E R G Y SUPPLY, O P T I M I S A T I O N A N D UTILISATION
Provision of d a t a a n d access to data s o u r c e s
3. (1) T h e Minister must establish m e c h a n i s m s to e n s u r e —
(a) provision of any data and information reasonably required for the p u r p o s e s of
conducting analysis required for energy planning from any person and the
time period for the provision of such data and information, w h e r e such data is
not already m a d e available to any other public institution: and
(b) connection to any data and information m a n a g e m e n t system, or any other
system within the public administration, for the acquisition of energy data and
information, in a c c o r d a n c e with the P r o m o t i o n of A c c e s s to Information Act
and the Statistics Act, 1999 (Act N o . 6 of 1999) where such data or
information is collected by that public institution.
(2) T h e Minister may, for the p u r p o s e of ensuring optimal collection of data, subject
to observation of confidentiality of information in the possession of a particular entity,
permit sharing of information with any other entity within and outside of the b o u n d a r i e s
of the R e p u b l i c .
Act No. 34, 2008
NATIONAL ENERGY ACT. 2008
(3) T h e information provided under this Act that is not already in the public d o m a i n
may only be supplied to persons outside of the D e p a r t m e n t subject to the provisions of
the Promotion of A c c e s s to Information Act.
(4) T h e Minister m u s t establish m e c h a n i s m s t o —
(a) collect, collate and analyse energy data and information:
(b) m a n a g e energy data and information; and
(c) avail, in a m a n n e r prescribed, energy statistics and energy information to the
public.
(5) T h e Minister must annually publish an a n a l y s i s —
(a) r e v i e w i n g energy d e m a n d and supply for previous year;
(b) forecasting energy supply and d e m a n d for no less than 2 0 years; and
(c) of plausible energy scenarios of h o w the future energy d e m a n d and supply
landscape could look like under different d e m a n d and supply a s s u m p t i o n s .
(6) T h e Minister must p u b l i s h —
(a) m o d e l s used for data and information analysis;
(b) all the a s s u m p t i o n s that are underpinning the m o d e l s c o n t e m p l a t e d in
subsection (a); and
(c) a list of categories of information or data that h a v e been classified as
confidential and the reasons thereof.
Safety, health and e n v i r o n m e n t
4. T h e Minister may. after consultation with the Minister of T r a d e and Industry, the
Minister of L a b o u r and the Minister of E n v i r o n m e n t a l Affairs and Tourism, adopt
m e a s u r e s not c o n t e m p l a t e d in any other legislation, to m i n i m i s e the negative safety,
health and environmental impacts of energy carriers.
E n e r g y a c c e s s by h o u s e h o l d s
5. (1) T h e Minister must adopt m e a s u r e s that p r o v i d e for the universal access to
appropriate forms of energy or energy services for all the people of the R e p u b l i c at
affordable prices.
(2) T h e m e a s u r e s contemplated in subsection (1) must take into a c c o u n t —
(a) the safety, health and e n v i r o n m e n t a l suitability of such energy;
(b) the availability of energy resources;
(c) the optimisation of existing energy infrastructure;
(d) the need for new infrastructure;
(e) the provision of information and training regarding energy and its optimal
utilisation;
(f) the sustainability of the energy provision;
(g)
affordability:
(h)
cost-effectiveness:
(i) the State's c o m m i t m e n t to provide free basic electricity to poor h o u s e h o l d s ;
and
(j)
appropriate g o v e r n a n c e procedures for g o v e r n m e n t s p o n s o r e d p r o g r a m m e s as
prescribed by the Public Finance M a n a g e m e n t Act.
CHAPTER 3
INTEGRATED ENERGY PLANNING
Integrated energy planning
6. (1) The Minister must develop and. on an annual basis, review and publish the
Integrated Energy Plan in the Gazette.
(2) T h e Integrated Energy Plan must deal with issues relating to the supply,
transformation, transport, storage of and d e m a n d for energy in a way that accounts for—
(a) security of supply;
(b) e c o n o m i c a l l y available energy resources:
(c)
affordability;
(d) universal accessibility and free basic electricity;
Act No. 34, 2008
NATIONAL ENERGY ACT. 2008
(e) social equity;
(f)
employment;
(g) the e n v i r o n m e n t ;
(h) international c o m m i t m e n t s ;
(i)
c o n s u m e r protection; and
(j) contribution of energy supply to s o c i o - e c o n o m i c d e v e l o p m e n t .
