Question: Read the case below and answer the questions that follow: Modernising network industries In energy planning the base case of the Integrated Resource Plan (IRP)

Read the case below and answer the questions that follow:

Modernising network industries

In energy planning the base case of the Integrated Resource Plan (IRP) should be unconstrained so that all policy options can be compared relative to the true least-cost option; the electricity tariff path should be managed in a transparent and predictable manner; the over-reliance of municipal budgets on electricity revenue needs to be reconsidered. Independent Power Producers (IPPs) should not be frustrated and grid investments should be monitored more closely. We need to restructure the electricity sector to support long-term growth and create a secure energy supply, a sustainable electricity utility, and the conditions for higher investment in electricity generation, transmission, and distribution. In terms of the information and communications technology sector, spectrum should be allocated through an auction, with provisions for effective rivals, conditions for universal service and access, and a small set-aside for a wholesale open access network. In addition, broadband should be rolled out to underserved areas enabled through a more competitive telecoms sector and lower data prices. We need to adopt effective regulation for the transport sector and introduce separate accounting divisions or separate audited ring-fenced financial statements for the various operating divisions of Transnet to ensure cross subsidies are made explicit, leverage private sector participation to grow investment, and introduce competition in ports and rail. Other interventions that can improve freight transport include improving coordination between shippers and transport companies; ensuring effective intermodal, inter-regional, and institutional cooperation; and encouraging the shift from road to rail where practical and efficient. For public transport to play a significant role in overcoming historical spatial planning requires the integration of modes through local government and the densification of cities in specific nodal areas along identified corridors. In addition, we should consider a review of fuel price regulation and implement strategies to formalize the taxi industry. The water sector suffers from an infrastructure backlog and the current process for investigating appropriate institutional options for service provision needs to be finalised. An independent water regulator can improve the overall efficiency and effectiveness of water provision and facilitate appropriate price setting. When it comes to regulated prices: (i) unregulated areas such as rail, road, and water should be regulated urgently; (ii) where regulators exist, we need to ensure they have the required capacity to effectively perform their regulatory function; and (iii) regular reviews of regulated prices and their underlying formulae need to become the norm to ensure these are updated to reflect the latest available information and international best practices.

Question:

Apply an organisational plan to each of these different sectors and link specific time-frames for your plans! Make sure that you have a contingent-and/or crisis management plan in place, for example the recent unrest crisis SA is facing?

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