CUSTOMER FORUM

PROPOSED NEW ELECTRICITY TARIFFS FOR

JULY 2011

Chief Engineer: Metering, Vending and Tariffs

Stephen Delport

4 MARCH 2011

IMPORTANT NOTES ON THIS PRESENTATION

• The format of the tariffs was very recently

changed, following ongoing discussions with

the National Energy Regulator of South Africa

• The set of tariffs under discussion here has

not yet been considered by Councilnot yet been considered by Council

• It is also not “given” that NERSA will approve

the current format

IMPORTANT NOTE

• Council must still consider this draft of tariffs…

THE FORMAT OF THIS PRESENTATION

• The presentation is built around graphical

information, providing a technical picture

BACKGROUND

BACKGROUND

BACKGROUND

METER READING PATH - FULL

BRIEF INDICATION ON REVENUE SEGMENT –

PREPAYMENT• The 3RD biggest segment of customer, at 180 000 customers, 7% of income

• The segment is under control, but much work is taking place to improve:

• Third party vending has been strengthened.

• Point of sale, cellular technology, internet vending, etc

• Tampering rate is managed

• Penalty rate applied and often paid by customer

• Tembisa and IMS doing well, although the system is getting old

• Protective structure volumes have grown and indicate need for closer

management – measures are being put in placemanagement – measures are being put in place

• Exciting new technologies to consider

REVENUE SEGMENT – PREPAYMENT EAST

R 100 000 000

R 150 000 000

R 200 000 000

R 250 000 000

R 300 000 000

2007-2008-2009-2010 MEGAFLEX: PURCHASES OF ELECTRICITY kWh COSTS

R0-00: PEAK vs STANDARD vs OFF-PEAK and kVA

R0-00 Peak kWh

R0-00 Stnd kWh

R0-00 Off-Peak kWh

R0-00 kVA

2 per. Mov. Avg. (R0-

00 Peak kWh)

2 per. Mov. Avg. (R0-

00 kVA)

R -

R 50 000 000

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J

0%

10%

20%

30%

40%

50%

60%

City of Ekurhuleni Percentage Increase in R/kVA and c/kWh:

Purchases of Electricity : Jan 2007 till Jan 2011% Increase kVA

% Increase kWh

-30%

-20%

-10%

0%

•

20.0%

30.0%

40.0%

50.0%

Percentage Increases in c/kWh only: July 2006 to Jan 2011

% Increase kWh

% Eff Increase

2 per. Mov. Avg. (% Increase kWh)

2 per. Mov. Avg. (% Eff Increase)