(3) T h e Integrated Energy Plan m u s t —
(a) take a c c o u n t of plans relating to transport, electricity, p e t r o l e u m , water, trade,
m a c r o - e c o n o m y energy infrastructure d e v e l o p m e n t , housing, air quality
m a n a g e m e n t , g r e e n h o u s e gas mitigation within the energy sector and
integrated d e v e l o p m e n t plans of local and provincial authorities:
(b) inform and be informed by plans from all supply, production and d e m a n d
sectors whose plans impact on or are impacted by the Integrated Energy Plan;
and
(c) be based on the results of the energy analysis envisaged in sections 3(4)(a) and
3(5).
(4) T h e d e v e l o p m e n t of the Integrated Energy Plan must take into a c c o u n t —
(a) sustainable d e v e l o p m e n t ;
(b) optimal use of indigenous and regional energy r e s o u r c e s :
(c) balance between supply and d e m a n d ;
(d) e c o n o m i c viability;
(e) e n v i r o n m e n t a l , health, safety and s o c i o - e c o n o m i c impacts; and
(f)
d e v e l o p m e n t a l r e q u i r e m e n t s of the .Southern African region.
(5) T h e Integrated Energy Plan must have a planning horizon of no less than 2 0 years.
(6) T h e Integrated Energy Plan m u s t —
(a) serve as a g u i d e for energy infrastructure investments;
(b) take into account all viable energy supply o p t i o n s : and
(c) g u i d e the selection of the appropriate technology to meet energy d e m a n d .
(7) Before finalising the Integrated Energy Plan, the Minister m u s t —
(a) invite public c o m m e n t s ; and
(b) duly consider such c o m m e n t s .
CHAPTER 4
SOUTH AFRICAN NATIONAL ENERGY DEVELOPMENT INSTITUTE
E s t a b l i s h m e n t of S o u t h African National E n e r g y D e v e l o p m e n t Institute
7. (1) T h e South African National Energy D e v e l o p m e n t Institute is hereby established
as a juristic person.
(2) T h e functions of the South African National Energy D e v e l o p m e n t Institute are to,
in respect of—
(a) energy efficiency—
(i) undertake energy efficiency m e a s u r e s as directed by (he Minister;
(ii) increase energy efficiency throughout the e c o n o m y :
(iii) increase the gross d o m e s t i c product p e r unit of energy c o n s u m e d ; and
(iv) o p t i m i s e the utilisation of finite energy resources;
(b) energy research and d e v e l o p m e n t —
(i) direct, monitor, conduct and implement energy research and technology
d e v e l o p m e n t in all fields of energy, other than nuclear e n e r g y : and
(ii) p r o m o t e energy research and technology innovation;
(iii) provide for—
(aa) training and d e v e l o p m e n t in the field of energy research and
technology development:
(bb) establishment and expansion of industries in the field of e n e r g y : and
Act No. 34, 2008
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)
NATIONAL ENERGY ACT. 2008
(cc) commercialisation of energy technologies resulting from energy
research and d e v e l o p m e n t p r o g r a m m e s ;
register patents and intellectual property in its n a m e resulting from its
activities:
issue licences to other persons for the use of its patents and intellectual
property;
publish information concerning its objects and functions;
establish facilities for the collection and dissemination of information in
connection with research, d e v e l o p m e n t and innovation;
undertake any other energy technology d e v e l o p m e n t related activity as
directed by the Minister, with the c o n c u r r e n c e of the Minister of Science
and T e c h n o l o g y ;
p r o m o t e relevant energy research through cooperation with any entity,
institution or person equipped with the relevant skills and expertise
within and outside the R e p u b l i c :
m a k e grants to educational and scientific institutions in aid of research by
their staff or for the establishment of facilities for such research;
p r o m o t e the training of research w o r k e r s by granting bursaries or
grants-in-aid for research;
undertake the investigations or research that the Minister, after consul­
tation with the Minister of Science and Technology, m a y assign to it; and
advise the Minister and the Minister of Science and T e c h n o l o g y on
research in the field of energy technology.
