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Electricity Service Delivery - “The Challenge” Key Principles and Practical Considerations for NRS 048 Electricity Service Delivery - “The Challenge” Key Principles and Practical Considerations for NRS 048 -6 A Distributor Licensee Perspective AMEU Technical Convention 16 -18 October 2006 Gallagher Estate, Midrand Presented by Baden Chatterton Industry Association Resource Centre (IARC), Eskom Holdings 1

Personal Introduction 2 § Employed at Industry Association Resource Centre (IARC), previously Distribution Technology, Personal Introduction 2 § Employed at Industry Association Resource Centre (IARC), previously Distribution Technology, R&S Division in Eskom Holdings § Distribution Wires Incentive Based Regulation (IBR) Implementation Committee Chairman responsible for the national strategy and co-ordination of : • Technical and financial aspects of the Distribution network performance component of the Eskom Multi Year Price Determination (MYPD) for 2006 -2009 § Distribution Network Performance and Quality of Supply Study Committee (SC) Chairman responsible for the data, systems, measuring, reporting and management of : • Network Interruption Performance • Quality of Supply (QOS) • Equipment Reliability

Personal Introduction Cont. § Member of the South African industry NRS 048 working group Personal Introduction Cont. § Member of the South African industry NRS 048 working group (WG) responsible for the “NRS 048 - Quality of Supply” basket of standards § Author of NRS 048 -6 standard on behalf of the NRS 048 WG under the auspices of the Electricity Liaison Suppliers Committee (ELSC) 3

Presentation Overview § § 1. Setting the scene……. 2. Introduction and overview of NRS Presentation Overview § § 1. Setting the scene……. 2. Introduction and overview of NRS 048 -6 3. Key aspects of NRS 048 -6 unpacked 4. Way forward NRS 048 -6 : Medium Voltage Network Interruption Performance Measuring and Reporting Standard For NRS 048 reporting purposes, MV is defined as the set of nominal voltage levels 1 k. V ≤ Un < 44 k. V 4

5 1. Setting the Scene…… 5 1. Setting the Scene……

Power Quality Unpacked Network Interruption Performance 6 Quality of Supply Power Quality Reliability and Power Quality Unpacked Network Interruption Performance 6 Quality of Supply Power Quality Reliability and Availability of Supply : NRS 048 -6 and 8 - Frequency of interruptions - Duration of interruptions Sustained interruptions Momentary interruptions Quality of the Voltage Waveform : NRS 048 -2 - Voltage dips Voltage regulation Harmonics Flicker Unbalance

Electricity System in South Africa GENERATION Coal Gas Turbine Hydro Electric Pump Storage Nuclear Electricity System in South Africa GENERATION Coal Gas Turbine Hydro Electric Pump Storage Nuclear TRANSMISSION 765 to 220 k. V Lines Transmission Substations DISTRIBUTION Distribution Lines 132 k. V 88 k. V 66 k. V 44 k. V Distribution Substations MV Lines (11, 22 and 33 k. V) MV/LV transformer LV Line (380/220 V) Customer 7

Customer Expectations and Experiences Versus Actual Power Quality Provided Expectations, Perceptions and Experiences Customers Customer Expectations and Experiences Versus Actual Power Quality Provided Expectations, Perceptions and Experiences Customers Residential Traction Agriculture Key Customers Commercial Redistributors Prepaid Mining & Industrial Power Quality provided by licensees 8

Why Measure……and Report ? NRS 048 -6 provides a standard and consistent framework of Why Measure……and Report ? NRS 048 -6 provides a standard and consistent framework of MV network interruption performance measurement and reporting by distributor licensees in South Africa “To measure is to know. ” “If you cannot measure it, you cannot improve it……. . ” Lord Kelvin, IEC's first President (1906) 9

Network Interruption Performance is much more than just SAIFI and SAIDI……. . Planning and Network Interruption Performance is much more than just SAIFI and SAIDI……. . Planning and Design Asset Management System Automation Network interconnectivity Universal Access Program Protection and telecontrol Performance Measurement How and what is measured ? Inclusions/exclusions of events Skills, behaviour and resources Staff skills and training Manpower optimisation Work/Build Management Quality and accuracy of build 10 External Environment Lightning Winds Theft Storms Vegetation Planned Work Network Performance Systems and Data Outage management system Data accuracy and completeness SCADA penetration SAIDI : System Average Interruption Duration Index SAIFI : System Average Interruption Frequency Index Maintenance Refurbishment Live work Staff training Network Operation Switching/operating Fault finding Supply restoration

11 2. Introduction and Overview of NRS 048 -6 11 2. Introduction and Overview of NRS 048 -6

