E X E C U T I V E SHEAD: Electricity UnitMaxwell Mthembu

Deputy Head:CommercialJohannes Kekae (Acting)

Deputy Head:MV/LV OperationsVeer Ramnarain

Deputy Head:Customer & Retail ServicesPhumzile Sibisi

Deputy Head:Technical SupportRaj Dhrochand

Senior Manager:Human ResourcesSthembile Tobo

Deputy Head:HV OperationsRoy Wienand

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

MISSION• To provide electricity, public lighting and other energy services that satisfy our customers and community

whilst maintaining sound business principles.

SCOPE• 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

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

STATISTICAL DATACustomer Base StatisticsMaximum Demand and

40-58ANNUAL 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

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

2-7 20-24 30-39

12-19

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

C O N T E N T S

8- 11 252-26

26-29

01

Throughout 2018/2019 financial year, our country endured periods of severe load shedding due to operational issues experienced by the electricity generator, namely Eskom. As a whole, the City has felt the far-reaching consequences, both economically as well as socially. From the loss of productivity and revenue suffered by business and industry within the EThekwini Metro, as well as homes who have had to endure periods of no electricity, the effects of load shedding are overwhelming.

The declining trend in national electricity sales is a call for concern as we continue to expand the electricity network to cater for our ever-increasing customer base. The growing costs of maintaining a grid as vast and intricate as ours against a subsiding energy sales trend necessitates a move to evaluate our current sustainability. As such, we are currently in the process of reimagining alternate business models that will allow the electricity unit to execute its primary functions in a viable manner and enable the unit to overcome current and future challenges, while ensuring that we put ourselves in a position to meet the bold requirements of the customer of the future.

In the previous financial year, the National Energy Regulator of South Africa (NERSA) allowed Eskom an effective increase of 15.63% on municipal bulk purchase costs as of 01 July 2019. Considering this increase and various other operational cost escalations, we were able to balance the budget with an average increase of 13.07% across our electricity tariffs in accordance to the guideline Municipal increase as recommended by NERSA.

The revenue collected from electricity sales is anticipated to generate a total of over R14 billion in revenue during the past year with the lion’s share being allocated for bulk electricity purchases from ESKOM and the balance being directed to offset operational expenses.

As our customers and the world at large prepares for the impending industrial revolution, the unit has taken a stance to embrace small-scale embedded generation. We are currently working closely with the Regulator as well industry stakeholders, to create the platform needed to facilitate embedded generation from our customers efficiently. While we appreciate that this project will be very arduous and challenging, we endeavour to formally launch this program within the financial year. Stringent technical and commissioning criteria will be enforced, prior to the connection of these generators to the grid. As part of the process, the unit has developed “feed-in” tariffs to be available to small-scale embedded generators across all sectors.

Finally, I wish to assure you that my eThekwini Electricity team is ready to meet the challenges of the year and that we are ready to serve our fellow citizens with the care and conviction they deserve.

H E A D ’ S O V E R V I E WAs our customers and the world at large prepares for the impending industrial revolution, the unit has taken a stance to embrace small-scale embedded generation. We are currently working closely with the Regulator as well industry stakeholders, to create the platform needed to facilitate embedded generation from our customers efficiently.

HEAD: Electricity UnitMaxwell Mthembu

H V O P E R A T I O N SThe 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.

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 and refurbishment requirements. Analysis of the transmission network is carried out using power system analysis software for network load flows, voltage stability and fault level analysis. Key initial capital project life cycle processes are application for Council funding, acquisition of land and servitudes, environmental impact assessment approvals and completion of preliminary designs are also completed by the branch.

•HandedoverthefollowingtoHVProjectsBranchfor execution:

- Phoenix North Switching Station - Quarry 132 kV Switching Station Upgrade - 132 kV Pinetown Substation - Proposed 132 kV Underwood Substation DL’s

•132kVBussections-Feasibilitystage.•132kVOilFilledCableReplacementtoSAPREF Refinery – Feasibility stage•132kVPhoenixNorthSwitchingStation–Feasibility stage•132/11kVAutomobileSupplyParkSubstation– Environmental impact assessment stage •132/11kVCornubia1Substation–Landacquisition stage•132/11kVInyaninga1Substation–Awaiting developer load forecast.•132/11kVInyaninga2Substation–Awaiting developer load forecast. •132/11kVLongcroftSubstation–Feasibilitystage•132/11kVMorelandsSubstationUpgrade–Final design stage•132/11kVMoriahSubstation–Landacquisitionstage•132/11kVPhoenixIndustrialParkSubstationbus section installation and transformer Replacement - Preliminary design stage•132/11kVRedfernSubstation–Landacquisitionstage•132/11kVReservoirHillSS–Preliminarydesignstage

•132/11kVRobertsSubstationexpansion–Project under review•132/11kVSibayaSubstation–Preliminarydesignstage•132/11kVVerulamSubstation–FinalDesignstage•132/11kVWaterfallSubstationYardUpgrade–Awaiting feasibility approval•275kVDurbanNorthSubstationYardUpgrade– Awaiting feasibility approval•275kVDurbanSouthSubstationtransformer replacement and switchgear upgrade – Awaiting feasibility approval

Key challenges•ExpansionofhighvoltagenetworksintheNorthern and Western suburbs are dependent on Eskom’s strengthening its network to the City which risks delays due to resource constraints at Eskom.

•Maintainingservitudesduetounplannedexcavations by various service providers has interrupted electricity supply due to the damage of electrical infrastructure. •Acquisitionofsitesandservitudewithinthecitycenter is a challenge due to the lack of vacant sites available for construction of new supporting substations.

•Delaysinprojectsduetostringentfeasibilitystudy requirements.

Achievements •Strategic132kVOilFilledCableReplacementProject (CBD) nearing completion

• Filled critical positions in the branch to enablemoreefficient branch operations.

HV PLANNING BRANCH

Highlights:

Progress on existing projects

02

H V P R O J E C T SThe HV Projects Branch is responsible for the detailed design, specification of equipment and management of major system reinforcement projects. These projects include cables, lines and substations with voltages ranging from 275 to 11kV.

Highlights- Replacement of high maintenance cables - Filled critical positions in the branch to enable more efficient branch operations.

Current Projects•AddingtonTransformer:Replacementofthe132/11kV transformer. Transformer ready for commissioning. •AliceStreet132/11kVSubstation:Upgradeofthe substation with two additional transformers and replacement of the existing 11kV board. Civils design underway.•Austerville132/11kVSubstation:New132/11kV substation aimed at relieving the aged 33/11 kV substations in the Jacobs area and further reinforcing the 11kV network. Civil design completed. Procurement of civil works in progress. •Avoca132/11kVSubstation:Thecommercialand residential load demand in the area has increased and firm capacity needs to be upgraded from 30 MVA to 60 MVA. Two new 30 MVA transformers have been delivered and are currently at commissioning stages. •Bulwer132/11kVSubstation:Thecommercialand residential load demand in the Glenwood area has increased and the 11 kV system needs to be reinforced. Civil works completed and critical equipment procured.

•Congellatransformer:Replacementofthe132/11kV transformer. Transformer ready for energizing. •Dalton-Cathedral132kVCableReplacement: Replacement of old oil filled cables spanning 2km with XLPE cables. •DurbanSouth275kVBusSection:Requiredto improve security of supply at this strategic substation. Installation of plant and equipment pending network constraints.•JamesonPark132/1kVSubstation:Thecommercial; and residential load demand in the area has increased resulting in the need to upgrade the existing 33/11kV Substation and replace it with two new 30 MVA 132/11 kV transformers, associated plant and equipment. Cable works in progress.•KEMasinga132/1kVSubstation:Thecommercialand residential load demand in the city area has increased and the 11kV system needs to be reinforced. Major plant installed. Cable works completed. •Kingsburg132/11kVSubstation:Thecommercialand residential load demand in the area has increased and the firm capacity needs to be upgraded from 30 MVA to 60 MVA. Detailed civil works design in progress. •Klaarwater275/132kVSubstation:Upgradecurrent four 250 MVA transformers to 315 MVA due to the increase in load. First transformer commissioned. Installation of second transformer underway. •Kloof132/11kVSubstation:New132/11kVsubstation aimed at replacing the ageing Kloof Substation and increasing reliability in the area. Civil designs completed. Procurement of civil works in progress. •LaMercy132/11kVSubstationReinforcement: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 in progress. •MahoganyRidge132/11kVSubstation:The commercial and residential load demand in the Westmead and Mahogany Ridge areas has increased and the 11 kV system needs to be reinforced with additional 60 MVA firm capacity. Detailed civil designs completed. Procurement of civil works underway. •NtuzumaTransformer:Replacementofthe132/11kV transformer. Transformer at commissioning stage. •OldFort-Addington132kVCableReplacement: Replacement of old oil filled cables spanning 3 km with XLPE cables. Installation of cables in progress. •OldFort-Windsor132kVCableReplacement: Replacement of old oil filled cables spanning 5, 4 km with XLPE cables.•Ottawa132/11kVSubstation:Thecommercialand 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 and tested. •Rossburgh132/11kVSubstation:New11kVcapacity to replace the 33 kV network that is being phased out. Civil works completed. Awaiting delivery of equipment. •Springpark132/11kVSubstation:Thecommercial and industrial load demand in the Springpark area has increased and the 11 kV system needs to be reinforced. Civil works completed and critical equipment has been delivered. •Stockville132/11kVSwitchingStation:New switching station proposed to feed the new proposed substations in Mahogany Ridge and Kloof areas. This switching station will also feed the existing Westmead, Marrianridge, Hillcrest and Waterfall

03

Substations which will eliminate security of supply risks and operational limitations which apply to existing circuits. Site works approximately 60% complete. •UmdlotiBeach132/11kVSubstation:Thecommercial and residential load of 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. •Umlazi132/11kVSubstation:Replacementofthe damaged 11 kV switchboard. Second phase installed and ready for commissioning. •Underwood132/11kVSubstation:Thecommercial and residential load demand in the Pinetown area has increased and the 11 kV system needs to be reinforced. Civil works completed and critical equipment has been delivered. •Verulam33/11kVSubstation:Twoagedtransformers have been replaced with new ones to improve security of supply in the area. The first one is on while the other is also expected to function soon. •Woodlands132/11kVSubstation:Upgradeofthe current 132/ 33 kV. Civil works design underway. •Replacementoftheold11kVwithdrawable switchboards with new fixed pattern type at Alice Street, Bayhead, Esplanade, Isipingo, Prospecton and Toyota Substations: Replacement plans completed. Procurement of temporary switchboards to facilitate the replacements is in progress.

Future Plans •Prioritizeprojectsawaitingcontracts•Filloutstandingvacanciestohaveafullstaffcompliment.

Highlights •Thebranchsuccessfullyrepairedten132kVoutdoor sulphur hexafluoride circuit breakers which had gas leaks that exceeded design standards. Orders have been placed for repairs to seven circuit breakers, which once repaired should bring to an end repetitive breakdown call outs to top up gas on the leaking circuit breakers. •Repairsandrefurbishmentoftwentyone132kV outdoor circuit breakers equipped with hydraulic mechanisms was completed, which allowed a number of circuit breakers to be returned to full service thus improving operational flexibility of the network.•FiveElectricalAssistantsweresenttoShukela Training Centre for their Electrical Trade training. •Thebranchmanagedtofilltwocriticalposts.•Thebranchalsomadesignificantprogresswithstaff development. All electricians who were pre- competent in 2018 are now competent while

another one obtained 11 kV Switching Authorisation. This will assist the Branch in terms of efficient maintenance work planning and execution.

Lowlights •IncidentsofcoppertheftinHVsubstationsareon the rise and they are threatening the functionality of substations. •ThedelayintheinstallationofCCTVcamerasin substations dealt a huge blow to the municipality’s efforts to curb copper theft. .•Thefailureofa275kVpowertransformerat Klaarwater Substation. •Theresignationofanelectricianisalwaysagreatloss to the branch.

Challenges •Theoilcircuitbreakers,currentlyinservice,areof old technology which renders them uneconomical to maintain and unsafe to operate. Consequently they are gradually being phased out and replaced by vacuum and gas circuit breakers. A considerable amount of resources are spent on maintaining this type of switchgear. Moreover, there are frequent problems associated with their old age such as shortage of spares, mal-operation and severe failures. The decommissioning of old oil circuit breakers can only be achieved by construction of new 132//11kV 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 decommissioning of such plant and equipment can only happen by construction of new 132/11 kV substations.

H V S U B S T A T I O NThe HV Substations Branch is responsible for the operation and maintenance of equipment that has voltage ranging from 11 kV up to 275 kV. The main intake points from Eskom are at the four 275 kV National Key Point Substations. The275kVisthentransformedto132kV;132kVtransformed 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 bus bars, capacitors, circuit breakers, instrument transformers, isolators, lightning masts, power line carriers, power transformers and surge arresters.

04

Priority Completed Projects1. Continuous detailed condition assessment to determine the remaining life of existing 132 kV and 275 kV overhead lines and needs analysis for refurbishment.

2. Refurbishment of the following assets:

•Bellair-Dalton132kVLine:Towerrefurbishment•LotusPark-Isipingo132kVLine:Tower refurbishment •Klaarwater-Woodlands132kVLine:Tower refurbishment and foundation (Tower 28 to Tower 48)•Illovo-LotusPark•Illovo-DurbanSouth•Klaarwater-Umgeni•Klaarwater-Hillcrest

Challenges & Mitigations•Encroachmentofassetservitudeandcorridors remains the highest risk to infrastructure: This challenge needs proper enforcement of Municipal bylaws and policies.•Illegalelectricityconnectionsmakinguseofhigh voltage pylon towers to attach wires for elevation hence delaying/preventing inspection and maintenance of these infrastructures. In most cases officials are intimidated and threatened.

•Illegaldumpingpreventingaccessforinspection and maintenance. •Highstaffturnoverrateresultsinnegative consequences for the branch when it comes to special skills and a high level of competencies required when working in high voltage lines environment. A program to train and retain personnel, specifically the targeted group as per the employment equity plan will need to be developed and implemented.•Lackofsuitableoffroad(4×4)vehiclesalso continues to be a challenge as access roads are becoming more difficult to navigate with the encroachment of informal settlements and developments within the power line corridors. This will be mitigated by working with relevant departments to build suitable access roads and procure suitable vehicles. •Staffencountervariouschallengeswhileoutto execute their duties through intimidation from Business forum demanding work and money from contractors on HV Lines contracts. •Beingdeniedaccesstoworkonprivatepropertyby owners, remains a problem.•HVLinesBuilding:nomaintenancedone,building is leaking in the boardroom, filing room and distribution board. Walls are cracking and paint is peeling off.