Constitution of S o u t h African N a t i o n a l E n e r g y D e v e l o p m e n t Institute
8. (1) Subject to this Act, the South African National Energy D e v e l o p m e n t Institute is
m a n a g e d and controlled by a Board, w h i c h —
(a) must d e t e r m i n e the South African National Energy D e v e l o p m e n t Institute's
policies and p r o c e d u r e s ;
(b) must exercise control over the performance of the South African National
Energy D e v e l o p m e n t Institute's functions; and
(c) has the same p o w e r s and authority as are conferred upon the South African
National Energy D e v e l o p m e n t Institute in terms of this Act.
(2) T h e Minister must, after consultation with the Minister of Science and
Technology, appoint as m e m b e r s of the B o a r d —
(a) a C h a i r p e r s o n ;
(b) a Deputy C h a i r p e r s o n :
(c) representatives from the D e p a r t m e n t s of Minerals and Energy, Trade and
Industry. Science and Technology, E n v i r o n m e n t a l Affairs and Tourism and
Transport; and
(d) two other suitably qualified persons.
(3) T h e Chief E x e c u t i v e Officer appointed in terms of section 11, or if unavailable, an
e m p l o y e e of the South African National Energy D e v e l o p m e n t Institute d e s i g n a t e d by
the Chief Executive Officer, must attend all m e e t i n g s of the Board and has the right to
speak, but not to vote, at such meetings.
(4) If the Chairperson cannot perform his or her duties, the Deputy C h a i r p e r s o n must
perform such duties until the Chairperson can resume his or her duties or until the
Minister, after consultation with the Minister of Science and Technology, has appointed
a replacement for him or her.
(5) T h e Chairperson or Deputy Chairperson presides at any meeting of the B o a r d .
(6) A m e m b e r of the B o a r d , e x c l u d i n g the Chief Executive Officer, holds office for a
period not e x c e e d i n g four years, but may be reappointed.
(7) A m e m b e r of the Board must vacate his or her office if he or s h e —
(a) b e c o m e s of unsound mind;
(b) resigns by written notification to the Minister of at least one m o n t h :
(c) in the c a s e of m e m b e r s appointed in terms of subsection (2)(c). r e s i g n s from
his or her respective d e p a r t m e n t ; or
(d) materially fails to perform any duty imposed on him or her in t e r m s of this
Act.
Act No. 34, 2008
NATIONAL ENERGY ACT. 2008
(8) T h e m e m b e r s of the Board, with the exclusion of those m e m b e r s w h o are in the
full-time e m p l o y m e n t of an organ of the state, must be appointed on such conditions,
including conditions relating to the p a y m e n t of r e m u n e r a t i o n and a l l o w a n c e s , as the
Minister may. with the c o n c u r r e n c e of the Ministers of Finance and S c i e n c e and
Technology, d e t e r m i n e .
(9) T h e m e m b e r s of the Board must be persons w h o have relevant qualifications and
experience or w h o have special k n o w l e d g e or experience in relation to one or other
aspect of the South African National Energy D e v e l o p m e n t Institute's functions.
(10) U p o n appointment, every m e m b e r of the Board must disclose to the Minister and
to the B o a r d —
(a) his or her pecuniary interest in any person, firm, association o r c o m p a n y
engaged in any of the functions of the South African National Energy
D e v e l o p m e n t Institute; and
(b) if his or her spouse, life partner, parent or child is in the e m p l o y of, or acts as
a consultant to, or has any relationship with, any person, firm, association or
c o m p a n y e n g a g e d in any of the functions of the South African National
Energy D e v e l o p m e n t Institute.
(11) If a m e m b e r of the Board acquires an interest c o n t e m p l a t e d in .subsection 10(a)
or (b), such m e m b e r must immediately, in writing, declare that fact to the Minister and
Board.
(12) T h e Minister may. from time to time, reserve any matter provided for in this Act,
as a matter in respect of which a decision of the Board will be subject to the consent of
the Minister and the Minister of Science and Technology.
