National Energy Act

Link to law: http://www.gov.za/documents/national-energy-act
Published: 2008-11-24

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National Energy Act 34 of 2008


Government Gazette
REPUBLIC OF SOUTH AFRICA

Vol. 521 Cape Town 24 November 2008 No. 31638
THE PRESIDENCY No. 1263 24 November 2008
It is hereby notified that the President has assented to the following Act, which is hereby published for general information:–
No. 34 of 2008: National Energy Act, 2008.

ACT To ensure that diverse energy resources are avai lable , in sustainable quantit ies and at affordable prices , to the South African economy in support of economic growth and poverty al leviation, taking into account environmenta l m a n a g e m e n t require­ ments and interact ions amongs t economic sectors; to provide for energy planning, increased generat ion and consumpt ion of renewable energies , contingency energy supply, holding of strategic energy feedstocks and carriers , adequate investment in, appropriate upkeep and access to energy infrastructure; to provide measures for the furnishing of certain data and information regarding energy d e m a n d , supply and generat ion; to establish an institution to be responsible for promotion of efficient generat ion and consumpt ion of energy and energy research; and to provide for all matters connected therewith.
BE IT E N A C T E D by the Parl iament of the Republ ic of, South Africa, as fol lows:— A R R A N G E M E N T O F S E C T I O N S
C H A P T E R 1
D E F I N I T I O N S A N D O B J E C T S
1. Definitions
2. Objects of Act
C H A P T E R 2
E N E R G Y SUPPLY, O P T I M I S A T I O N A N D U T I L I S A T I O N
3. Provision of data and access to data sources 4. Safety, health and environment
5. Energy access by households
C H A P T E R 3
I N T E G R A T E D E N E R G Y P L A N N I N G
6. Integrated energy planning
C H A P T E R 4
S O U T H A F R I C A N N A T I O N A L E N E R G Y D E V E L O P M E N T I N S T I T U T E
7. Establ ishment of South African National Energy Development Institute 8. Consti tut ion of South African National Energy Deve lopment Institute 9. South African National Energy Development Institute sub-commit tees for
specific purposes
Act No. 34, 2008 NATIONAL ENERGY ACT. 2008
10. Meet ings of Board of South African National Energy Deve lopment Institute 11. Chief Execut ive Officer of South African National Energy Development
Institute 12. South African National Energy Development Institute employees and condi­
tions of service 13. Transitional provisions 14. Funding of South African National Energy Development Institute 15. Account ing and audit ing at South African National Energy Development
Institute 16. Discoveries , inventions and improvements
C H A P T E R 5
S E C U R I T Y O F SUPPLY
17. Acquisit ion and maintenance of National Strategic energy feedstocks and carriers
18. Investment in and maintenance of energy infrastructure
C H A P T E R 6
G E N E R A L P R O V I S I O N S
19. Regulat ions
20. Offences and penalties
2 1 . Short title and commencemen t
C H A P T E R 1
D E F I N I T I O N S A N D O B J E C T S
Definitions 1. In this Act . unless the context indicates o therwise—
" B o a r d " means the Board of the South African National Energy Deve lopment Institute contemplated in section 8; " D e p a r t m e n t " means the Department of Minerals and Energy: "energy carr i er" means a substance or system that moves or carries energy in a usable form from one place to another: "energy d a t a " means energy-related statistics, facts, figures, information and records of the energy industry and all other economic sectors; "energy efficiency" means economical and efficient production and utilisation of an energy carrier or resource: "energy feedstocks" means any substance used or that can be used as a raw material in an industrial process producing energy: "energy infrastructure" means public and privately owned physical structures which are used for the production, transformation, conversion, transportat ion or distribution of energy carriers: "energy-related sec tors" means all sectors which are impacted by or have an impact on the energy sector; "energy resource" means non-value added material or mineral that can be used to produce energy or be converted to an energy carrier; "free basic e lectr ic i ty" means a limited free amount of electricity supply deemed necessary to support basic energy services of a typical poor household as determined from lime to l ime; "greenhouse g a s e s " mean gases present in the a tmosphere , which reduce the loss of heal into space and thereby contributing to an increase in global temperatures through a process known as the greenhouse effect; "Integrated Energy P l a n " means the national energy plan contemplated in section 6, approved by Cabinet and published in the Gazette by the Minister; "Mini s t er" means the Minister of Minerals and Energy; "organ of the s tate" means an organ of stale as defined in section 239 of the Consti tut ion;
