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AMEU Committee Meetings 18-19 June 2014

AMEU GH Branch meeting Callie De Wet Sport Centre, Robertson. AMEU Committee Meetings 18-19 June 2014. William Olivier 15 August 2014. Content. Wednesday 18 June 2014 Standing Committee Legal & Statutory Committee Tariff Committee Education & Training Committee

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AMEU Committee Meetings 18-19 June 2014

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  1. AMEU GH Branch meetingCallie De Wet Sport Centre, Robertson AMEU Committee Meetings18-19 June 2014 William Olivier 15 August 2014

  2. Content • Wednesday 18 June 2014 • Standing Committee • Legal & Statutory Committee • Tariff Committee • Education & Training Committee • Publicity and Papers Committee • Thursday 19 June 2014 • Technical Committee

  3. Standing Committee meeting • Financial Statements • 2014 budget • March 2014: audited results indicate a surplus R41 347 • Unpaid membership fees – 30% • 8% increase in Convention registration fee – R4104 • Governance workshop – 12 November 2013 • Form of the Association – non-profit/voluntary • Expanded mandate of Standing Committee • General Secretary duties • Branch accounts – including payment to Branches (SARPA) • Convention 2015 • 4 to 7 October 2015 at Sandton Convention Centre

  4. Standing Committee meeting [cont] • Affiliate matters • Request senior financial managers be members of AMEU • Voting by electronic ballot • 222 members – 147 unpaid • Branch affairs • Convention 2014 - Cable theft plenary session • To be considered at Papers Committee • Electricity Revenue Management Benchmarking Initiative • Agreed to support subject to conditions

  5. Legal & Statutory Committee • ESLC mandate • Changing structure to a formal `non-profit’ legal identity • Draft constitution being debated • Limitation of liability – risk to participants? • Boundary disputes • Drakenstein – provision of information from Eskom clarified. • Standing Committee Task Team Workshop – 25 March 2014 produced position paper • Presented to SALGA Joint Municipal Trading & Services (MTS) meeting – 12 June 2014

  6. Legal & Statutory Committee (cont) • Boundary disputes • Agreed to recommend to NEC: • SALGA engage NERSA on making SDA between Eskom and municipality a condition of Eskom’s licence • Seek legal opinion to provide clarity on rights of supply • Propose a collaborative approach between SALGA, AMEU, Eskom, NERSA, DoE and DPE where a roadmap is agreed and put in place, that recognizes the development and signature of an SDA , EG route, and ultimately culminates in consolidation of supply rights. • Electricity supply bylaws • Drakenstein were aiming to promulgate amended bylaws by May 2014 to address EG and Co-generation • BY-LAWS MUST BE CLEAR - March 2014 e-Bulletin

  7. Legal & Statutory Committee (cont) • Construction regulations • Revised regulations promulgated in January 2014 • – February 2014 e-Bulletin • Dti Designation Process – transformers • Presentation by TapiwaSamanga • Support for local production and content, in the form of designating sectors/products (where organs of State & SOEs procure) by the Minister of Trade and Industry for local production • Pylons, cables, switchgear & possible transformers • Can specify local production and content even if not designated – section 9 (3) of PPPF

  8. Tariff Committee • EIUG presentation - Concerns on the wheeling of energy over municipal networks • What is wheeling and why do we need it? • Current challenges include economic, regulatory and commercial • Common, agreed and approved wheeling framework • Eskom - problem not unique to municipalities • 3rd party transportation of energy framework in public domain • NERSA not responding to queries from EIUG or Eskom • Agreement that NERSA should be driving the process and AMEU to write to CEO • EIUG to invite AMEU to participate in WG

  9. Tariff Committee • Electricity Cost of Supply Study And Green Electricity Tariff • Guidelines for other municipalities available – March 2014 e-Bulletin • What else can SALGA-GIZ do to assist munics with RE?

  10. Tariff Committee [cont] • NERSA – Electricity Resellers • NERSA looking at principles and policies and issued a consultation paper on 7 April 2014 • AMEU submission - 7 May 2014 • Complex issues which need to be handled with sensitivity due to revenue impact on Munics and Eskom • Public hearing scheduled for 22 July 2014 in Gauteng • NERSA - Non-Financial Information (NFI) Manual • Secondworkshop held on 11 March 2014 • Apparently follow up was to be on 18 June 2014

  11. Tariff Committee (cont) • Eskom – MYPD3 • RCA process for MYPD2 period still not complete • Prudence of OCGT use being analysed • Possible decision in July for implementation in 2015 • Submitted some structural adjustments • Rationalising and making simpler • Change in peak times 6-9 am and 5-7pm : Winter ONLY • No change in prices; pilots being conducted • Eskom – funding of supplies • Meeting with NT – 3 July 2013 as national problem • Follow up meeting 4 March 2014 – no response yet from National Treasury

  12. Tariff Committee (cont) • Eskom's alternative tariff for municipalities • NERSA consultation paper • Date for comment – 28 November 2013 • Public hearing – 4 December 2013 • Only two presentations • One indicated that most aspects of the proposed tariff contravened the EPP principles • NERSA ordered Eskom to design another tariff but this is not possible with the restrictions imposed.

