NERSA ANNUAL REPORT 2012/13

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NERSA ANNUAL REPORT 2012/13

Parliamentary Portfolio Committee on EnergyChairperson and Chief Executive Officer

15 October 2013

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PRESENTATION OUTLINE (1)A. Introduction

I. Stronger Governance and PerformanceII. Financially Sound Going ConcernIII. NERSA ... a credible, predictable and consistent Regulator...

B. Vision, Mission, Values and Regulatory PrinciplesC. MandateD. Strategic Plan (2012/13 – 2016/17)

I. Strategic Outcome Oriented GoalsII. Contribution to service delivery through link to the twelve National Outcomes

of Government III. Contribution to the National Development PlanIV. Contribution to the National Infrastructure PlanV. Contribution to the National Industrial Policy FrameworkVI. Strategic ObjectivesVII. Programmes

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PRESENTATION OUTLINE (2)

E. Performance Against Pre-Determined ObjectivesF. Achievements

I. Electricity Industry RegulationII. Piped-Gas Industry RegulationIII. Petroleum Pipelines Industry RegulationIV. Cross-Cutting RegulatoryV. Organisational

G. Financial PerformanceH. Audit OutcomesI. Staff AnalysisJ. International ActivitiesK. Conclusion

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A. INTRODUCTION

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INTRODUCTION

• The National Energy Regulator (NERSA), a Schedule 3A Public Finance Management Act, 1999 (Act No. 1 of 1999) Public Entity was established on 1 October 2005 in terms of the National Energy Regulator Act, 2004 (Act No. 40 of 2004) to regulate:o Electricity industry (Electricity Regulation Act, 2006 (Act No. 4 of

2006))o Piped-Gas industry (Gas Act, 2001 (Act No. 48 of 2001))o Petroleum Pipelines industry (Petroleum Pipelines Act, 2003

(Act No. 60 of 2003))• In executing its mandate NERSA endeavours to balance

the interest of both licensed entities and end users/consumers

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I. STRONGER GOVERNANCE AND PERFORMANCE • During its Term of Office, this Energy Regulator led the

organisation to stronger governance through:o Establishment of three Governance Subcommittees namely:

• Audit and Risk Committee; • Finance Committee; and • Human Resources and Remuneration Committee.

o Monitoring implementation of the King III Report on Corporate Governance;

o Annual Board assessment and review; o Strengthening the Board Secretariat function; ando Developed and implemented a Risk Management Framework.

• Performance of NERSA against planned activities increased from 66% in 2009/10 to 87% in 2012/13o Rigorous monitoring of implementation of planed activities;o Quarterly auditing of performance information; ando Stronger link between planning documents and performance contracts.

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II. FINANCIALLY SOUND GOING CONCERN

• This Energy Regulator is leaving NERSA as a financially sound institution that is a going concern

• This has been achieved through: o Establishment of a Finance Committee;o Approval of relevant finance related policies and procedures;o Comprehensive budgeting process that is linked to planned

activities and recently also to programmes;o Quarterly scrutiny of management accounts;o Regular audits in the financial management discipline; ando Dual role of Finance Committee and Audit and Risk Committee in

considering Annual Financial Statements.

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III. NERSA ... A CREDIBLE, PREDICTABLE AND CONSISTENT REGULATOR...

• Approved Regulatory Principles – all decisions made by the Energy Regulator are tested against these principles;

• All regulatory decisions are accompanied by a comprehensive Reasons for Decision;

• In excess of 90% of regulatory decisions were not questioned;

• Decisions of the Energy Regulator are benchmarked against international best practice;

• Impact of major decisions are researched; • Regulatory Methodologies between different industries

have been harmonised as far as legislatively possible; and• NERSA is embarking on a formal Regulatory Impact

Assessment.

