National Energy Act

10. M e e t i n gs of Board of South African National Energy D e v e l o p m e nt Institute 11. Chief E x e c u t i ve Officer of South African National Energy D e v e l o p m e nt Institute South African National Energy D e v e l o p m e nt Institute e m p l o y e es and c o n d i­ tions of service Transitional provisions Funding of South African National Energy D e v e l o p m e nt Institute A c c o u n t i ng and auditing at South African National Energy D e v e l o p m e nt Institute Discoveries, inventions and i m p r o v e m e n ts 12. 13. 14. 15. 16. C H A P T ER 5 S E C U R I TY OF S U P P LY 17. 18. Acquisition and maintenance of National Strategic energy feedstocks and carriers I n v e s t m e nt in and m a i n t e n a n ce of energy infrastructure C H A P T ER 6 G E N E R AL P R O V I S I O NS 19. 20. R e g u l a t i o ns Offences and penalties 2 1. Short title and c o m m e n c e m e nt C H A P T ER 1 D E F I N I T I O NS A ND O B J E C TS Definitions

1. In this Act. unless the context indicates o t h e r w i s e— information and " B o a r d" m e a ns the Board of the South African National E n e r gy D e v e l o p m e nt Institute c o n t e m p l a t ed in section 8; " D e p a r t m e n t" m e a ns the Department of Minerals and E n e r g y: " e n e r gy c a r r i e r" m e a ns a substance or system that m o v es or carries energy in a usable form from one place to another: " e n e r gy d a t a" m e a ns energy-related statistics, facts, figures, records of the energy industry and all other e c o n o m ic sectors; " e n e r gy efficiency" m e a ns economical and efficient production and utilisation of an energy carrier or resource: " e n e r gy f e e d s t o c k s" m e a ns any substance used or that can be used as a raw material in an industrial process producing energy: " e n e r gy i n f r a s t r u c t u r e" m e a ns public and privately o w n ed physical structures which are used for the production, transformation, conversion, transportation or distribution of energy carriers: " e n e r g y - r e l a t ed s e c t o r s" m e a ns all sectors which are impacted by or h a ve an impact on the energy sector; " e n e r gy r e s o u r c e" m e a ns non-value added material or mineral that can be used to produce energy or be converted to an energy carrier; "free basic e l e c t r i c i t y" m e a ns a limited free a m o u nt of electricity supply d e e m ed necessary typical p o or h o u s e h o ld as d e t e r m i n ed from lime to lime; " g r e e n h o u se g a s e s" mean gases present in the a t m o s p h e r e, w h i ch reduce the loss of heal into space and thereby contributing to an increase in global t e m p e r a t u r es through a process k n o wn as the g r e e n h o u se effect; " I n t e g r a t ed E n e r gy P l a n" m e a ns the national energy plan c o n t e m p l a t ed section 6, approved by Cabinet and published in the Gazette by the Minister; " M i n i s t e r" m e a ns the Minister of Minerals and Energy; " o r g an of the s t a t e" m e a ns an organ of stale as defined in section 2 39 of the Constitution; to support basic energy services of a in Act No. 34, 2008 NATIONAL ENERGY ACT. 2008 " p r e s c r i b e d" m e a ns prescribed by regulation: " P r o m o t i on of A c c e ss to I n f o r m a t i on A c t" m e a ns the P r o m o t i on of A c c e ss to Information Act, 2 0 00 (Act No. 2 of 2000); " P u b l ic F i n a n ce M a n a g e m e nt A c t" m e a ns the Public Finance M a n a g e m e nt Act, 1999 (Act N o. 1 of 1999): " r e g u l a t i o n" m e a ns any regulation m a de in terms of this Act; " r e n e w a b le e n e r g y" m e a ns energy generated non-depleting resources including solar energy, wind energy, b i o m a ss energy, biological w a s te energy, h y d ro energy, geothermal energy and ocean and tidal energy; and "this A c t" includes regulations m a de in terms of this Act. from natural O b j e c ts of Act

2. T he objects of this Act are t o— (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) supply, relating to energy information for optimal ensure uninterrupted supply of energy to the R e p u b l i c; p r o m o te diversity of supply of energy and its s o u r c e s; facilitate effective m a n a g e m e nt of energy d e m a nd and its conservation; promote energy research; p r o m o te appropriate standards and specifications for the e q u i p m e n t, s y s t e ms and processes used for producing, supplying and c o n s u m i ng energy; ensure collection of data and transportation and d e m a n d; provide transportation, storage and transformation, d e m a nd of energy that are planned, organised and i m p l e m e n t ed in a c c o r d a n ce with a balanced consideration of security of supply, e c o n o m i c s, c o n s u m er protection and a sustainable d e v e l o p m e n t; provide for certain safety, health and e n v i r o n m e nt matters that pertain energy: facilitate energy