Department of Energy Presentation to the Parliamentary Committee on Energy – 3rd Quarter Performance (2013/14) Nelisiwe Magubane 11 February 2014

CONTENT Introduction-2013/14 Midterm Review Highlights for the quarter Financial Report Programme Performance Conclusion

INTRODUCTION Mid-Term Review conducted November 2013 Revised 2013/14 APP and Operational Plans are aligned to the Framework for Strategic Plans and Annual Performance Plans Branch presentations to respond to additional points raised by the Chairperson of the PCE, last Friday afternoon.

B. HIGHLIGHTS FOR THE QUARTER Announcement of the successful bidders for Window 3 Implementation of the Regulatory Accounting System (RAS) Concluded the IEP Finalised the review of the IRP Nuclear -Completed the Self Assessment Report Completed the Leadership Development Management Programme for Senior Managers Completed and submitted the annual Management Performance Assessment Tool (MPAT) to DPME

C. FINANCIAL REPORT 25 November 2012

PRESENTATION LAYOUT 3rd Quarter Financial Performance: Overview per Economic Classification Top 5 Major Cost Drivers (Goods & Services) Overview per Programme Transfer Payment Schedule for 2013/14

2013/14: 3rd QUARTER FINANCIAL PERFORMANCE Overview – per Economic Classification Vote 29: Energy {A} {B} {C} {D} {E}  {F} 2013/14 Adjusted YTD Budget Actual VARIANCE Expended R’000 %  % Total Energy 6,503,244 5,682,345 4,130,920 1,551,425 27.3% 63.52% Compensation of Employees 242,562 184,440 169,868 14,572 7.9% 70.03% Goods & Services 214,655 152,502 110,778 41,724 27.4% 51.71% Transfers & Subsidies 6,034,264 5,339,322 3,846,595 1,492,727 28.0% 63.75% Payments for Capital Assets 11,763 6,081 3,679 2,402 39.5% 30.22%

3rd QUARTER FINANCIAL PERFORMANCE FOR 2013/14 Total expenditure as at the end of the quarter under review was planned or estimated at R5.7 billion and the actual amount spent was a total of R4.1 billion or 72.7% resulting in a budget variance of R1.5 billion or 27.3% The composition of this budget balance was as follows: Compensation of employees: R14.6 million (7.9%) below budget mainly attributable to vacancies Goods & services: R41.7 million (27.4%) below budget due to various projects which could not commence as planned Transfer payments: R1.49 billion (28%) below budget mainly due the budget under spend in the EEDSM-Eskom programme which is accountable for R1.14 billion or 19% of the total transfer payments’ budget balance. Payments for Capital Assets: R2.4 million (39.5%) below budget, most of this amount is currently committed in the system.

MAJOR COST DRIVERS (Top 5): GOODS AND SERVICES Total spent on Goods & services is R110.8 m The top 5 costs accounts for 68.6% of the total spend Spending on travel and subsistence constituted 37% of the total Departments goods and services expenditure, 51% still being accounted by the Administration programme Operating leases is mainly for office accommodation lease rentals for head office and all regional offices More than 50% of total computer costs are incurred on services rendered by SITA COST DRIVERS - GOODS AND SERVICES 2013/14 April-December Rand thousand R'000 Travel and subsistences 40,940 Operating leases 15,564 Consultants and professional services: Business and advisory services 7,918 Computer services 6,015 Advertising 5,522 Total Q3 GOODS & SERVICES TOTAL 75,959 110,777

2013/14: 3rd QUARTER FINANCIAL PERFORMANCE per Programme Vote 29: Energy {A} {B} {C} {D} {E}   13/14 Adjusted Q3 Budget Expended Actual VARIANCE R’000 %  % TOTAL: 6,503,244 5,682,345 4,130,920 1,551,425 27.3% 63.52% Administration 224,116 161,174 157,055 4,119 2.6% 70.08% Energy Policy & Planning 47,201 30,318 30,413 (95) -0.03% 64.43% Energy Regulation 40,315 33,558 16,882 16,676 49.7% 41.88% Electrification & Energy Programmes Management 3,977,740 3,305,271 3,077,347 227,924 6.9% 77.36% Nuclear Energy & Regulation 707,598 682,138 664,836 17,302 2.5% 93.96% Clean Energy 1,506,274 1,469,886 184,387 1,285,499 87.5% 12.24%