Act No. 34, 2008 NATIONAL ENERGY ACT. 2008
"prescr ibed" means prescribed by regulat ion:
"Promot ion of Access to Information A c t " means the Promotion of Access to Information Act, 2000 (Act No. 2 of 2000); "Publ ic Finance M a n a g e m e n t A c t " means the Public Finance Managemen t Act, 1999 (Act No. 1 of 1999): "regulat ion" means any regulation made in terms of this Act; "renewable e n e r g y " means energy generated from natural non-deplet ing resources including solar energy, wind energy, b iomass energy, biological waste energy, hydro energy, geothermal energy and ocean and tidal energy; and "this A c t " includes regulations made in terms of this Act.
Objects of Act
2. The objects of this Act are t o — (a) ensure uninterrupted supply of energy to the Republ ic ; (b) promote diversity of supply of energy and its sources; (c) facilitate effective management of energy demand and its conservat ion; (d) promote energy research; (e) promote appropriate standards and specifications for the equipment , systems
and processes used for producing, supplying and consuming energy; (f) ensure collection of data and information relating to energy supply,
transportation and demand; (g) provide for optimal supply, transformation, transportation, storage and
demand of energy that are planned, organised and implemented in accordance with a balanced consideration of security of supply, economics , consumer protection and a sustainable deve lopment ;
(h) provide for certain safety, health and environment matters that pertain to energy:
(i) facilitate energy access for improvement of the quality of life of the people of Republic;
(j) commercia l ise energy-related technologies; (k) ensure effective planning for energy supply, transportation and consumpt ion :
and (l) contribute to sustainable development of South Africa 's economy.
C H A P T E R 2
E N E R G Y SUPPLY, O P T I M I S A T I O N A N D U T I L I S A T I O N
Provision of data and access to data sources
3. (1) The Minis ter must establish mechanisms to e n s u r e — (a) provision of any data and information reasonably required for the purposes of
conducting analysis required for energy planning from any person and the time period for the provision of such data and information, where such data is not already made available to any other public institution: and
(b) connect ion to any data and information management system, or any other system within the public administrat ion, for the acquisi t ion of energy data and information, in accordance with the Promotion of Access to Information Act and the Statistics Act, 1999 (Act No. 6 of 1999) where such data or information is collected by that public institution.
(2) The Minister may, for the purpose 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 boundaries of the Republ ic .
Act No. 34, 2008 NATIONAL ENERGY ACT. 2008
(3) The information provided under this Act that is not already in the public domain may only be supplied to persons outside of the Depar tment subject to the provis ions of the Promotion of Access to Information Act.
(4) The Minister must establish mechanisms t o — (a) collect, collate and analyse energy data and information: (b) manage energy data and information; and (c) avail, in a manner prescribed, energy statistics and energy information to the
public. (5) The Minis ter must annually publish an ana lys i s—
(a) reviewing energy demand and supply for previous year; (b) forecasting energy supply and demand for no less than 20 years ; and (c) of plausible energy scenarios of how the future energy demand and supply
landscape could look like under different demand and supply assumpt ions . (6) The Minister must pub l i sh—
(a) models used for data and information analysis; (b) all the assumpt ions that are underpinning the models contemplated in
subsection (a); and (c) a list of categories of information or data that have been classified as
confidential and the reasons thereof.
