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The Association of Municipal Electricity Utilities (Southern Africa) AMEU Committee Meetings 18-19 June 2014 William Olivier 15 August 2014 AMEU GH Branch.

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Presentation on theme: "The Association of Municipal Electricity Utilities (Southern Africa) AMEU Committee Meetings 18-19 June 2014 William Olivier 15 August 2014 AMEU GH Branch."— Presentation transcript:

1 The Association of Municipal Electricity Utilities (Southern Africa) AMEU Committee Meetings June 2014 William Olivier 15 August 2014 AMEU GH Branch meeting Callie De Wet Sport Centre, Robertson

2 The Association of Municipal Electricity Utilities (Southern Africa) Content Wednesday 18 June 2014 – Standing Committee – Legal & Statutory Committee – Tariff Committee – Education & Training Committee – Publicity and Papers Committee Thursday 19 June 2014 – Technical Committee

3 The Association of Municipal Electricity Utilities (Southern Africa) Standing Committee meeting Financial Statements – 2014 budget March 2014: audited results indicate a surplus R Unpaid membership fees – 30% 8% increase in Convention registration fee – R4104 Governance workshop – 12 November 2013 – 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

4 The Association of Municipal Electricity Utilities (Southern Africa) Standing Committee meeting [cont] Affiliate matters – Request senior financial managers be members of AMEU – Voting by electronic ballot – 222 members – 147 unpaid – Branch affairs Convention Cable theft plenary session – To be considered at Papers Committee Electricity Revenue Management Benchmarking Initiative – Agreed to support subject to conditions

5 The Association of Municipal Electricity Utilities (Southern Africa) 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 paperposition paper – Presented to SALGA Joint Municipal Trading & Services (MTS) meeting – 12 June 2014 Legal & Statutory Committee

6 The Association of Municipal Electricity Utilities (Southern Africa) 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, EG 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 Co-generation – BY-LAWS MUST BE CLEAR - March 2014 e-Bulletin Legal & Statutory Committee (cont)

7 The Association of Municipal Electricity Utilities (Southern Africa) Construction regulations – Revised regulations promulgated in January 2014 – – February 2014 e-Bulletin Dti Designation Process – transformers – Presentation by Tapiwa Samanga Presentation – 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 Legal & Statutory Committee (cont)

8 The Association of Municipal Electricity Utilities (Southern Africa) 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 3 rd 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 Tariff Committee

9 The Association of Municipal Electricity Utilities (Southern Africa) Electricity Cost of Supply Study And Green Electricity Tariff – Guidelines for other municipalities available – March 2014 e-Bulletin Guidelines – What else can SALGA-GIZ do to assist munics with RE? Tariff Committee

10 The Association of Municipal Electricity Utilities (Southern Africa) NERSA – Electricity Resellers – NERSA looking at principles and policies and issued a consultation paper on 7 April 2014 – AMEU submission - 7 May 2014 AMEU submission – Complex issues which need to be handled with sensitivity due to revenue impact on Munics and Eskom – Public hearing scheduled for 22 July 2014 in Gauteng NERSA - Non-Financial Information (NFI) Manual – Second workshop held on 11 March 2014 – Apparently follow up was to be on 18 June 2014 Tariff Committee [cont]

11 The Association of Municipal Electricity Utilities (Southern Africa) Eskom – MYPD3 – 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 6-9 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 Tariff Committee (cont)

12 The Association of Municipal Electricity Utilities (Southern Africa) 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. Tariff Committee (cont)

13 The Association of Municipal Electricity Utilities (Southern Africa) 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 Education & Training Committee

14 The Association of Municipal Electricity Utilities (Southern Africa) 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 Education & Training Committee

15 The Association of Municipal Electricity Utilities (Southern Africa) 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? Technical Committee

16 The Association of Municipal Electricity Utilities (Southern Africa) Eskom System Supply StatusSupply 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 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 Technical Committee

17 The Association of Municipal Electricity Utilities (Southern Africa) 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 Technical Committee

18 The Association of Municipal Electricity Utilities (Southern Africa) Electrification/NEAC – 5-year electrification targets 1.4 million households (2014 target is 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 Technical Committee (cont)

19 The Association of Municipal Electricity Utilities (Southern Africa) Presidential Infrastructure Coordination Commission (PICC) - Strategic Integrated Project 10 focuses on delivery of electricity which has numerous socio- economic 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) Technical Committee (cont)

20 The Association of Municipal Electricity Utilities (Southern Africa) 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 Ease of investment in a Municipal area by investors / business Technical Committee (cont)

21 The Association of Municipal Electricity Utilities (Southern Africa) 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 Technical Committee (cont)

22 The Association of Municipal Electricity Utilities (Southern Africa) Website – Undergoing modernisation to accommodate increasing use of mobile devices – Due to go online by end June 2014 AMEU News – June 2014 edition being posted E-Bulletin – Apologies for late publication of April edition – No May edition Publicity and Papers Committee

23 The Association of Municipal Electricity Utilities (Southern Africa) 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 SALGA Publicity and Papers Committee

24 The Association of Municipal Electricity Utilities (Southern Africa) AMEU GH Branch meeting Robertson – 15 August 2014


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