Successes •TheinstallationofHVLinestowertheftdetection units, which act as an early warning system during theft of tower members and prevent towers from collapsing.•ElectricalfaultstoHVLineswereminimizeddueto pro-active maintenance of HV Lines.

•Thereexistsabackloginthemaintenanceof132kV indoor gas insulated switchgear due to the absence of maintenance service level agreements.

•Thereisdifficultyinfillingcrucialpositionswithinthe Branch. This limits the branch’s capability in executing maintenance work effectively and efficiently and thus exposes the equipment to increased risk of failure.

Future Plans•Thereplacementof132kVbreakersthatarenot performing well especially those that are gas insulated.•Theinstallationof132kVbussectionbreakersin existing substations to enhance the ability to swing the load efficiently during fault conditions and during maintenance activities.•Thecreationofsafezonesatsubstationentrancesto enhance security. •Theinstallationofbundwallsaroundpower transformers to protect the environment from oil spills. •Toincreasethenumberofstaffinordertomeetthe challenges and reduce backlog in maintenance.•Toenterintoservicelevelagreementswithoriginal equipment manufacturers in order to execute specialized maintenance.

H V L I N E SThe HV Lines Branch is responsible for the operation and maintenance of the high voltage overhead lines network consisting of 163 circuit k ilometres of 275 kV, 485 circuit k ilometers of 132 kV and 13 circuit k ilometres of 33 kV overhead line.

05

Future Plans•LotusPark-SukumaTower7,retainingoffoundation due to servitude encroachment. •Klaarwater-HillcrestTower30,retainingoffoundation due to soil erosion.•BuildingAccessroutes(bridges)toUmgeni-Avoca and Umgeni-Reservoir hills•Hillcrest-Waterfall,providesolutionforaccessand maintenance of monopole structures.•Faultpathindicatorshavebeenprocuredandawaiting integration with Communication Networks Branch for implementation.•Continuewithassetconstructionandrefurbishment projects.•Participateonnationalandinternationaltechnical platforms to learn and share knowledge with other utilities.•Conductresearchontheuseofsatelliteimagesto monitor and control servitude encroachments.•Useofweatherinformationsystemstoanalyze electrical network disruptions and improve response times during adverse weather conditions. •TheHVLinesbranchisintheprocessoffillingall critical technical positions to ensure that the branch operates optimally.

•Filloutstandingvacanciestohaveafullstaff compliment.

Highlights •Criticalpositionsinthebranchhavebeenfilled.This will allow the branch to work more efficiently. •Thebranchhasembarkedonaprocesstoprocure its own test equipment to conduct maintenance and proactive integrity testing of circuits.

Challenges•Delaysinprocuringmaterialandotherspares hindered normal operations. •Thebranchhasdecommissionedfluidfilledandgas cables which has by far reduced maintenance. •Itsmaintenancepolicyneedstobeupgradedto ensure proactivity of the branch so that scheduled maintenance is performed as per the policy as well as testing.

132kV fluid filled cable replacement projects:

•132kVBellair-Daltoncircuits1and2Commissioned•132kVRossburgh-Congellacircruits1and2 Commissioned•132kVDalton-Cathedralcircuits..Project95% complete•132kVOldFort-Addingtoncircuits...Project95% complete•132kVPinetown-Underwoodcircuits1and2... Project 80% complete•132kVOldFort-WindsorPark...Project75%complete•132kVMayville-Bulwercircuits1and2...Project40% complete•132kVRandles-JamesonPark...Project70% complete•132kVDurbanNorth-JamesonPark...Project70% complete

•33kVCabledecommissioned

•33kVMayville-Huntleys2....Gascable•33kVUmbogintwini-Doonside-Winkelspruit...PILC Cable

New TechnologiesThe branch is looking into implementing the Distributed Temperature Sensing (DTS) systems. The system comprises of a fibre optic that runs the length of the cable picking up temperature throughout the cable. This enables the sensing of the elevated temperature along the cable to allow for the diagnosing of the problem.

H V C A B L E SThe 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.

The branch works with different types of cables from gas, fluid fil led, and solid cables. This past year it started the process of phasing out fluid fil led and gas cables because of them being high maintenance and them being old technology.

06

Highlights • The new automatic load shedding suite is currently

being utilised to implement rotational load shedding when required by Eskom. This automated system reduces the workload on control officers during the execution of load shedding.

• development of Internet-of-Things (IoT) solution and it has been successfully deployed at a number of trial sites as part of a remote monitoring strategy. This allows for early detection of possible failures to high valued critical assets in locations with limited access to power such as road side oil gauge pressure systems. This disruptive technology has allowed the branch to extend grid visibility to power constrained assets at remote locations.

New Technologies•Thebranchrecentlyawardedatenderforprocuring the latest technology power quality instruments and a new Power Quality Management Analysis System ( PQMAS) to manage power quality near real time and improve situational awareness and making in the HV Network Control Centre.

•Thebranchinitiatedandsuccessfullyimplemented a project to transition away from the mimic wallboards to a fully electronic representation of the HV Network using DASmap. DASmap is a powerful distribution network-editing tool that only offers schematic and geographic representation of the electrical network but also offers digitization, which includes real-time edit of network display, automated network tracing and feeder colourisation based on network topology.

•Thistechnologylaysthefoundationforthe implementation of advanced applications that can further improve the operating efficiency of the control room such as the automation of switching operations and load flow analysis on the real time network model. Such improvements allow for the reporting of the NERSA indices to the regulator. DASmap was used to create the eThekwini Electricity’s HV Networks Model and has been integrated into the internal business process. The operators have been trained and the technology is currently in use.

H V N E T W O R K C O N T R O LThe High Voltage 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 per formance of the High Voltage Network, which incorporates a 24 hour, manned HV Network Control Centre with remote control and alarm facilities. Durban’s primary transmission network, being the supply from 275 000V down to 6 600 V, is monitored and controlled from this network room using a sophisticated Supervisory Control and Data Acquisition ( SCADA) system.

The system Performance Division is responsible for network optimization, ensuring the HV Network can meet the demand for electricity, statistical reporting and quality of supply to the bulk points for the 11 000/6 600 V 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.

07

Highlights/ Lowlights •TheConstructionPlanningandWorksbranchhas made substantial progress in filling critical posts, but the progression and promotion of existing employees has created deficits in the branch’s staff complement. Newly appointed electricians require additional training and experience in specific disciplines for them to be deemed competent to enable them to work independently and safe. •Asameanstofulfilourservicedelivery,ourinternal resources have been supplemented by contractors and has resulted in an increased rate of delivery by the branch.

•Thebranchwasabletodeliveroverthreethousand electrical connections through projects funded by the Department of Energy. The projects were allocated a budget of R27million, including internal funds and span across Malukazi and Emalandeni, DematPhase2;ChilternDrive;BlackburnVillageand Infills.

Challenges•Systemintegrationprovedtobeachallengeas effective co-ordination of projects between the different role players was hampered. •Materialshortagesposedathreattoservicedelivery as a large number of projects are completed contractors who require material to be readily available for successful project completion. •Thescourgeofillegalconnectionscontinuestobea challenges as it creates unsafe working environments for both internal staff and contractors.

Current Projects •Commissioningofsubstationsforbusinesscustomersat89BarrierLane;1445SouthCoastRaod;37GillitsRoad;9TraffordRaod;53OldMainRoad;90AshleyDrive;2MeyricktonPlace;94CannonAvenue;310BhejaneRoad;2SundewRoad;PiazzaPlace;63DarbyRoad;429AntonLembedeRoad;24CentenaryBoulevard;20street610911;22TotumRoad;2HelezaBoulevard;4DuikerRoadand3ArbourRoad.•Installationofinfrastructuretosupplyformalresidentialdevelopmentsat46St.IvesRoad;109PadfieldPark,10HampshireRoad;24JosiahGumedeRoad;OakfordHousing;EtafuleniHousingandSiren Street.

•Switchgearreplacementandcommissioningat28EssexTerraceDSS;171RodgerSishiRoadDSS;EarlHaigRoadDSS;WalnutRoadDSS;AdrienneAvenueDSS;LotusParkDSS;QualityStreetDSS;60MilnerStreetDSS;91SomtseuRoadDSS;Palmfield&AshfieldDSS;57TomangoRoadDSSand81 Teakwood Road DSS.•Relocationofelectricalinfrastructureonthe Integrated Rapid Public Transport Network route.

Construction Planning and Works interest-ing projects 2018/2019The branch worked on numerous interesting projects in the past year, which mostly saw a successful execution of service delivery. These projects include the electrification of Bottlebrush Informal settlement, Jamaica & Marikana as well as the electrification of the Cornubia Housing project.

The branch’s catalystic projects also included the Pearls and Oceans Umhlanga in the Umhlanga Precinct, which required innovative thinking in the design of the electricAnother interesting project was the development of a new distributor at 20 Drift Road in Canelands located within the North Western planning area initiated by the increase in loading of the areas surrounding the King Shaka International Airport. For the development of the promenade, the Municipality planned, designed and installed the necessary electrical supply infrastructure consisting of cables, two mini substations at 60S Brown’s Road and 60S Canal Quay Road as well as ancillary equipment for the amenities lighting and street lighting of the promenade. Further development was that of Umgeni Business Park which required an estimated load of 8 MVA.

M V / L V O P E R A T I O N SThe 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.

08

Highlights/ Lowlights•Implementationofpartialdischargemeasurement to try and predict the condition of the plant and/or equipment. Due to this partial discharge measurement there are many cases of partial discharge activities that have been identified in our switchgear that would not have been picked up early enough with the time base maintenance. •Inthelastfinancialyeartherehasbeen improvement in the reduction of plant out of commission.•Thebranchalsoachieveda4outoffivestarrating for its Disabling Injury Frequency Rate ( DIFR)•Achievedaproductivityaverageof75%•Thenumberofbreakdownsincreasedduetoaging electrical infrastructure.

•Prematurefailureofgasinsulatedequipment ( RMUs) due to equipment design shortcomings. The equipment design was not suitable for the branch’s environmental conditions, despite the equipment specification outlining the conditions the equipment would be subjected to. •Therewasadeclineincommittedschedule attainment from 60% in 2017/18 to 51% last year. This past year there was an increase in non -tactical maintenance than scheduled work which led to the decline. •Thebranchwasabletodeliveroverthree thousand electrical connections through projects funded by the Department of Energy. The projects were allocated a budget of R27million, including internal funds and span across Malukazi and Emalandeni,DematPhase2;ChilternDrive; Blackburn Village and Infills.

Challenges•Systemintegrationprovedtobeachallengeas effective co-ordination of projects between the different role players was hampered. •Materialshortagesposedathreattoservice delivery as a large number of projects are completed contractors who require material to be readily available for successful project completion. •Thescourgeofillegalconnectionscontinuesto be a challenges as it creates unsafe working environments for both internal staff and contractors.

Current Projects •Commissioningofsubstationsforbusinesscustomersat89BarrierLane;1445SouthCoastRaod;37GillitsRoad;9TraffordRaod;53OldMainRoad;90AshleyDrive;2MeyricktonPlace;94CannonAvenue;310BhejaneRoad;2SundewRoad;PiazzaPlace;63DarbyRoad;429AntonLembedeRoad;24CentenaryBoulevard;20street610911;22TotumRoad;2HelezaBoulevard;4DuikerRoadand3ArbourRoad.•Installationofinfrastructuretosupplyformalresidentialdevelopmentsat46St.IvesRoad;109PadfieldPark,10HampshireRoad;24JosiahGumedeRoad;OakfordHousing;Etafuleni Housing and Siren Street. •Switchgearreplacementandcommissioningat28EssexTerraceDSS;171RodgerSishiRoadDSS;EarlHaigRoadDSS;WalnutRoadDSS;AdrienneAvenueDSS;LotusParkDSS;QualityStreetDSS;60MilnerStreetDSS;91SomtseuRoadDSS;Palmfield&AshfieldDSS;57TomangoRoadDSSand81 Teakwood Road DSS.•Relocationofelectricalinfrastructureonthe Integrated Rapid Public Transport Network route.

M A I N T E N A N C E P L A N N I N G & W O R K S The 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. The maintenance of eThekwini Electricity ’s distribution network is vital in ensuring the integrity and reliability of supply to our large customer base. The branch prides itself of its high standards and strives to comply with various national standards and the Power Quality Charter in order to fulfil the needs of its customers.

With the ever-growing and ever-aging Electricity Unit ’s distribution network, the Maintenance Planning Branch is constantly seeking strategies to better manage and maintain

09

Construction Planning and Works interest-ing projects 2018/2019 The branch worked on numerous interesting projects in the past year, which mostly saw a successful execution of service delivery. These projects include the electrification of Bottlebrush Informal settlement, Jamaica & Marikana as well as the electrification of the Cornubia Housing project.

The branch’s catalystic projects also included the Pearls and Oceans Umhlanga in the Umhlanga Precinct, which required innovative thinking in the design of the electric. Another interesting project was the development of a new distributor at 20 Drift Road in Canelands located within the North Western planning area initiated by the increase in loading of the areas surrounding the King Shaka International Airport. For the development of the promenade, the Municipality planned, designed and installed the necessary electrical supply infrastructure consisting of cables, two mini substations at 60S Brown’s Road and 60S Canal Quay Road as well as ancillary equipment for the amenities lighting and street lighting of the promenade. Further development was that of Umgeni Business Park which required an estimated load of 8 MVA.

Challenges •Materialshortageshamperedthebranch’sabilityto work efficiently. •Illegalconnections,theftandvandalismof equipment remain very destructive and have a negative impact on the branch’s infrastructure. •Challengeswiththebranch’sworksystemsaffected maintenance output. •Thelimitedskillswithinthebranchfurtherrestricts the amount of work that it can achieve.

•Vehicleshortagesputalotofstrainonthebranch’s performance. •Contractualdelaysduetovariousbottlenecks.•Workordermisalignmentcreatesworkbacklog.

Anticipated challenges •Shortageofvehicleswillcontinuetohauntthe branch. •Delaysincontractorestablishmentwillalsopersist.•Agingelectricalinfrastructure

Future Plans The branch is looking into training electricians for them to be multi-competent.

New Technologies•Incorporationofconditionmonitoringinorderto perform predictive maintenance and reduce reliance on time based maintenance.•Thebranchisprocuringtwothermographycameras to help identify hotspots in network.

L I G H T I N G P L A N N I N GThe 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.