Safety, health and environment
4. The Minister may. after consultation with the Minis ter of Trade and Industry, the Minister of Labour and the Minister of Environmental Affairs and Tourism, adopt measures not contemplated in any other legislation, to minimise the negative safety, health and environmental impacts of energy carriers.
Energy access by households
5. (1) The Minis ter must adopt measures that provide for the universal access to appropriate forms of energy or energy services for all the people of the Republ ic at affordable prices.
(2) The measures contemplated in subsection (1) must take into accoun t— (a) the safety, health and environmental suitability of such energy; (b) the availability of energy resources; (c) the optimisation of existing energy infrastructure; (d) the need for new infrastructure; (e) the provision of information and training regarding energy and its optimal
utilisation; (f) the sustainability of the energy provision; (g) affordability: (h) cost-effectiveness: (i) the State 's commitment to provide free basic electricity to poor households ;
and (j) appropriate governance procedures for government sponsored p rogrammes as
prescribed by the Public Finance Management Act.
C H A P T E R 3
I N T E G R A T E D E N E R G Y P L A N N I N G
Integrated energy planning
6. (1) The Minis ter must develop and. on an annual basis , review and publish the Integrated Energy Plan in the Gazette.
(2) The Integrated Energy Plan must deal with issues relat ing to the supply, transformation, transport, s torage of and demand for energy in a way that accounts for—
(a) security of supply; (b) economical ly available energy resources: (c) affordability; (d) universal accessibility and free basic electricity;
Act No. 34, 2008 NATIONAL ENERGY ACT. 2008
(e) social equity; (f) employment ; (g) the envi ronment ; (h) international commi tments ; (i) consumer protection; and (j) contr ibution of energy supply to socio-economic deve lopment .
(3) The Integrated Energy Plan mus t— (a) take account of plans relating to transport, electricity, pet roleum, water, trade,
macro-economy energy infrastructure development , housing, air quality management , greenhouse gas mitigation within the energy sector and integrated deve lopment plans of local and provincial authori t ies:
(b) inform and be informed by plans from all supply, product ion and demand sectors whose plans impact on or are impacted by the Integrated Energy Plan; and
(c) be based on the results of the energy analysis envisaged in sections 3(4)(a) and 3(5).
(4) The deve lopment of the Integrated Energy Plan must take into accoun t— (a) sustainable development ; (b) optimal use of indigenous and regional energy resources: (c) balance between supply and demand; (d) economic viability; (e) environmental , health, safety and socio-economic impacts ; and (f) developmental requirements of the .Southern African region.
(5) The Integrated Energy Plan must have a planning horizon of no less than 20 years . (6) The Integrated Energy Plan mus t—
(a) serve as a guide for energy infrastructure investments; (b) take into account all viable energy supply opt ions: and (c) guide the selection of the appropriate technology to meet energy demand .
(7) Before finalising the Integrated Energy Plan, the Minis ter m u s t — (a) invite public comments ; and (b) duly consider such comments .
C H A P T E R 4
S O U T H A F R I C A N N A T I O N A L E N E R G Y D E V E L O P M E N T I N S T I T U T E
Establ ishment of South African National Energy Deve lopment Institute
7. (1) The South African National Energy Deve lopment Institute is hereby established as a juristic person.