access for i m p r o v e m e nt of the quality of life of the p e o p le of Republic; c o m m e r c i a l i se energy-related technologies; ensure effective planning for energy supply, transportation and c o n s u m p t i o n: and contribute to sustainable d e v e l o p m e nt of South Africa's e c o n o m y. supply, to C H A P T ER 2 E N E R GY S U P P L Y, O P T I M I S A T I ON A ND U T I L I S A T I ON Provision of d a ta a nd access to data s o u r c es 3. (1) T he Minister must establish m e c h a n i s ms to e n s u r e— (a) (b) provision of any data and information reasonably required for the p u r p o s es of conducting analysis required for energy planning from any person and the time period for the provision of such data and information, w h e re such data is not already m a de available to any other public institution: and connection to any data and information m a n a g e m e nt system, or any other system within the public administration, for the acquisition of energy data and information, in a c c o r d a n ce with the P r o m o t i on of A c c e ss to Information Act and the Statistics Act, 1999 (Act N o. 6 of 1999) where such data or information is collected by that public institution. (2) T he Minister may, for the p u r p o se of ensuring optimal collection of data, subject to observation of confidentiality of information in the possession of a particular entity, permit sharing of information with any other entity within and outside of the b o u n d a r i es of the R e p u b l i c. Act No. 34, 2008 NATIONAL ENERGY ACT. 2008 (3) T he information provided under this Act that is not already in the public d o m a in may only be supplied to persons outside of the D e p a r t m e nt subject to the provisions of the Promotion of A c c e ss to Information Act. (4) T he Minister m u st establish m e c h a n i s ms t o— collect, collate and analyse energy data and information: (a) (b) m a n a ge energy data and information; and (c) avail, in a m a n n er prescribed, energy statistics and energy information to the public. (5) T he Minister must annually publish an a n a l y s i s— (a) (b) (c) r e v i e w i ng energy d e m a nd and supply for previous year; forecasting energy supply and d e m a nd for no less than 20 years; and of plausible energy scenarios of h ow the future energy d e m a nd and supply landscape could look like under different d e m a nd and supply a s s u m p t i o n s. (6) T he Minister must p u b l i s h— (a) m o d e ls used for data and information analysis; (b) that are underpinning the a s s u m p t i o ns all subsection (a); and a list of categories of confidential and the reasons thereof. (c) the m o d e ls c o n t e m p l a t ed in information or data that h a ve been classified as Safety, health and e n v i r o n m e nt

4. T he Minister may. after consultation with the Minister of T r a de and Industry, the Minister of L a b o ur and the Minister of E n v i r o n m e n t al Affairs and Tourism, adopt m e a s u r es not c o n t e m p l a t ed in any other legislation, to m i n i m i se the negative safety, health and environmental impacts of energy carriers. E n e r gy a c c e ss by h o u s e h o l ds 5. (1) T he Minister must adopt m e a s u r es that p r o v i de for the universal access to appropriate forms of energy or energy services for all the people of the R e p u b l ic at affordable prices. (2) T he m e a s u r es contemplated in subsection (1) must take into a c c o u n t— (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) infrastructure; infrastructure; the safety, health and e n v i r o n m e n t al suitability of such energy; the availability of energy resources; the optimisation of existing energy the need for new the provision of information and training regarding energy and its optimal utilisation; the sustainability of the energy provision; affordability: cost-effectiveness: the State's c o m m i t m e nt to provide free basic electricity to poor h o u s e h o l d s; and appropriate g o v e r n a n ce procedures for g o v e r n m e nt s p o n s o r ed p r o g r a m m es as prescribed by the Public Finance M a n a g e m e nt Act. C H A P T ER 3 I N T E G R A T ED E N E R GY P L A N N I NG I n t e g r a t ed e n e r gy p l a n n i ng 6. (1) The Minister must develop and. on an annual basis, review and publish the Integrated Energy Plan in the Gazette. (2) T he Integrated Energy Plan must deal with the supply, transformation, transport, storage of and d e m a nd for energy in a way that accounts for— issues relating to (a) (b) (c) (d) security of supply; e c o n o m i c a l ly available energy resources: affordability; universal accessibility and free basic electricity; Act No. 34, 2008 NATIONAL ENERGY ACT. 2008 (e) (f) (g) (h) (i) (j) social equity; e m p l o y m e n t; the e n v i r o n m e n t; international c o m m i t m e n t s; c o n s u m er protection; and contribution of energy supply to s o c i