1. INTRODUCTION ELECTRICITY DISTRIBUTION MAINTENANCES SUMMIT 9 & 10 JUNE 2008 GALLAGHER ESTATE – MIDRAND CLLR: S. Mashilo NATIONAL EXECUTIVE COMMITTEE MEMBER 1

2. TABLE OF CONTENT -Introduction -Background -Engineering Skills Shortage -Human Resource Challenges in Energy Sector -Solutions -Content -Summary -Conclusion 2

3. INTRODUCTION The Electricity Regulation Amendment Bill, Rationale and Intention are: To provide for licensing of all Reticulation Service Providers including municipalities. To provide a framework for setting of tariffs by municipalities. To empower the Minister to prescribe regulations for municipalities in relation to electricity reticulation services, including monitoring compliance and corrective action in the event of breach by municipalities. 3

4. Introduction cont… To make provision regarding the relationship between Municipalities as service authorities and service providers who provide reticulation services on their behalf. 4

5. BACKGROUND The Energy Industry is certainly one of the topical industries globally. It plays a key role in the economic and political dynamics of the globe The Modern Energy Industry is facing strategic challenges with choices to make with regards to global energy demand, skills shortages and talent management, political influences on the industry and renewable and alternative energy sources. 5

6. ENGINEERING SKILLS SHORTAGE South Africa has set itself a target of producing 2500 engineers per year, as part of government’s Joint Initiative on Priority Skill Acquisition (JIPSA), to help the country deal with skills shortages. JIPSA has targeted a limited number of priority skills that are thought to be some of the key constraints to the growth of the economy. There are shortages of skilled engineers throughout the engineering industry. The skills gap, an ageing work force, the fast pace of technological change and retention of staff are all issues to be given serious attention. 6

7. HUMAN RESOURCE CHALLENGES IN ENERGY SECTOR The negative public image that is challenging the industry’s recruitment efforts. The need for skills development of both new and incumbent employees. The ageing workforce in the industry and imminent retirement of a large segment of incumbent workers. The need for both conventional and new approaches to education and training. 7

8. SOLUTIONS Partnerships with higher education institutions. Developing new Training Programmes. Improving existing programmes. Expanding successful models e.g. Jipsa Transferring knowledge from the ageing workforce. Identify industry knowledge that is necessary to transfer from retiring workers to new workers. Scarce skilss allowances may have to be considered. 9

9. CONTENT http://www.sustainable.org.za 10 http://www.sustainable.org.za

10. SUMMARY There are several organisational efforts to address the skills shortage and the scale of the problem. Data from different sources varies, but there is an awareness about the skills gap and the need for skills development. Recruitment from abroad is helping to bridge the skills gap, but only in the short term. Training and delivery of skills takes time; so we need to act now. Need to adopt initiatives to raise the profile of engineering in schools and promote it as a suitable career. 11

11. SUMMARY CONT… The engineering sector has strong competitive advantages with exciting profiles and projects (renewable energy, environment etc). The sector need to look at new ways of recruitment, e.g. Links with schools, FET colleges and universities. 12

12. CONCLUSION Energy remains a critical driver of S.A. economic growth and competitiveness in the global economy of the 21 st Century. Solutions outlined will not only help address the structural changes, the energy industry is facing but will provide skilled workforce that can take advantage of the employment opportunities that exist in the industry. Municipalities play a vital dual role in helping meet the goals of the energy sector challenges to improve energy efficiency to communities and leverage relationships with private sector organisations to motivate them to do the same 13

13. End THANK YOU 14