NERSA ANNUAL REPORT
2011/12
Portfolio Committee on Energy
Chairperson and Chief Executive Officer
16 October 2012
1
PRESENTATION OUTLINE
A. Introduction
B. Key Objectives for 2011/12
I. Strategic Objectives
II. Contribution to service delivery through link to the twelve National
Outcomes of Government
C.
D.
E.
F.
G.
H.
Performance Against Pre-Determined Objectives
Achievements
Financial Performance
Staff Analysis
Additional Information Requested
Conclusion
2
A. INTRODUCTION
3
INTRODUCTION
• The National Energy Regulator (NERSA), a Schedule 3A Public Finance
Management Act, 1999 (Act No. 1 of 1999) Public Entity was
established on 1 October 2005 in terms of the National Energy
Regulator Act, 2004 (Act No. 40 of 2004) to regulate:
o Electricity industry (Electricity Regulation Act, 2006 (Act No. 4 of 2006))
o Piped-Gas industry (Gas Act, 2001 (Act No. 48 of 2001))
o Petroleum Pipelines industry (Petroleum Pipelines Act, 2003 (Act No. 60 of
2003))
• In executing its mandate NERSA endeavours to balance the interest of
both licensed entities and end users/consumers
4
B. KEY OBJECTIVES FOR 2011/12
5
I. STRATEGIC OBJECTIVES
1.
2.
3.
4.
5.
To create regulatory certainty in the energy sector;
To protect the interests of the public and the customers;
To create a dispensation for fair competition for industry players;
To create energy supply certainty; and
To create an effective organisation that delivers on its mandate and
purpose.
6
II. CONTRIBUTION TO SERVICE DELIVERY
THROUGH THE LINK TO THE TWELVE NATIONAL
OUTCOMES
•
NERSA’s Strategic Objectives are linked to the following National
outcomes that the Minister of Energy has entered into a Performance
Agreement with the President:
2.
4.
6.
8.
10.
A long and healthy life for all South Africans;
Decent employment through inclusive economic growth;
An efficient, competitive and responsive economic infrastructure network;
Sustainable human settlements and improved quality of household life;
Environmental assets and natural resources that are well protected and
continually enhanced; and
12. An efficient, effective and development oriented public service and an
empowered, fair and inclusive citizenship.
7
OUTCOME 2: A LONG AND HEALTHY LIFE FOR
ALL SOUTH AFRICANS
•
NERSA contributes through:
o Offering advice/comment with regards to cleaner fuels;
o Driving renewable energy programmes and promoting the introduction of
renewables and gas into the energy mix;
o In determining electricity pricing, NERSA has set aside 3.2c/kWh in the
second Multi-Year Price Determination (MYPD2) for the Electrification Crosssubsidy;
o Taking affordability into consideration when setting and/or approving tariffs
and prices;
o Implementing inclining block tariffs to protect the low income electricity
consumers; and
o Regulating in a manner which facilitates security of supply.
8
OUTCOME 4: DECENT EMPLOYMENT THROUGH
INCLUSIVE ECONOMIC GROWTH
•
NERSA contributes through:
o Licensing and the setting and/or approving of tariffs and prices. In this
manner NERSA creates pre-conditions towards the achievement of this
outcome;
o Setting renewable energy selection criteria, specifying that twenty decent
jobs for every megawatt produced are required; and
o Promoting companies that are owned and controlled by Historically
Disadvantaged Individuals (HDIs) to become competitive.
9
OUTCOME 6: AN EFFICIENT, COMPETITIVE AND
RESPONSIVE ECONOMIC INFRASTRUCTURE
NETWORK
•
NERSA contributes through:
o Regulating in a manner which facilitates security of supply;
o Setting rules and frameworks that facilitate the building of new infrastructure;
o Setting and/or approving cost reflective tariffs and prices that encourage
investment;
o Facilitating 3rd party access to facilities; and
o Monitoring compliance and undertaking technical audits leading to regulatory
efficiency.
10
OUTCOME 8: SUSTAINABLE HUMAN
SETTLEMENTS AND IMPROVED QUALITY OF
HOUSEHOLD LIFE
•
NERSA contributes through:
o
o
o
o
o
Facilitating access to electricity / energy services;
Facilitating reliability of supply;
Monitoring maintenance of infrastructure;
Compliance monitoring to licence conditions; and
Dispute resolution, including mediation, arbitration and handling of
complaints.
