1. Economics Services Presentation to the Portfolio Committee on Minerals and Energy on the Electricity Regulation Bill B 29 – 2005 REINTRODUCED 31 OCTOBER 2005 Chamber of Mines of South Africa

2. Economics Services PRESENTED BY DICK KRUGER ASSISTANT ADVISER: TECHNO-ECONOMICS CHAMBER OF MINES

3. Economics Services THE CHAMBER OF MINES PRIVATE SECTOR MINING EMPLOYER ORGANISATION COMPANIES AND ASSOCIATIONS 90 % OF MINING INDUSTRY BY VALUE

4. Economics Services MINING INDUSTRY 6,2 % OF GDP OR R55 BILLION 417 000 EMPLOYEES 1 200 ELECTRICITY CUSTOMERS

5. Economics Services MINING INDUSTRY 17,6 % OF ELECTRICITY SOLD 110 000 000 TON COAL

6. Economics Services ELECTRICITY ON MINES MAJOR ENERGY CARRIER PRODUCTION EQUIPMENT SAFETY CRITICAL APPLICATIONS

7. Economics Services ELECTRICITY ON MINES SUPPLY TO NON MINING APPLICATIONS HOSTELS AND HOUSES HOSPITALS, CLINICS, SCHOOLS ETC

8. Economics Services Electricity distribution on mines Receiving substation Mine substation Electricity from Eskom Hostels/houses workshops workingsplantother consumers on property

9. Economics Services POLICY EDI RESTRUCTURING ? DEVIATION FROM POLICY ? UNCERTAINTY

10. Economics Services OWN DISTRIBUTION DEFINITION < 132 kV => LICENCE FOR OWN SYSTEM UNDUE BURDEN – NO VALUE EXCLUDE OWN DISTRIBUTION

11. Economics Services PRIVATE DISTRIBUTION OTHER CONSUMER ON MINES NO OTHER SUPPLY EXCLUDE < 50GWh / ANNUM WHERE NO PROFIT

12. Economics Services CUSTOMER RIGHTS NOT IN BILL OBJECT: SAFEGUARD NEEDS AND INTERESTS OF CUSTOMERS REGULATIONS ON RIGHTS

13. Economics Services DISPUTES AMBIGUOUS PROVISIONS FUNCTION OF REGULATOR

14. Economics Services OTHER ISSUES RIGHTS OVER STREETS ISSUING OF LICENSES CUSTOMER CATEGORIES

15. Economics Services QUESTIONS ?