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BCCI CENTLEC BREAKFAST The RSA electricity crisis

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SA not the only country with energy crisis world phenomenon. Market principle of supply & demand ... Caters for network capacity. Demand charge - R/kVA/month ... – PowerPoint PPT presentation

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Title: BCCI CENTLEC BREAKFAST The RSA electricity crisis


1
BCCI / CENTLEC BREAKFASTThe RSA electricity
crisis
  • LG Kritzinger (Pr Eng)
  • 18 August 2008

2
  • Vision is foresight with insight based on
    hindsight
  • Be an innovator, not an imitator

3
Introduction
  • SA not the only country with energy crisis
    world phenomenon
  • Market principle of supply demand not enforced
    due to regulation
  • Electricity prices too low
  • Previously limited incentives to customers to
    change consumption patterns
  • What was can be done about it?

4
What is the problem?
  • Demand not enough plant
  • Energy not enough coal
  • Both ?
  • What is role of price ?

5
What is the problem?
6
What is the problem?
7
What is the problem?
8
What is the problem?
9
What is the problem?

10
Supply / Demand BalanceLoad Duration Curve
Analysis 1 300 MW Load Reduction
  • Some periods of reserve shortages in summer can
    be accommodated by periods showing excess capacity

Note Light-blue area (area under red line) is
demand that can be supplied
11
Approach to action
  • Price increases tariff changes
  • TOU tariff implementation
  • Save energy (PCP Load control)
  • Fuel switching (paraffin, gas solar)
  • Implement time zones
  • Legislation

12
Government Proposed Savings quotas
  • Industrial 10
  • Commercial (general) 15
  • Hotels, resorts, shopping malls conference
    centres 20
  • Large office buildings, government, Universities,
    Technicons, municipal electricity utility
    offices 15
  • Agriculture 5
  • Residential 10

13
Current load reduction progress
System Stabilisation phase
4000 MW
Power Rationing
Resolved
1000 MW Coal
3000 MW
1800 MW Residential, Commercial, Agricultural l
Customers
Limited Progress
Power Conservation Program and Supply Side Options
1200 MW Industrial Customers
Received
Phase 1 4 weeks
Phase 2 4 months
Phase 3 4 years
1 March
1 February
1 July
2012

14
Impact of load reduction on net reserve margin
Increase reserve margins to operate in a more
stable and sustainable manner

15
SOUTH AFRICAN NET RESERVE MARGIN
  • Eskom base case
  • 10 demand savings
  • 5 demand savings
  • net capacity reserve margin
  • Key assumptions
  • Growth 4 p.a.
  • Supply side assumptions
  • Eskom supply base case plans including Medupi,
    Bravo and Mmamabula (2013)
  • Excluding UCG at Majuba, extra wind capacity,
    OCGT/CCGT conversions, Co-Gen and DME IPP
  • Demand savings calculation
  • Annual energy is reduced by 5 or 10, and then
    the peak demand is calculated to derive the
    projected reserve margin
  • 03
  • 05
  • 07
  • 09
  • 11
  • 13
  • 15

Source Team analysis
16
A GWH APPROACH TO ROLL-OUT ECS IS PROPOSED,
STARTING WITH THOSE ACCOUNTS USING gt25 GWH
ANNUALLY
250
  • ESKOM VIEW

Phase 1 (1 July 08)
  • Phase 3
  • Cumulative
  • Account usage

gt2.5 GWh
gt250 MWh
gt25 GWh
gt100 MWh
  • Account quantity

22 000
9 000
1 000
  • Consumption covered
  • TWh

89
94
98
100
  • Consumption percentage

Regions without sufficient critical mass of
customers above threshold will select their top
20 customers to participate irrespective of
size coverage of total Eskom-related
consumption excluding internationals and users
lt100 MWh Source Team analysis
17
Impact of PCP
  • Requirement 10 or 21
  • Price
  • 90 100 250 c/kWh
  • gt100 350 c/kWh
  • Loss of Revenue R24m
  • Process
  • State Law Advisors
  • Regulations
  • Account

18
Successes to date
  • Load shedding terminated
  • Substantial savings
  • March 9,64
  • May 10,52
  • June 13,71
  • July 8,16
  • Participation on National level
  • Development of RDS system
  • Power Station private partner