o - e c o n o m ic d e v e l o p m e n t. (3) T he Integrated Energy Plan m u s t— (a) (b) (c) take a c c o u nt of plans relating to transport, electricity, p e t r o l e u m, water, trade, infrastructure d e v e l o p m e n t, housing, air quality m a c r o - e c o n o my energy m a n a g e m e n t, g r e e n h o u se gas mitigation within sector and integrated d e v e l o p m e nt plans of local and provincial authorities: inform and be informed by plans from all supply, production and d e m a nd sectors whose plans impact on or are impacted by the Integrated Energy Plan; and be based on the results of the energy analysis envisaged in sections 3(4)(a) and 3(5). the energy (4) T he d e v e l o p m e nt of the Integrated Energy Plan must take into a c c o u n t— (a) (b) (c) (d) (e) (f) sustainable d e v e l o p m e n t; optimal use of indigenous and regional energy r e s o u r c e s: balance between supply and d e m a n d; e c o n o m ic viability; e n v i r o n m e n t a l, health, safety and s o c i o - e c o n o m ic impacts; and d e v e l o p m e n t al r e q u i r e m e n ts of the .Southern African region. (5) T he Integrated Energy Plan must have a planning horizon of no less than 20 years. (6) T he Integrated Energy Plan m u s t— (a) (b) (c) serve as a g u i de for energy infrastructure investments; take into account all viable energy supply o p t i o n s: and g u i de the selection of the appropriate technology to meet energy d e m a n d. the Integrated Energy Plan, the Minister m u s t— finalising (7) Before (a) (b) invite public c o m m e n t s; and duly consider such c o m m e n t s. C H A P T ER 4 S O U TH A F R I C AN N A T I O N AL E N E R GY D E V E L O P M E NT I N S T I T U TE E s t a b l i s h m e nt of S o u th African National E n e r gy D e v e l o p m e nt Institute 7. (1) T he South African National Energy D e v e l o p m e nt Institute is hereby established as a juristic person. (2) T he functions of the South African National Energy D e v e l o p m e nt Institute are to, in respect of— (a) (b) increase energy efficiency throughout the e c o n o m y: increase the gross d o m e s t ic product p er unit of energy c o n s u m e d; and energy efficiency— (i) undertake energy efficiency m e a s u r es as directed by (he Minister; (ii) (iii) (iv) o p t i m i se the utilisation of finite energy resources; energy research and d e v e l o p m e n t— (i) direct, monitor, conduct and implement energy research and technology d e v e l o p m e nt in all fields of energy, other than nuclear e n e r g y: and (ii) p r o m o te energy research and technology innovation; (iii) provide for— (aa) training and d e v e l o p m e nt t e c h n o l o gy d e v e l o p m e n t: in the field of energy research and (bb) establishment and expansion of industries in the field of e n e r g y: and Act No. 34, 2008 NATIONAL ENERGY ACT. 2008 (cc) commercialisation of energy technologies resulting from energy research and d e v e l o p m e nt p r o g r a m m e s; (iv) (v) register patents and intellectual property in its n a me resulting from its activities: issue licences to other persons for the use of its patents and intellectual property; (vi) publish information concerning its objects and functions; (vii) establish facilities for the collection and dissemination of information in connection with research, d e v e l o p m e nt and innovation; (viii) undertake any other energy technology d e v e l o p m e nt related activity as directed by the Minister, with the c o n c u r r e n ce of the Minister of Science and T e c h n o l o g y; (ix) p r o m o te relevant energy research through cooperation with any entity, institution or person equipped with the relevant skills and expertise within and outside the R e p u b l i c: (x) m a ke grants to educational and scientific institutions in aid of research by their staff or for the establishment of facilities for such research; (xi) p r o m o te the training of research w o r k e rs by granting bursaries or grants-in-aid for research; (xii) undertake the investigations or research that the Minister, after consul­ tation with the Minister of Science and Technology, m ay assign to it; and advise the Minister and the Minister of Science and T e c h n o l o gy on research in the field of energy technology. (xiii) Constitution of S o u th African N a t i o n al E n e r gy D e v e l o p m e nt Institute 8. (1) Subject to this Act, the South African National Energy D e v e l o p m e nt Institute is m a n a g ed and controlled by a Board, w h i c h— (a) must d e t e r m i ne the South African National Energy D e v e l o p m e nt Institute's policies and p r o c e d u r e s; (b) must exercise control over the performance of the South African National (c) Energy D e v e l o p m e nt Institute's functions; and has the same p o w e rs and authority as are conferred upon the South African National Energy D e v e l o p m e nt Institute in