This high level of under expenditure has also emanated from programme 2 (Hydrocarbons and Energy Planning). This programme had only spent R12.8 million or 0.82 per cent of its budget in the first quarter as a result of delays in the transfer of R1.5 billion which still had to be made to the Transnet Pipeline Construction of a petroleum pipeline. These delays were attributed to ongoing negotiations by the Department towards the signing of contracts as part of its service level agreement with the Transnet Pipeline. These also included conditional grants such as National Electrification Programme Grant, Electricity National Electrification Programme Grant, electricity Demand side, Working for Energy, and the conditional Grant to Eskom. While there has been an overall under expenditure, there are certain programmes which have spend beyond their projections. The expenditure on goods and services has gone faster than projected. The Department had allocated R8.7 million for goods and services but it had spent R4.0 million or 46 per cent of the total allocation for goods and services at the end of the first quarter. This was due to the financial pressures encountered as a result of an insufficient operational budget to cover for the day to day expenses related to inspection and verification that had to be conducted under the Integrated National Electrification programme (INEP).