11
OUTCOME 10: ENVIRONMENTAL ASSETS AND
NATURAL RESOURCES THAT ARE WELL
PROTECTED AND CONTINUALLY ENHANCED
•
NERSA contributes through:
o Incorporating compliance with the National Environmental Management Act,
1998 (Act No. 107 of 1998) into licence conditions;
o Promoting energy efficiency in licencees and in the NERSA building;
o Saving of electricity (MYPD1 and MYPD2);
o We have concurred with determinations made by the Minister of Energy in
line with section 34 of the Electricity Regulation Act, 2006 (Act No. 4 of 2006)
regarding Open Cycle Gas Turbines in order to give effect to the Integrated
Resource Plan (IRP);
o Monitoring the implementation of the IRP; and
o Facilitating the transition to a low carbon economy.
12
OUTCOME 12: AN EFFICIENT, EFFECTIVE AND
DEVELOPMENT ORIENTED PUBLIC SERVICE
AND AN EMPOWERED, FAIR AND INCLUSIVE
CITIZENSHIP
•
NERSA contributes through:
o Transparent Processes;
o All Decisions and Reasons thereof are made public through being published
on the web site;
o The Public is invited to make comments prior to decisions being made
(written or in public hearing);
o Customer education;
o Training and development of staff and stakeholders;
o Clean Energy Education and Empowerment; and
o Corporate Service Investment – Luvuyo House.
13
C. PERFORMANCE AGAINST
PREDETERMINED OBJECTIVES
14
PERFORMANCE AGAINST PRE-DETERMINED
OBJECTIVES
Executed
Not Executed As Planned
As
Delayed due to
Delayed
Planned external
(Other)
69 (63%)
28 (25%)
13 (12%)
Electricity Industry
Regulation
Piped-Gas Industry 32 (73%)
Regulation
Petroleum
125 (85%)
Pipelines Industry
Regulation
Cross-cutting
132 (55%)
Regulatory and
Organisational
Total
358 (66%)
Total
110
5 (11%)
7 (16%)
44
13 (9%)
10 (7%)
148
3 (1%)
106 (44%)
241
49 (9%)
136 (25%)
543
15
D. ACHIEVEMENTS
16
ACHIEVEMENTS - ELECTRICITY INDUSTRY
REGULATION (1)
• Tariffs:
o Approved:
• 177 municipal tariff applications for 2011/12; and
• revised tariff increase for Eskom for the period 1 April 2012 to 31 March
2013 of 16% instead of the originally approved tariff of 25.9%.
o Commissioned a study into the impact of the Inclining Block Tariffs and it was
found that it benefitted the poor;
o Concurrence of the Energy Regulator with the determination made by the
Minister of Energy in line with section 34 of the Electricity Regulation Act,
2006 (Act No. 4 of 2006) on the procurement process for renewable energy;
and
o Held six provincial workshops on electricity resellers / trading.
• Generation:
o Conducted national hearings on the licence applications by the 28 ‘DoE
Renewable Energy IPP programme’ preferred bidders. All 28 licences were
granted in April 2012 within 90 days after receipt of applications (thirty days
17
less than statutory deadlines.
ACHIEVEMENTS - ELECTRICITY INDUSTRY
REGULATION (2)
• Distribution:
o Successful mediation of the dispute between the Chiawelo community and
Eskom after the acceptance of NERSA’s report on Testing of Disputed
Electricity Prepaid Meters in Chiawelo, Soweto by all parties.
• Licensing:
Generation
Licences Granted
5
Distribution
1
18
ACHIEVEMENTS – PIPED-GAS INDUSTRY
REGULATION (1)
• Pricing and Tariffs:
o Determination of “inadequate competition” as contemplated in Section
21(1)(p) in the Gas Act, in the piped-gas industry. The determination is a
condition precedent for the implementation of the Methodology to Approve
Maximum Prices for Piped-Gas which was also approved in the period under
review;
o Approved:
• Aggregated (average) piped-gas prices for 2010 for different categories of
customers in various provinces;
• maximum prices for Greenfields customers for 2010 and for distributors
and reticulators for 2010/11;
• minimum prices for Gas for 2010/11;
• compliance with regulatory discounts for 2010; and
• price capping mechanism for 2009 and 2010.
o Approved the following transmission tariffs:
• ROMPCO’s quarterly transmission tariffs; and
• Transmission tariff for Transnet Pipelines for the pipeline from Secunda
to Durban South (Lilly Pipeline) for 2011.