Programme 1: Administration Vote 29: Energy {A} {B} {C} {D} {E}   2013/14 Original YTD Adjusted B. Budget Actual VARIANCE Expended R’000 %  % Total 219,628 161,174 157,055 4,119 2.6% 70.08% Compensation of employees 112,947 85,854 82,804 3,050 3.6% 73.31% Goods and Services 97,932 69,141 70,358 -1,217 -1.8% 70.12% Transfers and subsidies 356 286 231 55 19.2% 364.89% Payments for capital assets 8,393 5,893 3,662 2,231 37.9% 34.97% Compensation of employees: Variance is mainly due to vacancies. The recruitment process for these is currently underway. Goods & services: Due to a number of engagements undertaken towards the latter part of the year, e.g. nuclear study tour headed by the Minister, the travelling costs came to more that anticipated which resulted in the budget over spend. Payments for Capital Assets: The saving is currently committed, awaiting delivery of goods & services.

Programme 2: Energy Policy and Planning Vote 29: Energy {A} {B} {C} {D} {E}   2013/14 Original YTD Adjusted B. Budget Actual VARIANCE Expended R’000 %  % Total 47,201 30,318 30,413 95 03% 64.43% Compensation of employees 30,629 23,962 21,128 2,835 11.8% 68.98% Goods and Services 16,572 6,356 9,277 -2,921 -46% 58.45% Transfers and subsidies - 8 -8 0.00% Payments for capital assets The over spend in Goods and services is attributable to the number of IEP stakeholder engagement workshops which were undertaken. This variance is off-set by the under-spending in compensation of employees.

Programme 3: Energy Regulation Vote 29: Energy {A} {B} {C} {D} {E}   2013/14 Original YTD Adjusted B. Budget Actual VARIANCE Expended R’000 %  % Total 43,315 33,558 16,882 16,679 49.7% 41.88% Compensation of employees 20,072 16,325 14,225 2,100 12.9% 70.87% Goods and Services 23,243 17,233 2,604 14,629 84.9% 12.86% Transfers and subsidies - 53 -53 0.00% Payments for capital assets Compensation of employees: Variance is mainly due to vacancies. The recruitment process for these is currently underway. Goods & services: The process of appointing a service providers to undertake the fuel specification testing project and the replacement cost of (4) secondary depot size project is currently underway.

Prog.4: Electrification & Energy Programmes Management Vote 29: Energy {A} {B} {C} {D} {E}   2013/14 Original YTD Adjusted B. Budget Actual VARIANCE Expended R’000 %  % Total 3,978,028 3,305,271 3,007,341 227,924 6.9% 77.36% Compensation of employees 53,660 39,088 34,477 4,611 11.8% 64.25% Goods and Services 29,095 20,212 15,800 4,412 21.8% 55.64% Transfers and subsidies 3,895,023 3,245,783 3,027,061 218,722 6.7% 77.72% Payments for capital assets 250 188 9 179 -170.0% 0.00% Compensation of employees: Variance due to vacancies, the recruitment process is currently underway Goods and services: Saving is mainly due to the delayed procurement of a reporting tool and its related support, the procurement process is underway. Part of the saving is earmarked for the marketing of Non-grid technologies in certain areas where backlogs have been identified. Transfer payments: The variance is mainly attributable to the performance of the Non-grid electrification project, which is R33.3 million behind in spending. The delay in the finalization of service providers’ contracts contributed to the variance. The transfers to certain municipalities were also withheld , an application was made to Treasury for the re-directing of these allocations to other municipalities . National Treasury has since sanctioned the proposed redirection, payments will thus follow.

