Background The electrification programme was started by Eskom during the late 1980’s It was further refined by the National Electrification Forum (NELF) during the early 1990’s. Access to electricity for households in RSA was approximately 30%. During this period the electrification programme was funded through the National Electricity Regulator (NER)

Background Cont. After 1994 and through the government’s initiative of RDP (Reconstruction and Development Programme), electrification programme was endorsed. During 2001 the government took responsibility for funding electrification programme. The funds are made available from the fiscas President’s State of Nation Address (universal access in RSA by 2012)

MANDATE OF INEP To manage the electrification planning, funding and implementation process, with the aim of addressing electrification backlog so as to reach universal access by 2012. Our Focus areas Managing the electrification planning process Managing the electrification funding allocation process Managing the electrification implementation process Monitor the INEP in line with the Energy white paper, the Division of Revenue Act (DoRA, Public Finance Management Act (PFMA),ER Act, OHS Act etc.

SITUATIONAL ANALYSIS

National backlog (Households) Province Eskom Area Municipal Area Total Backlog Eastern Cape 625,760 103,721 729,481 Free State 156,805 44,507 201,312 Gauteng 256,750 415,969 672,719 Kwazulu-Natal 657,642 156,890 814,532 Limpopo 345,725 36,460 382,185 Mpumalanga 155,137 60,343 215,480 North West 150,142 27,859 178,001 Northern Cape 45,302 11,326 56,628 Western Cape 75,759 90,436 166,195 Total 2,469,022 947,511 3,416,533

National backlog cont.(H/H)

National backlog (Schools and Clinics) Province Schools Clinics Eastern Cape 1924 Free State 157 Gauteng Kwa Zulu-Natal 2230 Limpopo 263 Mpumalanga 400 North West 151 Northern Cape 6 Western Cape Total 5131

TRANSMISSION SUBSTATIONS Electricity value chain GENERATION Electricity is Generated by burning of fossil fuels (coal, oil, or natural gas), use of nuclear technology and hydro capability 2 TRANSMISSION SUBSTATIONS MUNICIPALITIES 1 TRANSMISSION LINES 3 TRANSMISSION (400/275 kV) POWER STATIONS High Voltage electricity is carried between Generation and required Distribution through Transmission networks (or Transmission grids) DISTRIBUTION LINES DISTRIBUTION (132/33 kV) The distribution networks collect ‘stepped down’ electricity from the transmission networks and deliver it to Redistributors /End Users DISTRIBUTION SUBSTATIONS The voltage levels of electricity are further transformed to meet Distribution requirements SERVICE CONNECTION RETICULATION HV LINE (11 & 22kV) Customer consumption is measured at the point of supply in KWh. This information is used to measure and bill consumption levels utilised/sold RETICULATION LV LINE (380/220V)

Electrification Plan (Actual data)

Electrification Projected Trend

CHALLENGES Challenges in the Electricity industry in South Africa Ageing electricity infrastructure Minimum or no investment by respective distributors (municipalities) in the operation and maintenance of the electricity infrastructure to date, hence lack of maintenance. Increased blackouts and brownouts in the country, concern for quality and security of supply for the 2010 FIFA World cup Limited or lack of adequate skills at local government level for operation and maintenance electricity infrastructure.

Electrification outputs Project life cycle Pre-Engineering and Detailed design Household connection 80 % Construction for backbone infrastructure Poles Cables MV and LV 15% 5% Start Finish

Electrification outputs Project life cycle Pre-Engineering and Detailed design Household connection 80 % Construction for backbone infrastructure Poles Cables MV and LV 15% 5% Start Finish

Projected outputs for MTEF

DoRA FRAMEWORK

Comments (current) Current framework support the projected outputs Connections for households, schools and clinics Building of bulk infrastructure Assist in monitoring performance Reallocate funding were is required (if necessary)

Comments (future) Have a schedule that allows funding of DSM and Energy Efficiency initiatives for municipalities Framework outputs MW shifted through the programme Assist in monitoring performance Process to be initiated with National Treasury

INSTITUTIONAL AND LEGISLATIVE FRAMEWORK Electricity Regulation Act (Act. No 4 of 2006) completed, will be used to: Monitor compliance to the quality of supply regulations (to be completed by the end of October 2006. Enforce penalties to distributors for non-compliance Improve integration during planning process with municipal IDP. Eskom progress report to municipalities as per DoRa requirement

THANK YOU Questions….?