the strategy for improved electricity distribution maintenance 9 june 2008
TRANSCRIPT
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“the main economic impact of the power interruptions, both planned and unplanned, is the loss of output in the industrial sector. In a typical year of power shortages, arising from a deficit in generation capacity, these losses can be as high as US$ 0.66 and US$ 1.08 per kWh of energy loss, respectively. It is also observed that most industries have standby generation facilities to satisfy either, in full or partially, their own power requirements. The serious economic and environmental impacts of power interruptions, both planned and unplanned, underlines the importance of timely implementation of the long term least cost generation expansion plan and proper maintenance of transmission and distribution networks to ensure their high reliability”.
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PRESENTATION OUTLINE
• Energy White Paper Objectives
• Evolution of policy and regulatory focus
• Strategy for improved maintenance
• What is in the pipeline?
• CONCLUSION
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Energy White Paper Objectives (1998)
Ensure electrification targets are met
Provide low-cost electricity
Facilitate better price equality
Improve the financial health of the industry
Improve quality of service and supply
Foster proper co-ordination of operations and investment capital
Attract and retain competent employees
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Electricity ActSocioeconomic
Focus
Big jump in new connections
Maintenance Summit 2003
NER Act for pipelines, gas and electricity
Revenue cap regulationintroduced
Electricity Regulation Act plus
Amendment toCover
municipalities
Independent economic regulation
Quality of supplybecomes critical
1987 1995 2004 2006 -
EVOLUTION OF POLICY AND REGULATORY FOCUS
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STRATEGY FOR IMPROVED MAINTENANCE
RegulationPartnership
Investment Monitoring
Improved Quality of
Supply
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STRATEGY FOR IMPROVED MAINTENANCE
Regulation
Quality of Supply: section 47 of Electricity Regulation Act
Set performance targets relating to interruptions:• duration• frequency
Benchmarks in relation to peers
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STRATEGY FOR IMPROVED MAINTENANCE
Investment
Norms and standards
•typical investment level based on regulated returns
•how to balance costs, power quality, safety, environment
Asset management•Minimize overall life cycle and risk costs
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STRATEGY FOR IMPROVED MAINTENANCE
Monitoring and reporting
• Statutory requirements for certain monitoring equipment on critical infrastructure
• example is SCADA on all key substations
• Accessibility of information
• component indicators e.g. age, maintenance costs
• network indicators e.g. losses, outages per year
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STRATEGY FOR IMPROVED MAINTENANCE
Partnership
• Licensees play central role
• End user activism must be encouraged
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WHAT IS IN THE PIPELINE?
New regulation in terms of Electricity Regulation Act to cover:
•Key performance indicators like voltage deviations, harmonics, flicker•Framework for reports to the regulator including quality of supply interruptions and incidences, compulsory audits, customer relations regarding power quality specifically•Concomitant rules by the regulator
Municipal Fiscal Powers and Functions Act of 2007• defines tariff• regulates surcharge relating to electricity service
Even more focus on institutional reform – EDI reform
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CONCLUSION
• Maintenance Summit 2008 has additional challenges:– The challenge for this gathering is to look at the entire ESI
value chain in making recommendations;– Supply side is receiving attention with the build program– Quality of supply must receive due scrutiny, because
maintenance drives quality of supply
– Equally important is the need for the reform of the entire electricity sector to be conceived as a seamless process if we want to ensure its sustainability;
– A need to institute early warning systems and response structures across the value chain;
– A need to institute responsive monitoring, evaluation and resposive systems.