Challenges•Contractualshortcomingsforbothlabourand material. •Shortageandunavailabilityofmaterial•Staffrotationcreatedabacklogwhichconstantly needed intervention to meet targets

Future Plan •Thebranchwillbeexploringsolarlightingasan alternative for power supply to curb cable theft.

10

L I G H T I N G W O R K S

N E T W O R K C O N T R O L

Lighting Works Branch is responsible for the construction and maintenance of over 225 000 streetlights in the eThekwini Municipality area of supply. The branch is also responsible for the maintenance repairs of inspections conducted by the branch’s Lighting Planning inspectors.

Best described as the lifeblood of the eThekwini Electricity Unit, the Network Control branch is responsible for the management of the MV and LV electrical network on a 24 hour shift basis. Its essential duty is to ensure secure, stable and safe continuity of electricity supply, from 220 volts up to and including 11 000 volts. This is inclusive of remote monitoring of field equipment for load profiling, asset and outage management and supervisory control.Highlights/Lowlights

•Forthepastyear,thebranchwasfloodedwith shortcomings more than highlights. Not having a streetlight contract for two years hindered the branch’s contributions to service delivery through streetlight maintenance for the metro. The branch’s in-house staff is not enough to handle the capacity of the streetlights maintenance needed to be execute. •Nothavingenoughpersonnelforstreetlight maintenance created a considerable backlog.•In-housestaffmanagedtokeepthecity’slights on and remained committed to always meeting that objective. •Acontractorwasappointedbeforetheendofthe previous financial year.

Challenges •Theftstreetlightcablesandvandalismof infrastructure dampens efforts of service delivery.•Illegalelectricityconnectionsthroughstreetlight poles.•Shortageandunavailabilityofmaterialhindersthe branch’s function. •Longprocessesofacquiringadditionalresources to complement existing material poses a challenge to service delivery.

Challenges •Thecommonchallengesfacedbythebranch include the growing prevalence of cable theft, overhead lights theft, illegal connections and vandalism of electrical infrastructure. •Loadsheddinghascreatedalotofproblemsfor the branch this past year. One of its many effects were constant circuit trips each time supply is restored in affected areas. •Nothavingproperworksystemsandfleetaffected the branch’s core function of ensuring electricity supply for customers.

Highlights•Forthefirsttimeinovertwelveyears,thebranchhas a full complement of control officers as well as switching officers. This will improve the functioning of the branch

09

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 enhancing 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.

The branch has also started other applications such as online condition monitoring of assets. Recently the branch has been supporting the provision of communication links for a system called Distributed Temperature Sensing (DTS).

The Communication Networks Branch extensively used 2019 to get back to basics and plan out its projects for the next five years and reconcile existing work. The branch is ion the process of the developing a Communication Networks Branch plan for 2020-2024 to align with some of the changes in the business.

Highlights •Allseniorstaffinthebranchattendedtrainingon project management to improve service delivery.

Challenges •Thebranchhadanumberofcontractsthatwere delayed while some were not awarded. •Therewereproblemswiththesynchronizationof the works management and financial controls systems. This is due to their function in the branch is to provide feedback on budget

T E C H N I C A L S U P P O R TThe 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 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.

expenditure. Consequently, there was no accurate expenditure on projects which proved to be challenging when attempting to locate gaps in the budget utilization.

Projects•Currentlyaidingthedrawingsofficeindeploying an upgrade to the municipality’s GIS system. The aim is to incorporate the planning of telecommunications directly on GIS.

Future Plan • The branch intends to restructure how it does its • projects, further making sure that it limits • business risks. • It also plans to restructure work within a five year • window. The branch has three key goals planned, which are: • Skills motivated workforce. • Improving services provided to branches.• Improving processes and product delivery.

12

E L E C T R I C A L W O R K S H O P S

M E C H A N I C A L W O R K S H O P S

This 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. minisubstations, 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 breaker 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 utilized as coolant medium in the transformers, auto-reclosers 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 returned from site due to failure or new network developments is processed by this division for disposal. These cables are cut into 1 metre lengths to prevent being utilised unlawfully.

Mechanical 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. There is also diverse 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.

Highlights •Therehabilitationoftheoilregenerationplant ensuring improved oil quality.•Disposalofscrappedequipmentandcables in conjunction with the Disposal Section increased significantly.

Highlights/ Lowlights •Thebranchpridesitselfinhavingbeenre-certified for the ISO 2015 standards •Thereweredeficienciesintransitioningtonew standards but the branch plans to uphold the current standard. •Onetechnicalpersonnelrecentlyretired.Anew candidate has been recommended to fill the post. •Thebranchremainsshort-staffedwithstaffmulti- tasking in most sections. •Despiteitschallengesitmanagedtoproducenew features for Christmas decoration of the city.

Future Plans •TheBranchplanstoautomatesomeofits operations •Thebranchwillreviewitsbusinessprocessesfor effective responses to call outs.

13

N E T W O R K D R A W I N G & S U R V E Y I N G Network Drawing and Survey branch is a support branch to the eThekwini Electricity Unit. I t has six main activities which include administration, Network Records, Geographic Information Systems, Special Projects, Utility Plans and Survey Services.

The branch’s main focus is to maintain an accurate geo-spacial representation of all underground and overhead electrical assets in a connected network. I t also serves the purpose of providing efficient GIS, support other enterprise systems and first l ine GIS User Support to all GIS Users as well as provide a survey system within the Electricity Unit.

The survey department is response for field work and delivers survey services to the unit. The branch’s primary reason for conducting land surveys is to make sure that the branch installs on municipal ground and not private property. A lot of work is carried out through surveys of informal settlements for new electrification. This has been done as an additional task over the past few years and it continues.

Network records section is the custodian of the completely connected network database for all voltages on eThekwini Electricity ’s municipal grid.

In order to achieve this, there is a drafts person located in every depot working closely with depot staff to document changes on the electricity grid as and when they arise.

Utility Plan Section provides information to external customers who wish to excavate anywhere within the municipality boundaries.

The Geographic Information Services section (GIS) provides and maintains up to date geographical data of the electricity network. The branch has also embarked on a project to use the software application (ESIR Software) which can be loaded onto a phone or any other electronic device and used by electricity staff to locate equipment as part of the unit ’s mobility programme.

The branch is getting younger as it has more young professionals coming with innovative ways of working in this digital era.

New Developments•ThebranchisupgradingitssoftwaretoSchneider Electrics ArchFM data model. The upgrade model is for the electrical model as well as the telecommunications model.•Thebranchishalfwaythroughthethreeyear contract and has just finished the user testing exception for the communications data model. It is anticipated that the system will be up and running around March 2020.

•Abigpartofthisupgradeprojectistointroduce and implement spacial planning to the unit. •Thebranchisworkingonimprovingitsconnection to the call taker app by attempting to integrate it into GIS. This will enable customer calls to be located in the network for faults to be easily identified. •Currentlythereisalsodataexchangeproject between GIS and the SCADA (Supervisory Control & Distribution Acquisition systems).•Thebranchisnowabletoprovidecableroute information on WhatsApp for immediacy and effective service.•ThebranchinconjunctionwithNetworkcontrol department has developed a network outage viewer that is currently being tested.

Challenges•Thebranchencountereddifficultieswith functionalities of spacial planning but has subsequently put initiatives in place to address these challenges. •Noneavailabilityofhardwarehashinderedthe process of rolling some of the branch’s projects.

14

P R O T E C T I O N & T E S T This Branch compromises of four technical Divisions, namely : DC Systems, Protection Engineering, Protection Maintenance and Test. These Divisions are collectively responsible for the forward planning, analysing, designing, updating, setting, configuring, testing, commissioning, auditing, maintaining and repairing of all protection and d.c. systems in the eThekwini electrical network. The optimal operation of the protection and d.c. 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 the environment. The Branch is also responsible for the investigation of all protection and d.c. system 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.

Highlights and Lowlights•AspartoftheBranch’supgradeprogrammeto replace aged and failure prone d.c. equipment, six battery banks and six battery chargers were replaced at Transmission substations and 12 battery banks and chargers were replaced at distribution substations during the year. •Thed.c.installationsat20Transmission substations were audited during the year to ensure that all the d.c. loads were correctly wired and labelled to facilitate troubleshooting and the safe isolation of control equipment.

•Faultlocationsforatotalof2512HV/MVcable faults, 1 917 LV cable faults and 1 887 house service cable faults were provided by Test Division staff during the year. Test Division staff also performed dielectric withstand voltage testing on 396 pieces of equipment to confirm the integrity of the equipment insulation.•TheBranchmadegoodprogresswiththefillingof vacant posts. A total of seven appointments were made during the year. •TheestablishmentoftheConstructionDivision within the Branch was approved and the associated posts have been graded. The outcome of the locomotion allowance for certain posts within the Division is still outstanding and the biggest obstacle in advertising these posts will be the lack of accommodation to house the division. •Systemconstraintsduetoloadingofthenetwork and equipment failures are still preventing protection maintenance being performed in certain areas and backlogs are developing.•RelayfailuresagainplaguetheBranchandthe Branch had to undertake major module and relay replacements at 21 Transmission substations. Two hundred protection relay modules were replaced and all these schemes had to be retested. In addition 40 failed overcurrent protection relay front faces had to be replaced. These failures claimed a significant amount of Branch resources resulting in backlogs in some maintenance areas.

Challenges Faced and Anticipated Challenges•Relayfailuresremainedthebiggestchallenge for the year. Comprehensive analysis of the failures and trends was undertaken to determine the failure modes of these devices. Thereafter, 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. The Branch will continue to address the relay failures that occur by working together with relevant manufacturers to identify the root causes of failure and then formulate solutions to mitigate against these failure modes.

•ThetransformerfailuresatDurbanNorth Substation and 11 kV transformer breaker failure at Toyota Substation that placed a number of major industrial customers at risk required significant input and resources from the Branch at short notice. The Branch had to reshuffle its resources and divert staff to these sites to work in conjunction with contractors to modify and recommission the necessary protection schemes as soon as possible so that the security of supply to these important areas could be restored in the shortest possible period.

15

•ThecapacityoftheBranchbecameachallenge when Branch resources became overextended during the year due to the increasing number of operational issues that staff were called upon to attend to following the failures of a number of 132 kV circuit breakers and other equipment in the network that resulted in the need to bypass the failed equipment. These situations required protection schemes to be modified or alternative protection installed and commissioned to ensure that the electrical network was still protected.•Theprevalenttheftofcables,busbarsandother equipment in substations resulted in an increased number of protection mal-operations, all of which required investigation and repair. This placed further strain on the already overextended resources.•Therelianceoncontractorsfortechnicalexpertise on IEC 61850 substations is also a challenge that has to be overcome by ensuring the protection personal are trained and kept abreast with the latest version of the IEC 61850 standard. •Themaintenancebacklogsthatwerecreated by the various issues indicated above will also pose a challenge to overcome especially with the current strain on resources.

New Technologies Employed•Theuseofsolartechnologyasasupplementary method of charging inverter batteries in the fault location and pressure testing vehicle was piloted. The feedback and the results of performance tests on the piloted system have been positive and it has been recommended that the system be implemented in the balance of these vehicles

•ThenewMVswitchgearcontractintroducedthe first composite fibre differential relay into the Distribution network which allows for the implementation of fibre differential functionality at this level. The introduction of this technology will aid in improving protection performance of these networks as this modern fibre differential relay will overcome many of the deficiencies inherent with the older generation pilot differential relays. The first installation as already been completed at 94 Cannon Road distributor substation.

New Projects and Progress on Existing Projects•Refurbishmentandupgradeprojectswere undertaken at Plangweni, Jacobs, Greenbury, Mobeni South, Durban North, Parkhill and Umlazi substations.•TheuseofhydrogenmonitoringinTransmission substation battery rooms as both an early warning risk identifier and a means of controlling the air extraction devices was investigated. A system design has been proposed for piloting in the 2018- 19 financial year.

I N F R A S T R U C T U R E A S S E T M A N A G E M E N T ( I A M ) This branch’s main duties are to manage the planning and implementation of infrastructure asset management within the Electricity Unit. This function is executed through provision of leadership in respect of defining and aligning the management, financial and functional key per formance areas to support the Unit ’s objective and the City ’s strategic objectives.

I t is a newly established Branch whose structure was approved in the 2017-18 financial year. The functions that are undertaken by the IAM branch were previously outsourced through a contract that expired in January 2019. In order to facilitate a seamless transition and handover of functions from the service provider to the IAM internal staff, top of the branch’s plans for 2018-19 was to therefore ensure that all critical posts within the branch are fil led urgently. In 2018-19 the branch successfully managed to fil l the Senior Manager, Chief Engineer, three Technical Officers and three Principal Clerks posts, as well as some of the Works Coordinator Posts. In 2019-20, the branch will endeavour to fil l the remaining vacant Works Coordinator posts and the Administrator post.

16

In 2018-19, the newly appointed IAM Branch assisted the consultants in undertaking the Electricity Unit ’s asset management maturity assessment, formally referred to as Asset Management Improvement Planning (AMIP) assessment. The purpose of the assessment was to assess the current asset management maturity of the Unit. This enables a set of activities to be defined in support of improving asset performance towards the desired maturity. During the assessment, seventeen Key Per formance Areas (KPA) as defined in the Unit ’s asset management philosophy, were used to assess the level maturity. The methodology for the assessment uses a 5 point scale with the target generally being a level 3 (Preventing). The outcome of the assessment is summarised in a graph below.

As seen above, the asset management maturity across both HV and MV/LV Departments was very similar with HV scoring an average of 2.81 and MV/LV scoring an average of 2.85 across the 17 KPAs. The patterns in the individual KPAs are essentially the same. This is indicative of strong asset management leadership successfully driving a standardised eThekwini Electricity Asset Management philosophy.

The results – other than in a few areas – are consistently above other industry benchmarks. Most are either close to, or exceed a score of 3 (Preventing) which would generally be regarded as a suitable target for an organisation of the nature of eThekwini Electricity.

On average it is clear that eThekwini Electricity is per forming better than its peers but stil l not at a comfortable “Preventing” level where well thought through processes are in place and in use, and an ISO 55001 certification would be possible. Based on the outcome of the assessment and in line with the continuous improvement process, the IAM branch is managing the identified improvement initiatives to enhance the Unit ’s maturity.

Some of the other IAM branch achievements for 2018-19 financialyearinclude,butnotlimitedto;

a) the review, finalisation and sign-off of the four businessprocesses;b) the review of the current key performance indicatorsandmeasures;c)therevisionoftheUnit’sassetmanagementplan;d) provision of critical training courses to the newly appointedstaff;e) significant progress in the asset register realignment;andf ) compilation of terms of reference for various asset management committees.

