ELECTRICITY TARIFFS 2013/2014 Presented by Cobus Kritzinger Leon Swanepoel Deputy Director Finance Head Electro Technical Services
CONTENTS BACKROUND ELECTRICITY SALES BULK PURCHASES SALARY INCREASE TARIFF INCREASE COMPARISON ELECTRICITY SURPLUSES TARIFF INCREASE APPROVAL REQUESTED
BACKROUND Witzenberg Municipality includes the towns and rural areas of: Ceres, Tulbagh, Wolseley, Prince Alfred s Hamlet, Op-die-Berg, Municipality Municipality Municipality Eskom Eskom 3
ELECTRICITY SALES Number of consumers Actual Budget Estimate Consumer classification 2011/12 2012/13 2013/14 Free Basic Electricity 3 526 3 879 3 517 Domestic (pre-paid) 9 481 9 956 10 000 Domestic (conventional) 1 750 1 785 1 820 Agriculture 215 220 225 Manufacturing / Industrial 58 59 61 Commercial 373 380 383 Street lighting 89 95 100 Sold to other departments 1 1 1 Total Sale of Electricity 11 967 12 496 12 590 4
ELECTRICITY SALES Sales (MWh) Actual Budget Estimate Consumer classification 2011/12 2012/13 2013/14 Free Basic Electricity 2 124 2 166 2 231 Domestic (pre-paid) 33 240 34 237 35 250 Domestic (conventional) 15 756 16 071 16 500 Agriculture 7 252 7 400 7 500 Manufacturing / Industrial 98 521 100 491 103 506 Commercial 14 458 14 747 15 190 Street lighting 3 746 3 821 3 935 Sold to other departments 976 996 1 025 Total Sale of Electricity 173 950 177 763 182 907 5
ELECTRICITY SALES Average Energy Charge (c/kwh) Actual Budget Consumer classification 2011/12 2012/13 Free Basic Electricity 0 0 Domestic (pre-paid) 69 83 Domestic (conventional) 73 83 Agriculture 75 86 Manufacturing / Industrial 75 86 Commercial 75 86 Street lighting 75 86 Sold to other departments 75 86 Total Sale of Electricity 74.50 85.70 6
BULK PURCHASES Bulk Purchases from Eskom will increase by 7.92% on average as from 1 July 2013.
MEGAFLEX CONSUMPTION Consumption 2012/2013 2013/2014 Increase kva DEMAND (METER) 319 651 R 18.7800 R 20.2300 7.72% kva Access (Connection) 408 989 R 14.9900 R 16.1500 7.74% TARIFF c/kwh Peak - High Demand 6 462 471 R 2.2439 R 2.1780-2.94% Standard - High Demand 16 960 588 R 0.6424 R 0.6976 8.59% Off-Peak - High Demand 17 942 398 R 0.3804 R 0.4036 6.10% Peak - Low Demand 19 695 833 R 0.6841 R 0.7470 9.19% Standard - Low Demand 48 935 482 R 0.4498 R 0.5310 18.05% Off-Peak - Low Demand 52 847 078 R 0.3390 R 0.3567 5.22% Reactive energy 99 683 R 0.0872 R 0.0935 7.22% TOTAL 162 843 850 8
MEGAFLEX COST Consumption 2012/2013 2013/2014 Increase kva DEMAND (METER) 319 651 R 6 003 043 R 6 466 537 7.72% kva Access (Connection) 408 989 R 6 130 743 R 6 605 171 7.74% TARIFF c/kwh Peak - High Demand 6 462 471 R 14 501 139 R 14 075 262-2.94% Standard - High Demand 16 960 588 R 10 895 482 R 11 831 706 8.59% Off-Peak - High Demand 17 942 398 R 6 825 288 R 7 241 552 6.10% Peak - Low Demand 19 695 833 R 13 473 919 R 14 712 787 9.19% Standard - Low Demand 48 935 482 R 22 011 180 R 25 984 741 18.05% Off-Peak - Low Demand 52 847 078 R 17 915 159 R 18 850 553 5.22% Reactive energy 99 683 R 8 692 R 9 320 7.22% TOTAL 162 843 850 R 97 755 954 R 105 768 308 8.20% Average c/kwh 0.6003 0.6495 9
MINIFLEX CONSUMPTION Consumption 2012/2013 2013/2014 Increase kva Access (Connection) 96 000 R 14.9900 R 16.1600 7.81% TARIFF c/kwh Peak - High Demand 1 528 722 R 2.3057 R 2.2233-3.57% Standard - High Demand 3 418 606 R 0.7298 R 0.7429 1.80% Off-Peak - High Demand 3 243 593 R 0.3804 R 0.4489 18.01% Peak - Low Demand 3 922 569 R 0.7717 R 0.7923 2.67% Standard - Low Demand 9 464 580 R 0.5374 R 0.5763 7.24% Off-Peak - Low Demand 10 022 933 R 0.3390 R 0.4020 18.58% Reactive energy 660 943 R 0.0378 R 0.0409 8.20% TOTAL 31 601 003 10
