2017 - dag.durban.gov.zadag.durban.gov.za/city_services/electricity/about us/documents... · •...

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ANNUAL REPORT

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EXECUTIVES

HEAD: Electricity UnitMaxwell Mthembu (Acting)

Deputy Head:CommercialJohannes Kekae (Acting)

Deputy Head:Technical SupportVeer Ramnarain

Deputy Head:Customer & Retail ServicesSewraj Harilal

Deputy Head:HV OperationsRaj Dhrochand

Senior Manager:Human ResourcesSthembile Tobo

Deputy Head:MV/LV OperationsRoy Wienand

EThekwini Electricity - a leader in electricity distribution providing energy for the future.

To provide electricity, public lighting and other energy services that satisfy our customers and community whilst maintaining sound business principles.

EThekwini Electricity supplies more than 740 000 customers in an area covering nearly 2000 square kilometres. This encompasses the area of the eThekwini Metropolitan Region and some adjacent areas.

Electricity for the main supply to the Metro Region is purchased at 275 000 Volts from Eskom. EThekwini Electricity also purchases electricity from Kingsburgh, Mpumalanga and Magabheni. From these points, electricity is transmitted and distributed for use by the full spectrum of customers ranging from the large industrial and commercial sector to the residential communities. EThekwini Electricity purchases just over 5% of the total energy generated by Eskom. EThekwini Electricity operates under the Electricity Regulation Act, 2006. Its policies are determined by the Metropolitan Council of Durban and the National Energy Regulator of South Africa (NERSA).

VISION

MISSION

SCOPE

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HV OPERATIONSDEPARTMENTDepartment Overview HV Planning BranchHV Projects BranchHV Substations BranchHV Lines BranchHV Cables BranchHV Network Control Branch

MV/LV OPERATIONSDEPARTMENTDepartment OverviewConstruction Planning and Works BranchMaintenance BranchLighting Planning BranchLighting Works BranchNetwork Control Branch

TECHNICAL SUPPORTDEPARTMENTDepartment OverviewCommunication Networks BranchElectrical Workshops BranchMechanical Workshops BranchNetwork Drawing Officeand Survey BranchProtection and Test BranchTechnology Services BranchSHERQ and Training Branch

CUSTOMER AND RETAILSERVICES DEPARTMENTDepartment OverviewPricing and Marketing BranchContact Centre BranchMeter Engineering BranchCustomer Services BranchRevenue Protection Branch

HUMAN RESOURCESDEPARTMENTDepartment OverviewHuman Resources Branch

COMMERCIAL DEPARTMENTDepartment OverviewAdministration & Transport BranchInformation & CommunicationTechnology BranchFinance BranchSupply Chain Management BranchProductivity BranchBusiness Risk Control Branch

GRAPHSSystem Maximum DemandEnergy Sales per AnnumGrowth of Bulk CustomersAverage MWh per Bulk CustomerGrowth of Business and General CustomersAverage kWh per Business and General CustomerGrowth of Credit Residential CustomersAverage kWh per Credit Residential CustomerGrowth of Prepayment CustomersAverage kWh per Prepayment CustomerOverall Growth of CustomersOverall Average kWh per CustomerNumber of EmployeesEnergy Sold per EmployeeFree Basic Electricity Claims per MonthAverage Monthly Free Basic Electricity ClaimsDistribution of Energy SalesDistribution of Revenue from SalesDistribution of ExpenditureNew Connections per Region

ANNUAL FINANCIAL STATEMENTSStatement of Financial Position at 30 June 2017Statement of Financial Performance for the year ended 30 June 2017Statement of Financial Changes in net assets for the year ended 30 June 2017Notes to the Financial Statements or the year ended 30 June 2017

STATISTICAL DATACustomer Base StatisticsMaximum Demand andEnergy Sales per annum

C O N T E N T S

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EThekwini Electricity Annual Report | 2016/17

The National Energy Regulator of South Africa (NERSA) approved our application for an increase of 7.64% for

our customers on active tariff structures and 8.64% for our customers who remain on our obsolete tariffs.

The unit noted a positive increase of 3.06% in the energy sold. This is good news as it builds on the 1.32%

increase seen in the last financial year. This news bodes well for the unit and the economy of the region when

compared to the negative downward trend in recent years.

Eskom Bulk electricity purchases accounted for 67% of the total expenditures. In a continual effort to keep

our assets in good operating order, over R1 billion, or 8%, was spent in the repair and maintenance of

electrical infrastructure. The balance was spent on human resources, general expenses and contracted

services.

I’m excited to note that that the Smart Metering and Asset Management projects are progressing well. A

phased 1 implementation is currently underway, whereby the new metering technology is being installed

and tested.

The backbone of our electrical network is being continually reinforced with work on various new substations

in progress and expected to come on line in the coming years. This will add an additional strength to our

network and reassure our security of supply to our customers.

The Unit continues to make advancements in the provision of electricity to informal settlements. Despite the

enormous challenges faced, my team was able to connect just over 15 000 new customers onto our grid.

This is a notable achievement and testament to the Unit’s commitment to the City’s Vision 2030 and to our

people.

I would like to thank all the staff of the Unit for their efforts during year. Their continued contribution and hard

work brings eThekwini one step closer to being Africa’s most caring and livable city.

HEAD’S OVERVIEW

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The 2016/2017 financial year will be remembered as a year which was as trying as it was eventful. The unit underwent significant changes which tested our morale as a whole. I am glad to say that we emerged stronger, more focused and more determined to deliver our essential service to the citizens of Durban.

HEAD: Electricity UnitMaxwell Mthembu (Acting)

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The HV Operations Department is responsible for the planning, construction, operation and maintenance of eThekwini Electricity’s primary network of high voltage cables, lines and substations. The projects undertaken by this Department are to provide for increased bulk capacity and to improve the reliability of the regions HV electricity supply. Accordingly they are typically large, high cost projects which require considerable time and attention to satisfy environmental legislation in the first instance and then 30 months or more in the construction phase. Our Department prides itself in reliable, state of the art solutions for the delivery of high voltage power from our intake points to our customers and secondary networks.

Progress on existing projects• 132/11 kV Cornubia 1 Substation – Design proposal stage• 32/11 kV Inyaninga 1 Substation – Preliminary design stage• 132/11 kV Inyaninga 2 Substation – Preliminary design stage• 132/11 kV Isipingo Substation – Preliminary design stage• 132/11 kV Morelands Substation – Preliminary design stage• 132/11 kV Moriah Substation – Preliminary design stage• 132/11 kV Longcroft Substation – Final design stage• 132/11 kV Sibiya Substation – Preliminary design stage• 132/11 kV Verulam Substation – Land acquisition stage• 132 kV Oil Filled Cable Replacement (CBD) – Preliminary design

stage• 132 kV Oil Filled Cable Replacement (Durban South) – Preliminary

design stage• 132 kV Verulam Switching Station – Project incorporated into

Phoenix North Switching station• 275/132 kV Bellair Substation – Design proposal stage• 275 kV Durban North Substation Yard Upgrade – Preliminary

design stage• 132/11 kV Waterfall Substation Yard Upgrade – Preliminary

design stage• 275 kV Durban South Transformer replacement and Switchgear

Upgrade – Final design stage• 132 kV Bus Sections Preliminary design stage on a few• 132/11 kV Redfern Substation – Land acquisition stage• 132/11 kV Roberts Substation expansion – Land acquisition

stage• 132 kV Phoenix North Switching Station – Final design stage

Key challenges• Delays in obtaining clearance for new high voltage infrastructure

in the immediate vicinity of King Shaka International Airport from Civil Aviation Authority.

• Expansion of high voltage networks in the northern and western suburbs are dependent on Eskom strengthening its network to the City which risk delays due to resource constraints at Eskom.

Achievements• Updated geographical load forecasting model• High voltage master plan – 90 % updated

HV OPERATIONS

HV PLANNING BRANCH

OVERVIEW

The HV Planning Branch is responsible for planning the unit’s primary network of high voltage cables, lines, switching stations and substations. The timelines for providing HV infrastructure spans several years and therefore necessitates careful planning so as to ensure that there is sufficient HV infrastructure in place to meet the demand of all customers in a sustainable manner. The HV Planning Branch is the custodian of the transmission network master plan which is inclusive of a 20 year capital program that allows for HV network development, reliability requirements and refurbishment requirements. Analysis of the transmission network is carried out using system analysis software for network load flows, voltage stability and fault level analysis. Key initial capital project life cycle processes; namely application for Council funding, acquisition of land and servitudes, environmental impact assessment approvals and completion of preliminary designs are also completed by the branch.

HighlightsHanded over the following to HV Projects Branch for execution:• 32/11 kV Woodlands Substation upgrade• 32/11 kV Alice Street Substation upgrade

HV PROJECTS BRANCH The HV Projects Branch is responsible for the detailed design and specification of equipment and management of major system reinforcement projects. There were more than 25 major projects in progress during the 2016/2017 year. The status of the projects at the end of the period under review is as follows:

• Austerville 132/11 kV Substation: New 132/11 kV substation aimed at relieving the aged 33/11 kV substations in the Jacobs area and further reinforcing the 11 kV network. Detailed civil design process in final stages.

• Avoca 132/11 kV Substation: The commercial and residential load demand in the area has increased and the firm capacity needs to be upgraded from 30 MVA to 60 MVA. Two new 30 MVA transformers have been procured and expected to be delivered in the next financial year.

• Bulwer 132/11 kV Substation: The commercial and residential load demand in the Glenwood area has increased and the 11 kV system needs to be reinforced. Civil works in advanced stage and procurement of all critical equipment is in progress.

• Durban South 275 kV Bus Section: Required to improve the security of supply at this strategic substation. Installation of plant and equipment pending network constraints.

• Greenbury 132/11 kV Substation: The commercial and residential load demand in the area has increased and the firm capacity needs to be upgraded from 30 MVA to 60 MVA. Commissioned.

• Grosvenor-Dalton Road 132 kV Cable replacement: Replacement of old oil filled cables spanning 5,3 km with XLPE cables. Cable installation is in progress.

• Jacobs 132/11 kV Substation: Addition of the 132 kV GIS to provide switching flexibility and reinforce the Jacobs 132 kV network by creating links between HV substations in the area. Site works to commence.

• Jameson Park 132/11 kV Substation: The commercial and residential load demand in the area has increased resulting in the need to upgrade the existing 33/11 kV substation and replace it with two new 30 MVA 132/11 kV transformers and associated plant and equipment. Civil works and installation of the GIS completed. Cable works underway.

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• KE Masinga 132/11 kV Substation: The commercial and residential load demand in the city area has increased and the 11 kV system needs to be reinforced. Major plant installed. Cable works in progress.

• Kingsburgh 132/11 kV Substation: The commercial and residential load demand in the area has increased and the firm capacity needs to be upgraded from 30 MVA to 60 MVA. Detailed civil design in progress.

• Klaarwater 275/132 kV Substation: Upgrade current four 250 MVA transformers to 315 MVA due to the increase in load. Procurement for the replacement of the 4 × 250 MVA 275/132 kV transformers and associated equipment completed. First transformer commissioned.

• Kloof 132/11 kV Substation: New 132/11 kV substation aimed at replacing the ageing Kloof 33/11 kV Substation and increasing reliability in the area. Detailed civil design in progress.

• La Mercy 132/11 kV Substation Reinforcement: The commercial and industrial load demand in the area has increased and the firm capacity needs to be upgraded from 30 MVA to 60 MVA. Additional transformers have been installed. Commissioning to commence.

• Mahogany Ridge 132/11 kV Substation: The commercial and residential load demand in the Westmead and Mahogany Ridge areas have increased and the 11 kV system needs to be reinforced with additional 60 MVA firm capacity. Detailed civil designs and procurement of services completed. Site works to commence shortly.

• Ottawa 132/11 kV Substation: The commercial and industrial load demand in the area has increased and the firm capacity needs to be upgraded from 30 MVA to 60 MVA. Additional transformers have been delivered. Installation and commissioning to commence.

• Phoenix Industrial 132/11 kV Substation: Replacement of the ageing and unreliable 11 kV switchgear. Commissioned.

• Pinetown 132/11 kV Substation: The commercial and residential load demand in the Pinetown, New Germany and Cowies Hill areas has increased and the firm capacity needs to be upgraded from 30 MVA to 60 MVA. Commissioned.

• Plangweni 132/11 kV Substation: Due to load growth the existing substation is required to be upgraded from 30 MVA to 60 MVA. First phase completed, second phase underway.

• Rossburg-Congella 132 kV Cable Replacement: Replacement of

old fluid-filled cables spanning 3 km with XLPE cables. Cable installation is in progress.

• Rossburgh 132/11 kV Substation: New 11 kV capacity to replace the 33 kV network that is being phased out. Civil works completed. Equipment to be delivered shortly.

• Springpark 132/11 kV Substation: The commercial and industrial load demand in the Springpark area has increased and the 11 kV system needs to be reinforced. Civil works in final stages and all plant has been ordered.

• Stockville 132 kV Switching Station: New switching station proposed to feed the new proposed substation in the Mahogany Ridge and Kloof areas. This switching station will also feed the existing Westmead, Marrianridge, Hillcrest and Waterfall Substations which will eliminate security of supply risks and operational limitations which apply to existing circuits. Detailed civil designs and procurement of services completed. Site works to commence shortly.

• Umdloti Beach 132/11 kV Substation: The commercial and residential load demand in the area has increased and the firm capacity needs to be upgraded from 30 MVA to 60 MVA. Transformers previously relocated. New replacement transformers have been installed. Commissioning underway.

• Umlazi 132/11 kV Substation: New 11 kV switchboard has been procured. Procurement process for the services to rehabilitate the switchroom after fire damage underway.

• Underwood 132/11 kV Substation: The commercial and residential load demand in the Pinetown area has increased and the 11 kV system needs to be reinforced. Civil works in advanced stages. All plant has been ordered.

• Verulam 33/11 kV Substation: The two aged transformers need to be replaced with new one to improve security of supply in this area. Manufacturing of the transformers underway, delivery expected in the next financial year.

• Westmead 132 kV Bus Section: Required to improve the security of supply at this substation. Detailed design underway.

• Replacement of the old 11 kV withdrawable switchboards with new fixed pattern type at Alice Street, Bayhead, Esplanade, Isipingo, Prospecton and Toyota substations: Replacement plans completed. Detailed designs for temporary switchboards to facilitate the replacement are in progress.

Future Plans • Continue with the acceleration of the replacement of fluid-filled

underground cables constituting the bulk of the city’s cable network.

• Prioritise completion of all projects that are in the final commissioning stages.

New Technologies • Partial discharge monitoring system for 132 kV gas insulated

switchgear (GIS) boards.

• Distributed temperature sensing (DTS) system for critical 132 kV cable circuits.

Key Challenges • Delays due to theft of materials such as copper at brownfield

sites.

• Increased trend of communities rioting for increased quotas of local labour.

• Network constraints dictate the availability of existing plant and sometimes affect progress, especially at brownfield sites.

HV SUBSTATIONS BRANCHThe HV Substations Branch is responsible for the operation and maintenance of equipment that has voltage ranging from 11 kV up to 275 kV. There are four National Key Point substations that import energy from Eskom at 275 kV. The 275 kV is then transformed to 132 kV, 132 kV transformed to 33 kV and 11 kV, and 33 kV is then transformed to 11 kV and in few cases to 6,6 kV.

The types of equipment that the HV Substation Branch is responsible for includes, but not limited to, busbars, capacitors, circuit breakers, instrument transformers, isolators, lightning masts, power line carriers, power transformers and surge arresters.

HV OPERATIONS

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Highlights • The Branch performed fairly well on safety with the disabling

injury frequency rate (DIFR) being 1,86 which is below that of the Unit’s overall DIFR for 2016/17.

• The condition assessment undertaken on the eThekwini Electricity’s high voltage power transformer fleet under contract E.9030 revealed that a number of transformers require oil conditioning work with the aim of reducing the short term risk of failures due poor oil condition and also to extend the remaining life of these transformers. In order to address this, the Branch successfully awarded the oil regeneration and oil purification contracts. The Branch also made significant progress with the procurement of an online transformer drying equipment to ensure that transformers are dried out without having to take them out of service, thereby ensuring continued equipment availability. These interventions are expected to improve the condition of the power transformers thereby minimising the risk of failure.

• Significant progress was made in the compilation and implementation of some of the once-off and periodic Network Reliability Programmes (NRPs).

• The strategic spares policy document was finalised. The intention of this document is to identify and fill gaps in spare requirements in order to ensure that the Branch responds timeously to any equipment failure in the network. The focus going forward is to ensure that the identified spares are procured.

• The return to service of a strategic 275 kV Hector Bay at Klaarwater Substation.

• The decommissioning of old 33 kV substations, namely the Merewent Substation and Sydenham Substation.

• The Branch managed to fill two critical posts, namely the Engineer post and the Administration Technician post.

• The Branch also made significant progress with staff development. All the incumbents of the Electrician positions are now competent and two of the Electricians also attained their 11 kV Switching Authorisations. This will assist the Branch in terms of efficient maintenance work planning and execution.

LowlightsThe incidents of copper theft in HV substations are on the rise and they are threatening the functionality of substations.

• The delay in the installation of CCTV cameras in substations to

deter the prospective copper thieves.

• The increase in the number of 132 kV outdoor circuit breaker failures equipped with hydraulic mechanism.

• The catastrophic failures of T21/4 275/132 kV power transformer at Klaarwater Substation and the 11 kV switchgear at Alice Street and Umlazi substations.

ChallengesThe oil circuit breakers are of old technology that render themselves uneconomical to maintain and unsafe to operate. Consequently they are gradually being phased out and replaced by vacuum and gas circuit breakers. However there is still a large number of oil circuit breakers present in substations especially at 11 kV and also at 33 kV. As a result more resources (staff, labour, material, and time) are spent on maintaining this type of switchgear. There are frequent problems associated with their old age such as shortage of spares, mal-operation and severe failures. The decision was taken to phase out 33 kV plant and equipment because of age and other associated problems such as unavailability of spares and multi-transformation. The decommissioning of such plant and equipment has been made possible by construction of new 132/11 kV substations.

The difficulty in filling a number of vacant crucial positions within the Branch also continues to be a challenge. This is limiting the Branch’s capability in undertaking maintenance work effectively and efficiently and thus exposes the equipment to increased risk of failure.

Future Plans• Significant progress was made in the drafting of Service Level

Agreements (SLAs) with the Original Equipment Manufacturers (OEMs). In 2017/2018, the Branch intends to have these SLAs finalised and signed with the OEMs. This will ensure that specialist skills are provided by the OEMs when required to undertake planned maintenance and to respond timeously to breakdowns.

• Filling of critical vacancies which will enhance the productivity and effectiveness of the HV Substations Branch.

• Securing of additional posts through the proposed organogram changes which will allow the HV Substations Branch to significantly reduce the maintenance backlog.

• To continue with the compilation and implementation of once-off and periodic Network Reliability Programmes (NRPs).

• The four replacement transformers, namely Clermont T2B,

Congella T2B, Ntuzuma T1A and Westmead T1A have all been delivered to respective substations and these are targeted for commissioning in 2017/18.

• The Branch will be fast tracking the introduction of online monitoring for some strategic equipment such as transformers and gas insulated switchgear.

• The Branch will also embark on the bulk replacement of the problematic 132 kV outdoor circuit breakers equipped with hydraulic mechanism.

HV LINES BRANCHThe HV Lines Branch is responsible for the operation and maintenance of the high voltage overhead lines network consisting of 141 circuit kilometres of 275 kV, 478 circuit kilometres of 132 kV and 13 circuit kilometres of 33 kV overhead lines.

Key Priority Projects• Continued with detailed condition assessment for the

determination of the remaining life of existing 132 kV and 275 kV overhead lines and needs analysis for refurbishment.

• Completed the procurement of new contracts for the refurbishment and the construction of 132 kV and 275 kV overhead lines.

Refurbishment of the following assets:

• Lotus Park - Umbongotwini 132 kV Double Circuit Line: Painting of structures

• Lotus Park - Isipingo 132 kV Double Circuit Line: Painting of structures

• Klaarwater - Umgeni 132 kV Double Circuit Line: Painting of structures

• Klaarwater - Woodlands 132 kV Double Circuit Line: Painting of structures and re-insulation

• Klaawater - Quarry 132 kV Double Circuit Line: Re-insulation

• Quarry - Bellair 132 kV Double Circuit Line: Re-insulation

Upgrade of the following assets:

• Klaawater – Hillcrest 132 kV Double Circuit Line upgrade the section between Tower 31 to 57 from single to twin ELM conductor which increase capacity from 100 MVA to 206 MVA, in progress.