  13. Education & Training Committee • Eskom training initiatives • Line Construction Training Centre, Network Simulator Coaching Centre & Virtual Learning Environment (VLE) • Will be providing simulator facilities in all 9 provinces • Taking over what used to be done at Eskom Training College • MV/LV Line Construction Course – standardised throughout country • Virtual Learning Environment (VLE) project • Targeting those who have not had training opportunities • Digitised inter-active e-books • Groups: 10 persons - Eskom employees (30%);external contractors (20%); COW (20%) and Electrical Line Mechanic Trade (30%) • Will not replace facilitators • Challenges

  14. Education & Training Committee • AMEU Electrical Training Working Group • AMEU became custodian of the WG – demise of LGSETA • Working on several important issues for standardisation of (electrical) training in municipalities • Meeting on 9 and 10 April 2014 • Approach to LGSETA to reconsider funding • Administrator requested meeting with Chair of Committee • Agreed that the Committee work will continue and next meeting will be held 30 and 31 July 2014

  15. Technical Committee • Review of the EDI’s Asset Status Report (ADAM) • Estimate of backlog in 2008 – R27bn • Draft report presented on 26 March 2014 • Backlog assessment and update – R56bn • Priority Matrix and short term implementation • Update ADAM business case (funding mechanisms & options) • Samples: • 21 municipalities and 2 Eskom regions • 60+ municipalities to prioritise generic projects • SWH programme • Report on DoE workshop in Gauteng in May • To be conducted in all provinces?

  16. Technical Committee • Eskom System Supply Status • AMEU/Eskom Workgroup • PhutiMoloto - Ekurhuleni • Vijay Batohi - eThekwini • Paul Vermeulan – City Power • Update: • Rotational load shedding for the last two weeks despite use of OCGTs, power buy-backs (interruptible loads) + IPPs • Forecast for June – shortfall excl OCGTs is 3000 - 4000 MW (assuming unplanned outages of 4500 MW) • Shortfall expected to reduce to 2000 – 3000 MW for July to September • RE (Wind and Solar) provided +/- 300 MW in May

  17. Technical Committee • Renewable Energy/Embedded Generation • Guideline on the installation of embedded generation and the impact it may have on the revenue of municipalities; • SEA updated model on financial impact on AMEU website • Updated GIZ model and guidelines on Cost of Supply Study and Green Electricity Tariff on AMEU website • GIZ Technical Workshop on integration (e.g. technical connection rules, safety etc) of SSEG - 26 June 2014 • Markus Poeller facilitating plus technical expert from German municipal electricity utility to share their experience

  18. Technical Committee (cont) • Electrification/NEAC • 5-year electrification targets • 1.4 million households (2014 target is 265 000 + 15 000 non-grid) • Substations + upgrades • 2014/15 allocation letters distributed - changes in the allocations for 2014/15 for INEP (msg 28 February 2014) • 5% Eskom levy to be included in allocations in future • Pre-engineering allowance of R1.5m per municipality – guidance to be provided on how to report • Department of Human Settlements (DoHS) policy on internal wiring costs of homes – to be discussed between DoE and DoHS – WCPG standard design

  19. Technical Committee (cont) • Presidential Infrastructure Coordination Commission (PICC) - Strategic Integrated Project 10 • focuses on delivery of electricity which has numerous socio-economic benefits • Energy security – transmission, distribution and universal access to electricity • Eskom will lead 3 SIPs, including SIP10 Coordination Office • SIP 10 office – data collection, analyse data & identify constraints, facilitate unblocking and produce reports (quarterly) • Geospatial view of backlog • Challenges-funding, skills, lack of standardisation, servitudes, EIA • Indications of non-delivery – networks constrained, safety etc • Reporting – aim is not to provide additional work for munics • Budget spend – what is planned vs what is achieved (performance)

  20. Technical Committee (cont) • Presidential Infrastructure Coordination Commission (PICC) - Strategic Integrated Project 10 • Five focus areas • Packages for municipalities to draw on root causes of their challenges/ concerns • Centralised procurement of electricity assets for municipalities • District Planning Centre – deliver planning and technical skills to municipalities • Infrastructure planning through shared servitudes • Ease of investment in a Municipal area by investors / business

  21. Technical Committee (cont) • Proposal to establish an Africa Utilities Telecoms Council (UTC) • Role to be played by the expansion of telecoms and ICT technologies and services in future smart grids • Organisational for model for proposed AUTC • Non-profit trade association concentrating on telecoms as they affect utility organisations in South Africa • Benefits to utilities in developing relationships with energy and telecoms regulators, ICT vendors and public telecom network operators

  22. Publicity and Papers Committee • Website • Undergoing modernisation to accommodate increasing use of mobile devices • Due to go online by end June 2014 • AMEU News • June 2014 edition being posted • E-Bulletin • Apologies for late publication of April edition • No May edition

  23. Publicity and Papers Committee • Convention 2014 • Theme is “MOVING TOWARDS SOUTHERN AFRICA’S ELECTRICITY NETWORKS OF THE FUTURE” • 39 submissions received by deadline of 2 April 2014 • Programme almost finalised • Agreed to include a plenary session on Cable Theft in first session following opening formalities • SALGA Support of AMEU

  24. AMEU GH Branch meetingRobertson – 15 August 2014 Thank you

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