Contents · – 2016/17) and three-year rolling Annual Performance Plan (2012/13-2014/15) is aligned with the National Treasury Framework for Strategic Plans and Annual Performance

NEWS

2 Editor’s NotePower to the grid

3 From the desk of the CEO A good start to the new financial year

INSIDE OUT, Reflecting our outward-bound activities ...

6 LicencingPower to the grid from independant power providers

9 Licencing, tariffs and regulationsMunicipal ‘above guideline’ tariff increases

11 Public HearingsFair process followed to inform licensing decisions

12 LicensingA growing list of private electricity distributors

13 Out and aboutFact finding visit to the UK

15 Skills DevelopmentRowandan regulator visits NERSA

15 Community interactionEngaging with Consumer Communication Forum

16 Capacity BuildingSuccessful customer education workshops in eThekwini

OUTSIDE IN, a glimpse at our internal activities …

18 Capacity BuildingNetworking with industry colleagues

19 Calendar of Events 2012Programme for August to October 2012

Contents

Volume VI, Edition V, 2012Official Newsletter of the National Energy Regulator of South Africa

2 Volume VI, Edition V, 2012

Good news is all around us. Not only did our athletes bring back gold, silver and bronze from the London Olym-pics, South African citizens and the business sector alike stand to benefit when an expected 1415.5 megawatts of power is added to the electricity grid between 2014 and 2015 as a re-sult of the 28 renewable energy power plant generation licence applications issued by NERSA for the first phase of the Renewable Energy Independent Power Producer (RE IPP) Procurement Programme.

In Inside out this time we focus on the approval of those 28 IPP licences, as well as the applications and ap-provals of above-guideline municipal tariff increases. NERSA also added Vleesbaai Dienste Ltd to its list of 12 private electricity distributors, while staff members from the Gas Division

visited Newcastle in the United King-dom on a study tour to look at the integrity management of gas transmis-sion/distribution pipelines. We also hosted a power distribution engineer from the Rwanda Utilities Regulatory Agency (RURA) for a fact finding and information sharing visit at our offices in Pretoria.

Outside in looks at capacity building with customer education workshops in eThekwini and NERSA attendance at a Consumer Communication Forum in Limpopo, while our sport enthusiasts re-port back on an interesting AMEU golf day and IT-Wise continues its “quick-guide” reference series, this time with a focus on using Excel.

The NERSA Calendar of Events can be found in its usual spot on the back page.

We hope that you find the informa-tion in NERSA News of interest and always appreciate your feed-back or suggestions for articles. Con-tact Poppie Mahlangu at Poppie. [email protected] with comments or to contribute to the next issue.After a bitterly cold spell and an ex-citing London Olympics and Paralym-pics, we can look forward to spring and the end of another productive year in the energy sector.

Enjoy.

Charles Hlebela

PS: Visit our website at www.nersa.org.za for updates on our activities, public hearings and calen-dar of events.

Newsletter Contributors:Martin UntiedPeter BuysBilly DibeilaFiona Mbewe

Maria MatlhakuVusimuzi Zwane Thulebona NxumaloMahlanu Nayo

Tshepo RamokokaBrian SechotlhoSello HlobeloNomalungelo Simelane

Editor’s NotePower to the grid- as independent power producers are licensed

Mr Charles Hlebela

The Official Newsletter of the National Energy Regulator of South Africa 3

I recently shared some of the Energy Regulator’s achievements for the first quarter of the current financial year with you, specifically our performance against targets and activities in areas such as strategic planning, audits, the budget for next year and updates on other developments.

As a Schedule 3A Public Entity, NERSA’s five-year Strategic Plan (2012/13 – 2016/17) and three-year rolling Annual Performance Plan (2012/13-2014/15) is aligned with the National Treasury Framework for Strategic Plans and Annual Performance Plans. The three-year Annual Performance Plan contains key performance indicators linked to annual and quarterly targets as approved by the Minister of Energy on 09 March 2012.

Electricity industry regulation

During the first quarter, highlights in the electricity sector included the review and approval of 183 out of 186 (98%) received municipal and private distributor tariff applications, as well as the approv-al of 28 renewable energy generator licences for the first phase of the Renew-able Energy Independent Power Produc-er Programme. NERSA also determined the Free Basic Electricity (FBE) rate for the compensation of Eskom and finalised all complaints received within 120 days.

The Energy Regulator commented on and participated in parliamentary pub-lic hearings on the Independent System and Market Operator Bill; one among a

number of relevant energy laws currently being processed by parliament. We conducted a second capacity building session to align the City of Cape Town’s self-assessment compliance audit with the South African Grid Code.