HV OPERATIONS

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EThekwini Electricity Annual Report | 2016/17HV OPERATIONS

• Klaawater - Umgeni 132 kV Double Circuit Line upgrade with High Temperature Low Sag (HTLS) Conductor which increase capacity from 206 MVA to 350 MVA, in progress.

Relocation of the following assets:

• Relocation of Tower 2 on Cornubia – Sunningdale 132 kV Line to accommodate the construction of the new N2 fly over bridge, north of Gateway interchange to allow additional traffic flow from the new Cornubia Shopping centre development to Umhlanga as well as the Go-Durban project.

• Conducted feasibility studies and design for the relocation of Tower 18 to 20 of Parlock - Mzinyathi 132 kV Double Circuit Line to accommodate the construction of the new Westridge Mall in Newlands.

Challenges• Encroachment of asset servitude and corridors still remain the

highest risk to the infrastructure: This challenge needs proper enforcement of Municipal laws and policies.

• Illegal electricity connections making use of high voltage towers to attach wires for elevation hence delaying/preventing inspection and maintenance of these infrastructures. Many cases officials are intimidated and threatened.

• Illegal dumping preventing access for inspection and maintenance.

• Difficulty in meeting employment equity targets hence results in an increase in vacancies: A program to train and upskill personnel, specifically the target group as per the employment equity plan will need to be developed and implemented urgently.

• Suitable off-road (4×4) vehicles are still a challenge as the access roads are becoming more difficult to negotiate with the encroachment of informal settlements and developments within the power line corridors: This will be mitigated by working with the City Fleet Unit to procure suitable vehicles.

Successes Received • Four contractors were appointed for the construction and

refurbishment HV line assets, with the inclusion of the Contractor’s Participation Goal sub-contractors. This contract has now opened the market for more participation of local contractors on the previously isolated market of HV overhead lines work.

• The upgrade of Klaarwater - Umgeni 132 kV Double Circuit Line has commenced. This project saw the use of High Temperature Low Sag (HTLS) conductors in eThekwini Electricity for the first time. The use of HTLS conductors provides the increased capacity from 206 MVA to 350 MVA without having to replace the towers which would have been the case if standard conventional AAAC conductors were used, thereby saving the Municipality time and money for the much needed electricity supply re-inforcement to the inner-west (Pinetown) region.

Future Focus

• Conduct research and development of new technologies such as the implementation of Line Monitoring System that will provide online data to allow immediate and better decision to be made on the management and operation of the high voltage network.

• Conduct research and development on the performance and operation of high voltage lines infrastructure during extreme weather conditions as seen recently.

• Focus on access roads maintenance and vegetation management plan implementation.

• Continue with asset construction and refurbishments project.

• Participate on national and international technical platform to learn and share knowledge with other utilities.

HV CABLES BRANCHThe HV Cables Branch is responsible for the operation and maintenance of 132 kV and 33 kV underground power cable assets which form part of the primary network. The construction and maintenance of 11 kV cables within the boundaries of the major substations is also the responsibility of the Branch. The construction of 132 kV cables is managed by the HV Projects Branch and handed over to the HV Cables branch on commissioning.

Challenges and Mitigation

The maintenance of pressurised gas and fluid-filled cables continues to be a problem. A number of leaks and faults had to be located and repaired on several strategic cables which have now been in service in excess of 40 years. Several 33 kV circuits have already been decommissioned with the new 132 kV substations being commissioned, namely SAPREF and Mondi which were fed from Merewent 132/33 kV substation which are now redundant. The commissioning of 132 kV Kingsburgh Substations led to the decommissioning of the aged

Umbogintwini-Doonside, Winkelspruit and Winkelspruit Traction 33 kV feeders.

The focus going forward will be to decommission the problematic 33 kV gas-filled cables from Mayville Substation to Jameson Park Substation and from Sydenham Substation and Huntleys Hill Substation.

The replacement of aging fluid-filled 132kV cables feeding the city grid started in early 2017 with four circuits due to be completed by the end of 2017.

A number of cables had to be relocated to suit major development projects such as the bus rapid transport system.

The laying of new fibre networks, new infrastructure and repairs to existing services by mechanical plant has resulted in damage to HV cables. Several interventions have been attempted to minimise the damage. This up-swing in the construction sector also resulted in additional cable damage requiring immediate attention to restore security of supply.

Two 11 kV switchboards in the major were destroyed by fire. This required temporary switchboards and ring main units to be cabled to the transformers for emergency supply at Alice Street Substation and Umlazi Substation.

Theft of copper transformer loop cables is of concern as the cables are being stolen whilst the circuit is being repaired or awaiting replacement of transformers.

All lower level posts such as Small Plant Operators and Electrical Assistants were filled this year.

New Technologies

The new 132 kV XLPE cables have been designed with conductor and metallic sheath water blocking capabilities which eliminate the replacement of long lengths of cable due to cable damage of faults in waterlogged areas. The introduction of optical fibre cable laid alongside the existing cable will monitor temperature variances along the length of the cable.

In addition to the above, three 132 kV substations, namely Ridgeview Quarry, Mondi and Sapref substations were commissioned in the last financial year. Ridgeview will alleviate the loads from Huntleys Hill 33/11kV substation in the near future. This will eventually allow the decommissioning of the problematic gas filled cables feeding Huntleys Hill.

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Numerous ageing 132/11 kV transformers are being replaced by modern plug-in termination bushings which require the PILC cables to be replaced with XLPE cables. Oil switchgear being replaced with Vacuum or Gas switchgear and the cables are being replaced with accordingly.

Challenges

The new contract E.9436 was advertised recently and should be awarded in the in the second half of 2017/18. Serving tests, location and repair is one of the key areas in this contract which will ensure that the integrity of HV cables is intact to eliminate future faults through water ingress and dielectric breakdown of electrical insulation. Training of Electricians to become proficient in HV cable maintenance, jointing and terminating up to 132 kV and the introduction of a skills development plan which has been implemented in the latter of this year. The Branch has also advertised a number of posts in order to address the shortage of key technical staff.

HV NETWORK CONTROL BRANCHThe Network Control Branch comprises of four Divisions: HV Network Control, System Performance, Network Management and Control Systems.

The HV Network Control Division is responsible for the safe operation and efficient performance of the High Voltage Network, which incorporates a 24-hour, manned HV network control centre with remote control and alarm facilities. EThekwini Electricity’s primary transmission network, being the supply from 275 000 kV down to 6 600 kV, is monitored and controlled from the HV Control Room using a sophisticated Supervisory Control and Data Acquisition (SCADA) system.

The System Performance Division is responsible for network optimisation, ensuring the HV network can meet the demand for electricity, statistical reporting and quality of supply to the bulk supply points for the 11 000/6 600 kV distribution system and large industrial customers that are connected directly to the HV network.

The HV Network Management and Control Systems Divisions are responsible for the installation and maintenance of systems that are required for the efficient monitoring and control of the Unit’s critical infrastructure.

Highlights and Lowlights

The HV Network Control Division is looking forward to moving to the newly constructed HV Network Control Centre. The new Control Centre will have state of the art facilities including digital screens to manage the network, moving away from the HV Network diagram mimic board.

• The Branch has successfully deployed a four panel video wall in the HV Control Room to display the interconnected diagram of the HV Network. This allows operators to have a clear oversight of the entire HV Network of eThekwini Electricity and will facilitate the transition from the mimic board to the electronic diagram.

• To improve quality of supply to customers, the Branch has commenced a drive to roll out remote master trip resets which will facilitate the remote restoration of supply, hence reduce outage durations.

• The Branch has increased its SCADA visibility of HV substations to 99%; up by 2% since last year.

• Through the Internet of Things technology, the Branch has developed a plan to extend the grid visibility. This has been successfully piloted and will be rolled out in the near future.

New Technologies

• The Branch is currently putting a tender together for the latest technology power quality instruments and advanced software to manage power quality near real time to improve situational awareness and decision making in the HV Network Control Room.

• The Branch currently maintains a schematic view of the HV network and is currently developing a model for the geographic representation of the

HV network. The existing schematic map is useful for switching purposes, however it contains no geographic references. There is a need for the same functionality to be supported in a view that has geographic references. Geographic references are important for purposes such as identifying the location of faults, crews, field work orders, specific network assets, and for public information which is generally geographic centric such as location of outage scheduling. A geographic view of the network supports the ability to overlay the real-time topology network on commonly available mobile maps such as Google Maps.

• The Branch is investigating the introduction of switchplan module to streamline electrical switching operations for improved outage restoration times and record keeping. Switchplan is designed to enforce and to document the audit trail of the life cycle of a switch plan/procedure, as it transitions through eThekwini Electricity’s structured internal processes.

Challenges

• The shortage of HV Control Officers who are required to monitor and control the HV Network continues to be a challenge. These posts require that suitably qualified persons undergo extensive training in managing and operating electrical networks before they can deemed competent to operate on their own. These skills are in demand nationally given that Eskom and other municipalities compete for a very small pool of these scarce skilled employees.

HV OPERATIONSHV OPERATIONS

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MV/LV OPERATIONSDEPARTMENT

OVERVIEW

The MV/LV Operations Department is responsible for the planning, construction, operation and maintenance of the Unit’s medium and low voltage network. The Department plays a major role in connecting new customers to the electrical grid, thus helping to spread electrical services to all sectors of the Community. The Department is also responsible for providing public/street lighting technologies into the City. Further to the above roles, the Department manages and controls all medium to low voltage substations. Advancements in technology with the benefit of cost/operational optimization is driving significant changes in the electricity supply industry and the MV/LV Department is strategically embracing these advancements to improve the overall operation, stability and reliability of the network.

CONSTRUCTION PLANNING & WORKS The year was a very challenging one. The City introduced a new software package, JDE-Enterprise One (JDE-E1), to comply with National Treasury’s standard chart of accounts (mSCOA). The migration from our previous package Ellipse to JDE-E1 was not easy and had a few hiccups. Some of these include delays in procuring and obtaining material and delays in payments to contractors. This constraints hampered service delivery. Protests and work stoppages added to delays in implementing projects. With all the obstacles staff and contractors put in a lot of effort to satisfy our customers.

The Planning and Construction Branch has many vacant posts, and the services of external suppliers supplement our staff in implementing our infrastructure projects and providing services to the community. The efforts of all our staff and contractors are greatly appreciated 120

Y E A R S

OF ELECTRICITY

- CELEBR

ATIN

G EX

CELLENCE -

A N N I VE

RS

AR

Y

120 years ago, at 6:30Pm

on 22 June 1897, the Mayoress

of Durban, Mrs George Payne

switched on the first electric

lighting system for Durban.

This marked the start of an era

that has seen Durban

Electricity grow from a

small section within the

Borough Council to the

largest metropoltan electrical

undertaking in South Africa.

The ongoing electrification of formal, informal and rural settlements has reduced the backlog of dwellings without electricity from 26.24% to 24.83%. With all the challenges around us we electrified 11,424 prepaid connection. A grant of R 31m from the Integrated National Electrification Program funded 2,240 of these connections. A lot more residents living in eThekwini can now enjoy a better life.

Electricity infrastructure was also expanded to supplying new commercial, industrial and non-prepaid residential customers. Some of the major projects include:

• Installation of new infrastructure to new customers eg. Cornubia Mall, Dube Trade Port

• Commissioning of new 11 kV distribution substations

• Electrification of informal settlements and transit camps

• Electrification of Cornubia Housing project

• Replacement of ageing medium voltage switchboards

• Reinforcement of the electricity supply in Mariannhill, Bellair, Lamontville, Inanda

• Relocation of services for the Bus Rapid Transport

MAINTENANCE PLANNING & WORKS BRANCHThe Maintenance Planning and Works Branch is responsible for inspection, maintenance planning and maintenance implementation on all medium and low voltage apparatus as well as repair of associated faults on the electrical distribution network within the municipal supply area.

This Branch comprises of six regional Maintenance Works Depots and a Maintenance Planning Division based at the Electricity Headquarters. The Branch consists of a Senior Manager, Managers, Specialist Engineer, Engineers, Technicians, Electricians and the various levels of administration and assistant staff.

The maintenance of eThekwini Electricity’s distribution network is vital in ensuring the integrity and reliability of supply to our large customer base. This Division prides high standards and strives to comply with various national standards and the Power Quality Charter in order to meet the requirements of customers.

With the ever-growing and ever-aging Electricity Unit’s distribution network, the Maintenance Planning Division is constantly seeking strategies to better manage and maintain all the assets installed on the distribution network to ensure reliable electricity supply to the customers of eThekwini Electricity.

Highlights/Lowlights

The major challenge facing the Division is the growing pandemic of theft and vandalism of electrical infrastructure. The growing global need for non-ferrous metals such as copper has resulted in high volumes of theft of electrical infrastructure both locally and abroad. The net result for this Division is that theft, vandalism of electrical infrastructure and high faults due to aged network have significantly increased the workload hence maintenance budgets had to be considerably increased, supply restoration times have increased and the reliability of the electrical network becomes compromised. The unavailability of material/spares to repair faults has affected the performance of the Branch.

Challenges with procurement and servicing of vehicles and trucks cause delays and affect productivity of the Branch. The delay in training of staff to operate mobile elevated working platforms has affected production rate.

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EThekwini Electricity Annual Report | 2016/17MV/LV OPERATIONS DEPARTMENT

Theft of copper conductors and damaging of the infrastructure (such as Pole, ground CDU, Mini-substation hits, cable damage due to illegal digging) by third parties compromise the quality of supply to our customers. This leads to more unplanned outages that must be prioritized resulting to backlogs in preventative maintenance which is undesirable.

The rapid growth of the electrical network coupled with the shortage in human resources and an increase in failures, has resulted in significant backlogs of planned and preventative maintenance work. The Division has undertaken an aggressive recruitment drive, during the year under review to bolster its internal resources and reduce the reliance on external service providers. Various appointments were made at all levels and the staff vacancy levels have significantly reduced. The technical staff will however, need to go through a mandatory pre-competency period before they are deemed to be fully functional and are able to work independently.

Projects Undertaken

• Copper clad steel earthing conductor project Year on year, the magnitude of copper theft has been increasing and eThekwini Electricity’s substations have been the victims of vandalism. The fundamentals of an electric circuit for distribution require a well-defined electrical system with earth reference. The removal of this reference poses significant risk to eThekwini customers for a number of reasons (Health and Safety, Electrostatic and Lightning Protection). The Branch has spent R1.5 million to procure Copper Clad Steel (CCS) and in particular, discoloured CCS (Camo), as a suitable replacement for earthing. The Maintenance Technicians are currently in the process of installing this conductor to hot spot area. The Branch has a proactive plan to install CCS through the distribution network.

• Replacement of aging overhead line switchgear The Division has replaced over 30 auto-reclosers and over 20 sectionalisers in 2016/17 financial year with the aim of not only replacing due to age and reliability but Smart Grid and most importantly public safety. The current auto-reclosers and sectionalisers are equipped with sensitive earth fault (SEF). For the next two years, the Division has planned to replace all mechanical auto-reclosers and sectionalisers.

• Condition based preventive maintenance The Engineering Support Division has procured four (4) extra partial discharge detection (with TEV and Ultrasonic measurements) equipment from EA Technology. This Division is in the final process of

procuring Auto-recloser and Sectionalizer control box testers and two (2) circuit breaker analysers (CBA). The Branch’s Technicians and Engineers are currently being trained by the supplier. The Division has made available R 3.5 million for year 2017/18 to procure 2 sophisticated infrared cameras to detect hot spots and SF6 leaks in the distribution network equipment which forms part of condition monitoring.

Challenges for Forthcoming Year

Reyrolle (LMS, LMT/R), Hawker Siddely (R41, Type V, V41, VBA, VSI) and GEC Power (Oil, Brush gear, Jowison & Phillips) switchgear have reached end of their life and availability of spares and skills to undertake repairs and maintenance are a challenge. This means a replacement plan and capital budget should be in place already. This replacement plan will include replacement of MV underground cables, upgrade of Pad mounted transformers and refurbishment of overhead lines. The replacement of these assets will increase the reliability of the distribution network.

LIGHTING PLANNING BRANCHThe planning, design, inspection and maintenance planning of the public lighting infrastructure for the eThekwini Municipality is undertaken by the Lighting Planning Branch. This includes the planning and design of new lighting installations, upgrading of existing lighting infrastructure, maintenance and maintenance planning of existing installations, research and investigation into new lighting technologies and bulk lamp replacements.

The Lighting Planning Branch comprises 3 Divisions, which are as follows:

• Lighting Planning & Design

• Lighting Research & Investigation

• Lighting Maintenance Planning

The annual operating budget of the Branch is approximately R75 million, which includes a provision of R50 million for street light consumption costs within the municipal area.

The remaining R25 million is allocated to salaries, allowances, general expenses, repairs and maintenance. Repairs and maintenance accounts for 80 percent of the general operating budget and this is further broken down into planned lighting maintenance, bulk lamp replacement and pole painting. There are currently approximately

213 000 streetlight installations, 250 parks, 12 beaches, 17 subway lanes, 31 swimming pools and 93 stadia and sports fields for which the municipality is responsible and provides lighting for.

The Branch has filled 100% of posts within its structure and continues to work on building their skills and experience. The long-term goal of the Branch are to implement modern, energy efficient and effective public lighting systems that are vandal proof and systems that could be easily monitored and controlled.

Lighting Planning & Design Division:

Planning and design of capital projects form a major part of the Branch’s responsibility The annual capital budget for the financial year under review was approximately R5m and projects were planned for upgrades from conventional technologies to LED streetlighting, major route improvements, new major routes, lighting of parks and sundry lighting. Various grant funding options are being evaluated for the installation of LED streetlights to replace the 80W mercury vapour luminaires in residential areas, 150W high pressure sodium (HPS) luminaires on secondary roads and 250W high pressure sodium luminaires on main arterial roads. These funding option include EEDSM, Department of Energy, Swiss and German donor funding. Other major projects for the current and future financial years include; Bridge City to Pinetown on the Integrated Rapid Public Transport Network (IRPTN) route, Illovu Road (Kwamashu), Umgeni Road/N2 Interchange, completion of MR 577 (Kwadebeka), School Road (Verulam), M4 Ruth First Northern Freeway, Inanda Road (Waterfall), LED floodlighting and Solar lighting for ablution facilities in informal settlements. The lighting for all High Voltage (HV) substations is currently being audited and upgraded in a phased approach from HPS (orange light) to LED (white light) to cater for the requirements of CCTV cameras. Other significant projects include:

• Redesigned street lighting circuits by removing 9m gum poles and replacing with 9m steel poles and concreting of underground cables where large scale theft and vandalism have occurred in the following areas: Shallcross, La Mercy, Tongaat, Bellair, Verulam and Isipingo.

• Installed 7% LED streetlights mainly in the 36W range to replace the 80W HPMV lamps as part of our commitment to reduce our carbon footprint.

• The following major capital projects were completed; Harinagar Road, Outer Circuit Road, Esselen Crescent, Rose Height Road, Harry Gwala Road, High Terrace, Embuthweni Road, Skyridge Circle, Sishi Main Road, Umdloti Link Road, Izichwe Road,

9


Shezi Road, Inanda Newtown Sportsfield, Cornubia Retail Park, Matabetula Road and Umkumbaan Road.

Many of the projects undertaken by the Branch involves liaison and interaction with other units within the municipality and external entities such as Roads Provision, Architectural Department, Parks, Leisure & Cemeteries, Roads and Stormwater, Strategic Projects, Tongaat Huletts and a host of developers and external electrical consultants. The Branch plans and designs conventional and special lighting projects for these entities, and takes into account any specific requirements for each of them.

Arguably, the most significant change was the implementation of the LED technology strategy across the whole spectrum of the luminaire range. In other words, no older technology HID luminaires will be used, with the exception of 400w HPS and HQI streetlights. By implementing this strategy, we plan to greatly reduce our carbon footprint.

Plans are also underway to replace many of the ageing high mast structures such as 15m, 18m, 30m, 40m and 45m in various areas such as Lamontville, Blue Lagoon, Durban CBD, Mustering Fields, Kings Park Diving Pool and Phoenix Industrial Park.