19
ACHIEVEMENTS – PIPED-GAS INDUSTRY
REGULATION (2)
• Licensing:
Construction
Licences
granted
7
Registered
Licences
revoked
Operation
9
Trading
Production
7
3
6
• Compliance Monitoring:
o Notices of non-compliance:
• Issued 13 notices of non-compliance following findings that Sasol Gas did
not adhere to licensing requirements in certain areas; and
• Sasol Gas reimbursed four of its small customers after a finding that they
failed to grant appropriate discounts prescribed.
20
ACHIEVEMENTS – PIPED-GAS INDUSTRY
REGULATION (3)
• Complaints Resolution:
o The following complaints were resolved (three of which led to notices of noncompliance):
• Vaal SanitaryWare;
• Terranova;
• Supreme Heat Treatment; and FG Gallo.
• Other
o Conducted three workshops on Dialogues on gas infrastructure development
and investment:
• Findings:
o Price uncertainty;
o Regulatory / policy uncertainty; and
o Creditworthy off-taker (most likely electricity generation).
21
ACHIEVEMENTS – PETROLEUM PIPELINES
INDUSTRY REGULATION (1)
• Tariffs:
o Approved:
o Transnet’s tariff determination for the period 2012/13; and
o Tariffs for 133 storage facilities.
o The first tariff application from a private pipeline operator (Chevron) was
received.
• Licensing:
Construction
Licences Granted
3
Operation
4
22
ACHIEVEMENTS – PETROLEUM PIPELINES
INDUSTRY REGULATION (2)
• Compliance Monitoring:
o All of the main oil companies have submitted applications for the approval of
tariffs for their storage facilities; and
o Licencees are starting to submit their allocation mechanisms and the data in
terms of the Regulations to the Petroleum Pipelines Act.
23
ACHIEVEMENTS – CROSS-CUTTING
REGULATORY (1)
Summary table on licensees implementing Regulatory Reporting Manuals:
Total licensee
Licensees added in
covered in Phase 1
Phase 2
Number
Market
Share
Number
Market
Share
9 (4%)
89.8%
0 (0%)
0%
6 (50%)
75%
6 (50%)
3 (9%)
18 (7%)
29.5%
65.8%
7 (21%)
13
Cumulative total
licensees covered
in Phase 1 & 2
Market
Number
Share
Electricity
89.8%
25%
9 (4%)
12
(100%)
13.5%
14%
10 (30%)
31 (12%0
42.9%
79.8%
Piped-gas
Petroleum
Pipelines
TOTAL
100%
ACHIEVEMENTS – CROSS-CUTTING
REGULATORY (2)
• NERSA presented the following courses that were attended by
NERSA staff, representatives from relevant government departments
as well as from licencees:
o A-Z of Regulation (Foundation of Economic Regulation) and Regulatory
Accounting;
o Marginal Cost Pricing in tariff setting;
o Regulatory Impact Assessment; and
o Benchmarking.
25
ACHIEVEMENTS – ORGANISATIONAL
• NERSA has continued its tradition of receiving an unqualified Audit
Report for 2011/2012;
• NERSA has been re-elected as Chair of the Regional Electricity
Regulatory Association (RERA); and
• NERSA has been re-elected to serve as a member of the Executive
Committee of the African Forum for Utility Regulators (AFUR).
26
E. FINANCIAL PERFORMANCE
27
FINANCIAL PERFORMANCE (1)
• Financial Management and Accounting at NERSA is governed by:
o Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA);
o Treasury Regulations; and
o South African Standards of Generally Recognised Accounting Practice
(GRAP) issued by the Accounting Standards Board.
• The following legislation sets out the funding mechanisms for
NERSA:
o Section 5B of the Electricity Act, 1987 (Act No. 41 of 1987);
o Gas Regulator Levies Act, 2002 (Act No. 75 of 2002); and
o Petroleum Pipelines Levies Act, 2004 (Act No. 28 of 2004).
28
FINANCIAL PERFORMANCE (2)
• Actual levies collected amounted to R141.6 million, received from
the following sources:
o Electricity industry – R67.8 million
o Piped-Gas industry – R42.2 million
o Petroleum Pipelines industry – R31.6 million
• The under recovery of the levies, compared to the budget is due to
the actual volumes of product transported being below the volumes
projected by the industry.
