IMPACT ASSESSMENT QUESTIONNAIRE
- respoNdent contact information
Full name
Company/Organisation name
Position
Date
Phone number
Email address
Should we contact you for further information? Yes No
- about your business
Type of business Sole trader Partnership
Private company
Economic sector
No. of current employees
Are your operations energy intensive?
What was your alternative fuel at the
time of conversion to natural gas?
How long have you been using
natural gas, and what do you use it for?
- impact of the agreement on your business
Theme 1: Gas pricing
The Agreement makes provision for a price capping mechanism; discounts to a certain class of customers; and minimum and maximum prices for piped gas. Essentially, the provisions seek to balance both the interest of the customer and that Sasol Gas as the supplier by ensuring affordable access to gas and that Sasol Gas receives reasonable returns on their cost of supply. The purpose of this section is to assess the impact of the pricing provisions of the Agreement on gas prices, particularly their direct/indirect economic impact to end-users.
- Do you consider that the pricing mechanism in the Agreement has produced some economic benefits for your business? [yes or No]
- If yes, what would be the estimate value of these benefits per annum since switching to gas?
- Was the turnover and profitability of your business reduced or increased since the changeover to gas? Please estimate the impact of the applicable pricing provisions on your turnover and profits.
- Did the pricing mechanism in the Agreement influence your business decision to switch to natural gas?
- Did the supply of gas at the MVP prices over the 10 year dispensation period offer to some extent the required certainty to your business?
- If not, which way would you have preferred Sasol to implement the pricing provisions of the Agreement?
- Please provide your profile of energy costs savings since your business changeover to gas by completing the attached document on MVP calculation.
- Would you say, the energy costs resulting from the use of gas has over the years influenced any of your business decisions that contributed to your local economy such as employing more people, increasing your production capacity, etc.
- What was the impact on the competitiveness of your business relative to other businesses inyour sector (i.e., No significant change, Disadvantage or Advantage); and please give details.
- Please provide any wider impacts that you believe may be important to measure the impacts of the pricing provisions in the Agreement
Theme 2: Security of supply
This theme seeks to determine the impact of the Agreement and its resultant activities on energy security. This focuses on the role of gas in providing energy security by examining the several factors that ensures the delivery of security of gas supply, namely - adequacy of gas infrastructure, access to gas supply and pipeline integrity as key indicators to quantify this impact .
Adequacy of gas infrastructure
- How often have you experienced interruptions in gas supply since the changeover to gas?
- Were these interruptions attributed to the capacity constraints in the supplier’s network?
Existing pipeline integrity
- Since your changeover to gas, how often have you experienced interruptions in gas supply due to operational issues relating to the gas distribution and service pipelines directly supplying your operations?
Availability of gas supply
- Since your changeover to gas, how often have you experienced interruptions in gas supply due to the lack of sufficient gas supply from the supplier?
- Have you ever requested more access to gas supplies than what you have originally contracted for ? [yes or No]
- If yes, was your request granted or declined on the basis of lack of sufficient gas supplies?
Theme 3: Safety
One of the objects of the Gas Act (which encompasses the Agreement) is to ensure the safe, efficient, economic and environmentally responsible transmission and distribution of gas, amongst others. Natural gas is generally regarded as a safe and reliable alternative fuel thus it is anticipated that the adoption of natural gas as a fuel source (which in the SA’s case was facilitated through the Agreement) will improve safety in the end-users operations. The purpose of this section is to assess the safety effect of using gas in the end-users operations.
1.How would you rate the safety record of your operations before and after the switch to natural gas on a scale of 1 to 5? [1=poor to 5= best]
2.Would you attribute your safety record to the use of natural gas in your operations? / Response:
3.Have you experienced any fire incidents in your plant operations that could be directly attributable to the use of natural as a fuel source? [Yes or No]
4.If yes, what is the frequency of such occurrence per annum?
5.If no, would you directly attribute your incident free record to the use of natural gas? / Response:
Theme4: Environmental impact
One of the objects of the Gas Act (which encompasses the Agreement) is to ensure the safe, efficient, economic and environmentally responsible transmission and distribution of gas, amongst others. It is generally anticipated that achangeover to natural gas offers environmental benefits over other fossil fuels. The purpose of this section is to assess theenvironmentalimpact that previous coal and heavy fuel oils customers who switched over to natural gas could attribute to the introduction of natural gasin their operations(which was facilitated through the Agreement).
Air pollution reduction
1.Do you consider that the switch to natural gas has produced some environmental benefits for your business [Yes or No]
2.If yes, please quantify your net reduction in air pollution by your plant operations. / Response:
Conservation of water
3.If your business is a high water consumptive operation, do you consider that the switch to natural gas has resulted to water savings?
4.Please provide the quantities of water used at your plant or factory operations before and after the changeover to gas (if possible) / Response:
Please provide any additional statements you would like to make regarding this impact assessment (if any)
signature :______
Date :______
MVP Template
MARKET VALUE PRICING (MVP) MODEL - ELECTRICITY/COAL/LPG/HFO/IP / INFORMATION ON GASPeriod (year 0 - at the time of switching) / Y1 / Y2 / Y3 / Y4 / Y5 / Y6 / Y7 / Y8 / Y9
Volume (Indicate unit) / 0
Conversion (unit to GJ) / 0.00
Volume (GJ) / -
Cost of Alternative (Alternative Fuel Cost)
ActualFuel Cost (R) (alternative) / -
Actual Alternative Fuel Cost (R/unit) / -
Conversion (unit to GJ) / -
Efficiency (%) / 0%
ActualAlternative Fuel Cost (R/GJ) / -
Operating Expenses Difference (alternative fuel Vs Gas)
OpexDifferential (R) / -
OpexDifferential (R/GJ) / 0
Capex NPV differential (Alternative fuel Vs Gas)
Capex NPV Differential (R) / 0
Capex NPV Differential (R/GJ) / 0
MVP Calculation (R/GJ) / -
Notes:
- All data inputs should be done at rows that are coloured in yellow
- Can you provide a breakdown of operating expenditure (OPEX) incurred by your company's continued use of alternative energy source in comparison with operating expenditure of using gas.
- Provide the difference in costs to your company by determining the Nett Present Value (NPV) of the capital costs of your continued use of alternative energy source and the NPV of the capital costs involved in switching to gas as reflected in your accounts.
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