CAMDEBOO MUNICIPALITY

CAMDEBOO MUNICIPALITY

CAMDEBOO MUNICIPALITY GRAAFF-REINET ABERDEEN NIEU-BETHESDA (ESKOM) URSULA BAARTMAN MANAGER: FINANCE JIMMY JOUBERT CHIEF FINANCIAL OFFICER ALBERTUS VAN ZYL MANAGER: ELECTRICITY

Statistics South Africa Census Figures - 2001 Population group by gender: Male Female Total Black African 4 785 5 003 9 788 Coloured 14 278 15 533 29 811 Indian or Asian 23 18 41 White 2 185 2 546 4 731 Total 21 271 23 100 44 371

Statistics South Africa Census Figures - 2001 Percentage of households using electricity as main fuel: % Households Number of Households Lighting 85% 8 769 Heating 49% 5 035 Cooking 57% 5 922

Basic Service Analysis The latest information indicates that 93.4% of the households in the Camdeboo Municipality have access to electricity Category of basic service delivery Total no. of households in Camdeboo according to survey No. of h/h with minimum access % of h/h with minimum access H/h below basic level of services/ backlogs % of h/h gelow basic level of services/ backlogs STATSSA CENSUS 2001 10318 8874 86 1444 14 CACADU H/H SURVEY 2005 10391 10338 99.5 53 0.5 COMMUNITY SURVEY 2007 8994 8823 98.1 171 1.9 DME SURVEY 2008 11402 10269 90.1 1133 9.9

Number of actual electricity users in Graaff-Reinet and Aberdeen Graaff-Reinet Aberdeen Total Low Domestic Rate Credit Meters 152 13 165 Prepaid Meters 1557 689 2245 Standard Domestic Rate Credit Meters 1496 208 1704 Prepaid Meters 3159 957 4116 Business Rate 745 143 888 Total number of users 9118

Actual percentage increase in budgeted revenue if usage remain steady: Current annualised income 2010/2011 46 654 185 Budgeted annualised income 2011/2012 if usage remain steady: Percentage increase 28% 59 717 353 Revenue was calculated using submitted tariff increases

Actual percentage increase in budgeted revenue if usage decrease due to financial constraints: Current annualised income 2010/2011 46 654 185 Budgeted annualised income 2011/2012 if usage remain steady: Percentage increase 25% 58 260 833 Revenue was calculated using submitted tariff increases

Audited 2009/2010 results - not in GRAP format Grant expenditure utilised and capital expenditure funded from Grants not included Income and Service charges from Street Lighting not included Revenue from electricity sales (excluding Streetlights) 35 769 405 Less: Bulk Purchases 22 439 177 13 330 228 Other Expenditure 8 301 355 Salaries, Wages and Allowances 4 289 763 Repairs and Maintenance 380 224 General Expenses Running costs of vehicles 185 990 Insurance 165 103 Postage 119 790 Security Services 383 845 Service Charges - Excluding Streetlighting 530 561 Telephones 71 436 Prepaid commission 130 407 Other General Expenses 2 044 236 5 028 873 Other Revenue: 485 741 Work done for private persons 305 802 Connection and Reconnection fees 179 939 5 514 614 Contribution to Capital Expenditure 2 473 505 3 041 109 Admin Charges - Other Municipal Departments 7 781 351 Loss transferred to the Municipality (4 740 242)

Budget comparison 2010/2011 Adj 2011/2012 Revenue from electricity sales (excluding Streetlights) 48 228 399 58 260 833 Less: Bulk Purchases 31 000 000 45 095 405 17 228 399 13 165 428 Other Expenditure 9 435 206 10 613 111 Salaries, Wages and Allowances 5 132 440 5 065 316 Repairs and Maintenance 981 470 2 659 200 Provision for Bad Debts 500 000 250 000 Depreciation 1 000 000 640 000 General Expenses Running costs of vehicles 220 000 348 490 Insurance 220 000 222 100 Postage 150 000 140 000 Security Services 200 000 200 000 Service Charges - Excluding Streetlighting 586 537 596 170 Telephones 75 000 75 000 Consultancy services - Policies and Procedures 100 000 Prepaid commission 100 000 100 000 Other General Expenses 269 759 216 835 7 793 193 2 552 318 Other Revenue: 624 720 890 082 Work done for private persons 398 074 553 660 Connection and Reconnection fees 226 646 336 422 8 417 913 3 442 400 Contribution to Capital Expenditure 2 205 000 3 430 000 6 212 913 12 400 Admin Charges - Other Municipal Departments 8 986 782 8 302 534 (2 773 869) (8 290 135) Grant expenditure utilised and capital expenditure funded from Grants not included Income and Service charges from Street Lighting not included

