1. The Association of Municipal Electricity Utilities (Southern Africa) AMEU Committee & Executive Council Meetings Update Peter Fowles 16 May 2014 AMEU GH Branch meeting Wellington Town Hall

2. The Association of Municipal Electricity Utilities (Southern Africa) Content Wednesday 12 February 2014 – Standing Committee - CANCELLED – Legal & Statutory Committee – Tariff Committee – Education & Training Committee Thursday 13 February 2014 – Technical Committee – Publicity and Papers Committee Wednesday 5 March 2014 – Executive Council (Namibia)

3. The Association of Municipal Electricity Utilities (Southern Africa) Standing Committee meeting Financial Statements – 2013 budget Budgeted surplus of R88 353 Projected result – loss of R13 562 (Convention income lower + LGSETA funding) March 2014: unaudited results indicate a surplus Possible fee increase along with `expanded services’ Convention 2014 – 5 to 8 October 2014 at Gallagher Convention Centre – Possible Centenary Convention also in Johannesburg resolved – at Sandton City ICC – History book committee been established

4. The Association of Municipal Electricity Utilities (Southern Africa) Standing Committee meeting [cont] Operational and Governance workshop – Held on 12 November 2013 and facilitated by Consultants – Report discussed at Executive meeting on 5 March – Internal report on options and proposals to implement the report action items requested

5. The Association of Municipal Electricity Utilities (Southern Africa) Boundary disputes – Eskom template requested – internal checklist for handovers/takeovers provided – SALGA/Eskom Framework Agreement prepared for signing at SALGA National Assembly – 29 November –includes info requirements, street lighting, SDA’a and surcharges – Drakenstein – problem in obtaining information from Eskom – SALGA report to AMEU meeting requesting support – Meeting with Eskom management on 14 February 2014 to agree on MOU – Executive Task Team Workshop – 25 March 2014 Executive Task Team Legal & Statutory Committee

6. The Association of Municipal Electricity Utilities (Southern Africa) Electricity supply bylaws – Drakenstein aiming to promulgate amended bylaws by May 2014 to address: Legality of embedded generators and regulate co-generation Definition of consumers – become `customers’ Safety requirements related to EG installations Tariff designs for purchase of energy from EG Align the bylaws with the PAJA, CPA, MFMA, MSA, ERA and MFPFA – The draft bylaws will be available for comment at the end of February 2014 – BY-LAWS MUST BE CLEAR - March 2014 e-Bulletin BY-LAWS MUST BE CLEAR Legal & Statutory Committee (cont)

7. The Association of Municipal Electricity Utilities (Southern Africa) Construction regulations – Revised regulations promulgated last week in January 2014 – February 2014 e-Bulletin – Will advise members when information available Legal & Statutory Committee (cont)

8. The Association of Municipal Electricity Utilities (Southern Africa) Electricity Cost of Supply Study And Green Electricity Tariff – GENESIS Analytics – Project for NMBM with support from SALGA-GIZ as part of SAGEN (South African - German Energy Programme) – Complicated as data was limited – lot of data manipulation – Working Cost of Supply (COS) Model handed to GIZ for distribution – spreadsheet tailored to NMBM needs – Guidelines for other municipalities will be available – March 2014 e-Bulletin Guidelines – What else can SALGA-GIZ do to assist munics with RE? Tariff Committee

9. The Association of Municipal Electricity Utilities (Southern Africa) NERSA – Electricity Resellers – November 2013 meeting discussion it was reported that NERSA was focusing on `resellers tariff’ – Agreed that a meeting with AMEU to be arranged before consultation paper issued. – 11 March 2014 – NERSA looking at principles and policies and will issue a consultation paper in April 2014 – 7 April 2014 – Complex issues which need to be handled with sensitivity due to revenue impact on Munics and Eskom - AMEU submissionAMEU submission Tariff Committee [cont]

10. The Association of Municipal Electricity Utilities (Southern Africa) Eskom – funding of supplies – Meeting with NT – 3 July 2013 as national problem – AMEU letter to NT – 10 July 2013 – Follow up meeting now 4 March 2014 – no response yet from National Treasury Eskom's alternative tariff for municipalities – NERSA consultation paper Date for comment – 28 November 2013 Public hearing – 4 December 2013 – Only two presentations – No decision yet issued Tariff Committee (cont)

11. The Association of Municipal Electricity Utilities (Southern Africa) AMEU Electrical Training Working Group – AMEU became custodian of the WG – demise of LGSETA – Working on several important issues Packaging of learning material – standard in all munics Managing of “on-job” training and assessments & teaching methods Input into development of trade test content Standardisation of practises for trade testing in training centres and trade test centres – Approach to LGSETA to reconsider funding – no response – Convenor requested to arrange meeting with municipal representatives being funded by their own municipalities – held 9 and 10 April 2014 Education & Training Committee

12. The Association of Municipal Electricity Utilities (Southern Africa) Review of the EDI’s Asset Status Report (ADAM) – Estimate of backlog in 2008 – R27bn – Not much done but study will indicate areas of improvement – project delivery by 31 March 2014 draft report presented on 26 March 2014 Backlog assessment and update Priority Matrix and short term implementation Update ADAM business case (funding mechanisms & options) – Samples: 21 municipalities and 2 Eskom regions 60+ municipalities to prioritise generic projects Invite inputs on problem areas – Website – www.adamreview.co.zawww.adamreview.co.za Technical Committee

13. The Association of Municipal Electricity Utilities (Southern Africa) Renewable Energy Workgroup - report – Guideline on the installation of embedded generation and the impact it may have on the revenue of municipalities; – Help municipalities make important decisions in respect of SSEG within their areas – Eskom Grid Access Unit (GAU) committed to working with municipalities in support of IPPs embedded in networks – GIZ Technical Workshop on integration (e.g. technical connection rules, safety etc) of SSEG - Invitation to nominate a date 25,26 or 27 June 2014 Markus Poeller facilitating plus technical expert from German municipal electricity utility to share their experience Technical Committee

14. The Association of Municipal Electricity Utilities (Southern Africa) Electrification/NEAC – Master Plan was due November 2013 but still not complete due to challenges municipal data electrical network Costs Manpower and GIS tools – 2014/15 allocation letters distributed - changes in the allocations for 2014/15 for INEP (msg 28 February 2014) – Pre-engineering allowance of R1.5m per munic – Department of Human Settlements (DoHS) policy on internal wiring costs of homes built for low income settlements. Technical Committee (cont)

15. The Association of Municipal Electricity Utilities (Southern Africa) Website – Undergoing modernisation to accommodate increasing use of mobile devices AMEU News – June 2014 edition being prepared E-Bulletin – Apologies for late publication of April edition Publicity and Papers Committee

16. The Association of Municipal Electricity Utilities (Southern Africa) Convention 2014 – Theme is “MOVING TOWARDS SOUTHERN AFRICA’S ELECTRICITY NETWORKS OF THE FUTURE” – 39 submissions received by deadline of 2 April 2014 – Rating process begun Honorary membership – No nominations considered due to cancellation of Standing Committee meeting – Executive resolved on 5 March to receive nominations from Branches following March/April meetings SALGA Support of AMEU SALGA Publicity and Papers Committee

17. The Association of Municipal Electricity Utilities (Southern Africa) AMEU GH Branch meeting Wellington Town hall – 16 May 2014