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

2. Outline
Comments
Observations
Governance issues
Minor improvements

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

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

5. 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

6. Governance issues

7. 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

8. 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

9. 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

10. 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

11. Minor improvements

12. 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

13. 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

14. 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.

15. 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

16. 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

17. Energy Regulator Implementation Plan

18. END