Programme 5: Nuclear Energy and Regulation Vote 29: Energy {A} {B} {C} {D} {E}   2013/14 Original YTD Adjusted B. Budget Actual VARIANCE Expended R’000 %  % Total 708,798 682,138 664,836 17,302 2.5% 93.96% Compensation of employees 11,772 9,221 7,463 1,758 19.1% 63.40% Goods and Services 23,107 21,473 9,888 11,585 54.% 43.14% Transfers and subsidies 673,919 651,444 647,485 3,959 0.6% 96.08% Payments for capital assets - 0.00% Compensation of employees: The reported saving is attributable to vacancies, the recruitment process of which was finalized in December 2013. Goods and services: Variance is due to delays in projects, i.e. the nuclear awareness campaigns, study on the cost of nuclear power and advisory services on the financing options, models and solutions for the new nuclear build programme. These projects have since commenced. Transfer Payments: The transfers to the NRAWDI could not be transferred as the appointment of the board was still not finalized. The board has since been appointed and the operationalization of the Institute has commenced.

Programme 6: Clean Energy Vote 29: Energy {A} {B} {C} {D} {E}   2013/14 Original YTD Adjusted B. Budget Actual VARIANCE Expended R’000 %  % Total 1,506,274 1,469,886 184,387 1,285,499 87.5% 12.24% Compensation of employees 13,482 9,990 9,771 219 2.2% 72.47% Goods and Services 27,796 18,087 2,851 15,236 84.2% 10.37% Transfers and subsidies 1,464,966 1,441,809 171,757 1,270,052 88.1% 11.72% Payments for capital assets 30 - 8 -8 0.00% 2.35% Goods and services: The planned Clean energy/energy efficiency awareness campaigns could not commence as planned due to conflicting engagements, resulting in the above variance. The saving from this project, which cannot be utilized, will be redirected to the SWH local content verification project, the procurement process of which has commenced. Transfers and subsidies: The reported variance mainly emanates from the EEDSM-Eskom programme. No transfers could be processed as the implementation contract with Eskom was not finalized.

3rd QUARTER TRANSFER PAYMENT SCHEDULE FOR 2013/14 Programme Projects & Entities {A} {B} {C} {D} {E} 2013/14 Adjusted YTD Budget Actual Variance R’000 % Programme 6 EEDSM - Municipalities 180,722 102,651 70,999 31,652 30.83% EEDSM – Eskom 1,149,900 1,238,400 - 100.00% SANEDI 134,344 100,758 0.00% Programme 4 INEP - Municipalities 1,634,772 1,414,387 1,220,991 193,396 74.69% INEP - Eskom 2,141,027 1,771,972 1771,972 INEP – Non-grid 119,224 59,424 33,956 25,468 42.9% Dept Agencies - gifts 104 (104)   Programme 5 NNR 48,360 43,348 89.64% NECSA 592,182 IAEA- Int. fees 13,577 11,955 (11,955) Waste Disposal Ins 19,800 15,914 Programme 1,2,3 Households 356 286 330 -44 15.4% Total Transfers 6,034,264 5,339,322 3,846,595 1,492,727 28.0%

3rd QUARTER TRANSFER PAYMENT SCHEDULE FOR 2013/14 YTD, the transfer payments category reflected a budget under spend of R1.49 billion (28%) mainly due to the following: EEDSM Municipalities: R31.65 million (30.8%) under budget as a result of the withholding of transfers from certain municipalities in terms of the provisions of DoRA. Through regazetting, these transfers will be directed towards other municipalities before year end EEDSM –Eskom: R1.24 billion or 100% under budget, due to the delayed finalization of the implementation contract with Eskom INEP Municipalities: R193.40 million (13.7%) million under budget mainly due to the late submission of payment requests from municipalities. Expenditure is expected to increase during last quarter of 2013/14 financial year following the re-gazetting of some withheld allocations. INEP Non-grid: R25.5 million (42.9%) under budget. Work already undertaken by service providers must first be verified before payments can be processed. This will be done during last quarter of 2013/14 financial year.

