Lesego Lebuso: Divisional Manager - New Services Development (NSDD)

JW & PROJECT OVERVIEW

Nico Singh: Prepayment Manager - NSDD

TOTAL PREPAYMENT METERING

 

Operation Gcin’amanzi (OGA) – Overview of the Technical, Social & Sustainability aspects of OGA

                                                               

BECAUSE EVERY DROP MATTERS

VISION AND MISSION OF JW

Vision: To become the leading water utility in South Africa.

Mission: To provide all the residents of Joburg with access to

quality water and sanitation, JW will: Deliver a sustainable, affordable and cost effective

service, Upgrade services in Low Income Areas Create a Customer-focused culture, Build capacity through the development of our

employees, Improve protection of the environment.

CUSTOMERS PROFILE

Socio -

Economic Profile

Population Service Payment

High/medium

Income±1 Million

Full service / metered

OK

Low income ±1 MillionFull service / not metered

LOW

Informal settlements

±1 MillionBasic or below

basicFree services

JW CHALLENGES

Provide affordable, cost effective and sustainable services to low income, new areas and informal settlements.

Decrease high UFW (>70%) in low income areas resulting from deemed consumption billing system and poor infrastructure (Operation Gcin’amanzi).

PROBLEM STATEMENT

Problems are complex and multi-dimensional

These dimensions are interrelated and interdependent

Only a holistic, integrated approach that simultaneously and proactively addresses all dimensions to the problem will result in success and long term sustainability of the services of water and sewerage in Soweto

BACKGROUND Bulk purchases indicate an average formal erven in Soweto

supplied is 61Kl per month

Survey results point to defective plumbing, leaking secondary mains and ill use by residents

Current billing of 20Kl levied as deemed consumption

Average consumption for non-purchasing ervens ± 4 Kl

Average consumption for purchasing ervens ± 11.5 Kl

Fixing the problems will benefit customers and service provider

BROAD STRATEGY AND APPROACH

Soweto the area of highest priority as result of greatest water supply and UFW problem

Once-off intervention project involving a variety of intervention measures

Implementation period planned for 4 years

Phased project with a Prototype Phase mainly to test methodology defined in planning phase

Selected prototype area where greatest impact can be achieved

As critical component of this project, a free-payment metering programme is included

PAST EXPERIENCE In Mogale City > 20 000 meters operated

successfully despite older generation meters installed

Pilot project – Stretford Ext 4, Orange Farm Experience: JW has successfully commissioned 1389 meters

over a period of 22 months Few technical teething problems – mainly valves 70-80% of residents consume less that 6Kl Community buy-in and ownership in place after

full consultative process

TOTAL TECHNICAL & SOCIAL INTERVENTION

Preliminary stage1. Identify prototype area2. Accurately establish ‘before’ information3. Identify and consult with decision makers and political

structures4. Establish a representative steering committee

Community liaison5. Undergo a consultation process with the community leaders

and community 6. Conduct a Marketing and Communications Campaign7. Undergo an Educational Programme and Awareness

Campaign8. Institute the signing of consumer water and sewer

agreements9. Consolidate all customer records

TOTAL TECHNICAL & SOCIAL INTERVENTION

10. Perform a House-to-house survey of existing plumbing 11. Train semi-skilled PDI’s, Plumbers and Contractors12. Do leak detection of all existing mains not being upgraded13. Replace secondary water mains (where necessary)

including Zone Meters14. Replace House Connections15. Rehabilitate private plumbing fixtures 16. Provide metering infrastructure and metering devices17. Monitor, evaluate and ensure sustainability (AFTERCARE)18. Monitor and evaluate attainment of objectives - KPIs19. Implement sustainability initiatives20. Reallocate Operations and Maintenance staff

TOTAL TECHNICAL & SOCIAL INTERVENTION

toilettoilet

toilettoilet

toilet toilet

toilet toilet

House

House

House

House

House

HouseHouse

House

Tap

Tap

Tap

Tap

Tap

TapTap

TapSteel midblock

mains

Road

Road

EXISTING WATER CONNECTIONS

toilettoilet

toilettoilet

toilet toilet

toilet toilet

House

House

House

House

House

HouseHouse

House

Tap

Tap

Tap

Tap

Tap

TapTap

TapSteel midblock

mains

Road

Road

New water mains

New water mains

..

..

..

. .... .

....

