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All enquiries and correspondence to be directed to the Head of Department
unless indicated otherwise by means of a formal letter signed by the head
of department: Electricity Licensing, Compliance and Dispute Resolution.
Tel: 012 401 4794
National Energy Regulator
Kulawula House
526 Madiba Street
Arcadia
Pretoria
PO Box 40434
Arcadia
0007
Tel: +27 (0)12 401 4600
Fax: +27 (0) 12 401 4700
www.nersa.org.za
DISCLAIMER
This is a final report considered a true reflection of the implementation of
the CAP based on information and evidence obtained from both the licensee
and site verification of plant condition conducted during the monitoring
process.
3
TABLE OF CONTENTS
EXECUTIVE SUMMARY ..................................................................................... 4
1. INTRODUCTION ........................................................................................... 5
1.1 OVERVIEW ................................................................................................. 5
1.2 MONITORING AND ENFORCEMENT OBJECTIVES ............................................. 5
2. METHODOLOGY .......................................................................................... 6
3. NERSA AND KWADUKUZA MUNICIPALITY DELEGATES ........................ 6
4. GENERAL INFORMATION ON KWADUKUZA MUNICIPALITY ...... ERROR!
BOOKMARK NOT DEFINED.
5. AUDIT FINDINGS .......................................................................................... 8
6. KWADUKUZA MUNICIPALITY’S PERFORMANCE ON NERSA
COMMUNICATION ............................ ERROR! BOOKMARK NOT DEFINED.
7. PROGRESS ON THE IMPLEMENTATION OF THE CORRECTIVE ACTION
PLAN ........................................................................................................... 09
8. PLANT CONDITION DURING AUDIT VS. MONITORING TIME ................ 24
9. CONCLUSIONS .......................................................................................... 31
10. RECOMMENDATIONS ............................................................................... 32
11. NEXT STEP ................................................................................................. 32
4
EXECUTIVE SUMMARY
The National Energy Regulator (NERSA) conducted a compliance audit on
KwaDukuza Municipality (‘the Licensee’) from 27 to 29 October 2014 to determine
its level of compliance with the licence conditions. The objective was to determine
the compliance of KwaDukuza Municipality with the legal, financial and technical
conditions of the electricity distribution licence. During the audit, KwaDukuza
Municipality representatives gave an overview, which addressed, among others,
the staff complement, asset management, infrastructure development, the
maintenance strategy and infrastructure projects done to date.
After the audit, findings were recorded in a draft report and forwarded to the
Licensee for management comments with regard to the correctness of the findings
in order to make the report final. On 05 February 2015, KwaDukuza Municipality
sent the management comments to NERSA. These were received well within the
prescribed time frame. The report was then considered final by NERSA and
KwaDukuza Municipality was then requested to send NERSA a signed, time-
bound corrective action plan (CAP) to address the highlighted instances of non-
compliance.
On 19 June 2015, KwaDukuza Municipality sent a CAP for NERSA’s perusal and
this was found to be acceptable as it addressed the issues highlighted by the audit.
The National Energy Regulator instituted a monitoring regime to ensure and
enforce the implementation of the CAP. On 07 and 08 December 2016, the
National Energy Regulator conducted a monitoring exercise on the
implementation of the CAP at KwaDukuza Municipality. The monitoring exercise
was conducted in order to determine the progress made in the implementation of
the CAP. The National Energy Regulator is of the view that addressing issues
raised during an audit will help KwaDukuza Municipality to be a more efficient and
effective licensee.
This report depicts all the findings as per the audit and presents the status quo in
terms of the progress that has been made at the time of the monitoring to address
the instances of non-compliance highlighted during the audit. During the
monitoring exercise, NERSA conducted site inspections to verify progress made
in the implementation of the CAP. The level of improvement is depicted in detail
in Section 7 of the report.
5
1. INTRODUCTION
1.1 Overview
The National Energy Regulator (NERSA) is required to monitor and
assess whether the electricity suppliers comply with the conditions of their
licences. The Energy Regulator approved a compliance monitoring
framework for electricity distributors in 2011, which acts as a guide on how
compliance audits and monitoring must be conducted. The framework is
also supported by the Electricity Regulation Act, 2006 (Act No. 4 of 2006),
Chapter 4 (a) (vii), which states that ‘the Regulator must enforce
performance and compliance; and take appropriate steps in the case of
non-performance’. The National Energy Regulator conducts the
compliance audits on licensed electricity distributors annually.
The National Energy Regulator regulates the energy industry in
accordance with Government laws and policies, standards and
international best practices in support of sustainable development. The
organisation issues licences to electricity distributors and therefore
requires audits to be conducted against key licence obligations. It is the
National Energy Regulator’s mandate to monitor and enforce compliance
with the licence conditions as per the Act. This monitoring process
enforces and ensures the improvement and sustainability of the licensees
for the betterment of the Electricity Supply Industry (ESI), which will lead
to improved quality of supply and service to customers.
