Transcript Slide 1

The Association of Municipal Electricity Utilities (Southern Africa)
AMEU Highveld Branch meeting
Revive Transformers, Kliprivier
AMEU Committee Meetings
18-19 June 2014
Peter Fowles
27 June 2014
The Association of Municipal Electricity Utilities (Southern Africa)
Content
• Wednesday 18 June 2014
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Standing Committee
Legal & Statutory Committee
Tariff Committee
Education & Training Committee
Publicity and Papers Committee
• Thursday 19 June 2014
– Technical Committee
The Association of Municipal Electricity Utilities (Southern Africa)
Standing Committee meeting
• Financial Statements
– 2014 budget
• March 2014: audited results indicate a surplus R41 347
• Unpaid membership fees – 30%
• 8% increase in Convention registration fee – R4104
• Governance workshop – 12 November 2013
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Form of the Association – non-profit/voluntary
Expanded mandate of Standing Committee
General Secretary duties
Branch accounts – including payment to Branches (SARPA)
• Convention 2015
– 4 to 7 October 2015 at Sandton Convention Centre
The Association of Municipal Electricity Utilities (Southern Africa)
Standing Committee meeting [cont]
• Affiliate matters
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Request senior financial managers be members of AMEU
Voting by electronic ballot
222 members – 147 unpaid
Branch affairs
• Convention 2014 - Cable theft plenary session
– To be considered at Papers Committee
• Electricity Revenue Management Benchmarking
Initiative
– Agreed to support subject to conditions
The Association of Municipal Electricity Utilities (Southern Africa)
Legal & Statutory Committee
• ESLC mandate
– Changing structure to a formal ` non-profit’ legal identity
– Draft constitution being debated
– Limitation of liability – risk to participants?
• Boundary disputes
– Drakenstein – provision of information from Eskom
clarified.
– Standing Committee Task Team Workshop – 25 March
2014 produced position paper
– Presented to SALGA Joint Municipal Trading & Services
(MTS) meeting – 12 June 2014
The Association of Municipal Electricity Utilities (Southern Africa)
Legal & Statutory Committee (cont)
• Boundary disputes
– Agreed to recommend to NEC:
• SALGA engage NERSA on making SDA between Eskom and
municipality a condition of Eskom’s licence
• Seek legal opinion to provide clarity on rights of supply
• propose a collaborative approach between SALGA, AMEU, Eskom,
NERSA, DoE and DPE where a roadmap is agreed and put in place,
that recognizes the development and signature of an SDA en
route, and ultimately culminates in consolidation of supply rights
• Electricity supply bylaws
– Drakenstein were aiming to promulgate amended bylaws
by May 2014 to address EG and cogeneration
– BY-LAWS MUST BE CLEAR - March 2014 e-Bulletin
The Association of Municipal Electricity Utilities (Southern Africa)
Legal & Statutory Committee (cont)
• Construction regulations
– Revised regulations promulgated last week in January 2014
– February 2014 e-Bulletin
• Dti Designation Process – transformers
– Presentation by Tapiwa Samanga
– Support for local production and content, in the form of
designating sectors/products (where organs of State &
SOEs procure) by the Minister of Trade and Industry for
local production
– Pylons, cables, switchgear & possible transformers
– Can specify local production and content even if not
designated – section 9 (3) of PPPF
The Association of Municipal Electricity Utilities (Southern Africa)
Tariff Committee
• EIUG presentation - Concerns on the wheeling of
energy over municipal networks
– What is wheeling and why do we need it?
– Current challenges include economic, regulatory and
commercial
• Common, agreed and approved wheeling framework
– Eskom - problem not unique to municipalities
• 3rd party transportation of energy framework in public domain
• NERSA not responding to queries from EIUG or Eskom
– Agreement that NERSA should be driving the process and
AMEU to write to CEO
– EIUG to invite AMEU to participate in WG
The Association of Municipal Electricity Utilities (Southern Africa)
Tariff Committee
• Electricity Cost of Supply Study And Green Electricity
Tariff
– Guidelines for other municipalities available – March 2014
e-Bulletin
– What else can SALGA-GIZ do to assist munics with RE?
