Economics Services

1
Presentation to the Portfolio Committee on
Minerals and Energy on the Electricity
Regulation Bill B 29 2005 REINTRODUCED 31
OCTOBER 2005
Chamber of Mines of South Africa
Economics Services
2
PRESENTED BY

• DICK KRUGER
• ASSISTANT ADVISER TECHNO-ECONOMICS
• CHAMBER OF MINES

Economics Services
3
THE CHAMBER OF MINES

• PRIVATE SECTOR MINING EMPLOYER ORGANISATION
• COMPANIES AND ASSOCIATIONS
• 90 OF MINING INDUSTRY BY VALUE

Economics Services
4
MINING INDUSTRY

• 6,2 OF GDP OR R55 BILLION
• 417 000 EMPLOYEES
• 1 200 ELECTRICITY CUSTOMERS

Economics Services
5
MINING INDUSTRY

• 17,6 OF ELECTRICITY SOLD
• 110 000 000 TON COAL

Economics Services
6
ELECTRICITY ON MINES

• MAJOR ENERGY CARRIER
• PRODUCTION EQUIPMENT
• SAFETY CRITICAL APPLICATIONS

Economics Services
7
ELECTRICITY ON MINES

• SUPPLY TO NON MINING APPLICATIONS
• HOSTELS AND HOUSES
• HOSPITALS, CLINICS, SCHOOLS ETC

Economics Services
8
Electricity distribution on mines
Receiving substation
Electricity from Eskom
Mine substation
Hostels/houses
workings
plant
other consumerson property
workshops
Economics Services
9
POLICY

• EDI RESTRUCTURING ?
• DEVIATION FROM POLICY ?
• UNCERTAINTY

Economics Services
10
OWN DISTRIBUTION

• DEFINITION lt 132 kV
• gt LICENCE FOR OWN SYSTEM
• UNDUE BURDEN NO VALUE
• EXCLUDE OWN DISTRIBUTION

Economics Services
11
PRIVATE DISTRIBUTION

• OTHER CONSUMER ON MINES
• NO OTHER SUPPLY
• EXCLUDE lt 50GWh / ANNUM WHERE NO PROFIT

Economics Services
12
CUSTOMER RIGHTS

• NOT IN BILL
• OBJECT SAFEGUARD NEEDS AND INTERESTS OF
  CUSTOMERS
• REGULATIONS ON RIGHTS

Economics Services
13
DISPUTES

• AMBIGUOUS PROVISIONS
• FUNCTION OF REGULATOR

Economics Services
14
OTHER ISSUES

• RIGHTS OVER STREETS
• ISSUING OF LICENSES
• CUSTOMER CATEGORIES

Economics Services
15
QUESTIONS ?
Economics Services