1. CUSTOMER FORUM
PROPOSED NEW ELECTRICITY TARIFFS FOR
JULY 2011
Chief Engineer: Metering, Vending and Tariffs
Stephen Delport
4 MARCH 2011

2. 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 Council
• It is also not “given” that NERSA will approve
the current format

3. IMPORTANT NOTE
• Council must still consider this draft of tariffs…

4. THE FORMAT OF THIS PRESENTATION
• The presentation is built around graphical
information, providing a technical picture

5. BACKGROUND

6. BACKGROUND

7. BACKGROUND

8. METER READING PATH - FULL

9. 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 place
• Exciting new technologies to consider

10. REVENUE SEGMENT – PREPAYMENT EAST

11. 2007-2008-2009-2010 MEGAFLEX: PURCHASES OF ELECTRICITY kWh COSTS
R 300 000 000 R0-00: PEAK vs STANDARD vs OFF-PEAK and kVA
R0-00 Peak kWh
R 250 000 000
R0-00 Stnd kWh
R0-00 Off-Peak kWh
R 200 000 000
R0-00 kVA
R 150 000 000 2 per. Mov. Avg. (R0-
00 Peak kWh)
2 per. Mov. Avg. (R0-
00 kVA)
R 100 000 000
R 50 000 000
R-
J FMAM J J A S O N D J FMAM J J A S O N D J FMAM J J A S O N D J FMAM J J A S O N D J

12. City of Ekurhuleni Percentage Increase in R/kVA and c/kWh:
60% Purchases of Electricity : Jan 2007 till Jan 2011
% Increase kVA
50%
% Increase kWh
40%
30%
20%
10%
0%
-10%
-20%
-30%

13. Percentage Increases in c/kWh only: July 2006 to Jan 2011
50.0%
40.0%
•
30.0%
% Increase kWh
% Eff Increase
20.0%
2 per. Mov. Avg. (% Increase kWh)
2 per. Mov. Avg. (% Eff Increase)
10.0%
0.0%
Oct/05
Jan/06
Oct/06
Jan/07
Oct/07
Jan/08
Oct/08
Jan/09
Oct/09
Jan/10
Oct/10
Jan/11
Apr/06
Apr/07
Apr/08
Apr/09
Apr/10
Jul/05
Jul/06
Jul/07
Jul/08
Jul/09
Jul/10
-10.0%

14. Energy Demand Reduction of 12% by 2015 for SA: via
energy efficiency improvements

15. 11 500 000 000
Total kWh Purchased
11 000 000 000
10 500 000 000
Series1
10 000 000 000 Moving Ave
9 500 000 000
9 000 000 000
Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec Jan - Dec
2003 2004 2005 2006 2007 2008 2009 2010

16. 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

17. 1000 kVA: Electricity Tariffs: 2011-12: c/kWh v/s Load Factor
R 4.00
EMM 2011/12 TAR C
R 3.50
EMM 2011/12 TOU TAR E
<1MVA
TOU > 1MVA TAR D 2011-12
R 3.00
R 2.50
c/kWh
R 2.00
R 1.50
R 1.00
R 0.50
R-
100.…
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%

18. 100 kVA: Electricity Tariffs: 2011-12: c/kWh v/s Load Factor
R 4.50
EMM 2011/12 TAR C
R 4.00
EMM 2011/12 TOU TAR E
<1MVA
R 3.50 ESKOM NEW 2011-12
R 3.00
R 2.50
c/kWh
R 2.00
R 1.50
R 1.00
R 0.50
R-
100.…
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%

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

20. Tar B Business: Account impact: 3-ph versus 1-ph and various
Load Factors
R 30 000
R 25 000
Series1
R 20 000
Series2
Series3
Series4
R 15 000
Series5
L.F. 30% 40A up to 150 A 1-ph
L.F 20% 40A up to 150A 3-ph
R 10 000
L.F. 30% 40A up to 150A 1-ph
L.F. 40% 40A up to 150A 3-ph
R 5 000
R0
40 50 60 70 80 90 100 110 120 130 140 150

21. IMPORTANT NOTE
• On Tariff B, the capacity should not be
overstated…

23. 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
103.92 kVA
• =R 3,147.17 (Eskom R/kVA/month)

24. Tar B Busines versus Tar B Res c/kWh at various L.F.
R 1.10
R 1.05
R 1.00
Tar B Res
R 0.95
Tar B Bus
40 Amp Bus
R 0.90
R 0.85
R 0.80
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

25. TARIFF A vs TARIFF B : 2011/2012
R 3 000.00
R 2 500.00
R 2 000.00
690
R 1 500.00
R 1 000.00
New IBT A
R 500.00
R 0.00
Number of kWh units

26. (Un)sustainable Increases:-
2010/11 I ncrease 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
1.55 Ratio 1.47 1.39 1.32 1.25 1.18 1.12 1.06 1.00

27. I Thank You
Any Questions?