(13) T h e Minister and the Minister of Finance may jointly from time to lime reserve
any financial matter provided for in this Act. as a matter in respect of which a decision
of the Board shall be subject to the consent of the Minister with the c o n c u r r e n c e of the
Minister of Finance.
S o u t h African National E n e r g y D e v e l o p m e n t Institute s u b c o m m i t t e e s for specific
purposes
9. (1) T h e Board m a y establish s u b c o m m i t t e e s and m a y appoint any of its m e m b e r s
to join one or more of such s u b c o m m i t t e e s , which must, subject to the instructions of the
Board, perform those functions of the Board as the B o a r d may d e t e r m i n e .
(2) (a) A s u b c o m m i t t e e contemplated in subsection (1) consists of such n u m b e r of
persons, including at least one Board m e m b e r and any e m p l o y e e s of the South African
National Energy D e v e l o p m e n t Institute, as the Board d e e m s necessary.
(b) T h e Board may at any time dissolve or reconstitute a s u b c o m m i t t e e .
(3) If a s u b c o m m i t t e e referred to in subsection (1) consists of more than one m e m b e r ,
the Board must designate o n e m e m b e r as a C h a i r p e r s o n .
(4) T h e South African National Energy D e v e l o p m e n t Institute may pay the m e m b e r s
of a s u b c o m m i t t e e referred to in subsection (1) w h o a r e —
(a) not in the full-time service of the State;
(b) not e m p l o y e e s of the South African National Energy D e v e l o p m e n t Institute:
and
(c) not m e m b e r s of the Board.
the remuneration and allowances determined by the Minister, with the c o n c u r r e n c e of
the Minister of Finance.
(5) T h e Board shall not be discharged from its responsibility for any function
performed in terms of this section by any s u b c o m m i t t e e of the Board.
M e e t i n g s of B o a r d of S o u t h African N a t i o n a l E n e r g y D e v e l o p m e n t Institute
10. (1) The meetings of the Board must be held at such times and places as d e t e r m i n e d
by the Chairperson of the Board.
(2) T h e C h a i r p e r s o n , or in his or her absence the D e p u t y C h a i r p e r s o n , m a y at any time
call a special meeting of the Board, which must be held at such time and place as the
Chairperson or the Deputy Chairperson, as the c a s e may be, may direct.
(3) T h e q u o r u m for a m e e t i n g of the Board is the majority of its m e m b e r s .
Act No. 34, 2008
NATIONAL ENERGY ACT. 2008
(4) A decision of the Board is taken by resolution of the majority of the m e m b e r s
present at any meeting of the Board and, in the event of an equality of votes on any
matter, the person presiding at the meeting in question shall h a v e a casting vote in
addition to his or her deliberative vote as a m e m b e r of the B o a r d .
(5) N o decision taken by or act performed under the authority of the B o a r d shall be
invalid by reason only of—
(a) a vacancy on the Board; or
(b) the fact that a person w h o was not entitled to sit as a m e m b e r of the Board, sat
as a m e m b e r at the time when the decision w a s taken or the act w a s authorised.
if the decision w a s taken or the act w a s authorised by the requisite majority of the
m e m b e r s of the B o a r d w h o w e r e present at the time and entitled to sit as m e m b e r s .
Chief E x e c u t i v e Officer of S o u t h African National E n e r g y D e v e l o p m e n t Institute
11.(1) T h e Board appoints the Chief E x e c u t i v e Officer of the South African National
Energy D e v e l o p m e n t Institute.
(2) The Chief E x e c u t i v e Officer—
(a) is responsible for and exercises control over the p e r f o r m a n c e of the functions
of the South African National E n e r g y D e v e l o p m e n t Institute; and
(b) must report on the affairs of the South African National Energy D e v e l o p m e n t
Institute to the Board as m a y be required of him or her by the B o a r d .
(3) If the Chief E x e c u t i v e Officer is absent or unable to carry out his or her duties or
in the event of a vacancy, the Board m a y appoint an e m p l o y e e of the South African
National Energy D e v e l o p m e n t Institute to act as Chief E x e c u t i v e Officer, and that
e m p l o y e e shall, while so acting, have all the p o w e r s and perform all the duties of the
Chief Executive Officer.