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B. VISION, MISSION, VALUES AND REGULATORY

PRINCIPLES

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VISION

“To be a world-class leader in energy regulation”

MISSION

“To regulate the energy industry in accordance with government laws and policies, standards and international best practices in support of sustainable development”

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VALUES

• Passion • Spirit of Partnership • Excellence • Innovation • Integrity • Responsibility • Professionalism

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REGULATORY PRINCIPLES

Underpinned by NERSA’s legal mandate • Transparency • Neutrality • Consistency and Predictability• Independence • Accountability • Integrity• Efficiency

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C. MANDATE

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MANDATE (1)

NERSA’s Mandate is anchored in: • 4 Primary Acts:o National Energy Regulator Act, 2004 (Act No. 40 of 2004)o Electricity Regulation Act, 2006 (Act No. 4 of 2006)o Gas Act, 2001 (Act No. 48 of 2001) o Petroleum Pipelines Act, 2003 (Act No. 60 of 2003)

• 3 Levies Acts:o Gas Regulator Levies Act, 2002 (Act No. 75 of 2002)o Petroleum Pipelines Levies Act, 2004 (Act No. 28 of 2004) o Section 5B of the Electricity Act, 1987 (Act No. 41 of 1987)

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MANDATE (2)

• 3 Facilitating Acts:o Public Finance Management Act, 1999 (Act No. 1 of 1999)

(PFMA)o Promotion of Access to Information Act, 2000 (Act No. 2 of 2000)

(PAIA)o Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000)

(PAJA)

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D. STRATEGIC PLAN (2012/13 – 2016/17)

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I. STRATEGIC OUTCOME ORIENTED GOALS (1)

• Cascaded from the mandate and reflect the 12 National outcomes as well as those of the Department of Energy.

• These underscore NERSA’s role in facilitating the achievement of the national socio-economic and socio-political development agenda.

• The strategic outcome oriented goals are:1. To facilitate Security of Supply in order to support sustainable socio-

economic development in South Africa;

2. To facilitate investment in infrastructure in the energy industry to support sustainable socio-economic development in South Africa;

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I. STRATEGIC OUTCOME ORIENTED GOALS (2)

3. To promote competitive and efficient functioning of the energy industry in order to sustain socio-economic development in South Africa;

4. To facilitate affordability of and accessibility to the energy industry to balance economic interests of all stakeholders in support of socio-economic development of South Africa and a better life for all; and

5. To position and establish NERSA as a credible and reliable regulator in order to create regulatory certainty.

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II. CONTRIBUTION TO SERVICE DELIVERY THROUGH THE LINK TO THE

TWELVE NATIONAL OUTCOMES• The strategic outcome oriented goals of NERSA are linked

to the following of the 12 National outcomes: 2. A long and healthy life for all South Africans;

4. Decent employment through inclusive economic growth;

6. An efficient, competitive and responsive economic infrastructure network;

8. Sustainable human settlements and improved quality of household life;

10. Environmental assets and natural resources that are well protected and continually enhanced; and

12. An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship.

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OUTCOME 2: A LONG AND HEALTHY LIFE FOR ALL SOUTH AFRICANS

• NERSA contributes through: o Offering advice/comment with regards to cleaner fuels; o Driving renewable energy programmes and promoting the

introduction of renewables and gas into the energy mix; o In determining electricity pricing, NERSA set aside 3.2c/kWh in the

second Multi-Year Price Determination (MYPD2) for the Electrification Cross-subsidy;

o Taking affordability into consideration when setting and/or approving tariffs and prices;

o Implementing inclining block tariffs for electricity consumers; and o Regulating in a manner which facilitates security of supply.

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OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH

• NERSA contributes through: o Licensing and the setting and/or approving of tariffs and prices. In

this manner NERSA creates pre-conditions towards the achievement of this outcome;

o Issuing licences to eligible renewable energy operators to ensure that the socio-economic development commitments specified in the DoE bidding process are met; and

o Promoting companies that are owned and controlled by Historically Disadvantaged Individuals (HDIs) to become competitive.

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OUTCOME 6: AN EFFICIENT, COMPETITIVE AND RESPONSIVE ECONOMIC INFRASTRUCTURE

NETWORK

• NERSA contributes through: o Regulating in a manner which facilitates security of supply;o Setting rules and frameworks that facilitate the building of new

infrastructure;o Setting and/or approving cost reflective tariffs and prices that

encourage investment;o Facilitating 3rd party access to facilities; ando Monitoring compliance through undertaking technical audits leading

to regular maintenance and refurbishment of infrastructure.

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OUTCOME 8: SUSTAINABLE HUMAN SETTLEMENTS AND IMPROVED QUALITY OF

HOUSEHOLD LIFE

• NERSA contributes through: o Facilitating access to electricity / energy services;o Facilitating reliability of supply;o Monitoring maintenance of infrastructure;o Compliance monitoring to licence conditions; ando Dispute resolution, including mediation, arbitration and handling of

complaints.

