Energy regulator bill
This presentation is the property of its rightful owner.
Sponsored Links
1 / 37

Energy Regulator Bill PowerPoint PPT Presentation


  • 101 Views
  • Uploaded on
  • Presentation posted in: General

Energy Regulator Bill. Presentation to NCOP Select Committee by Department of Minerals and Energy 1 6 September 2004. National Energy Regulator Bill Contents of Presentation. Background Relationship Between National Energy Regulator Bill and Electricity Act Gas Act

Download Presentation

Energy Regulator Bill

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Energy regulator bill

Energy Regulator Bill

Presentation to

NCOP Select Committee

by

Department of Minerals and Energy

16 September 2004


National energy regulator bill contents of presentation

National Energy Regulator BillContents of Presentation

  • Background

  • Relationship Between

    • National Energy Regulator Bill and

      • Electricity Act

      • Gas Act

      • Petroleum Pipelines Act

  • Structure of Bill

  • Section by Section Description

  • Proposed Schedule for establishment

  • Stakeholder Comments & PPC Changes


  • Main events

    Main Events

    • April 2002: Cabinet Approved a Multi-Sector Regulator

      • Electricity

      • Gas

      • Petroleum Pipelines

    • DME Undertook Study to Ascertain How Best to Give Effect to Cabinet’s Decision

    • December 2003

      • Cabinet Approved Energy Regulator Bill be Submitted Directly to Parliament for Consideration

        • Not sent for public comment as merely an amalgamation of other Acts


    Energy regulator bill

    Why?

    • Concern over proliferation of state entities

    • Synergies and efficiencies

    • Competing energy carriers need even treatment e.g. gas and electricity

    • Cost savings

      • Staff shared

      • Regulators shared

    • Shortage of regulatory skills


    Submission to parliament

    Submission to Parliament

    • February 2004: Submitted to Parliament

    • Re-Submitted after General Election

    • Zulu Translation Currently being Updated


    The present situation

    THE PRESENT SITUATION

    Electricity Act

    Petroleum Pipelines Act

    Gas Act


    The present situation1

    THE PRESENT SITUATION

    National Electricity Regulator

    Gas Regulator

    Petroleum Pipelines Authority

    Electricity Act

    Petroleum Pipelines Act

    Gas Act


    The concept

    THE CONCEPT

    National

    Energy

    Regulator

    Electricity Act

    Petroleum Pipelines Act

    Gas Act


    The concept 2

    THE CONCEPT 2

    National

    Energy

    Regulator

    Administers

    Electricity Act

    Petroleum Pipelines Act

    Gas Act


    Energy regulator bill1

    Energy Regulator Bill

    National Energy Regulator

    Electricity Act

    No 41 of 1987

    Gas Act

    No 48 of 2001

    Petroleum Pipelines Act

    No 60 of 2003

    Regulator

    Establishment

    Regulator

    Establishment

    Authority

    Establishment

    Matters

    Pertaining

    to

    Licenses

    etc

    Matters

    Pertaining

    To

    Licenses

    etc

    Matters

    Pertaining

    To Licenses

    etc


    Structure of bill

    Structure of Bill

    • Chapter I: Definitions and Object

    • Chapter II: National Energy Regulator

      • Establishment & Functions

      • Composition & Vacation of Office

      • Meetings & Duties

      • Decisions

      • Personnel

      • Funds, Accounting & Reporting

  • Chapter III: General Provisions

    • Repeal of Sections of Electricity, Gas & Petroleum Pipelines Acts

    • Transition Measures

  • Schedule


  • Definitions and object

    Definitions and Object

    • Definitions

      • As per existing Acts

    • Object of Act

      • “The object of this Act is to establish a National Energy Regulator for the regulation of the electricity, piped gas and petroleum pipelines industries.”


    Establishment functions

    Establishment & Functions

    • §3 Establishment:

      • Energy Regulator established as juristic person

    • §4 Functions:

      • Undertake the functions of Gas Regulator & Petroleum Pipelines Regulatory Authority from 1 April 2005

      • Undertake the functions of National Electricity Regulator from 1 June 2005


    Composition

    Composition

    • §5 Composition:

      • Three full time & five part time regulators


    Composition1

    Composition

    • Of the three full-time

      • 1 electricity

      • 1 gas

      • 1 petroleum pipelines

    • Term of office 4 years

    • Remuneration set by Ministers of Minerals and Energy and Finance


    Regulators requirements vacation of office

    Regulators: Requirements &Vacation of Office

    • §6 Membership Requirements:

      • Requirements

        • SA citizen

        • Collectively representative

        • Impartial objective

        • Terminate conflicts of interest

      • Disqualifications

        • Insolvent

        • Convictions

      • Appointment process

        • Gazette call for nominations

    • §7 Vacation of Office

      • Compulsory; unsound mind, misses > 2 meetings

      • Resignation


    Meetings duties

    Meetings & Duties

    • §8 Meetings of Regulator

      • Frequency, times and places

      • Quorum: majority or 4, whichever is greater

      • Attendance

      • Records

    • §9 Duties

      • Justifiable & transparent

      • Independency


    Decisions

    Decisions

    • §10 Decisions:

