Ba Phalaborwa Municipality The Home of Marula and Wildlife Tourism - PowerPoint PPT Presentation

Ba ‐ Phalaborwa Municipality “The Home of Marula and Wildlife Tourism” Public hearing on electricity tariff increase

ELECTRICITY PROJECTS • Upgrading of electricity infrastructure from single to 3 phase, phase 2,3 and 4 in Phalaborwa R4,000,000.00 • ∙ Refurbishment of substations in Phalaborwa R2,200,000.00 • ∙ Electrical Infrastructure Reticulation for the new sites in Gravelotte R1,300,000 • ∙ Installation of ring main units Phalaborwa R2,800,000.00 • Installation of Streetlights Hendrick van Eck R3,000,000.00 (Unfunded)

BUDGET • Revenue Collection R62,308,000.00 • Bulk purchase R53,175,000

Tariff increase • 2009/10 KWH Charge ( Conventional) R0,731 • 2010/11 @ 28% increase R0,9357 • 2009/10 KWH Charge (Pre ‐ Paid) R0,715 2010/11 @28% increase R0,9152

NERSA compliance report Jan 2008 • No ring fencing of Electricity Services Separate electricity distribution affairs from other affairs by 2010/11 • Breach of asset management practices: No maintenance plan, No asset register and asset management policy. Establish asset management policy and plan

Compliance Report Continues • No master plan for strategic planning Develop master plan By 2010 • Network assessment – non compliance of substations: batteries, rusted fence and corroded signs; un ‐ serviced fire extinguishers, vegetation control Implement the requirements of NRS on maintenance of substations and conduct preventative maintenance

Compliance Report Continues • Two outgoing lines from intake’s poles need replacement Implement the requirements of NRS on maintenance of overhead lines and conduct preventative maintenance

Public Participation • Tariff increase of 40% were public participated with no objections. • 28% increment was revised after consultation with NERSA

Conclusion • For the Municipality to comply to NERSA supply requirements by maintaining the infrastructure and ring fencing of electricity assets, an increase of 28% is recommended. • Reliable electricity services will be in line with the Municipality’s Vision of “Best Tourist Destination in Limpopo by 2020”

THE END THANK YOU