Tag Archive | Nelisiwe Magubane

DOE sells energy savings incentives

Energy savings incentives panacea for carbon tax….

NelisiweMagubaneDepartment of Energy (DoE) director-general, Nelisiwe Magubane, has said that the proposed new energy savings incentives will help reduce the effect of the forthcoming carbon tax due to be implemented next year.

The regulations on the “Allowance for Energy Savings” in terms of Section 12l of the Income Tax Act now announced will be linked to the tax process of the South African Revenue Service (SARS) and are aimed at encouraging businesses to continuously scale-up or intensify energy efficiency enhancements.

Magubane was announcing government’s promulgation of “pioneering regulations that will provide tax incentives for businesses that can prove verified energy savings as a result of purposefully implemented energy-reduction measures.”

Carrot and stick

The DG said, “It is important to note that, as government, we view the opportunity presented by the energy efficiency tax incentives as the proverbial ‘carrot’, as it is one of the key mechanisms [to be introduced] that will soften the impact of the ‘stick’, which is of course the proposed Carbon Tax Policy, due for implementation in 2015,” she said in her statement re-produced on the DoE website.

Treasury, in the meanwhile, noted that the incentive would calculate the energy saved expressed as a kilowatt-hour equivalent, which would then be used as a deduction against a business’ taxable income.

Forty five kilowatt-hour cents per hour would be sufficient to meet the savings requirements in terms of the regulations but this had to be verified by the South African National Energy Development Institute (Sanedi) with whom businesses searching for such savings must register.

The full regulations are to be published explaining implementation and for three months commencing January 2014, Treasury, Sanedi and SARS will “roll out a series of national workshops to assist businesses in acquainting themselves with the registration process and overall implementation”.

Energy savings strategy set at 12%

A government strategy is now ready for submission to Cabinet setting out a national target of energy intensity reduction of 12% by 2015.

Specific targets are a 10% reduction in energy consumption by the residential subsector; a 15% reduction by the mining and industrial sector; a 9% reduction by the power generation sector: a 15% reduction by the commercial and public buildings sector and a 10% reduction in energy consumption by the transport sector.

Previous articles on this subject
http://parlyreportsa.co.za//energy/sanedi-plans-for-a-low-carbon-future/
http://parlyreportsa.co.za//cabinetpresidential/carbon-tax-comes-under-attack-from-eskom-sasol-eiug/
http://parlyreportsa.co.za//uncategorized/sanedi-to-become-a-force-in-energy-research/

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Brief on new draft energy and electricity bills

The director general of the energy department, Nelisiwe Magubane, has now briefed Parliament on the impending tabling of both the National Energy Regulator Amendment Bill and the Electricity Regulation Amendment Bill which, according Magubane will beef up NERSA giving it the regulatory power to control “the entire energy space”.

She told the parliamentary committee on energy that that an independent appeal board headed up by a judge would replace the existing tribunal so that NERSA did not have to play both judge and jury in regulatory matters, where a decision on tariffs or regulatory procedures were involved. Appeals would therefore conducted in a fairer environment.

Both bills have been the subject of public comment and it remains to be seen what the final Bills tabled before Parliament look like. On electricity, much involves independent power producers (IPPs) and may sort out the anomalies that exist in the procurement of land for power line erection and the difficult liaison with the department of public works over such issues.

As far as the Energy Regulator Act (ERA) is concerned, the amendments proposed to parliamentarians were stated as being designed to “improve the credibility of the decision making process by establishing an appeals board; to improve the governance and accountability of the board and to improve the working relations amongst regulator members.”

The department of energy said that the energy sector had to be regulated more effectively “given the current need that has now arisen to increase private sector participation”.

Present at the briefing were officials of NERSA who also claimed, as did the department, that both new Bills would enable them to have the ability to work in a less fragmented environment with not so many departments having regulatory control over different issues.

NERSA at no stage discussed matters relating to fuel pricing and neither did the department. Further meetings are to follow.

Posted in Cabinet,Presidential, Electricity, Energy, Finance, economic, Fuel,oil,renewables, Labour, Land,Agriculture, Mining, beneficiation, Trade & Industry0 Comments


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