terms of this Act. (2) T he Minister must, after consultation with the Minister of Science and Technology, appoint as m e m b e rs of the B o a r d— (a) (b) (c) (d) a C h a i r p e r s o n; a Deputy C h a i r p e r s o n: representatives from the D e p a r t m e n ts of Minerals and Energy, Trade and Industry. Science and Technology, E n v i r o n m e n t al Affairs and Tourism and Transport; and two other suitably qualified persons. (3) T he Chief E x e c u t i ve Officer appointed in terms of section 11, or if unavailable, an e m p l o y ee of the South African National Energy D e v e l o p m e nt Institute d e s i g n a t ed by the Chief Executive Officer, must attend all m e e t i n gs of the Board and has the right to speak, but not to vote, at such meetings. (4) If the Chairperson cannot perform his or her duties, the Deputy C h a i r p e r s on must perform such duties until the Chairperson can resume his or her duties or until the Minister, after consultation with the Minister of Science and Technology, has appointed a replacement for him or her. (5) T he Chairperson or Deputy Chairperson presides at any meeting of the B o a r d. (6) A m e m b er of the B o a r d, e x c l u d i ng the Chief Executive Officer, holds office for a period not e x c e e d i ng four years, but may be reappointed. (7) A m e m b er of the Board must vacate his or her office if he or s h e— (a) (b) (c) b e c o m es of unsound mind; resigns by written notification to the Minister of at least one m o n t h: in the c a se of m e m b e rs appointed in terms of subsection (2)(c). his or her respective d e p a r t m e n t; or r e s i g ns from (d) materially fails to perform any duty imposed on him or her in t e r ms of this Act. Act No. 34, 2008 NATIONAL ENERGY ACT. 2008 (8) T he m e m b e rs of the Board, with the exclusion of those m e m b e rs w ho are in the full-time e m p l o y m e nt of an organ of the state, must be appointed on such conditions, including conditions relating to the p a y m e nt of r e m u n e r a t i on and a l l o w a n c e s, as the Minister may. with the c o n c u r r e n ce of the Ministers of Finance and S c i e n ce and Technology, d e t e r m i n e. (9) T he m e m b e rs of the Board must be persons w ho have relevant qualifications and experience or w ho have special k n o w l e d ge or experience in relation to one or other aspect of the South African National Energy D e v e l o p m e nt Institute's functions. (10) U p on appointment, every m e m b er of the Board must disclose to the Minister and to the B o a r d— (a) (b) the functions of in any person, firm, association or c o m p a ny the South African National Energy his or her pecuniary interest engaged in any of D e v e l o p m e nt Institute; and if his or her spouse, life partner, parent or child is in the e m p l oy of, or acts as a consultant to, or has any relationship with, any person, firm, association or c o m p a ny e n g a g ed in any of the functions of the South African National Energy D e v e l o p m e nt Institute. (11) If a m e m b er of the Board acquires an interest c o n t e m p l a t ed in .subsection 10(a) or (b), such m e m b er must immediately, in writing, declare that fact to the Minister and Board. (12) T he Minister may. from time to time, reserve any matter provided for in this Act, as a matter in respect of which a decision of the Board will be subject to the consent of the Minister and the Minister of Science and Technology. (13) T he Minister and the Minister of Finance may jointly from time to lime reserve any financial matter provided for in this Act. as a matter in respect of which a decision of the Board shall be subject to the consent of the Minister with the c o n c u r r e n ce of the Minister of Finance. S o u th African National E n e r gy D e v e l o p m e nt Institute s u b c o m m i t t e es for specific p u r p o s es 9. (1) T he Board m ay establish s u b c o m m i t t e es and m ay appoint any of its m e m b e rs to join one or more of such s u b c o m m i t t e e s, which must, subject to the instructions of the Board, perform those functions of the Board as the B o a rd may d e t e r m i n e. (2) (a) A s u b c o m m i t t ee contemplated in subsection (1) consists of such n u m b er of persons, including at least one Board m e m b er and any e m p l o y e es of the South African National Energy D e v e l o p m e nt Institute, as the Board d e e ms necessary. (b) T he Board may at any time dissolve or reconstitute a s u b c o m m i t t e e. (3) If a s u b c o m m i t t ee referred to in subsection (1) consists of more than one m e m b e r, the Board must designate o ne m e m b er as a C h a i r p e r s o n. (4) T he South African National Energy D e v e l o p m e nt Institute may pay the m e m b e rs (a) (b) of a s u b c o m m i t t ee referred to in subsection (1) w ho a r e— not in the full-time service of the State; not e m p l o y e es of the South