(4) T h e Chief E x e c u t i v e Officer is appointed for a period of not more than five years,
but may b e reappointed on the conditions, including c o n d i t i o n s relating to the p a y m e n t
of remuneration and a l l o w a n c e s , which the B o a r d m a y d e t e r m i n e in a c c o r d a n c e with a
system a p p r o v e d , from time to time, by the Minister, with the c o n c u r r e n c e of the
Ministers of Finance and Science and Technology.
(5) T h e Chief E x e c u t i v e Officer must enter into an annual p e r f o r m a n c e contract with
the Board and the Board must assess his or her performance annually.
(6) Any dispute b e t w e e n the Board and the Chief E x e c u t i v e Officer which c a n n o t be
amicably resolved must be referred to arbitration in terms of the Arbitration Act, 1965
(Act No. 4 2 of 1965).
S o u t h A f r i c a n N a t i o n a l E n e r g y D e v e l o p m e n t Institute e m p l o y e e s a n d c o n d i t i o n s of
service
12. (1) The Chief Executive Officer of the South African National Energy
D e v e l o p m e n t Institute may. on the conditions w h i c h must be d e t e r m i n e d by the B o a r d ,
appoint the e m p l o y e e s of the South African National Energy D e v e l o p m e n t Institute
w h o m it d e e m s necessary to assist the South African National Energy D e v e l o p m e n t
Institute in the performance of its functions.
(2) The South African National Energy D e v e l o p m e n t Institute must pay its e m p l o y e e s
such r e m u n e r a t i o n , a l l o w a n c e s , subsidies and other benefits as the B o a r d may
d e t e r m i n e , in a c c o r d a n c e with a system approved from time to time by the Minister, with
the c o n c u r r e n c e of the Minister of Finance.
(3) The South African National Energy D e v e l o p m e n t Institute may, in addition to
e m p l o y e e s referred to in subsection (1), be assisted in the p e r f o r m a n c e of its functions
by officers and e m p l o y e e s in the public service w h o have been placed at the disposal of
the South African National Energy D e v e l o p m e n t Institute in t e r m s of the Public Service
Act. 1994 (Proclamation N o . 103 of 1994).
(4) The B o a r d may. on such conditions as it may d e e m fit and for a fixed period of
time, second an e m p l o y e e of the South African National Energy D e v e l o p m e n t Institute
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NATIONAL ENERGY ACT. 2008
to perform a particular service for an organ of state or for the g o v e r n m e n t of any o t h e r
country or territory, provided t h a t —
(a) such an e m p l o y e e ' s rights, privileges and benefits by virtue of his c o n d i t i o n s
of service as an e m p l o y e e of the South African National Energy D e v e l o p m e n t
Institute are not adversely affected by such s e c o n d m e n t ; and
(b) such e m p l o y e e consents thereto.
Transitional p r o v i s i o n s
13. (1) In this s e c t i o n —
(a) " C E F (Proprietary) L t d . " m e a n s the c o m p a n y referred to in the Central
Energy Fund Act, 1977 (Act N o . 38 of 1977):
(b) " N E E A " m e a n s the entity k n o w n as the National Energy Efficiency A g e n c y
which existed immediately before the c o m m e n c e m e n t of this A c t as a division
of C E F (Proprietary) Ltd.: and
(c) " S A N E R I " m e a n s the entity k n o w n as the South African National Energy
R e s e a r c h Institute w h i c h existed immediately before the c o m m e n c e m e n t of
this Act as a division of C E F (Proprietary) Ltd.
(2) A s from the date of c o m m e n c e m e n t of this A c t —
(a) the persons w h o immediately before that date constituted the personnel of
S A N E R I and of N E E A . are d e e m e d to be the personnel of the South African
National Energy D e v e l o p m e n t Institute, without any interruption of service;
and
(b) all assets and liabilities which vested in S A N E R I and N E E A as d i v i s i o n s of
C E F (Proprietary) Ltd, immediately before that date vest in the South African
National Energy D e v e l o p m e n t Institute.
