The Portfolio Committee on Energy this week had a meeting with the state-owned entity, the Central Energy Fund (CEF), which appeared before it to present the CEF’s key operations and annual plan. The Committee noted that some disturbing issues had emerged from the presentation:
- As an entity with various subsidiaries, divisions and projects, the committee expected the CEF to give a presentation on its management strategy, including its policies and operations, and show the Committee how the various divisions, subsidiaries and associations of the entity were performin.
- The Committee also expected to get an understanding of the role the Central Energy Fund plays in the overall strategic management of the divisions, subsidiaries, associates and projects it is involved in.
However, the Central Energy Fund failed to articulate its role in the Integrated Resource Plan (IRP) 2010, i.e. to devise a supply-and-demand plan. The IRP must determine the long-term electricity demand, and detail how this will be met in terms of generating capacity, type, timing and cost.
The CEF complained about the withdrawal of the Renewable Energy Feed-in Tariff programme (REFIT) and the adverse effects this would have on it. However, the Chairperson of the Portfolio Committee on Energy questioned the magnitude of such a negative effect, in view of the various other projects that the CEF was involved in.
The Committee noted that the CEF had complained about a lack of support, instead of carrying out its duties. It intended to conduct a detailed oversight of all activities of the CEF, its divisions, subsidiaries, associations and all its projects. This scrutiny would include oversight visits.
For media enquiries or interviews with the Chairperson, please contact:
Faith Kwaza (Parliamentary Communication Services)
Tel: 021 403 8062
Cell: 072 122 0371
E-mail: fkwaza@parliament.gov.za
Source: Parliament of South Africa