19
New Regulations
  • GG 31250 18 Jul 2008
  • Buildings
  • Energy Efficient lighting
  • Remote control HVAC
  • Geyser control all elect geysers
  • Smart meters gt 1000 kWh TOU
  • Time frame - Jan 2012

20
Way forward
  • Implementation of PCP
  • Implementation of Regulations
  • Mind shift on use of electricity

21
Questions

22
Tariff structures
  • One part
  • all components combined in a unit cost
  • Two part
  • Fixed
  • Variable cost
  • Three part
  • Fixed
  • Variable
  • Demand
  • Time of Use Tariff structure
  • As above but reflecting time variable of energy
    purchases

23
What has CENTLEC proposed for 2008/9
  • Consultant evaluated tariff levels and components
  • TOU tariffs for all bulk customers
  • All domestic customers gt 500 units moved to home
    power levels
  • All PP customers lt 500 units lower increase (16
    increase)
  • Introduced a new homeflex tariff to be used with
    Smart metering systems

24
Basic tariffs- one part
Cost Rand
Units in kWh
25
Basic tariffs- Two part
Variable cost
Cost Rand
One part
Fixed cost
Subsidized area
Units in kWh
26
Three part
  • Fixed cost per month
  • Variable cost units consumed during a month
    c/unit
  • Demand charge max half hour consumption per month
    - R/kVA
  • Only measured in peak times

27
Time of use time slots
28
Principles for TOU tariffs
  • Pricing signals to customers - demand and thus
    cost of electricity at different times of the
    day, week and year
  • Modify consumption patterns by providing
    financial incentives to move or reduce power
    consumption
  • Recover the true cost of electricity supply

29
CENTLEC TOU implementation
  • Installed advanced metering at 180 larger users
  • Publish consumption data on website updated every
    24h
  • Implemented supply contract with power quality
    clauses.
  • Monthly consumption bill available on website
  • Switch all MV bulk users as from 1st July 2008
    with NERSA approval
  • LV bulk users to follow as metering is upgraded
  • Design tariff structure to be revenue neutral

30
(No Transcript)
31
TOU tariff summary
  • Components of new tariff
  • Basic charge - fixed charge/ month
  • Access charge/ month - R/kVA
  • Based on max kVA/12 month period
  • Measured in all time slots
  • Caters for network capacity
  • Demand charge - R/kVA/month
  • Measured in peak and std times during a month
  • Energy - c/kWh
  • Measured in peak, std and off peak time slots

32
Domestic tariffs
  • Pre-paid meters and Credit meters
  • All domestic prepayment customers with an average
    annual monthly consumption of more than 500 units
    shall be supplied at the normal domestic
    Homepower tariffs applicable. Thus the same
    tariffs used for credit meters.
  • Customers on pre-payment meters, using more than
    500 units for the last three months, were
    switched over to the new Homepower pre-paid
    meter. It is thus possible for customers to
    choose a credit or a prepayment meter at the same
    tariff level.
  • Businesslight prepayment tariff have been
    discontinued and former users on prepayment
    systems will pay exactly the same tariff as
    businessrate customers on credit meters and will
    thus no longer be subsidized on prepayment
    lifeline tariffs. Thus, all the Businesslight
    customers (irrespective of the number of units
    used) will now be charged on the Business rate on
    pre-paid meters.
  • The prepayment vending system will thus charge a
    daily fixed cost as is the case with Homepower
    tariffs (on a time between purchase transactions
    basis) plus a unit cost applicable to this
    category of customer.
  • The applicable monthly fixed charge would
    therefore be reduced to a daily fixed cost. When
    purchasing electricity the system will calculate
    the number of days since the last purchase and
    use that as a norm to calculate the portion of
    the fixed cost payable with the current
    transaction. The net effect would be the same as
    the monthly charge on credit meters.

33
Tariffs applicable to domestic and small business
customers for the 2008/9 financial years
34
Typical prepayment purchase example
Homepower tariff (more than 500 units per
month) Days since previous purchase
10 Amount tendered R100
Minus the VAT R
12.28 Remainder after VAT R
87.72 Amount due for fixed cost 10 x R1,68 R
16,80 Remainder after fixed cost R 70.92 Units
supplied R 70.92/(R0.43175) 164.9
35
Questions
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