F u n d i n g of S o u t h African N a t i o n a l E n e r g y D e v e l o p m e n t Institute
14. (1) T h e funds of the South African National Energy D e v e l o p m e n t Institute consist
of—
(a) m o n e y appropriated by Parliament:
(b) d o n a t i o n s or contributions which the South African National Energy
D e v e l o p m e n t Institute may receive from any person, body, g o v e r n m e n t or
administration: and
(c) m o n e y received from any other appropriate source.
(2) T h e South African National Energy D e v e l o p m e n t Institute must utilise its funds
for defraying e x p e n s e s in connection with the p e r f o r m a n c e of its functions.
(3) T h e South African National Energy D e v e l o p m e n t Institute m u s t utilise its m o n e y
in a c c o r d a n c e with the statement of its estimated i n c o m e and e x p e n d i t u r e c o n t e m p l a t e d
in subsection (4), as approved by the Minister.
(4) The Board must in each financial year, as required by the Public F i n a n c e
M a n a g e m e n t Act, submit a statement of the South African National Energy D e v e l o p ­
ment Institute's estimated i n c o m e and expenditure during the following financial year to
the Minister for his or her approval.
(5) T h e Board may invest any u n e x p e n d e d portion of the South African National
Energy D e v e l o p m e n t Institute's funds with the Corporation for Public Deposits
established in t e r m s of section 2 of the C o r p o r a t i o n for Public D e p o s i t s Act, 1984 (Act
N o . 4 6 of 1984) or. subject to the approval of the Minister with the c o n c u r r e n c e of the
Minister of F i n a n c e , dispose thereof in any other manner.
(6) T h e Board may create surplus funds as e n v i s a g e d by subsection (5) and deposit
such funds as the Minister, acting with the c o n c u r r e n c e of the Minister of F i n a n c e , m a y
approve.
A c c o u n t i n g a n d a u d i t i n g at S o u t h African N a t i o n a l E n e r g y D e v e l o p m e n t Institute
15. (1) T h e Chief Executive Officer is the accounting officer c h a r g e d with the
responsibility of accounting for all m o n e y received and p a y m e n t s m a d e by the South
African National Energy D e v e l o p m e n t Institute.
(2) T h e accounting officer must cause such records of account to be kept as are
necessary to represent fairly the state of affairs and business of the South African
Act No. 34, 2008
NATIONAL ENERGY ACT. 2008
National Energy D e v e l o p m e n t Institute and to explain the transactions and financial
position of the b u s i n e s s of the South African National Energy D e v e l o p m e n t Institute.
(3) T h e accounting and compilation of annual financial statements of the South
African National Energy D e v e l o p m e n t Institute must be d o n e in a c c o r d a n c e with the
provisions of the Public F i n a n c e M a n a g e m e n t Act.
Discoveries, inventions and improvements
16. (1) Subject to subsections (5) and (6), the rights in all d i s c o v e r i e s and i n v e n t i o n s
and in all i m p r o v e m e n t s in respect of processes, apparatus and m a c h i n e s m a d e b y —
(a) e m p l o y e e s of the South African National Energy D e v e l o p m e n t Institute or
officers and e m p l o y e e s in the public service w h o have been placed at the
disposal of the Energy R e s e a r c h and D e v e l o p m e n t Division of the South
African National Energy D e v e l o p m e n t Institute in terms of section 12(3);
(b) p e r s o n s assisting the South African National E n e r g y D e v e l o p m e n t Institute
with any investigation or research: or
(c) p e r s o n s to w h o m contracts, including bursaries or grants-in-aid, h a v e been
granted by the South African National Energy D e v e l o p m e n t Institute,
vests in the South African National Energy D e v e l o p m e n t Institute.
(2) T h e South African National Energy D e v e l o p m e n t Institute may m a k e the
discoveries, inventions and i m p r o v e m e n t s referred to in subsection (1) available for use
in the public interest subject to the conditions and the p a y m e n t of fees or royalties that
the South African National Energy D e v e l o p m e n t Institute m a y d e t e r m i n e .
(3) In respect of the rights in any discovery, invention or i m p r o v e m e n t that are
contemplated in subsection (1). the South African National E n e r g y D e v e l o p m e n t
Institute may a w a r d to the person responsible for the discovery, invention or
i m p r o v e m e n t such b o n u s as it d e e m s fit, or m a k e provision for financial participation by
him or her in the profit derived from such discovery, invention or i m p r o v e m e n t to such
extent as the Minister m a y d e t e r m i n e with the c o n c u r r e n c e of the M i n i s t e r of F i n a n c e .