These are part of activities meant to accelerate the Unit’s asset management maturity which is vital to ensuring the infrastructure assets are making the best possible contribution to high quality services to customers and to also progress the Unit towards becoming an ISO 55001 compliant organization.

17

T E C H N O L O G Y S E R V I C E SThis Branch consists of three different Divisions, namely : the Engineering Division, Quality and Investigation Division and the Library. 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 researching 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 public is high on the agenda both during the selection of a particular type of good and during its application. The Branch’s primary goals include the adjudication of all tenders for technical equipment, material and services supplied to the Unit, and the creation and maintenance of all technical codes of practice and instructions used by the Electricity Unit ’s staff and contractors.

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

Highlights and Lowlights•Thebranchsufferedanexodusoftechnicalstaff during the financial year which placed a major strain on the branch’s existing resources as the void left by the exiting staff had to be filled by them. Despite the mentioned setback the Branch managed to advertise and award majority of the contracts timeously. •Theprocessoftenderawardsisstillpainstakingly long. Currently the process has to commence at least 13 months prior to expiry of the existing contract.•TheestablishmentoftheTechnologyForumwithin the Branch continues to prove fruitful by promoting valuable technical discussions which in turn has provided more innovative technical solutions.

Challenges Experienced and Anticipated ChallengesSome suppliers are failing to meet the demands of the Unit from a quality and availability point of view. This has been identified in the branch’s stringent quality checks prior to receiving materials. In order to overcome this most contracts will be awarded to more than one manufacturer. This will increase the stock availability to the entire Unit.

New Projects Undertaken and Progress on the Projects•Duetothebacklogofimplementationof‘smart’ringmainunits(RMU),theoptionofhaving‘smart

ready’ RMUs that can later have remote terminal units (RTU) installed was explored and will be implemented during the next tender. This will result in cost saving and will also ensure that the latest RTU technology can be deployed when required.•Inanefforttocombatcoppertheft,anaccessory has been designed and has been approved by the current medium voltage (MV) transformer manufacturers. The accessory fits onto the low voltage (LV) bushing of the transformer and accommodates the installation of the correct size of aluminium cables. This technology has been tested and is successfully being implemented.•Researchfindingsalsorevealedsuitable alternatives to the use of pure copper conductors for various applications. The high scrap value of copper is seen as the primary driving force behind the theft the Unit is experiencing. Research conducted by the branch has also discovered alternatives for earthing application and the most plausible technical solution at the moment is copper clad steel (CCS). A specification is currently being developed to procure CCS conductor which will be piloted and the implementation rolled out if the pilot proves successful.•Anotherprojectthatisbeingundertakento combat theft is the introduction of specialised security systems at the Distributor Substation (DSS). The project is currently undergoing a feasibility study and is anticipated to be implemented in the next financial year should the feasible study prove to be positive.

18

S H E R Q &T R A I N I N GThe 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 assets on the 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 per form 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 the 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.

The branch has experienced a lot of challenges this past year, mainly being the shortage of technical officers since the branch’s core operation is to provide training. Despite such challenges it managed to come up with new changes to manage these shortcomings.it conducted extended classes for technical training courses. This has assisted the branch in managing the backlog.

A long awaited new training centre is currently under construction as a means to extend training operations. We also intend to modernize our switchgear training room to be in line with the forth industrial revolution. Morden technology will be employed for staff training around these developments.

19

C U S T O M E R & R E T A I L S E R V I C E SPRICING & MARKETING

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 public is high on the agenda both during the selection of a particular type of good and during its application. The Branch’s primary goals include the adjudication of all tenders for technical equipment, material and services supplied to the Unit, and the creation and maintenance of all technical codes of practice and instructions used by the Electricity Unit ’s staff and contractors.

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

The tariffs have been made public for consultation by energy consultants. I t will be officially published on the 1st of July 2020.

By this time, systems relevant to its function will be ready for customers. Customers will receive credit on their bill after applying. The branch continues to strive in creating innovative pricing models, whilst embracing the changing environment within the electricity industry. Our industrial time of use tariffs are cost reflective, meaning what municipality pays to Eskom is equivalent to what it charges its customers. We have also reviewed our connection and sundry charges.

The pricing and marketing branch had its long standing critical vacancies fil led, including that of the marketing manager. I ts marketing division has now enhanced its function and meet its deadlines. One of the key emphasis areas in the marketing division is to identify and facilitate the implementation of informal settlement electrification projects.

The continuous increase in copper prices remains our biggest challenge, as it increases above inflation pushing up the cost of connecting to our grid. We have had low or no sales growth in recent years which puts a strain on the municipality ’s income stream. This is due to our poor per forming economy, consumers curbing their spending on energy as well, as the gradual climate change awareness which creates a lower sales base. I t has become abundantly clear that the municipality needs to look at alternative business models to create additional revenue streams.

ready’ RMUs that can later have remote terminal units (RTU) installed was explored and will be implemented during the next tender. This will result in cost saving and will also ensure that the latest RTU technology can be deployed when required.•Inanefforttocombatcoppertheft,anaccessory has been designed and has been approved by the current medium voltage (MV) transformer manufacturers. The accessory fits onto the low voltage (LV) bushing of the transformer and accommodates the installation of the correct size of aluminium cables. This technology has been tested and is successfully being implemented.•Researchfindingsalsorevealedsuitable alternatives to the use of pure copper conductors for various applications. The high scrap value of copper is seen as the primary driving force behind the theft the Unit is experiencing. Research conducted by the branch has also discovered alternatives for earthing application and the most plausible technical solution at the moment is copper clad steel (CCS). A specification is currently being developed to procure CCS conductor which will be piloted and the implementation rolled out if the pilot proves successful.•Anotherprojectthatisbeingundertakento combat theft is the introduction of specialised security systems at the Distributor Substation (DSS). The project is currently undergoing a feasibility study and is anticipated to be implemented in the next financial year should the feasible study prove to be positive.

20

M E T E RE N G I N E E R I N G

In terms of operations the branch has been working extensively on prepaid meter installations. Credit meters have been coming through the branch’s workshop for refurbishment. The branch has also been refurbishing keypads. The workshop has also been kept quite busy with the testing of new meters, also working very closely with advanced metering.

In the past year the branch started formalizing its processes through documenting its practices. I t is now in the process of compiling all of its standards into a central repository so that it has a code of practice for the entire division.

Highlight/ Lowlights• Thebranchhasbeenthefirsttohave moved towards structured training for advanced metering systems with Eskom.• Thebranchhasnotreacheditsfull staff compliment on the advanced metering section, which inhibits the optimal working of the section.

Future Plans• Procurementofcontractsforprepaidas well as contract meters will be prioritized. • Thereisoneengineervacancytobefil led in 2020. • Thebranchisgearingitselftowardsthe next phase of smart metering. The first phase of the project has been completed after the roll out of 20 000 smart meters.

The core responsibility of the Meter Engineering Branch is to ensure all metering equipment used for bill ing purposes are appropriately specified, tested, installed and maintained. To ensure these objectives are executed efficiently, the branch is sub divided into specialized divisions. These sections are Advanced Metering & Projects, Metering Workshop, Whole Current Metering (Construction and Maintenance), and the Bulk Metering division.

Customer Services

This branch is responsible for the processing of all applications for supply, registration of customers for bill ing 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.

This past year, the branch made significant progress in ensuring efficient customer service. I t is also in the process of implementing a Queuing Manager System (QMS). Since customer care is at the heart of this branch, a customer survey system is also in the process of being implemented. A DA online system has been created and is expected to be fully functional in the next financial year.

Developments

The branch moved into its new customer services building at 34 Kings Rd in Pinetown. Rotunda customer service building will also soon be refurbished while a new building is under construction for Isipingo Branch. The customer SMS notification process has been created but awaits technical resources to resume is functions.

Highlights •Migrationofpre-paidpodsfromCOINStoRMS.•Thebranchalsoembarkedonanexcitingprojectof taking services to the people through pop up offices at malls and roadshows once every month.

Challenges •Thebranchreceivedhighvolumesofaccount queries due to the constant increase of electricity prices.•Shortageofresourcesremainsamajorchallenge within the municipality. •Volumesofcustomersarebeinghandledatwalk- in centres as a result of the downtime of the unit’s call centre.

Future Plans•Thebranchisworkingtowardsgettinganewmeter reading system that will enable them to do meter readings monthly. •Implementationofusingdebitcardstopayacross all customer service centres. •NewpremisesforNorth-Westernaswellas Northern customer service buildings.

21

• Implementationofmetermanagement project. The intention is to be able to track a meter ’s full l ife cycle with greater accuracy. • Thebranchisintheprocessoffield investigation work on upgrading the department’s ability in terms of CT V T sense meter testing. First quarter of 2020, the branch will ready to procure these materials to be fully kitted in executing bulk investigations and commissioning in terms of compliance with NERSA.

R E V E N U E P R O T E C T I O NThe Revenue Protection Branch’s main function is to minimize the revenue losses for the unit. This is achieved through efficient disconnections of i l legal connections and customers who are in arrears, thus enforcing credit control measures and ensuring that revenue is collected timeously.

The success of the operation can be measure by having the correct building blocks in place comprising of the following:

•People–Aprojectcanonlybeeffectivewith committed and dedicated resources•Processes–Thecorrectprocessesandprocedures established at the start of the project are essential•Technology–Thislastelementisonlyeffective once the first two pillars are in place. Investing in technology on its own will not ensure success.

The branch has embarked on projects that contributed to the success of eThekwini Electricity maintaining total losses to below the National Benchmark of 12.5 percent. The loss figure for the 2018/19 financial year is 6.48 percent.

Highlights

AMI – Automated Metering InfrastructureEThekwini Electricity has successfully implemented in phases, an Advance Metering Infrastructure System which is the back end system (MDMS / MVMS) and field devices (smart meters and data concentrators).

Although two systems MVMS and MDMS were supplied, successfully deployed and completed in December 2016. The final stage of the project recently integrated the MDMS / MVMS with the current operational systems within eThekwini Electricity (RMS / ELLIPSE / JDE). The MVMS / ELLIPSE integration was developed and tested during 2016/2017 and currently operational with 22 000 smart meters successfully commissioned. The branch also installed 170 data concentrators which provides communication between the smart meters and the HES (Head End System) of the AMI System (Automated Metering Infrastructure).

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 surrounding 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. This meter is a major component of next-generation smart grid because it 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 efficiently and advise users to consume the power wisely. Based on long-term power usage patterns, 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.

The aim is to convert credit meters and other type of pre-paid meters to Smart Meters. The branch intends to move the meters outside the boundary or up the pole.

The RMS / MDMS / MVMS integrations have been developed and the integration technical teams are currently mapping, verifying and testing metering data from RMS. Advanced Metering Infrastructure for EThekwini Electricity will be fully operational by 2022.

Leveraging Smart Meters EThekwini Electricity will focus on integrating and optimizing information gathered by smart meters (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 areas where eThekwini Electricity will be leveraging smart meters.

22

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

Operational Savings: The use of 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 enable services such as automated budget as¬sistance and bill management tools; energy use notifications,smart pricing and demand response programs.

SUPRIMA SYSTEMThe Suprima vending system continues to yield positive results which generate millions of rands monthly for the municipality. The collection of sales has improved following the use of the three Super Vendors. The system belongs to the municipality and is currently supported by the Supplier. Progress has been made handing over the support system to the Electricity Service Unit. One of the system’s functions is to block token purchases in the event there is a query with that particular customer or address.

THEFT OF ELECTRICITYTheft of electricity and infrastructure has led to devastating and tragic consequences which include loss of l ife and damage to infrastructure. The municipality is inundated with il legal connections especially in the informal settlements. .

Legitimate customers also experience continuous outages due to overloaded circuits as well the damages to infrastructure. I l legal connections are costing the municipality close R150 million annually

To mitigate this trend, regular sweeps or meter inspections, disconnections and the removal of i l legal connections are being conducted. Furthermore, the massive electrification of informal settlements is being undertaken to reduce the potential of i l legal connections. EThekwini Electricity Unit has a team that manages infrastructure theft in hot spot areas.

STS TID ROLL-OVER PROJECTThe eThekwini Service Unit attended a workshop hosted by the STS Association where it was revealed that all STS prepayment meters will be affected by TID Roll Over on the 24/11/2024. Any token generated after this date and utilizing the 24bit TID will be rejected by the meters as being the old tokens as the TID value embedded in the token will have reset back to zero. All STS compliant meters needs to support the key roll over functionality as specified in IEC62055-41. All STS Prepayment meters will require key change tokens to effect the new base date of 2014. The Smart Meters will not be affected by this programme,

Our Service Unit has commenced the TID Rollover Project to ensure continuous electricity access for end users beyond the 24 November 2024.

Vodacom Solution / ProjectThe Revenue Protection Branch has requested a proposal from Vodacom for its Smart Service and Smart Fieldworker solutions that will have the following functions:

•SweepAudits•MobileWorkflowManagement•MeterManagement•ContractorBillingManagement•ReportingAnalytics•EvidenceUpload•Joballocation•Geolocation The above solution will be piloted in the next year.

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 bill ing and are sometimes not recognised for many years. For example, incorrect CT Konstant. This results in considerable losses to energy suppliers.

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

23

This should be done in order to provide the standard tools and test equipment required by technicians to per form their tasks to ensure that the required safety and/or quality standards are practised.

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•MeterInspectionsconductedinaninformal settlements which has been electrified where it was discovered some of the Users had a second feed.•Delaysintheawardofthecontractscontributed on the increase of losses e.g. Meter Sweep Contract, Removal of Illegal Connections etc•ProposalmadetohavetheBranchrestructured following an increase of the workload.•DelayswiththeSuprimaSystemHandovertoour ICT,•Challengeswiththeraisingofthepre-paidcharges.

C O N T A C T C E N T R EThe Contact Centre provides a one-stop faults, outages, theft, capturing of meter readings and other general electrical queries reporting centre. The branch also provides assistance in the use of prepaid meters, vouchers and other administration enquiries, in pursuit of excellence in service delivery.

Highlights• eThekwini Electricity’s Contact Centre was • nominated at the Customer Service Awards Despite having lost two staff members who retired, the branch managed increase its staff compliment through the employment of sixteen new members.

Future Plans• In the next financial year, the branch will be implementing a new system aimed at improving productivity and decreasing call times thus lowering call volumes. • The function of capturing meter reading will be moved to the Customer Service so as to enable the Contact Centre the capturing of power outages and faults.