1.2 Monitoring and Enforcement Objectives
The key objectives of the compliance monitoring and enforcement of the
corrective action plans are to:
a) enforce implementation of the corrective action plans;
b) help the licensee not to lose sight of critical matters that need to be
corrected;
c) help the licensee to start doing self-monitoring in terms of their
performance against licence conditions;
d) help the licensee to ensure that the quality of service and supply does
not decline; and
e) inform the Energy Regulator of the progress made by the licensee in
the implementation of the corrective action plans.
6
2. METHODOLOGY
A corrective action plan template was developed and sent to KwaDukuza
Municipality (‘the Licensee’) to populate all the instances of non-compliance
highlighted during the audit, together with the intended corrective action plan
(CAP) with target dates of implementation. This is to be used by the National
Energy Regulator to monitor the progress made and to establish whether the
timelines on the CAP were realistic and addressed the issues highlighted
during the audit.
The CAP was sent to the National Energy Regulator after being signed by the
relevant officials of the Licensee. The National Energy Regulator agreed on
the CAP and instigated a monitoring process that robustly monitors progress.
Progress is checked against target dates and remedial actions are
implemented on an ongoing basis. Proof and supporting documents are
requested and presented to the National Energy Regulator’s officials during
the monitoring process. Site verification was also done to compare the current
plant condition against the plant condition during the audit.
3. NERSA AND KWADUKUZA MUNICIPALITY DELEGATES
NERSA was represented by the following officials:
Mr Bongani Nhlabathi Compliance Monitoring Engineer
Ms Bulelwa Gobe Snr Engineer: Distribution Compliance
Ms Vuyelwa Poswa Dispute Resolution Officer
Mr Morris Mafuyeka Compliance Monitoring Technician
Mr Sanele Zulu Compliance Monitoring Technician
KwaDukuza Municipality was represented by the following:
Mr Nick Hall Director: Electrical Operations
Mr Nhlakanipho Biyela Director: Electrical Planning
Mr Nceba Dambuza Senior Manager: Electrical Operations
Mr Roderick Lue Manager: Electrical Reticulation, South
Mr Christo Prinsloo Manager: Electrical Distribution, South
Mr Vijay Sing Manager: Electrical Distribution, North
Mr Bheki Mpanza Manager: Electrical Reticulation, North
7
4. GENERAL INFORMATION ON KWADUKUZA MUNICIPALITY
KwaDukuza Local Municipality is an electricity distribution licence holder with
licence number NER/D/KZ292 and its supply areas are Dolphin Coast/Ballito
TLC, iLembe Regional Council and KwaDukuza/Stanger TLC as per
Schedule 1 of the licence. It has three bulk supply points with an installed
capacity of 422MVA and a maximum demand of 137MVA. The network
consists of 25.2km of 33kV Medium Voltage (MV) underground cable,
258.64km of 11 kV Medium Voltage (MV) underground cable, 452km of Low
Voltage (LV) underground cable, 460.95.km of 11 kV MV overhead lines and
646km of LV overhead lines.
It has 42,775 customers, which are categorised as follows: 30,769 prepaid
domestic; 10,459 domestic credit meters; 1,545 commercial; and 2 industrial
customers. The total geographical area of KwaDukuza Local Municipality is
approximately 710 km², with Electrical Network of approximately 525 km².
At the time of the monitoring, it was highlighted that all instances of non-
compliance that were noted during the initial audit have been addressed, with
the exception of staff vacancies. However, the Licensee did manage to fill
positions that were considered to be a priority to enable the Electricity
Department to deliver on its mandate. It was also mentioned that the Council
have approved a five-year plan, starting from the 2015/16 financial year, to
address vacancies that were highlighted during the October 2014 Electricity
Compliance Audit.
A recently reviewed master plan that caters for the Licensee’s network and
customer growth for the next five years is currently in place. The Licensee also
still pays its bulk purchases on time and regularly. The achievements of the
Electricity Department under the leadership of the Municipality were quite
significant. The exemplary performance and the commitment displayed by the
Electricity team of the Licensee should be something that all licensees aspire
to.