Piped-gas industry

Achievements in the piped-gas sector during the first quarter included NERSA’s approval of the aggregate results of piped-gas prices for 2011 and revision of the Cost Allocation Manual for Sasol Gas. Highlights of improvements in operational efficiency were evident in calculating the aggregate 2011 gas prices within 35 instead of the targeted 120 days and processing applications for registration within 32 rather than 60 days. Licences granted to Sasol Gas included trading gas in Komatipoort and Secunda and operating a gas distribution facility in Secunda.

Petroleum pipeline industry

In the petroleum pipeline industry, NERSA approved Transnet’s and Engen’s Regulatory Financial Reports and 17% of storage facility tariffs against a target of 7.5%. Further approvals included Engen’s revised Cost Allocation Manual, licences for the construction of Total’s storage facilities at Waltloo, Ohrigstad and Polokwane, as well as a storage facility construction licence at Rand Airport for BPSA. A total of 80%, rather than the targeted 25%, of compliance reports were also analysed within 60 days and the new

all-in-one compliance spread sheet was completed and made available with a positive response from licence-holders.

Cross-cutting regulatory

NERSA participated in 23 customer education sessions (exceeding the tar-get with 15) and paid 85% of credi-tors within 30 days against a target of 80%, while 37% staff had undergone training and development (compared to a target of 10%).

Strategic planning

The aim of NERSA’s recent strategic planning session for 2013/14 was to affirm the relevance of its five-year Strategic Plan (2012/13-2016/17) and validity of its three-year rolling Annual Performance Plan.

Global trends in energy, as well as the priorities, challenges and risks facing NERSA’s industry sectors and the im-plementation of its 2011/12 Business Plan were reviewed. Cross-cutting and organisational priorities and the possi-ble consolidation of all down-stream pe-troleum regulation and NERSA’s impact and state of readiness to achieve stretch-ing goals were assessed, while the third Multi-Year Price Determination (MYPD3) timeframes were also reviewed.

Performance against predetermined objectives

The aim of a process by the Auditor-General to audit the veracity of report-

Ms Phindile Nzimande

From the desk of the CEOA good start to the new financial year- with thanks to all for making it possible


ing on performance against prede-termined objectives is to ensure that information provided is a true reflec-tion of the work done. No opinion has been expressed for the past two years regarding performance informa-

tion. The Auditor-General’s mandate to express an opinion in the 2011/12 audit required evidence of all achieved activities. NERSA received an unquali-fied audit opinion on predetermined objectives.

2011/2012 financial year audit

Despite a number of challenges experi-enced during the 2011/12 audit, such as the resignation of key finance staff (the Chief Financial Officer, Head of


Department and Accounting Manager), NERSA received an unqualified audit re-port from the Auditor-General.

Lastly, we congratulate South Africa’s Olympic and Paralympic teams for their

excellent performance in London. Let us consolidate and build Team NERSA in a spirit reminiscent of these sporting heroes.

Warm regards

Phindile NzimandeCEO


Good news indeed for the 28 success-ful preferred bidders whose renewable energy power plant generation licence applications were issued by the Na-tional Energy Regulator of South Africa (NERSA) for the first phase of the Renew-able Energy Independent Power Pro-ducer (RE IPP) Procurement Programme. Good news too for South African citi-zens and the business sector alike, as an expected 1415.5 megawatts of power will be added to the electricity grid between 2014 and 2015.

NERSA announced the approvals in June this year. The licensing process was completed in April 2012, a month earlier than the target completion

date, after a series of public hearings on the applications in the Western Cape, Eastern Cape, Northern Cape and Limpopo during March 2012. The public hearings supported the Energy Regulator’s commitment to ensure effec-tive stakeholder and public participa-tion in its decision-making processes.

All 28 applications met the required criteria for licensing, which include technical, financial, economic, regula-tory and legal requirements.

The Department of Energy’s RE IPP Bidding Programme targets to procure 3725MW from Independent Power Producers. The 28 IPP projects will

reach financial close later this year; 26 are required to start generating power by mid-2014, while the two concentrated solar power (CSP) plants were given a deadline of June 2015.

The licences issued for the first phase RE IPP Procurement Programme were for solar photovoltaic (PV) (18), on-shore wind facilities (8) and CSP (2). Eskom will be buying the output gen-erated and will sign power purchase agreements with IPPs now that licences have been granted.

Visit this page on the NERSA website for a full list of the 28 RE IPPs: insert link

INSIDE OUT, reflecting our outward-bound activities ...In the front section of our quarterly newsletter we provide readers with an ‘inside, reflecting outwards’ perspective of NERSA’s challenges and achievements, as well as our work-in-hand and the status of our regulatory activities as they affect our stakeholders and the public at large.

