1. COMMENT ON THE INDEPENDENT SYSTEM AND MARKET OPERATOR BILL (B9 -2012)
DICK KRUGER
DEPUTY HEAD: TECHNO ECONOMICS
15 MAY 2012
5/24/12

2. INTRODUCTION
THE CHAMBER OF MINES OF SOUTH AFRICA IS A VOLUNTARY MEMBERSHIP MINING INDUSTRY EMPLOYERS' ORGANISATION.
THE CHAMBER REPRESENTS ABOUT 90% OF THE SOUTH AFRICAN MINING INDUSTRY IN TERMS OF LABOUR, PRODUCTION AND TURNOVER
5/24/12

3. ELECTRICITY IN THE MINING INDUSTRY
ELECTRICITY SUPPLY IN THE MINING INDUSTRY IS CRITICAL FOR VITAL SAFETY AND HEALTH APPLICATIONS:
VENTILATION
AIR COOLING
PUMPING
PERSONNEL HOISTING
5/24/12

4. ELECTRICITY CONSUMPTION IN THE MINING INDUSTRY (2011)
MINING CUSTOMERS:
USAGE: GWH
15,5 % OF SOUTH AFRICAN SALES
R MILLION
PRODUCED 125 MILLION TON COAL FOR ESKOM
5/24/12

5. SOUTH AFRICAN ELECTRICITY SUPPLY INDUSTRY
CHANGING:
FROM
ONE MAJOR GENERATOR INTEGRATED WITH SYSTEM CONTROL TO
MULTIPLE INDEPENDENT GENERATORS
5/24/12

6. FUTURE SYSTEM ?
ACCESS TO TRANSMISSION GRID OPEN TO MULTIPLE GENERATORS
DISTRIBUTORS SUPPLIED BY MULTIPLE GENERATORS
SOME CUSTOMERS SUPPLIED DIRECTLY BY GENERATOR OF CHOICE THROUGH GRID
5/24/12

7. CHAMBER POSITION
CHAMBER IN PRINCIPLE SUPPORTS ENVISAGED INDEPENDENT SYSTEM AND MARKET OPERATOR
FIRST STEP TOWARDS A MARKET DRIVEN ELECTRICITY SUPPLY INDUSTRY WITH COMPETING GENERATION AND DISTRIBUTION ENTITIES
REMOVE POTENTIAL FOR CONFLICT OF INTEREST
5/24/12

8. INDEPENDENCE OF SYSTEM OPERATOR
OWNERSHIP OF NATIONAL GRID ?
GRID OWNER MAJOR GENERATOR
ISMO TRULY INDEPENDENT IF GRID OWNERSHIP IS INDEPENDENT
5/24/12

9. 99
BUYING OF ELECTRICITY
CLAUSE 4 (3) (d): ISMO PROCURE ELECTRICITY FROM GENERATION LICENSEES WITHIN THE REPUBLIC OF SOUTH AFRICA AND OUTSIDE ITS BORDERS, EXCEPT GENERATORS EXEMPTED BY LICENCE FROM SELLING TO ISMO.
CRITERIA FOR EXEMPTION ?
5/24/12

10. SELLING OF ELECTRICITY
CLAUSE 4 (3) (j): ISMO MUST ENTER INTO POWER SALES AGREEMENTS WITH CUSTOMERS IDENTIFIED BY MINISTER
IMPACT ON DIRECT ESKOM CUSTOMERS ?
BILATERAL AGREEMENTS ?
CRITERIA ?
5/24/12

11. THANK YOU
5/24/12