(4) T h e South African National Energy D e v e l o p m e n t Institute m a y apply for a patent
in respect of any discovery, invention or i m p r o v e m e n t c o n t e m p l a t e d in subsection (1),
and shall for the purposes of the Patents Act. 1978 (Act No. 57 of 1978), be r e g a r d e d as
the assignee of the discoverer or inventor in question.
(5) Unless it is otherwise agreed, the rights in a discovery, invention or i m p r o v e m e n t
m a d e by the South African National Energy D e v e l o p m e n t Institute in the c o u r s e of an
investigation for or on behalf of another person, g o v e r n m e n t or administration shall vest
with the South African National Energy D e v e l o p m e n t Institute.
(6) T h e provisions of this section shall not apply in respect of a d i s c o v e r y or an
invention or i m p r o v e m e n t referred to in subsection (1) w h i c h , in the opinion of the
Minister, w a s m a d e by the person concerned other t h a n —
(a) in the c o u r s e of his or her e m p l o y m e n t as an e m p l o y e e of the South African
National Energy D e v e l o p m e n t Institute;
(b) d u r i n g the p e r f o r m a n c e of functions in respect of which he or she has b e e n
placed at the disposal of the South African National E n e r g y D e v e l o p m e n t
Institute in t e r m s of section 12(3):
(c) in the course of any investigation or research while assisting the South African
National Energy D e v e l o p m e n t Institute; or
(d) in the course of any research in respect of which he or she r e c e i v e s a bursary
or grant-in-aid from the South African National Energy D e v e l o p m e n t
Institute, which is not c o n n e c t e d with such e m p l o y m e n t , functions, investi­
gation or research.
Act No. 34, 2008
NATIONAL ENERGY ACT. 200S
CHAPTER 5
SECURITY OF SUPPLY
Acquisition a n d m a i n t e n a n c e of national strategic e n e r g y f e e d s t o c k s a n d c a r r i e r s
17. (1) The Minister may, in a prescribed manner, for the p u r p o s e s of ensuring
security of supply, direct any state-owned entity to acquire, maintain, m o n i t o r and
m a n a g e national strategic energy feedstocks and carriers.
(2) T h e nominated state-owned entity must perform the functions c o n t e m p l a t e d in
subsection (1) in a c c o r d a n c e with the relevant published security of supply strategies or
policies.
(3) T h e strategies or policies contemplated in subsection (2) m a y contain but not be
limited t o —
(a) the m i n i m u m level of energy carrier or energy feedstock for the production of
an energy carrier:
(b) the conditions u n d e r w h i c h —
(i) the strategic energy feedstocks and carriers may be built; and
(ii) w i t h d r a w a l s may be m a d e from such strategic energy feedstocks and
carriers;
(c) cost and benefit analysis;
(d) funding m e c h a n i s m for such energy feedstock or carrier: and
(e) obligations to be i m p o s e d , on producers of energy feedstocks, to supply to the
nominated state-owned entity the requisite energy feedstock, in a m a n n e r
prescribed by regulation.
(4) Before finalising the strategy or policy, the Minister m u s t —
(a) invite public c o m m e n t s on such strategy or policy; and
(b) duly consider such c o m m e n t s .
I n v e s t m e n t in a n d m a i n t e n a n c e of E n e r g y I n f r a s t r u c t u r e
18. T h e Minister may, for the purposes of ensuring security of supply, direct any
state-owned entity, in a prescribed manner, t o —
(a) undertake security of supply m e a s u r e s ;
(b) provide for adequate investment in energy infrastructure;
(c) invest in critical energy infrastructure; and
(d) ensure u p k e e p of all critical energy infrastructure.