LicencingPower to the grid from Independent Power Producers - Potential addition of 1415.5 megawatts to power grid

IPP Public Hearing Western-Cape


IPP Public Hearing Western-Cape

IPP Public Hearing Limpopo


IPP Public Hearing Eastern-Cape

IPP Public Hearing Northern-Cape


Licensing, tariffs and regulationsMunicipal ‘above guideline’ tariff increases- implemented from 1 July 2012

During the first quarter of 2012, NERSA dealt with applications from 20 municipalities for tariff increases above the annual municipal tariff guideline increase. The increases ranged from 0 to 14% above the applicable guideline.

The applicants

Applications were received from various municipal distributors as shown in the table below.

Table 1: List of licensed electricity distributors applying for above-guideline increase for the 2012/13 financial year.

Public hearing

Municipal applicant

Proposed % increase

Municipal motivation for above-guideline increases

29 May 2012 City Power 14.0% Repairs and maintenance.Drakenstein 13.0% Repairs and maintenance.Gamagara 23.8% Provision for capital expenditure projects.Hassequa 11.5% Revenue neutrality.Lesedi 20.0% Increased operational expenditure.Midvaal 23.04% Electricity purchases and increases due to Eskom metering equipment

error.Mthonjaneni 18.0% Infrastructure upgrade.Nkomazi 15.0% Repairs and maintenance.

22 June 2012 Baphalaborwa 21.0% Maintenance of electrical infrastructure.Baviaans 20.0% Revenue losses for 2010/11 and 2011/2012 financial years.Bergrivier 16.5% Cross-subsidise shortages in other departments.Centlec 17.17% High Eskom electricity prices.Ditsobotla 16.0% High seasonal Eskom charges.Emnambithi 11.0% Tariff restructuring (requested presentation at hearing). Inxuba Yet-hemba

13.5% 16% Eskom electricity prices.

22 June 2012 Kgetleng Rivier 12.2% Recovery of revenue losses for 2011/12 financial year.Rustenburg 12.2% Recovery of revenue losses for 2011/12 financial year.Umvoti 18.0% Infrastructure development (meter installation).Mbizana 18.0% Electricity infrastructure maintenance. Gamagara 23.8% Provision for capital expenditure projects.

The decision-making process

During the latter part of May 2012 and the first two weeks of June 2012, NERSA published notices of the public hearings on 21 and 22 June 2012 with a list of the respective municipalities that had applied for above-guideline increases. Members of the public and stakeholders were invited to attend and/or present their views at the public hearings which were held at the NERSA offices in Pretoria.

NERSA’s annual municipal tariff guideline increase helps those distributors to realistically adjust their electricity tariffs. Distributors are, however, permitted to apply to the Energy Regulator for increases above the guideline.


Following the public hearings and decision-making processes, the Energy Regulator determined the levels of tariff increases for the different municipalities before these were implemented on 01 July 2012. Objectors and other intervening parties

Members of the public and stakeholders had to indicate their intention to attend the hearings and present their views by 25 May 2012. Of the eight municipali-ties on the list for the first public hearing on 29 May 2012, Gamagara, Has-sequa and Mthonjaneni did not make representations at the public hearings. Hassequa was subsequently removed from the list as its tariffs were aligned with NERSA’s approved benchmarks, while Gamagara requested to make representations at the public hearing of 22 June 2012.

A total of 14 stakeholders attended the hearing and presented their views. The stakeholder group consisted of 12 municipal distributors and two objec-tors, namely the Utility Management for Africa (UMFA) and Ditsobotla Develop-ment Forum.

Legal parameters

The Energy Regulator grants electricity price increases according to the Elec-tricity Regulation Act, No. 4 of 2006,

and the National Energy Regulator Act, No. 40 of 2004. NERSA also refers to the Public Access to Information Act to determine the confidentiality of the municipal information received before making it available for public consump-tion or responding to stakeholder re-quests for the information.

Decision

Based on the available reasons, facts and evidence, NERSA concluded that the municipalities that were considered had met the requirements for above-guideline tariff increases, but limited the tariff components for some of the municipalities. The applications granted are reflected in Table 2.

Table 2: Above-guideline increases granted to municipal distributors

Applicant Increase grantedCity Power 11.57% with limitationsDrakenstein 13.03% with limitationsLesedi 15% with limitationsMidvaal 17.95% with limitationsMthonjaneni 18% with limitationsNkomazi 15%Baviaans 20%Bergrivier 13.5% with limitationsEmnambithi 11.03%Gamagara 14% with limitationsInxuba Yethemba 13.5% with limitationsMbizana 13.42% with limitationsRustenburg 12.15%Umvoti 18% with limitationsBaphalaborwa 17% with limitationsCentlec (Pty) Ltd (Kopanong, Naledi and Mohokare)

13% with limitations

Ditsobotla 15% with limitationsKgetleng Rivier 13% with limitations

The abovementioned increases were granted to municipalities subject to the following conditions:

• theapprovedfundsmustbering-fencedtoensurestrictutilisationforidentifiedprojects;• municipalitiesmustreporttoNERSAeverysixmonthsonhowtheadditionalfundsarebeingused;and• fundsnotusedforthepurposeforwhichtheywereapprovedwillbeclawedbackinthefollowingfinancialyear.


