An EDI Solution Presentation to the combined Parliamentary Portfolio Committees of Energy & Cooperative Governance and Traditional Affairs July 31, 2012
The Presenter Ken Robinson joined Accenture (in the former partnership) in 1969 and he qualified as a Chartered Accountant (South Africa) in 1974. He is a member of Accenture’s Resources Practice specialising in electricity. He has managed major process, information system and strategic change projects for clients across many industries, with 18 years in electricity. He is a former president of the Institute of Management Consultants of South Africa
Separate Issues Being joined by new meter technology Wires Customers National tariffs Free basic electricity Prepayment vs. Debt collection Demand Side Management Universal access Reliable supply Losses
Competition is not the Answer Wires Customers Natural monopoly Best not to promote sales just yet!
Political boundaries do not suit Wires Buffalo City boundary is crossed by the Eskom network in 32 places Municipal boundary Transmission MV lines
Eskom is a competent distributor with an appropriate operating model Governance Mandate Processes KPIs Organisation structure Competencies Business behaviour (culture) Technology Data Systems Facilities Budget & Capital Resources Relationships
Solution Government & Eskom prepare for distributor mergers Eskom states how many mergers it can achieve across its provincial operations – supported by shareholder May require changes to laws & regulations Requires a valuation framework Regulator applies distribution standards to all distributors Regulator withdraws licences from the “20 lowest” May be for failure of Wires and/or Customer operations These municipalities must choose a supplier May choose Eskom, City Power, Centlec, other licensed distributor Many will choose Eskom Eskom & other distributors manage “going concern” mergers Employees, assets, shared assets, asset data, liabilities, obligations, customer data, facilities, contracts (e.g. meter reading)