Committee receives performance report from Department
The Portfolio Committee on Energy received a briefing from the Department on Energy on its third Quarter Performance Report for 2013/14.
“I must say by and large the department has made a fair performance during the 3rd quarter of 2013-14,” said Mr Sisa Njikelana, Chairperson of the Committee. He added that there were a number of areas which warranted mentioning and commending. These were the fact that there were regulations on allowance on energy efficiency usage savings, the national efficiency strategy had been submitted to cabinet for consideration. This is linked to solar water heaters, and that government is insistent that 70% of solar water heaters must be local content, and the department was preparing to accelerate the rollout of the heaters.
The Committee welcomed progress achieved on the solar park project in Northern Cape. The department said the Integrated Energy Plan and Integrated Resource Plan will be concluded this year and the non-grid electrification programme had gone beyond the pilot stage. The regulatory accounting system in the fuel sector has been implemented, notwithstanding the unintended consequences out of it.
Internally, the department submitted its assessment tool of its own management performance to the Presidency. On the nucleus sphere, the department completed its compliance audit and has started awareness campaign to the public.
The Committee welcomed the nine renewable energy projects from the Independent Power Producers that have started feeding into the electricity grid. However, the Committee expressed its concerns about the slow rate of filling of vacancies; slow rate of transformation of the gas industry and absence of targets in some the key performance indicators.
Members of the Committee also expressed concerns about the late start of the rollout of solar water heaters. Hence the Committee welcomed the announcement by the department that funds from non-performing municipalities fund will be re-directed to performing municipalities. Furthermore, the Committee commended the department for developing a plan to reduce the use of consultants.
The Committee took note of the fact that at this stage the department up to the third quarter had used 73% of its budget and expected outstanding funds to be optimally used in the fourth quarter. The Committee appreciated the bold steps taken by Eskom, a state-owned company, and the department to deal with electricity crisis at Richards Bay and further appreciated the need for policy reviewal as a lesson drawn from such a crisis.
The Committee has invited the department to visit Enkanini informal settlement in Stellenbosch to inspect the innovative off-grid technology which is currently used by the community. The invitation is subsequent to an oversight visit conducted by the Committee last year.
Issued by Parliamentary Communication Services on behalf of Mr Sisa Njikelana, Chairperson of the Portfolio Committee on Energy
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