2011/12 FINANCIAL PERFORMANCE TRANSFER PAYMENTS SCHEDULE - 2011/2012 BUDGET OVERVIEW FOR 2012/2013

DEPARTMENT OF ENERGY2012/13 BUDGET OVERVIEW

Presentation to the Select Committee on Economic Development

Office of Chief Financial Officer

24 April 2012

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• 2011/12 FINANCIAL PERFORMANCE

• TRANSFER PAYMENTS SCHEDULE - 2011/2012

• BUDGET OVERVIEW FOR 2012/2013

• TRANSFER PAYMENTS SCHEDULE - MTEF

PRESENTATION OUTLINE

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Financial Performance as at 31 March 2012 –per Economic Classification

SCHEDULE AS AT 31 MARCH 2012

Vote 29: Energy Adjusted Budget

YTD Actual

expenditureYTD

VARIANCE

R'000 R'000 R'000

TOTAL: ENERGY

6,200,909

6,174,345

26,564

Compensation of employees

187,537 184,855 2,682

Goods and Services

162,260 156,363 5,897

Financial Transactions Assets & Liabilities

-

5 -5

Transfers and subsidies

5,841,947

5,828,872 13,075

Payments for Capital Assets 9,165

4,250 4,915

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YTD Performance• The Actual amount spent by the Department is a total of

R6,174 million or 99.6% of its total 2011/12 adjusted appropriation of R6,201 million

• A total of R13.1 million or 49% of the overall balance of R26.6 million remaining belongs to the Transfer payments economic classification

• The composition of the overall balance of R26.6 million is as follows:

Compensation of Employees :R2.7 million Goods & Services :R5.9 million Transfer Payments :R13.1 million Capital Assets :R4.9 million

Performance Overview

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YTD PerformanceCompensation of Employees• The R2.7 million balance in this category is due to an amount

of R3 million reclassified from Transfer payments to provide for the setting up of the IPP unit.

• The necessary processes to set up the unit could not be completed by the 31st of March 2012

• Most of this balance will be transferred to the Goods & Services category to defray excess expenditure, within the virement rules

Goods & Services• Although an under spend of R5.9 million reflected in the DoE

books as at 31 March 2012, the DoE had processed payments for International membership fees to a total of R8.1 million

• These payments remained in the Department’s Commitments awaiting the release of the foreign funds by the Reserve bank


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YTD PerformanceGoods & Services• The Department received confirmation that the foreign funds

were transferred by the Reserve bank to the relevant foreign recipients on the 2nd & 3rd of April 2012

• The Department is expecting a roll over into the 2012/13 financial year for the above costs

Transfer Payments• An amount of R11.8 million or 90% of the overall balance of

R13.1 million within this category is attributable to funding specifically appropriated for the EDI-H

• The Department could not authorise transfers to the EDI-H due to sufficient funding which remained in the EDI-H books


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YTD Performance

Transfer Payments• A reclassification request submitted to the National Treasury

requesting permission to utilise these EDI-H funds for DoE’s relocation costs was declined

• The above was declined as it was in contravention of S43 of the PFMA which prescribe a specific limit to the value of up to 8% from one programme to another

• The Department’s application to be exempted from the limit prescribed in S43 was also declined

CAPEX• Funds earmarked for capital assets could not be spent due to

the delay of the DoE relocation. A request for a rollover of these funds will be submitted to National Treasury


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Financial Performance as at 31 March 2012 –per Programme


Vote 29: Energy Adjusted Budget

YTD Actual

expenditureYTD

VARIANCE

R'000 R'000 R'000

TOTAL: ENERGY

6,200,909

6,174,345

26,564

Administration

209,385

196,407

12,978

Energy Policy and Planning

1,544,708 1,545,323

(615)

Energy Regulation

540,386

529,591

10,795

National Electrification Programme 3,264,555

3,264,540

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Nuclear Energy and Regulation 641,875

638,484

3,391

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TRANSFER PAYMENTS SCHEDULE – 2011/12


Programme Proj & Entities Available Budget

YTD Actual Expenditure

YTD VARIANCE

R’000 R’000 R’000 Programme 2 Transnet Pipelines 1,500,000 1,500,000 0

Programme 3 EEDSM - Municipalities 280,000 280,000 0 EEDSM – Eskom 118,800 118,800 0 REFSO 20,191 20,191 0 EDIH 11,758 0 11,758 WORKING FOR ENERGY 25,000 25,000 0

SANEDI 20,100 20,100 0

Programme 4 INEP - Municipalities 1,096,611 1,096,611 0 INEP - Eskom 1,737,813 1,737,811 2 INEP – Non-grid 127,861 127,860 1 LOC 2010 WC 282,000 281,000 1,000

