1 Key Principles and Practical Considerations for NRS A Distributor Licensee Perspective AMEU Technical Convention October 2006 Gallagher Estate, Midrand Presented by Baden Chatterton Industry Association Resource Centre (IARC), Eskom Holdings Electricity Service Delivery - “The Challenge”

2 Personal Introduction  Employed at Industry Association Resource Centre (IARC), previously Distribution Technology, R&S Division in Eskom Holdings  Distribution Wires Incentive Based Regulation (IBR) Implementation Committee Chairman responsible for the national strategy and co-ordination of : Technical and financial aspects of the Distribution network performance component of the Eskom Multi Year Price Determination (MYPD) for  Distribution Network Performance and Quality of Supply Study Committee (SC) Chairman responsible for the data, systems, measuring, reporting and management of : Network Interruption Performance Quality of Supply (QOS) Equipment Reliability

3 Personal Introduction Cont.  Member of the South African industry NRS 048 working group (WG) responsible for the “NRS Quality of Supply” basket of standards  Author of NRS standard on behalf of the NRS 048 WG under the auspices of the Electricity Liaison Suppliers Committee (ELSC)

4 Presentation Overview  1. Setting the scene…….  2. Introduction and overview of NRS  3. Key aspects of NRS unpacked  4. Way forward NRS : Medium Voltage Network Interruption Performance Measuring and Reporting Standard For NRS 048 reporting purposes, MV is defined as the set of nominal voltage levels 1 kV ≤ Un < 44 kV

5 1. Setting the Scene……

6 Network Interruption Performance Quality of Supply Power Quality Reliability and Availability of Supply : NRS and 8 - Frequency of interruptions - Duration of interruptions Sustained interruptions Momentary interruptions Quality of the Voltage Waveform : NRS Voltage dips - Voltage regulation - Harmonics - Flicker - Unbalance Power Quality Unpacked

7 GENERATION Coal Gas Turbine Hydro Electric Pump Storage Nuclear Transmission Substations Distribution Lines Customer MV Lines (11, 22 and 33kV) TRANSMISSION 765 to 220 kV Lines DISTRIBUTION 132kV 88kV 66kV 44kV LV Line (380/220V) Distribution Substations Electricity System in South Africa MV/LV transformer

8 Residential Traction Agriculture Key Customers Commercial Redistributors Prepaid Mining & Industrial Customers Expectations, Perceptions and Experiences Power Quality provided by licensees Customer Expectations and Experiences Versus Actual Power Quality Provided

9 Why Measure……and Report ? “ To measure is to know.” “If you cannot measure it, you cannot improve it……..” Lord Kelvin, IEC's first President (1906) NRS provides a standard and consistent framework of MV network interruption performance measurement and reporting by distributor licensees in South Africa

10 Network Interruption Performance is much more than just SAIFI and SAIDI…….. Planning and Design Asset Management System Automation Network interconnectivity Universal Access Program Protection and telecontrol External Environment Lightning Winds Theft Storms Vegetation Work/Build Management Quality and accuracy of build Network Operation Switching/operating Fault finding Supply restoration Skills, behaviour and resources Staff skills and training Manpower optimisation Network Performance Planned Work Maintenance Refurbishment Live work Staff training Performance Measurement How and what is measured ? Inclusions/exclusions of events Systems and Data Outage management system Data accuracy and completeness SCADA penetration SAIDI : System Average Interruption Duration Index SAIFI : System Average Interruption Frequency Index

11 2. Introduction and Overview of NRS 048-6

12 Overview of the NRS 048 Standards NRS 048 : Quality of supply standard for Engineering or Wires NRS 047 : Quality of service standard for Customer Services or Retail

13 Acknowledgements for NRS  Tony Dold, NRS 048 WG Chairman, eThekewni Electricity  Francisa Mabuza, Project Leader, IARC, Eskom Holdings  Nelson Mandela Metro  Eskom Holdings (Dx, Tx, KSACS, Corporate and R&S)  SABS  Ekurhuleni Municipality  City Power  EIUG  Tshwane Electricity  Glass Industry  Chamber of Mines  City of Cape Town  Mondi Paper  Mangaung Municipality  DPE  NERSA  IST OTOKOV

14 Key Objectives of NRS  Provide standard, accurate and reliable network interruption performance measures for South Africa  Minimum future system and data requirements for interruption capturing and recording for licensees  Framework for local and international network performance (reliability) benchmarking and best practices  Assist NERSA and licensees with the implementation of Incentive Based Regulation (IBR)  Common industry high level interruption cause code hierarchy : identifying problem areas  Provide annual regulatory reporting guidelines 

15 Foundation for NRS  International standards, work and developments IEEE P1366 standard (USA) IEEE Task force on reporting practices CIGRE : Technical report TB261 UK regulator (ofgem) : “QOS” related standards  Local work, lessons learnt and experiences Eskom Distribution standards Distributor licensees AMEU role-players Customer and industry role-players input

16 3. Key Aspects of NRS Unpacked Refer to the final draft standard (version 4.2) or to the published paper for the technical details and additional information

17 Scope of NRS Implementation 1. Interruption performance requirements 7. Performance reporting requirements 6. Data and change management NRS standard 2. Interruption categories for reporting 5. Interruption cause code categories 4. Event data auditing and validation 3. Definition for performance indices It is recognised that NRS may not be practically and financially possible currently for some licensees and is a long term objective for the effective management of MV network interruption performance in South Africa

18 Key Concepts Introduced  Interruption categories for reporting Unplanned (“U”) Planned (“P”) Customer related (“C”) Intake supply (“S’)  Customer network link (CNL) and end state levels Data connectivity model (HV, MV and LV) % data accuracy and completeness levels  Re-interruptions and criteria for counting Definition and strict application criteria Comprehensive explanatory notes

19 Key Concepts Introduced Cont.  Pre-arranged events for planned interruptions Treatment and counting of planned and co-ordinated interruptions for reporting  Generic customer categories Broad and generic customer category descriptions Long term (forward looking) regulatory requirements  Classification and reporting of major events Criteria A : national comparison of licensees Criteria B : year-on-year licensee performance comparison and tracking Criteria C : internal licensee reporting

20 Key Concepts Introduced Cont..  Accuracy reporting estimation methodology Method to audit and estimate the accuracy of the reported performance measures by licensees “Gatekeeper” to ensure the accuracy and integrity  Data and change management (software) Requirements for data archiving Requirements for tracking any system changes  Different types of licensee reporting Annual power quality reporting Future incentive based (IBR) reporting Reporting for benchmarking purposes

21 4. The Way Forward

22 Implementation  Solid future framework for EDI  4 to 7 years business plan, in order to be completely implemented by the licensees  Some licensees may not meet the current requirements and may require selective exemptions  Resource and financial constraints that need to be managed  Open invitation for any assistance (011)

23 The challenge is now for the distributor licensees to implement the NRS standard and start improving their electricity service delivery – reliability and availability of electricity supply. Electricity Service Delivery - “The Challenge”

24