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OUTCOME 10: ENVIRONMENTAL ASSETS AND NATURAL RESOURCES THAT ARE WELL

PROTECTED AND CONTINUALLY ENHANCED

• NERSA contributes through: o Incorporating compliance with the National Environmental

Management Act, 1998 (Act No. 107 of 1998) into licence conditions;o Promoting energy efficiency in general in South Africa and in

particular in the NERSA building;o We have concurred with determinations made by the Minister of

Energy in line with section 34 of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) regarding Open Cycle Gas Turbines in order to give effect to the Integrated Resource Plan (IRP);

o Monitoring the implementation of the IRP; ando Facilitating the transition to a low carbon economy.

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OUTCOME 12: AN EFFICIENT, EFFECTIVE AND DEVELOPMENT ORIENTED PUBLIC SERVICE AND

AN EMPOWERED, FAIR AND INCLUSIVE CITIZENSHIP

• NERSA contributes through: o Transparent Processes;o All Decisions and Reasons thereof are made public through being

published on the NERSA web site;o The Public is invited to make comments prior to decisions being

made (written or in public hearing); o Customer education;o Training and development of staff and stakeholders;o Clean Energy Education and Empowerment; ando Corporate Social Investment – Luvuyo House.

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III. CONTRIBUTION TO NATIONAL DEVELOPMENT PLAN

• NERSA contributes to the following enabling milestones from the NDP: 4. Establish a competitive base of infrastructure, human resources and

regulatory frameworks;

6. Broaden ownership of assets to historically disadvantaged groups; and

10. Produce sufficient energy to support industry at competitive prices, ensuring access for poor households, while reducing carbon emissions per unit of power by about one third.

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MILESTONE 4: ESTABLISH A COMPETITIVE BASE OF INFRASTRUCTURE, HUMAN RESOURCES AND

REGULATORY FRAMEWORKS (1)• NERSA contributes through (1):

o Publication of rules, codes and guides for the regulation of the electricity, piped-gas and petroleum pipelines industries;

o Setting rules and frameworks that facilitate the building of new infrastructure;

o Setting and/or approving cost reflective tariffs and prices that encourage investment;

o Facilitating 3rd party access to facilities; o Monitoring compliance through undertaking technical audits leading

to regular maintenance and refurbishment of infrastructure;o Transparent Processes;o All Decisions and Reasons thereof are made public through being

published on the NERSA web site;

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MILESTONE 4: ESTABLISH A COMPETITIVE BASE OF INFRASTRUCTURE, HUMAN RESOURCES AND

REGULATORY FRAMEWORKS (2)

• NERSA contributes through (2): o The Public is invited to make comments prior to decisions being

made (written or in public hearing); ando Customer education.

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MILESTONE 10: PRODUCE SUFFICIENT ENERGY TO SUPPORT INDUSTRY AT COMPETITIVE PRICES, ENSURING ACCESS FOR POOR

HOUSEHOLDS, WHILE REDUCING CARBON EMISSIONS PER UNIT OF POWER BY ABOUT ONE-

THIRD (1)• NERSA contributes through (1):

o Offering advice/comment with regards to cleaner fuels; o Driving renewable energy programmes and promoting the introduction

of renewables and gas into the energy mix; o In determining electricity pricing, NERSA set aside 3.2c/kWh in the



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THIRD (2)• NERSA contributes through (2):

o Implementing inclining block tariffs for electricity consumers; o Regulating in a manner which facilitates security of supply;o Incorporating compliance with the National Environmental

Management Act, 1998 (Act No. 107 of 1998) into licence conditions;o Promoting energy efficiency in general in South Africa and in

particular in the NERSA building;

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THIRD (3)

• NERSA contributes through (3): o NERSA has concurred with determinations made by the Minister of

Energy in line with section 34 of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) regarding Open Cycle Gas Turbines in order to give effect to the Integrated Resource Plan (IRP);


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IV. CONTRIBUTION TO NATIONAL INFRASTRUCTURE PLAN

• NERSA contributes to the following Strategic Integrated Projects (SIPs) from the NIP: 8. Green energy in support of the South African economy;

9. Electricity generation to support socio-economic development; and

10. Electricity transmission and distribution for all.

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SIP 8: GREEN ENERGY IN SUPPORT OF THE SOUTH AFRICAN ECONOMY

• NERSA contributes through: o Offering advice/comment with regards to cleaner fuels; o Driving renewable energy programmes and promoting the

introduction of renewables and gas into the energy mix; o Incorporating compliance with the National Environmental

