2. DEVELOPMENT OF INTEGRATED STRATEGIC DEVELOPMENT FRAMEWORK FOR KNYSNA MUNICIPALITY REPORT ON STATUS QUO OF ELECTRICAL INFRASTRUCTURE October 2013

3. Introduction Background Drawings Eskom Electrical Infrastructure Knysna Municipality Electrical Infrastructure General Knysna and Buffalo Bay Sedgefield Karatara Rheenendal Executive Summary Index STATUS QUO: ELECTRICAL INFRASTRUCTURE

7. Comparison of Knysna’s Electricity Tariffs with other Municipalities TypeKnysnaBitouGeorgeMossel BayHessequaSwellendamOudtshoorn AR 140 R 138R 149 R 193 BR 751R 918R 858R 796R 810R 837R 867 CR 1 645R 1 828R 1 716R 1 620R 1 747R 1 781R 1 815 DR 1 706R 1 845R 1 558R 1 493R 1 270R 1 870R 1 496 ER 3 074R 2 962R 3 116R 2 987R 2 376R 3 739R 3 092 FR 3 717R 4 345R 3 116R 2 987R 2 688R 3 739R 3 293 GR 9 189R 8 814R 9 347R 8 960R 7 111R 11 218R 10 088 HR 29 586R 26 584R 31 358R 26 734R 26 235R 32 476R 29 052 IR139 682R128 695R155 069R148 066R133 572R170 425R149 496 Monthly cost incl. VAT STATUS QUO: ELECTRICAL INFRASTRUCTURE

10. ±2% Drop in annual kWh consumption over last 4 years STATUS QUO: ELECTRICAL INFRASTRUCTURE

11. ±12% Drop in annual kWh consumption over last 5 years STATUS QUO: ELECTRICAL INFRASTRUCTURE

12. ±4% Drop in annual kWh consumption over last 5 years STATUS QUO: ELECTRICAL INFRASTRUCTURE

13. ±15% Drop in annual kWh consumption over last 5 years STATUS QUO: ELECTRICAL INFRASTRUCTURE

14. ±20% Drop in annual kWh consumption over last 5 years STATUS QUO: ELECTRICAL INFRASTRUCTURE

15. EXECUTIVE SUMMARY Report No 4991/E/R1 was prepared by Clinkscales Maughan-Brown to address the status quo of the Electrical Infrastructure of both Eskom and the Municipality within the municipal boundaries. The report provides references to similar work done in this regard in the recent past, and which is updated and expanded upon in this report. A layout plan No 4991/E/01 is included in this report showing the existing Eskom and municipal HV and MV networks, and the approximate supply areas of same. Drawing No’s 4991/E/02 and 03 are also included, which show the future developments in the Knysna area taken into account in the master plan for Knysna (Drawing No 02), and the Eskom 66 kV and municipal 22 kV networks recorded in the same plan (Drawing No 03). Of note is that if all the future developments take place that have been recorded in the Knysna master plan, then the town’s peak MVA demand will more or less double. This shows that there is significant potential for growth if developments of this nature can be activated. Eskom recently completed a second 132 kV overhead line between George and Knysna, which provides 80 MVA of additional capacity. This should cancel the need for the restrictions the Municipality had to place on the electrical supply to certain new developments in recent years. STATUS QUO: ELECTRICAL INFRASTRUCTURE

16. Executive Summary (cont) The Municipality is the Supply Authority for the towns of Knysna, Buffalo Bay, Sedgefield, Karatara Bosdorp and Karatara Welsynsdorp, whilst Eskom is same for Rheenendal. Eskom provides a bulk supply to each of the town’s for which the Municipality is the Supply Authority, but also has a very large rural HV network within the municipal area supplying several other consumers of smaller capacity. In recent years the Municipality significantly upgraded their primary MV network, which should provide enough capacity to supply new developments in close proximity thereof for at least the next five (5) to ten (10) years. It is, however, necessary to particularly extend the secondary MV network to cover new areas for development. The Municipality’s electricity tariffs and the Capital Contributions payable for new developments or upgrading of existing supplies, compare favourably with similar charges applied by other nearby Municipalities. The tariffs for Commercial and Small Industrial Consumers should, however, be reviewed to make it more competitive. STATUS QUO: ELECTRICAL INFRASTRUCTURE

17. The consumption data of the towns under the Municipality’s control shows a significant reduction in consumptions since 2008, and ranges between 2 and 20% for the various towns. This can be largely attributed to the slowing down of new developments as a result of the current poor economic climate. Other less significant factors are the limitations placed on new developments in terms of supply capacity as mentioned in the report, and consumers resorting to energy efficient devices. The information and statistical data provided by Mr Len Richardson and his staff from the Municipality’s Electrical Department is acknowledged. Executive Summary (cont) STATUS QUO: ELECTRICAL INFRASTRUCTURE