• The actual expenditure for the period 1 April 2011 to 31 March 2012
amounted to R 179.4 million. This represents an underspending of
14.8% compared to the budgeted amount of R210.6 million.
29
FINANCIAL PERFORMANCE (3)
• In order to comply with Section 13 of the National Energy Regulator
Act, 2004 (Act No. 40 of 2004) which states that accounts for the
three industries need to be ring fenced, the Energy Regulator
approved the ring-fencing methodology as follows:
o All direct costs are allocated directly to the three regulated industries
o All common costs allocated on the following principle:
• 58% electricity industry
• 21% piped-gas industry
• 21% petroleum pipelines industry
30
FINANCIAL PERFORMANCE (4)
Actual
Budget
Variance
REVENUE
146 569 096
154 908 375
(8 339 279)
Levy Income
141 636 976
147 408 375
(5 771 399)
4 932 120
7 500 000
(2 567 880)
EXPENDITURE
179 425 811
210 591 101
31 165 290
Remuneration
110 829 661
124 891 411
14 061 750
Other operating costs
53 453 564
59 166 999
5 713 435
Consultants
15 142 586
26 532 691
11 390 105
(32 856 715)
(55 682 726)
22 826 011
Other Income
Net Deficit for the period
31
FINANCIAL PERFORMANCE (5)
• Expenditure categories in relation to the other expenditure
o
o
o
o
Operating Expenses = 30%
Employment Costs = 57%
Consultant fees = 8%
Regulator Members remuneration = 5%
• Total irregular expenditure not yet condoned at year end was R85 242
and fruitless and wasteful was R356.00
• NERSA received an unqualified audit opinion with an emphasis of
matter from the Auditor-General for the 2011/12 financial year
• Matter of emphasis – misstatement of previous year figures
32
F. STAFF ANALYSIS
33
STAFF ANALYSIS (1)
Occupational Levels
Top Management
Senior Management
Professionally qualified,
experienced specialists and
mid management
Skilled technical and
academically qualified
workers, junior management
and supervisors
Semi-skilled and general
worker
TOTAL PERMANENT
Percentage (%)
Temporary Employees
TOTAL
A
1
1
35
MALE
C
I
0
0
0
0
1
0
W
0
0
2
18
1
0
3
0
0
58
40%
6
64
2
0
1% 0%
0
0
2
0
A
3
2
15
FEMALE
C
I
0
0
0
0
0
1
TOTAL
W
0
1
5
4
4
59
3
32
0
0
2
56
0
20
0
0
0
23
5
3%
0
5
72
49%
9
81
0
0
0
0
1
1%
0
1
8
5%
0
8
146
15
161
34
STAFF ANALYSIS (2)
•
•
•
•
•
•
Total staff complement = 177
Total strength = 146 (82%)
Vacancies = 31 (18%)
Resignations = 14 (9.6% out of staff strength)
New employees = 22
Demographic profile of NERSA staff (permanent and temporary):
o
o
o
o
o
o
o
African – 90%
Coloured – 1%
Indian – 1%
White – 8%
Male – 44%
Female – 56%
People with Disabilities – 0%
35
G. ADDITIONAL INFORMATION
REQUESTED
36
ADDITIONAL INFORMATION REQUESTED (1)
• Update on establishing regulatory mechanism that will ensure
appropriate access to the electricity transmission grid to IPPs:
o Approved the Grid Code for Wind Energy Generation Facilities;
o Approved the Transmission Use of System (TUoS) and Distribution Use of
System (DUoS) charges for third party access; and
o Amended the Grid Code to the following effect:
• To include a framework for wind generation; and
• Dispatch Rules – to be finalised by the end of this financial year.
37
ADDITIONAL INFORMATION REQUESTED (2)
• Progress on facilitating gas infrastructure investment:
o NERSA hosted dialogues on gas infrastructure development and
investment. These confirmed that the market needs:
• Price certainty;
o Approved Methodology for Approval of Maximum Prices, 2011;
o Current market value pricing (ends in March 2014); and
o Published Tariff Guidelines, 2009.
• Regulatory / policy certainty; and
• Creditworthy off-taker
o Electricity generator required as anchor gas customer;
o Future IRPs may include additional Open Cycle Gas Turbines;
o NERSA may facilitate Power Purchase Agreements; and
o The Eskom Multi-Year Price Determination has a cost-recovery
mechanism that would facilitate use of gas generation.