24

H U M A N R E S O U R C E SThe Human Resources Branch is responsible for providing guidance and support to the employees of eThekwini Electricity Unit. HR staff are involved in addressing issues which impact Human Resources management for the unit as a whole.

HighlightsFilling and significant drop in Funded Vacancies as reflected in the below graph.

25

95 % Per formance Management Plans captured and per formance rewards were implemented successfully. The branch fil led a number of vacancies which included a huge intake of Small Plant Operators.

It also partnered with the Customer & retail Services Department for Mandela Day Initiative and assisted Nungwane Primary School in uMbumbulu.

The branch initiated and facilitated Liaison Meetings across all branches as a proactive approach to curb grievances raised by employees as well as promote communication amongst Labour and Line management. In an attempt to promote a healthy lifestyle amongst employees, the branch held a successful wellness day event which was welcomed by all.

Sick leave management is a vital role of the branch and as such various interventions were conducted in order to better manage the impact of sick leave on productivity. AS a result, sick leave costs to the unit were decreased from R8 844 902.23 down to R 7 718 208.37.

Challenges•Vacancieswithinthebranchcontinuetohinderits productivity.

•Thebranchofficeswerefloodedasaresultofheavy rains experienced. This had an impact on the branch productivity as it had to suspend its operations while moving to alternative accommodation.

Future plans•ToreviveTalentManagementandensurethebranch has a sufficient pool of skilled employees.•ToworkshopLineManagementandShopStewards on the Organizational Rights Agreement. Securing appropriate office space to allow all HR Personnel to be easily accessible.

Over and above its core function, the branch also conducts work studies despite this section currently being short staffed. I t also plays a role in executing projects for other branches within the unit. A detailed work study intervention was carried out in conjunction with the Network Control Branch in order to ascertain the branch’s workload and productivity.

The past year was a difficult one for the branch owing to a number of employees opting for early retirement and promotions. The branch is currently attempting to fil l the vacancies left by the valuable employees.

The branch plans to conduct meetings with senior management all sections in an effort to promote productivity in every branch and maintain and excellent work standards. The new Incentive Bonus programme has been documented and is currently going through the testing phase. I t is anticipated that training of staff will commence and be completed in the next financial year.

C O M M E R C I A LD E P A R T M E N TThe 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.

ProductivityProductivity branch contributes to the upgrading of productivity and efficiency throughout the unit by closely monitoring the productivity of both in-house and contractor staff.

26

I N F O R M AT I O N & C O M M U N I C AT I O N T E C H N O LO G Y 2018/19 proved to be a year filled with achievements with equal challenges to match for the ICT Branch.

Infrastructure UpgradeThe Electricity Unit ’s ICT branch was able to procure new servers for an upgrade project of its ICT server infrastructure to meet the increasing demands of the unit as well as to comply with ICT Governance policies and requirements set by the Municipality and Auditor General. The replaced server infrastructure was originally procured 8 years ago and has been upgraded and maintained on an ad hoc basis to a point where the systems were more expensive to maintain than to replace. These assets have been sweated for an additional 3 years over and above eThekwini Electricity ’s Asset Management Policy for ICT Equipment of 5 years replacement.

Electricity department made a financial investment of R57million on this new server infrastructure as the replacement is for the ICT main datacentre in Control building and DR site in Westville.Procurement processes took more than 3 years to finalize, in the meantime more costs were incurred in maintaining the old infrastructure and as the hardware kept collapsing, more systems which are critical for business, were affected. We saw downtime on systems such as Distribution application.

Recruitment The ICT branch made huge progress on its recruitment plan which yielded a staff complement growth from 57% to 79%. However, there are critical positions that have not been fil led as a result of the rigid recruitment process which sometimes spans over an extended period of time. This often leads to potentially successful candidates accepting alternate offers.

ERP SystemEThekwini Electricity has extensively used the ABB Ellipse system for Electricity Faults Logging, Reactive Work Planning and Scheduling, Asset Maintenance Planning and Scheduling, Processing and Management of Electricity Customer Applications for Electricity, and for all Enterprise Asset Management activities which require high availability of the system due to the 24/7 nature of the business. Furthermore ABB Ellipse has a number of critical integrations with the Municipality ’s Financial & Materials Management System (JDE E1), Bill ing (RMS), HRM (DRL) and other systems such as IDM, E-Mail (GroupWise), VIBE (Document Management & Collaboration) which automate & support critical value chains for the unit. Due to lack of internal skill to support the functions of the ERP solution, Electricity Department depended on Ellipse support contractors for a number of years, in ensuring 24hrs support and no downtime to the operation of the department.

On the 30th June 2019, the support came to an end and to date the contract has not been renewed, as a result the system has been partially supported by internal resources through the skill transferred from the contractor. However, due to lack of experience on some of the system and business functions there was a number of unresolved faults and that created a backlog which had a negative impact on business operations.

Future ProjectsNovell to Microsoft MigrationThe ICT department is in a process of Migrating the business from Novell to Microsoft where we will see the inception of Microsoft Office 364, Microsoft Outlook, SharePoint, One Drive, Microsoft teaming (for team collaboration) and host suites of Microsoft products. This is a plan to be in production by end of October 2020, as there are a host of services to consider through the migration, being: Implementation Services, Support & Maintenance Services, Project Management and Project Administration Services and Training and Skills transfer Services, for the unit to transition to Microsoft. The infrastructure to host this environment is already being installed and Microsoft l icenses have already been procured through the council Enterprise Agreement.

27

EE Desktops refreshThe branch has procured 150 Desktops and 70 Laptops, through a council Hardware procurement tender. This hardware will be used in a Desktop refresh project with a prioritization to Electricity Customer Service Centres and the replacement of hardware which is in excess of 5 years of age. Currently a rollout plan is ongoing.

Systems Development

A host of other systems development initiatives have commenced and a few are already in production such as Online Freshdesk service, for online ICT fault logging, Asset Management – for IT equipment and inventory location and life tracking, Corrective Maintenance which is a webbased replacement of the old FaultMan systems, Bonus Incentive System which is an online upgrade to the old MSDOS Bonus System for gangs productivity bonus calculations.

Projects planned:•ITnetworkupgrade•SystemsMigrationtonewserverinfrastructure•Ellipse9upgrade•Mobilityforworkforcemanagementandfaults inspections solution•CyberSecurity•SmartICT–Realtimeinfrastrure,networkand applications monitoring and security services.•Contractsmanagementsystem•OperationalAssetManagementmoduleactivation within Ellipse •ConcludingMicrosoftMigration•AdoptionofanICTStrategythroughIMU

•RolloutofiDurbanNetwifitoHQ•ImprovingCallcentreprocesses/systems•Re-instatingTibcoprojects(ESB,SportFireBI, Business Process Mapping)•Approvaloftheproposeddepartmentorganogram.

S U P P L Y C H A I N M A N A G E M E N T The branch runs all procurement processes contracts, stores and warehousing. This past financial year has by far been the most challenging year for branch in recent years.

I t has been battling with the Material Resource Planning (MRP) system for the past three years. The system fails to address the branch’s core functions. From not being able to access certain reports to creating unnecessary backlog for the branch.

A year ago the City Manager formed the Executive Acquisition Committee, whose role is to consider reports that have been approved by BAC. Although this was aimed at increasing the municipality ’s governance and accountability protocols it has led to an increase in backlogs for the branch as contract awards are taking longer to be processed. The branch is currently investigating ways to counter these delays.

B U S I N E S S R I S K The 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.

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. I t is the branch’s main focus 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.

28

F I N A N C E This branch is responsible for the financial control over for all activities of the department. This includes: interalia, 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.

From challenges in revenue with load-shedding to electricity theft to reaching the target of disconnections and reconnections, department operations continue to have a great impact on this branch’s per formance. Although challenges experienced throughout the year vary but the development and training of staff beckoned throughout the year. This year the branch plans to intensify staff training to ensure compliance with processes and policies.

A year ago the City Manager formed the Executive Acquisition Committee, whose role is to consider reports that have been approved by.

2018/19 Annual Financial Statements have been audited and the municipality again received an unqualified audit.From the Auditor General’s findings for the electricity department, the inventory was a challenge that needed attention.

27

STATISTICAL DATA AND FINANCIAL PERFORMANCE

GRAPHSFINANCIALSTATEMENTSSTATISTICALDATA

SYSTEMMAXIMUMDEMAND

FINANCIALYEAR

Gro

wth

in P

erce

ntag

e

Max

imum

Dem

and

(MVA

)

M D ( M VA) % G R O W T H

2 000

1 800

1 600

1 400

1 200

1 000

800

600

400

200

0

10,00%

8,00%

6,00%

4,00%

2,00%

0,00%

-2,00%

-4,00%

-6,00%0 7 / 0 8 0 8 / 0 9 0 9 / 1 0 1 0 / 1 1 1 1 / 1 2 1 2 / 1 3 1 3 / 1 4 1 4 / 1 5 1 5 / 1 6 1 6 / 1 7 1 7 / 1 8 1 8 / 1 9

ENERGYSALESPERANNUM

FINANCIALYEAR

Gro

wth

in P

erce

ntag

e

Ener

gy S

old

(GW

h)

ENERGY (GWh) % G R O W T H

12

000

10

000

8 000

6 000

10,00%

8,00%

6,00%

4,00%

2,00%

0,00%

-2,00%

-4,00%

0 7 / 0 8 0 8 / 0 9 0 9 / 1 0 1 0 / 1 1 1 1 / 1 2 1 2 / 1 3 1 3 / 1 4 1 4 / 1 5 1 5 / 1 6 1 6 / 1 7 1 7 / 1 8 1 8 / 1 9

30

GROTH BULK CUSTOMERS

FINANCIALYEAR

Ener

gy (G

Wh)

Max

imum

Dem

and

(MVA

)

B U L K C U S TO M E R S G Wh S O L D

1100

1000

900

800

700

600

500

400

300

200

100

5 400

5 200

5 000

4 800

4 600

4 400

4 200

4 00007/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

31

AVERAGE MWh PER BULK CUSTOMER/MONTH

FINANCIALYEAR

Curr

ency

(R)

Ener

gy (M

Wh)

700

600

500

400

300

200

100

0

450000400000350000300000250000200000150000100000

500000

07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

Ave ra g e M Wh / b u l k c u s to m e r / m o nt h Ave ra g e M Wh / b u l k c u s to m e r / m o nt h ( R a n d s )

32

GROWTH BUSINESS & GENERAL CUSTOMERS

FINANCIALYEAR

Ener

gy S

old

(GW

h)

Num

ber o

f Bus

ines

s an

d G

ener

al C

usto

mer

s

50 00045 00040 00035 000 30 00025 00020 00015 00010 000

5 0000

3 500

3 000

2 500

2 000

1 500

1 000

500

0

07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

N u m b e r o f B & G C E n e rg y s o l d (G Wh )

AVERAGE kWh PER B&G CUSTOMER PER MONTH

FINANCIALYEAR

Curr

ency

(R)

Ener

gy (M

Wh)

6000

5000

4000

3000

2000

1000

0

6000

5000

4000

3000

2000

1000

007/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

Ave ra g e k Wh / b u l k c u s to m e r / m o nt h Ave ra g e i n co m e / b & g / m o nt h ( R a n d s )

33

GROWTH OF CREDIT RESIDENTIAL CUSTOMERS

FINANCIALYEAR

Ener

gy S

old

(GW

h)

Num

ber o

f Res

iden

tial C

usto

mer

s

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

007/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

N u m b e r o f c re d i t re s i d e nt a l c u s to m e r s

Ave ra g e u n i t s ( k Wh )

E n e rg y s o l d (G Wh )

Ave ra g e R a n d s

AVERAGE kWh PER CREDIT RESIDENTIAL

FINANCIALYEAR

Curr

ency

(R)

Ener

gy (k

Wh)

900

800

900

700

600

500

400

300

200

100

0

1000

900

800

700

600

500

400

300

200

100

007/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

34

OVERALL GROWTH OF CUSTOMERS

FINANCIALYEAR

Ener

gy S

old

(GW

h)

Tota

l Num

ber o

f Cus

tom

ers

900 000

800 000

700 000

600 000

500 000

400 000

300 000

200 000

100 000

0

12 000

10 000

8 000

6 000

4 000

4 400

2 00007/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

N u m b e r o f c u s to m e r s

Ave ra g e k Wh

E n e rg y s o l d (G Wh )

Ave ra g e I n co m e

OVERALL AVERAGE kWh PER CUSTOMER/PER MONTH

FINANCIALYEAR

Curr

ency

(R)

Ener

gy (k

Wh)

1600

1400

1200

1000

800

600

400

200

0

1600

1400

1200

1000

800

600

400

200

0

07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

35

NUMBEROFEMPLOYEES

FINANCIALYEAR

Num

ber o

f Em

ploy

ees

3000

2 500

2 000

1 500

1 000

500

007/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

ENERGYSOLDPEREMPLOYEE

FINANCIALYEAR

Ener

gy S

old

(GW

h)

7, 00

6, 00

5, 00

4, 00

3, 00

2, 00

1, 00

0, 0007/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

36

N u m b e r o f p re p ay m e nt re s i d e nt i a l c u s to m e r s E n e rg y s o l d (G Wh )

GROWTHOFPREPAYMENTCUSTOMERS

FINANCIALYEAR

Ener

gy S

old

(GW

h)

Num

ber o

f Pre

paym

ent R

esid

entia

l Cus

tom

ers 450 000

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

007/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

AVERAGEKWhPREPAYMENTRESIDENTIALCUSTOMER/MONTH

FINANCIALYEAR

curr

ency

(R)

Ener

gy S

old

(kW

h)

250

200

150

100

50

0

350

250

200

150

100

50

007/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

Ave ra g e K Wh / p re p ay m e nt re s i d e nt i a l c u s to m e r / m o nt h

Ave ra g e i n co m e / p re p ay m e nt re s i d e nt i a l c u s to m e r / m o nt h