(2) The functions of the South African National Energy Development Institute are to, in respect of—
(a) energy efficiency— (i) undertake energy efficiency measures as directed by (he Minister;
(ii) increase energy efficiency throughout the economy: (iii) increase the gross domest ic product per unit of energy consumed; and (iv) opt imise the utilisation of finite energy resources;
(b) energy research and deve lopmen t— (i) direct, monitor, conduct and implement energy research and technology
development in all fields of energy, other than nuclear energy: and (ii) promote energy research and technology innovation;
(iii) provide for— (aa) training and development in the field of energy research and
technology development : (bb) establishment and expansion of industries in the field of energy: and
Act No. 34, 2008 NATIONAL ENERGY ACT. 2008
(cc) commercial isat ion of energy technologies resulting from energy research and development p rogrammes ;
(iv) register patents and intellectual property in its name result ing from its activit ies:
(v) issue l icences 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 disseminat ion of information in
connect ion with research, development and innovation; (viii) undertake any other energy technology development related activity as
directed by the Minister, with the concurrence of the Minis ter of Science and Technology;
(ix) promote relevant energy research through cooperat ion with any entity, institution or person equipped with the relevant skills and expert ise within and outside the Republ ic :
(x) make grants to educational and scientific institutions in aid of research by their staff or for the establ ishment of facilities for such research;
(xi) promote the training of research workers 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, may assign to it; and
(xiii) advise the Minis ter and the Minister of Science and Technology on research in the field of energy technology.
Constitution of South African National Energy Deve lopment Institute
8. (1) Subject to this Act, the South African National Energy Deve lopment Institute is managed and control led by a Board, w h i c h —
(a) must determine the South African National Energy Deve lopment Inst i tute 's policies and procedures ;
(b) must exercise control over the performance of the South African National Energy Development Insti tute 's functions; and
(c) has the same powers and authority as are conferred upon the South African National Energy Deve lopment Institute in terms of this Act.
(2) The Minis ter must, after consultation with the Minister of Science and Technology, appoint as members of the Board—
(a) a Chairperson; (b) a Deputy Chairperson: (c) representat ives from the Depar tments of Minerals and Energy, Trade and
Industry. Science and Technology, Environmental Affairs and Tourism and Transport ; and
(d) two other suitably qualified persons. (3) The Chief Execut ive Officer appointed in terms of section 11, or if unavai lable, an
employee of the South African National Energy Development Institute des ignated by the Chief Execut ive Officer, must attend all meet ings of the Board and has the right to speak, but not to vote, at such meet ings.
(4) If the Chairperson cannot perform his or her duties, the Deputy Chairperson 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) The Chairperson or Deputy Chairperson presides at any meeting of the Board. (6) A member of the Board, excluding the Chief Execut ive Officer, holds office for a
period not exceeding four years , but may be reappointed. (7) A member of the Board must vacate his or her office if he or s h e —
(a) becomes of unsound mind; (b) resigns by written notification to the Minister of at least one month : (c) in the case of members appointed in terms of subsection (2)(c). res igns from
his or her respective depar tment ; or (d) materially fails to perform any duty imposed on him or her in terms of this
Act.
Act No. 34, 2008 NATIONAL ENERGY ACT. 2008
(8) The members of the Board, with the exclusion of those m e m b e r s w h o are in the full-time employment of an organ of the state, must be appointed on such condit ions, including condit ions relating to the payment of remunerat ion and a l lowances , as the Minister may. with the concurrence of the Ministers of Finance and Science and Technology, determine.
(9) The members of the Board must be persons w h o have relevant qualifications and experience or who have special knowledge or experience in relation to one or other aspect of the South African National Energy Development Insti tute 's functions.
(10) Upon appointment , every member of the Board must disclose to the Minis ter and to the B o a r d —
(a) his or her pecuniary interest in any person, firm, association or company engaged in any of the functions of the South African National Energy Development Institute; and
(b) if his or her spouse, life partner, parent or child is in the employ of, or acts as a consultant to, or has any relat ionship with, any person, firm, associat ion or company engaged in any of the functions of the South African National Energy Development Institute.
(11) If a member of the Board acquires an interest contemplated in .subsection 10(a) or (b), such member must immediately, in writ ing, declare that fact to the Minister and Board.
(12) The Minister may. from time to t ime, 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) The Minister and the Minister of Finance may jointly from time to l ime 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 concurrence of the Minister of Finance.
