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An EDI Solution Presentation for Parliamentary Portfolio Committees

This presentation discusses an EDI (Electronic Data Interchange) solution for the combined Parliamentary Portfolio Committees of Energy & Cooperative Governance and Traditional Affairs. The presenter, Ken Robinson, provides insights and expertise on various issues related to electricity distribution.

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An EDI Solution Presentation for Parliamentary Portfolio Committees

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  1. An EDI SolutionPresentation to the combined Parliamentary Portfolio Committees of Energy & Cooperative Governance and Traditional AffairsJuly 31, 2012

  2. The Presenter • Ken Robinson joined Accenture (in the former partnership) in 1969 and he qualified as a Chartered Accountant (South Africa) in 1974. • He is a member of Accenture’s Resources Practice specialising in electricity. • He has managed major process, information system and strategic change projects for clients across many industries, with 18 years in electricity. • He is a former president of the Institute of Management Consultants of South Africa

  3. Separate IssuesBeing joined by new meter technology Wires Customers National tariffs Free basic electricity Prepayment vs. Debt collection Demand Side Management Universal access Reliable supply Losses

  4. Competition is not the Answer Wires Customers Natural monopoly Best not to promote sales just yet!

  5. Political boundaries do not suit Wires                             Buffalo City boundary is crossed by the Eskom network in 32 places    Municipal boundary Transmission MV lines 

  6. Eskom is a competent distributorwith an appropriate operating model Relationships Governance Budget & Capital Resources Processes Facilities KPIs Mandate Systems Organisation structure Data Competencies Business behaviour (culture) Technology

  7. Solution • Government & Eskom prepare for distributor mergers • Eskom states how many mergers it can achieve across its provincial operations – supported by shareholder • May require changes to laws & regulations • Requires a valuation framework • Regulator applies distribution standards to all distributors • Regulator withdraws licences from the “20 lowest” • May be for failure of Wires and/or Customer operations • These municipalities must choose a supplier • May choose Eskom, City Power, Centlec, other licensed distributor • Many will choose Eskom • Eskom & other distributors manage “going concern” mergers • Employees, assets, shared assets, asset data, liabilities, obligations, customer data, facilities, contracts (e.g. meter reading)

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