37

AVERAGEMONTHLYCLAIMSPERYEAR

FINANCIALYEAR

Num

ber o

f cla

ims

140 000

120 000

100 000

80 000

60 000

40 000

20 000

0

07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

N u m b e r o f c u s to m e r s To t a l C l a i m s

FREEBASICELECTRICITYCLAIMSPERMONTH

MONTHSOF2018/2019FINANCIALYEAR

Clai

ms

Num

ber o

f Cus

tom

ers

180 000

175 000

170 000

165 000

160 000

155 000

150 000

145 000

107 000106 000105 000104 000103 000102 000 101 000100 000

99 00098 00097 000

J u l A u g S e p O c t N o v D e c J a n F e b M a r A p r M a y J u n

38

NEW CONNECTIONS PER REGION 2018/2019

DISTRIBUTION OF REVENUE FROM SALES 2018/2019

S . We s te r n1 8 %

N o r t h e r n3 2 %

N . We s te r n1 0 %

We s te r n1 0 %

Ce nt ra l1 4 %

S o u t h e r n1 6 %

R e s i d e nt i a l2 6 %

B u s i n e s s & G e n e ra l2 3 %

Pre p ay m e nt1 0 %

B u l k 4 1 %

O t h e r1 %

39

NEW CONNECTIONS PER REGION 2018/2019

DISTRIBUTIONOFENERGYSALES2018/2019

D e p re c i at i o n2 %

B u l k Pu rc h a s e s6 5 %

N . We s te r n1 0 %

I nte re s t p a i d1 %

Ad m i n G e n1 5 %

R e p a i r s a n d m a i nte n a n ce8 %

- - -

- - -

- - - -

- - -

- - -

STATISTICAL DATA AND FINANCIAL PERFORMANCE

ANNUAL FINANCIAL STATEMENTS

ASSETS Note JUNE 2019 R

JUNE 2018 R

Current Assets

Inventories 270 908 386 275 245 271

Receivables From exchange transactions 165 949 166 122 438 536

Receivables from non exchange transactions

VAT receivable 9 609 857 (26 639 101)

Consumer Debtors 1 695 482 481 1 926 870 782

Current portion of long term receivables 311 600 957 643

Cash And Bank Balances 4 950 644 826 4 574 198 259

Total Current Assets 7 092 906 315 6 873 071 390 Non Current Assets

Property, plant and equipment 7 017 576 348 6 633 268 999

Intangible assets 8 116 959 371 136 620 056

Long-term receivables 5 3 366 564 2 176 686

Total Non Current Assets 7 137 902 283 6 772 065 740

Total Assets 14 230 808 598 13 645 137 130 LIABILITIES

Current Liabilities

External Borrowings 6 224 461 692 184 971 715

Payables from exchange transactions 9 1 469 668 33 1 589 897 511

Consumer deposits

Total Current Liabilities 1 694 130 025 1 774 869 227 Non - Current Liabilities

External Borrowings 6 1 399 021 533 1 337 476 848

Total Non Current Liabilities 1 399 021 533 1 337 476 848

Total Liabilities 3 093 151 558 3 112 346 075 Net Assets

Accumulated Surplus 11 137 657 040 10 532 791 056

Total Net Assets 14 230 808 594 13 645 137 130

STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2019

40

ANNUAL FINANCIAL STATEMENTSSTATISTICAL DATA AND FINANCIAL PERFORMANCE

Note ACTUALS ADJUSTED BUDGET RESTATED ACTUALS

JUNE 2019 JUNE 2019 JUNE 2018

REVENUE R R R

Revenue from exchange transactions

Service Charges 14 12 461 155 615 12 985 223 810 12 259 036 266

Rental of Facilities and Equipment 15 688 628 689 570 525 102

Interest Earned 16 0 0 0

Interest Earned - Outstanding Debtors 17 88 592 500 32 665 980 32 707 113

Other Income 18 130 109 101 208 530 620 253 828 799

GainsondisposalofProp;Plant;Equip (1 246 066) 210 000 1 245 541

Internal Income 0 - -1 302 033 713

Total revenue from exchange transactions 20 907 424 955 1 151 752 930 1 200 520 62413 606 734 735 14 471 905 240 12 349 152 218

Revenue from non-exchange transactions

Transfer revenue

Government Grants and Subsidies 19 442 248 040 442 248 060 660 790 650

Total revenue from non-exchange transactions 442 248 040 442 248 060 660 790 650

Total Revenue 14 048 982 774 14 914 153 300 13 009 942 868

EXPENDITURE

Employee Related Costs 21 1 199 598 737 1 288 639 530 1 070 306 902

Contrib. to Provision for Bad Debts 29 222 670 899 218 475 917 144 756 702

Amortisation 23 19 960 566 28 895 128 18 905 701

Depreciation 23 323 751 460 339 805 912 322 070 714

Repairs and Maintenance 25 865 971 826 1 414 121 290 1 133 301 128

Interest Paid 22 141 485 317 147 162 040 144 853 217

Bulk Purchases 24 8 884 075 561 8 909 962 340 8 280 136 332

Contracted Services 26 202 502 469 257 036 350 169 267 364

General Expenses 27 394 397 990 446 967 760 285 750 033

LossondisposalofProp;Plant;Equip 16 158 50 000 7 710 257

Inventory write-down 1 173 238 995 1 457 837 742 1 382 679 123

Internal Charges 28 604 865 985 0 0

Total Expenditure 14 032 535 961 14 508 954 009 12 959 737 473

Operating Surplus 16 446 814 405 199 291 50 205 395

Other 30 -16 446 814 -405 199 291 -50 205 395

SURPLUSFORTHEYEAR 0 0 0

STATEMENTOFFINANCIALPERFORMANCEFORTHEYEARENDED30JUNE2019

41

ANNUAL FINANCIAL STATEMENTSSTATISTICAL DATA AND FINANCIAL PERFORMANCE

NOTESTOTHEFINANCIALSTATEMENTSFORTHEYEARENDED30JUNE2017

1. INVENTORIES

Stock on hand

270 908 386 275 245 271

2. RECEIVABLES FROM EXCHANGE TRANSACTIONS

Debtors for collection 3 802 601 2 256 628

Insurance Debtors 100 890 426 70 193 959 Private jobbing debtors 44 618 953 35 192 675

Prepayments 5 220 814 1 286 335

Other 11 416 372 13 508 941

165 949 166 122 438 536

3. VAT

Vat Payable

VAT Receivable (26 639 101)

9 609 857

9 609 857 (26 639 101)

VAT is payable on the receipts basis. Only once

payment is received from debtors is VAT paid over to

SARS

5. CONSUMER DEBTORS

Consumer Debtors 1 662 301 968 1 719 294 399

Industrial/ Commercial Debtors 658 150 458 711 140 287

2 320 452 425 2 430 434 686

Accounts receivable impairment (719 452 660) (503 563 904)

1 600 999 765 1 926 870 782

6. LONG TERM RECEIVABLES

Long term portions of Bursary Student loans 3 366 564 2 176 686

Current portion of Bursary Student Loans 311 600 957 643

JUNE 2019 JUNE 2018

R R

ANNUAL FINANCIAL STATEMENTSSTATISTICAL DATA AND FINANCIAL PERFORMANCE

NOTESTOTHEFINANCIALSTATEMENTSFORTHEYEARENDED30JUNE2019

42

ANNUAL FINANCIAL STATEMENTSSTATISTICAL DATA AND FINANCIAL PERFORMANCE

NOTESTOTHEFINANCIALSTATEMENTSFORTHEYEARENDED30JUNE2017

ANNUAL FINANCIAL STATEMENTSSTATISTICAL DATA AND FINANCIAL PERFORMANCE

NOTESTOTHEFINANCIALSTATEMENTSFORTHEYEARENDED30JUNE2019

JUNE 2019R

JUNE 2018R

TOTAL

R

7. EXTERNAL BORROWINGS

External Financing Fund 761 923 770 160 064 593,35 894 923 291

Development Bank of South Africa 29 547 382 8 446 118,07 37 993 430

European Investment Bank 129 830 431,87 15 304 068,12 141 937 724,91

RMB & FRB external loans 419 726 196,86 33 931 818,99 197 949 666,99

Nedbank Loan 57 993 753 6 715 093,66 64 672 736

ABSA Loan 6 715 093,66 1 399 021 533 1 337 476 848

Short-term portion of long-term borrowings

8.PROPERTY,PLANTANDEQUIPMENT

30 June 2018 Land Buildings Infrastructure Plant & Equipment Total

Cost 133 516 307 100 098 356 7 874 250 917 716 634 144 8 824 499 724

Construction Work In Progress 33 461 000 1 460 577 089 1 494 038 089

133 516 307 133 559 356 9 334 828 006 716 634 144 10 318 537 813

Less: Accumulated Depreciation - (55 259 289) (3 107 601 901) (522 407 625) (3 685 268 815)

Carrying value 30 June 2018 133 516 307 78 300 067 6 227 226 105 194 226 519 6 633 268 998

30 June 2019

Cost 133 526 007 100 225 056 8 124 941 047 823 729 385 9 182 421 495

Construction Work In Progress 18 233 066 1 827 444 486 1 845 677 552

133 526 007 118 458 122 9 952 385 533 823 729 385 11 028 099 047

Less: Accumulated Depreciation - (64 991 716) (3 359 626 504) (585 904 479) (4 010 522 699)

Carrying amount as at 30 June 2019 133 526 007 53 466 406 6 592 759 029 237 824 906 7 017 576 348

*Note: Substation buildings and earthworks have been reclassified from Buildings to Infrastructure category

43

JUNE 2019R

JUNE 2018Re

TOTAL

R

9. INTANGIBLE ASSETS

30 June 2018 Land Rights Computer Software Total

Cost 58 842 285 175 155 090 233 997 375

Less: Accumulated Depreciation - (97 377 319) (97 377 319)

Carrying value 30 June 2018 58 842 285 77 777 771 136 620 056

30 June 2019

Cost 58 842 285 175 454 970 234 297 255 Less: Accumulated Depreciation (117 337 885) (117 337 885)

Carrying amount as at 30 June 2019 58 842 285 58 117 085 116 959 370

10.PAYABLESFROMEXCHANGETRANSACTIONS

Trade Creditors 1 414 455 085 1 530 615 722

Payments Received in Advance 35 805 792 36 071 741

Retentions 10 356 782 11 185 694

Other Creditors 8 375 674 11 349 355

Guarantees in Lieu of Deposits 675 000 675 000

1 469 668 333 1 589 897 511

11. Loss in Electricity Distribution Estimated Electricity losses 714 829 464kWh (June 2018: 783 506 861 kWh) occurred during the year under review which resulted in revenue losses to the municipality. These estimated kWh losses amounted to R575M (2018: R590 m). . The national norm for electricity losses ranges from 5% to 12%. The loss

incurred by the municipality is 6.48% (June 2018: 7.1%) and is due to a combination of transmission/distribution losses and losses due to illegal connections.

44

JUNE 2019R

JUNE 2018R

Total R

12. CAPITAL COMMITMENTS

Commitments in respect of Capital Expenditure:

Infrastructure 63 840 723 218 254 650

Land and Builidings 37 265 250

Other 7 441 266 175 563 026

Total 71 281 989 431 082 926

Carrying amount as at 30 June 2017

13. Operating Commitments

Contracted For:

Payable in one year 52 835 338 83 862 609

Payable within two to three years 665 755 4 712 397

Payable after three years 668 776 803 285

54 169 869 89 378 291

ACTUALS ADJUSTED BUDGET ACTUALS

JUNE 2019 JUNE 2019 JUNE 2018

14. SERVICE CHARGES

00110- Electricity (50kwh p/house pm) 138 800 885 122 364 660 117 468 751

02790.10-Business Cooking 36 259 925 38 225 610 36 985 593

02790.20- Business and General 2 275 619 871 2 344 287 810 2 542 674 366

02790.30-Private Lights 600 829 641 040 169 564

02790.40 - Two Rate - Scale 2 392 004 138 512 666 420 518 206 208

02845- Home Power 2 3 376 491 504 3 501 626 620 3 206 025 197

02855 - Home Power 4 0 0 0

02875-Industrial (11 000 Volts) 5 091 523 427 5 223 861 460 4 785 919 935

02905.10- Industrial Water Heating 7 089 780 7 090 630 6 874 532

02935.20- Domestic 1 162 775 257 1 235 459 660 1 054 712 118

Total Service Charges 12 481 165 616 12 986 223 910 12 269 036 266

45

JUNE 2019R

ACTUALSJUNE 2019

JUNE 2018R

ADJUSTED BUDJETJUNE 2019

ACTUALSJUNE 2018

15. RENTAL OF FACILITIES AND EQUIPMENT

01325- Straight-lined Operating 688 628 689 570 525 102

688 628 689 570 525 102

16. INTEREST EARNED

00815-Short Term Investments and Call Accounts 0 0 0

Total Interest Earned 0 0 0

17. INTEREST EARNED - OUTSTANDING DEBTORS

00725-Electricity 88 592 500 88 300 000 54 485 931

18. OTHER INCOME

02740.10 - Prepayment Connection Fees 32 130 189 21 368 000 29 763 936

02740.20 - Conventional Connection Fees 29 718 087 74 788 000 53 114 371

02745.10 - Meter Disconnect/Reconnection Fees 38 301 140 39 041 420 23 717 580

02745.20 - Sweep Reconnection Fees 849 385 849 680 465 725

02765 - Meter Readingt Fees 83 279 122 570 98 065

02880.20 - Lotus Park - Wheeling Charges 87 306 191 570 131 312

02880.30 - Wheeling Incentive 206 030 215 260 196 012

02900-Street Lighting 0 70 760 000 0

01010.50-Judgement Debts 824 561 1 014 240 4 941 791

01010.60- PAFC & Insurance 179 898 1 914 560 1 520 187

01070.10- Discount Received 2 694 652 2 694 720 2 329 745

01180.50-Identity Cards and name Badge 0 0 400

01250.30- Private Jobbing 5 420 165 1 050 000 3 554 889

01825-Infrastructure:Electricity 17 024 91 860 102 468

02120.10 - Training - Local Government 0 0 103 714

02120.20 - Training - Contractors 715 781 716 000 480 060

46

JUNE 2019R

ACTUALSJUNE 2019

JUNE 2018R

ADJUSTED BUDJETJUNE 2019

ACTUALSJUNE 2018

02120.30 - Training - Outside Organisations 987 638 988 150 764 111

02210- Development Charges 3 132 756 14 986 900 0

02465- Traffic Control 0 0 574 883

02504-Consumables 11 726 257 11 726 300 0

02505- Promios,Corp Gifts and Curios 2 732 7 800 3 947

02545 - Tender Document Fees 414 933 348 420 784 600

02580- Scrap 2 600 360 1 843 380 2 701 765

09010-Gains 16 930 0 22 905

16. INTEREST EARNED

Total Other Income 130 109 101 244 718 830 125 372 466

19. GOVERNMENT GRANTS AND SUBSIDIES

05145.10- Integrated National Electrification Programme 27 000 000 27 000 000 35 000 000