Public HearingsFair process followed to inform licensing decisions- applications and approvals

NERSA follows fair process in considering license applications, tariff increases and revising regulatory rules within the energy industry. Decisions are guided by the Promotion of Administrative Justice Act, 3 of 2000 and the National Energy Regulator Act, 40 of 2004. Public hearings are held to give interested and affected parties the opportunity to present their views and evidence before decisions are taken.

During the first quarter of 2012, NERSA dealt with the following applications:

Table 1: Applications, revocations and outcomes for storage facilities

Applicant/ Licensee

Application/ facility description

Outcome and/or way for-ward

April 2012 Cape Town Bulk Stor-age (Pty) Ltd

Revocation of a licence to operate a petroleum storage facility in Cape Town harbour.

A public hearing was held on 5 April 2012 to consider this application. On 7 May 2012, the Energy Regulator granted the revocation. The storage facility will now be converted to chemi-cal storage service.

Transnet Ltd Amendment of the licence conditions to operate its petroleum pipelines system running from Durban to Johannesburg with extensions forming the northern network.

A public hearing was held on 5 April 2012 to consider the second amendment of the licence. The Energy Regulator will decide on the matter during the second quarter of the 2012/13 financial year.

May 2012

BP Southern Africa (Pty) Ltd

Operation of the storage facility at Rand Airport in Germiston upon com-pletion of the licensed construction.

On 7 May 2012, the Energy Regulator granted the applicant the licence to operate the facility. The construction was completed and the facility commissioned during July 2012.

Total South Africa (Pty) Ltd

Construction of additional storage tanks at its Waltloo, Orighstad and Polok-wane petroleum storage facilities

On 28 May 2012, the Energy Regulator granted the applicant the three construction licences. The construction activities are near-ing completion and consequently, Total also submitted applications to amend the operation licences issued previously to include the new assets. The amendments will be considered by the Energy Regulator during the second quarter of the 2012/13 financial year.

June 2012

Total South Africa (Pty) Ltd

Amendment of the licence conditions to operate its Waltloo, Orighstad and Polokwane petroleum storage facilities.

The construction activities in terms of the construction licences are nearing completion, which is why Total applied for the amendments. On 7 June 2012, the Energy Regulator held a public hearing to consider the applications and a decision will be taken in the next quarter of 2012/13 financial year.

Strategic Fuel Fund As-sociation

Amendment of the licence conditions to operate its Milnerton storage facility in Cape Town.

On 7 June 2012, the Energy Regulator held a public hearing to consider the application to in-clude refurbishing existing tanks in the licensed capacity. The Energy Regulator will decide on the applications in the next quarter of 2012/13 financial year.


Gas licence and compliance applications and requests for Confidential Treatment of Information outcomes are reflected in Table 2.

Table 2 Piped-Gas regulation

Applicant/ Licensee

Application/ facility description

Outcome and/or way for-ward

March 2012

Novo Energy (Pty) Ltd Applications to operate gas storage fa-cilities in the Kempton Park and Germis-ton areas located within the Ekurhuleni Metropolitan Municipality.

Approved on 2 July 2012 .

Sasol Gas Ltd An application for the operation of a gas transmission facility in the Secunda area within the Govan Mbeki Local Municipality.

A public hearing was held on 5 April 2012 to consider an application by Sasol Gas Ltd to operate a gas transmission facility in the Secunda area within the Govan Mbeki Local Municipality. The Energy Regulator approved the transmission operation licence on 12 April 2012.

April 2012

Sasol Gas Ltd Licence application for a gas trading licence in the Secunda area within the Govan Mbeki Local Municipality.

The Energy Regulator held a public hearing on 5 April to consider an application by Sasol Gas Ltd for a gas trading licence over a transmission area in the Secunda area within the Govan Mbeki Local Municipality. The gas trading licence was approved by the Energy Regulator on 12 April 2012.

Licence application for a gas trading licence in the Komatipoort area within the Nkomazi Local Municipality.

The Energy Regulator held a public hearing on 5 April 2012 to consider an application by Sasol Gas Ltd for a gas trading licence over a transmission facility in the Komatipoort area within the Nkomazi Local Municipality. The gas trading licence was approved by the Energy Regulator on 12 April 2012.

