1. An EDI Solution Presentation to the combined Parliamentary Portfolio Committees of Energy & Cooperative Governance and Traditional Affairs July 31, 2012

2. The Presenter
Ken Robinson joined Accenture (in the former partnership) in 1969 and he qualified as a Chartered Accountant (South Africa) in 1974.
He is a member of Accenture’s Resources Practice specialising in electricity.
He has managed major process, information system and strategic change projects for clients across many industries, with 18 years in electricity.
He is a former president of the Institute of Management Consultants of South Africa

3. Separate Issues Being joined by new meter technology
Wires
Customers
National tariffs
Free basic electricity
Prepayment vs. Debt collection
Demand Side Management
Universal access
Reliable supply
Losses

4. Competition is not the Answer
Wires
Customers
Natural monopoly
Best not to promote sales just yet!

5. Political boundaries do not suit Wires
Buffalo City boundary is crossed by the Eskom network in 32 places
Municipal boundary
Transmission
MV lines 

6. Eskom is a competent distributor with an appropriate operating model
Governance
Mandate
Processes
KPIs
Organisation structure
Competencies
Business behaviour (culture)
Technology
Data
Systems
Facilities
Budget
& Capital Resources
Relationships

7. Solution Government & Eskom prepare for distributor mergers
Eskom states how many mergers it can achieve across its provincial operations – supported by shareholder
May require changes to laws & regulations
Requires a valuation framework
Regulator applies distribution standards to all distributors
Regulator withdraws licences from the “20 lowest”
May be for failure of Wires and/or Customer operations
These municipalities must choose a supplier
May choose Eskom, City Power, Centlec, other licensed distributor
Many will choose Eskom
Eskom & other distributors manage “going concern” mergers
Employees, assets, shared assets, asset data, liabilities, obligations, customer data, facilities, contracts (e.g. meter reading)