Management Act, 1998 (Act No. 107 of 1998) into licence conditions;

o NERSA has concurred with determinations made by the Minister of Energy in line with section 34 of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) regarding Open Cycle Gas Turbines in order to give effect to the Integrated Resource Plan (IRP);


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SIP 9: ELECTRICITY GENERATION TO SUPPORT SOCIO- ECONOMIC DEVELOPMENT

• NERSA contributes through: o Regulating in a manner which facilitates security of supply;o Setting rules and frameworks that facilitate the building of new

infrastructure;o Setting and/or approving cost reflective tariffs and prices that

encourage investment;o Facilitating 3rd party access to facilities; ando Monitoring compliance through undertaking technical audits leading

to regular maintenance and refurbishment of infrastructure.

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SIP 10: ELECTRICITY TRANSMISSION AND DISTRIBUTION FOR ALL

• NERSA contributes through: o In determining electricity pricing, NERSA set aside 3.2c/kWh in the



o Implementing inclining block tariffs for electricity consumers; o Facilitating access to electricity / energy services;o Facilitating reliability of supply;o Monitoring maintenance of infrastructure;o Compliance monitoring to licence conditions; ando Dispute resolution, including mediation, arbitration and handling of

complaints.

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V. CONTRIBUTION TO NATIONAL INDUSTRIAL POLICY FRAMEWORK

• NERSA contributes to the following Strategic Integrated Projects (SIPs) from the NIP: o Leverage procurement; o Sectors:

• Metal fabrication, capital equipment and transport equipment; and

• Green Industries.

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LEVERAGE PROCUREMENT

• NERSA contributes through: o Key elements of the coal-fired electricity build programme procured

by Eskom;o Key elements of the nuclear electricity build programme procured

by Eskom; ando Key elements of the Transnet National Ports Authority and PetroSA

procurement programmes.

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SECTORS - METAL FABRICATION, CAPITAL EQUIPMENT AND TRANSPORT EQUIPMENT

• NERSA contributes through: o Implementation of Energy Efficiency Programme through a

combination of minimum energy performance requirements and compulsory labeling requirements for appliances.

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SECTORS - GREEN INDUSTRIES

• NERSA contributes through: o Ongoing gradual increment of local content requirements with every

successive Renewable Energy Independent Power Producer Procurement Programme bidding round; and

o Input into the tender and Public Private Partnership specifications to ensure localisation in renewable energy bids.

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VI. STRATEGIC OBJECTIVES

• A Regulatory environment that facilitates investment in energy infrastructure;

• Ensuring energy supply that is certain and secure for current and future user needs;

• Ensure that fair competition exists within the energy industry;

• Ensure that regulatory certainty exists within the energy industry;

• Ensure that energy is accessible and affordable for all citizens; and

• Ensure that NERSA is established and positioned as a credible and reliable regulator.

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VII. PROGRAMMES

• In order to achieve its outcome oriented goals NERSA will deliver on its strategic objectives through the following structured programmes:1. Setting and/or approving tariffs and prices;

2. Licensing and registration;

3. Compliance monitoring and enforcement;

4. Dispute resolution including mediation, arbitration and the handling of complaints;

5. Setting of rules, guidelines and codes for the regulation of the three industries; and

6. Establishing NERSA as an efficient and effective regulator.

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E. PERFORMANCE AGAINST PREDETERMINED OBJECTIVES

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PERFORMANCE AGAINST PREDETERMINED OBJECTIVES

Executed As Planned

Not Executed As PlannedExternal Dependencies

Internal Constraints

2011/12 2012/13 2011/12 2012/13 2011/12 2012/13

Electricity 63% 79% 25% 21% 12% 0%

Piped-Gas 73% 86% 11% 5% 16% 9%

Petroleum Pipelines

85% 90% 9% 5% 7% 5%

Cross-cutting Regulatory

58% 100% 12% 0% 31% 0%

Organisational 54% 86% 0% 0% 46% 14%

Total 66% 87% 9% 8% 25% 5%

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F. ACHIEVEMENTS

I. ELECTRICITY INDUSTRY REGULATION (1)

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Tariffs Generation

Approved an average annual increase of 8% in the revenue requirements for Eskom for the next five years