3rd QUARTER TRANSFER PAYMENT SCHEDULE FOR 2013/14 NWRDI: R15.9 million (100%) under budget due to the delay in the establishment of the institute and its board of directors . The appointment of the board was finalized in November 2013. Interim arrangements has been instituted to ensure a transfer before 31 March 2014

PROJECTED SPENDING TO 31 MARCH 2014 As at the end of the quarter under review, the Department had utilized a total of R4.13 billion or 63.5% of its total 2013/14 budget of R6.50 billion. The above resulted in the available budget balance of R2.37 billion to be utilized in the 4th quarter of 2013/14 financial year. The Forecast, based on information in the system, is that a total of R2.32 billion will be spent in the 4th quarter as follows: Compensation of employees: R56.6 million Goods & services: R60.9 million Transfer payments: R2.2 billion Payments for Capital Assets: R7.7 million Based on the estimates available it is forecasted that 56 million will be unspent, However plans are in place to utilize a total of R40 million.

CONCLUSION In the 2012/13 financial year, the Department spent 98.9% of its allocated budget (99.6% of the allocated budget was spent in 2011/12). Based on the best available information to date, it is anticipated that in the 2013/14 financial year, the Department will spend 99% of its allocated budget .

D. PROGRAMME PERFORMANCE 25 November 2012

PROGRAMME 1 (ADMINISTRATION) (1)

PROGRAMME 1 (ADMINISTRATION) (2) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Result of annual audit N/A - Target reported during the 2nd quarter Average score on the Management Performance Assessment Tool (MPAT) Average MPAT score of at least 2.8 for the moderated score of 2012/13 Partially Achieved Awaiting response from DPME Percentage of approved invoices paid within 30 days of receipt 100% Achieved

PROGRAMME 1 (ADMINISTRATION) (3) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Percentage of vacancy rate Reduced to 11%. Achieved (8.33%) - Percentage of employment of people with disabilities No quarterly target Measure reported annually Percentage of women in SMS positions 44% SMS & 39% MM Year-to-date Number of Izimbizo (Public Participation Programmes) conducted (PPP). 5 Partially Achieved (3) Events were postponed due to other commitments by political principals

PROGRAMME 2 (ENERGY PLANNING AND POLICY)

PROGRAMME 2 (ENERGY PLANNING AND POLICY) (2) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Finalised Integrated Energy Plan submitted to Cabinet for approval Public Consultation completed Achieved Finalised Gas infrastructure development options report submitted to the Minister for approval No target set for the quarter, (2nd qtr target) Not Achieved Collective consultation was done, still awaiting further inputs from stakeholders Finalised Liquid fuels roadmap report submitted to the Minister for approval No target set for the quarter (2nd qrtr target) Partially Achieved Draft report in place but not yet submitted to the minister

PROGRAMME 2 (ENERGY PLANNING AND POLICY) (3) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) LPG pricing policy framework submitted to Minister for approval Public consultation on the draft LPG pricing policy framework concluded Achieved Legislative amendments to the Petroleum Products Act submitted to Minister for approval. Target to be reported in Q4 - Draft is in place, Ministerial submission for approval by SOE &State Law Advisor Consultation will be made in Q4

PROGRAMME 2 (ENERGY PLANNING AND POLICY) (4) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Legislative amendments to the Gas Act submitted to Minister for approval To be reported during the 4th Quarter - Gazetted the Amendment bill, 9 prov consulted Conclude NEDLAC Consultations.

PROGRAMME 2 (ENERGY PLANNING AND POLICY) (5) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) IRP updated with transmission and distribution infrastructure requirements No target for the quarter Achieved Draft IRP update published for public comment Amendments to the Electricity Regulation Act and the NER Act submitted for certification for deliberation by Parliament No target for the quarter - Internal processes are still underway.

PROGRAMME 2 (ENERGY PLANNING AND POLICY) (6) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) ISMO Bill promulgated To be reported in the 4th quarter - Bill submitted to Parliament Developed regulatory mechanisms and delivery model(s) relating to municipal distribution infrastructure Developed regulatory mechanisms and delivery model(s) for the pilot municipal infrastructure rehabilitation programme Achieved Document submitted to parliament for consideration Updated pricing policy framework documents No target for the quarter Completed during 1st quarter.

PROGRAMME 2 (ENERGY PLANNING AND POLICY) (7) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Promulgated Standard offer incentive scheme for solar water heaters and reducing energy in the building envelope No target for the quarter - Process of engagement with NERSA is still underway.