Lighting Research & Investigation Division:

The Lighting Research and Investigation Division is responsible for all activities related to the Electricity Procurement Forum as well as the Bid Specification, Bid Evaluation and Bid Adjudication Committees. The following contracts totaling R196 820 000 were handled by this Division:

E.9388: Supply, delivery and off-loading of steel frames, galvanised steel enclosures, Photo-Electric Control Units (PECU) boxes and concrete bases for streetlight switch pillars. R4M

E.9312: Supply, delivery and offloading of photoelectric control units and associated items. R6M.

E.9362: Supply, delivery, off-loading and stacking of fibre glass street-lighting poles. R0.72M

E.9320: Supply, delivery and off-loading of decorative Christmas lighting material for Dr Pixley KaSeme Street (formerly West Street) and Dr Yusuf Dadoo Street (formerly Grey Street). R8M

E.9412: Inspection and Maintenance of High Masts with Raising and Lowering Mechanisms. R4M

E.9555: Painting of steel poles, arms and attachments. R2M

E.9199: Supply, delivery, off-loading and stacking of pre-stressed and reinforced concrete poles. R8M

E.9364:Removal and disposal of potentially hazardous lamps. R0.6M

E.9194: Supply, delivery and off-loading of street light and floodlight luminaires. R140M

E.9292: Supply, delivery and off-loading of electrical discharge lamps and incandescent electric lamps. R6M

E.9375: Supply, delivery, off-loading and stacking of steel street-lighting poles. R17.5M

EThekwini Electricity is facing a major problem with copper theft and has a negative impact on all citizens. The estimated loss due to copper theft is approximately R5 billion per year with eThekwini Electricity contributing R60 million to that loss. It has an impact on the City’s communication network, electricity supply, and railway and traffic services. To add to the seriousness of the situation, areas such as Edwin Swales, Bellair, Cato Manor, Shallcross, Clermont, M4 and Higginson Highway have been significantly affected by the felling of street light poles to access the cable routes, thus stealing the copper. In an effort to minimise the cutting down of steel poles in these areas, an Anti-theft solution was investigated and implemented.

Maintenance Planning Division:

The Maintenance Planning Division continues to Inspect and identify hazards on the public lighting system. Major challenges are illegal connections and infrastructure theft. The use of modern technology various methods are being investigated to assist with these challenges. A summary of the Division’s activities are as follows:

• Continued inspections of street light poles, arms, fittings and infrastructure to identify hazardous conditions.

• Preventative maintenance due to identifying and hazards and repairing and redesign in advance

• Poles testing of all poles along highways, freeways and major routes

• Identifying losses due to cable theft

• Different methods of supplying street lighting due to these conditions

• High mast inspections along the beaches, townships and roads

• Inspections of sport fields, park and footpaths.

Over the past financial year the Division has done the following:

• Maintenance Division has inspected total of 114002 lighting installations

• Highway Inspections totaling 7895 were done, identified hazards and reported.

• Sport fields totaling 631 Inspected and reported

• Bulk lamping routes of 104 866 installations inspected

• Identified 610 hazards in beaches

• A total of 770 lighting installations inspected in Eskom areas

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LIGHTING WORKSLighting Works Branch is responsible for the construction and maintenance of streetlights in the whole of the eThekwini Municipality area of supply. Other than complaints from the public, Lighting Works Branch is responsible for the maintenance repairs of inspections conducted by our Lighting Planning inspectors.

Highlights

• The Branch made four female artisans and one male artisan competent in streetlighting repairs and maintenance.

• The Branch maintained a five star NOSA rating as per DFIIR report on Health and Safety Environment.

• Since the start of contract E 9275 the Branch has drastically reduced the backlog and has sped up the patrols along the freeways and highways within the eThekwini area of supply.

• The Branch managed to keep the operational budget within the budgeted parameters of 2016/2017.

• The Branch ensured the high service to other Departments such as Parks, which enabled them to host high national and international events.

• The internal training programme of competent, pre-competent artisan saw more than 15 candidates pass the training with an average of 90%.

• Lowlights

• The theft of streetlight cables and cutting of streetlight poles dampens the effort of service delivery targets.

• The staff raised concern about progression and promotion resulting in loss of production of about 4 hours.

• Non availability of material as and when required due to controls beyond the Branch affected service delivery.

• Introduction of the new software which pose a challenge to the end user.

Challenges

Improving the cable fault location skills of our electricians as well as looking at ways to secure the streetlighting infrastructure especially along the main roads and highways. The new set targets of (1 to 5) days turnaround time in the repairs to streetlighting complaints by the

public, which in turn improve the Branches performance check on its operations.

Management would like to acknowledge staff in the Branch for their efforts and dedication in keeping the lights burning regardless of the

challenges and situations beyond their control.

NETWORK CONTROL BRANCHThe Network Control Branch is responsible for the management of the MV and LV electrical network on a 24 hour shift basis. We ensure the secure, stable and safe continuity of electricity supply, from 220 volts up to and including 11 000 volts, to eThekwini Municipality’s area of supply. This includes the remote monitoring of field equipment for load profiling, asset and outage management and supervisory control.

Our Control Rooms are situated in the heart of the Durban CBD and are manned by a team of dedicated Control Officers who work tirelessly with many stakeholders to ensure the optimum operation of the network. Faced with multiple faults and a strained electrical network, our Branch repairs faults and restores supply to over 740 000 customers. During this financial year we dealt with 3976 MV faults and 255 073 LV faults. Despite the many challenges, safety remains the top priority and Network Control closed off the financial year with a 5 star NOSA rating.

Service delivery is our prime focus and we understand the impact of outages on our customers and the economy at large. It is no longer “business as usual” as our traditional business model is challenged by the introduction of green technology. With the many customers wanting to diversify their electrical supply, off-grid generation and bi-directional energy flow is a fast approaching reality. We are gearing up to embrace this change in technology and the potential benefits to the environment. However, more case studies and investigations need to be conducted to prevent the injection of unclean energy into the grid as well as the maintaining a high quality of supply to our customers. We are regularly reviewing and reinforcing our electrical grid to meet the growing electricity demands.

Despite our many efforts to improve service delivery, there are certain factors beyond our control. Some of these factors are: the growing rate of illegal connections straining the electrical network and causing multiple faults, theft and vandalism of electrical equipment which results in long outages and damage to customer contents, weather patterns influenced by climate change which is testing the endurance of the equipment and perseverance of our staff.

To serve our customers better, we have introduced electronic dashboards at our LV Control Rooms, which continuously mine the Enterprise Resource Planning system database and displays the work outstanding and completed in our area of supply. This allows management to take quick decisions, escalate and prioritise larger faults and also monitor the performance of the network. We are also exploring ways in which this information can be communicated to our Contact Centre and in turn to our customers for a higher customer satisfaction as part of our current outage management processes.

Further to this, we have embarked on the second phase of the Distribution Automation project. This phase involves the remote monitoring of indoor brick built substations, commonly known as kiosks. Through monitoring the LV circuits of the kiosk, we can determine when multiple customers have experienced an outage, even before they call in to report a fault. To enhance this process, we have begun linking the LV circuits to the 11kV distribution substations which are monitored and controlled through the Supervisory Control and Data Acquisition (SCADA) system. This will enable us to perform effective outage prediction on the MV and LV networks.

The implementation of a Smart Grid means that distribution operations will become proactive instead of reactive, identifying and repairing equipment, cables and lines before failure occurs and transferring load to operate within designed limits of transformers, circuits, and substations. Network Control is committed to the Smart Grid vision and will introduce technological systems to enhance service delivery. Systems such as the Advanced Distribution Management System (ADMS) will boost situational awareness of the electrical network and hence allow the Control Officers and field staff to work more efficiently and effectively. Our aim is to improve customer communication regarding electricity outages, reduce outage restoration times through predictive reasoning, and facilitate coordination of the staff more efficiently to support outage restoration activities.

Network Control also provides dedicated teams of standby staff at special events such as Elections, Conventions, Festivals and Sport Tournaments. Our staff work in the background, ensuring a stable power supply and backup power in the event of a power disruption.

Whilst many of our endeavours are work in progress, in the year ahead we will seek ways to improve efficiency and effectiveness. Our business processes and procedures must adapt to the new technological systems being implemented. Network Control embraces the shared vision of our Unit, to meet our customer’s expectations of a reliable service of electricity supply.

MV/LV OPERATIONS DEPARTMENT

11


120Y E A R S

OF ELECTRICITY

- CELEBR

ATIN

G EX

CELLENCE -

A N N I VE

RS

AR

Y

In 1899 it was decided

that the trams should also be

powered by the electricity.

Following a trip to england and

the United States of America

by the Borough Electrical

Engineer and the assistant

Borough Engineer to inspect

electrically equiped tramways,

it was decided that a new

power station would need to

be built. A site was selected

abutting Alice Street. The

new Alice Street Station, now

known as Johhannes Nkosi

Street was designed to house

all the electrical plant for

both the traction and lighting

systems. Many difficulties

had to be overcome during the

construction phase, mainly due

to the marshy nature of the soil

and the fact that the boiler room

was only 16 feet (4.8 metres)

above sea level. This site was

to become the headquarters of

Durban Electricity, known as

the Electricity Department for

80 years, until the move to Jeff

Taylor Crecent in 1986.

12


Challenges

A gap in strategic direction with respect to Telecommunications and the Smart City concept within the municipality was noted. Recommendations for integrated city planning were presented to the City’s Information Management Unit. Comments on the Spatial Development Framework (SDF) & Integrated Development Plan (IDP) regarding strategic management of telecommunications were prepared and submitted to the City’s Strategy Office, to address this gap.

Expected Challenges

The national Department of Telecommunications and Postal Services has expressed an intent to recommend an amendment to the Electronic Communications Act. The amendment is focused to enable the rapid deployment of telecommunications. The Communication Networks Branch shall offer its services to assist in drafting municipal policies and conduct awareness presentations to support this initiative.

New Technologies

Research into Gigabit Passive Optical Network (GPON) solutions was undertaken and resulted in developing a set of considerations for the specification of GPON equipment. A document for the Expression of Interest for GPON for substation communications was completed and will be released for public response.

New Projects

A proposal for wireless connectivity to rural areas was drafted. The proposal was supported by the Advanced Transmissions and Distributions Committee and has progressed to a detailed planning phase.


• The delay in the drafting of Smart Implementation Plan.

• The following presentations for public consumption were conducted by Branch staff members :

- Role of telecommunications in a smart city

- Local Low Cost Monitoring Solutions for Electrical Substations

- The effectiveness of a Wireless Mesh Communication Network for Distribution Automation in Electric Utilities

- The Opportunity for Technology as Smart Grid Enablers in Municipal Distribution Networks: A Review

- De-colonializing technology for SA utilities

ELECTRICAL WORKSHOPSThis Branch was established to ensure that all equipment received, from the manufacturers, is tested prior to installation into the Electricity Network. Acceptance testing is undertaken on all new equipment purchased, ie. mini-substations, transformers, ring main panels, autoreclosers, sectionaliser and motors in the workshop or on site, prior to it being handed over to stores. The Branch has also been responsible for the repairing of equipment which has failed while in service. Repairs and overhauls of transformers, mini-substations and circuit breakers are carried out in the workshop or on site. Over the years this Branch has evolved to undertake specialised intrusive maintenance on MV switchgear and transformers. The Branch provides a breakdown service to attend to faulted transformers, mini-substations, circuit breakers, autoreclosers and sectionalisers either on site or in the workshop.

Another key function of the Electrical Workshop is to supply other Departments with mineral oils which are utilised as a coolant medium in transformers, autoreclosers and switchgear etc. Oil processing is carried out to provide MV/LV Operations and HV Operations with regenerated transformer oil and ensures the effective management of the processing, storage and issuing of regenerated transformer oil.

Redundant cables are returned to the Reclamation Division for processing. The cables which have been returned from site due to failure or new network developments are processed by this Division for disposal. These cables are cut into one metre lengths to prevent being utilised unlawfully.

Challenges

Cable disposal process at Reclamation Division was handed over to Supply Chain Management and has created some teething problems in terms of productivity of this function.

Numerous staff requested transfers resulting in a decrease of the workforce. The process of recruiting new staff had to be brought forward and treated with urgency.

The Technical Support Department provides a diverse range

of specialist services within the Electricity Unit. These services

contribute towards the Vision of the unit, which is to be a leader

in electricity distribution providing energy for the future. The

Department comprises of seven Branches, namely, Communication

Networks Branch, Electrical Workshops Branch, Mechanical

Workshops Branch, Network Drawing Office and Survey Branch,

Protection and Test Branch, SHERQ & Training Branch and

Technology Services Branch. Collectively, these Branches ensure

that all resources are effectively and efficiently utilised so that

value is added to approximately 743 000 customers that the

Electricity Unit currently supplies.

TECHNICALSUPPORT

OVERVIEW

COMMUNICATION NETWORKS BRANCHThe Communication Networks Branch is responsible to provide and maintain a secure and reliable communication network for all technical systems that monitor, control and protect electrical plant and equipment in the HV transmission and MV distribution network. In addition the Branch provides communication channels for other support services required to operate an electrical utility, such as Information Technology (IT) Wide Area Network (WAN) links, Closed Circuit Television (CCTV) and access control, as well as support municipal communication requirements where possible.

This is achieved by researching, designing, planning, procuring, operating and maintaining the required communication network that ultimately enhances the security and quality of electricity supply in the most effective manner. This network provides other users with communication links for the effective operation of their systems. The Branch utilizes a wide range of technologies such as fibre optic, data, wireless and copper pilot communication network links. Associated with these links the Branch utilises ruggedised carrier class DWDM and SDH access multiplexers, optical switches/routers/media converters, wireless mesh and wireless point to multipoint equipment.

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EThekwini Electricity Annual Report | 2016/17TECHNICAL SUPPORT

Expected Challenges

The proposed organogram for the Electrical Workshop has not yet been finalised. This may delay the achievement of the 2017/18 business plan. Deliverables and target dates will have to be reassessed.

Training required for new staff recruited in current financial year will have to be expedited to enable them to be competent for carrying out duties. Obtaining competencies will allow staff to work safely and be productive to the Branch.

New Technologies

Updated software version, with Bluetooth capability to ensure ease of communication between computer and controller for the programming of auto-reclosures has been obtained. This also allows safer working conditions for staff on site due to remote access. Authorised personnel are able to upload and download data without a hard wire connection to the controller.

New Projects

Replacement of electric pumps with pneumatic pumps at the transformer draining bay. This was aligned to the energy efficiency project and reducing the overall carbon foot at the Electrical Workshop. The pumps have also increased the rate at which transformers are drained, thereby increasing productivity.

• An existing energy efficiency project was extended by procuring additional pneumatic tools for the paint bay of the Electrical Workshop. After carrying out research, it was found that pneumatic tools are more durable and work better in harsh conditions.


• The procurement of a loop impedance test set for the Motors Division. When conducting tests on motors, more accurate readings are obtained. Mobility of the unit supports onsite work.

• A number of new staff have been appointment in the Electrical Workshop. Majority of these positions are Depot Supervisor, Small Plant Operators and Handyman Assistants. This will allow for increased productivity.

MECHANICAL WORKSHOPS BRANCHMechanical Workshops Branch provides a specialist mechanical support service to the Electricity Unit. These are the Work Programming Division, Fitting, Machining & Rigging and Welding Workshops. The Branch is involved with a wide range of repetitive fabrication, production and maintenance, and also a diversity of mechanical tasks that change on a daily basis as per our customer’s requirements, but in line with the function of being the mechanical support function to our electricity distribution network. Routine activities include costing, planning, design, research and purchasing of materials and equipment for works orders received, manufacturing of galvanized equipment, repairs to fibreglass ladders, maintenance and fabrication of electrical equipment, installation of support structures, rigging services and safety inspections. The Branch also undertakes the manufacturing and repair of electrical infrastructural equipment and component fabrication. All work is undertaken with the emphasis on maintaining of ISO 9001:15 accreditation.

Achievements

• Mechanical workshops are proud of their achievement of being the only Branch within the eThekwini Municipality to be accredited with an International ISO Standard 9001 by SABS.

• This was obtained in 2011 and has been maintained to date.

• Mechanical Workshops has surpassed its targeted achievement regarding the gender equity act.

Challenges

• Maintaining Staff compliment due to resignations/transfers. HR looking into possible solutions.

• Demand planning by the Branches requiring manufacturing service, resulting in unpredictable workload.

Expected challenges

The upgrading to ISO 9001:2015 this coming year will require extensive training of Staff to maintain the new quality standard. Training will commence shortly.

New Technologies

Steady progress in purchasing of up-graded machinery within available Capex budget allocations.

New Projects

Transition from ISO 9001:2008 to ISO 9001:2015


Christmas features completed on time for the festive season.

NETWORK DRAWING OFFICE & SURVEY BRANCHThe Network Drawing Office and Survey Branch is a support Branch to the Electricity Unit that comprises of six Divisions, namely Administration, Network Records, Geographic Information Systems (GIS), Special Projects, Utility Plans and Survey Services. The main focus of the Branch is to maintain an accurate geo-spatial representation of all underground and overhead electrical assets in a connected network, provides an efficient GIS, to support other enterprise systems and first line GIS User Support to all GIS Users and to provide a Survey service, within the Electricity Unit.

The Administration Division provides an administrative service to the six internal divisions, a printing and scanning service to the Electricity Unit and external Service Providers that are contracted to the Unit. The Division also scans all as-built documents to an image repository.

The Special Projects Division uses CAD technology to update and maintain the Low Voltage Circuit Diagram database and make these diagrams available via a web browser. This Division produces design and documentation for the Unit and also updates the code of practice, drawings and illustrations for the Technology Services Branch.

The Survey Division provides survey services to internal and external customers by; surveying property and servitude boundaries to avoid encroachments, surveying overhead line, underground cable and equipment location for GIS update, locating cable and pole encroachments for insurance claims, and tracing cables for accurate cable location.

The Network Records Division is responsible for maintaining an accurate geo-spatial representation of the Underground and Overhead Electrical Network in the GIS to provide information for other systems. The Division also provides Depot Draughtspersons at the Units Construction and Maintenance Depots, to assist the technical staff by providing reticulation information form the GIS.

The GIS Division is the custodian of the ArcGIS enterprise database. Its primary function is to ensure data integrity and make data available

14


via the ArcGIS Server web browser to all employees in the Unit. This Division also provides GIS support services to all staff in the Unit and provides specific GIS software applications to assist other Branches in some business processes.

The Utility Plans Division attends to all wayleave, provides network information to visitors and responds to all written correspondence received by the Branch.

Achievements

• Six new Draughtspersons were appointed.

• The GIS Officer obtained a Higher Information Technology certificate from the Durban University of Technology, with three distinctions.

• Three Draughtspersons obtained their Exploring GIS Systems Certificates from UNISA.

Challenges Implemented the Telecommunications data model and migrated the existing data to the model.

• Surveyed various Informal Settlements and Transit camps with a total house count of 5457 Units. Safety of staff, access and unavailability of registered survey is an ongoing challenge whilst working in these areas.

• Ongoing participation in the Units Asset Management Strategy by ensuring that all Master Data

• Changes are recorded in the GIS.

• Some Draughting staff have completed their Entry into Live Enclosures competency, to enable them visit live sites to gather technical information to update into the GIS.

Expected Challenges Enhance the integrity of the Electrical network in the GIS by merging and integrating, various datasets, namely; Connected Network, Point to point dataset, Revenue Protection dataset and data from various Consultants.

• Complete the procurement of a colour printing and scanning service for the Electricity Unit.

• Provide resources towards the City’s vision to implement an electronic wayleave process and make the GIS data available for this platform.

The unavailability of new desktop computers for new and existing staff is compromising service delivery.

New Technologies • Appended the customer information from Ellipse ERP, to the

property information in GIS, to achieve spatial awareness on customer location, for both credit and prepaid customers.

• Customized a tool to capture addresses to assist Customer Services staff to locate and register new customer locations, in the ArcGIS Viewer.

New Projects• Currently procuring additional GIS software to enhance the

model and functionality, to support the action items in the Units GIS strategy.

• Developed the HV data model and modelled 132 Major Substation sites. This ongoing project is to provide incremental updates to the HV SCADA via DASMAP (SCADA CAD package) to extract data from the GIS.


The GIS Roadmap for the Unit was developed and adopted by the ICT Technical Committee in March 2017. The integration of the GIS data with other systems is a project that is being managed by the ICT Branch as a Unit strategy.