8
5. AUDIT FINDINGS
At the time of the audit, the following was highlighted to the Licensee as areas
that need attention and improvement:
a) The critical vacancies must be filled.
b) The KwaDukuza Local Municipality must indicate a clear position on the
ring-fencing status of the electricity business.
c) KwaDukuza Local Municipality should budget sufficient funds (6%) for
maintenance of the electricity network as required by the NERSA tariff
guideline.
d) The Licensee should ensure that all mini-substations are placed on well-
constructed plinths to prevent the mini-substations from sinking in.
e) The Licensee should apply to NERSA to amend Schedule 1 of their
Electricity Distribution Licence.
f) Vegetation management should be prioritised as certain areas that were
inspected during the audit indicated a lack of vegetation management.
g) Dust guards should be installed at the main entrance of the switching
rooms as certain switch-rooms had immense dust accumulation at the
time of the audit.
h) The Licensee should fast-track the upgrades undertaken so as to alleviate
penalties for exceeding their NMD.
i) The Master Plan and single line diagrams at some of the substations were
not accurate and need to be reviewed.
j) The Licensee must ensure that all the tariffs are implemented as approved
by NERSA.
k) Power quality measuring and monitoring must be implemented.
l) A control centre must be put in place.
m) Old and leaning wooden poles must be replaced.
n) All transformers leaking oil and all old silica gel needs to be attended to.
o) Line spacers must be installed at all the lines prone to gale-force winds.
6. KWADUKUZA MUNICIPALITY’S PERFORMANCE ON NERSA
COMMUNICATION
In October 2014, the National Energy Regulator conducted a compliance audit
on KwaDukuza Municipality to determine its level of compliance with its
licence conditions. This audit was followed by a number of emails from the
National Energy Regulator to KwaDukuza Municipality. This communication
was sent directly to KwaDukuza Municipality’s Electricity Manager. In all this
9
communication, KwaDukuza Municipality’s Electricity Manager cooperated
and responded in a satisfactory manner as indicated below.
Table 1: KDM’s response record
NERSA REQUEST DATE OF
REQUEST
LICENSEE
RESPONSE
DATE OF
RESPONSE
Request for
Management comments
on draft report
08/12/2014 Management
comments sent
05/02/2015
Request for Corrective
Action Plan
01/04/2015 CAP sent 19/06/2015
Monitoring notification 19/10/2016 Positive response 28/10/2016
Monitoring exercise 01/12/2016 Positive response 05/12/2016
7. PROGRESS ON THE IMPLEMENTATION OF THE CORRECTIVE ACTION
PLAN
At the time of the monitoring, it was highlighted that all instances of non-
compliance that were noted during the initial audit have been addressed, with
the exception of staff vacancies. However, the Licensee did manage to fill
positions that were considered to be a priority to enable the Department to
deliver on its mandate. It was also mentioned that the Council have approved
a five-year plan, starting from the 2015/16 financial year, to address vacancies
that were highlighted during the October 2014 Electricity Compliance Audit.
These include training of electricians to operate at High Voltage (HV) as the
Licensee’s plans to build a 132kV substation have been approved. All old oil
circuit breakers that were obsolete and dangerous to operate have also been
replaced by new technology vacuum type circuit breakers. High Voltage yard
stones have been filled in at all substations inspected during the audit. Neutral
Earth resistors, weeds, traces of oil on HV circuit breakers and transformers
were all addressed by the Licensee during the monitoring period.
Fire-extinguishing equipment’s service dates were not exceeded during the
monitoring period and all substations had logbooks that were regularly
updated. The single line diagrams for the Licensee’s network were available
and up-to-date, however the Licensee still needed to print these in size A0
before mounting them in all substations. The gantries and ancillaries in all
inspected substations were in good condition. The oil level and winding
10
indicators highlighted that levels were within the acceptable minimum levels.
The silica gel on all inspected transformers also attested to good maintenance
practices.
The Licensee has also installed an additional 20MVA firm capacity to its
network since the audit was conducted. The building of the CBD and Hyde
Range substations have been finalised and commissioned. The upgrades that
were noted in Umkhobongo switching station and Business Park substation
are also an indication that the Licensee’s risk management strategies are in
place. A Master Plan that addresses network developments and customer
growth until the 2021/22 financial year was submitted to the audit team.
The Licensee’s application to amend the electricity distribution licence to
reflect the correct areas of electricity supply is currently being processed by
the Energy Regulator. There is a very good working relationship between the
different departments within the Municipality, particularly between Finance,
Procurement and the Electricity Department. The Accounting Officers
(Municipal Manager, the Executive Director and the Chief Financial Officer)
were also mentioned as they fully support the Electrical Department to ensure
it delivers on its mandate.
The table below depicts the progress made at the time of the monitoring in the
implementation of the CAP that was submitted to NERSA. The numbering on
the table corresponds to the sections as indicated in the Final Electricity Audit
Report that was conducted in October 2014.