MINIFLEX COST Consumption 2012/2013 2013/2014 Increase kva Access (Connection) 96 000 R 1 439 040 R 1 551 360 7.81% TARIFF c/kwh Peak - High Demand 1 528 722 R 3 524 759 R 3 398 808-3.57% Standard - High Demand 3 418 606 R 2 494 899 R 2 539 682 1.80% Off-Peak - High Demand 3 243 593 R 1 233 863 R 1 456 049 18.01% Peak - Low Demand 3 922 569 R 3 027 046 R 3 107 851 2.67% Standard - Low Demand 9 464 580 R 5 086 265 R 5 454 437 7.24% Off-Peak - Low Demand 10 022 933 R 3 397 774 R 4 029 219 18.58% Reactive energy 660 943 R 24 984 R 27 033 8.20% TOTAL 31 601 003 R 20 228 630 R 21 564 439 6.60% Average c/kwh 0.6401 0.6824 11
TOTAL BULK PURCHASES 2012/2013 2013/2014 GRAND TOTAL COST R 117 984 584 R 127 332 747 Combined Average c/kwh 0.6068 0.6549 Combined Percentage Increase 7.92% 12
ACCUMULATED ELECTRICITY PURCHASES: R MIL 140.0 120.0 100.0 Axis Title 80.0 60.0 40.0 20.0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Actual 2012/13 14.6 28.2 35.2 42.2 49.3 56.5 65.0 74.2 84.9 94.7 Budget 2012/13 12.5 25.0 32.4 39.5 46.6 53.7 63.0 73.1 84.4 94.3 103.4 118.7 Actual 2011/12 11.4 22.7 28.9 34.8 40.9 46.9 54.6 62.8 72.3 80.6 89.2 102.5 13
MONTHLY ELECRICITY PURCHASES: mwh 24 000 22 000 20 000 Axis Title 18 000 16 000 14 000 12 000 10 000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Actual 2012/13 16 809 15 205 12 860 12 762 13 006 13 707 15 944 17 495 21 361 18 915 Budget 2012/13 15 455 14 470 13 221 12 946 12 795 13 212 17 101 18 289 21 900 19 033 19 405 18 068 Actual 2011/12 15 005 14 049 12 836 12 569 12 422 12 827 16 603 17 757 21 262 18 478 18 839 17 542 14
AGGREGATE ELECTRICITY SALES: R MIL 180.0 160.0 140.0 120.0 Axis Title 100.0 80.0 60.0 40.0 20.0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Budget 2012/13 14.4 28.8 41.4 52.3 62.1 71.5 82.6 95.5 109.4 124.8 139.5 154.3 Actual 2012/13 12.7 29.2 42.5 51.6 61.0 71.5 81.7 93.9 109.4 122.9 Actual 2011/12 12.0 24.0 34.5 43.5 51.8 59.5 68.8 79.5 91.1 103.9 116.2 128.5 15
MONTHLY ELECRICITY SALES: mwh 22 000 20 000 18 000 Axis Title 16 000 14 000 12 000 10 000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Actual 2012/13 15 904 15 904 13 661 10 698 11 427 11 957 11 727 14 718 18 907 18 088 Budget 2012/13 15 127 14 049 12 814 12 210 10 790 11 716 13 398 14 900 17 528 20 337 19 123 17 177 Actual 2011/12 14 687 13 640 12 440 11 855 10 476 11 375 13 008 14 467 17 018 19 745 18 566 16 676 16
SALARY INCREASE Salary increase based on CPIX 5.4% plus 1.25% plus 2.5% notch increase for qualifying employees in terms of the national agreement reached between SALGA and the unions. Total increase 9.15%
NOTCH INCREASES NOTCHES +6.65% 1 64 551.80 68 747.67 2 66 092.08 70 388.07 3 67 683.28 72 082.70 4 69 312.67 73 818.00 5 70 967.52 75 580.41 6 72 673.29 77 397.05 7 74 417.24 79 254.36 8 76 199.39 81 152.35 9 78 032.45 83 104.56 10 79 903.70 85 097.44 11 81 825.87 87 144.55 12 83 786.23 89 232.33 18
TARIFF INCREASE COMPARISON NERSA WITZENBERG BULK PURCHASE 7.3% 7.92% SALARY INCREASE 6.75% 9.15% GUIDELINE INCREASE 7.0% 8.0% 19
ELECTRICITY SURPLUSES Budget 2012/13 Budget 2013/14 Budget 2014/15 Budget 2015/16 Electricity Revenue 153 238 173 323 186 621 201 445 Electricity Expenditure 134 706 152 110 165 164 179 180 Surplus 18 533 21 213 21 457 22 265 Surplus % 12.1% 12.2% 11.5% 11.1% If the 8% tariff increase is disallowed, the surplus will be reduced to 11.4% for the 2013/2014 financial year. 20
ELECTRICITY TARIFF INCREASES SUBMITTED FOR APPROVAL General Tariffs 8% Household tariffs > 350 kwh 6% Electricity tariffs charged by Eskom increase by 7.92%.
THANK YOU SITUATIONAL ANALYSIS 2006 United in our commitment to improve the quality of life of its residents so that all can share in its prosperity and live in harmony