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Central Energy Fund under spotlight

Cape Town - The National Assembly's energy committee intends to conduct detailed oversight of all activities of the Central Energy Fund (CEF) following its presentation to the committee, chairperson Sisa Njikelana said on Thursday.

The CEF had appeared before the committee to present its key operations and annual plan.

"The committee noted that some disturbing issues had emerged from the presentation," he said.

As an entity with various subsidiaries, divisions and projects, the committee had expected the CEF to give a presentation on its management strategy, including its policies and operations, and show the committee how the various divisions, subsidiaries and associations of the entity were performing.

The committee had also expected to get an understanding of the role the CEF played in the overall strategic management of the divisions, subsidiaries, associates and projects it was involved in.

"However, the Central Energy Fund failed to articulate its role in the integrated resource plan (IRP) 2010, ie to devise a supply-and-demand plan.

"The IRP must determine the long-term electricity demand, and detail how this will be met in terms of generating capacity, type, timing and cost," Njikelana said.

The CEF had complained about the withdrawal of the Renewable Energy Feed-in Tariff programme and the adverse effects this would have on it.

However, MPs questioned the magnitude of such a negative effect, in view of the various other projects that the CEF was involved in.

"The committee also noted that the CEF had complained about a lack of support, instead of carrying out its duties.

"It intended to conduct a detailed oversight of all activities of the CEF, its divisions, subsidiaries, associations and all its projects.

"This scrutiny would include oversight visits," Njikelana said.

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