11
Table 2: CAP Implementation Progress
Non-
compliances/audit
findings
Corrective
action planned
Financial
implications/Comments
Target date for
starting of
action
Target date for
completion
5.1.1. Departmental Structure (vacancies)
a) 1 X Executive
Director Elect
Services
Post been
Advertised x5 –
No successful
candidates
Section 56 Employee Re-advertised –
Nov 2016
Possible interviews
& appointment
March 2017
b) 1 X Director
Elect Services
Vacant Task Level 19 Budget Constraints n/a
c) 3 X Managers
Elect Services
Advertised and
filled during 2015
Task Level 15 Interviewed Sept
2015
3 X Appointed
October 2015
d) 1 X Manager
PMU
Vacant Task Level 15 Budget Constraints n/a
e) 1 X Manager
PMS
Vacant Task Level 15 Budget Constraints n/a
f) 2 X Engineering
Technicians PMS
Vacant Budget Constraints n/a
g) 1 X Engineering
Senior Eng.
Planning
Vacant Task Level 12 Budget Constraints n/a
h) 1 X Engineering
Technician
Planning
Advertised
November 2016
Task Level 11 Interviews Jan/Feb
2017
Appointment
March 2017
12
Non-
compliances/audit
findings
Corrective
action planned
Financial
implications/Comments
Target date for
starting of
action
Target date for
completion
i) 2 X Technical
Assistance
Operations
Vacant Task Level 11 Budget Constraints n/a
j) 8 x Electricians Advertised
November 2016
Task Level 10 Interviews Jan/Feb
2017
Appointments
Feb/March 2017
k) 1 X Draftsperson
(GIS Technician)
Vacant Task Level 11 Budget Constraints n/a
l) 2 X Senior
Handymen
Advertised during
2016
Task Level 7 Interviews during
2016
Appointments
November 2016
m) 2 X Principal
Clerks Operation
Vacant Task Level 7 Budget Constraints n/a
n) 2 X Workshop
Clerks Operation
Vacant Task Level 7 Budget Constraints n/a
o) 1 X Principal
Clerk Planning
Advertised
November 2016
Task Level 7 Interviews Jan/Feb
2017
Appointment
March 2017
p) 1 X Technical
Data Capturer
Vacant Task Level 7 Budget Constraints n/a
q) 2 X HWLM
System
Controllers
Not on
Organogram
(Asset)
n/a It is an asset n/a
r) 2 X Secretaries
Operation
1 X Advertised –
November 2016
Task Level 9 Interviews Jan/Feb
2017
Appointment
March 2017
13
Non-
compliances/audit
findings
Corrective
action planned
Financial
implications/Comments
Target date for
starting of
action
Target date for
completion
s) 1 X Secretary
Planning
Customer
Service
Vacant Task Level 9 Budget Constraints n/a
t) 17 X Handymen
Electrical
Vacant - Budget Constraints n/a
u) 14 X General
Assistants
Vacant - Budget Constraints
v) 1 X Cleaner
Operations
Vacant - Budget Constraints n/a
w) 1 X Cleaner
Planning
Vacant - Budget Constraints n/a
5.1.4. Area of Supply
The Licensee’s
Schedule One still
makes reference to the
TLCs
KwaDukuza
Municipality
Revised Schedule
One, Application
sent to NERSA –
Nov 2016.
No financial implications on
KDM, application in progress.
Scheduled
meeting with
NERSA – 07&08
December 2016
KwaDukuza
Municipality
Revised ‘Schedule
One’, Application
sent to NERSA for
consideration.
5.5.2 Quality of Supply (QoS)
14
Non-
compliances/audit
findings
Corrective
action planned
Financial
implications/Comments
Target date for
starting of
action
Target date for
completion
The Original Power
Quality Recorders
(PQR) installed have
become obsolete.
KwaDukuza
Municipality
installed new
recorder at (i)
Sappi, (ii)
Lavoipierre Sub
(iii) and awaits
delivery of two
new additional
PQRs
Supply and Installation of PQR (i) R 120,000 (ii) R 90,000 (iii) R 167,991
i) Sappi –
2014/2015
installed.
ii) Lavoipierre –
2015/2016
iii) 2xNew PQR –
Jan 2017
i) Sappi –
2014/2015
installed.