Approved all 47 Renewable Energy Generation licences

Approved 183 out of 186 (98%) municipal and private distributor tariffs

Approved all 7 licences under the Short Term Power Purchase Programme (STPPP) as part of the short term mitigation programme during maintenance of Eskom generation fleet

Approved:•Revised Inclining Block Tariff Structure•Eskom’s retail tariff structure adjustments for 2013/14•2013/14 schedule of Eskom’s standard tariffs•Free Basic Electricity Rate for 2013/14•Eskom’s Regulatory Financial Report for 201/12

Liaised with Ekhurhuleni Municipality to introduce a resale tariff

Approved the Renewable Energy Grid Code

Liaised with Kouga Municipality to rezone Loerie Farm area – customers can now convert to prepaid meters

I. ELECTRICITY INDUSTRY REGULATION (2)

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Distribution Other

9 distribution licences were issued for connection facilities between the Eskom delivery point and IPP generation facilities

Assessed and concurred with three determinations of the Minister of Energy in terms of Section 34 of the Electricity Regulation Act

Revoked 1 and amended 2 licences Completed: •Evaluation of all Energy Efficiency and Demand Side Management programmes for funding •Assessment of Eskom Integrated Demand Management annual performance (2011/12)•Evaluation of transmission plans to determine regulatory asset base

Completed the evaluation of distribution network planning audit in terms of the distribution plans submitted

Published 1st bulletin on monitoring of Renewable Energy Performance: Analysis of First Window Independent Power Producer Projected Performance

II. PIPED-GAS INDUSTRY REGULATION (1)

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Pricing and Tariffs Other

Approved the maximum prices of piped-gas for Sasol Gas for 3 years

Conducted 9 investigations and issued 1 notice of non-compliance

Approved the transmission tariffs for Sasol Gas for 2014/15

Issued 2 non-compliance notices to Sasol Gas

Approved ROMPCO transmission tariff for volumes >120mGJ

Conducted compliance inspections on 23 licensed facilities in KZN

Approved Lily Pipeline tariff for 2012/13 Conducted 13 stakeholder workshops

Approved:•Price cap•Maximum prices•Aggregate prices for each province•Starting Regulatory Asset Base for Sasol Gas•Procedures for assessing maximum price applications•Procedures for assessing applications for transmission and storage tariffs

Approved procedures for NERSA’s participation at the Competition Tribunal’s proceedings

II. PIPED-GAS INDUSTRY REGULATION (2)

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Licences

III. PETROLEUM PIPELINES INDUSTRY REGULATION

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Pricing and Tariffs

Other

Approved an increase of 8.53% in allowable revenue for Transnet Petroleum Pipelines for the period 2013/14

Investigated 160 suspected unlicensed activities of which 54 have been resolved an 106 are still in progress

Considered 52 storage tariff applications – approved 22 and did not approve 30

IV. CROSS-CUTTING REGULATORY

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Establishing NERSA as an efficient and effective Regulator

Hosted the first South African Energy Regulators Conference in August 2012

Approved a report on the harmonisation of tariff methodologies

V. ORGANISATIONAL

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Establishing NERSA as an efficient and effective Regulator

Unqualified audit

As Chair of the Regional Electricity Regulatory Association (RERA) participated in the 10 th Anniversary Celebrations of RERA in Windhoek, Namibia in November 2012

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G. FINANCIAL PERFORMANCE

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FINANCIAL PERFORMANCE (1)

• Actual levies collected amounted to R204.2 million, received from the following sources: o Electricity industry – R106.1 milliono Piped-Gas industry – R56.1 milliono Petroleum Pipelines industry – R42.0 million

• The under recovery of the levies, compared to the budget is due to the actual volumes of product transported being below the volumes projected by the industry.

• The actual expenditure for the period 1 April 2012 to 31 March 2013 amounted to R 198.4 million. This represents an underspending of 14.6% compared to the budgeted amount of R231.3 million.


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Actual Budget Variance

REVENUE 209 046 460 217 026 003 (7 979 543)

Levy Income 204 224 414 211 926 003 (7 701 589)

Other Income 4 822 046 5 100 000 (277 954)

EXPENDITURE 198 369 816 231 304 744 32 934 929

Remuneration 121 839 451 144 296 529 20 457 078

Other operating costs 63 456 071 62 297 278 1 158 793

Consultants 13 074 294 24 710 937 11 636 643

Net Surplus/(Deficit) for the period 10 676 644 (14 278 741) 24 955 385


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• Total irregular expenditure not yet condoned at year end was R2.77 million and fruitless and wasteful expenditure was R1 222.00;

• The Audit and Risk Committee: o considers the quarterly management reports and

unaudited annual financial statements;o reviews the audited financial statements included in the

annual report; ando monitors on a quarterly basis the implementation of

agreed action plans on the findings by the Auditor General.