PROTECTION AND TEST BRANCHThe Protection and Test Branch compromises of four technical Divisions, namely Protection Engineering, Test, Protection Maintenance and DC Systems. These Divisions are collectively responsible for the forward planning, analysis, design, updating, setting, configuring, testing, commissioning, auditing, maintenance and repair of all Protection and DC systems in the electrical network. The optimal operation of the Protection and DC systems is vital as it is these systems that will ensure the rapid and selective isolation of the electrical supply under fault conditions thereby reducing risk to plant, people and environment. The Branch is also responsible for the investigation of all Protection or DC related mal-operations. In addition, the Branch provides other crucial services like cable fault location as well as various equipment testing, commissioning and repair services to the entire Electricity Unit.

Challenges

Relay failures remained the biggest challenge for the year. After comprehensively analysing the failures, determining the failure mode and analysing trends the Branch implemented various solutions

to mitigate against the specific failures. The mitigation strategies employed included replacement of the entire relay with different versions or types, replacement of relay modules or relay components, repairing relays, reconfiguring relays, implementing patches or firmware changes. In case were trends were identified, the specific devices were flagged and the mitigation strategy applied to all affected devices.

Other challenges included the switchboard failures at Umlazi and Alice Street substations. Together with the primary equipment, most of the protection equipment was damaged and staff had to commission temporary boards, as well as engineer and configure ancillary protection panels in order to restore supply in the shortest possible period.

New Projects

A number of new Transmission substations were successfully commissioned during the financial year, including the new Sapref and Mobeni South substations.

• Temporary switchboards were commissioned at Alice Street and Umlazi substations following the failures at those substations.

• Refurbishment and upgrade projects were undertaken at Klaarwater, Ottawa, Ridgeview, Phoenix Industrial and Parlock substations.

• The use of hydrogen monitoring in battery rooms was investigated and a system design has been proposed for piloting in the 2017/18 financial year.

• Re-engineering and modification of the MV schemes utilising the MICOM P123 relay were undertaken to eliminate closing reliance on opto-isolator. The modification has been successfully completed on 388 panels.

• Portable play and plug differential relay modules were developed for use under emergency conditions. These modules can be installed and commissioned in a very short space of time.

New Technologies

The use of solar technology as a supplementary method of charging inverter batteries in the Fault location and Pressure testing vehicle is being investigated. The system design has been completed and the system will be piloted in one vehicle and tested to determine its feasibility.

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Expected Challenges

Addressing the high relay failures that are occurring by working together with relevant manufacturers to identify the root causes of failure and then formulating solutions to mitigate against these failure modes.

• Addressing the reliance on contractors for technical expertise on substations commissioned on the new ICAP contract by ensuring that the protection personnel are trained and kept abreast with the latest version of the IEC 61850 standard.

• Addressing the maintenance backlogs that were created by staff shortages and the high rate of relay failures.


• Nine battery banks and 8 battery chargers were replaced at Transmission substations and at Distribution substations 32 battery banks and chargers were replaced during the year as part of the Branch’s upgrade programme to replace aged and failure prone DC equipment.

• The DC systems at 36 transmission stations were audited during the year to ensure that all the DC loads were correctly wired and labelled to facilitate troubleshooting and the safe isolation of control equipment.

• The protection settings at 10 Transmission substations were also audited by the Branch to ensure that the settings and relay configuration at the substations is optimised to provide proper discrimination as well as fast and accurate fault determination and fault clearance.

• Fault locations for a total of 2636 HV/MV cable faults, 1985 LV cable faults and 1792 House service cable faults were provided by internal staff during the year. Internal staff also performed dielectric withstand voltage testing on 462 pieces of equipment to confirm the integrity of the equipment insulation.

• The establishment of the Construction Division within the Branch was approved and the associated posts should be graded and ready for advertising in the 2017/18 financial year.

• Relay failures again plague the Branch and the Branch had to undertake major module and relay replacements at 16 Transmission substations as well as change out 111 failed overcurrent relay screens. These failures claimed a significant amount of Branch resources resulting in backlogs in some maintenance areas.

TECHNOLOGY SERVICES BRANCHThe Technology Services Branch consists of three different divisions, namely the engineering Division, quality and investigation Division and the Library Division. These Divisions collectively ensure that the electrical products procured are fit for purpose by compiling the correct technical specifications, ensuring quality control at stores and investigating failed equipment.

One of the functions of the Branch is research into cost effective ways of distributing electricity. This function can be divided into two, namely, the cost of goods purchased and the costs associated with the installation, operation, maintenance and disposal of the said goods. Over and above the issues relating to construction and maintenance, safety of staff and the public is high on the agenda. Technology Services has, as its primary goals, the adjudication of all tenders for technical equipment, material and services supplied to the Service Unit, and the creation and maintenance of all technical codes of practice and instructions used by eThekwini Electricity staff and contractors.

The Branch has continued its active participation in NRS Workgoups and SANS Workgroups in conjunction with other municipalities, Eskom, mines and major suppliers, specifications and guidelines. This participation has been to promote uniform requirements for equipment and design methods for use in distribution systems.

Challenges

• Investigation into the rusting of critical equipment such as mini-substation and ring main unit housings along the beach frontline. This prompted the Department to look into inspection of the coating system used on the housings by the suppliers. The Department is in the process of investigating and sourcing a suitable instrument that will measure and differentiate the coating systems on the housings i.e.: the thickness of the zinc corrosion protection layer as well as the thickness of the powder coating layer.

• Monitoring the quality of stock items received at stores. Engineers now accompany the Standards Assessor to stores bi-annually to verify that goods received are to specification and to create updated checklists for materials.

New Technologies

• Review of the small power distribution unit (SPDU) to accommodate for wireless or power line carrier (PLC) meters. Furthermore, the review also allows for the unit to be designed with ‘off the shelf’ items so these can be easily replaced by customers should they fail.

• In order to reduce transformer failures due to overload, low voltage circuit breakers will be installed on transformers.

• Revised substation building plans for all brick substations.

• The introduction of identification marking on both LV and MV cables’ outer sheath. The owners’ name is engraved on the sheath. The name evolved from ‘DME’ to ‘EE’ and now ‘ETHEKWINI ELECTRICITY’.

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New Projects

• Investigating the use of alternative insulating fluids for use in distribution transformers. Due to exceptional dielectric thermal and electrical properties of renewable and ester based (natural and synthetic) dielectric fluids these will be considered for use on our transformers. The detailed alternative oil product review has been completed with recommendations to the business.

• Perform design reviews on transformers to understand its poor performance in certain areas and to accordingly modify designs to improve reliability.

• EThekwini Electricity uses PVC 185 mm2 LV Nitrile cable on the LV side of the distribution transformers to connect onto the consumer bus trunking unit, however, this cable is very much susceptible to theft because of the copper material. Therefore, the LV 240 mm2 single core Al cable is a preferred cable to use for this application as opposed to the 185 mm2 Cu Nitrile cable, to mitigate against copper theft. Technology Service has since included and procured the LV 240 mm2 single core Al cable as the replacement item in the cable contract. The Nitrile cable will be phased-out in the next contract and an instruction be issued for the use of the LV 240 mm2 single core Al cable.

Expected Challenges

• Failures of non-critical or “bolt-on” elements within a mini-substation have resulted in the entire mini-substation being changed. Non-critical elements are RMU terminations, cable bushings and “bolt-on” elements are RMUs, transformers and LV panels. In conjunction with the manufacturers we have undertaken a financial feasibility study on replacing these failed elements and returning the unit into stores.

• Certain critical items being bought out of contract resulting on non-complaint items being bought and unwanted stock-outs. The solution will be to identify all these items and include them in annual contracts.

• Obsolete items still being bought because the stock codes still exist within the system. The solution will be to delete all the stock codes that these items are no longer in use.

Highlights and lowlights for the 2016/17 year

• Access to all South African Bureau of Standards (SABS) documents are available online to all staff. This includes a search function to allow for easy location of documents.

• Successful kick-off meetings have been conducted with successful bidders on high value contracts as well as for critical items.

SHERQ & TRAININGThe SHERQ and Training Branch was established within Electricity Unit due to a need for technical personnel to comply with safety rules and operating regulations when working on live equipment in the electrical system network. The Branch comprises of four Divisions, namely; Safety, System Operations Training, Technical Training and Engineering Skills Development Divisions.

The Safety Division is responsible for the design, implementation and monitoring of the NOSA aligned (CMB 253) Town Clerk’s Chapter 25 Health and Safety Management system. This ensures compliance with the Occupational Health and Safety Act and associated Regulations throughout the Electricity Unit. Functions include, but are not limited to, the monitoring of health services, the development of risk assessments, the undertaking of safety and environmental inspections and audits, as well as the provision of site safety standby personnel. The Division is also responsible for facilitating investigations into machinery safety related incidents and the introduction of measures to prevent recurrences.

The System Operations Training Division fulfils a critical role in training and development of special technical skills which are required to operate sophisticated equipment in various systems of the electrical network. The Training Officers within the Division ensure that staff across the Unit are competent, committed and suitably qualified to operate and maintain the electrical network safely, thus eliminating damage to equipment, injury to staff or fatalities. With evolving technology the Division continues to provide valuable input into new engineering technologies that are introduced as they form an integral part of the business of Electricity Unit.

The Technical Training Division is responsible for the transfer of critical technical skills to staff thus ensuring an acceptable level of quality with regards to workmanship, installation and maintenance of plant and equipment. This also ensures that work is conducted in accordance with specifications and codes of practices as laid out by equipment

manufacturers and the Electricity Unit. The Division is also involved in technical skills development programs and special training projects that are related to development of Artisans such as Apprenticeship training program. Other programs include ICT training for staff who are required to use computers as a tool to perform their duties. The Division is fully accredited by Quality Council for Trades and Occupations (QCTO) as a Skills Development Provider in the Electrician field and also as an official electrical Trade Test Centre.

Engineering Skills Development Division ensures continuous recruitment and development of Learner and Candidate Technicians (H/C and L/C), and Candidate Electrical/Electronic/Computer Engineers in order to address shortage of critical Engineering skills in the country. The Division is also responsible for providing bursary schemes to aspiring engineers who are pursuing Electrical/Electronic/Computer Engineering studies at University level. As part of the skills outreach project initiatives the Division is highly involved in various career symposiums promoting Electrical Engineering to school learners and tertiary students as a career choice.

Challenges

• Failure to attract suitable technical skills and limited training resources. Solution: Reviewing of Job Descriptions for all Training Officers and expansion of training facilities.

Expected Challenges

Attracting suitably qualified Technical Training Officers. Attractive remuneration is required for Technical Training Officer posts.

New Projects

• Updating of Construction Regulation (2014) Legal Appointments (70% completed).

• Construction of the new Training Centre Building which is anticipated to be completed in Feb 2018.

Highlights and lowlights for the 2016/17 year

• Vigorous site safety inspections being carried out by safety personnel to mitigate high rate of safety related incidents.

• High rate of operating incidents where safe work procedures were not followed in accordance with safety rules and regulations.

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EThekwini Electricity Annual Report | 2016/17TECHNICAL SUPPORTCUSTOMER AND RETAIL SERVICES DEPARTMENT

PRICING AND MARKETING BRANCH Electricity Pricing has been under extreme pressure in the last decade; initially owing to generation capacity and now, owing to the growth of the renewable sector. The changing generation mix together with the increase in disruptive technologies is driving a transformation in the energy sector thereby pressurizing utilities to adapt to a changing and complex environment.

The ever-present need to become energy conscious and mitigate greenhouse gases has and will be the back-drop for decades to come as environmentalists push on with the climate change agenda.

All of this in the presence of regulation, competitive pricing amongst utilities, the need to keep the economy turning and the provision of affordable services to all its’ citizens, with a particular emphasis on low income households.

It is in this convoluted, no and slow growth environment that we see the urgent need to adapt and evolve to embrace a rapidly changing distribution business.

Pricing Division

The Division designs electricity tariffs and provides tariff advice to key customers. Tariffs are designed to be cost-effective, whilst ensuring accurate cost recovery and reflectivity. The overall average tariff increase, as approved by NERSA, for the 2016/2017 financial year was 7.64 %, with the obsolete tariff increase set at 8.64%. Customers consuming electri city on the Scale 12, Free Basic Electricity tariff structure were subjected to a 0% increase to maintain affordability levels.

Tariff - design is proving to be a major challenge in the wake of the large increases from ESKOM and it has subsequently become more difficult to design cost - reflective tariffs that are affordable to the end customer. Major emphasis has been placed on protecting the poor to ensure that they are not adversely affected by the huge increases. The tariff increases have been calculated in line with NERSA’s guideline methodology.

The Division achieved a milestone in embracing embedded generation from residential customers by providing a mechanism through which residential customers can sell their excess units generated back to the unit through the embedded generation tariff.

The section is also responsible for monitoring the key performance indicators of the Unit and maintaining a statistical database.

Marketing Division

The Marketing Division’s main purpose is to bridge the communication divide between our citizens and the Unit. Ongoing interactive events raise awareness and promote access to the Unit’s products and services. Knowledge of reducing energy consumption through behavioral changes and technology is being promoted by the marketing staff and starts at primary school level all the way to community imbizo’s and old age facilities.

The activities of the Marketing Division create a platform to engage with the public to address the following:

• Energy efficiency and demand side management (DSM),

• Climate Change and greenhouse gas emissions

• Service delivery problems and constraints

• Theft of electricity and infrastructure

• Products and Services offered

• Electrical safety and electricity hazards

A major focus area of the Unit is to electrify informal settlements. This presents a wide range of challenges, however, the commitment to surmount these barriers is commendable. The Marketing Section plays a critical communication and facilitation role between communities, councilors, contractors, consultants and within Municipality to realize this seemingly unachievable target of electrifying each and every home within our boundaries.

CONTACT CENTRE BRANCHThe Contact Centre provides a one-stop faults, outages, theft, capturing of meter readings and other general electrical queries reporting centre. We also provide assistance in the use of prepaid meters, vouchers and other administration enquiries, in pursuance of excellence in service delivery.

We deliver our services, 24/7/365, through multi-media communication, such a Voice, E-mail, Social-Media, Website, and SMS. Toll-free: 080 311 11 11, SMS: 30909, Email: [email protected], Website: www.durban.gov.za (Services/Electricity/Online Services)

Highlights

• The multi-skilling of call-centre agents, which was done in the last financial year, has been a great success. In 2016/17 we handled over 1.5 million consumer interactions, which is over 200 000 more, when compared with the 2015/16 financial year, indicating that introducing these communication platforms, and multi-skilling call centre agents, to handle them, was indeed an excellent strategy.

• All Electricity Contact Centre interactions are now being routed via the latest technology telephony system, which has helped us to effectively and efficiently handle all our consumer interactions. It also provides real-time, and historical data, for tracking and reporting, so as to better-manage employees, thus ensuring that all our customers get high levels of service.

• The Quality Assessment and Coaching function that was also introduced in the last financial year has been a huge success, as we have been able to identify and bridge training gaps. Some of training that was done included Conflict Management in the Workplace, Supervisory Foundations and Improving Service Delivery. We also provided our new staff with technical field-exposure to skill them, so that they are enabled to assist our customers with minor technical queries.

• The Electricity Contact Centre Netball team that was formed in the last financial year has been crowned champions in two tournaments.

The Customer and Retail and Services Department provides a

customer contact and retail services function for the Electricity

Unit. The Department consists of various Branches that collectively

perform a diverse range of important functions.

OVERVIEW

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Lowlights

• Illegal-connections and the theft of service cables has given rise to more outages, resulting in staff having to deal with irate customers, who are faced with repeat power failures.

New Technologies

We have procured the latest-technology telephony system. This high-tech telephony system, has given us better communication with customers, effective and efficient call-handling, and having real time and historical data for tracking and reporting.

Challenges

We do not foresee any major challenges in the next financial year. We have seen a positive relationship develop between the Contact Centre and our other internal Departments, who we are reliant on to provide feed-back on the progress of faults, such as the Regional Depots and Network Control, which shows promise to get even better, going forward.

CUSTOMER SERVICES BRANCHThis Branch is responsible for the processing of all applications for supply, registration of customers for billing purposes, meter reading services, auditing of meter readings, resolving account queries/disputes, technical advisory service and the cashiering facilities at various electricity customer services shops.

A major challenge of the past year was the implementation of the Revenue Management System (RMS) which is still in the early phase of inception and Customer Services administration staff are still assisting when required to ensure that Electricity’s concerns are addressed. There have been delays in the RMS project and staff are working extra hours to cover up the lost time. The Customer Services Branch is bracing itself for final testing and intense training to ensure a smooth transition from Coins to RMS. Challenges with RMS and meter reading migrations have given rise to a number of customers with incorrect billing, these were identified and corrected.

In view of the high crime rate, customer services centres are always improving security for both their staff and customers. New cameras are being rolled out to all centres.

METER ENGINEERING BRANCHThe core responsibility of the Meter Engineering Branch is to ensure all metering equipment used for billing purposes are appropriately

specified, tested, installed and maintained. To ensure these objectives are undertaken efficiently, the Branch is subdivided into specialized Divisions. These Divisions are Advanced Metering & Projects, Metering Workshop, Whole Current Metering (Construction and Maintenance), and the Bulk Metering Division.

The Meter Engineering Branch is vital to creating an interface between the Department and the various internal as well as external customers that this Department supports, as we are a service unit.

For the year 2017, Mr Ross Sheonarain was celebrated and awarded for his 40 years of loyal service to the Municipality. He retired shortly afterwards.

In this same year, Mr Ramanund Pursothman was also celebrated and awarded for his 25 years of loyal service.

The Meter Engineering Workshop Division was faced with great challenge as their Workshop Testing Facilities had reached the end of their lifespan.

By the end of 2016, new test equipment were procured which breathed new life into the Division.

The arrival of the new test bench facilities has allowed the workshop to rapidly improve turnaround time and accuracy. The upgrade has enhanced the customer’s relationship and trust in the Municipality as queries and calibration will now be handled with modern-day state of the art technology.

Challenges were faced with regards to meter stocks and availability, which posed a stumbling block in delivery of service. To overcome this, The Workshop Division engaged a programme of active refurbishment of all quality meters which were then reposed to replenish stocks to ensure service delivery was not impeded.

The arrival of brand new Testing Equipment was definitely one of the highlights of the year for the Meter Engineering Department as a whole.

One lowlight of the year was when parts of the new test equipment was damaged in an internal flooding incident, which led to that particular equipment being shut down.

The Meter Engineering Branch is committed to professional service to the public and will continue striving to provide an efficient and effective service to all stakeholders.

The primary function for the Revenue Protection Branch is to minimize the non-technical losses in the distribution network. This is achieved

through efficient disconnections of illegal connections and customers who are in arrears. This aids in enforcing credit control measures and ensures that revenue is collected timeously.

REVENUE PROTECTION BRANCHThe pillars of successful revenue protection are People, Processes and Technology, and need to be integrated into a Revenue Protection Strategy. The following projects or technologies are implemented by eThekwini Municipality to enhance Revenue Protection.

• Meter Management and Operation System.

• Implementation of AMI.

• Smart Prepayment Module – Phase 1 (Suprima).

• Registration of Customers & Update of Pre Paid Property Key.

• Revenue Management (Debt and credit management) & Deployment of Super Vendors.

• Installation of Prepayment Meters and the principle of debt collection via a prepaid meter i.e. 80/20 & 50/50 policy.

• Protective Structures.

• Audit of Business Customers.

Over the years eThekwini have embarked on projects that contributed in the success of eThekwini Electricity maintaining total losses to below 6 percent. Recently our losses are on 7.68%.

CUSTOMER AND RETAIL SERVICES DEPARTMENT

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Highlights

Meter Management and Operation System

EThekwini invested in a structured Revenue Protection Department with three regional offices and field teams reporting to each office. They are focusing on reducing losses over the entire meter base, but the inherited challenges faced with the pre-payment system made it difficult to get “ahead of the game.” The following was required to address this challenge:

• One Central Master System that reconciled all records.

• A structured field audit with the aim of normalizing all pre-payment and as well as residential credit meter records.

• An integrated Work Order system to manage all follow up field operations and record updates.

• Data Reporting and Data mining to plan and execute a pro-active Revenue Protection program.

With more than 350 000 pre-payment meters under our management, field operations and data management could quickly become a daunting task. A high level of data validation and seamless system integration would be required. Previous audits have met with limited success because of these challenges.

The field operations consisted of two separate, but integrated actions. The first action was the physical meter audits. The primary aim of the audit was to update the meter records and to identify each meter position with an accurate GPS coordinate. The audit teams would first finish the work in a small designated area before the second action was initiated. This follow up action was to address all required remedial field work identified by the initial audit. These operations are executed by a separate specialised normalization team. The advantages of this approach include:

• The audit team focus on the data acquisition and their productivity is optimized.