Programme 5 NNR 35,430 35,430 0 NECSA 586,034 586,034 0

Programme 1 Households

349

35 314 Total Transfers 5,841,947 5,828,872 13,075

BUDGET OVERVIEW PER PROGRAM FOR 2012/13

2011/12 AdjustedBudgetR’000

12/13 MTEF

allocationR’000

13/14 Indicative Baseline

R’000


R’000

Program 6,200,909 6,805,903 6,389,935 7,008,524

Administration 198,140 181,745 184,087 193,702

Energy Policy & Planning 1,544,708 1,541,548 75,213 79,737

Energy Regulation 551,631 1,350,028 2,067,180 2,375,276

National Electrification Program

3,264,555 3,136,294 3,410,148 3,706,096

Nuclear Energy and Regulation

641,875 596,288 653,307 653,713

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DoEMTEF ALLOCATION OVERVIEW


Vote 29: Energy

11/12 Adjusted

Appropriation12/13 MTEF Allocation

13/14 MTEF Allocation


R’000 R'000 R'000 R'000

Administration 6,200,909 6,805,903 6,389,935 7,008,524

Compensation of employees 183,317 196,260 222,855 236,475

Goods and Services 148,223 111,014 193,037 202,596

Transfers and subsidies 5,861,467 6,493,557 5,969,142 6,564,258

Payments for Capital Assets 7,902 5,072 4,901 5,195

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Programme 1: AdministrationMTEF ALLOCATION OVERVIEW


Vote 29: Energy

11/12 Adjusted




R’000 R'000 R'000 R'000

Administration 198,140 181,745 184,087 193,702


83,311 90,521 88,588 94,153

Goods and Services 106,578 85,782 90,238 93,972


349 370 360 382

Payments for Capital Assets

7,902 5,072 4,901 5,195

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Programme 2: Energy Policy and PlanningMTEF ALLOCATION OVERVIEW


Vote 29: Energy

11/12 Adjusted

Appropriation




R’000 R'000 R'000 R'000

Energy Policy and Planning 1,544,708 1,541,548 75,213 79,737


30,355 32,604 44,565 47,238

Goods and Services

14,353 8,944 30,648 32,499


1,500,000 1,500,000 - -


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Programme 3: Energy RegulationMTEF ALLOCATION OVERVIEW


Vote 29: Energy

11/12 Adjusted




R’000 R'000 R'000 R'000

Energy Regulation 551,631 1,350,028 2,067,180 2,375,276


47,232 49,594 64,605 68,481

Goods and Services

9,030 9,949 52,231 55,110


495,369 1,290,485 1,950,344 2,251,685


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Programme 4: National Electrification ProgrammeMTEF ALLOCATION OVERVIEW


Vote 29: Energy

11/12 Adjusted




R'000 R'000 R'000

National Electrification Programme 3,264,555 3,136,294 3,410,148 3,706,096


14,965 15,713 15,230 16,144

Goods and Services

5,305 3,370 6,398 6,770


3,244,285 3,117,211 3,388,520 3,683,182


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-

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Programme 5: Nuclear Energy and RegulationMTEF ALLOCATION OVERVIEW


Vote 29: Energy11/12

Adjusted Appropriation




R’000 R'000 R'000 R'000

Nuclear Energy and Regulation 641,875 596,288 653,307 653,713


7,454 7,828 9,867 10,459

Goods and Services

12,957 2,969 13,522 14,245


621,464 585,491 629,918 629,009

Payments -Capital Assets

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- -

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TRANSFER PAYMENTS –MTEF ALLOCATION OVERVIEW

Programme Proj & Entities

11/12 Adjusted Budget

12/13 MTEF

Allocation



R’000 R’000 R’000 R’000Programme 2 Transnet Pipelines 1,500,000 1,500,000 0 0

Programme 3 EEDSM - Municipalities 280,000 200,000 200,000 200,000 EEDSM – Eskom 118,800 1,000,000 1,700,000 2,000,000 REFSO 20,191 40,375 0 0 EDIH 11,758 0 0 0 WORKING FOR ENERGY 25,000 0 0 0

SANEDI 20,100 50,110 50,344 51,685

Programme 4 INEP - Municipalities 1,096,611 1,151,443 1,314,772 1,487,658 INEP - Eskom 1,737,813 1,879,368 1,982,596 2,098,903 INEP – Non-grid 127,861 86,400 91,152 96,621 LOC 2010 WC 282,000 0 0 0

Programme 5 NNR 35,430 30,912 31,677 34,384 NECSA 586,034 554,579 564,325 582,323

International Obligations 33,916 12,302

Programme 1 Households

349

370 360 382 Total Transfers 5,841,947 6,493,557 5,969,142 6,564,258

Documents

2011/12 FINANCIAL PERFORMANCE TRANSFER PAYMENTS SCHEDULE - 2011/2012 BUDGET OVERVIEW FOR 2012/2013