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H. AUDIT OUTCOMES

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AUDIT OUTCOMES • NERSA has never received a qualified audit;• Matter of Emphasis: restatement of corresponding figures

(corresponding figures for 2011/12 have been restated as a result of errors discovered during 2012/13;o Ensure all supporting documents attached before payment of

invoiceso SARS busy with reconciliation to determine if and how much money

is owed by NERSA

• Asset Managemento Verification of assets will be done twice a year;o Reconciliation between the Fixed Asset Register and the General

Ledger will be done on a monthly basis; ando Re-assessment of useful asset useful life’s will be conducted by end

of January 2014.

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I. STAFF ANALYSIS

STAFF ANALYSIS (1)

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STAFF ANALYSIS (2)

• Total staff complement = 180 (including Full-time Regulator Members)

• Total strength = 159 (90%)• Vacancies = 21 (10%)• Resignations = 13• Appointments = 22• Employment of people with disabilities = 2

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J. INTERNATIONAL ACTIVITIES

REGIONAL ELECTRICITY REGULATORY ASSOCIATION OF SOUTHERN AFRICA (RERA)

• NERSA is the Current Chair and Member of the Executive Committee of RERA

• RERA Objectives:o Capacity Building and Information Sharing;o Facilitation of Electricity Supply Industry Policy, Legislation and

Regulations; ando Regional Regulatory Cooperation.

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RERA MEMBERSHIP• Angola - Institute for Electricity Sector Regulation (IRSE);• Lesotho - Lesotho Electricity and Water Authority (LEWA);• Malawi - Malawi Energy Regulatory Authority (MERA);• Mozambique - National Electricity Advisory Council (CNELEC);• Namibia - Electricity Control Board (ECB);• South Africa - National Energy Regulator of South Africa (NERSA);• Swaziland – Swaziland Energy Regulatory Authority (SERA);• Tanzania - Energy & Water Utilities Regulatory Authority (EWURA);• Zambia - Energy Regulation Board (ERB); and• Zimbabwe - Zimbabwe Energy Regulatory Authority (ZERA)

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AFRICAN FORUM FOR UTILITY REGULATORS (AFUR)

• NERSA is a member of AFUR EXCO and Energy Sectoral Committee; and

• AFUR focuses on issues related to the regulation of the Energy, Telecommunications, Transport , Water and Sanitation Sectors

• AFUR Objectives:o Information sharing;o Capacity building; ando Harmonisation of regulatory policies and legislation.

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ETHIOPIA - ObserverUGANDA

KENYATANZANIA

MALAWIZAMBIA

ZIMBABWENAMIBIA

MOZAMBIQUESOUTH AFRICA

LESOTHO

RWANDA - ObserverNORTH SUDAN - Observer

ALGERIA

MAURITANIANIGERMALISENEGALGAMBIABURKINO FASA

COTE D’IVOIRE

GHANATOGO NIGERIACAMEROON

ANGOLA - observerBENINDRC - Observer

AFUR MEMBERSHIP

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K. CONCLUSION

CONCLUSION (1)• NERSA would like to thank the Parliamentary Portfolio Committee

for the opportunity to present its Annual Report 2012/13; • NERSA continues to grow from strength to strength since its

inception in 2005. • The results of its work continue to have a profound impact on the

lives of ordinary people as well as on the economy of the country; • The regulation of the three energy industries characteristically

continues to pose challenges in that the Energy Regulator is required to balance the conflicting interests of licensees, investors, consumers/end-users and the policy maker;

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CONCLUSION (2)

• NERSA has achieved its regulatory mandate through key performance indicators set for the 2012/2013 financial year – it achieved 87% of its targets for 2012/13;

• The staff turnover has stabilised over the years; • NERSA is a viable entity and is still operating as a going

concern; and• To deal with regulatory challenges, NERSA has

undertaken various initiatives to refine regulatory practices and methodologies in its quest to become a world-class leader in energy regulation and will continue to do so. 72

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THANK YOUvisit us at www.nersa.org.za

NERSA ANNUAL REPORT 2012/13

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