FUNDED - OPEX BUDGET 936 895 Repair of high mast lighting in Eskom supply areas - Umasizakhe 45 000 Repair of high mast lighting in Camdeboo area - Kroonvale 15 000 Repair of high mast lighting in Aberdeen 15 000 Repair of streetlights in Graaff-Reinet and Aberdeen 51 046 Repair work required on the Central Substation building (replace of gutters) 15 000 Repair work required on the Sammy Substation building (replace of gutters) 15 000 Replacement of faulty electricity meters at the Consumer point 35 000 Extensive repair work required on rural line from Jansenville. 150 000 Repair work to vehicles required due to the nature of the terrain. Rural lines in inaccessible places due to mountainous terrain. Includes tyres, services, spare parts and labour on all vehicles, machinery and equipment. 280 425 Oil purification of transformers 80 000 Repair/maintenance of transformers 100 000 Repair of fencing re communication system 60 000 General day to day repairs resulting from daily and monthly inspections, including servicing of switchgear, connections and reticulation lines 75 424

Summary of Repairs and Maintenance Budget 2011/2012 Streetlights 140 000 High mast lights 60 000 Other lights 10 000 Main Substation 260 000 Switchgear on substations 205 000 Damaged poles on rural lines 275 000 Ring main units 520 000 Buildings 101 000 Workshops 120 000 Fencing 220 000 General network 365 000

In addition to these items essential repairs and maintenance are also required in the following areas but could not be included in the budget due to financial restraints: Autorecloser (Welgevonden line, 11KV) R 250 000 Mini-substation (Caravan Park) R 350 000 Substation Wolwas R 400 000 Switchgear at main intake substation R 3 500 000 Switchgear at substations R 3 000 000 Wooden structures on rural 22KV lines R 2 000 000 Workshop R 250 000

The following capital requirements were identified as urgent by the Council and was provided for in the 2011/2012 budget Upgrading of MV cables due to capacity shortages R 1 750 000 Replacement of 4x4 vehicle (older than 8 years) R 450 000 Replacement of LV overhead power lines as it cannot handle the load R 410 000 Replacement of transformers due to capacity shortages R 300 000 Standby transformer required for Aberdeen R 100 000 Installation of bird flappers upon request of SANPARKS endangerment of blue cranes R 20 000 Extension and improvement of electrical facilities at community centres R 40 000 Installation of energy efficient street lights R 300 000 Occupational health and Safety tools and equipment R 60 000 In addition the following capital project will be funded by the DME: Provision of electrical infrastructure to new housing project R 1 000 000

In addition to the items listed above, the following issues must be urgently addressed, but as funding could not be found in the current budget, it had to be referred to the outer years: Autorecloser for rural line R 250 000 Replace existing MV switch gear R 700 000 Upgrading of MV cables due to capacity shortages R 5 000 000 Replacement of 4x4 vehicles (older than 5 years) R 1 800 000 Crane truck R 2 000 000 Replacement of LV overhead power lines as it cannot handle the load R 750 000 Standby transformers R 800 000 MV infrastructure to new RDP housing developments R 6 500 000 Service connections to RDP housing developments R 3 500 000 In terms of community safety 12 additional high mast lights are urgently required and that will amount to approximately R 4 800 000. The Camdeboo Municipality has not been able to finance any high mast lights in the 2010/2011 or 2011/2012 budgets. The total capital projects that are urgently required in order to ensure that the infrastructure needs of Camdeboo can be met but that cannot be financed at this stage amounts to R 21 300 000. That excludes the community projects and improvements that we are being pressurised to deliver such as high mast lights that cannot be financed at this time.