South African National Energy Deve lopment Institute subcommit tees for specific purposes
9. (1) The Board may establish subcommit tees and may appoint any of its members to join one or more of such subcommit tees , which must, subject to the instructions of the Board, perform those functions of the Board as the Board may determine.
(2) (a) A subcommit tee contemplated in subsection (1) consists of such number of persons, including at least one Board member and any employees of the South African National Energy Development Institute, as the Board deems necessary.
(b) The Board may at any time dissolve or reconsti tute a subcommit tee . (3) If a subcommit tee referred to in subsection (1) consists of more than one member ,
the Board must designate one member as a Chairperson. (4) The South African National Energy Deve lopment Institute may pay the members
of a subcommit tee referred to in subsection (1) w h o a r e — (a) not in the full-time service of the State; (b) not employees of the South African National Energy Deve lopment Institute:
and (c) not members of the Board.
the remunerat ion and al lowances determined by the Minister, with the concurrence of the Minister of Finance.
(5) The Board shall not be discharged from its responsibil i ty for any function performed in terms of this section by any subcommit tee of the Board.
Meet ings of Board of South African National Energy Deve lopment Institute
10. (1) The meetings of the Board must be held at such t imes and places as determined by the Chairperson of the Board.
(2) The Chairperson, or in his or her absence the Deputy Chairperson, may at any t ime call a special meet ing of the Board, which must be held at such time and place as the Chairperson or the Deputy Chairperson, as the case may be, may direct.
(3) The quorum for a meet ing of the Board is the majority of its member s .
Act No. 34, 2008 NATIONAL ENERGY ACT. 2008
(4) A decision of the Board is taken by resolution of the majority of the member s present at any meet ing of the Board and, in the event of an equality of votes on any matter, the person presiding at the meet ing in question shall have a cast ing vote in addition to his or her del iberat ive vote as a member of the Board.
(5) N o decision taken by or act performed under the authority of the Board shall be invalid by reason only of—
(a) a vacancy on the Board; or (b) the fact that a person who was not entitled to sit as a member of the Board, sat
as a member at the t ime when the decision was taken or the act was authorised. if the decision was taken or the act was authorised by the requisite majority of the members of the Board who were present at the t ime and entitled to sit as members .
Chief Execut ive Officer of South African National Energy Deve lopment Institute
11.(1) The Board appoints the Chief Execut ive Officer of the South African National Energy Development Institute.
(2) The Chief Execut ive Officer— (a) is responsible for and exercises control over the performance of the functions
of the South African National Energy Deve lopment Institute; and (b) must report on the affairs of the South African National Energy Deve lopment
Institute to the Board as may be required of him or her by the Board. (3) If the Chief Execut ive Officer is absent or unable to carry out his or her duties or
in the event of a vacancy, the Board may appoint an employee of the South African National Energy Development Institute to act as Chief Execut ive Officer, and that employee shall, while so acting, have all the powers and perform all the dut ies of the Chief Execut ive Officer.
(4) The Chief Execut ive Officer is appointed for a period of not more than five years , but may be reappointed on the condi t ions , including condi t ions relating to the payment of remunerat ion and a l lowances , which the Board may determine in accordance with a system approved, from time to t ime, by the Minister, with the concurrence of the Ministers of Finance and Science and Technology.
(5) The Chief Execut ive Officer must enter into an annual performance contract with the Board and the Board must assess his or her performance annually.
(6) Any dispute between the Board and the Chief Execut ive Officer which cannot be amicably resolved must be referred to arbitration in terms of the Arbitration Act, 1965 (Act No. 42 of 1965).
South African Nat ional Energy D e v e l o p m e n t Institute employees and condit ions of service
12. (1) The Chief Execut ive Officer of the South African National Energy Development Institute may. on the condit ions which must be determined by the Board, appoint the employees of the South African National Energy Deve lopment Institute w h o m it deems necessary to assist the South African National Energy Deve lopment Institute in the performance of its functions.