05145.11-Energy Efficiency & Deman 0 0 8 000 000

05145.18- Urban Settlement Development Grant 290 643 000 290 643 000 483 648 000

05765.10-Energy Efficiency & Deman 2 240 380 2 240 400 0

05770.11- Equitable Share 122 364 660 122 364 660 134 142 650

Total Government Grants and Subsidies 442 248 040 442 248 060 660 790 650

20. INTERNAL INCOME

27990.3082- Operating-Electrical 0 0 0

27990.3084-Operating-Labour Charge 198 665 838 324 118 140 418 480 772

27990.3086 - Operating - Labour General Workers 0 0 0

27990.3087 - Operating - Labour Graded Staff 0 0 0

27990.3090 - Non Effective Time 0 95 199 320 9 136 385

27990.3091 - Non Effective - Depot Artisan Labour 0 0 0

27990.3092 - None Effective Time - Leave 0 0 0

27990.3093 - Non Effective Time - Precompetent Artisan 0 0 0

27990.3101 - Office Rental- Drawing Office 34 416 36 130 34 416

27990.3102 - Office Rental- Mech Plant Workshops 1 158 240 1 216 120 1 158 240

27990.3103-OfficeRental-MMDDisposalYard 1 621 680 1 702 760 1 621 680

27990.3283 - Operating- Machine Cost Recoveries 0 124 460 0

27990.3289 - Recoveries - Vehicles and Plant 25 420 615 66 599 690 40 043 704

Activity Based Recoveries 226 900 789 488 996 620 470 475 198

47

JUNE 2019R

ACTUALSJUNE 2019

JUNE 2018R

ADJUSTED BUDJETJUNE 2019

ACTUALSJUNE 2018

27990.1297-Expense-Insurance Claims 38 660 109 0 5 048 258

27990.1298- Expense-Insurance Claims 19 274 839 0 0

27990.1325-Inter-departmental Damage Claims 986 826 6 510 000 6 330 314

27990.1460- Dept Recoveries-Int Interests 252 793 060 258 274 820 314 894 640

Departmental Recoveries 311 714 834 264 784 820 326 273 213

27990.2030-Internal Billing-Connections 1 717 939 0 0

27990.2050-Internal Billing-Electricity Consumption 364 547 072 395 513 730 401 391 119

27990.2070-Internal Billing-Electricity Traf 2 544 321 2 467 760 2 381 095

Internal Billing 368 809 332 397 981 490 403 772 213

Total Internal Income 907 424 955 1 151 762 930 1 200 520 624

21.EMPLOYEERELATEDCOSTS

13020.10- Permanet Staff 661 790 624 701 856 830 588 027 941

13020.20 - Temporary Staff 1 708 001 1 920 550 5 068 268

13040.20- Performance Bonus Provision 0 1 002 650 0

13070.20-Meal Allowance 4 693 298 4 693 370 3 887 501

13090.10 - Cell Phone Allowances 4 146 185 4 146 190 3 740 126

13090.20- Telephone Allowance 1 329 1 330 1 329

13125- Incidental: Housing Benefits 4 752 509 8 434 680 5 495 968

13140- Payments in Lieu of Leave 0 0 0

13160.10 - Locomotion Allowances 58 067 519 58 067 540 51 046 705

13160.20- Travel Allowance 115 561 122 940 110 616

13190- Non Structured Overtime 181 608 923 183 123 080 163 749 392

13195- Structured Overtime 2 342 649 2 343 160 1 910 867

13200.20- Shift Allowance 0 0 0

13205- Night Shift 3 077 344 3 077 370 2 772 030

13225- Annual Bonus 51 006 669 58 726 780 45 831 812

13245- Scarcity Allowance 42 613 288 42 613 400 38 979 994

13265-Entertainment 0 0 0

13310 - Medical Aid 59 873 887 72 380 220 53 895 075

13315- Pension 115 502 696 115 502 720 103 324 159

13320 - Unemployment Insurance Fund 4 596 491 5 234 140 4 348 768

13342.20- Pensioners Medical Aid 20 129 052 20 129 050 14 575 220

13370.10- Council Pensioners 5 263 536 5 263 530 6 986 590

13030 - Basic Salary and Wages-Capitalised Offset -21 690 822 0 -23 445 461

Total Employee Related Costs 1 199 598 737 1 288 639 530 1 070 306 902

48

JUNE 2019R

ACTUALSJUNE 2019

JUNE 2018R

ADJUSTED BUDJETJUNE 2019

ACTUALSJUNE 2018

22. INTEREST PAID

141 485 317 147 162 040 144 846 190

13635 - Annuity Loans 0 0 7 026

13740 - Consumer Deposits

141 485 317 147 162 040 144 853 217

Total of Interest Paid

23. DEPRECIATION

23.1 Amortisation

0 0 0

11910-Intangible Assets 0 770 684 0

11915-Servitudes 19 960 566 28 124 444 18 905 701

11925-Computer Software and Application

19 960 566 28 895 128 18 905 701

23.2 Depreciation

12060-Computer Equipment 5 537 717 4 992 409 5 592 293

12080-Furniture and Office Equipment 1 975 612 1 852 306 1 870 599

12110-Electrical Infrastructure 0 0 251 108 877

1211.11-HV Substations 22 567 917 33 284 637 0

12110.12-Dep.Elect-HV Switch Station 2 418 135 2 662 756 0

12110.13-Dep.Elect-HV Trans Conduct 2 226 868 8 014 595 0

12110.14-Dep.Elect-MV Substations 116 982 584 114 370 667 0

12110.15-Dep.Elect-MV Switch Station 40 252 900 41 687 364 0

12110.16-Dep.Elect-MV Networks 28 125 339 22 773 943 0

12110.17-Dep.Elect-LV Networks 40 311 195 54 265 928 0

12260-Infrastructure-Water 0 0 0

12300-Machinery and Equipment 25 783 874 27 527 090 27 567 530

12320-Transport Assets 28 368 496 21 912 679 29 043 249

12360.12-Dep.Network/Comm-Dist Layer 452 959 0 0

12370.11-Dep.Community Asset-Cntres 26 067 3 022 977 0

12375-Other Assets 0 0 6 888 167

12375.11-Dep.Othr Opr Bldg-Municipal Offices 6 678 829 1 996 397 0

123745.14-Dep.Othr Opr Bldg-Workshop 3 631 410 0

12375.18-Dep.Othr Opr Bldg-Training Centres 21 306 0 0

12375.20-Dep.Othr Opr Bldgs-Depots 2 018 031 1 441 754 0

323 751 460 339 805 912 322 070 714

Total Depreciation and Amortisation 343 712 025 368 701 040 340 976 415

49

JUNE 2019R

ACTUALSJUNE 2018

JUNE 2018R

ADJUSTED BUDJETJUNE 2018

ACTUALSJUNE 2018

24. BULK PURCHASES

10310.10 - Network Demand Charge 3 243 703 3 245 580 3 023 325

10310.11 - Dist.Network Charge 6 363 400 6 364 550 5 650 460

10310.12 - Key Customer Service Charge 1 362 366 1 369 540 1 269 444

10310.13 - Energy Charge (Peak) 2 538 444 276 2 545 924 430 2 383 898 919

10310.14 - Energy Charge (Std) 3 021 114 881 3 033 665 710 2 825 498 070

10310.15 - Energy Charge (Off) 1 866 341 617 1 866 341 760 1 715 633 630

10310.16 - Rate Rebalancing Levy 817 557 109 819 626 470 759 005 525

10310.18 - Eskom - Admin. Charge 238 215 250 910 228 996

10310.19 - Transmission Network Charge 245 632 355 245 633 080 228 729 206

10310.20 - Residual Connection Charge 501 552 538 260 501 552

10310.21 - KVARH Surcharge 173 893 175 000 4 673

10310.23 - Streelighting 0 0 0

10310.24 - Reliability Charge 36 414 880 37 371 230 34 095 660

10310.25 - Urban Low Voltage Subsidy 344 448 478 344 448 480 320 924 148

10350.10 - Tongaat Hullet Sugar Mil 2 238 836 4 070 270 1 527 374

10350.11 - Co-Generation Energy 0 937 070 145 349

8 884 075 561 8 909 962 340 8 280 136 332

Total Bulk Purchases

25. REPAIRS AND MAINTENANCE

11065-Electrical 25 291 973 24 261 280 15 800 967

11430-Electrical 332 913 973 490 777 290 393 436 505

11460-First Aid 0 0 0

11560-Maintenance of Buildings and F 19 168 939 19 712 440 13 285 195

11570-Maintenance of Equipment 11 320 360 12 166 040 12 084 675

11650-Prepaid Electricity Vendors 0 45 709 590 0

11690-Traffic and Street Lights -1 092 890 76 113 000 1 092 890

Repairs and Maintenance-External 387 602 355 668 739 640 435 700 231

50

JUNE 2019R

ACTUALSJUNE 2018

JUNE 2018R

ADJUSTED BUDJETJUNE 2018

ACTUALSJUNE 2018

27999.7066- Operating-Labour 203 408 325 324 118 140 427 010 300

27999.7172- Vehicle, Plant and Equipment 63 517 0 173 210

27999.7210-Vehicle to Operating 25 420 615 66 599 690 40 043 704

Repairs and Maintenance-Internal 228 892 457 390 717 830 467 227 214

14300-Material and Supplies 253 017 748 356 238 820 233 074 858

14310-Vehicle and Plant Capital -3 540 735 -1 575 000 -2 701 175

Repairs and Maintenance-Materials and Supplies 249 477 014 354 663 820 230 373 683