The Association of Municipal Electricity Utilities (Southern Africa)
Tariff Committee [cont]
• NERSA – Electricity Resellers
– NERSA looking at principles and policies and issued a
consultation paper on 7 April 2014
– AMEU submission - 7 May 2014
– Complex issues which need to be handled with sensitivity
due to revenue impact on Munics and Eskom
– Public hearings in all provinces to be scheduled in near
future
• NERSA - Non-Financial Information (NFI) Manual
– Second workshop held on 11 March 2014
– Apparently follow up was to be on 18 June 2014
The Association of Municipal Electricity Utilities (Southern Africa)
Tariff Committee (cont)
• Eskom – MYPD3
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RCA process for MYPD2 period still not complete
Prudence of OCGT use being analysed
Possible decision in July for implementation in 2015
Submitted some structural adjustments
• Rationalising and making simpler
• Change in peak times 6-8 am and 5-7pm : Winter ONLY
• No change in prices; pilots being conducted
• Eskom – funding of supplies
– Meeting with NT – 3 July 2013 as national problem
– Follow up meeting 4 March 2014 – no response yet from
National Treasury
The Association of Municipal Electricity Utilities (Southern Africa)
Tariff Committee (cont)
• Eskom's alternative tariff for municipalities
– NERSA consultation paper
• Date for comment – 28 November 2013
• Public hearing – 4 December 2013
– Only two presentations
• One indicated that most aspects of the proposed tariff
contravened the EPP principles
– NERSA ordered Eskom to design another tariff but this is
not possible with the restrictions imposed.
The Association of Municipal Electricity Utilities (Southern Africa)
Education & Training Committee
• Eskom training initiatives
– Line Construction Training Centre, Network Simulator
Coaching Centre & Virtual Learning Environment (VLE)
– Will be providing simulator facilities in all 9 provinces
• Taking over what used to be done at Eskom Training College
• MV/LV Line Construction Course – standardised throughout
country
– Virtual Learning Environment (VLE) project
• Targeting those who have not had training opportunities
• Digitised inter-active e-books
• Groups: 10 persons - Eskom employees (30%);external contractors
(20%); COW (20%) and Electrical Line Mechanic Trade (30%)
• Will not replace facilitators
• Challenges
The Association of Municipal Electricity Utilities (Southern Africa)
Education & Training Committee
• AMEU Electrical Training Working Group
– AMEU became custodian of the WG – demise of LGSETA
– Working on several important issues for standardisation of
(electrical) training in municipalities
– Meeting on 9 and 10 April 2014
– Approach to LGSETA to reconsider funding
• Administrator requested meeting with Chair of Committee
– Agreed that the Committee work will continue and next
meeting will be held 30 and 31 July 2014
The Association of Municipal Electricity Utilities (Southern Africa)
Technical Committee
• Review of the EDI’s Asset Status Report (ADAM)
– Estimate of backlog in 2008 – R27bn
– Draft report presented on 26 March 2014
• Backlog assessment and update – R56bn
• Priority Matrix and short term implementation
• Update ADAM business case (funding mechanisms & options)
– Samples:
• 21 municipalities and 2 Eskom regions
• 60+ municipalities to prioritise generic projects
• SWH programme
– Report on DoE workshop in Gauteng in May
– To be conducted in all provinces?