ii) Lavoipierre –
2015/2016
iii) Shakaskraal &
Lavoipierre
Substations -
new PQRs –
Jan 2017
6. Plant Conditions
6.1.1. Lavoipierre 33/11kV Substation
a) Yard stones had
been removed
Upgrading
completed –
stones replaced
during 2015
Tender MN 152 Total Tender amount =
R 2.360Million
2015/16 financial
year
2015/16 financial
year
b) Cable exposed
due to
construction
Upgrading
completed –
cables placed into
Tender MN 152 Total Tender amount =
R 2.360 Million
2015/16 financial
year
2015/16 financial
year
15
Non-
compliances/audit
findings
Corrective
action planned
Financial
implications/Comments
Target date for
starting of
action
Target date for
completion
newly constructed
cable trenches
c) 33kV breaker are
old, but still
fictional
New 33kV
breakers installed
Tender MN 152 Total Tender amount =
R 2.367Million
2015/16 financial
year
2015/16 financial
year
d) Silica-gel of
transformers to
be replaced
Silica-gel replaced
in 2014/15 &
again in 2016/17
financial year
Procurement -Stock Item at
Stores
2014/15 financial
year
Silica-gel replaced
in 2014/15 & again
in 2016/17
e) Single line
diagram not
updated
Drawings updated
by Consultant
n/a 2015/16 financial
year
2015/16 financial
year
f) Expired fire
extinguisher
Supply and
installation of
extinguisher
Replace 21xFire
extinguishers at a cost of
R19,967
2016/17 financial
year
2016/17 financial
year
6.1.2. Industrial 33/11kV Substation
a) Vegetation in the
substation was
not well
maintained
Poisoning &
removal of
vegetation –
ongoing on a
quarterly basis, by
Cost to remove vegetation , per (33/11KV) substation Is R2,032.50, (conducted on a 3 month basis)
2014/15 -
Poisoning &
removal of
vegetation –
ongoing on a
quarterly basis, by
Poisoning &
removal of
vegetation –
ongoing on a
quarterly basis, by
16
Non-
compliances/audit
findings
Corrective
action planned
Financial
implications/Comments
Target date for
starting of
action
Target date for
completion
using a service
provider
using a service
provider.
using a service
provider.
b) Transformer
No.1 had signs of
oil leaks.
Repairs were
done during
2014/15 financial
year by a
specialist/service
provider
2x New installed 10MVA Transformers were still under warrantee
and all the oil leak were
repaired by the supplier at
their cost
Repairs were done
during 2014/15 by
a specialist/service
provider
Repairs were done
during 2014/15, by
a specialist/service
provider
c) Silica-gel was not
well maintained.
Silica-gel was
replaced during
2014/15 & again
in 2016/17
financial year
Procurement -Stock Item at
Stores
Silica-gel was
replaced during
2014/2015
financial year
Silica-gel was
replaced during
2014/15 & again in
2016/17 financial
year
6.1.3 Glenhills 33/11kV Substation
a) Vegetation in
substation yard
was not well
maintained
Poisoning &
removal of
vegetation –
ongoing on a
quarterly basis, by
using a service
provider
Cost to remove vegetation , per (33/11KV) substation Is R2,032.50, (conducted on a 3 month
basis)
2014/15 –
Poisoning &
removal of
vegetation –
ongoing on a
quarterly basis, by
using a service
provider
Poisoning &
removal of
vegetation –
ongoing on a
quarterly basis, by
using a service
provider
17
Non-
compliances/audit
findings
Corrective
action planned
Financial
implications/Comments
Target date for
starting of
action
Target date for
completion
b) Silica-gel was not
well maintained.
Silica-gel was
replaced during
2014/15 & again
in 2016/17
financial year
Procurement -Stock Item at
Stores
Silica-gel was
replaced during
2014/15 financial
year
Silica-gel was
replaced during
2014/15 & again in
2016/17 financial
year
c) Transformer No.
1 had signs of oil
leaks
Service provider
appointed, did
repairs and
maintenance
during 2015/16
10 MVA Transformer was
repaired and serviced by a
specialist/service provider at
a Cost of R 70,860-00
Service provider
appointed, did
repairs and
maintenance
during 2015/16
Work completed
during 2015/16
financial year
d) Current
transformers
(CTs) & boxes
lying on the floor,
not stored in
proper place –
safety hazard.
Service provider
appointed, did
repairs and
maintenance
during 2015/16
Work done during daily
routine maintenance
Service provider
appointed, did
repairs and
maintenance
during 2015/16
Service provider
appointed, did
repairs and
maintenance
during 2015/16
e) Firefighting
equipment (fire
extinguisher) was
not mounted in a
designated area
Fire extinguisher
installed in
designated place
– 2015/16
Replace 21xFire
extinguishers at a cost of
R19,967
Fire extinguisher
installed in
designated place –
2015/16 financial
year
Fire extinguisher
installed in
designated place –
2015/16 financial
year
18
Non-
compliances/audit
findings
Corrective
action planned
Financial
implications/Comments
Target date for
starting of
action
Target date for
completion
6.1.4. Shakaskraal 33/11kV Substation
a) Signs leading to
the HV yard has
faded
Signs replaced –
2015/16 financial
year
Procurement -Stock Item at
Stores
Signs replaced –
2015/16 financial
year
Signs replaced –
2015/16 financial
year
b) Cooling fins –
signs of rust on
both
transformers 1 &
3
No oil leaks on
transformer No.1
and 3 – Priority
was the
replacement of
cooling fins at
Ballito sub and the
upgrading of
cooling fins at
Chaka’s Rock
substation, the
next priority for
2017/18 financial
year, will be
Shakaskraal
cooling fins.