May 2012 PetroSA Application to register a gas produc-tion operation at F-O Gas Field Devel-opment Offshore Mossel Bay.

The application was approved on 28 May 2012.

June 2012 Sasol Gas Ltd Request for Confidential Treatment of Information in its applications for a licence to construct a gas distribution facility in Isando and Kempton Park.

Approved on 18 June 2012: Round Robin Res-olution for Confidential Treatment of Information of the application to construct a gas distribution facility in Isando.

LicensingA growing list of private electricity distributors- new licensee on board

Earlier this year, NERSA issued an electricity distribution licence to Vlees-baai Dienste (Pty) Ltd (‘VDL’), making the company the latest to join NERSA’s growing list of private distributors. Cur-rently, 12 private distributors excluding Vleesbaai are licensed with NERSA, with no applications due for assess-ment.

The Energy Regulator’s decision to grant the licence was based on the facts and evidence submitted together with VDL’s ap-plication to distribute electricity within the Vleesbaai area, a private holiday resort near Mossel Bay in the Western Cape.

While geographically Vleesbaai falls within the Mossel Bay municipal de-

marcation, both the municipality and Eskom confirmed that the area which the VDL supplies with electricity does not impinge on their areas of supply.The resort is managed by six private shareholders, comprising three compa-nies and three single title Home Owner Associations, which collectively own all of VDL shares. Each shareholder


Vleesbaai

A privately owned coastal resort, Vleesbaai nestles in the first big bay ± 35 km west of Mossel Bay along South Africa’s southern coastline.

The resort consists of about 500 erven, of which more than 350 have been developed.

represents a section of the resort.

Historically, VDL has supplied electricity within the resort with a permit issued by the former Electricity Supply Commis-sion and Department of Minerals and Energy since 1983. Under the Electric-ity Act, No. 41 of 1987, the permit was regarded as a licence. During the past

almost 30 years, VDL has built, oper-ated and maintained its own internal electricity infrastructure to supply the 500 erven in the resort. Other services provided by VDL include water supply, sewerage and garbage removal, roads infrastructure and security.

Generally, under the Electricity Regula-

tion Act, No. 4 of 2006, the type of ap-plication submitted by VDL is classified as the trading or reselling of electricity, which as yet is not licensed or registered by NERSA. VDL’s proof of permission to distribute electricity, however, warranted attention to and the favourable consid-eration of its application to become a private distributor.

Out and aboutFact finding visit to the UK-for a closer look at the integrity management of gas transmission/distribution pipelines

Representatives from NERSA’s Gas Di-vision – Vusi Zwane and Letsatsi Me-lato – recently returned from the United Kingdom where they had visited the

Newcastle-based General Electric PII Pipeline Solutions, Oil and Gas (‘GE PII Pipeline Solutions’) and two other companies in the pipeline integrity

management field.The objectives for the visit were to independently audit the results of tests conducted by Sasol Gas Ltd, ROMPCO


and Transnet Pipelines on the gas transmission pipelines infrastructure over the past two years, as well as to assess the alignment of pipeline maintenance and operating procedures with NERSA standards and compliance by pipeline operators with NERSA’s technical conditions for licences.

The week-long sojourn in the UK was facilitated by Petroleum Pipeline Tech-nologies (PPT) as part of the skills trans-fer component of their consulting servic-

Limited’s decision to start the New Multi-Product Pipeline (NMPP) project.

PENSPEN

PENSPEN is an independent group of companies that provide the oil and gas industry with technical studies and engineering, project management, operations, maintenance and consul-tancy services related to the integrity, risk assessment and risk management

es contract with the Energy Regulator to conduct and integrity study on South Africa’s gas infrastructure. The project is a deliverable in NERSA’s 2011/12 Busi-ness Plan. Aubrey Nxumalo from PPT accompanied the NERSA team.

Due to the nature and scarcity of this field of study, only a few companies have real expertise in the use of pipe-line integrity management technology. After their visit to GE PII Pipeline Solu-tions, the NERSA team spent time at

of onshore and offshore pipelines. The company has trained more than 4 000 engineers from across the globe through the Newcastle University in pipeline in-tegrity management and defect assess-ment; onshore pipeline engineering; risk and integrity management of pipe-lines; practical pigging training; corro-sion engineering and pipeline legisla-tion awareness. PENSPEN has worked with pipeline operators in South Africa, such as Sasol Gas.