African National Energy D e v e l o p m e nt Institute: and not m e m b e rs of the Board. (c) the remuneration and allowances determined by the Minister, with the c o n c u r r e n ce of the Minister of Finance. (5) T he Board shall not be discharged from its responsibility for any function performed in terms of this section by any s u b c o m m i t t ee of the Board. M e e t i n gs of B o a rd of S o u th African N a t i o n al E n e r gy D e v e l o p m e nt Institute 10. (1) The meetings of the Board must be held at such times and places as d e t e r m i n ed by the Chairperson of the Board. (2) T he C h a i r p e r s o n, or in his or her absence the D e p u ty C h a i r p e r s o n, m ay at any time call a special meeting of the Board, which must be held at such time and place as the Chairperson or the Deputy Chairperson, as the c a se may be, may direct. (3) T he q u o r um for a m e e t i ng of the Board is the majority of its m e m b e r s. Act No. 34, 2008 NATIONAL ENERGY ACT. 2008 (4) A decision of the Board is taken by resolution of the majority of the m e m b e rs present at any meeting of the Board and, in the event of an equality of votes on any matter, the person presiding at the meeting in question shall h a ve a casting vote in addition to his or her deliberative vote as a m e m b er of the B o a r d. (5) No decision taken by or act performed under the authority of the B o a rd shall be invalid by reason only of— (a) (b) a vacancy on the Board; or the fact that a person w ho was not entitled to sit as a m e m b er of the Board, sat as a m e m b er at the time when the decision w as taken or the act w as authorised. if the decision w as taken or the act w as authorised by the requisite majority of the m e m b e rs of the B o a rd w ho w e re present at the time and entitled to sit as m e m b e r s. Chief E x e c u t i ve Officer of S o u th African National E n e r gy D e v e l o p m e nt Institute 11.(1) T he Board appoints the Chief E x e c u t i ve Officer of the South African National Energy D e v e l o p m e nt Institute. (2) The Chief E x e c u t i ve Officer— (a) is responsible for and exercises control over the p e r f o r m a n ce of the functions of the South African National E n e r gy D e v e l o p m e nt Institute; and (b) must report on the affairs of the South African National Energy D e v e l o p m e nt Institute to the Board as m ay be required of him or her by the B o a r d. (3) If the Chief E x e c u t i ve Officer is absent or unable to carry out his or her duties or in the event of a vacancy, the Board m ay appoint an e m p l o y ee of the South African National Energy D e v e l o p m e nt Institute to act as Chief E x e c u t i ve Officer, and that e m p l o y ee shall, while so acting, have all the p o w e rs and perform all the duties of the Chief Executive Officer. (4) T he Chief E x e c u t i ve Officer is appointed for a period of not more than five years, but may be reappointed on the conditions, including c o n d i t i o ns relating to the p a y m e nt of remuneration and a l l o w a n c e s, which the B o a rd m ay d e t e r m i ne in a c c o r d a n ce with a system a p p r o v e d, from the Ministers of Finance and Science and Technology. time to time, by the Minister, with the c o n c u r r e n ce of (5) T he Chief E x e c u t i ve Officer must enter into an annual p e r f o r m a n ce contract with the Board and the Board must assess his or her performance annually. (6) Any dispute b e t w e en the Board and the Chief E x e c u t i ve Officer which c a n n ot be amicably resolved must be referred to arbitration in terms of the Arbitration Act, 1965 (Act No. 42 of 1965). S o u th A f r i c an N a t i o n al E n e r gy D e v e l o p m e nt Institute e m p l o y e es a nd c o n d i t i o ns of service 12. (1) The Chief Executive Officer of the South African National Energy D e v e l o p m e nt Institute may. on the conditions w h i ch must be d e t e r m i n ed by the B o a r d, appoint the e m p l o y e es of the South African National Energy D e v e l o p m e nt Institute w h om it d e e ms necessary to assist the South African National Energy D e v e l o p m e nt Institute in the performance of its functions. r e m u n e r a t i o n, a l l o w a n c e s, subsidies and other benefits as (2) The South African National Energy D e v e l o p m e nt Institute must pay its e m p l o y e es the B o a rd may such d e t e r m i n e, in a c c o r d a n ce with a system approved from time to time by the Minister, with the c o n c u r r e n ce of the Minister of Finance. (3) The South African National Energy D e v e l o p m e nt Institute may, in addition to e m p l o y e es referred to in subsection (1), be assisted in the p e r f o r m a n ce of its functions by officers and e m p l o y e es in the public service w ho have been placed at the disposal of the South African National Energy D e v e l o p m e nt Institute in t e