• The negative impact with limited access when tamper disconnections. By first completing the audit sweep the access rate is much higher.

• Fraud is limited since there is no imputes to bribe the audit team not to report anomalies. The audit team have no direct contact with the normalization team.The normalization team’s skill set is selected towards the remedial tasks to be performed. An electrician’s time is not wasted by being held back by the overhead of a full data audit.

We embarked on a program to normalize our pre-payment data set and in parallel launched a paperless works order system to follow up on all remedial tasks identified through this project. We are now in the position to run an intelligent revenue protection program based on back office analysis and targeted inspections. The positive results are already evident and the future returns should be even greater. The success of the operation can be measure by having the correct building blocks in place comprising:

• People – A project can only be effective with committed and dedicated resources.

• Processes – The correct processes and procedures established at the start of the project are essential.

• Technology – This is the last element, but it is only effective once the first two pillars are in place. Investing in technology on its own will not ensure success.

Implementation of AMI

The use of smart meters is widely viewed as effective for increasing energy efficiency and is consistent with the attempts of many countries in issues of energy efficiency and sustainable development.

A smart meter is an energy metering device with enhanced capacity to store and analyse information about energy consumption in real time. A smart meter also enables two-way communication function between energy utilities and each end user. Smart meters are a major component of next-generation smart grid because they can integrate information technology into the grid.

After collecting energy consumption data from customers using appropriate devices and communication infrastructure, eThekwini Municipality will be in a position to manage electricity demand more efficient and advise users to consume the power wisely. Based on the long-term power usage pattern, the feedback information from smart meter data analytics will offer consumers a better understanding of their energy consumption and help them increase end-use energy efficiency.

Leveraging Smart Meters

EThekwini Electricity intend to focused on integrating and optimizing information gathered by smart meters (and transmitted by AMI communications systems) and other investments in the digital grid to provide benefits and new capabilities to customers and system operators. The following are the few areas where eThekwini Electricity will be leveraging smart meters.

Systems Integration: AMI systems will be integrated with distribution management systems (DMS) to provide enhanced outage management and restoration and improved distribution system monitoring.

Operational Savings: Smart meters will result in operational savings such as reduced truck rolls, automated meter reading, and reduced energy theft.

New Customer Services: Smart meters will have enabled services such as automated budget assistance and bill management tools; energy use notifications; and smart pricing and demand response programs.

Smart Prepayment Module – Phase 1 (Suprima)

This phase was the implementation of the smart prepayment vending module. This was intended to be implemented as the last phase. However, based on business needs since the existing vending contract was expiring, then this was pushed to the top.

This benefited the municipality in the following ways:

• The vending system is fully owned by the municipality as opposed to the previous one which was hosted.

• The management of the system in overseen by eThekwini Staff wholly

• Legacy systems from the previous system were eliminated, thus making the management of third party vendors easy. With the new system only was super vendor is managed by the municipality.

• System reporting is another major benefit to the municipality. Relative stakeholders can access and gnat reports as per their assigned roles in the organization.

• Business processes for managing prepayment and its associated roles improved because reliance on legacy systems was eliminated.

CUSTOMER AND RETAIL SERVICES DEPARTMENT

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EThekwini Electricity Annual Report | 2016/17CUSTOMER AND RETAIL SERVICES DEPARTMENT

Then central feature of Suprima is its ability to vend electricity to meters that are registered on the system. The meter needs to be registered so that the system has the details it needs to encrypt the credit transfer number (CTN) correctly.

There are 2 sets of information that are important, firstly the meter encryption details, such as the Supply Group Code (SGC), Tariff Index (TI) and Key Revision Number (KRN) that the meter is on. If these are incorrect then the meter will not be able to decrypt the content of the CTN, and it will be useless.

The second set of information is the Tariff, Tax, Arrears and Fixed Charge information associated with the meter. These details are required so that the system can calculate the appropriate amount of electricity to issue to the customer for the money they tender.

Because the CTN can only be used in the meter that it is generated for, and because there are financial details associated to the meter, the first step is to find the meter that you are vending to, before you can do anything else.

Registration of Customers / Pre-paid Property Key

EThekwini Electricity embarked on Customer Data Cleaning exercise that ensures that all prepayment customers are registered and this exercise was very critical in successfully implementation of Suprima prepayment vending system.

Before being able to vend to a meter there are a number of items that need to be registered on the system. This is so that Suprima can correctly determine the meter’s configuration so that the correct encryption parameters can be applied and so that it can calculate the charges that are to be applied, and other amounts that need to be recovered.

The registration is also needed to be able to manage your meter park correctly, so that you can determine who the consumers are, where they live and how much electricity they use.

The thing to remember about the registration process is that the old Information Technology adage GIGO (Garbage In Garbage Out) applies. If a bare minimum of data is carelessly entered into the system, then that is all you will have, garbage.

Fixing this after the fact is nearly impossible, so you should spend the time to make sure that it is done properly when the meters are being installed.

EThekwini Electricity is also embarking on a project of collecting the Pre-Paid Property Keys in order to have the Pre-Paid Service introduced on the new Revenue Management System (RMS).

Revenue Management (Debt and Credit Management)

This is based on the Smart Prepayment Vending System as it has been fully deployed since January 2016. The following are the benefits thus far:

• The system is fully owned by the Municipality as opposed to the previous system that was hosted by its supplier. The unit is set to break even in October 2016, this is based on comparing the monthly hosting fee that was paid by the municipality versus the capital cost of the system.

• The relevant municipality staff has full access to the system as per their relevant roles, as opposed to having an individual running the system with the supplier.

• Debt management (arrears collection) is integrated in the prepayment system. This is implemented using open standards as opposed to bespoke/legacy methodology.

With the introduction of the system, the municipality now deals with three super vendor for selling electricity to the customers as opposed to one in the past years. Utilizing three super vendor will enabled the Municipality to improve on the collection on electricity sales and to maintain stability.

The three super vendors are Cigi Cell, Sandulela and Contour.

Installation of Prepayment Meters and the principle of debt collection via a prepaid meter i.e. 80/20 & 50/50 policy

The reinstatement / inclusion of the 80/20 debt recovery programme in the Credit Control Policy was of great importance as it helped to accommodate the customers who cannot afford to settle the Municipal debt.

The installation of a prepayment metering system and the principle of debt collection via a prepaid meter played a crucial role in affording the poorest of the poor access to basic services, in the process partly alleviating the problem of non-payment of services. It is critical that one devise strategies that are complementing each other to ensure sustainability. We strategically targeted poor customers who are struggling to pay for their services to install prepayment meters, the majority of them are exempted to pay rates and their water consumption are low, as a result, they pay very little for Water or they don`t pay at all due to the 6klrs free that they qualify for. So, it makes sense to encourage these customers to install prepayment meters due to the following advantages for a prepayment metering system:- Can budget for the cost of the usage of electricity; can purchase electricity for as little as R5; there are no shocking bills at the end of the month; you use only what you can afford, and pay for it in advance, your meter indicates which appliances use a lot of electricity, your meter indicates the credit you have left in your meter; when your electricity runs out, your meter switches off automatically. Thus, you will not incur any debt by using electricity for which you have no money for, as with the credit meters. Also there will not be any reconnection fees, penalties and interest charges, as there will not be any arrears; etc.

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EThekwini Electricity Annual Report | 2016/17CUSTOMER AND RETAIL SERVICES DEPARTMENT

Protective Structures/Enclosures

In some instances Meter Room doors (Steel) are vandalised. As a result, customers were continuously tampering with electricity meters and illegally or dangerously connecting cables onto our electricity supply network.

In areas where vandalism is rife we decided to install Vandal Proof Meter Room Doors or Protective Structures with an electronic locking system. These Structures are designed with external hinges and an internal locking system. The design is such that with the hinges removed the door cannot be opened.

Benefits:

• Asset Protection to ensure minimal energy losses (non-technical)

• To prevent unauthorized access and damage.

• Enclosure has a high security features.

• It can be monitored and controlled remotely.

The Protective Structure Contract was awarded to two Service Providers as opposed to one to maintain stability.

Audit of Business Customers (CT Driven Installations)

The annual financial losses to energy suppliers caused by connection errors in meter installations are not to be neglected. There are many possibilities in making incorrect connections during installation. In many cases, installation faults are rarely discovered at the time of billing and, sometimes, not recognised for many years. This results in considerable losses to energy suppliers.

In the energy market the meaning of correct energy billing becomes even more important, especially because more parties are involved in this process.

It is imperative that utilities provide the necessary training to the Revenue Protection and Meter Engineering staff, set out procedures for the re-commissioning and verification of measurement and metering equipment and to provide the standard tools and test equipment required by technicians to perform their tasks to ensure that the required safety and/or quality standards are practiced.

The policy that defines the criteria regarding planned maintenance on electricity metering and measurement equipment needs to be adopted to ensure that utilities comply with NRS 057 and the Electricity Metering Code of Practice.

Revenue Protection Division conduct annual audits to verify measurement and metering equipment and analyse the circuit faults found during the verification.

Challenges

• Increasing number of informal settlements contributes to the high rise on the number of Illegal Connections even though the Council has taken a resolution to electrify the informal settlements.

• Delays in the award of the contracts contributed on the increase of losses e.g. Meter Sweep.

• Shortage of resources remains a challenge in our industry even though effort is being made fill critical positions.

• Challenges in the introduction of the New Systems and Training of Staff.

The Central Revenue Protection Branch together with the Customer Service Branch will soon be relocating to a building which has recently been purchased i.e. at No 34 Kings Rd, Pinetown. The building is currently under renovation.

On June 2, 1912, the Natal Government Railways and Harbour Administration signed an agreement with the Council to obtain supplies of electrical power for the Railway Workshops in Walnut Road and for the Harbour Works, and the Railways shut down their old power station. The Electricity Department supplied the Administration with power until 1939.

120Y E A R S

OF ELECTRICITY

- CELEBR

ATIN

G EX

CELLENCE -

A N N I VE

RS

AR

Y

22


The Human Resource Department is responsible for providing guidance and support to the employees of eThekwini Electricity Unit. HR Staff are involved in addressing issues which impact Human Resource management for the Unit as a whole, through coordination of policy issues and involvement in labor relations activities.

HUMAN RESOURCESDERPARTMENT

OVERVIEW

Highlights• Sthembile Tobo was appointed into the Senior Manager HR role

effective 1 February 2017.

• The total number of permanent staff is 2394.

• Talent management committee (TMC) was held successfully.

• The City’s project of retaining scarce skills as well to create succession pools for continuity, and sustainability of the business.

• Outstanding appeals from the Final Outcomes report were finalised, all employees who were eligible for back pay were paid timeously.

• The Workplace Skills Plan was signed by all stake holders. There are a number of programmes to help with upskilling of our employees such as Foundation skills programme (electrical), Superintendent Sevelopment Srogramme and Clerical Development Programme.

• Apprentice Programme is to recruit 50% from internal employees.

• Performance Management training is ongoing. There were 310 employees trained during this period of reporting.

• The capturing of e-performance plan was 100% achieved for the entire Electricity Unit.

Challenges• Funded vacancies

• This remains a challenge within the Electricity unit. We have the highest number of funded vacancies in the City. However there is a huge recruitment drive to fill all funded and vacant posts. This will help the Unit in keeping the light on as well as reduced the excessive overtime.

• The 307 posts were advertised, appointments were made in line with the Recruitment policy and the Employment Equity Plan of the City (2014 – 2018).

Future Focus• Filling of all funded vacant post with the appropriate

demographics.

• Reducing overtime to acceptable level.

• Resolving all outstanding collective grievances.

• Change Management.

HUMAN RESOURCES BRANCH

23

EThekwini Electricity Annual Report | 2016/17HUMAN RESOURCES DEPARTMENT eThekwini Electricity Annual Report | 2017/18

23

24


COMMERCIAL DERPARTMENT

The Commercial Department comprises of the Finance, Information Communication Technology, Productivity and Business Process Engineering Branches. Supply Chain Management, Business Risk and Administration play a vital support role to the EThekwini Electricity Unit. The Department also participates in numerous other Council projects and committees. The aim of the Department is to provide effective logistical support to the technical operations of the unit while ensuring that legislative practices, controls, policies and procedures are complied with.

OVERVIEW

ADMINISTRATION BRANCH

The Branch offers support services, in respect of General Administration, Fleet Management and the provision of Office and Workshop Buildings.

The Administration Section is responsible for various administrative functions, which include Document Management, Word Processing, Vehicle Monitoring System, Telephone Management System and CCTV, for site security.

The Building Section is responsible for the security, maintenance and safety, of the assets and personnel on various Buildings.

The extension of our area of supply and rapid increase of Staff numbers, necessitates the growth of available office accommodation and parking areas. The completion of the extensions, to the Control Building, a new building at our current Training Centre and completion of a new Customer Service Centre, in Pinetown, will alleviate some office space demands. Future plans being implemented, are the restructuring of existing office space and erection of a new building.

The Fleet Section is responsible for the acquisitions, servicing, maintenance, usage, and disposal of the Electricity Service Unit Fleet.

The Fleet consist of 1398 vehicles and plant, consisting of various types of Cranes, Aerial Platforms, Trucks, Bakkies, Cars, Generators, Trailers and Compressors. The majority of the fleet, are specially modified vehicles, which are adapted to best suit the operational work activities undertaken by Technical Staff.

The major challenges experienced, are the changes in technology, Driver behaviour and vehicle availability. All vehicles are fitted with monitoring systems, which are accessible on Managers/Supervisors desktop computers. Driving behaviour is closely monitored and corrective action is taken against deviant drivers. Vehicle accidents are closely monitored and independent accident investigations, has greatly reduced our vehicle accident rate. The availability of replacement vehicles, when operational vehicles are scheduled for service and/or repairs, has proved to be a major challenge. Budget constraints, on the purchase of new vehicles will be reviewed in the New Year.

INFORMATION AND COMMUNICATION TECHNOLOGY BRANCH2017 has proved to be another challenging year for the ICT Department, dominated by the number of post implementation challenges of JDE for Finance, Materials Management and SCM. The expanded use of Ellipse functionality at Electricity to support the Enterprise Asset Management Improvement Program and a number of additional business processes, has been a continuous focus area for ICT with improvements in integration methods and mechanisms now becoming a priority. The Municipalities’ standardization on Microsoft Solutions for Directory Services, File & Print Services, Collaboration and Office Productivity software has initiated a project to transition Electricity from its current Microfocus (ex Novell) technologies. Whilst in the early stages of the project, there were a number of challenges identified, which will need to be addressed to ensure a seamless and successful transition.

The first half of the year was characterized by ICT’s focus on ensuring current systems availability, over embarking on any new major ICT initiatives, projects and system implementations, due to the uncertainty regarding alignment to IMU initiatives and city wide strategies, as well as the acute skills shortages experienced in ICT. A number failures of

the cooling and UPS systems in the Main Data Centre, attributable in the main, to the extensive building renovations, resulted in significant rectification and recovery initiatives and the implementation of additional and more extensive monitoring and response systems and processes. Planning for the replacement of Electricity’s ageing ICT infrastructure to consolidate and support Electricity’s Virtualisation Strategy and address the Auditor Generals requirements regarding Business Continuity and Disaster Recovery was finalised. The initiative will result in the modernisation of our ICT Hardware platform to improve availability, reduce system administration complexity and effort, support rapid DR, improve ICT Governance whilst catering for the growth predicted for our current and future systems.

Despite the significant efforts made in terms of recruitment in ICT, the human resource capacity and ICT organizational structure limitations continue to hamper the delivery of services and affect the ability of ICT to improve in its ICT Governance maturity. The long term vacancies in key posts such as Data Centre Operations Manager and Chief ICT Support Officer, are having a significant negative impact on staff morale as the duties of these posts are having to be performed by already over-extended staff. A fundamental overhaul of the ICT Department will be required to address the structural deficiencies that are increasingly evident due to the changes in the ICT portfolio and the increasing complexities of the ICT landscape together with the increasing service demands of the Unit. Recruitment will remain a key internal focus for the Department in the forthcoming year.

BUSINESS RISK CONTROL BRANCHThe Business Risk Control Branch is responsible for the formal identification, evaluation and mitigation of risks within eThekwini Electricity. Compliance to policies and procedures is assessed for the different Departments within the Unit to assist to improve controls by generating appropriate solutions to resolve problems/issues.

Risk workshops were conducted during the year with all the Departments, where the Unit’s strategic and operational risks were identified and assessed. Together with the relevant stakeholders, risk mitigation strategies were designed. The workshop also led to the development of the Unit’s risk register which is considered an integral

25


part in the effective management of the business. Regular monitoring of progress on the various tasks allocated to task owners has been conducted and it is envisaged that completion of the various tasks would meet their desired target dates and consequently support the mitigation strategies.

The vision of eThekwini Municipality is “By 2030 eThekwini will be Africa’s most caring and liveable City” hence the Enterprise Risk Management strategy was adopted to provide assurance that the risks that might hinder the City from achieving its objectives and its vision, are managed. It is our aim to conduct identification of the Unit’s future potential risks with a view to alerting management timeously to ensure that adequate time is available for the development and implementation of mitigating strategies.

FINANCE BRANCHThe Finance Branch is responsible for the financial control over all activities of the Department. This includes, inter alia, the management, monitoring and control of revenue, expenditure, capital expenditure, insurance claims, financial systems, procedures and the provision of advice and guidance on matters related to finance to all personnel. The Department’s annual and medium term budgets, annual financial statements and monthly management reports are prepared by the Finance Branch.

The Branch also monitors compliance with statutory and internal regulations. In addition the annual financial statements for the 2016/2017 year and the multiyear budgets for the 2017/2018 year onwards were prepared and approved within the stipulated deadlines.

The Regulatory Reporting Manuals (RRM) reporting required by the National Energy Regulator of South Africa (NERSA) was completed with recommendations to the regulator for some improvements and changes to the current format.

2016/17 Annual Financial Statements have been audited and the Municipality again received an unqualified audit. Management would like to express their appreciation to the dedication and enthusiasm displayed by the staff.

SUPPLY CHAIN MANAGEMENT BRANCHThe Bid Administration Section administers 71 contracts for the supply of goods and services of which 49 are labour contracts.

In the beginning of this financial year (16/17), the payment of service providers became a challenge as a new system JDE was introduced replacing the Ellipse system. For the first two months service providers could not have their invoices processed within the 30 days period as per the Municipal Finance Management Act regulations. All officials within the Bid Administration section that needed training, were trained following the implementation of the system. This was resolved during the fourth and fifth month of the year thus resulting in fewer queries related to the payment of service providers.

The section has also seen an increase in section 24 approvals, requiring SCM together with Divisions’ deputy heads or their nominees to negotiate final terms of contracts before awards are made by the Bid Adjudication Committee.

Towards the end of the financial year, the City Manager formed a new committee, the Executive Acquisition Committee. The role of this committee is to consider reports that have been approved by the BAC, and this means that awards are taking longer.

Tenders advertised (>R10 million, CM approval): 7 Tenders advertised (below R10 million : 25Awarded: 36Non awards declared : 4Number of appeals received: 5Number of Section 24 negotiations: 10

Five appeals were received by the Appeals Committee and were successfully defended.

PRODUCTIVITY BRANCHThe Productivity Branch contributes to the upgrading of productivity and efficiency throughout the Unit by closely monitoring the productivity of both in-house and contractor teams, and ensuring that the undertaking remains cost effective whilst maintaining a high level service standard to management. With the ever increasing number of contractors working for the Unit, monitoring and verification of worked claimed is essential in ensuring that a high standard of efficiency and productivity is maintained and that any fraudulent booking of work is brought to the immediate notice of management. The two vacant posts, namely the Productivity Officer and the Senior Clerk have now been filled. The new Incentive Bonus programme is well on the way to being completed by ICT and should be up and running in the early part of 2018.

Below are the average working efficiencies for the various sections recorded over the past financial year.

In 1910 at the request

of councillor, Sir David

Hunter, the depatment reduced

the voltage momentarily at

COMMERCIAL DERPARTMENT

8 o’ clock each night which

caused the lights to dim. This

time signal was accepted as

the means of synchronising

all clocks and watches in

the community. This service

was greatly appreciated

and continued until the late

1930’s.