CHAPTER 6
GENERAL PROVISIONS
Regulations
19. (1) T h e Minister may, after consultation with those Cabinet Ministers w h o s e areas
of responsibility will be affected by the proposed regulations, without d e r o g a t i n g from
his or her general regulatory p o w e r s , by notice in the Gazette m a k e regulations
regarding—
(a) the publication of energy statistics or information;
(b) the type, m a n n e r and form of energy data and information that must be
provided by any person;
(c) the form and m a n n e r of the link between the energy d a t a b a s e and information
system to any other system within the public administration;
(d) m i n i m u m contributions to national energy supply from r e n e w a b l e energy
sources;
(e) the nature of the sources that m a y be used for r e n e w a b l e energy c o n t r i b u t i o n s
to the national energy supply;
(f)
m e a s u r e s and incentives designed to p r o m o t e the production, c o n s u m p t i o n .
investment, research and d e v e l o p m e n t of r e n e w a b l e e n e r g y :
(g) m i n i m u m levels of energy efficiency in each sector of the e c o n o m y ;
(h) steps and p r o c e d u r e s necessary for the application of energy efficiency
technologies and procedures;
Act No. 34. 2008
NATIONAL ENERGY ACT. 2008
(i)
labelling for energy efficiency p u r p o s e s of h o u s e h o l d a p p l i a n c e s , devices and
m o t o r vehicles;
(j)
prohibition of the manufacture, or importation or sale of electrical and
electronic p r o d u c t s and fuel burning appliances for reasons of poor energy
efficiency:
(k) standards and specifications for energy carriers;
(I) energy efficiency standards for specific technologies, p r o c e s s e s , a p p l i a n c e s .
d e v i c e s , m o t o r vehicles and buildings;
(m) h o l d i n g of strategic energy feedstocks and carriers, including
financing
m e c h a n i s m s for such stocks;
(n) energy conservation m e a s u r e s to be used during energy shortage, which m a y
include but not limited to the a m o u n t of energy to be saved, the duration for
such m e a s u r e s and penalties associated with n o n - c o m p l i a n c e to such
measures;
(o) m e a s u r e s to ensure adequate provision of energy-related infrastructure;
(p) m e a s u r e s to ensure operating reliability of all key energy infrastructure, to the
m i n i m u m standards as may be d e t e r m i n e d by the Minister;
(q) m e a s u r e s to p r o m o t e security of supply through access to c o m m o n infrastruc­
ture by any party, w h e r e not p r o v i d e d for under any other legislation;
(r) the prohibition of disposal m e t h o d s of certain fuels or p o s t - c o m b u s t i o n
residues:
(s) the safe, healthy and sustainable use of energy, standards and specifications,
not e l s e w h e r e legislated or regulated, for—
(i) the c o m p o s i t i o n , colouring, labelling and form of energy carriers;
(ii) l o w - s m o k e fuels;
(iii) the prohibition of the sale or c o m b u s t i o n of polluting fuels;
(iv) c o o k i n g , heating, lighting and other energy c o n s u m i n g h o u s e h o l d
appliances;
(v) transport of energy carriers;
(vi) the storage and p a c k a g i n g of energy carriers; and
(vii) any other e n e r g y - c o n s u m i n g appliance in all sectors of the e c o n o m y .
(t)
any other matter that may or has to be prescribed, d e t e r m i n e d or p r o v i d e d for
by regulation in t e r m s of this Act.
(2) Before p r o m u l g a t i n g regulations, the M i n i s t e r m u s t —
(a) invite public c o m m e n t s on such regulations; and
(b) duly c o n s i d e r such c o m m e n t s .
Offences and penalties
20. (1) A person w h o c o n t r a v e n e s or fails to c o m p l y with any provision of this Act,
shall be guilty of an offence and be liable on conviction t o —
(a) a fine not e x c e e d i n g five million rand;
(b) i m p r i s o n m e n t for a period not e x c e e d i n g five years; o r
(c) both such fine and such i m p r i s o n m e n t .
(2) T h e Minister may, by a notice in the Gazette, a m e n d the a m o u n t referred to in
subsection (1) in order to c o u n t e r the effect of inflation.
S h o r t title a n d c o m m e n c e m e n t
21. (1) This Act is called the National Energy Act, 2 0 0 8 and c o m e s into operation on
a date d e t e r m i n e d by the President by p r o c l a m a t i o n in the Gazette.
(2) Different dates may be so fixed in respect of different provisions of this Act.