38
ADDITIONAL INFORMATION REQUESTED (3)
• Extent to which price and regulatory certainty has been created in the
energy sector (1):
o Electricity:
• Multi-Year Price Determination approach to generation;
• Approved Eskom Retail Tariff Structural Adjustments; and
• Approved tariff benchmarks and municipal tariff increase guidelines.
o Piped-Gas:
• The current Gas Act and Electricity Regulation Act seeks to grow the
gas market in SA; and
• NERSA has developed all necessary regulatory mechanisms required
by the Gas Act to provide regulatory certainty for such as the Maximum
Pricing Methodology, Tariff Guidelines and Rules.
39
ADDITIONAL INFORMATION REQUESTED (4)
• Extent to which price and regulatory certainty has been created in the
energy sector (2):
o Petroleum Pipelines:
• The following rules pursuant to the Act have been published:
o Tariff Methodologies for Pipelines and Storage facilities;
o Frequently Asked Questions;
o Guidelines for Allocation Mechanisms (the determination of free
capacity);
o Financial Indicators – needed in the formulae in the Methodologies; and
o The Beta to be used in the Weighted Average Cost of Capital calculation.
40
ADDITIONAL INFORMATION REQUESTED (5)
• Extent of accelerating licence applications (1):
o Electricity Industry Regulation:
• Approved Licensing Procedures that will accelerate licence
applications;
• Currently in the process of conducting a Business Process Analysis;
and
• NERSA approved the first phase of 28 Independent Power Producers’
(IPP) licences and the second phase of 19 IPPs in 90 days, instead of
the statutory deadline of 120 days.
o Piped-Gas Industry Regulation (1):
• Approved Licensing Procedures
applications;
that
will
accelerate
licence
41
ADDITIONAL INFORMATION REQUESTED (6)
• Extent of accelerating licence applications (2):
o Piped-Gas Industry Regulation (2):
• Currently in the process of conducting a Business Process Analysis;
and
• Improved from 90% of applications processed within statutory
deadlines to 95% - target is to reach 100% in 2014/15.
o Petroleum Pipelines Industry Regulation:
• Currently in the process of conducting a Business Process Analysis;
and
• Improved from 56% of applications processed within statutory
deadlines in 2010/11 to 80% currently - target is 100% in 2013/14.
42
ADDITIONAL INFORMATION REQUESTED (7)
• Legal cases: types of cases and amounts spent on each (1):
o Visigro Investments vs. NERSA and SFF (2011)
• Visigro is challenging a decision of NERSA to provide a licence to SFF
• Cost incurred to date is R 137 180.68
o Azola recruitment solutions cc vs. Deloitte Consulting and NERSA
(2009)
• Review application brought against NERSA by Azola to review
NERSA’s decision of cancelling its contract on the basis that Azola bid
documents were submitted late despite the fact that it was the
successful bidder
• Litigation costs on this matter will be borne by Deloitte as it was the
wrong party in handling the whole procurement matter on behalf of
NERSA
43
ADDITIONAL INFORMATION REQUESTED (8)
• Legal cases: types of cases and amounts spent on each (2):
o Eskom vs. Midvaal and NERSA (2010)
• Eskom is asking for reviewing and setting aside of a decision by
NERSA to amend the licence granted to Midvaal Municipality, which
amendment effectively added more areas of supply for electricity which
are in favour of Midvaal
• Cost incurred to date is R 202 292.58
o NCP Chlorchem (Pty) Ltd vs. NERSA, Ekurhuleni Metropolitan
Municipality, ESKOM Holdings SOC Limited And Minister of Energy
(2012)
• Notice of motion application brought by NCP Chlorochem against
arbitration award made by NERSA in a matter between NCP and
Ekurhuleni Metro.
• The arbitration related to NCP disputing the electricity charges added
by Ekurhuleni Metro on the electricity account of NCP whilst Ekurhuleni
Metro does not supply electricity to NCP
44
• No cost incurred to date
ADDITIONAL INFORMATION REQUESTED (9)
• Code of ethics: the extent of compliance with the code; any breaches
during period under review:
o Declarations of interest:
o Bi-annual;
o Verbally and in writing in every meeting; and
o Recusal at conflicted meetings.
• Disclosure of interests by senior management:
o Annually; and
o Verbally and in writing in every meeting.