      • In writing

      • In public interest

      • Within powers

      • Reasons given

      • Public (except when confidential)

      • Review by High Court


    Personnel

    Personnel

    • §11 Personnel:

      • Regulator appoints CEO

      • CEO appoints employees

      • Minister may instruct use of personnel from another regulator or licensing authority

      • Personnel actions to be professional


    Funds

    Funds

    • §12 Funds

      • Appropriated by Parliament

      • Levies under other Legislation:

        • Gas Regulator Levies Act

        • Electricity Act

        • Petroleum Pipelines money Bill

      • License fees

      • Charges


    Accounting reporting

    Accounting & Reporting

    • §13 Accounting:

      • Public Finance Management Act

      • Separation of Accounts

      • Costs shared in proportion to costs incurred

      • Auditing by Auditor General

    • §14 Reporting:

      • PFMA applies

      • Include:

        • Licenses

        • Regulations and Directives

        • Strategies & commercial developments

        • Safety, Health & Environment


    Repeals transitional measures

    Repeals & Transitional Measures

    • §15 Repeals:

      • Refer to Schedule (corresponding sections of three acts)

    • §16 Transitional Provisions:

      • CEO of National Electricity Regulator is CEO of National Energy Regulator

      • Staff of National Electricity Regulator are staff of National Energy Regulator

      • Assets & Liabilities of National Electricity Regulator


    Schedule

    Schedule

    • Repeals:

      • Repeals regulator/authority established by:

        • Electricity Act (No 41 of 1987)

        • Gas Act (No 48 of 2001)

        • Petroleum Pipelines Act (No 60 of 2003)

    • Amends:

      • Definitions of regulator/authority refer to the Energy Regulator established by the National Energy Regulator Bill in the following:

        • Electricity Act (No 41 of 1987)

        • Gas Act (No 48 of 2001)

        • Petroleum Pipelines Act (No 60 of 2003)

        • Gas Regulator Levies Act (No 75 of 2002)

      • “Gas Operator” to “National Energy Regulator” in the Gas Act.


    Stakeholder comments ppc changes

    Stakeholder Comments & PPC changes

    • Comments

    • Observations

    • Governance issues

    • Minor improvements


    Observations

    Observations

    • A regulator is not a company

    • The King Commission must not be slavishly applied

    • The NER is what we know - not necessarily an ideal model

    • Very few if any presenters have experience of gas or petroleum pipeline regulation


    Governance

    Governance


    Governance contd

    Governance contd.


    Governance contd1

    Governance contd.


    Governance contd2

    Governance contd.


    Further improvements 1

    Further improvements (1)

    • Energy Regulator becomes “National Energy Regulator”

    • “Other agreements” – deleted

    • “unsound mind” – courts in SA understands this term

    • Offences “dishonesty” –

      • Exempt “10 years” prior to appointment conviction

        • Offenceinvolving dishonesty

        • Sentenceof imprisonment without the option of a fine for any other offence served

      • Removed if Ditto


    Further improvements 2

    Further improvements (2)

    • What happens to fines? Section 213(1) of Constitution into National Revenue Fund

    • Specify safety responsibility? Not necessary

    • Commencement: “at a date determined by the Minister on or after 1 June 2005”


    Further improvements 3

    Further improvements (3)

    • Notifying public of meetings/agenda: Regulator must make rules

    • Act in interests of? “duty to balance the interests of all South Africans“

    • Present views at “own expense” - Removed


    Further improvements 4

    Further improvements (4)

    • What other services? “in terms of this Act”

    • Allocation of money:

      • money appropriated by Parliament allocated to 3 accounts in proportion to costs unless otherwise determined by Parliament

      • Money received from an industry paid into that industry account


    Further improvements 5

    Further improvements (5)

    • Annual report requirements:

      • “access to network infrastructure or summaries thereof where appropriate;

      • tariffs or tariff structures set or approved or summaries thereof where appropriate”;

      • access to network infrastructure or summaries;

      • tariffs or tariff structures set or approved or summaries

    • NER decisions in force: carried over


    Further improvements 6

    Further improvements (6)

    • Accessto sensitive information protected in terms of Promotion of Access to Information Act, 2000 (Act No. 2 of 2000)

    • Sub-committees of Regulators established – Act applies to them

    • Judicial review of administrative actions

      • At the High Court

      • In accordance with Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000)

    • Appeals to High Court - decision of the Energy Regulator sitting as a tribunal


    Energy regulator implementation plan

    Energy Regulator Implementation Plan


    Energy regulator bill

    END


  • Login