26

EThekwini Electricity Annual Report | 2016/17COMMERCIAL DERPARTMENT

IN HOUSE TEAMS 2016/2017

Work Efficiency %

105%

100%

95%

90%

85%

80%

75%July OctAugust Nov Dec Feb AprilSept Jan March May June

CONTRACTOR TEAMS 2016/2017MAINTENANCE

MAINTENANCE

Work Efficiency %

115%

110%

105%

100%

95%

90%

85%

80%July OctAugust Nov Dec Feb AprilSept Jan March May June

Work E f f i c i ency


27

EThekwini Electricity Annual Report | 2016/17COMMERCIAL DERPARTMENT

IN HOUSE TEAMS 2016/2017CONSTRUCTION

Work Efficiency %

120%

100%

80%

60%

40%

20%

0%

July OctAugust Nov Dec Feb AprilSept Jan March May June


27

28

EThekwini Electricity Annual Report | 2016/17STATIST ICAL DATA AND F INANCIAL PERFORMANCE

GRAPHSFINANCIALSTATEMENTSSTATISTICALDATA

28

29


SYSTEM MAXIMUM DEMAND

ENERGY SALES PER ANNUM

Financial Year

Financial Year

Max

imum

Dem

and

(MVA

)En

ergy

Sol

d (G

Wh)

Grow

th in

per

cent

age

Grow

th in

per

cent

age

MD (MVA)

Energy (GWh)

%Growth

%Growth

2000

1 800

1 600

1 400

1 200

1 000

800

600

400

200

0

12 000

10 000

8 000

6 000

4 000

2 000

0

04/05

04/05

07/08

07/08

05/06

05/06

08/09

08/09

10/11

10/11

12/13

12/13

14/15

14/15

06/07

06/07

09/10

09/10

11/12

11/12

13/14

13/14

15/16

15/16

16/17

16/17

10%

8%

6%

4%

2%

0

-2%

-4%

-6%

10%

8%

6%

4%

2%

0

-2%

-4%

-6%

30


GROWTH OF BULK CUSTOMERS

AVERAGE MWh PER BULK CUSTOMER/MONTH

Financial Year

Financial Year

Num

ber o

f Cus

tom

ers

Ener

gy (M

Wh)

Ener

gy (G

Wh)

Rand

Bu lk Cus tomer

Ave rage MWh/Bu lk Cus tomer/Mon th

GHw so ld

Ave rage Income (R ) /Bu lk Cus tomer /Mon th

STATIST ICAL DATA AND F INANCIAL PERFORMANCE

04/05

04/05

07/08

07/08

05/06

05/06

08/09

08/09

10/11

10/11

12/13

12/13

14/15

14/15

06/07

06/07

09/10

09/10

11/12

11/12

13/14

13/14

15/16

15/16

16/17

16/17

500 000

450 000

400 000

350 000

300 000

250 000

200 000

150 000

100 000

50 000

0

700

600

500

400

300

200

100

0

1 000

900

800

700

600

500

400

300

200

100

0

5 400

5 200

5 000

4 800

4 600

4 400

4 200

4 000

31


GROWTH OF BUSINESS & GENERAL CUSTOMERS

Financial Year

Financial Year

Num

ber o

f Bus

ines

s &

Gene

ral C

usto

mer

sEn

ergy

(kW

h)

Ener

gy S

old

(GW

h)Cu

rren

cy (R

)

Number o f B&G Cus tomers

Ave rage kWh/B&G Cus tomer/Mon th

Energy So ld(GWh)

Ave rage Income (R )/B&G Cus tomer/Mon th

AVERAGE kWh PER BUSINESS & GENERAL CUSTOMER/MONTH

04/05

04/05

07/08

07/08

05/06

05/06

08/09

08/09

10/11

10/11

12/13

12/13

14/15

14/15

06/07

06/07

09/10

09/10

11/12

11/12

13/14

13/14

15/16

15/16

16/17

16/17

50 000

45 000

40 000

35 000

30 000

25 000

20 000

15 000

10 000

5 000

0

6 000

5 000

4 000

3 000

2 000

1 000

0

6 000

5 000

4 000

3 000

2 000

1 000

0

3 500

3 000

2 500

2 000

1 5000

1 000

500

0

32


GROWTH OF CREDIT RESIDENTIAL CUSTOMERS

AVERAGE kWh PER CREDIT RESIDENTIAL CUSTOMER/MONTH

Financial Year

Financial Year

Num

ber o

f Cre

dit R

esid

entia

l Cus

tom

ers

Ener

gy (k

Wh)

Ener

gy S

old

(GW

h)Cu

rren

cy (R

)

Number o f C red i tRes iden t i a l Cus tomers

Ave rage MWh/Bu lk Cus tomer/Mon th

Energyso ld (GHw)

Ave rage Rands


04/05

04/05

07/08

07/08

05/06

05/06

08/09

08/09

10/11

10/11

12/13

12/13

14/15

14/15

06/07

06/07

09/10

09/10

11/12

11/12

13/14

13/14

15/16

15/16

16/17

16/17

335 000

330 000

325 000

320 000

315 000

310 000

305 000

300 000

3 500

3 000

2 500

2 000

1 500

1 000

500

0

900

800

700

600

500

400

300

200

100

0

900

800

700

600

500

400

300

200

100

0

33


GROWTH OF PREPAYMENT CUSTOMERS

AVERAGE kWh PER PREPAYMENT CUSTOMER/MONTHFinancial Year

Financial Year

Num

ber o

f pre

paym

ent &

resi

dent

ial c

usto

mer

sEn

ergy

Sol

d (G

Wh)

Ener

gy S

old

(GW

h)Ra

nd (R

)

Number o f P repaymentCus tomers

Ave rage kWh/Cred i t P repaymentCus tomer /Mon th

Energy So ld(GWh)

Ave rage Income (R ) /P repaymentCus tomer /Mon th

400 000

350 000

300 000

250 000

200 000

150 000

100 000

50 000

0

1 000

900

800

700

600

500

400

300

200

100

0

250

200

150

100

50

0

300

250

200

150

100

50

004/05

04/05

07/08

07/08

05/06

05/06

08/09

08/09

10/11

10/11

12/13

12/13

14/15

14/15

06/07

06/07

09/10

09/10

11/12

11/12

13/14

13/14

15/16

15/16

16/17

16/17

34


OVERALL GROWTH OF CUSTOMERS

OVERALL AVERAGE kWh PER CUSTOMER/MONTH

FINANCIAL YEAR

FINANCIAL YEAR

Tota

l num

ber o

f cus

tom

ers

Ener

gy (k

Wh)

Ener

gy S

old

(GW

h)Cu

rren

cy (R

)

Number o f Cus tomers

Ave rage KWh

Energy so ld(GWh)

Ave rage Income


12 000

10 000

8 000

6 000

4 000

2 000

800 000

700 000

600 000

500 000

400 000

300 000

200 000

100 000

0

1 600

1 400

1 200

1 000

800

600

400

200

0

1 600

1 400

1 200

1 000

800

600

400

200

0

04/05

04/05

07/08

07/08

05/06

05/06 08/09

08/09

10/11

10/11

12/13

12/13

14/15

14/1506/07

06/07 09/10

09/10

11/12

11/12

13/14

13/14

15/16

15/16

16/17

16/17

35


NUMBER OF EMPLOYEES

ENERGY SOLD PER EMPLOYEE

FINANCIAL YEAR

FINANCIAL YEAR

Num

ber o

f em

ploy

ees

Ener

gy S

old

(GW

h)Number o f emp loyees

Energy so ld(GWh)

3 000

2 500

2 000

1 500

1 000

500

0

07/08

07/08

08/09

08/09

10/11

10/11

12/13

12/13

14/15

14/15

09/10

09/10

11/12

11/12

13/14

13/14

15/16

15/16

16/17

16/17

36


FREE BASIC ELECTRICITY CLAIMS PER MONTH

AVERAGE MONTHLY FREE BASIC ELECTRICITY CLAIMS

Financial Year

Financial Year

Num

ber o

f Cla

ims

Num

ber o

f Cus

tom

ers

Clai

ms

Number o fCus tomer

To ta l C la ims


08/09

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

10/11 12/13 14/1509/10 11/12 13/14 15/16 16/17

140 000

120 000

100 000

80 000

60 000

40 000

20 000

0

160 000

140 000

120 000

100 000

80 000

60 000

40 000

20 000

0

140 000

120 000

100 000

80 000

60 000

40 000

20 000

0

Number o f C la ims

37


DISTRIBUTION OF ENERGY SALES 2016/2017

DISTRIBUTION OF REVENUE FROM SALES 2016/2017

Residential25%

Business & General

20%

Residential27%

Other1%

Bulk39%

Prepayment9%

Business & General24%

Repayment8%

Bulk45%

Other1%

38


DISTRIBUTION OF REVENUE FROM SALES 2016/2017

DISTRIBUTION OF EXPENDITURE 2016/2017


S.Western18%

N.Western10%

Western10%

Employee Related Costs 8%

Northern32%

Central14%

Southern 16%

Depreciation 2% Repairs & Maintenance 8%

Bulk Purchases 67%

Interest Paid1%

Admin & Gen 14%

39


ANNUAL FINANCIAL STATEMENTS

ASSETS Note JUNE 2017 R

JUNE 2016 R

Current Assets

Inventories 1 210 443 880 127 508 927

Receivables From exchange transactions 2 316 603 401 337 946 051

Receivables from non exchange transactions

VAT receivable 3 46 000 868 -6 647 259

Consumer Debtors 4 1 482 719 759 883 563 406

Current portion of long term receivables 829 913 350 958

Cash And Bank Balances 4 212 311 990 5 441 444 864

Total Current Assets 6 268 909 811 6 784 166 948 Non Current Assets

Property, plant and equipment 7 6 067 660 256 5 633 181 261

Intangible assets 8 67 065 243 70 843 621

Long-term receivables 5 1 699 838

Total Non Current Assets 6 136 425 337 5 704 024 882

Total Assets 12 405 335 148 12 488 191 830

LIABILITIES

Current Liabilities

External Borrowings 6 142 934 123 222 164 642

Payables from exchange transactions 9 1 515 795 295 1 337 748 630

Consumer deposits 1 428 924 731

Total Current Liabilities 1 658 729 418 2 988 838 003 Non - Current Liabilities

External Borrowings 6 1 491 512 884 1 636 337 879

Total Non Current Liabilities 1 491 512 884 1 636 337 879

Total Liabilities 3 150 242 302 4 625 175 882

Net Assets

Accumulated Surplus 9 255 092 846 7 863 015 949

Total Net Assets 12 405 335 148 12 488 191 830

STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2017

40


ANNUAL FINANCIAL STATEMENTSSTATIST ICAL DATA AND F INANCIAL PERFORMANCE

Note ACTUALS ADJUSTED BUDGET RESTATED ACTUALS

JUNE 2017 JUNE 2017 JUNE 2016

REVENUE R R R

Revenue from exchange transactions

Service Charges 10 12 074 747 053 12 494 042 940 11 608 613 140

Rental of Facilities and Equipment 11 472 378 508 450 475 272

Interest Earned 12 -5 050 220 803 670 335 089 720

Interest Earned - Outstanding Debtors 13 7 514 821 32 665 980 32 707 113

Other Income 14 193 566 525 208 530 620 253 828 799

Gains on disposal of Prop; Plant; Equip 568 454

Internal Income 16 1 287 672 742 705 644 890 265 010 534

Total revenue from exchange transactions 13 563 968 467 13 662 196 550 12 496 293 031

Revenue from non-exchange transactions

Transfer revenue

Government Grants and Subsidies 15 329 861 689 329 861 689 249 305 670

Total revenue from non-exchange transactions 329 861 689 329 861 689 249 305 670

Total Revenue 13 893 830 156 13 992 058 239 12 745 598 701

EXPENDITURE

Employee Related Costs 17 955 829 434 1 121 445 382 917 990 790

Contrib. to Provision for Bad Debts 24 161 369 583 26 918 270 70 062 300

Amortisation 19 6 787 247 6 790 300

Depreciation 19 300 064 080 310 780 000 306 001 999

Repairs and Maintenance 21 1 015 392 871 1 290 385 379 776 502 555

Interest Paid 18 167 257 378 180 266 054 226 261 126

Bulk Purchases 20 8 299 873 428 8 483 306 470 7 706 932 186

Contracted Services 22 120 902 979 191 095 520 142 220 430

General Expenses 23 223 945 166 299 476 650 255 588 783

Loss on disposal of Prop; Plant; Equip 0 5 000 9 839

Inventory write-down 27 28 519 461 525 620 1 052 602

Internal Charges 24 1 221 811 633 1 259 133 435 1 202 632 517

Total Expenditure 12 501 753 260 13 170 128 081 11 605 255 127

Operating Surplus 1 392 076 896 821 930 157 1 140 343 574

Other 26 -1 392 076 896 -827 210 466 -1 140 343 574

SURPLUS FOR THE YEAR 0 -5 280 309 0

STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2017

41



CapitalReplacement

Reserve

GovernmentGrant Reserve

Donationsand Public

Contributions Reserve

AccumulatedSurplus / (Deficit)

TOTAL

ELECTRICITY R R R R R

Opening Balance 01 July 2015 as restated 2 869 965 340 1 144 020 774 204 718 680 2 503 967 581 6 722 672 375

Surplus / (Deficit) for the year 1 140 343 574 1 140 343 574

Transfer to Capital Replacement Reserve 1 140 343 574 -1 140 343 574 0

PPE purchased -279 994 319 279 994 319 0

Transfer Grants and Contribution reserves to AccumulatedSurplus -1 144 020 774 -204 718 680 1 348 739 453,92 0

Balance at 30 June 2016 3 730 314 595 0 0 4 132 701 354 7 863 015 948

Surplus / (Deficit) for the year 0 0 0 1 392 076 897 1 392 076 897Transfer to Capital Replacement Reserve 0 0 0 0 0

PPE purchased 0 0 0 0 0

Capital Grants used to purchase PPE 0 0 0 0 0

Donated / contributed PPE 0 0 0 0 0

Contribution to Insurance Reserve 0 0 0 0 0

Insurance claims processed 0 0 0 0 0

Transfer to Housing Development Fund 0 0 0 0 0

Offsetting of Depreciation / Asset Disposals 0 0 0 0 0

Transfer Grants and Contribution reserves to AccumulatedSurplus 0 0 0 0 0

Balance at 30 June 2017 3 730 314 595 0 0 5 524 778 251 9 255 092 846

STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2017

42



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

JUNE 2017 JUNE 2017

R R

1. INVENTORIES

Stock on hand 210 443 880 127 508 927

2. RECEIVABLES FROM EXCHANGE TRANSACTIONS

Debtors for collection 3 638 017 3 883 869

Insurance Debtors 99 742 101 113 504 189

Private jobbing debtors 20 469 945 35 254 207

Prepayments 5 269 825 Other 187 483 512 185 303 786

316 603 401 337 946 051

3. VAT

Vat Payable (6 647 259)

VAT Receivable 46 000 868

46 000 868 (6 647 259)

VAT is payable on the receipts basis. Only once payment is received from debtors is VAT paid over to SARS

4. CONSUMER DEBTORS

Consumer Debtors 1 248 222 817 862 137 356

Industrial/ Commercial Debtors 593 221 248 270 957 266

1 841 444 065 1 133 094 622

Accounts receivable impairment (358 724 306) (249 531 216)

1 482 719 759 883 563 406

5. LONG TERM RECEIVABLES

Long term portions of Bursary Student loans 1 699 838

Current portion of Bursary Student Loans 829 913

JUNE 2017 JUNE 2017

R R

6. EXTERNAL BORROWINGS

External Financing Fund

Development Bank of South Africa 1 003 680 640 1 217 824 127

European Investment Bank 45 690 501 59 094 624

RMB & FRB external loans 155 960 619,27 203 279 071

Nedbank Loan 215 397 560,06 242 375 480

ABSA Loan 70 783 564 135 929 218

1 491 512 884 1 858 502 520

Short-term portion of long-term borrowings 142 934 123 222 164 642

43



7. PROPERTY, PLANT AND EQUIPMENT

30 June 2016 Land Buildings Infrastructure Plant & Equipment Total

Cost 131 747 172,15 224 091 204 7 512 593 698 837 967 480 8 706 399 553

Less: Accumulated Depreciation 40 294 489 2 548 162 784 484 761 020 3 073 218 292

Carrying value 30 June 2016 131 747 172 183 796 715 4 964 430 914 353 206 460 5 633 181 261

30 June 2017

Cost 131 747 172 723 502 150 6 787 161 617 492 260 497 8 134 671 436

Construction Work In Progress 130 263 112 1 167 793 610 5 824 120 1 303 880 843

131 747 172,15 853 765 262,63 7 954 955 227,13 498 084 617,59 9 438 552 280

Less: Accumulated Depreciation (547 362) (2 938 937 152) (431 407 510) (3 370 892 024)

Carrying amount as at 30 June 2017 131 747 172,15 853 217 900,39 5 016 018 075,07 66 677 107,96 6 067 660 256

8. INTANGIBLE ASSETS

30 June 2016 Land Rights Computer Software Total

Cost 54 622 936 79 613 103 134 236 039

Less: Accumulated Depreciation (60 516 830) (60 516 830)

Carrying value 30 June 2016 54 622 936 19 096 273 73 719 209

30 June 2017

Cost 57 133 792 92 188 355 149 322 147

Less: Accumulated Depreciation (78 478 526) (78 478 526)

Carrying amount as at 30 June 2017 57 133 792 13 709 829 70 843 621

9. PAYABLES FROM EXCHANGE TRANSACTIONS

Trade Creditors 1 470 199 847 1 246 977 866

Payments Received in Advance 36 989 129 51 891 046

Retentions 6 773 820 13 617 976

Other Creditors 1 138 985 28 792 488

Guarantees in Lieu of Deposits 693 514 715 000

1 515 795 295 1 341 994 376

STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2017

44



ACTUALS ADJUSTED BUDGET ACTUALS


10. SERVICE CHARGES

00110 - Electricity (50kwh p/house pm) 92 196 734 124 206 160 119 007 897

02790.10 - Business Cooking 33 150 869 37 073 450 33 734 376

02790.20 - Business and General 2 334 663 092 2 388 068 750 2 255 446 650

02790.30 - Private Lights 411 268 1 309 810 1 326 308

02790.40 - Two Rate - Scale 2 497 127 630 481 007 990 436 750 376

02845 - Home Power 2 3 272 189 254 1 700 761 440 3 135 221 345

02855 - Home Power 4 0 1 700 761 440 0

02875 - Industrial (11 000 Volts) 4 781 100 651 5 019 848 130 4 666 435 297

02905.10 - Industrial Water Heating 9 061 359 9 307 640 7 968 307

02935.20 - Domestic 1 054 846 195 1 031 698 130 952 722 585

Total Service Charges 12 074 747 053 12 494 042 940 11 608 613 140

11. RENTAL OF FACILITIES AND EQUIPMENT

01325- Straight-lined Operating 472 378 508 450 475 272

472 378 508 450 475 272

12. INTEREST EARNED

00815-Short Term Investments and Call Accounts -5 050 220 803 670 335 089 720

Total Interest Earned -5 050 220 803 670 335 089 720

13. INTEREST EARNED - OUTSTANDING DEBTORS

01010.50-Judgement Debts 7 514 821 32 665 980 32 707 113

7 514 821 32 665 980 32 707 113

14. OTHER INCOME

02740.10 - Prepayment Connection Fees 22 280 008 15 000 000 11 537 085

02740.20 - Conventional Connection Fees 68 682 643 65 000 000 70 742 460

02745.10 - Meter Disconnect/Reconnection Fees 1 296 584 23 290 530 21 255 514

02745.20 - Sweep Reconnection Fees 218 585 736 580 498 205


45


ANNUAL FINANCIAL STATEMENTSSTATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2017

02765 - Meter Readingt Fees 91 203 112 600 104 397

02880.20 - Lotus Park - Wheeling Charges 179 302 127 630 69 920

02880.30 - Wheeling Incentive 201 480 182 330 174 421

02900 - Street Lighting 66 229 880 66 229 880 61 529 064

01010.60 - PAFC & Insurance 3 610 229 5 788 130 2 922 158

01070.10 - Discount Received 1 168 113 0 269 237

01250.30 - Private Jobbing 1 894 615 0 4 752 159

01825-Infrastructure:Electricity 66 571 1 518 870 1 430 436

02120.10 - Training - Local Government 69 620 340 420 101 754

02120.20 - Training - Contractors 129 910 281 390 123 420

02120.30 - Training - Outside Organisations 677 905 736 820 529 835

02210 - Development Charges 28 792 476 25 000 000 68 820 643

02465 - Traffic Control -2 368 640 2 340 260 1 846 399

02505 - Promios,Corp Gifts and Curios 720 7 080 7 572

02545 - Tender Document Fees 203 566 316 030 440 150

02580 - Scrap 141 754 1 522 070 6 673 970

Total Other Income 193 566 525 208 530 620 253 828 799

15. GOVERNMENT GRANTS AND SUBSIDIES

00121 - Municipal Infrastructure Grant 0 0 0

00123 - Equitable Share 0 0 0

05145.10 - Integrated National Electrification Programme 31 000 000 31 000 000 30 000 000