Overview of the NRS 048 Standards NRS 048 : Quality of supply standard for Overview of the NRS 048 Standards NRS 048 : Quality of supply standard for Engineering or Wires NRS 047 : Quality of service standard for Customer Services or Retail 12

Acknowledgements for NRS 048 -6 § Tony Dold, NRS 048 WG § Chairman, e. Acknowledgements for NRS 048 -6 § Tony Dold, NRS 048 WG § Chairman, e. Thekewni Electricity Francisa Mabuza, Project Leader, IARC, Eskom Holdings Nelson Mandela Metro § § Eskom Holdings (Dx, Tx, § § § KSACS, Corporate and R&S) SABS Ekurhuleni Municipality City Power § § § § § 13 EIUG Tshwane Electricity Glass Industry Chamber of Mines City of Cape Town Mondi Paper Mangaung Municipality DPE NERSA IST OTOKOV

Key Objectives of NRS 048 -6 14 § Provide standard, accurate and reliable network Key Objectives of NRS 048 -6 14 § Provide standard, accurate and reliable network interruption performance measures for South Africa § Minimum future system and data requirements for interruption capturing and recording for licensees § Framework for local and international network performance (reliability) benchmarking and best practices § Assist NERSA and licensees with the implementation of Incentive Based Regulation (IBR) § Common industry high level interruption cause code hierarchy : identifying problem areas § Provide annual regulatory reporting guidelines

Foundation for NRS 048 -6 § International standards, work and developments • IEEE P Foundation for NRS 048 -6 § International standards, work and developments • IEEE P 1366 standard (USA) • IEEE Task force on reporting practices • CIGRE : Technical report TB 261 • UK regulator (ofgem) : “QOS” related standards § Local work, lessons learnt and experiences • Eskom Distribution standards • Distributor licensees • AMEU role-players • Customer and industry role-players input 15

16 3. Key Aspects of NRS 048 -6 Unpacked Refer to the final draft 16 3. Key Aspects of NRS 048 -6 Unpacked Refer to the final draft standard (version 4. 2) or to the published paper for the technical details and additional information

Scope of NRS 048 -6 7. Performance reporting requirements 6. Data and change management Scope of NRS 048 -6 7. Performance reporting requirements 6. Data and change management 5. Interruption cause code categories 17 8. Implementation 1. Interruption performance requirements NRS 048 -6 standard 2. Interruption categories for reporting 4. Event data auditing and validation 3. Definition for performance indices It is recognised that NRS 048 -6 may not be practically and financially possible currently for some licensees and is a long term objective for the effective management of MV network interruption performance in South Africa

Key Concepts Introduced § Interruption categories for reporting • Unplanned (“U”) • Planned (“P”) Key Concepts Introduced § Interruption categories for reporting • Unplanned (“U”) • Planned (“P”) • Customer related (“C”) • Intake supply (“S’) § Customer network link (CNL) and end state levels • Data connectivity model (HV, MV and LV) • % data accuracy and completeness levels § Re-interruptions and criteria for counting • Definition and strict application criteria • Comprehensive explanatory notes 18

Key Concepts Introduced Cont. 19 § Pre-arranged events for planned interruptions • Treatment and Key Concepts Introduced Cont. 19 § Pre-arranged events for planned interruptions • Treatment and counting of planned and co-ordinated interruptions for reporting § Generic customer categories • Broad and generic customer category descriptions • Long term (forward looking) regulatory requirements § Classification and reporting of major events • Criteria A : national comparison of licensees • Criteria B : year-on-year licensee performance comparison and tracking • Criteria C : internal licensee reporting

Key Concepts Introduced Cont. . § Accuracy reporting estimation methodology • Method to audit Key Concepts Introduced Cont. . § Accuracy reporting estimation methodology • Method to audit and estimate the accuracy of the § § reported performance measures by licensees • “Gatekeeper” to ensure the accuracy and integrity Data and change management (software) • Requirements for data archiving • Requirements for tracking any system changes Different types of licensee reporting • Annual power quality reporting • Future incentive based (IBR) reporting • Reporting for benchmarking purposes 20

21 4. The Way Forward 21 4. The Way Forward

Implementation § Solid future framework for EDI § 4 to 7 years business plan, Implementation § Solid future framework for EDI § 4 to 7 years business plan, in order § § to be completely implemented by the licensees Some licensees may not meet the current requirements and may require selective exemptions Resource and financial constraints that need to be managed § Open invitation for any assistance (011) 871 2355 chatte. [email protected] co. za 22

Electricity Service Delivery - “The Challenge” The challenge is now for the distributor licensees Electricity Service Delivery - “The Challenge” The challenge is now for the distributor licensees to implement the NRS 048 -6 standard and start improving their electricity service delivery – reliability and availability of electricity supply. 23

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