(2) The South African National Energy Deve lopment Institute must pay its employees such remunerat ion, a l lowances , subsidies and other benefits as the Board may determine, in accordance with a system approved from time to t ime by the Minister, with the concurrence of the Minister of Finance.
(3) The South African National Energy Deve lopment Institute may, in addit ion to employees referred to in subsection (1), be assisted in the performance of its functions by officers and employees in the public service who have been placed at the disposal of the South African National Energy Development Institute in terms of the Public Service Act. 1994 (Proclamation No . 103 of 1994).
(4) The Board may. on such condit ions as it may deem fit and for a fixed period of t ime, second an employee of the South African National Energy Deve lopment Institute
Act No. 34, 2008 NATIONAL ENERGY ACT. 2008
to perform a particular service for an organ of state or for the government of any other country or territory, provided tha t—
(a) such an employee ' s rights, privileges and benefits by virtue of his condi t ions of service as an employee of the South African National Energy Deve lopment Institute are not adversely affected by such secondment ; and
(b) such employee consents thereto.
Transitional provis ions
13. (1) In this sec t ion— (a) " C E F (Proprietary) L td . " means the company referred to in the Central
Energy Fund Act, 1977 (Act No . 38 of 1977): (b) " N E E A " means the entity known as the National Energy Efficiency Agency
which existed immediately before the commencemen t of this Act as a division of C E F (Proprietary) Ltd.: and
(c) " S A N E R I " means the entity known as the South African National Energy Research Institute which existed immediately before the c o m m e n c e m e n t of this Act as a division of C E F (Proprietary) Ltd.
(2) As from the date of commencemen t of this A c t — (a) the persons w h o immediately before that date consti tuted the personnel of
S A N E R I and of N E E A . are deemed to be the personnel of the South African National Energy Development Institute, without any interruption of service; and
(b) all assets and liabilities which vested in S A N E R I and N E E A as divis ions of C E F (Proprietary) Ltd, immediately before that date vest in the South African National Energy Deve lopment Institute.
Funding of South African National Energy D e v e l o p m e n t Institute
14. (1) The funds of the South African National Energy Deve lopment Institute consist of—
(a) money appropriated by Par l iament : (b) donat ions or contr ibut ions which the South African Nat ional Energy
Development Institute may receive from any person, body, government or adminis t ra t ion: and
(c) money received from any other appropriate source. (2) The South African National Energy Development Institute must utilise its funds
for defraying expenses in connect ion with the performance of its functions. (3) The South African National Energy Development Institute must utilise its money
in accordance with the s tatement of its est imated income and expendi ture contempla ted in subsection (4), as approved by the Minister.
(4) The Board must in each financial year, as required by the Public Finance Managemen t Act, submit a s tatement of the South African National Energy Develop­ ment Institute 's est imated income and expendi ture during the following financial year to the Minister for his or her approval .
(5) The Board may invest any unexpended portion of the South African Nat ional Energy Development Institute's funds with the Corporat ion for Public Deposits established in terms of section 2 of the Corporat ion for Public Deposi ts Act, 1984 (Act No. 46 of 1984) or. subject to the approval of the Minis ter with the concurrence of the Minister of Finance, dispose thereof in any other manner.
(6) The Board may create surplus funds as envisaged by subsection (5) and deposi t such funds as the Minister, acting with the concurrence of the Minister of F inance , may approve.
Account ing and audit ing at South African National Energy D e v e l o p m e n t Institute
15. (1) The Chief Executive Officer is the account ing officer charged with the responsibility of accounting for all money received and payments made by the South African National Energy Deve lopment Institute.
(2) The account ing officer must cause such records of account to be kept as are necessary to represent fairly the state of affairs and business of the South African
Act No. 34, 2008 NATIONAL ENERGY ACT. 2008
National Energy Deve lopment Institute and to explain the t ransact ions and financial position of the business of the South African National Energy Development Insti tute.