05145.18 - Urban Settlement Development Grant 210 606 500 210 606 500 137 850 000

05770.11 - Equitable Share 88 255 189 88 255 190 81 455 670

Total Government Grants and Subsidies 329 861 689 329 861 690 249 305 670

16. INTERNAL INCOME

27990.3082 - Operating-Electrical -147 341 3 639 850 1 412 237

27990.3086 - Operating - Labour General Workers 107 179 135 124 402 810 112 824 616

27990.3087 - Operating - Labour Graded Staff 152 412 426 194 363 090 176 847 601

27990.3090 - Non Effective Time -55 477 432 -49 980 340 -58 517 957

27990.3091 - Non Effective - Depot Artisan Labour 0 -3 794 700 0

27990.3092 - None Effective Time - Leave -19 572 921 -21 755 140 -22 848 756

27990.3093 - Non Effective Time - Precompetent Artisan -7 140 396 -18 556 970 -11 264 066

27990.3101 - Office Rental- Drawing Office 32 760 32 770 31 212

27990.3102 - Office Rental- Mech Plant Workshops 1 103 040 1 103 060 1 050 528

27990.3103 - Office Rental- MMD Disposal Yard 1 544 400 1 544 460 1 470 912

27990.3283 - Operating- Machine Cost Recoveries 19 808 107 700 87 700

27990.3289 - Recoveries - Vehicles and Plant 62 890 467 78 402 750 62 417 071





46




Activity Based Recoveries 242 843 945 309 509 340 263 511 098

27990.1298- Expense-Insurance Claims 94 122 959 0 1 499 436

27990.1460- Dept Recoveries-Int Interests 580 085 330 0 0

Departmental Recoveries 674 208 289 0 1 499 436

27990.2050-Internal Billing-Electricity Consumption 368 310 741 394 897 460 0

27990.2070-Internal Billing-Electricity Traf 2 309 767 1 238 090 0

Internal Billing 370 620 508 396 135 550 0

Total Internal Income 1 287 672 742 705 644 890 265 010 534

17. EMPLOYEE RELATED COSTS

13020.10 - Permanet Staff 534 346 508 600 203 240 507 157 141

13020.20 - Temporary Staff 2 856 251 3 617 900 6 190 962

13040.20 - Performance Bonus Provision 0 1 768 800

13070.20 - Meal Allowance 2 925 130 1 287 300 2 292 842

13090.10 - Cell Phone Allowances 3 722 544 3 950 100 3 592 339

13090.20 - Telephone Allowance 1 329 1 400 0

13125 - Incidental: Housing Benefits 5 164 906 5 218 321 4 707 475

13140 - Payments in Lieu of Leave 0 17 737 500 12 256 710

13160.10 - Locomotion Allowances 46 405 601 45 078 300 42 799 429

13160.20 - Travel Allowance 156 439 271 800 215 580

13190 - Non Structured Overtime 123 022 437 17 078 700 104 182 203

13195 - Structured Overtime 1 921 240 109 983 550 0

13200.20 - Shift Allowance 0 219 800 0

13205 - Night Shift 2 318 665 2 118 000 1 889 053

13225 - Annual Bonus 42 157 843 61 167 900 39 327 38413245 - Scarcity Allowance 37 538 944 37 539 799 36 768 682

13310 - Medical Aid 49 877 924 55 475 880 45 749 841

13315 - Pension 93 883 908 133 944 201 87 795 488

13320 - Unemployment Insurance Fund 4 149 389 4 668 070 3 954 545

13342.20 - Pensioners Medical Aid 13 621 710 13 621 710 12 636 084

13370.10 - Council Pensioners 6 493 110 6 493 110 6 475 032

13030 - Basic Salary and Wages-Capitalised Offset -14 734 445 0 0

Total Employee Related Costs 955 829 434 1 121 445 382 917 990 790

18. INTEREST PAID

13635 - Annuity Loans 167 245 073 167 245 074 196 316 307

13740 - Consumer Deposits 12 305 13 020 980 29 944 819





47



Total of Interest Paid 167 257 378 180 266 054 226 261 126

19. DEPRECIATION

19.1 Amortisation

11910 - Intangible Assets -2 492 0 0

11915 - Servitudes 349 246 350 000 0

11925 - Computer Software and Application 6 440 494 6 440 300 0

6 787 247 6 790 300 0

19.2 Depreciation

12060 - Computer Equipment 5 383 594 5 436 180 0

12080 - Furniture and Office Equipment 2 098 325 2 153 780 0

12110 - Electrical Infrastructure 228 444 723 238 655 110 306 001 999

12300 - Machinery and Equipment 27 655 273 27 514 040 0

12320 - Transport Assets 32 662 215 33 165 500 0

12375 - Other Assets 3 819 950 3 855 390 0

300 064 080 310 780 000 306 001 999

Total Depreciation and Amortisation 306 851 327 317 570 300 306 001 999

24. BULK PURCHASES

10310.10 - Network Demand Charge 2 998 312 5 997 060 2 779 713

10310.11 - Dist.Network Charge 5 567 041 5 572 890 4 931 397

10310.12 - Key Customer Service Charge 1 265 521 1 277 900 1 176 514

10310.13 - Energy Charge (Peak) 2 372 226 705 2 484 815 920 2 187 635 522

10310.14 - Energy Charge (Std) 2 832 120 191 2 859 601 700 2 626 592 577

10310.15 - Energy Charge (Off) 1 734 368 949 1 761 066 290 1 622 071 586

10310.16 - Rate Rebalancing Levy 763 722 079 768 110 980 711 072 448

10310.18 - Eskom - Admin. Charge 233 052 239 440 212 096

10310.19 - Transmission Network Charge 227 949 285 228 005 250 211 389 999

10310.20 - Residual Connection Charge 501 552 540 970 507 506

10310.21 - KVARH Surcharge 0 51 490 0

10310.23 - Streelighting 0 8 613 650 2 419 931

10310.24 - Reliability Charge 34 406 110 34 897 220 32 305 251

10310.25 - Urban Low Voltage Subsidy 319 895 545 319 896 320 296 494 826

10350.10 - Tongaat Hullet Sugar Mil 3 665 247 3 665 500 6 691 643

10350.11 - Co-Generation Energy 953 840 953 890 651 178

Total Bulk Purchases 8 299 873 428 8 483 306 470 7 706 932 186



48




21. REPAIRS AND MAINTENANCE

11065 - Electrical 26 843 329 26 858 620 6 738 415

11430 - Electrical 623 101 714 897 479 790 628 200 502

11460 - First Aid 298 498 298 490 84 000

11560 - Maintenance of Buildings and F 9 693 729 11 591 640 4 991 009

11570 - Maintenance of Equipment 9 952 446 12 743 550 15 132 386

11650 - Prepaid Electricity Vendors 9 362 601 13 380 780 7 383 893

11690 - Traffic and Street Lights 78 949 772 79 012 540 64 222 437

758 202 089 1 041 365 410 726 752 642

Repairs and Maintenance-External

27999.7066 - Operating-Labour 185 677 318 136 257 259 1 039 254

27999.7172 - Vehicle, Plant and Equipment 54 828 829 90 762 710 0

Repairs and Maintenance-Internal 240 506 148 227 019 969 1 039 254

14300-Material and Supplies 18 485 927 22 000 000 48 710 660

14310-Vehicle and Plant Capital -1 801 292 0 0

Repairs and Maintenance-Materials and Supplies 16 684 634 22 000 000 48 710 660

Total Repairs and Maintenance 1 015 392 871 1 290 385 379 776 502 555

22. CONTRACTED SERVICES

10947 - Forensic Investigators 1 642 368 4 600 000 3 852 977

10955 - Medical Examinations 11 185 11 500 0

10985.11- Monitoring & Evaluation 1 829 250 5 337 040 4 340 297

11440.10 - Employee Assistance Programme 526 10 530 2 426

10580 - Occupational Health and Safety 276 629 465 590 919 311

10595 - Research and Advisory 0 350 000 0

10600 - Qualification Verification 0 35 090 0

10640 - Cleaning Services 4 525 386 5 704 760 4 422 564

10650.10 - Bush Clearing 10 571 743 19 063 790 4 637 589

10650.13 - Ground Maintenance 19 631 84 790 3 063

10720.10 - Consult Fees and Disbursement 497 260 1 749 920 1 562 396

10720.11 - Contract Meter Reading 2 987 805 4 777 340 3 771 913

10720.12 - Illegal Services 9 193 701 9 731 980 9 340 259

10720.13 - Inspects-Meter Sweep (Tamp 0 23 674 080 13 160 899

10795 - Electricity 11 505 637 25 316 400 17 772 901

10840.12 - External Security 77 841 857 90 182 710 78 433 834

Total Contracted Services 120 902 979 191 095 520 142 220 430



49



23. GENERAL EXPENSES

14105.17- Cleaning Materials 201 176 294 090

14105.18 - Computer Stationery 1 530 015 1 531 450 1 502 686

14105.19 - Consumables 767 147 847 310 1 828 264

14105.28 - Identity Cards 0 5 250 0

14105.32 - Mechanical Training Expenses 403 616 732 050 210 588

14105.34 - Oil 77 024 294 090 0

14105.43 - Purchase of Paper-General 18 889 294 090 0

14105.44 - Purchase of Paper- Direct 150 294 090 0

14105.45 - Refuse Bags 2 697 294 090 0

14105.47 - Spares 808 450 1 139 470 716 604

14105.48 - Stationery 1 672 383 2 425 620 1 569 358

14105.51 - Vending Consumables 17 894 28 890 57 871

14110.10 - Fuel 17 726 942 18 791 590 17 051 770

Consumable Stores 23 226 383 26 972 081 22 937 143

15200 - Buildings 9 386 200 11 974 860 7 655 438

15400- Furniture and Office Equipment 246 661 394 000 359 965

15900 - Machinery and Equipment 1 416 916 1 418 450 1 352 871

Operating Leases 11 049 777 13 787 310 9 368 274

16325 - Gifts and Promotional Items 699 690 834 670 347 972

16330 - Municipal Newsletters 0 64 300 0

16345 - Tenders 39 665 40 000 0

16405 - Computer Hardware and Accessories 1 103 300 2 602 930 2 061 007

16425 - Minor Equipment Purchases 1 807 321 1 842 380 1 588 267

16435 - Safety Equipment 338 338 525 560 247 478

16605.30 - Bank Charges- Nedbank 63 252 130 101 218

17000 - Bursaries (Employees) 2 839 863 2 840 000 2 184 263

17100 - Cash Discount 0 -2 199 490 0

17305 - Laundry Services 327 884 335 720 178 453

17410- Prepaid Electricity 32 582 174 32 582 240 30 409 749

17705.20 - Cellphone 21 500 22 420 84 354

17710 - Licences (Radio and Television 15 765 27 980 0

17715 - Postage/Stamps/Franking Machin 25 673 89 340 37 340

17735 - SMS Bulk Message Service 4 069 299 4 298 500 3 880 285

17740.10 - Telephones 7 300 263 7 412 420 4 305 394

17750 - Telephone Instalations 25 878 184 070 107 231

18105 - Drivers Licence 298 770 298 840 30 762

18110 - Public Drivers Permits 52 128 151 400 58 912

18515 - Senior Management 155 528 156 550 128 187

18620.20 - Internet Charges 0 20 700 27 063



50




18630 - Network Extensions 420 684 422 220 96 804

18645 - Software Licences 9 974 118 15 302 280 11 769 145

18655.20 - Contractors - Computers 13 432 671 21 594 300 15 747 203

18655.30 - Software Support/ Maintenance 1 870 892 3 461 390 1 355 019

19050 - Indigent Relief 1 937 525 1 937 600 2 088 454

19510 - Motor Vehicle Licence and Registration 3 192 713 3 193 790 3 153 072

19925 - National 164 278 39 090 0

19930 - International 179 572 211 240 1 171 686

20010 - Information Search 0 7 350 239

20200 - Office Decorations 4 419 11 190 577

20305 - Books, Publications & Periodic 68 061 164 790 33 843

20320 - Newspapers 3 219 209 670 168 652

20325 - Printing & Bookbinding 186 104 186 120 0

20330 - Training Material 173 235 561 830 241 131

20400 - Professional Bodies, Membership fees 514 123 650 991 443 315

20700 - Rewards Incentives 0 55 130 0

20800 - Road Worthy Test 0 27 480 0

21305 - Storage of Files (Archiving) 183 709 206 200 97 072

21310 - Scanning of Documents 0 48 320 0

21820 - Municipal Activities 5 730 840 25 385 230 12 891 937

21920 - Accomodation 485 531 122 560 0

21930 - Daily Allowance -213 365 182 560 0

21940 - Food and Beverages 1 435 22 560 0

21950 - Incidental Cost 1 480 381 350 247 70521965 - Car Rental 94 100 122 560 0

22005 - Air Transport 669 806 722 560 2 849 530

22040 - Accomodation 19 450 22 560 0

22050 - Daily Allowance 39 710 62 560 0

22060 - Food and Beverages 16 567 22 560 0

22070 - Incidental Cost 2 808 22 560 0

22085 - Car Rental 5 800 22 560 0

22115 - Air Transport 63 806 122 560 0

22160 - Transport 29 718 106 590 146 808

22200 - Uniform and Protective Clothing 6 516 161 6 516 130 5 995 049

26100- Electricity (50kwh p/house pm) 92 196 734 124 206 160 119 008 191

Operational Cost 189 669 006 258 717 260 223 283 367

Total General Expenses 223 945 166 299 476 650 255 588 783





51



24. INTERNAL CHARGES

27999.7067 - Operating Labour- Festive Lighting 48 209 49 000 1 821 256

27999.7075 Office Rent - Branch Office 11 727 163 14 037 570 1 207 212

27999.7090 - Activity Based Printing 1 414 561 311 660 134 807

27999.7160 - Activity Based Training 2 400 2 400 0

Charges 13 192 332 14 400 630 3 163 275

27999.5022 - Acctng - Annual Financial 3 685 269 3 760 720 3 907 751

27999.5023 - Acctng - Capital 516 426 569 880 0

27999.5081 - Audit, Invest & Risk-Audit 2 339 421 9 005 670 8 925 154

27999.5082 - Audit, Invest & Risk-Ci 4 017 700 4 432 490 4 432 492

27999.5101 - Budgets- Budget Office 795 326 795 640 0

27999.5166 - IT System App- Info Ser 16 390 350 16 390 350 16 611 064

27999.5181 - IT Radio Maint - Radio R 1 530 912 1 530 912 2 152 857

27999.5202 - Cross Subsi-Elec Serv 236 567 760 236 567 760 225 302 628

27999.5207 - Cross Subsid- Trading Co 573 182 250 573 182 250 545 887 860

27999.5208 - Cross Subsid- Addl Contr 164 180 990 164 180 990 156 362 844

27999.5221 - Democractic Process-Comm 987 623 988 117 729 924

27999.5261 - Employee Benefits - Housi 716 500 716 500 737 492

27999.5301 - Expense - Bank Reconcilia 1 080 806 1 328 670 1 317 737

27999.5303 - Expense - Investments 10 109 2 427 620 688 908

27999.5305 - Expense - Skills Developm 3 849 600 3 849 600 3 615 890

27999.5306 - Expense - Vehicle Monitor 2 666 600 2 929 120 2 618 800

27999.5307 - Expense - Vehicle Capex A - 100 000 0

27999.5341 - General Admin - Travel Booking 28 037 50 534 0

27999.5351 - Green Elec - Bisassar Road 25 400 494 25 442 483 25 864 562

27999.5352 - Green Elec - Marianhill Landfill 3 449 171 3 452 157 5 363 716

27999.5362 - HR Recruitment - HR Services 17 185 338 17 185 338 16 780 624

27999.5381 - Insurance Fees - Insurance 10 226 1 259 190 869 233

27999.5382 - Insurance Fees - Insurance 37 795 994 44 111 271 51 622 073

27999.5521 - Legal Services - Legal Services 1 618 137 1 706 120 1 706 120

27999.5541 - Mngmnt Support - Executive - 344 500 566 553

27999.5580 - Dept Charges - Municipal M 344 500 3 199 240 0

27999.5601 - OHS & Employment Wellness C 2 145 609 2 145 609 1 757 961

27999.5602 - OHS & Employment Wellness M 2 854 226 2 854 226 1 920 891

27999.5603 - OHS & Employment Wellness P 44 672 46 000 0

27999.5661 - Payroll - Pay Admin 4 349 840 332 580 246 766

27999.5721 - Procurement - Contract Mgmnt 256 228 345 413 189 007

27999.5722 - Procurement - Policy Enforcement 2 143 943 2 782 534 2 032 822

27999.5727 - Procurement - Tenders & C - 991 134 992 970

27999.5750 - Dept Charges - Rates Charges 3 870 361 10 583 110 11 188 768

27999.5781 - Revenue Mngmt - Consolidated 50 891 287 66 715 170 57 040 264





52




27999.5782 - Revenue Mngmnt - Regional 750 840 750 840 14 037 570

27999.5801 - Security - Security Servs 3 905 904 3 905 900 3 905 900

27999.5882 - Training & Dev- Skills Dev 5 967 545 5 968 700 4 942 026

27999.5900 - Dept Charges - Valuations 752 774 753 469 693 100

Departmental Charges 1 176 282 767 1 217 681 807 1 175 012 327

27999.6050 - Int Billing-Electricity Consumption 23 972 990 17 995 850 17 728 362

27999.6131 - Refuse Removal 4 647 467 904 700 802 903

27999.6140 - Int Billing- Sanitation 0 2 768 964 0

27999.6150 - Int Billing- Water Consumption 3 716 077 5 381 484 5 925 650

Internal Billing 32 336 533 27 050 998 24 456 915

Total Internal Charges 1 221 811 633 1 259 133 435 1 202 632 517

25. BAD DEBTS

29275 - Impairment Loss-Infrastructure-Electricity 8 858 250 0 64 668

29345 - Impairment Loss - Electricity 152 511 333 27 562 500 71 194 022

161 369 583 27 562 500 71 258 690

Less:

01020 - Operational Revenue- Bad Debts Recovered 0 -644 230 -1 196 390

Total Bad Debts 161 369 583 26 918 270 70 062 300

26. OTHER

29925 - Contribution to Capital Grants 0 353 606 500 0

29930 - Depreciation Offset 0 -52 093 130 0

29920 - Contribution to Capital Replacement Reserve 0 525 697 096 1 140 343 574

29620 - Losses 28 465 790 525 620 0

29640 - Write-down to net-realisable Value 53 671 0 1 052 602

Total Other 28 519 461 827 736 086 1 141 396 176





53



Revenue Items

The following expenditure items which had been reflected under revenue items have been reclassified in line with MSCOA requirements.

Items Reclassified Ellipse Item number

Amount Category Classified to/from:

Service Charges :

27999.6050-Internal Billing-Electricity 20300 17 728 362,00 to internal charges

26100-Electricity/other energy (50kw per household)

20385 119 008 191,00

to general expenses

02900-Street Lighting 00110 61 529 064,00 to service charges

198 265 617

Expenditure Items

The following expenditure accounts had been reclassified to different categories in line with MSCOA requirements :

Items Reclassified Ellipse Item number

Amount Category Classified to/from:

Employee Related Costs:

17000 - Bursaries (Employees) 10409 -382 341,00 to general expenses

22200 - Uniform and Protective Clothing 10501 -5 995 049,00 to general expenses

17000 - Bursaries (Employees) 10502 -1 801 922,00 to general expenses

22160 - Transport 10503 -146 808,00 to general expenses

10720.10 - Consult Fees and Disbursement 10507 -22 415,00 to contracted services

13030 - Basic Salary and Wages-Capitalised Offset

10509 24 529 206,00 from internal charges

16 180 671

Repairs and Maintenance:

16405 - Computer Hardware and Accessories 30236 -2 061 007 to general expenses

18655.30 - Software Support/ Maintenance 30150 -214 620 to general expenses



10985.11- Monitoring & Evaluation 30194 -4 340 297 to contracted services

14105.47 - Spares 30330 -716 604 to general expenses

17750 - Telephone Instalations 30304 -107 231 to general expenses

18630 - Network Extensions 30153 -96 804 to general expenses

10310.23 - Streelighting 30110 -2 419 931 to bulk purchases

10650.13 - Ground Maintenance 30220 -3 063 to contracted services

10650.10 - Bush Clearing 30310 -4 637 589 to contracted services

11690 - Traffic and Street Lights 20301 61 529 064 from streetlighting

11065 - Electrical 20240 6 738 415 from contracted services

11650 - Prepaid Electricity Vendors 20257 7 376 061 from contracted services

11560 - Maintenance of Buildings and F 20745 4 411 from general expenses

27. RECLASSIFICATION DUE TO MSCOA IMPLEMENTATION The municipality has implemented MSCOA(Municipal Standard Chart of Accounts) effective 01 July 2016. This introduction of MSCOA has resulted in a requirement to reclassify certain items of Revenue and Expenditure to different categories or expenses to be included in different line items. The reclassification is aimed at making the Financial Statements more useful and understandable to the users.