Shakaskraal substation,-No cost has been incurred to remove signs of rust on cooling fins (No oil leaks). The next priority for
2017/2018 financial year will
be Shakaskraal substation,
cooling fins upgrade.
No oil leaks on
transformer No.1
and 3 – Priority
was the
replacement of
cooling fins at
Ballito sub and the
upgrading of
cooling fins at
Chaka’s Rock
substation. The
next priority for
2017/18 financial
year will be
Shakaskraal
cooling fins.
The upgrading of
cooling fins at
Shakaskraal
substation will be
the next priority for
the 2017/18
financial year.
19
Non-
compliances/audit
findings
Corrective
action planned
Financial
implications/Comments
Target date for
starting of
action
Target date for
completion
c) Transformer No.
2, had been
removed from
the Substation at
the time of Audit,
due to repairs
Transformer No. 2
was repaired, re-
installed and
energised during
2015/16
10MVA Transformer was repaired , reinstalled , at the following Cost i)Testing=R45,144 ii)Transport= R237,255 iii)Repairs= R699,907
Transformer No. 2
was repaired,
installed and
energised during
2015/16
Transformer No. 2
was repaired, re-
installed and
energised during
2015/16
d) Silica gel of
Transformer
No.1 shows lack
of maintenance
Silica gel was
replaced during
2014/15 financial
year
Procurement -Stock Item at
Stores
Silica gel was
replaced during
2014/15 financial
year
Silica gel was
replaced during
2014/15 financial
year
e) NER of
Transformer No.
1, was in poor
condition
NER of
Transformer No.1
was upgraded
during 2015/16
financial year
Been upgraded at a cost of =
R 53,000-00
NER of
Transformer No.1
was upgraded
during 2015/16
NER of
Transformer No.1
was upgraded
during 2015/16
f) Installed fire
extinguishers’
service date had
expired
Fire extinguishers
were replaced
during 2015/16
Replace 21xFire
extinguishers at a cost of =
R19,967
Fire extinguishers
were replaced
during 2015/16
Fire extinguishers
were replaced
during 2015/16
6.1.5. Sheffield 33/11kV Substation
20
Non-
compliances/audit
findings
Corrective
action planned
Financial
implications/Comments
Target date for
starting of
action
Target date for
completion
No concerns
raised
n/a n/a n/a n/a
6.2.1. Hydrangea Switching station
a) Switch room was
being refurbished
at time of audit
Completed
2015/16 financial
year
Construction , supply & installation of MV (11KV)equipment =R 3,770,080-07
Completed
2015/16
Completed
2015/16
6.2.2. CBD 11kV Switching station
a) Switch room was
being refurbished
at time of audit
Completed
2015/16 financial
year
Construction , supply & installation of MV (11KV) equipment =R 6,798,226-43
Completed
2015/16
Completed
2015/16
b) Logbook not yet
available
Logbook provided
2015/16
n/a Logbook provided
2015/16
Logbook provided
2015/16
6.2.3. Mini-Substation 500kVA
a) Enclosure was
not placed on a
well-constructed
cement plinth.
Concrete plinth
was covered with
soil
n/a n/a n/a
b) Poor
housekeeping
bottles lying in
Area was cleaned
2015/16
n/a Area was cleaned
2015/16
Area was cleaned
2015/16
21
Non-
compliances/audit
findings
Corrective
action planned
Financial
implications/Comments
Target date for
starting of
action
Target date for
completion
the vicinity of the
mini-sub
c) Labelling was not
well coordinated
Labelling was
corrected during
2015/16
n/a Labelling was
corrected during
2015/16
Labelling was
corrected during
2015/16
6.2.6 T02/461 Pole mounted Transformer(Lindelani)
a) Mango fruit tree
grew below pole-
mounted
transformer – to
be removed.