PENSPEN and GL Noble Denton, also specialists in the field.GE PII Pipeline Solutions

The company was formed when state-owned British Gas was privatised. It spe-cialises in in-line-inspection (ILI) technol-ogy used to evaluate the integrity of the internal and external structure fluid steel pipelines (total pipeline integrity). The company has been involved in some of the South African pipeline projects and its inspection report influenced Transnet

GL Noble Denton

As a global engineering company, GL Noble Denton (‘GL’) provides engineer-ing services and software solutions that enhance safety and performance in the energy sectors. Over 100 or-ganisations in more than 30 countries worldwide use GL software solutions to manage their gas pipelines. The company specialises in off-line hydrau-lic engineering, analysing and optimis-

Pipeline integrity – specialised services

PII Pipeline Solutions is a joint venture between GE Oil & Gas and Al Shaheen, and has combined advanced inspection technologies, integrity engineering expertise and software products with sound field experience to assess the current and future condition of pipelines


ing new and existing pipeline systems, providing time simulation and on-line applications and systems that sup-port pipeline operations, such as gas quality tracking, leak detection, gas demand forecasting and other man-agement programmes. GL has been involved in the cathodic maintenance management on the Komatipoort pipe-line section for Sasol Gas.

Lessons learnt

“Our interaction with the UK specialists significantly increased our knowledge and understanding of pipeline integrity management technology and its posi-tive impact on using pipelines efficient-ly utilisation and safety in regulation, especially in the high consequence areas (HCA),” says Vusi Zwane.

The group was exposed to a high reso-lution Magnetic Flux Leakage (MFL) in-spection tool that accurately assesses the pipeline around bends and along welds and irregular pipe wall, as well as records data for small defects at an inspection speed of up to 5 m/s and assesses longitudinal weld status.

Skills developmentRwandan regulator visits NERSA- sharing knowledge and experience

More about RURA

Rwanda Utilities Regulatory Agency (RURA) was created by law in September 2001 and gazetted in October 2001 with the mission to regulate certain public Utilities, namely telecommunications network and/or services; electricity; water; removal of waste products from residential or business premises; extraction and distribution of gas; transport of goods and persons.

The regulatory agency is defined by law as a national institution with legal powers and autonomous administrative and financial management.

Earlier this year, the Rwanda Utilities Regulatory Agency (RURA) approached NERSA to arrange a study tour to South Af-rica’s Energy Regulator in Pretoria to share knowledge and experience about energy regulation within the two countries.

Major Francois Régis Gatarayiha contacted the Department of International Relations and Cooperation (DIRCO) and the Rwanda High Commission in South Africa as the initial facilitators of the process.

RURA expressed specific interest in areas such as grid code implementation and enforcement, power network monitoring, regulating electricity service quality and sharing information about regulating electrical contractors for electricity installation and wiremen licensing.

The purpose of the study tour was to benchmark best practice in the indicated areas and to share experience and lessons learnt by both parties in their respective areas of expertise.

A RURA representative, Mr Jackson Ntambara, visited NERSA from 23 to 25 May 2012. A Power Distribution Engineer, Mr Ntambara met with colleagues from the Electricity Regulation Division and the Corporate Services Division and expressed appreciation for the opportunity to visit NERSA and learn from its experiences in energy regulation.

Ms Fiona Mbewe, Head of NERSA’s Department: International Coordination and Partnerships (ICP) confirmed that ICP’s objectives included building relations with other regulators and facilitating information sharing visits for capacity building purposes. She welcomed Mr Ntambara’s was as it allowed NERSA to gain more knowledge about the practices of other regulators on the African continent.


NERSA’s Customer Education represent-atives were invited to attend the Cus-tomer Communication Forum at Eskom’s Technical Depot in Siloam in Nzhelele, in the Vhembe district, Limpopo.

Forum Chairperson, Mr T P Godzwa-na, welcomed the visitors to the meet-ing, which was attended by over 50 fo-rum members, Eskom officials, NERSA representatives and local Chiefs, who included HosiMakongoza P from Ha-Makongoza village; HosiMugobi M S from Ha-Mugobi village and HosiMam-buru M T from Ha-Mamburu village.

Irrespective of a number of challenges discussed during the meeting, the fo-rum is growing strongly and executes its functions with dedication and pas-sion. The active participation by local Chiefs gives the forum stature and cred-ibility, while the forum itself provides

a platform for community members to raise concerns and address issues.

The Nzhelele Consumer Communica-tion Form has assisted the establishment of other forums in the district, such as those in Vuwani, Waterfall and All-days. Areas still in need of consumer forums include Mesina, Thulamela and Mutale.

Mr Godzwana indicated that the main challenge for the Nzhelele Consumer Communication Forum members was one of funding, as members sponsored forum activities themselves with some support from Eskom. “We use our fam-ily money to attend forum activities. Eskom does not provide us with trans-port. They only give us food. We need to be transported to these forum meet-ings,” he said.

