Municipalities want to increase surplus and fund capital projects. We have organised our skills areas (green) in some of the classic utility objective spaces (light blue) to demonstrate how our skills areas can support the increase in surplus and funding of capital projects. This section briefly discusses the issues and our solutions. More detailed capability statements for each are also available.
Problem – Energy procurement cost reduces municipal surplus
A significant percentage of the total cost to supply electricity is the cost of procured energy from e.g. Eskom. Municipalities can reduce their energy procurement cost by reducing own consumption and by managing own energy consumption.
Our solution – Our team will help you reduce energy procurement cost through targeted Energy Management plans
Our team of energy experts will assist the municipality in the development of energy management plans in line with the Department of Energy (DoE) funded municipal Energy Efficiency and Demand Side Management (mEEDSM) programme. We also have in house Measurement and Verification (M&V) experts that will ensure that savings are verified in line with required standards.
Problem –Tariff and Cost of Supply studies must be undertaken yearly
The development of cost reflective tariffs, based on sound information and defendable Cost of Supply Studies, is essential in ensuring that the municipality recover the maximum revenue from the supply of electrical energy.
The Electricity Pricing Policy (EPP) policy position 23 states that “Electricity distributors shall undertake COS studies at least every five years, but at least when significant licensee structure changes occur, such as in customer base, relationships between cost components and sales volumes. This must be done according to the approved National Energy Regulator of South Africa (NERSA or ‘the Energy Regulator’) standard to reflect changing costs and customer behaviour.”
Our solution – We deliver the leading Tariff and Cost of Supply service to munics
We have a proven track record of developing tariffs and cost of supply studies at various smaller municipalities as well as large metropolitan municipalities. We conduct these studies in line with NERSA requirements, the tariff grid code as well as NRS 058.
Problem – Network development and master planning needs to be conducted regularly
The development of a capable network and the addition of new loads to constraint networks is a reality of electricity supply. Energy consumption is declining but capable networks are still required to supply maximum feeder loading requirements. Network Development Planning skills are in short supply and Load Flow analysis packages are expensive.
Our Solution – We provide specialised network development planning services and technical losses studies
Our team have significant experience in transmission and sub-transmission network planning (400V to 132kV). Our services include Network Planning, Network Development Planning, Network Master Planning as well as special network load flow studies.
We have also developed a unique technique to assist the municipality to quantify the technical network losses. This is critical in the calculation of the non-technical losses (theft, illegal connection, admin issues etc).
Problem – Energy procurement costs will increase significantly in the future
It is well understood that the cost of electricity has been increasing and is set to increase even further in the foreseeable future. Electrical energy is a significant input parameter into the total cost of supply and therefore a key factor in the determination of municipal surplus generated from the sale of electricity.
Our solution – We develop renewable energy projects that reduce energy input costs
In the municipal environment, our team have the capability to develop renewable energy projects in the Waste Water Treatment space (Biogas) as well as Energy Recovery and Photovoltaic installations.