11460-First Aid 20370 84 000 from general expenses

27999.7066- Operating-Labour 20560 1 039 254 from general expenses

27999.7066- Operating-Labour 20441 -2 482 964 from general expenses

27999.7172- Vehicle, Plant and Equipment 20443 -10 790 257 from general expenses

27999.7066- Operating-Labour 20440 2 482 964 from internal charges

27999.7172- Vehicle, Plant and Equipment 20442 10 790 257 from internal charges

27999.7066- Operating-Labour 30134 167 692 719 from internal charges

27999.7172- Vehicle, Plant and Equipment 30136 24 302 390 from internal charges

253 094 883

Bulk Purchases:

27999.5352 - Green Elec - Marianhill Landfill 00908 -5 363 716 to internal charges

27999.5351 - Green Elec - Bisassar Road 00911 -25 864 562 to internal charges

10310.23 - Streelighting 30110 2 419 931 from repairs and maintenance

-28 808 347

Contracted Services:

10947-Forensic Investigators 20382 3 852 977 from general expenses

10985.11-Monitoring & Evaluation 30194 4 340 297 from repairs and maintenance

11440.10 - Employee Assistance Programme 20415 2 426 from general expenses

10580-Occupational Health and Safety 20695 919 311 from general expenses

10650.10 - Bush Clearing 30310 4 637 589 from repairs and maintenance

10650.13 - Ground Maintenance 30220 3 063 from repairs and maintenance

10720.10 - Consult Fees and Disbursement 10507 22 415 from employee costs

10720.12 - Illegal Services 20422 9 340 259 from general expenses

10720.13 - Inspects-Meter Sweep (Tamp 20425 13 160 899 from general expenses

11065-Electrical 20240 -6 738 415 to repairs and maintenance


11650-Prepaid Electricity Vendors 20257 -7 376 061 to repairs and maintenance

18655.20 - Contractors - Computers 20255 -15 747 203 to general expenses

6 351 444

General Expenses:

27999.7090 - Activity Based Printing 20160 -134 807 to internal charges

27999.7067 - Operating Labour- Festive Lighting

20360 -1 821 256 to internal charges

11460-First Aid 20370 -84 000 to repairs and maintenance

10947-Forensic Investigators 20382 -3 852 977 to contracted services

11440.10 - Employee Assistance Programme 20415 -2 426 to contracted services

29275-Impairment Loss-Infrastructure-Electricity

20421 -64 668 to Provision for Bad Debt

10720.12 - Illegal Services 20422 -9 340 259 to contracted services

10720.13 - Inspects-Meter Sweep (Tamp 20425 -13 160 899 to contracted services

27999.5382 - Insurance Fees - Insurance 20430 -51 622 073 to internal charges

27999.7066- Operating-Labour 20441 2 482 964 to internal charges

27999.7172- Vehicle, Plant and Equipment 20443 10 790 257 to internal charges

54


29640 - Write-down to net-realisable Value 20550 -1 052 602 to other 27999.7066 - Operating-Labour 20560 -1 039 254 to internal charges

27999.5301 - Expense - Bank Reconcilia 20590 66 117 to internal charges

27999.5181 - IT Radio Maint - Radio R 20630 -2 152 857 to internal charges

27999.6131 - Refuse Removal 20660 -802 903 to internal charges

10580-Occupational Health and Safety 20695 -919 311 to contracted services

27999.5301 - Expense - Bank Reconcilia 20710 -460 401 to internal charges

27999.5305 - Expense - Skills Developm 20714 -3 615 890 to internal charges

11560 - Maintenance of Buildings and F 20745 -4 411 to repairs and maintenance

27999.6150 - Int Billing- Water Consumption 20840 -5 925 650 to internal charges

14105.47 - Spares 30330 716 604 from repairs and maintenance

16405 - Computer Hardware and Accessories 30236 2 061 007 from repairs and maintenance

16605.30 - Bank Charges- Nedbank 29301 101 218 from internal charges

17000 - Bursaries (Employees) 10409 382 341 from employee costs

17000 - Bursaries (Employees) 10502 1 801 922 from employee costs

17750 - Telephone Instalations 30304 107 231 from repairs and maintenance

18630 - Network Extensions 30153 96 804 from repairs and maintenance

18655.20 - Contractors - Computers 20255 15 747 203 from contracted services

18655.30 - Software Support/ Maintenance 30150 214 620 from repairs and maintenance



18655.30 - Software Support/ Maintenance 20241 66 114 from contracted services

22160 - Transport 10503 146 808 from employee costs

22200 - Uniform and Protective Clothing 10501 5 995 049 from employee costs

26100-Electricity/other energy (50kw per household)

20385 119 008 191 from service charges

64 802 091

Internal Charges:

13030 - Basic Salary and Wages-Capitalised Offset

10509 -24 529 206 to employee related costs

27999.7066- Operating-Labour 20440 -2 482 964 to repairs and maintenance

27999.7172- Vehicle, Plant and Equipment 20442 -10 790 257 to repairs and maintenance

16605.30 - Bank Charges- Nedbank 29301 -101 218 to general expenses

27999.7066 - Operating-Labour 30134 -167 692 719 to repairs and maintenance

27999.7172 - Vehicle, Plant and Equipment 30136 -24 302 390 to repairs and maintenance

27999.7067 - Operating Labour - Festive Lighting

20360 1 821 256 from general expenses

27999.7090 - Activity Based Printing 20200 134 807 from general expenses

27999.5181 - IT Radio Maint - Radio R 20630 2 152 857 from general expenses

27999.5202 - Cross Subsi-Elec Serv 50121 225 302 628 from cross subsidisation

27999.5207 - Cross Subsid- Trading Co 50120 545 887 860 from cross subsidisation

27999.5208 - Cross Subsid- Addl Contr 50122 156 362 844 from cross subsidisation

27999.5301 - Expense - Bank Reconcilia 20710 460 401 from general expenses

27999.5301 - Expense - Bank Reconcilia 20590 -66 117 from general expenses

27999.5305 - Expense - Skills Developm 20714 3 615 890 from general expenses

27999.5351 - Green Elec - Bisassar Road 00911 25 864 562 from bulk purchases



27999.5352 - Green Elec - Marianhill Landfill 00908 5 363 716 from bulk purchases

27999.5382 - Insurance Fees - Insurance 20430 51 622 073 from general expenses

27999.6050 - Internal Billing-Electricity 20300 17 728 362 from service charges

27999.6131 - Refuse Removal 20660 802 903 from general expenses

27999.6150 - Int Billing- Water Consumption 20840 5 925 650 from general expenses

813 080 937

28. LOSS IN ELECTRICITY DISTRIBUTION

Estimated Electricity losses 844 488 772 kWh (2016: 1 197 963 034 kWh) occurred during the year under review which

resulted in revenue losses to the municipality. These estimated kWh losses amounted to R 632m (2016: R828m). The

national norm for electricity losses ranges from 5.0% to 12%. The loss incurred by the municipality is 7.58 % (2016: 10.71%)

and is due to a combination of transmission/distribution losses and losses due to illegal connections.

Note: The kWh sales for Residential and Business customers has been based on the daily averages (RDA) as opposed

to the actual meter reading per cycle. This adjustment was implemented to mitigate carrying over sales figures from the

previous year, as there has been a migration to a new billing system in June 2016 and the meter reading upload cycles were

affected.

29. CAPITAL COMMITMENTS JUNE 2017 R

JUNE 2016 R

Commitments in respect of Capital Expenditure:

Infrastructure 84 300 369 83 131 937

Land and Builidings 51 863 988 59 352 798

Total 136 164 357 142 484 736

30. OPERATING COMMITMENTS

Contracted For:

Payable in one year 170 268 784 70 517 284

Payable within two to three years 121 988 748 14 322 112

Payable after three years 1 112 293 2 800 102

293 369 825 87 639 498

55


STATISTICAL DATASTATIST ICAL DATA AND F INANCIAL PERFORMANCE

CUSTOMER BASE STATISTICS

09/10 10 / 11 11/12 12/13 13/14 14/15 15/16 16/17

NUMBER OF CUSTOMERSBusiness & General Cust. 45 007 44 213 43 879 44 654 44 344 44 164 44 172 44 196

Private Residences Cust. 327 002 324 044 321 904 322 844 319 875 311 817 310 333 323 313

Other Cust. 4 4 4 4 4 4 4 4

Bulk Cust. 769 821 819 888 959 1 009 1 040 1041

Prepayment Cust. 289 946 305 977 333 434 342 705 358 411 367 483 378 456 380 513

Total Cust. 662 728 675 059 700 040 711 095 723 593 724 477 734 005 749 067

SECTOR OF USE Units

Business & General kWh 2 662 458 083,00 2 921 756 029,86 2 723 355 859,50 2 367 758 535 2 263 456 147 2 042 812 264 1 968 393 447 2 092 228 392

Private Residences kWh 2 826 464 091,00 2 500 569 275,50 2 495 936 487,20 2 680 118 904 2 644 041 922 2 505 800 359 2 271 613 260 2 584 893 483

Other kWh 39 678 620,00 41 785 554,36 86 221 641,38 95 297 605 112 538 964 118 165 912 124 074 208 130 277 918

Bulk kWh 4 621 341 025,00 4 582 863 944,54 4 666 663 005,54 4 781 979 791 4 688 943 005 4 641 845 461 4 725 934 395 4 631 118 430

Prepayment kWh 774 714 890,00 789 573 651,50 826 397 418,54 819 810 059 840 892 154 878 206 982 894 271 613 851 776 817

Total kWh 10 924 656 709,00 10 836 548 455,76 10 798 574 412 10 744 964 894 10 549 872 192 10 186 830 978 9 984 286 923 10 290 295 040

UNITS GROWTH Units

Business & General kWh 20,73% 9,74% -6,79% -13,06% -4,41% -9,75% -3,64% 6,29%

Private Residences kWh -2,57% -11,53% -0,19% 7,38% -1,35% -5,23% -9,35% 13,79%

Other kWh 5,31% 5,31% 106,34% 10,53% 18,09% 5,00% 5,00% 5,00%

Bulk kWh -8,27% -0,83% 1,83% 2,47% -1,95% -1,00% 1,81% -2,01%

Prepayment kWh 4,91% 1,92% 4,66% -0,80% 2,57% 4,44% 1,83% -4,75%

Total kWh 0,04% -0,81% -0,35% -0,50% -1,82% -3,44% -1,99% 3,06%

INCOME Units

Business & General Rand 1 391 466 489,00 1 767 021 295,70 2 064 278 962 2 232 766 352 2 486 098 587 2 448 927 248 2 733 899 709 2 981 864 026

Private Residences Rand 1 783 179 755,00 2 153 301 353,00 2 534 662 071 2 710 411 169 2 772 408 183 2 842 228 419 3 135 221 345 3 356 733 252

Other Rand 25 294 174,00 36 500 000,00 51 154 591 51 019 905 50 940 590 56 883 781 64 701 771 66 229 880

Bulk Rand 2 091 798 008,00 2 658 783 133,00 3 207 748 156 3 635 164 500 3 744 530 467 4 194 313 701 4 666 435 297 4 790 383 781

Prepayment Rand 494 949 284,00 584 894 116,00 695 382 979 757 018 411 813 908 747 888 967 960 952 722 585 1 147 118 851

Total Rand 5 786 687 710 7 200 499 898 8 553 226 758 9 386 380 338 9 867 886 574 10 431 321 108 11 552 980 707 12 342 329 790

CENTS/UNIT Units

Business & General Cents 52,26 60,48 75,80 94,30 109,84 119,88 138,89 142,52

Private Residences Cents 63,09 86,11 101,55 101,13 104,85 113,43 138,02 129,86

Other Cents 63,75 87,35 59,33 53,54 45,26 48,14 52,15 50,84

Bulk Cents 45,26 58,02 68,74 76,02 79,86 90,36 98,74 103,44

Prepayment Cents 63,89 74,08 84,15 92,34 96,79 101,23 106,54 134,67

Total 52,97 66,45 79,21 87,36 93,54 102,40 115,71 119,94

56


STATISTICAL DATACUSTOMER BASE STATISTICS

AVE UNITS/MNTH/CUST Units

Business & General kWh 4930 5507 5 172 4 419 4 254 3 855 3 714 3 945

Private Residences kWh 720 643 646 692 689 670 610 666

Other kWh 826638 870532 1 796 284 1 985 367 2 344 562 2 461 790 2 584 879 2 714 123

Bulk kWh 500796 465171 474 833 448 759 407 451 383 370 378 681 370 727

Prepayment kWh 223 215 207 199 196 199 197 187

Total 1374 1338 1 285 1 259 1 215 1 172 1 134 1 154

AVE RANDS/MONTH/CUST Units

Business & General Rand 2 576,39 3 330,51 3 920,40 4 167 4 672 4 621 5 158 5 622

Private Residences Rand 454,43 553,76 656,16 700 722 760 842 865

Other Rand 526 961,96 760 416,67 1 065 720,64 1 062 915 1 061 262 1 185 079 1 347 954 1 379 789

Bulk Rand 226 679,45 269 872,43 326 388,70 341 138 325 385 346 408 373 913 383 476

Prepayment Rand 142,25 159,30 173,79 184 189 202 210 251

Total 727,63 888,87 1 018,18 1 100 1 136 1 200 1 312 1 373

57


STATISTICAL DATASTATIST ICAL DATA AND F INANCIAL PERFORMANCE

MAXIMUM DEMAND AND ENERGY SALES PER ANNUM

Year MaximumkVA PercentGrowth

Energy(kWh) sold

PercentGrowth

Energy (kWh)Purchased

PercentGrowth

PercentLoss

Power Factorat System Peak

Average Monthly Load Factor

Number ofCustomers

78/79 804 613 4,23% 4 335 416 770 6,21% 4 563 596 600 6,22% 5,00% 175 443 79/80 853 345 6,06% 4 618 422 364 6,53% 4 872 542 450 6,77% 5,22% 91,60% 72,91% 181 261

80/81 960 246 12,53% 5 034 342 435 9,01% 5 288 290 000 8,53% 4,80% 96,30% 71,82% 198 892

81/82 1 075 492 12,00% 5 624 814 026 11,73% 5 981 248 000 13,10% 5,96% 89,60% 73,00% 198 338

82/83 1 051 830 -2,20% 4 998 457 230 -11,14% 5 201 796 550 -13,03% 3,91% 93,00% 71,40% 205 961

83/84 1 060 522 0,83% 5 435 381 442 8,74% 5 680 986 500 9,21% 4,32% 92,00% 71,10% 214 095

84/85 1 078 638 1,71% 5 859 883 622 7,81% 6 145 270 000 8,17% 4,64% 93,00% 71,89% 223 420

85/86 1 084 951 0,59% 6 105 393 784 4,19% 6 464 060 277 5,19% 5,55% 94,00% 73,37% 228 193

86/87 1 126 872 3,86% 6 373 238 576 4,39% 6 689 247 137 3,48% 4,72% 99,60% 71,21% 237 857

87/88 1 151 613 2,20% 6 590 701 115 3,41% 6 889 777 935 3,00% 4,34% 97,20% 70,47% 245 831

88/89 1 196 636 3,91% 6 986 105 898 6,00% 7 337 830 336 6,50% 4,79% 98,40% 72,73% 252 518

89/90 1 232 618 3,01% 7 201 068 113 3,08% 7 634 669 960 4,05% 5,68% 100,00% 72,92% 284 661

90/91 1 268 538 2,91% 7 426 490 766 3,13% 7 697 377 076 0,82% 3,52% 100,00% 73,87% 290 070

91/92 1 286 335 1,40% 7 548 660 345 1,65% 7 928 532 199 3,00% 4,79% 97,50% 72,90% 299 948

92/93 1 313 385 2,10% 7 688 164 852 1,85% 8 145 319 531 2,73% 5,61% 100,00% 70,80% 329 969

93/94 1 383 431 5,33% 8 047 317 773 4,67% 8 494 913 446 4,29% 5,27% 99,90% 72,80% 359 516

94/95 1 426 277 3,10% 8 202 460 186 1,93% 8 738 907 153 2,87% 6,14% 99,90% 72,90% 386 361

95/96 1 469 256 3,01% 8 419 518 677 2,65% 9 021 770 028 3,24% 6,68% 99,90% 73,46% 428 035

96/97 1 585 122 7,89% 8 941 330 717 6,20% 9 571 358 173 6,09% 6,58% 99,90% 74,37% 451 751

97/98 1 585 060 0,00% 9 183 151 356 2,70% 9 813 695 486 2,53% 6,43% 99,90% 76,26% 477 416

98/99 1 601 635 1,05% 9 073 412 900 -1,19% 9 851 495 987 0,39% 7,90% 99,90% 76,55% 505 501

99/00 1 572 339 -1,83% 9 195 922 772 1,35% 9 956 607 592 1,07% 7,64% 98,60% 77,37% 523 176

00/01 1 592 211 1,26% 9 407 440 209 2,30% 10 105 748 000 1,50% 6,91% 98,60% 78,52% 525 551

01/02 1 610 173 1,13% 9 589 115 852 1,93% 10 224 641 034 1,18% 6,22% 98,10% 79,45% 548 702

02/03 1 650 089 2,48% 10 015 115 502 4,44% 10 552 641 000 3,21% 5,09% 98,00% 78,49% 533 527

03/04 1 667 942 1,08% 10 290 977 595 2,75% 10 803 947 948 2,38% 4,75% 99,90% 74,15% 564 527

04/05 1 765 855 5,87% 10 457 948 645 1,62% 11 053 953 456 2,31% 5,39% 99,80% 76,53% 585 130

05/06 1 783 038 0,97% 10 556 793 479 0,95% 11 186 048 110 1,19% 5,63% 99,90% 72,75% 602 455

06/07 1 857 178 4,16% 10 963 525 073 3,85% 11 580 771 534 3,53% 5,33% 98,13% 73,98% 617 247

07/08 1 890 043 1,77% 11 163 191 492 1,82% 11 751 787 312 1,48% 5,01% 97,27% 75,90% 632 112

08/09 1 897 005 0,37% 10 920 221 425 -2,18% 11 504 658 024 -2,10% 5,08% 95,65% 74,42% 647 636

09/10 1 812 881 -4,43% 10 924 656 709 0,04% 11 495 870 884 -0,08% 5,00% 95,57% 74,24% 662 727

10/11 1 817 870 0,28% 10 836 548 456 -0,81% 11 467 431 990 -0,25% 5,50% 95,46% 75,00% 675 059

11/12 1 893 125 4,14% 10 798 574 412 -0,35% 11 463 371 189 -0,04% 5,80% 99,18% 74,42% 700 040

12/13 1 828 468 -3,42% 10 744 964 894 -0,50% 11 412 377 063 -0,44% 5,85% 98,91% 74,55% 711 095

13/14 1 756 716 -3,92% 10 549 872 192 -1,82% 11 236 882 178 -1,54% 6,11% 98,31% 76,03% 723 593

14/15 1 713 185 -2,48% 10 186 830 978 -3,44% 11 036 257 467 -1,79% 7,70% 98,38% 76,83% 724 477

15/16 1 713 437 0,01% 9 984 286 923 -1,99% 11 182 249 957 1,32% 10,71% 99,24% 76,31% 734 005

16/17 1 729 268 0,92% 10 290 295 040 3,06% 11 134 783 813 -0,42% 7,58% 99,27% 74,63% 743 331

58


NOTES

1 Jelf Taylor CrescentPO Box 147, Durban

031 311 1111Contact Centre: 080 311 11 11

Email: [email protected]