Other challenges included the need to improve communication between the forum leadership and Eskom about activities planned for their village. Es-kom undertook to ensure that the forum was kept informed about its activities in their village, while NERSA’s repre-sentatives explained that the funding of Consumer Communication Forums was receiving attention and an announce-ment in this regard was imminent.

According to NERSA’s Billy Debeila after the meeting, “NERSA is very ex-cited about the proactive nature and dedication from both the Nzhelele Customer Communication Forum and the local Eskom office to address con-cerns and work together to resolve is-sues. Despite the challenges that they encounter, the forum continues to grow from strength to strength.”

Consumer communication forums in villages help Eskom in its drive to educate the public about the many aspects of electricity and alert residents to low-hanging power cables and the importance of reporting illegal connections.

Capacity buildingSuccessful customer education workshops in eThekwini - facilitating mutually beneficial municipal/community interaction

Mutual benefit was derived by the eThekwini Municipality and its custom-ers recently during a series of highly successful workshops in five municipal areas. The workshops were organised by NERSA’s Customer Education Unit in partnership with the KwaZulu-Natal Department of Economic Development and Tourism and Independent Com-

munications Authority of South Africa (ICASA).

The eThekwini Electricity Division was invited to participate in these work-shops and be available to resolve issues that their customers might raise during the workshops facilitated by NERSA’s Customer Education Unit

representative, Billy Debeila, in five venues over five days. Vuyelwa Poswa from NERSA’s Complaint Resolution Team recorded, and at times helped to resolve customer complaints. The workshops took place daily from 25 to 29 June 2012 at the Ntuzuma Commu-nity Hall, H section; KwaMashu ZCC Church, C section; Inanda, Amatikwe

NetworkingEngaging with consumers… educating the public about electricity


Customer education workshops at eThekwini

Community Hall; Umlazi Community Hall, V section; and the Ilovo Commu-nity Hall, B section.

More than 1 000 people attended the workshops, including community councillors who made a number of meaningful contributions. Municipal customers requested the municipality to continue its engagement with the community on electricity issues after NERSA had left.

NERSA’s presentations provided work-shop participants with information about the Energy Regulator, electric-ity and energy regulation, complaints resolution processes, Inclining Block Tariffs (IBTs) and public participa-tion processes. In turn, the eThekwini electricity department focused on mu-

nicipal electricity processes, by-laws, energy efficiency and complaint reso-lution procedures.

ICASA, the Inanda community radio station, with a listenership of over 350 000, invited NERSA to participate in two live broadcast interviews, each lasting over an hour and generating significant interest from community members who called in with comments, complaints and opinions.

Concerns raised by municipal custom-ers included electricity resellers charg-ing more than the NERSA-approved tariffs; lack of notification for planned electricity switch-off periods; need for a more affordable hybrid-prepaid/conventional monthly billing system and the low level of free basic elec-

tricity offered to indigents (65 kWh to households using less than 150 kWh per month). Community representatives also expressed a strong preference for Eskom as their electricity provider rather than the municipality.

The municipality addressed issues about the actions of electricity custom-ers and the community overall, includ-ing the theft of electricity and illegal connections which caused most of the electricity outages and resulted in a loss in revenue, as well as the low levels of energy efficiency awareness within communities. The eThekwini municipali-ty confirmed that despite not yet having implemented IBTs, domestic customers have been shielded from rising electric-ity prices by low domestic tariffs.


OUTSIDE IN, a glimpse at our internal activities …The second section of our quarterly newsletter provides readers with an ‘outside in’ perspective of NERSA’s people and their activities during the previous quarter and how NERSA’s values and goals drive its vision of being a world-class energy regulator.

Capacity BuildingNetworking with industry colleagues- energy players at play

A beautiful autumn day earlier this year on 17 May saw an enthusiastic group of golfers arrive at the Rood-epoort Country Club to participate in the annual AMEU Affiliates Golf Day.

Hosted by the Association of Munici-pal Electrical Undertakings (AMEU), the event again provided an oppor-tunity for the energy industry’s regula-tor, power distributors and suppliers to participate in an event that unfailingly delivers great golf and many network-ing opportunities.

The 27 four-ball teams included players from City Power, Eskom and NERSA, as well as those from AMEU affiliate member companies, the suppliers of equipment and services to the electricity distribution industry in Southern Africa.

As always, sponsorships from suppli-ers and others added lustre to the day. These included Zest, Aberdare Cables, Elster Kent, Actom, Lighting Structures, Sectional Poles, Idube Electrical and Mertz & McLellan. Sponsor Sectional Poles provided some excitement when players were encouraged to tee off with trick shots at their sponsored hole. A challenge that was readily taken up by one and all!