PROGRAMME 3 (ENERGY REGULATION)

PROGRAMME 3 (ENERGY REGULATION) (2) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Percentage of cases where enforcement notices are issued in cases where non-compliance is identified during routine compliance inspections Enforcement notices issued in 80% of cases where non-compliance is identified Achieved All enforcement notices issued where non-compliance were identified. Percentage of cases where enforcement notices are issued in cases where non-compliance is identified during fuel samples testing Enforcement notices issued in 95% of cases where non-compliance is identified Not achieved The Service Provider to test the fuel samples not yet appointed, Bids evaluations completed.

PROGRAMME 3 (ENERGY REGULATION) (3) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Percentage of licence applications approved that is with ownership of at least 50% BEE Will commence in 2014/15 N/A Percentage of arbitration requests finalised within the prescribed timeframes 100% Achieved  No arbitration requests received during the 3rd quarter. Revised Basic Fuel Price (BFP) Working Rules Process and Magisterial District Zones (MDZ). Submit Progress Report Not achieved Only two bidders submitted their proposals , to be re-advertised once.

PROGRAMME 3 (ENERGY REGULATION) (4) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Determine Benchmark Service Station (BSS) asset base Draft report on the BSS asset base Not achieved Only two bidders submitted their proposals and could pass the technical evaluation stage. It would be re-advertised once the BAC has approved the Bid Evaluation Committee report. Promulgation and Implementation of Biofuels pricing Framework -  

PROGRAMME 4 (ELECTRIFICATION AND ENERGY PROGRAMME MANAGEMENT)

PROGRAMME 4 (ELECTRIFICATION AND ENERGY PROGRAMME MANAGEMENT) (1) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Number of reports on the allocation of funding and monitoring of grid electrification of households projects in comparison to the electrification plan 1 report on the allocation of funding and monitoring of electrification of households projects in comparison to the electrification plan Achieved: Municipalities: Annual Planned: 86 356 Achieved to Date: 60 328 (including roll-overs). Eskom: Annual Planned: 157 839 Achieved to Date: 104 416 (including roll-overs). INEP is establishing the Projects Steering Committees for the intervention on under-performing municipalities, and also the project managers are assigned to perform the intervention as a corrective measure. Substations and MV lines can only be reported complete when energized; substations take longer to construct due to delays by long lead material, appointment of contractors and land approvals.

PROGRAMME 4 (ELECTRIFICATION AND ENERGY PROGRAMME MANAGEMENT) (2) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Number of reports on the allocation of funding and monitoring of non-grid connection projects in comparison to the electrification plan 1 report on the allocation of funding and monitoring of electrification of households projects in comparison to the electrification plan Achieved 7 684 non-grid connections out of a total 15 956 connections. Additional non-grid service providers were appointed to accelerate the rollout of the non-grid programme in rural and urbanized areas. The current connections rate is below planned, but with the additional service providers appointed and the increase rate of delivery by existing service providers the connection rate has improved.

Allocations 2013/14 (End Dec ’13) (R’000) Progress MUNICIPALITIES R 1 314 772 R360 064 PLANNED CONNECTIONS 86 356 19 213 (60 328) ESKOM (NATIONAL) R 2 141 027 R1 728 581 PLANNED CONNECTIONS 157 839 74 002 (104 416) NON - GRID R 86 400 R 46 222 15 956 7 684 TOTAL PLANNED CONNECTIONS 260 151 100 899 (172 428) TOTAL ALLOCATIONS R 3 542 199 R 2 134 867

PROGRAMME 4 (ELECTRIFICATION AND ENERGY PROGRAMME MANAGEMENT) (3) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Number of reports on the allocation of funding and monitoring of the establishment of integrated energy centres (IEC) in comparison to the integrated energy centre plan 1 reports on the allocation of funding and monitoring of electrification integrated energy centres in comparison to the integration energy centre plan Achieved Makwane IeC in Qwaqwa, Free State completed and start operating in beginning of December 2013, but not officially opened. A strategy is being developed for next years IeC progress.