Tree to be
removed – which
was duly done in
2016
Work done during daily
routine maintenance
Tree was cut
during 2016
Tree was cut
during 2016
6.3. Overhead lines
a) Ageing overhead
lines – Lindelani
township
KDM upgraded all
11kV lines on a
phased-in basis
(to cater for 29
wards) from 2001
to 2016/17
financial years
Upgrading of 0.91Km ( Phase 4)=R 350,000-00
KDM upgrade all
11kV lines on a
phased in basis (to
cater for 29 wards)
from 2000/01 to
2016/17 financial
years
KDM upgrade all
11kV lines on a
phased in basis (to
cater for 29 wards)
from 2000/01 to
2016/17 financial
years
22
Non-
compliances/audit
findings
Corrective
action planned
Financial
implications/Comments
Target date for
starting of
action
Target date for
completion
b) Trees
encroaching on
the overhead
lines
KDM prunes
encroaching trees
at all overhead
lines quarterly, on
an ongoing basis
Work done during daily
routine maintenance
KDM prunes
encroaching trees
at all overhead
lines quarterly, on
an ongoing basis
KDM prunes
encroaching trees
at all overhead
lines quarterly, on
an ongoing basis
c) Two poles were
leaning over on
the 11kV
Compensation
overhead line
KDM is upgrading
the Compensation
11kV overhead
line on a phased-
in basis from
2013/14 to
2016/17. The
leaning poles
were upgraded
during 2015/16
Tender MN 212/2015 Upgrading of 0.93km of 11KV
overhead line =R322,499
KDM is upgrading
the Compensation
11kV overhead
line on a phased-in
basis from 2013/14
to 2016/17. The
leaning poles were
upgraded during
2015/16
The leaning poles
were upgraded
during 2015/16
23
8. PLANT CONDITION DURING AUDIT VS. MONITORING TIME
KwaDukuza Municipality had completed all projects that it had undertaken at
all its major substations and switching stations during the monitoring period.
All old HV oil circuit breakers have been replaced by new technology air
vacuum type circuit breakers. KwaDukuza Municipality had added an
additional 15MVA capacity as old 5MVA transformers had been replaced by
10MVA transformers and a new substation with a firm capacity of 10MVA had
recently been commissioned. The single line diagrams have been updated for
the entire Municipality’s electricity network, however these still need to be
printed on A0 and be placed in all designated places. The fire-extinguishing
equipment was available in all inspected substations and switching stations
and the service dates had not been exceeded at the time the monitoring was
conducted.
The photos below depict the condition of the network equipment during the
audit compared to the condition during the monitoring process.
8.1 Substations
8.1.1. Lovoipierre 11kV Substation
Yard stones removed due to construction. In 2016, yard stones well placed in the HV yard.
Old breaker, emergency lights and surge In 2016, old breaker replaced with new 33kV
arrestors. breaker.
24
Silica gel shows signs of poor maintenance. Silica gel was replaced in 2014/15 financial year
yet showed signs of poor maintenance in 2016.
Plinth for the new proposed main breaker. In 2016, the new 33kV main breaker was placed
on a well-constructed plinth.
Expired fire-fighting equipment. In 2016, the fire-fighting equipment did not exceed
the service date.
25
Old HV switchgear panels with proper labelling. In 2016, the switchgear in same state as during the
audit.
8.1.2. Industrial 33/11kV Substation
Transformers in good condition but silica gel In 2016, the silica gel of the transformers had
not maintained. been replaced.
Signs of poor vegetation maintenance. In 2016, the vegetation was managed and yard-
stones are well placed.
26
8.1.3. Glenhills 33/11kV Substation
Visible signs of oil leak on transformer No.1 In 2016, the transformer had been refurbished and
there were no oil leaks.
Silica gel shows signs of poor maintenance. In 2016, the silica gel had been replaced with new
silica gel.
Firefighting equipment not in place. In 2016, the fire extinguisher was in place with its
service date not exceeded.
27
8.1.4. Shakaskraal 33/11kV Substation
Safety signs to HV yard illegible. In 2016, no changes made since the audit.
Trf No.2 out for service and adequate yard In 2016, Trf No.2 was back in service and in good
stone. condition.
Expired firefighting equipment. In 2016, the fire-fighting equipment did not exceed
its service date.
8.1.5. Priority 1 Substation
This substation comprises 2x10MVA power transformers and has a
firm capacity of 10MVA. It has been recently commissioned and the
audit team was informed that the substation is still under warranty
28
for the next 8 months for unforeseen damages to the equipment and
switchgear. It was noted during the monitoring period that all MV
panels have been colour-coded to ensure clear identification of
incomer, bus-coupler and load panels. The Licensee is commended
for this initiative as it reduces accidental operation of switchgear,
particularly for new electricians.
The pictures below depict the condition:
HV yard comprises 2 x 10MVA transformers. HV Panel colour-coded for clear identification.
8.1.6. Business Park Substation
The substation has been recently refurbished to cater for a load
growth of 8MVA within the supply area of the Licensee. The old oil
circuit breakers have been replaced by new air vacuum type circuit
breakers. The Licensee added new panels in the switch room to
cater for the newly installed transformer.
The pictures below depict the condition:
Refurbished HV yard with an added transformer. HV panel with new vacuum circuit breakers.
