NERSA public hearing on proposed Guideline for Electricity Resellers/Traders Tariff in South Africa 22 July 2014

Transcription

1 NERSA public hearing on proposed Guideline for Electricity Resellers/Traders Tariff in South Africa 22 July 2014

2 Group and Presenter Introduction Presenter: Madeleen Wienand BLC.LLB, Post Graduate Diploma Corporate Law RAU, Post Graduate Diploma Advanced Law of Contract RAU, admitted attorney of the High Court of South Africa Managing Director Bodacious Group of Companies Bodacious Group Utility management solutions aimed at Revenue protection suitable for the residential, Commercial and industrial environment

3 A Golden Opportunity Electricity Resellers Golden Opportunity for Public and Private Sector to work together towards: Building capacity Creating fiscal sustainability; Improving Energy Efficiency Optimising Energy Management

4 The Challenge Two distinct categories of Resellers 1. Service providers appointed in terms of a written agreement certain level of expertise and knowledge can be assumed; and 2. De Facto Resellers ie Sectional Title Developments with bulk supply and landlord who own commercial properties such as offices and retail centres, expertise and in-depth knowledge often lacking

5 Definition flawed in that: AMEU definition 1. It does not address the costs incurred by the Resellers; and 2. Does not specifically address the issue of service and fixed charges; and 3. Refers only to municipalities and local authorities and does not address properties which are supplied directly by Eskom; The definition has also not been adopted by all municipalities in their By-Laws and in the absence of alternative legislation would not apply to resellers within the jurisdiction of those municipalities

6 Who should regulate Regulation is required for the benefit of Resellers and Consumers Cannot be done by Municipalities just as Eskom cannot regulate municipal tariffs. Regulation should fall under NERSA and should include all matters relating to resale of electricity ie infrastructure maintenance, guarantees and fedility insurance; Different municipal tariffs exclude the possibility of a standardised Reseller s tariff but provision can be made for the cost drivers that should be taken into consideration by resellers

7 FBE Should be available to resellers on application and on the same terms and conditions contained in municipal policy provided that it should benefit only the end-consumer who qualifies, alternatively Resellers Tariff should provide for costs of FBE and based on a published and transparent policy adopted by the Reseller.

8 Municipal Involvement Municipalities are currently under pressure: Auditor General in Consolidated general report on outcome of Local Government 2011/12 recorded that 94% of municipalities did not comply with legislation; 25% auditees received disclaimed or adverse opinions 21% received qualified audited financials Clean audits only received by 9 out of the 278 local and district municipalities

9 Municipal Involvement (continued) Empowerdex in their service delivery index scored 231 local municipalities and 46 district municipalities on service delivery as follows: District Municipalities: Namakwa highest at 82.9% (only district to score over 80%) with lowest scoring below 10%; Metroplitan Municipalities: Cape Town highest on 73.4% with ethekwini lowest at 62.16%

10 Why not the Municipalities Overburdened municipal resources Practical implication where tenants change and leased property sizes change; Legal implication for landlords across the country lease agreements could be unenforceable due to non-compliance with municipal By-Laws Practical implication of recovering common property cost in sectional title complex. Prepayment not a viable and secure solution It would by definition exclude Eskom customers

11 Centralised Regulation: Win-Win Cost to municipalities in respect of metering, billing, debt collection, customer queries and maintenance reduced; Consumers have access to a transparent and unified tariffing structure which brings stability and legal certainty Resellers have tools to ensure compliance and fiscal sustainability

12 Thank You