AMEU Convention Tuesday 28 SEPTEMBER 2010 Stellenbosch Chief Engineer: Metering, Vending and Tariffs City of Ekurhuleni Stephen Delport 28 SEPTEMBER 2010
During the Depression years, when power lines first electrified rural America, a farmer in Tennessee rose in church one Sunday and said The greatest thing on earth is to have the love of God in your heart, and the next greatest thing is to have electricity in your house. He was talking about a few light bulbs and maybe a radio. He had no idea! E.g. the importance that Laptops and Cell phones will have on people when batteries run flat!
Developing new electricity tariffs and considering the standardization processes based on NERSA guidelines one have to consider the following:- 1.) Tariff increases should be stable, gradual and predictable. 2.)Tariffs should be as cost-reflective as possible. 3.) Tariffs should be affordable to all customer categories. 4.) Account should be taken of revenue neutrality principles. 5.) In accordance with the NERSA directive only one price increase is allowed per year.
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R 60.00 R 50.00 ESKOM - EMM: R per kva cost vs "only" R per 100 kwh: Purchase Costs R per 100 kwh R 50.00 R 45.00 R 40.00 R 40.00 R per kva R 35.00 2 per. Mov. Avg. (R per 100 kwh) R 30.00 R 30.00 2 per. Mov. Avg. (R per kva) R 25.00 R 20.00 R 20.00 R 15.00 R 10.00 R 10.00 R 5.00 R 0.00 R -
Jul/05 Oct/05 Jan/06 Apr/06 Jul/06 Oct/06 Jan/07 Apr/07 Jul/07 Oct/07 Jan/08 Apr/08 Jul/08 Oct/08 Jan/09 Apr/09 Jul/09 Oct/09 Jan/10 Apr/10 Jul/10 The Graph below may depicts the difficulty that municipal tariff designers may experience due to unpredictable pricing signals over the past years. The last two bars clearly indicate that the 2010/11 Eskom pricing signals for kva and kwh now have agian put more emphasis on kva charges in comparison with during 2009/10 where more emphasis were placed on energy kwh than demand kva charges. 60.0% City of Ekurhuleni Percentage Increase in R/kVA and c/kwh: Purchases of Electricity : July 2006 till August 2010 50.0% 40.0% 30.0% 20.0% 10.0% % Increase kva % Increase kwh 2 per. Mov. Avg. (% Increase kva) 2 per. Mov. Avg. (% Increase kwh) 0.0% -10.0% -20.0% -30.0%
This is a theoretical exercise! Dataset-1 Base data for TOU tariffs: 550 Customers JUNE,JULY,AUGUST % kwh kwh PEAK 16.1% 130,633,897 STANDARD 40.5% 327,754,878 OFF-PEAK 43.4% 351,860,618 SEPTEMBER TO MAY % kwh PEAK 15.8% 402,386,421 STANDARD 40.0% 1,016,111,240 OFF-PEAK 44.2% 1,122,709,650 kva JUNE,JULY,AUGUST (kva) Max.MD kva 1,937,371 SEPTEMBER TO MAY (kva) Max.MD kva 6,286,918
Average R1,9 Billion TOU- Tariff Incl VAT Incl VAT Percentage Eff. kwh Unit Cost Total kwh ACCOUNT TOTAL v/s Eskom EMM-TAR-D-2009/10 R 0.56595 3,351,456,705 R 1,896,742,739.89 49.81% ethekwini-itou LPU-2009/10 R 0.50500 3,351,456,705 R 1,692,471,681.43 33.68% TSHWANE-11kV TOU-D-2009/10 R 0.50614 3,351,456,705 R 1,696,304,121.48 33.98% Cape Town Very LPU-TOU-2009/10 R 0.68680 3,351,456,705 R 2,301,787,833.69 81.80% CITY POWER-TOU- 2009/10 R 0.66511 3,339,183,469 R 2,220,932,717.73 76.06% NM Metro (PE) -TOU-2009/10 R 0.58767 3,351,456,705 R 1,969,555,919.92 55.56% Average R 0.58611 R 1,962,965,835.69 55.15%
550 TOU Customer various Load Factors: Note Load Factor vs c/kwh
kwh R-00 Cost kwh R/100 kwh kva R-00 Cost kva R/ kva Relative Energy Ranking to other Cities: 1 Best; 6 Worst based on R/100kWh TSHWANE-11kV TOU-D-2009/10 R 750,557,019 3,351,456,705 22.39 R 732,866,407 8,224,289 89.11 6 ethekwini-itou LPU-2009/10 R 979,481,124 3,351,456,705 29.23 R 493,833,200 8,224,289 60.05 5 Cape Town Very LPU-TOU-2009/10 R 1,080,249,147 3,351,456,705 32.23 R 312,522,988 8,224,289 38.00 4 NM Metro (PE) -TOU-2009/10 R 1,150,068,749 3,351,456,705 34.32 R 571,176,882 8,224,289 69.45 3 CITY POWER-TOU- 2009/10 R 1,270,215,795 3,339,183,469 38.04 R 631,107,631 8,171,533 77.23 2 EMM-TAR-D-2009/10 R 1,339,390,815 3,351,456,705 39.96 R 319,138,606 8,224,289 38.80 1 Average ESKOM MegaFlex 500V to 66kV-2009/10 R 944,218,465 3,351,456,705 28.17 R 152,478,321 8,224,289 18.54
