National Energy Regulator Bill

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Presentation transcript:

National Energy Regulator Bill Presentation to Parliamentary Portfolio Committee by Department of Minerals and Energy 17 August 2004

Outline Comments Observations Governance issues Minor improvements

Petroleum Pipelines Act THE CONCEPT National Energy Regulator Electricity Act Petroleum Pipelines Act Gas Act

Comment Stakeholder submissions appreciated Support from major organisations much appreciated Many useful points A few misunderstandings

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 issues

Governance CONCERN RESPONSE CEO/No. of full time regulators CEO votes. 4 full time + 5 part time = 9 Appointment Minister Gender “broadly representative including gender and race” Designation CEO+gas, electricity & pipelines, “primarily responsible” 3 full time not reporting to CEO To Regulator, not to CEO

Governance contd. CONCERN RESPONSE Day to day management CEO responsibility Resources (personnel and/or other for full-time members) CEO recommends Regulator determines from time to time Quorum 4 or half whichever is greater

Governance contd. CONCERN RESPONSE Quorum for extended sessions? (e.g. hearings, tribunal) Appoint sub committees, delegate duties and functions BUT Provisions of Act apply (transparency, guidance) Accountability remains with Regulator Dual review/appeal routes Review by High Court, repeal Section 21 of Electricity Act

Governance contd. Eligibility part-timers: Preclude public servants? CONCERN RESPONSE Eligibility part-timers: Preclude public servants? Minister appoints board Continuity/Term of office Elec Act – no period ICASA - Chair 5 yrs, coucillors 4 yrs Competition Tribunal members – 5 years. Proposal: 4 yrs part time, 5 yrs full time

Minor improvements

Minor improvements (1) Energy Regulator: Short Title “National Energy Regulator” “Other agreements” – deleted “Unsound mind”: courts familiar with this term Offences “dishonesty” – criminal sentence 12mths, after 27th April 1994 Chair not present – those present elect

Minor 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” Roll over of temporary appointment: dealt with

Minor improvements (3) Notifying public of meetings/agenda: Regulator must make rules Act in interests of? “of all South Africans/the public“ Present views at own expense: “except in so far as money appropriated by Parliament under separate legislation for this purpose is available” Use of persons in other regulators: appoint deleted – only make use of.

Minor 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

Minor 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”; NER decisions in force: carried over

Energy Regulator Implementation Plan

END