Total Repairs and Maintenance 865 971 826 1 414 121 290 1 133 301 128

26. CONTRACTED SERVICES

10947-Forensic Investigators 4 024 902 5 034 500 0

10955-Medical Examinations 0 0 0

10985.11-Monitoring & Evaluation 6 548 249 6 548 700 3 444 692

11440.10 - Employee Assistance Programme 51 473 51 500 0

11470-Fire Protection 141 417 99 900 0

10580-Occupational Health and Safety 0 450 360 28 789

10595-Research and Advisory 0 197 140 0

10600 - Qualification Verification 0 0 0

10640 - Cleaning Services 6 352 680 5 785 720 5 044 024

10650.10 - Bush Clearing 25 261 482 25 656 620 20 399 799

10650.13 - Ground Maintenance 10 460 66 500 19 558

10670.10-Hygiene Services 44 840 104 000 0

10720.10 - Consult Fees and Disbursement 0 90 83 846

10720.11 - Contract Meter Reading 2 515 694 13 333 320 2 220 270

10720.12 - Illegal Services 3 216 835 10 786 720 8 251 412

10720.13 - Inspects-Meter Sweep (Tamp 31 389 934 31 397 760 17 546 817

10780-Professional Staff 0 7 244 810 0

10795 - Electricity 18 982 001 21 557 530 15 911 828

10840.12 - External Security 103 962 503 128 721 180 96 316 328

Total Contracted Services 202 502 469 257 036 350 169 267 364

51

JUNE 2019R

ACTUALSJUNE 2018

JUNE 2018R

ADJUSTED BUDJETJUNE 2018

ACTUALSJUNE 2018

27. GENERAL EXPENSES

14105.17- Cleaning Materials 225 513 309 870 336 338

14105.18 - Computer Stationery 1 394 950 1 395 340 1 233 510

14105.19 - Consumables 2 486 176 2 784 350 1 757 027

14105.28 - Identity Cards 0 0 0

14105.32 - Mechanical Training Expenses 454 20 797 125

14105.34 - Oil 51 898 206 660 66 391

14105.43 - Purchase of Paper-General 0 0 0

14105.44 - Purchase of Paper- Direct 0 0 0

14105.45 - Refuse Bags 46 371 194 650 17 404

14105.47 - Spares 1 060 240 1 526 410 1 221 472

14105.48 - Stationery 1 757 384 2 097 090 1 161 468

14105.49-Tyres & Tyre Consumables 2 903 685 2 905 000 2 526 116

14105.51 - Vending Consumables 18 654 18 700 14 369

14110.10 - Fuel 23 391 087 23 437 000 21 303 414

Consumable Stores 33 336 412 34 875 090 30 434 635

15200 - Buildings 10 300 428 12 502 690 9 892 870

15400- Furniture and Office Equipment 1 035 888 1 036 690 633 167

15900 - Machinery and Equipment 10 814 1 478 650 620 263

Operating Leases 11 347 129 15 018 030 11 146 301

16325 - Gifts and Promotional Items 648 329 789 230 513 152

16330 - Municipal Newsletters 0 0 0

16345 - Tenders 0 0 0

16405 - Computer Hardware and Accessories 1 229 219 1 564 900 717 043

16425 - Minor Equipment Purchases 2 761 487 2 775 190 1 869 544

16435 - Safety Equipment 280 571 448 010 403 367

16605.30 - Bank Charges- Nedbank 0 0 0

17000 - Bursaries (Employees) 3 812 866 3 965 000 3 616 436

17100 - Cash Discount 0 0 0

17305 - Laundry Services 483 094 478 800 458 992

17410- Prepaid Electricity 24 739 202 29 022 680 27 917 759

17705.20 - Cellphone 0 24 830 0

17705.30-Datacards 9 254 080 8 190 000 276 538

17710 - Licences (Radio and Television 12 897 13 000 7 155

17715 - Postage/Stamps/Franking Machin 51 177 63 000 42 386

17735 - SMS Bulk Message Service -4 690 998 0 4 690 998

17740.10 - Telephones 12 262 549 12 263 190 9 762 469

52

JUNE 2019R

ACTUALSJUNE 2018

JUNE 2018R

ADJUSTED BUDJETJUNE 2018

ACTUALSJUNE 2018

17740.10 - Telephones 12 262 549 12 263 190 9 762 469

17750 - Telephone Instalations 0 160 610 18 235

18105 - Drivers Licence 251 572 292 500 157 560

18110 - Public Drivers Permits 51 513 130 880 68 329

18515 - Senior Management 258 851 258 930 196 376

18620.20 - Internet Charges 0 0 0

18630 - Network Extensions 286 178 1 575 000 1 598 921

18645 - Software Licences 21 444 356 54 217 900 9 458 751

18655.20 - Contractors - Computers 101 152 954 110 000 010 39 532 151

18655.30 - Software Support/ Maintenance 6 252 673 5 635 510 2 099 661

18950.10-Hire Charges 393 576 394 390 271 265

19050 - Indigent Relief 1 938 465 2 257 500 1 975 774

19510 - Motor Vehicle Licence and Registration 3 691 130 3 817 250 3 540 893

19925 - National 4 655 491 7 312 500 1 236 799

19930 - International 7 233 500 000 50 670

20010 - Information Search 0 0 0

20200 - Office Decorations 2 924 3 200 6 011

20305 - Books, Publications & Periodic 65 489 66 000 48 528

20320 - Newspapers 18 978 89 510 84 639

20325 - Printing & Bookbinding 210 264 212 370 140 102

20330 - Training Material 0 0 0

20400 - Professional Bodies, Membership fees 744 771 795 850 692 239

20700 - Rewards Incentives 0 0 0

20800 - Road Worthy Test 0 0 0

21305 - Storage of Files (Archiving) 64 722 83 370 128 985

21310 - Scanning of Documents 0 0 0

21820 - Municipal Activities 0 6 077 520 0

21920 - Accomodation 532 500 532 620 468 884

21930 - Daily Allowance 0 0 0

21940 - Food and Beverages 0 0 0

21950 - Incidental Cost 124 141 151 580 290 053

21965 - Car Rental 142 758 148 160 142 855

22005 - Air Transport 512 269 513 290 382 897

22040 - Accomodation 34 812 124 500 0

22050 - Daily Allowance 0 0 0

22060 - Food and Beverages 0 0 0

22070 - Incidental Cost 316 320 0

22085 - Car Rental 3 273 3 500 0

22115 - Air Transport 189 009 189 690 81 959

22160 - Transport 78 563 78 750 43 556

22200 - Uniform and Protective Clothing 16 960 314 19 488 940 13 708 415

26100- Electricity (50kwh p/house pm) 138 800 885 122 364 660 117 468 751

Operational Cost 349 714 448 397 074 640 244 169 097

Total General Expenses 394 397 990 446 967 760 285 750 033

53

JUNE 2019R

ACTUALSJUNE 2018

JUNE 2018R

ADJUSTED BUDJETJUNE 2018

ACTUALSJUNE 2018

28. INTERNAL CHARGES

27999.5315-Insurance Claims-Capital 0 0 672 853

27999.7040-Activity Based-Fire Brig 1 476 0 -

27999.7067 - Operating Labour- Festive Lighting 0 0 0

27999.7068 -Non Effective Time 0 95 199 320 9 136 385

27999.7075 Office Rent - Branch Office 13 059 681 15 476 429 14 739 456

27999.7077-Office Rent-Dept 0 1 301 556 60 610

27999.7090 - Activity Based Printing 268 095 346 400 595 672

27999.7101-Printing/Repro&Postage 0 0 2 061

27999.7173-Machine Costs 0 124 460 0

27999.7160 - Activity Based Training 0 0 0

27999.7191-Rent-Adhoc Hire-Plan 6 249 526 0 9 053 775

Activity Based Charges 19 578 778 112 448 165 34 260 811

27999.5022 - Acctng - Annual Financial 2 823 010 2 822 438 1 407 735

27999.5023 - Acctng - Capital 379 459 381 410 525 999

27999.5081 - Audit, Invest & Risk-Audit 9 930 950 9 930 940 9 458 050

27999.5082 - Audit, Invest & Risk-Ci 4 886 820 4 886 820 4 654 115

27999.5100 - Dept Charges-Budgets 797 250 584 639 1 007 198

27999.5101 - Budgets- Budget Office 0 0 0

27999.5166 - IT System App- Info Ser 17 209 860 18 070 353 17 209 860

27999.5181 - IT Radio Maint - Radio R 1 918 316 1 687 984 1 607 446

27999.5202 - Cross Subsi-Elec Serv 195 606 260 815 960 396 125 146

27999.5207 - Cross Subsid- Trading Co 624 044 590 624 044 590 652 211 921

27999.5208 - Cross Subsid- Addl Contr 181 009 540 181 009 540 39 089 071

27999.5221 - Democractic Process-Comm 1 378 489 1 378 489 980 965

27999.5261 - Employee Benefits - Housi 789 947 789 940 752 330

27999.5301 - Expense - Bank Reconcilia 1 057 909 1 149 044 2 063 348

27999.5303 - Expense - Investments 1 022 358 1 022 409 0

27999.5305 - Expense - Skills Developm 0 0 0

27999.5306 - Expense - Vehicle Monitor 2 861 100 2 935 680 2 794 680

27999.5307 - Expense - Vehicle Capex A 0 0 0

27999.5311-Expense-Repairs and Maintenance 4 502 535 0 0

27999.5341 - General Admin - Travel Booking 18 075 18 075 54 032

27999.5351 - Green Elec - Bisassar Road 2 329 881 18 500 000 19 662 460

27999.5352 - Green Elec - Marianhill Landfill 2 185 220 4 212 000 3 580 646

27999.5362 - Hr Recruitment - HR Services 19 426 900 19 426 890 20 324 642

27999.5381 - Insurance Fees - Insurance 1 531 301 1 541 838 1 229 506

27999.5382 - Insurance Fees - Insurance 30 222 417 30 034 856 30 473 759

27999.5521 - Legal Services - Legal Services 2 047 914 1 881 000 1 791 430

54

JUNE 2019R

ACTUALSJUNE 2018

JUNE 2018R

ADJUSTED BUDJETJUNE 2018

ACTUALSJUNE 2018

27999.5521 - Legal Services - Legal Services 2 047 914 1 881 000 1 791 430

27999.5541 - Mngmnt Support - Executive 7 699 425 7 699 425 0

27999.5580 - Dept Charges - Municipal M 379 825 379 830 361 730

27999.5601 - OHS & Employment Wellness C 2 365 537 2 365 533 2 252 890

27999.5602 - OHS & Employment Wellness M 3 146 791 3 146 784 2 996 938

27999.5603 - OHS & Employment Wellness P 139 639 1 100 000 125 960

27999.5661 - Payroll - Pay Admin 0 0 27 836

27999.5721 - Procurement - Contract Mgmnt -2 027 616 209 195 456 424

27999.5722 - Procurement - Policy Enforcement 5 198 655 3 160 340 381 329

27999.5727 - Procurement - Tenders & C 0 0 0

27999.5750 - Dept Charges - Rates Charges 23 258 777 11 992 150 4 864 207

27999.5781 - Revenue Mngmt - Consolidated 100 200 259 98 340 120 48 924 243

27999.5782 - Revenue Mngmnt - Regional 750 840 818 420 750 840

27999.5801 - Security - Security Servs 3 905 904 4 726 144 3 905 904

27999.5881 - Training & Dev-Training 239 065 50 000 38 586

27999.5882 - Training & Dev- Skills Dev 10 805 930 10 805 930 10 291 350

27999.5900 - Dept Charges - Valuations 2 143 444 724 500 1 966 076

27999.7103 - Microfilming & Photographic Material 65 408 0 50 652

Departmental Charges 1 070 841 327 1 332 643 266 1 284 399 303

27999.6050 - Int Billing-Electricity Consumption 12 098 546 1 982 190 52 431 214

27999.6131 - Refuse Removal 43 373 977 1 072 800 2 493 308

27999.6140 - Int Billing- Sanitation 1 250 0 1 548 828

27999.6150 - Int Billing- Water Consumption 27 345 118 9 691 321 7 545 659

Internal Billing 82 818 890 12 746 311 64 019 009

Total Internal Charges 1 173 238 995 1 457 837 742 1 382 679 123

55

JUNE 2019R

ACTUALSJUNE 2018

JUNE 2018R

ADJUSTED BUDJETJUNE 2018

ACTUALSJUNE 2018

29. BAD DEBTS

29265-Impairment Loss-Furniture and Office Equipment 3 137 3 140 0

29275-Impairment Loss-Infrastructure-Electricity 1 510 260 1 510 650 0

29345 - Impairment Loss - Electricity 221 157 516 217 672 387 144 839 599

222 670 913 219 186 177 144 839 599

Less:

01020 -Operational Revenue- Bad Debts Recovered -14 -710 260 -82 896

Total Bad Debts 222 670 899 218 475 917 144 756 702

30. OTHER

29925 - Contribution to Capital Grants 0 317 643 000 0

29930 - Depreciation Offset 0 -214 757 002 0

29920 - Contribution to Capital Replacement Reserve 0 301 154 293 0

29620 - Losses 16 502 233 1 159 000 50 205 395

29640 - Write-down to net-realisable Value -55 420 0 0

Total Other 16 446 814 405 199 291 50 205 395

56

ANNUAL FINANCIAL STATEMENTSSTATISTICAL DATA AND FINANCIAL PERFORMANCE

Note ACTUALS ADJUSTED BUDGET RESTATED ACTUALS

JUNE 2019 JUNE 2019 JUNE 2019

REVENUE R R R

Revenue from exchange transactions

Service Charges 14 12 481 165 616 12 986 223 910 12 269 036 266

Rental of Facilities and Equipment 15 688 628 689 570 525 102

Interest Earned 16 0 0 0

Interest Earned - Outstanding Debtors 17 88 592 500 88 300 000 54 485 931

Other Income 18 130 109 101 244 718 830 125 372 466

GainsondisposalofProp;Plant;Equip (1 246 066) 210 000 1 245 541

Transfer to Accumulated Surplus 0 - -1 302 033 713

Internal Income 20 907 424 955 1 151 762 930 1 200 520 624Total revenue from exchange transactions 13 606 734 735 14 471 905 240 12 349 152 218

Revenue from non-exchange transactions

Transfer revenue

Government Grants and Subsidies 19 442 248 040 442 248 060 660 790 650Total revenue from non-exchange transactions 442 248 040 442 248 060 660 790 650

Total Revenue 14 048 982 774 14 914 153 300 13 009 942 868

EXPENDITURE

Employee Related Costs 21 1 199 598 737 1 288 639 530 1 070 306 902

Contrib. to Provision for Bad Debts 29 222 670 899 218 475 917 144 756 702

Amortisation 23 19 960 566 28 895 128 18 905 701

Depreciation 23 323 751 460 339 805 912 322 070 714

Repairs and Maintenance 25 865 971 826 1 414 121 290 1 133 301 128

Interest Paid 22 141 485 317 147 162 040 144 853 217

Bulk Purchases 24 8 884 075 561 8 909 962 340 8 280 136 332

Contracted Services 26 202 502 469 257 036 350 169 267 364

General Expenses 27 394 397 990 446 967 760 285 750 033

LossondisposalofProp;Plant;Equip 16 158 50 000 7 710 257

Internal Charges 28 1 173 238 995 1 457 837 742 1 382 679 123

Transfer from Acc Surplus 604 865 985 0 0

Total Expenditure 14 032 535 961 14 508 954 009 12 959 737 473

Operating Surplus 16 446 814 405 199 291 50 205 395

Other 30 -16 446 814 -405 199 291 -50 205 395

SURPLUSFORTHEYEAR 0 0 0

STATEMENTOFFINANCIALPERFORMANCEFORTHEYEARENDED30JUNE2019

EThekwini Electricity Annual Report | 2017/18

57

CUSTOMER BASE STATISTICS

11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19

NUMBER OF CUSTOMERSBusiness & General Cust. 43 879 44 654 44 344 44 164 44 172 44 196 44 027

44 739 Private Residences Cust. 321 904 322 844 319 875 311 817 310 333 323 313 325 817 319 335

Other Cust. 4 4 4 4 4 4 4 4

Bulk Cust. 819 888 959 1 009 1 040 1041 1 056 1 070

Prepayment Cust. 333 434 342 705 358 411 367 483 378 456 380 513 397 160 412 049

Total Cust. 700 040 711 095 723 593 724 477 734 005 749 067 768 064 777 197

SECTOR OF USE Units

Business & General kWh 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 2 337 909 908 2 378 069 186

Private Residences kWh 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 2 470 830 692 2 447 513 532

Other kWh 86 221 641,38 95 297 605 112 538 964 118 165 912 124 074 208 130 277 918 136 791 814 136 791 814

Bulk kWh 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 4 448 131 140 4 483 985 959

Prepayment kWh 826 397 418,54 819 810 059 840 892 154 878 206 982 894 271 613 851 776 817 844 960 856 870 381 359

Total kWh 10 798 574 412 10 744 964 894 10 549 872 192 10 186 830 978 9 984 286 923 10 290 295 040 10 238 624 410 10 316 741 850

UNITS GROWTH Units

Business & General kWh -6,79% -13,06% -4,41% -9,75% -3,64% 6,29% 11,74% 1,72%

Private Residences kWh -0,19% 7,38% -1,35% -5,23% -9,35% 13,79% -4,41% -0,94%

Other kWh 106,34% 10,53% 18,09% 5,00% 5,00% 5,00% 5,00% 0,00%

Bulk kWh 1,83% 2,47% -1,95% -1,00% 1,81% -2,01% -3,95% 0,81%

Prepayment kWh 4,66% -0,80% 2,57% 4,44% 1,83% -4,75% -0,80% 3,01%

Total kWh -0,35% -0,50% -1,82% -3,44% -1,99% 3,06% -0,50% 0,76%

INCOME Units

Business & General Rand 2 064 278 962 2 232 766 352 2 486 098 587 2 448 927 248 2 733 899 709 2 981 864 026 2 960 031 429 2 931 255 844

Private Residences Rand 2 534 662 071 2 710 411 169 2 772 408 183 2 842 228 419 3 135 221 345 3 356 733 252 3 246 065 312 3 413 458 247

Other Rand 51 154 591 51 019 905 50 940 590 56 883 781 64 701 771 66 229 880 67 475 000 76 293 983

Bulk Rand 3 207 748 156 3 635 164 500 3 744 530 467 4 194 313 701 4 666 435 297 4 790 383 781 4 953 528 846 5 271 702 988

Prepayment Rand 695 382 979 757 018 411 813 908 747 888 967 960 952 722 585 1 147 118 851 1 054 628 796 1 301 576 143

Total Rand 8 553 226 758 9 386 380 338 9 867 886 574 10 431 321 108 11 552 980 707 12 342 329 790 12 281 729 383 12 917 993 222

CENTS/UNIT Units

Business & General Cents 75,80 94,30 109,84 119,88 138,89 142,52 126,61 123,26

Private Residences Cents 101,55 101,13 104,85 113,43 138,02 129,86 131,38 139,47

Other Cents 59,33 53,54 45,26 48,14 52,15 50,84 49,33 55,77

Bulk Cents 68,74 76,02 79,86 90,36 98,74 103,44 111,36 117,57

Prepayment Cents 84,15 92,34 96,79 101,23 106,54 134,67 124,81 149,54

Total 79,21 87,36 93,54 102,40 115,71 119,94 119,95 125,21

58

NOTES

57

1 Jelf Taylor CrescentPO Box 147, Durban

031 311 1111Contact Centre: 080 311 11 11

Email: custocare@elec.durban.gov.za