r ms of the Public Service Act. 1994 (Proclamation N o. 103 of 1994). (4) The B o a rd may. on such conditions as it may d e em fit and for a fixed period of time, second an e m p l o y ee of the South African National Energy D e v e l o p m e nt Institute Act No. 34, 2008 NATIONAL ENERGY ACT. 2008 to perform a particular service for an organ of state or for the g o v e r n m e nt of any o t h er country or territory, provided t h a t— (a) (b) such an e m p l o y e e 's rights, privileges and benefits by virtue of his c o n d i t i o ns of service as an e m p l o y ee of the South African National Energy D e v e l o p m e nt Institute are not adversely affected by such s e c o n d m e n t; and such e m p l o y ee consents thereto. Transitional p r o v i s i o ns 13. (1) In this s e c t i o n— (a) (b) (c) the c o m p a ny referred " C EF (Proprietary) L t d ." m e a ns Energy Fund Act, 1977 (Act N o. 38 of 1977): " N E E A" m e a ns the entity k n o wn as the National Energy Efficiency A g e n cy which existed immediately before the c o m m e n c e m e nt of this A ct as a division of C EF (Proprietary) Ltd.: and " S A N E R I" m e a ns the entity k n o wn as the South African National Energy R e s e a r ch Institute w h i ch existed immediately before the c o m m e n c e m e nt of this Act as a division of C EF (Proprietary) Ltd. to in the Central (2) As from the date of c o m m e n c e m e nt of this A c t— (a) (b) the persons w ho immediately before that date constituted the personnel of S A N E RI and of N E E A. are d e e m ed to be the personnel of the South African National Energy D e v e l o p m e nt Institute, without any interruption of service; and all assets and liabilities which vested in S A N E RI and N E EA as d i v i s i o ns of C EF (Proprietary) Ltd, immediately before that date vest in the South African National Energy D e v e l o p m e nt Institute. F u n d i ng of S o u th African N a t i o n al E n e r gy D e v e l o p m e nt Institute 14. (1) T he funds of the South African National Energy D e v e l o p m e nt Institute consist of— (a) m o n ey appropriated by Parliament: d o n a t i o ns or contributions which the South African National Energy (b) D e v e l o p m e nt Institute may receive from any person, body, g o v e r n m e nt or administration: and (c) m o n ey received from any other appropriate source. (2) T he South African National Energy D e v e l o p m e nt Institute must utilise its funds for defraying e x p e n s es in connection with the p e r f o r m a n ce of its functions. (3) T he South African National Energy D e v e l o p m e nt Institute m u st utilise its m o n ey in a c c o r d a n ce with the statement of its estimated i n c o me and e x p e n d i t u re c o n t e m p l a t ed in subsection (4), as approved by the Minister. (4) The Board must in each financial year, as required by the Public F i n a n ce M a n a g e m e nt Act, submit a statement of the South African National Energy D e v e l o p­ ment Institute's estimated i n c o me and expenditure during the following financial year to the Minister for his or her approval. (5) T he Board may invest any u n e x p e n d ed portion of the South African National for Public Deposits Energy D e v e l o p m e nt established in t e r ms of section 2 of the C o r p o r a t i on for Public D e p o s i ts Act, 1984 (Act N o. 46 of 1984) or. subject to the approval of the Minister with the c o n c u r r e n ce of the Minister of F i n a n c e, dispose thereof in any other manner. the Corporation funds with Institute's (6) T he Board may create surplus funds as e n v i s a g ed by subsection (5) and deposit such funds as the Minister, acting with the c o n c u r r e n ce of the Minister of F i n a n c e, m ay approve. A c c o u n t i ng a nd a u d i t i ng at S o u th African N a t i o n al E n e r gy D e v e l o p m e nt Institute 15. (1) T he Chief Executive Officer the responsibility of accounting for all m o n ey received and p a y m e n ts m a de by the South African National Energy D e v e l o p m e nt Institute. is the accounting officer c h a r g ed with (2) T he accounting officer must cause such records of account to be kept as are the state of affairs and business of the South African to represent fairly necessary Act No. 34, 2008 NATIONAL ENERGY ACT. 2008 National Energy D e v e l o p m e nt Institute and to explain the transactions and financial position of the b u s i n e ss of the South African National Energy D e v e l o p m e nt Institute. (3) T he accounting and compilation of annual financial statements of the South African National Energy D e v e l o p m e nt Institute must be d o ne in a c c o r d a n ce with the provisions of the Public F i n a n ce M a n a g e m e nt Act. D i s c o v e r i e s, i n v e n t i o ns a nd i m p r o v e m e n ts 16. (1) Subject to subsections (5) and (6), the rights in all d i s c o v e r i es and i n v e n t i o ns and in