Economics Services Presentation to the Portfolio Committee on Minerals and Energy on the Electricity Regulation Bill B 29 – 2005 REINTRODUCED 31 OCTOBER.

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Presentation transcript:

Economics Services 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 PRESENTED BY DICK KRUGER ASSISTANT ADVISER: TECHNO-ECONOMICS CHAMBER OF MINES

Economics Services THE CHAMBER OF MINES PRIVATE SECTOR MINING EMPLOYER ORGANISATION COMPANIES AND ASSOCIATIONS 90 % OF MINING INDUSTRY BY VALUE

Economics Services MINING INDUSTRY 6,2 % OF GDP OR R55 BILLION EMPLOYEES ELECTRICITY CUSTOMERS

Economics Services MINING INDUSTRY 17,6 % OF ELECTRICITY SOLD TON COAL

Economics Services ELECTRICITY ON MINES MAJOR ENERGY CARRIER PRODUCTION EQUIPMENT SAFETY CRITICAL APPLICATIONS

Economics Services ELECTRICITY ON MINES SUPPLY TO NON MINING APPLICATIONS HOSTELS AND HOUSES HOSPITALS, CLINICS, SCHOOLS ETC

Economics Services Electricity distribution on mines Receiving substation Mine substation Electricity from Eskom Hostels/houses workshops workingsplantother consumers on property

Economics Services POLICY EDI RESTRUCTURING ? DEVIATION FROM POLICY ? UNCERTAINTY

Economics Services OWN DISTRIBUTION DEFINITION < 132 kV => LICENCE FOR OWN SYSTEM UNDUE BURDEN – NO VALUE EXCLUDE OWN DISTRIBUTION

Economics Services PRIVATE DISTRIBUTION OTHER CONSUMER ON MINES NO OTHER SUPPLY EXCLUDE < 50GWh / ANNUM WHERE NO PROFIT

Economics Services CUSTOMER RIGHTS NOT IN BILL OBJECT: SAFEGUARD NEEDS AND INTERESTS OF CUSTOMERS REGULATIONS ON RIGHTS

Economics Services DISPUTES AMBIGUOUS PROVISIONS FUNCTION OF REGULATOR

Economics Services OTHER ISSUES RIGHTS OVER STREETS ISSUING OF LICENSES CUSTOMER CATEGORIES

Economics Services QUESTIONS ?

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