The Association of Municipal Electricity Utilities (Southern Africa)
Technical Committee
• Eskom System Supply Status
– AMEU/Eskom Workgroup
• Phuti Moloto - Ekurhuleni
• Vijay Batohi - eThekwini
• Paul Vermeulan – City Power
– Update:
• Rotational load shedding for the last two weeks despite use of
OCGTs, power buy-backs (interruptible loads) + IPPs
• Forecast for June – shortfall excl OCGTs is 3000 - 4000 MW
(assuming unplanned outages of 4500 MW)
• Shortfall expected to reduce to 2000 – 3000 MW for July to
September
• RE (Wind and Solar) provided +/- 300 MW in May
The Association of Municipal Electricity Utilities (Southern Africa)
Technical Committee
• Renewable Energy/Embedded Generation
– Guideline on the installation of embedded generation and
the impact it may have on the revenue of municipalities;
– SEA updated model on financial impact on AMEU website
– Updated GIZ model and guidelines on Cost of Supply Study
and Green Electricity Tariff on AMEU website
– GIZ Technical Workshop on integration (e.g. technical
connection rules, safety etc) of SSEG - 26 June 2014
• Markus Poeller facilitating plus technical expert from German
municipal electricity utility to share their experience
The Association of Municipal Electricity Utilities (Southern Africa)
Technical Committee (cont)
• Electrification/NEAC
– 5-year electrification targets
• 1.4 million households (2014 target is 265 000 + 15 000 non-grid)
• Substations + upgrades
– 2014/15 allocation letters distributed - changes in the
allocations for 2014/15 for INEP (msg 28 February 2014)
– 5% Eskom levy to be included in allocations in future
– Pre-engineering allowance of R1.5m per municipality –
guidance to be provided on how to report
– Department of Human Settlements (DoHS) policy on
internal wiring costs of homes – to be discussed between
DoE and DoHS – WCPG standard design
The Association of Municipal Electricity Utilities (Southern Africa)
Technical Committee (cont)
• Presidential Infrastructure Coordination Commission
(PICC) - Strategic Integrated Project 10
• focuses on delivery of electricity which has numerous socioeconomic benefits
• Energy security – transmission, distribution and universal access to
electricity
• Eskom will lead 3 SIPs, including SIP10 Coordination Office
• SIP 10 office – data collection, analyse data & identify constraints,
facilitate unblocking and produce reports (quarterly)
• Geospatial view of backlog
• Challenges-funding, skills, lack of standardisation, servitudes, EIA
• Indications of non-delivery – networks constrained, safety etc
• Reporting – aim is not to provide additional work for munics
• Budget spend – what is planned vs what is achieved (performance)
The Association of Municipal Electricity Utilities (Southern Africa)
Technical Committee (cont)
• Presidential Infrastructure Coordination Commission
(PICC) - Strategic Integrated Project 10
– Five focus areas
• Packages for municipalities to draw on root causes of their
challenges/ concerns
• Centralised procurement of electricity assets for municipalities
• District Planning centre – deliver planning and technical skills to
municipalities
• Infrastructure planning through shared servitudes
The Association of Municipal Electricity Utilities (Southern Africa)
Technical Committee (cont)
• Proposal to establish an Africa Utilities Telecoms
Council (UTC)
– Role to be played by the expansion of telecoms and ICT
technologies and services in future smart grids
– Organisational for model for proposed AUTC
• Non-profit trade association concentrating on telecoms as they
affect utility organisations in South Africa
• Benefits to utilities in developing relationships with energy and
telecoms regulators, ICT vendors and public telecom network
operators
The Association of Municipal Electricity Utilities (Southern Africa)
Publicity and Papers Committee
• Website
– Undergoing modernisation to accommodate increasing
use of mobile devices
– Due to go online by end June 22014
• AMEU News
– June 2014 edition being posted
• E-Bulletin
– Apologies for late publication of April edition
– No May edition
The Association of Municipal Electricity Utilities (Southern Africa)
Publicity and Papers Committee
• Convention 2014
– Theme is “MOVING TOWARDS SOUTHERN AFRICA’S
ELECTRICITY NETWORKS OF THE FUTURE”
– 39 submissions received by deadline of 2 April 2014
– Programme almost finalised
– Agreed to include a plenary session on Cable Theft in first
session following opening formalities
• SALGA Support of AMEU
The Association of Municipal Electricity Utilities (Southern Africa)
AMEU Highveld Branch meeting
Kliprivier
– 27 June 2014