29
An added panel to cater the newly installed transformer.
8.2. Indoor Switching Substations, Mini-Substations, Pole-Mounted
Transformers and Overhead Lines
8.2.1. Hydrangea Switching Substation
The 11kV Alstom indoor breakers were also new and in good
condition with all the status indicators operational. The panels were
properly earthed with the cables and feeders properly designated.
The floor inside the switch-room was painted with oil resistant paint
and was skid free. All trench covers were in place and properly
installed. The logbook was also available and updated.
The battery back-up system was in place and operational. The
batteries were in a proper cabinet and well maintained as the
battery solution level was within the specifications of maximum and
minimum levels. The voltage and current indicators on the charger
were operational and the charger was functional. The battery
terminals were clean and no corrosion was observed.
8.2.2. CBD 11kV Switching Substation
The 11kV Alstom indoor breakers were also new and in good
condition with all the status indicators operational. The panels were
properly earthed with the cables and feeders properly designated.
The floor inside the switch-room was painted with oil resistant paint
and was skid free. All trench covers were in place and properly
installed. The logbook was also available and updated.
The battery back-up system was in place and operational. The
batteries were in a proper cabinet and well maintained as the
30
battery solution level was within the specifications of maximum and
minimum levels. The voltage and current indicators on the charger
were operational and the charger was functional. The battery
terminals were clean and no corrosion was observed.
8.2.3. Nkabongo Switching Station
The 11kV Alstom indoor breakers were also new and in good
condition with all the status indicators operational. The panels were
properly earthed with the cables and feeders properly designated.
The floor inside the switch-room was painted with oil resistant paint
and was skid free. All trench covers were in place and properly
installed. The logbook was also available and updated.
The battery back-up system was in place and operational. The
batteries were in a proper cabinet and well maintained as the
battery solution level was within the specifications of maximum and
minimum levels. The voltage and current indicators on the charger
were operational and the charger was functional. The battery
terminals were clean and no corrosion was observed.
8.2.4. 11kV/400V Mini-Substation (Jupiter Drive, Steve Biko Area)
Mini-sub not placed on a proper plinth & In 2016, work on the mini-substation plinth was
switchgear labelling not correctly done still in progress.
31
8.2.5. T02/461 Pole-Mounted Transformer (Lindelani)
Tree growing underneath the transformer. In 2016, the tree had been removed from
underneath the transformer.
8.2.6. Overhead Compensation 11kV line
Compensation overhead line with two poles In 2016, the line had been upgraded and no
leaning more than 5°. leaning poles were noted .
9. CONCLUSIONS
KwaDukuza Municipality made significant progress in addressing the non-
compliances highlighted by the audit. This is confirmed by the filling of some
key vacancies, the completion of the major projects in all substations that were
started during the compliance audit period, the regular updating of the list of
qualified switching personnel and ensuring that fire-extinguishing equipment in
all substations and switching stations is serviced as required. An additional
15MVA firm capacity has also been added through a newly built substation
and a refurbished substation. Plans to build a new Dukuza 132/33/11kV
substation have been approved and the Licensee is the process of appointing
contractors to build this substation. A recently reviewed master plan that caters
for the Licensee’s network and customer growth for the next five years is
currently in place. The Licensee still pays its bulk purchases on time and
32
regularly. The achievements of the Electricity Department under the leadership
of the Municipality were quite significant. The exemplary performance of the
Licensee should be something that all licensees aspire to.
10. RECOMMENDATIONS
It is recommended that KwaDukuza Municipality maintains the current level of
performance to continuously improve its level of compliance with licence
conditions and impose a self-monitoring regime to ensure that it does not
deteriorate back to non-compliance.
11. NEXT STEP
There are still instances of non-compliance that need to be addressed by the
Licensee. As a result, the Energy Regulator expects the Licensee to implement
the corrective action plan until all the instances of non-compliance have been
fully addressed in order to improve the Licensee’s level of compliance. The
National Energy Regulator will continue to monitor the Licensee’s
implementation of the corrective action plan on an ongoing basis to ensure that
all the findings are addressed. Once the remaining projects in the CAP have
been concluded, the Licensee must send a closeout report to the National
Energy Regulator. It is expected that the Licensee will then implement a self-
monitoring regime to ensure that the improved areas do not deteriorate back
to a situation of non-compliance. Further monitoring exercises to be conducted
by the Energy Regulator on the Licensee will be communicated to the Licensee
in due course.
All communication should be forwarded to the Head of Department unless
indicated otherwise by means of a formal letter signed by the head of
department:
The Head of Department
Licensing, Compliance and Dispute Resolution: Electricity
National Energy Regulator
PO Box 40343
Arcadia
0007
Fax: +27 (0)12 401 4700
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