-10.0%

0.0%

10.0%

Jul/

05

Oct

/05

Jan

/06

Ap

r/0

6

Jul/

06

Oct

/06

Jan

/07

Ap

r/0

7

Jul/

07

Oct

/07

Jan

/08

Ap

r/0

8

Jul/

08

Oct

/08

Jan

/09

Ap

r/0

9

Jul/

09

Oct

/09

Jan

/10

Ap

r/1

0

Jul/

10

Oct

/10

Jan

/11

Energy Demand Reduction of 12% by 2015 for SA: via

energy efficiency improvements

Total kWh Purchased

10 000 000 000

10 500 000 000

11 000 000 000

11 500 000 000

Series1

Moving Ave

9 000 000 000

9 500 000 000

Jan - Dec

2003

Jan - Dec

2004

Jan - Dec

2005

Jan - Dec

2006

Jan - Dec

2007

Jan - Dec

2008

Jan - Dec

2009

Jan - Dec

2010

Tariff D Base line Tariff 2011/12 2011/12 2011/12 2011/12

Increase > 11kV >230/400 V & < = 11kV 230/400 V direct from sub

Tariff D-"0%" 2010/11 21.30% 0% 8% 10%

PEAK c/kWh 176.700 214.34 214.34 231.48 235.77

STANDARD c/kWh 62.00 75.21 75.21 81.22 82.73

OFF-PEAK c/kWh 37.40 45.37 45.37 49.00 49.90

PEAK c/kWh 65.70 79.69 79.69 86.07 87.66

STANDARD c/kWh 43.10 52.28 52.28 56.46 57.51

OFF-PEAK c/kWh 34.00 41.24 41.24 44.54 45.37

Jun & Jul & Aug NMD R/kVA R 29.00 35.18 35.18 37.99 38.69

Sep-May NMD R/kVA R 29.00 35.18 35.18 37.99 38.69

NAC R/kVA R 17.40 21.10 21.10 22.79 23.21

R 1.50

R 2.00

R 2.50

R 3.00

R 3.50

R 4.00

c/k

Wh

1000 kVA: Electricity Tariffs: 2011-12: c/kWh v/s Load Factor

EMM 2011/12 TAR C

EMM 2011/12 TOU TAR E

<1MVA

TOU > 1MVA TAR D 2011-12

R -

R 0.50

R 1.00

5.0

%

10

.0%

15

.0%

20

.0%

25

.0%

30

.0%

35

.0%

40

.0%

45

.0%

50

.0%

52

.0%

55

.0%

58

.0%

60

.0%

62

.0%

65

.0%

68

.0%

70

.0%

72

.0%

75

.0%

78

.0%

80

.0%

85

.0%

90

.0%

95

.0%

98

.0%

10

0.…

R 1.50

R 2.00

R 2.50

R 3.00

R 3.50

R 4.00

R 4.50

c/k

Wh

100 kVA: Electricity Tariffs: 2011-12: c/kWh v/s Load Factor

EMM 2011/12 TAR C

EMM 2011/12 TOU TAR E

<1MVA

ESKOM NEW 2011-12

R -

R 0.50

R 1.00

5.0

%

10

.0%

15

.0%

20

.0%

25

.0%

30

.0%

35

.0%

40

.0%

45

.0%

50

.0%

52

.0%

55

.0%

58

.0%

60

.0%

62

.0%

65

.0%

68

.0%

70

.0%

72

.0%

75

.0%

78

.0%

80

.0%

85

.0%

90

.0%

95

.0%

98

.0%

10

0.…

IMPORTANT NOTE

• Demand no longer measured in off-peak. NAC…

R 15 000

R 20 000

R 25 000

R 30 000

Tar B Business: Account impact: 3-ph versus 1-ph and various

Load Factors

Series1

Series2

Series3

Series4

Series5

L.F. 30% 40A up to 150 A 1-ph

R 0

R 5 000

R 10 000

40 50 60 70 80 90 100 110 120 130 140 150

L.F. 30% 40A up to 150 A 1-ph

L.F 20% 40A up to 150A 3-ph

L.F. 30% 40A up to 150A 1-ph

L.F. 40% 40A up to 150A 3-ph

IMPORTANT NOTE

• On Tariff B, the capacity should not be

overstated…

ESKOM PURCHASES: DEMAND COMPONENT

• Transmission NC + NAC + NMD

=(3.51+7.04+13.35)*1.2671

• R30.284 (2011/12 Eskom R/kVA/month) X• R30.284 (2011/12 Eskom R/kVA/month) X

103.92 kVA

• =R 3,147.17 (Eskom R/kVA/month)

R 0.95

R 1.00

R 1.05

R 1.10

Tar B Busines versus Tar B Res c/kWh at various L.F.

Tar B Res

Tar B Bus

40 Amp Bus

R 0.80

R 0.85

R 0.90

0.1 0.1 0.2 0.2 0.3 30% 0.4 0.4 0.5 0.5 0.6 0.6 0.7 0.7 0.8 0.8 0.9 0.9

R 1 500.00

R 2 000.00

R 2 500.00

R 3 000.00

TARIFF A vs TARIFF B : 2011/2012

690

R 0.00

R 500.00

R 1 000.00

Number of kWh units

New IBT A

(Un)sustainable Increases:-

2010/11 Increase Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Sales 1.55 X 1.2 1.86 2.23 2.68 3.21 3.86 4.63 5.55 6.66

Purchases 1.00 X 1.2671 1.27 1.61 2.03 2.58 3.27 4.14 5.24 6.64 Purchases 1.00 X 1.2671 1.27 1.61 2.03 2.58 3.27 4.14 5.24 6.64

1.55 Ratio 1.47 1.39 1.32 1.25 1.18 1.12 1.06 1.00

I Thank You

Any Questions? Any Questions?