(3) The account ing and compilat ion of annual financial s ta tements of the South African National Energy Development Institute must be done in accordance with the provisions of the Public Finance Management Act .
Discoveries , invent ions and improvements
16. (1) Subject to subsect ions (5) and (6), the rights in all d iscover ies and invent ions and in all improvements in respect of processes , apparatus and machines made b y —
(a) employees of the South African National Energy Deve lopment Institute or officers and employees in the public service who have been placed at the disposal of the Energy Research and Development Divis ion of the South African National Energy Development Institute in terms of section 12(3);
(b) persons assisting the South African National Energy Deve lopmen t Institute with any investigation or research: or
(c) persons to w h o m contracts , including bursaries or grants-in-aid, have been granted by the South African National Energy Deve lopment Inst i tute,
vests in the South African National Energy Development Institute. (2) The South African National Energy Deve lopment Institute may m a k e the
discoveries , inventions and improvements referred to in subsection (1) avai lable for use in the public interest subject to the condit ions and the payment of fees or royalt ies that the South African National Energy Development Institute may de termine .
(3) In respect of the rights in any discovery, invention or improvement that are contemplated in subsection (1). the South African National Energy Deve lopment Institute may award to the person responsible for the discovery, invention or improvement such bonus as it deems fit, or make provision for financial part icipation by him or her in the profit der ived from such discovery, invention or improvement to such extent as the Minister may determine with the concurrence of the Minis ter of F inance .
(4) The South African National Energy Development Institute may apply for a patent in respect of any discovery, invention or improvement contemplated in subsection (1), and shall for the purposes of the Patents Act . 1978 (Act No. 57 of 1978), be regarded as the assignee of the discoverer or inventor in quest ion.
(5) Unless it is otherwise agreed, the rights in a discovery, invention or improvement made by the South African National Energy Development Institute in the course of an investigation for or on behalf of another person, government or administrat ion shall vest with the South African National Energy Deve lopment Institute.
(6) The provisions of this section shall not apply in respect of a discovery or an invention or improvement referred to in subsection (1) which, in the opinion of the Minister, was made by the person concerned other t han—
(a) in the course of his or her employment as an employee of the South African National Energy Deve lopment Institute;
(b) dur ing the performance of functions in respect of which he or she has been placed at the disposal of the South African National Energy Deve lopmen t Institute in terms of section 12(3):
(c) in the course of any investigation or research while assisting the South African National Energy Deve lopment Institute; or
(d) in the course of any research in respect of which he or she receives a bursary or grant-in-aid from the South African National Energy Deve lopment Institute, which is not connected with such employment , functions, investi­ gation or research.
Act No. 34, 2008 NATIONAL ENERGY ACT. 200S
C H A P T E R 5
S E C U R I T Y OF SUPPLY
Acquisi t ion and maintenance of national strategic energy feedstocks and carriers
17. (1) The Minister may, in a prescribed manner, for the purposes of ensuring security of supply, direct any state-owned entity to acquire, maintain, moni tor and manage national strategic energy feedstocks and carriers.
(2) The nominated s tate-owned entity must perform the functions contempla ted in subsection (1) in accordance with the relevant published security of supply strategies or policies.
(3) The strategies or policies contemplated in subsection (2) may contain but not be limited t o —
(a) the min imum level of energy carrier or energy feedstock for the product ion of an energy carrier:
(b) the condi t ions under w h i c h — (i) the strategic energy feedstocks and carriers may be built; and
(ii) wi thdrawals may be made from such strategic energy feedstocks and carriers;
(c) cost and benefit analysis; (d) funding mechan ism for such energy feedstock or carrier: and (e) obl igat ions to be imposed, on producers of energy feedstocks, to supply to the
nominated s tate-owned entity the requisite energy feedstock, in a manner prescribed by regulation.