all i m p r o v e m e n ts in respect of processes, apparatus and m a c h i n es m a de b y— (a) (b) (c) e m p l o y e es of the South African National Energy D e v e l o p m e nt Institute or officers and e m p l o y e es in the public service w ho have been placed at the disposal of the Energy R e s e a r ch and D e v e l o p m e nt Division of the South African National Energy D e v e l o p m e nt Institute in terms of section 12(3); p e r s o ns assisting the South African National E n e r gy D e v e l o p m e nt Institute with any investigation or research: or p e r s o ns to w h om contracts, including bursaries or grants-in-aid, h a ve been granted by the South African National Energy D e v e l o p m e nt Institute, vests in the South African National Energy D e v e l o p m e nt Institute. (2) T he South African National Energy D e v e l o p m e nt the discoveries, inventions and i m p r o v e m e n ts referred to in subsection (1) available for use in the public interest subject to the conditions and the p a y m e nt of fees or royalties that the South African National Energy D e v e l o p m e nt Institute m ay d e t e r m i n e. Institute may m a ke to the person responsible in subsection (3) In respect of the rights in any discovery, invention or i m p r o v e m e nt that are (1). the South African National E n e r gy D e v e l o p m e nt contemplated Institute may a w a rd invention or i m p r o v e m e nt such b o n us as it d e e ms fit, or m a ke provision for financial participation by him or her in the profit derived from such discovery, invention or i m p r o v e m e nt to such extent as the Minister m ay d e t e r m i ne with the c o n c u r r e n ce of the M i n i s t er of F i n a n c e. (4) T he South African National Energy D e v e l o p m e nt Institute m ay apply for a patent in respect of any discovery, invention or i m p r o v e m e nt c o n t e m p l a t ed in subsection (1), and shall for the purposes of the Patents Act. 1978 (Act No. 57 of 1978), be r e g a r d ed as the assignee of the discoverer or inventor in question. the discovery, for (5) Unless it is otherwise agreed, the rights in a discovery, invention or i m p r o v e m e nt m a de by the South African National Energy D e v e l o p m e nt Institute in the c o u r se of an investigation for or on behalf of another person, g o v e r n m e nt or administration shall vest with the South African National Energy D e v e l o p m e nt Institute. (6) T he provisions of this section shall not apply in respect of a d i s c o v e ry or an invention or i m p r o v e m e nt referred to in subsection (1) w h i c h, in the opinion of the Minister, w as m a de by the person concerned other t h a n— (a) (b) (c) (d) in the c o u r se of his or her e m p l o y m e nt as an e m p l o y ee of the South African National Energy D e v e l o p m e nt Institute; d u r i ng the p e r f o r m a n ce of functions in respect of which he or she has b e en placed at the disposal of the South African National E n e r gy D e v e l o p m e nt Institute in t e r ms of section 12(3): in the course of any investigation or research while assisting the South African National Energy D e v e l o p m e nt Institute; or in the course of any research in respect of which he or she r e c e i v es a bursary or grant-in-aid the South African National Energy D e v e l o p m e nt Institute, which is not c o n n e c t ed with such e m p l o y m e n t, functions, gation or research. investi­ from Act No. 34, 2008 NATIONAL ENERGY ACT. 200S C H A P T ER 5 S E C U R I TY OF S U P P LY Acquisition a nd m a i n t e n a n ce of national strategic e n e r gy f e e d s t o c ks a nd c a r r i e rs 17. (1) The Minister may, in a prescribed manner, for the p u r p o s es of ensuring security of supply, direct any state-owned entity to acquire, maintain, m o n i t or and m a n a ge national strategic energy feedstocks and carriers. (2) T he nominated state-owned entity must perform the functions c o n t e m p l a t ed in subsection (1) in a c c o r d a n ce with the relevant published security of supply strategies or policies. (3) T he strategies or policies contemplated in subsection (2) m ay contain but not be limited t o— (a) (b) (c) (d) (e) the m i n i m um level of energy carrier or energy feedstock for the production of an energy carrier: the conditions u n d er w h i c h— (i) (ii) w i t h d r a w a ls may be m a de from such strategic energy feedstocks and the strategic energy feedstocks and carriers may be built; and carriers; cost and benefit analysis; funding m e c h a n i sm for such energy feedstock or carrier: and obligations to be i m p o s e d, on producers of energy feedstocks, to supply to the in a m a n n er nominated state-owned entity the requisite energy feedstock, prescribed by regulation. (4) Before finalising the strategy or policy, the Minister m u s t— (a) (b) invite public c o m m e n ts on such strategy or policy; and duly consider such c o m m e n t s. I n v e s t m e nt in a nd m a i n t e n a n ce of E n e r gy I n f r a s t r u c t u re