Dataset-2 Base data (typical kwh & kva Tariffs): 2790 Customers Winter kwh Winter KVA Summer kwh Summer kva Total kwh Total kva 581,242,830 1,728,075 1,531,646,482 4,866,436 2,112,889,312 6,594,511
Average kwh / kva Tariff R1,5 Table -2.1 billion Incl VAT Incl VAT Percentage Eff. kwh Unit Cost Total kwh ACCOUNT TOTAL v/s Eskom EMM-TAR-C-2009/2010 R 0.7324 2,112,889,312 R 1,547,495,099.22 66.68% ethekwini "Obsolete"-TAR-C-2009/2010 R 0.7531 2,112,889,312 R 1,591,133,642.25 71.38% Tshwane -11kV Supply Scale TAR-C-2009/2010 R 0.6220 2,112,889,312 R 1,314,121,410.30 41.54% Cape Town LPU TAR-C-2009/2010 R 0.6681 2,112,889,312 R 1,411,665,858.95 52.05% CITY POWER MV LPU TAR-C-2009/2010 R 0.8097 2,136,453,979 R 1,729,988,756.40 84.28% NM Metro (PE) Tar C-2009/2010 R 0.6863 2,112,889,312 R 1,450,085,028.82 56.18% Average R 0.71193 R 1,507,414,965.99 62.02%
Table-2.2 kwh R-00 Cost kwh R/100 kwh kva R-00 Cost kva R/ kva Relative Energy Ranking to other Cities: 1 Best; 6 Worst based on R/100kWh Tshwane -11kV Supply Scale TAR-C-2009/2010 R 541,956,109 2,112,889,312 25.65 R 587,636,912 6,594,511 89.11 6 ethekwini "Obsolete"-TAR-C-2009/2010 R 561,227,772 2,112,889,312 26.56 R 819,329,795 6,594,511 124.24 5 EMM-TAR-C-2009/2010 R 618,315,898 2,112,889,312 29.26 R 705,229,871 6,594,511 106.94 4 Cape Town LPU TAR-C-2009/2010 R 641,895,773 2,112,889,312 30.38 R 596,407,612 6,594,511 90.44 3 CITY POWER MV LPU TAR-C-2009/2010 R 776,163,589 2,136,453,979 36.33 R 688,597,223 6,629,821 103.86 2 NM Metro (PE) Tar C-2009/2010 R 773,211,844 2,112,889,312 36.60 R 457,988,818 6,594,511 69.45 1 Average ESKOM-N/S Urban -2009/2010 R 508,640,943 2,112,889,312 24.07 R 305,786,383 6,594,511 46.37
Theoretically, should other municipalities add say 30% to the required percentage increases to their tariffs for 2010/2011, and another municipality, increase energy c/kwh price and decrease R/kVA prices, the new Tariff for such a municipality may relatively well be placed in the number one position regarding the weighted energy price component to its customer s on this tariff structure.
Theoretical exercise to prove how a Municipality may be in the number one position with more emphasis on energy charges assume EMM restructure tariff and others only add say 30% to both kwh and kva charges kwh R-00 Cost kwh Tshwane -11kV Supply Scale TAR-C-2009/2010 704,542,941 ethekwini "Obsolete"-TAR-C-2009/2010 729,596,103 Cape Town LPU TAR-C-2009/2010 834,464,505 CITY POWER MV LPU TAR-C-2009/2010 1,009,012,666 NM Metro (PE) Tar C-2009/2010 1,005,175,397 EMM-TAR-C-2009/2010 1,295,586,683 Average R/100 kwh Ekurhuleni 2010/2011 higher emphasis on Energy kva R-00 Cost kva R/ kva Relative Energy Ranking to other Cities: 1 Best; 6 Worst based on R/100kWh R 2,112,889,312 33.35 R 587,636,912 6,594,511 115.843 6 R 2,112,889,312 34.53 R 819,329,795 6,594,511 161.52 5 R 2,112,889,312 39.49 R 596,407,612 6,594,511 117.572 4 R 2,136,453,979 47.23 R 688,597,223 6,629,821 135.02 3 R 2,112,889,312 47.57 R 457,988,818 6,594,511 90.29 2 R 2,112,889,312 61.32 R 374,766,826 6,594,511 56.83 1 ESKOM-N/S Urban -2009/2010 R 661,233,226 2,112,889,312 31.30 R 397,522,298 6,594,511 60.28
Ekurhuleni Tariff - C
R/kVA
Metro Tariff Comparisons Account or Energy Consultants???
Highest Voltage Best Priced --- ----Tariff
Spread sheet application
Thank you!