The NERSA players Brian Sechotlho, Sello Hlobelo and Adrian Cogills con-firmed the success of the event and are

already looking forward to the next event in 2013 – after all, they have an entire year to practice those trick shots!

From left: Mr. Adrian Cogills, Mr. Sello Hlobelo, and Mr. Brian Sechotlho.


Meeting dates and times are subject to change. Visit our website at www.nersa.org.za for the latest updates and to verify the information below.

Meeting Date and time Meeting purposeAugust 2012

Public Hearing Thu, 2 Aug 201209h00 – 16h30

Regulator Executive Committee Mon, 6 Aug 201209h00 – 11h00

• Reports/Governance/Delegated matters

Electricity Subcommittee Wed, 8 Aug 201209h00 – 12h00

• Reports/Delegated matters

Petroleum Pipelines Subcom-mittee

Wed, 15 Aug 201209h00 – 11h00


Piped-Gas Subcommittee Thu, 9 Aug 201209h00 – 12h00


Public Hearing Thu, 16 Aug 2012


• Reports/Governance/Delegated matters• Draft Annual Performance Plan

(2013/14 – 2015/16)

Extended Finance Subcommit-tee

Thu, 23 Aug 2012 • NERSA budget for 2013/14

Human Resource Subcommittee Thu, 23 Aug 2012 • Reports

Energy Regulator Thu, 30 Aug 201209h00 – 13h00

• Draft Annual Performance Plan (2013/14 – 2015/16)

• NERSA budget for 2013/14• Subcommittee reports

Public Hearing Thu, 2 Aug 201209h00 – 16h30



Electricity Subcommittee Wed, 08 Aug 201209h00 – 12h00


September 2012

Regulator Executive Committee Mon, 3 Sep 201209h00 – 11h00


Piped-Gas Subcommittee Wed, 5 Sep 201209h00 – 12h00


Public Hearing Thu, 6 Sep 201209h00 – 16h30

Electricity Subcommittee Wed, 12 Sep 201209h00 – 12h00

• Reports/Delegatedmatters

Public Hearing Thu, 13 Sep 201209h00 – 16h30


• Reports/Governance/Delegatedmatters


Tue, 18 Sep 201209h00 – 11h00


Calendar of Events 2012Programme for August to October 2012


Meeting Date and time Meeting purposeEnergy Regulator Thu, 27 Sep 2012

09h00 – 13h00• Licensingmatters



Piped-Gas Subcommittee Wed, 5 Sep 201209h00 – 12h00


Public Hearing Thu, 6 Sept 201209h00 – 16h30

October 2012

Regulator Executive Committee Mon, 1 Oct 201209h00 – 11h00


Public Hearing Thu, 4 Oct 201209h00 – 16h30

Piped-Gas Subcommittee Fri, 5 Oct 201209h00 – 12h00


Electricity Subcommittee Wed, 10 Oct 201209h00 – 12h00


Public Hearing Thu, 11 Oct 2012


Fri, 12 Oct 201209h00 – 12h00


Regulator Executive Committee Mon, 15 Oct 201209h00 – 11h00

• 2ndQuarterPerformanceReport• Mid-termReviewReport• Reports/Governance/Delegatedmatters

Human Resource Subcommittee Tue, 16 Oct 2012 09h00 – 12h00

• Reports

Electricity Subcommittee Wed, 17 Oct 201209h00 – 12h00

• MYPD

Finance Subcommittee Thu, 18 Oct 201209h00 – 10h30

• 2ndQuarterManagementAccounts• OtherReports

Audit and Risk Subcommittee Thu, 18 Oct 201211h00 – 13h00

• 2ndQuarterManagementAccounts• 2ndQuarterPerformanceReport• OtherReports

Energy Regulator Thu, 25 Oct 201209h00 – 13h00

• 2ndQuarterManagementAccounts• 2ndQuarterPerformanceReport• Mid-termReviewReport• SubcommitteeReports

This Publication is produced by NERSA Corporate Services and may not be reproduced

without the written consent of the NERSA.

Phone: 012 401 4600Fax : 012 401 4700Physical Address: Kulawula House 526 Vermeulen Street Arcadia PretoriaPostal Address: P O Box 40343 Arcadia 0007 South Africa

Publisher: Corporate ServicesEditor: Charles HlebelaSub-Editor/Writer: Poppie MahlanguDesign, Layout and Printing: Blackmoon Advertising

ISSN: 222 - 898XKey tittle: NERSA News Abbreviated key tittle: NERSA News

Documents

Contents · – 2016/17) and three-year rolling Annual Performance Plan (2012/13-2014/15) is aligned with the National Treasury Framework for Strategic Plans and Annual Performance