NEW WATER CONNECTIONS

SCOPE OF WORK

June 2004 – 800 stands June 2005 – 26 664 stands June 2006 – 75 197 stands June 2007 – 58 891 stands Forecast saving of 32 – 35 kl/ stand/ month Total expected saving of R158m p/annum

after project completion

INTERVENTION PROGRAMME

Social interventions Educate community on the scarcity of water Create awareness on water conservation Educate community on water cycle Obtain buy-in from customers of their water

consumption Tariffs and FBW education Educate customers on their rights and

obligations

PUBLIC PARTICIPATION Ward Committee briefings and workshops

Public Meetings

Targeted sectoral information sessions held with sectoral stakeholders

Consumer education workshops and study tours

Door-to-door campaign

Consumer information packs Establish and Capacitate Water Committee

ISD PROGRAMME

Challenging component of project as it deals with the human aspect to facilitate behavioural change which has no specific time frame:

Full co-operation from ward councilors, ward committees and other recognized community based structures

Regular public meetings to enhance community buy-in as public participation is an ongoing process

Customer satisfaction surveys

Minority opposition experienced - despite this there is community buy in and support is currently at 90%.

BENEFITS OF THE PROJECT FOR THE COMMUNITY

1. Once-off repair of household plumbing fixtures, free of charge

2. Ownership of consumption

3. More affordable services and lowering of billed amounts

4. Better, more consistent service delivery (Building Customer Relations)

5. Eradicating Arrears - Debt Write-Off & Indigent Policy

6. Reduction in credit control action

7. Creation of employment opportunities

8. Creation of vending opportunities through SMMEs

9. Creation of regional economic efficiencies

FREE-PAYMENT TECHNOLOGY &

TOTAL METERING SYSTEM

FREE-PAYMENT METERING

Metering required in terms of Water Services Act (1997)

Convenient and accurate way to dispense FBW (Monthly or Daily option)

Empowers the customer to collectively BUDGET FBW and purchased water credits - Manage own consumption in real time

No need for a deposit for water connection

Offers a real practical way of accommodating the indigent

Eliminates many of the problems / disputes associated with conventional metering -meter reading, billing and revenue collection

THE CHALLENGES

Total of 162 000 properties to be equipped with free-payment

Ideological debate around the concept of prepayment and acceptance of user-pay principle.

Project scheduling allowing for multiple contracting and procurement for Super-Blocks( ± 90 000 meters)

Free-Payment technology STS2 enhancement or an urgent alternative. SANS 1529-9 (Nov 2003) - Strict Compliance Meter Technology for JW Customer

Affordability for the consumer Vandalism, Tampering and Illegal Connections

THE TOTAL FREE-PAYMENT PROCESS

Distributor Cash DepositBulk Credits

Customer pays Cash

Credits Downloaded

Into Meter

Credits Used Up

Complaints

DataData

Customer

Token

JW Call Centre

1

2

78

6

4

3

5

JW Satellite Office

Afte

rcare

Su

pp

ort (T

ech

nic

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nd

Cu

sto

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1

OPERATIONS MANAGER: PREPAYMENT

PREPAYMENT: ADMINISTRATIVE SUPERVISOR

PROJECT INSPECTOR: PREPAYMENT

PREPAYMENT BUSINESS UNIT PREPAYMENT MANAGER

PREPAYMENT METER INSPECTORSX5

GENERAL ADMINISTRATIVE ASSISTANT

GENERAL WORKER

SUPERBLOCK 1 SUPERBLOCK 2 SUPERBLOCK 3

Customer Agent

X3

Data Capturer

X2

Customer Agent

Assistants: SUPPORT

X 6

Customer Agent

X3

Data Capturer

X2

Customer Agent

Assistants: SUPPORT

X 6

Customer Agent

X3

Data Capturer

X2

Customer Agent

Assistants: SUPPORT

X 6

Admin Ass:Data

X1

Admin Ass:Payments

X 1

Customer Agent

Assistants: Installation

X40

Admin Ass:Data

X1

Customer Agent

Assistants: Installation

X40

Customer Agent

Assistants: Installation

X40

Admin Ass:Data

X1

Admin Ass:Payments

X 1

Admin Ass:Payments

X 1

PREPAYMENT: AFTERCARE (SB 1, 2 & 3) + 4, 5, 6 & 7a

Customer Agent Assistants: AFTERCAREX 20

Customer Agent Assistants: AFTERCAREX 20

Customer Agent Assistants: AFTERCAREX 20

Admin Ass:Stores

X 1

Admin Ass:Stores

X 1

Admin Ass:Stores

X 1

Customer Agent

Assistants: People center

X4

Customer Agent

Assistants: People center

X4

Customer Agent

Assistants: People center

X4

PREPAYMENT: STORE MAN PREPAYMENT I.T. ADMINISTRATOR

SUPER BLOCKS 4, 5, 6 AND 7A

E-TECHNOLOGY ENVIRONMENT

In-house KPI Program that deals with: O & M data – Maintenance KPI’s System Characteristics – Efficiency & Effectiveness Survey and O & M – assess the installation and

implementation issues. Common Distribution/Database Structure (CDS) PREPAYMENT MMS / HANSEN INTERFACE

E.g. No water - response time is within 24hrs from official log of Call)

ISD - PREPAYMENT DATABASE

BASIC FREE-PAYMENT EQUIPMENT

Free-Payment Meter Information Transfer Unit

Portable Vending Unit Meter Management System

VENDING OPERATOR SPECIFICATION

Limited to existing small and micro businesses Currently using the COJ Cash Office – familiarity Individual vendor locations will be restricted to the

service-provided area of JW and within an approximate 2 kilometre radius around his/her business location to ensure: - Consumer convenience, and- Reasonable income per vendor.

