1. 1 Draft Agenda: Eskom DSM Residential Time-of- use tariff and smart metering workshop Draft Agenda: Eskom DSM Residential Time-of- use tariff and smart metering workshop 23 January 2008 at 10h00 Premier Conference Centre, O R Tambo Airport

2. 2 Agenda 09h45 Tea and Coffee 10h00 Welcome Vashna Singh 10h05Introduction and Background Vashna Singh 10h20Tariff Principles and Design Shirley Salvoldi 10h55Discussion SessionAll 11h15Smart meter draft specificationHenri Groenewald 12h00Discussion SessionAll 12h30Lunch 13h15Billing & IntegrationSham Dhrampal 14h00Discussion SessionAll 14h15Communications mediumZayied Gydien 14h40Discussion SessionAll 14h55Nelson Mandela Metro ExperienceGeorge Ferreira 15h10Discussion SessionAll 15h20Closure

3. 3 Presentation Objectives The purpose of the industry workshop is: 1. to create a forum where the related time-of-use tariff and smart meter load management matters can be discussed. 2. to share lessons learnt from the similar industry pilot projects. 3. to provide assistance to the industry with future developments, e.g. tariff design, Automatic Meter Reading (AMR) meter specifications, interfacing systems etc. 4. Map a path for the industry to move forward together in the most effective way for the benefit of the industry stakeholders.

4. 4 Project potential in SA market The total residential market potential in SA is 2161MW* of uncontrolled hot water peak demand load, currently not controlled by ripple control. –The acceleration of the Eskom implementation will assist the national implementation in the metro/municipal market. Further total market potential to shift other non- essential appliance peak demand load of 1,104MW –Laundry (2% contribution to peak) – 246MW* –Pool pumps (1% contribution to peak) – 122MW* –Other appliances (6% contribution to peak) – 736MW* *Based on residential demand contribution of 12,269MW in 2006

5. 5 Benefits The implementation of this project will result in the following benefits:benefits 1.DSM load shift: –peak (control of geyser, can manage load of other appliances), –execute system emergency through emergency load shed functionality, and –savings to economy (avoid industrial load shedding). 2.DSM energy efficiency (tariff will incentivise energy efficient behaviour). 3.Installation of integrated load management smart meter devices: –yields additional benefits to business (bi-directional, real-time communications to meter, tamper-detect, remote connect/disconnect), –is a leading international industry trend and best practise. 4.Avoided Generation costs 5.More cost reflective recovery of costs. 6.More accurate reflection of the purchasing structures, reducing trading risk in retail tariff. 7.Improved business efficiency.

6. 6 Homeflex PoC Solution Overview

7. 7 3 Vendor Proof-of-Concept testing Tested the following real-time with 30 customers in Sandton: The AMR meter (half hourly interval data retrieval, register reads & on- demand reads) The load management device (load shedding scheduled and emergency load shedding) Customer override facility, The communication between the field devices and the master station, The integration between the vendor and Integration Layer, and the relevant Eskom systems. House Master Station Load Switching Times Integration Layer Load Schedules Billing System Override Notification Load Shed Notifications Power Notification Tamper Notification

8. 8 Progress to date Evaluated the 3 vendor’s functional performance in Proof-of- Concept testing. Updated residential time-of-use tariff (Homeflex) was designed. Currently in the investment approval phase for implementation to Eskom’s 120 000 suburban customers. Accelerated Life Testing on meters will conducted in the first quarter of 2007.

9. 9 AMEU interaction Nelson Mandela Metro (G Ferreira) City of Cape Town (R van der Riet) City Power (M Ramagaga) Centlec (K van der Bergh) Industry workgroup meeting postponed from November 2007 to January 2008. AMEU e-Bulletin notice to follow for January 2008 meeting.

10. 10 Hot Water Systems Management Road Map Type of strategy Short termMedium termLong term Energy Efficiency or Conservation Load Shifting Geyser & Pipe Insulation., aerated showerheads Solar Water Heating Above the Line mass communications Direct Programme communications Ripple Control Advanced Load Managment technology (integrated smart meter )

11. 11 Load Management: Ripple Control & Smart Meter Ripple Control (R3.28m/MW) Load control of geyser No benefit to customer Customer bypassing undetectable Smart meter with TOU Tariff (R3.5m/MW) Load control more appliances + geyser Measures TOU tariffs Customer receives benefits & savings Automatic customer bypassing notification Remote accurate monthly meter readings Remote Connect & Disconnect Tamper detection Outage notify QoS monitoring BACK