PROGRAMME 4 (ELECTRIFICATION AND ENERGY PROGRAMME MANAGEMENT) (4) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Number of reports on progress made with regards to the construction and operation phases of IPP projects 1 reports on progress made with regards to the construction and operation phases of IPP projects Achieved: 56% of the construction of Bid Window 1 projects are completed at the end of December 2013. Bid Window 2 has only recently started, and shows approximately 2.4% completion against project plan

BID Window 1 Construction Progress Against Project Plan

BID Window 1 SED Progress

BID Window 2 Construction Progress Against Project Plan

BID Window 2 Progress SED Progress

PROGRAMME 5 (NUCLEAR ENERGY)

PROGRAMME 5 (NUCLEAR ENERGY) (2) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Level of implementation of actions based on the approved action plan resulting from the Mission Report of nuclear infrastructure review conducted Draft Self-Assessment Report Achieved - To commission an additional 9600 MW of nuclear energy into the grid by 2030 Establish Procurement Body in accordance with the approved process (if approved) Partially Achieved – request for establishment sent to NT in December 2013 Delayed approvals.

PROGRAMME 5 (NUCLEAR ENERGY) (3) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Strategy for Nuclear fuel cycle infrastructure development submitted to the decision making structures Recommendation on fuel cycle strategy at Working Group completed Partially Achieved – Recommended by DG and submitted to NT Addressing of comments at NESWG currently underway Established National Radioactive Waste Disposal Unit Framework to engage affected Necsa employees completed Partially Achieved – discussion on Framework commenced The Board of Directors has ben appointed. Discussions on Framework commenced in the interim.

PROGRAMME 5 (NUCLEAR ENERGY) (4) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Accounting and control of possession, acquisition, transportation, importation and exportation of nuclear material through consideration of 100% of authorisation applications within 8 weeks 100% authorisations considered within 8 weeks time period Partially Achieved – 90% 3 export authorisations were delayed as they await response from the key nuclear stakeholders. Number of nuclear safeguard compliance reports submitted to the relevant decision making structures 1 Achieved

PROGRAMME 5 (NUCLEAR ENERGY) (5) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Promulgated National Nuclear Regulator Amendment Act Public consultation Not Achieved Moved to 2014/15 Promulgated Nuclear Energy Amendment Act Demystifying nuclear energy through the number of public awareness campaigns and the number of community outreach events per annum No target for the quarter - Target to be reported during the 4th quarter

PROGRAMME 6 (CLEAN ENERGY)

PROGRAMME 6 (CLEAN ENERGY) (2) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Number of municipalities for which Energy consumption baselines have been developed - 10 energy consumption baselines received from municipalities

PROGRAMME 6 (CLEAN ENERGY) (2) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) National energy efficiency (NEE) strategy document submitted to Cabinet for approval - The review of the National Energy Efficiency Strategy document has been completed and the Cab Memo has been submitted for cabinet's considerations.

PROGRAMME 6 (CLEAN ENERGY) (3) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Energy conservation scheme (ECS) submitted to Parliament Consultation on the ECS with 10 industry companies representing the intensive energy users sector Partially achieved. Discussions were held with NERSA. A policy review has identified fatal flaws with the ECS philosophy and led to development of an alternative approach Policy review necessary due to lack of legal basis for implementing ECS

PROGRAMME 6 (CLEAN ENERGY) (3) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Feasibility study report on the Northern Cape Solar Park Concept - The final feasibility reports for both Solar Park sites (Prieska & Upington) to be submitted in January 2014.

PROGRAMME 6 (CLEAN ENERGY) (4) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Completed planning and contracting model for ensuring that the subsidised SWH units comply with the local content requirements Final planning and contracting model for ensuring that the subsidised SWH units comply with the local content requirement completed Achieved. A revised SWH contracting model was approved by DG and sent to Eskom. A Service Level Agreement (SLA) with SABS for Local Content Verification has been drafted. Cabinet Memo to be presented to update on progress

PROGRAMME 2 (ENERGY PLANNING AND POLICY) (6) KPI 3rd Quarter Target Performance Result Reason for variance and corrective action (if needed) Promulgated Standard offer incentive scheme for solar water heaters and reducing energy in the building envelope No target for the quarter Achieved. The Regulation for Allowance on Energy Efficiency Savings signed off by Minister of Finance in November, Launched on 4th December 2013 & promulgated on 9th Dec 2013. Standard Offer incentive as part of Revised Contracting Model

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