Commission percentage payable is 10% reviewed on an annual basis.

Current Vending Systems are proprietary Currently initiated the development of a CDS

Not Recommended- Ground Level

Preferred - Above Ground level

X

TYPICAL INSTALLATION TYPES USED

SPLIT SYSTEM with SMART CARD

TYPICAL INSTALLATION TYPES USED

PERIPHERAL ENHANCEMENTS

JW DESIRED METER FEATURES

Current meter features/enhancements developed by JW in conjunction with Meter Suppliers:

Individualized ITU Displays “FREE” when in FBW VOLUME (Liters) of FBW remaining FBW supply options ~ 200l/day or 6kl/month TRANSFERRED CREDIT from token ACCUMULATED CREDIT on meter The VOLUME (Liters) based on the ACCUMULATED

CREDIT and CURRENT TARIFF LOW CREDIT Warning CURRENT TARIFF Price (R/Kl)

METER FEATURES cont…

The CURRENT VOLUME reading The PREVIOUS MONTH end reading

(Proprietary) Battery warning (Flat/Low/) ~ 5-6 years

battery life POSSIBLE LEAK detection TAMPER status Option to LOCK meter (Proprietary)

TARIFFS - AFFORDABILITY

Subsidized tariff structure – Combine Water and Sanitation

Affordable sliding scale tariff structure replacing flat rate -Increases as your water usage increases

The FBW applies to both water and sanitation services

Three categories of customers with three different cost structures (Residential, Commercial and Institutional)

Debt Write-Off and Indigent policy

Only an Annual Increase

CUSTOMER COMMENTS

“The consultation process being done is intense. We are always having meetings in our areas” Clr. Vuyisile, Ward 29, Soweto.

“When are you (Johannesburg Water) going to start this project in informal settlements, as they are the people who need it most.” Mboneni, Soweto.

“We are eight at home and my granny is only paying about R 30.00 for water every month compared to the R 128.44 she used to pay before this project started.” Sibongile, Phiri, Soweto.

“My dad is staying in Phiri. I used to give him R 300.00 – R 400.00 for paying the flat rate and now he is using about R 90.00” Madoda, Vosloorus.

“We love prepaid meters as we are saving a lot. This project creates work as well.” General Ndala, Soweto.

CUSTOMER COMMENTS…

“Ever since JW started putting prepaid meters in Phiri, I have been hearing complaints from a small number of community members. I do not understand why they are complaining. I have not experienced any problems since they gave me my meter in February 2004. I receive 6kl monthly and they changed my old toilet bowl for a new one. They also gave me a 20L bucket to help my family measure the water we use daily. I have not paid for water in four months. I think the people complaining do not want to become responsible citizens of this country. We must all start saving water”. Sakhile Phambo

“I think pre-paid is fine but it depend on you, how do you save water and people must start to use water wisely.” M. Maphathe, 121B, Phiri. (5 people)

“The problem is that every after three weeks we buy water and I think that is not fair.” L. Ndlodu, 70B, Phiri. (7 people with 1 backyard rooms)

• Post UFW for APRIL 2004 (Phiri - Block B) is 6.7%

(No) (Kl) (Kl) (Rand) (Rand) (R/month) (R/month)

I x R2.65 actual sales

C D I J N O P

1,771 55.0 614,591 R 1,631,984.04 R 299,673.80 R 21.70 R 33.61

3,108 67.0 230,368 R 611,719.19 R 167,629.30 R 24.71 R 41.97

3,377 70.0 244,960 R 650,466.78 R 162,094.92 R 23.27 R 49.82

4,295 63.0 298,304 R 792,116.44 R 190,440.63 R 22.44 R 40.99

64.7 R 23.12 R 42.57

12,551 1,388,223 R 3,686,286.45 R 819,838.65 (4.6 Kl) (7.9 Kl)

Average value of purchases made

Weighted averages

Cumulative totals to date

PHIRI & SUPERBLO CKS CO MBINED

Phiri Prototype Project

Superblock No 1

Total value of sales devided

by the total no of stands

Total value of sales devided by the no of stands purchasing

top-ups

Superblock No 2

Superblock No 3

O peration Gcin'amanzi Project

Area

Amount of water sold to date

Pre interven-

tion Volume

per stand

Monthly reduction in water

losses

Saving in water purchases from Rand Water to

date

Accumu-lative no of

stands fitted with meters

as at 16 Mar'05

THANK YOU