• Relations between CEO and Regulator Members:
o Sound
• Relations between senior management and Regulator Members:
o Sound
45
ADDITIONAL INFORMATION REQUESTED (10)
• Gas market value pricing (MVP) by Sasol – trends, patterns and impact
(1):
o MVP was mandated by the Government of SA trough its agreement with
Sasol Limited in order to provide an incentive to current energy users to
switch to natural gas.
o It has been successful from that point of view, but there have been several
unintended consequences e.g. the uneven gas price it results in, across
customers, without any relationship to volumes or other factors;
o However, when applied correctly, it should provide benefits to the
customers.
o NERSA has investigated several complaints and in some cases has found
non-compliance to MVP and directed Sasol to renegotiate (see slide 21).
46
ADDITIONAL INFORMATION REQUESTED (11)
• Gas market value pricing (MVP) by Sasol – trends, patterns and impact
(2):
o Due to the nature of MVP, which can link a customer’s gas price to oil,
electricity, coal etc, MVP prices have been increasing with the increases in
the prices of the alternative fuels.
o MVP will be discontinued in March 2014 and NERSA has already approved
the subsequent methodology and is implementing this methodology for
other licensees in the interim.
o The Methodology does not allow discriminatory pricing as is required by the
Gas Act and is expected to lead to a convergence of gas prices among
‘similar’ customers.
47
ADDITIONAL INFORMATION REQUESTED (12)
• Trends and patterns on energy pricing from a regulatory perspective –
electricity:
Trends and Patterns: Eskom Price History
MYPD1 Decision
Revision 1:
2008 price
in Dec 2007
Revision 2:
2008 price
in Mar
2008
Interim
MYPD2 Decision
Revision:
2012 price
Mar 2012
2006
2007
2008
2008
2008
2009
2010
2011
2012
2012
Average
Price
Increase
(%)
5.1%
5.9%
6.2%
14.2%
27.5%
31.3%
24.8%
25.8%
25.9%
16.0%
Average
Price
(c/kWh)
17.91
18.09
18.27
22.61
25.24
33.14
41.57
52.30
65.85
60.00
Prices in bold actually applied
48
ADDITIONAL INFORMATION REQUESTED (13)
• Trends and patterns on energy pricing from a regulatory perspective –
piped-gas:
o Due to linking to fuel alternative prices, piped-gas prices have increased in
the last few years
• Trends and patterns on energy pricing from a regulatory perspective –
petroleum (1):
Source: NERSA
Data: DoE
49
ADDITIONAL INFORMATION REQUESTED (14)
• Trends and patterns on energy pricing from a regulatory perspective –
petroleum (2):
Source: NERSA
Data: DoE
50
ADDITIONAL INFORMATION REQUESTED (15)
• Role of NERSA in transformation - Internally: Employment equity,
affirmative action, etc:
o NERSA has an approved Employment Equity Plan; and
o NERSA is an equal opportunity employer.
• Role of NERSA in transformation - Externally: Promotion of BBBEE and
Procurement policy and practices:
o NERSA has an approved procurement policy which is aligned to the PFMA;
o NERSA’s procurement practices are governed by this policy as well as
practice notes issued by National Treasury from time to time;
o Our assessment shows that in 2010/11 NERSA spent 60% of its
procurement budget on BEE companies.
o 2011/12 assessment is underway; and
o A framework in terms of which future monitoring and reporting of NERSA’s
contribution towards BBBEE will be done is currently under development.
51
H. CONCLUSION
52
CONCLUSION (1)
• NERSA would like to thank the Parliamentary Portfolio Committee for
the opportunity to present its Annual Report 2011/12;
• NERSA continues to grow from strength to strength since its
inception in 2005.
• The results of its work continue to have a profound impact on the
lives of ordinary people as well as on the economy of the country;
• The regulation of the three energy industries characteristically
continues to pose challenges in that the Energy Regulator is required
to balance the conflicting interests of
licensees, investors,
consumers/end-users and the policy maker;
• NERSA has achieved its regulatory mandate through projects set for
the 2011/2012 financial year – it completed 66% of its planned
Business Plan activities for 2011/12;
53
CONCLUSION (2)
• The staff turnover has stabilised over the years;
• NERSA is a viable entity and is still operating as a going concern;
and
• To deal with regulatory challenges, NERSA has undertaken various
initiatives to refine regulatory practices and methodologies in its
quest to become a world-class leader in energy regulation and will
continue to do so;
54
Thank You
www.nersa.org.za
55