18. T he Minister may, for the purposes of ensuring security of supply, direct any state-owned entity, in a prescribed manner, t o— (a) (b) (c) (d) undertake security of supply m e a s u r e s; provide for adequate investment in energy invest in critical energy infrastructure; and ensure u p k e ep of all critical energy infrastructure. infrastructure; C H A P T ER 6 G E N E R AL P R O V I S I O NS R e g u l a t i o ns 19. (1) T he Minister may, after consultation with those Cabinet Ministers w h o se areas of responsibility will be affected by the proposed regulations, without d e r o g a t i ng from his or her general regulatory p o w e r s, by notice regulations r e g a r d i n g— in the Gazette m a ke (a) (b) (c) the publication of energy statistics or information; the type, m a n n er and form of energy data and information provided by any person; the form and m a n n er of the link between the energy d a t a b a se and information system to any other system within the public administration; that must be (d) m i n i m um contributions to national energy supply from r e n e w a b le energy (e) sources; the nature of the sources that m ay be used for r e n e w a b le energy c o n t r i b u t i o ns to the national energy supply; (f) m e a s u r es and incentives designed to p r o m o te the production, c o n s u m p t i o n. investment, research and d e v e l o p m e nt of r e n e w a b le e n e r g y: (g) m i n i m um levels of energy efficiency in each sector of the e c o n o m y; (h) steps and p r o c e d u r es necessary for the application of energy efficiency technologies and procedures; Act No. 34. 2008 NATIONAL ENERGY ACT. 2008 (i) (j) (k) (I) the manufacture, or labelling for energy efficiency p u r p o s es of h o u s e h o ld a p p l i a n c e s, devices and m o t or vehicles; prohibition of importation or sale of electrical and electronic p r o d u c ts and fuel burning appliances for reasons of poor energy efficiency: standards and specifications for energy carriers; energy efficiency standards for specific technologies, p r o c e s s e s, a p p l i a n c e s. d e v i c e s, m o t or vehicles and buildings; (n) feedstocks and carriers, (m) h o l d i ng of strategic energy m e c h a n i s ms for such stocks; energy conservation m e a s u r es to be used during energy shortage, which m ay include but not limited to the a m o u nt of energy to be saved, the duration for such m e a s u r es and penalties associated with n o n - c o m p l i a n ce such m e a s u r e s; including financing to (o) m e a s u r es to ensure adequate provision of energy-related (p) m e a s u r es to ensure operating reliability of all key energy infrastructure, to the infrastructure; m i n i m um standards as may be d e t e r m i n ed by the Minister; (q) m e a s u r es to p r o m o te security of supply through access to c o m m on infrastruc­ (r) (s) fuels or p o s t - c o m b u s t i on ture by any party, w h e re not p r o v i d ed for under any other legislation; the prohibition of disposal m e t h o ds of certain r e s i d u e s: the safe, healthy and sustainable use of energy, standards and specifications, not e l s e w h e re legislated or regulated, for— (i) (ii) (iii) (iv) the c o m p o s i t i o n, colouring, labelling and form of energy carriers; l o w - s m o ke fuels; the prohibition of the sale or c o m b u s t i on of polluting fuels; c o o k i n g, heating, appliances; transport of energy carriers; the storage and p a c k a g i ng of energy carriers; and any other e n e r g y - c o n s u m i ng appliance in all sectors of the e c o n o m y. lighting and other energy c o n s u m i ng h o u s e h o ld (v) (vi) (vii) (t) any other matter that may or has to be prescribed, d e t e r m i n ed or p r o v i d ed for by regulation in t e r ms of this Act. (2) Before p r o m u l g a t i ng regulations, the M i n i s t er m u s t— (a) (b) invite public c o m m e n ts on such regulations; and duly c o n s i d er such c o m m e n t s. Offences and penalties 20. (1) A person w ho c o n t r a v e n es or fails to c o m p ly with any provision of this Act, shall be guilty of an offence and be liable on conviction t o— a fine not e x c e e d i ng five million rand; i m p r i s o n m e nt for a period not e x c e e d i ng five years; or both such fine and such i m p r i s o n m e n t. (a) (b) (c) (2) T he Minister may, by a notice in the Gazette, a m e nd the a m o u nt referred to in subsection (1) in order to c o u n t er the effect of inflation. S h o rt title a nd c o m m e n c e m e nt 21. (1) This Act is called the National Energy Act, 2 0 08 and c o m es into operation on a date d e t e r m i n ed by the President by p r o c l a m a t i on in the Gazette. (2) Different dates may be so fixed in respect of different provisions of this Act.