(4) Before finalising the strategy or policy, the Minister m u s t — (a) invite public comments on such strategy or policy; and (b) duly consider such comments .
Investment in and maintenance of Energy Infrastructure
18. The Minister may, for the purposes of ensuring security of supply, direct any s ta te-owned entity, in a prescribed manner, t o —
(a) undertake security of supply measures ; (b) provide for adequate investment in energy infrastructure; (c) invest in critical energy infrastructure; and (d) ensure upkeep of all critical energy infrastructure.
C H A P T E R 6
G E N E R A L P R O V I S I O N S
Regulat ions
19. (1) The Minister may, after consultation with those Cabinet Minis ters whose areas of responsibil i ty will be affected by the proposed regulat ions, without derogat ing from his or her general regulatory powers , by notice in the Gazette make regulat ions regard ing—
(a) the publication of energy statistics or information; (b) the type, manner and form of energy data and information that must be
provided by any person; (c) the form and manner of the link between the energy database and information
system to any other system within the public adminis t ra t ion; (d) min imum contr ibut ions to national energy supply from renewable energy
sources; (e) the nature of the sources that may be used for renewable energy contr ibut ions
to the national energy supply; (f) measures and incentives designed to promote the product ion, consumpt ion .
investment , research and development of renewable energy: (g) min imum levels of energy efficiency in each sector of the economy; (h) steps and procedures necessary for the application of energy efficiency
technologies and procedures;
Act No. 34. 2008 NATIONAL ENERGY ACT. 2008
(i) labelling for energy efficiency purposes of household appl iances , devices and motor vehicles;
(j) prohibit ion of the manufacture, or importat ion or sale of electrical and electronic products and fuel burning appliances for reasons of poor energy efficiency:
(k) s tandards and specifications for energy carriers; (I) energy efficiency standards for specific technologies , processes , appl iances .
devices , motor vehicles and buildings; (m) holding of strategic energy feedstocks and carriers, including financing
mechan i sms for such stocks; (n) energy conservat ion measures to be used during energy shortage, which may
include but not limited to the amount of energy to be saved, the duration for such measures and penalt ies associated with non-compl iance to such measures ;
(o) measures to ensure adequate provision of energy-related infrastructure; (p) measures to ensure operating reliability of all key energy infrastructure, to the
m i n i m u m standards as may be determined by the Minister ; (q) measures to promote security of supply through access to c o m m o n infrastruc­
ture by any party, where not provided for under any other legislation; (r) the prohibit ion of disposal methods of certain fuels or pos t -combust ion
res idues: (s) the safe, healthy and sustainable use of energy, s tandards and specifications,
not e lsewhere legislated or regulated, for— (i) the composi t ion, colouring, labell ing and form of energy carriers;
(ii) low-smoke fuels; (iii) the prohibit ion of the sale or combust ion of polluting fuels; (iv) cooking, heating, l ighting and other energy consuming household
appl iances; (v) transport of energy carriers;
(vi) the storage and packaging of energy carriers; and (vii) any other energy-consuming appliance in all sectors of the economy.
(t) any other matter that may or has to be prescribed, determined or provided for by regulation in terms of this Act.
(2) Before promulgat ing regulations, the Minis ter m u s t — (a) invite public comments on such regulat ions; and (b) duly consider such comments .
Offences and penalt ies
20. (1) A person w h o contravenes or fails to comply with any provision of this Act, shall be guilty of an offence and be liable on conviction t o —
(a) a fine not exceeding five million rand; (b) impr isonment for a period not exceeding five years ; or (c) both such fine and such imprisonment .
(2) The Minis ter may, by a notice in the Gazette, amend the amount referred to in subsection (1) in order to counter the effect of inflation.
Short title and c o m m e n c e m e n t
21. (1) This Act is called the National Energy Act, 2008 and comes into operat ion on a date determined by the President by proclamat ion in the Gazette.
(2) Different dates may be so fixed in respect of different provis ions of this Act.