Small-Scale Embedded Generation (AMEU and its Work Group Input)

1. Small-Scale Embedded Generation (AMEU and its Work Group Input) Gerrit Teunissen 18 April 2013

2. Contents • Who and what is the AMEU? • Work group outcome on Impact on Revenue by Embedded Generation • Closure

3. WHATIS THE AMEU? The Association of Municipal Electricity Utilities (Southern Africa) • It is an association of municipal electricity distributors as well as national, parastatal, commercial, academic and other organisations that have a direct interest in the electricity supply industry in Southern Africa

4. MISSION STATEMENT • The mission of The Association of Municipal Electricity Utilities is to promote the pursuance of quality, service, management excellence and to facilitate communication between all its members and other stakeholders as well as to influence that environment.

5. OBJECTIVES of the ASSOCIATION • The objectives of the ASSOCIATION are: • To promote the interest of electricity utilities and to collaborate with other stakeholders in the pursuance thereof; • Tobring together municipal council or board representatives, electrical engineers and managers and all persons interested in the advancement and development of electricity utilities and to promote wider contact and the exchange of views; • To arrange and hold Conventions and Technical Conventions for the reading of papers and the discussion of subjects pertaining to electricity utilities and to make recommendations on matters requiring joint action; • To establish branches consisting of electricity utilities with joint interests; Totake such lawful action as may be expedient for the protection and promotion of the • rights and interests of member electricity utilities;

6. OBJECTIVES of the ASSOCIATION • To affiliate with, or seek membership of such organisationsas may be decided upon by theExecutiveCouncil; • To foster the establishment of organisations outside the boundaries of Southern Africa having objectives similar to those of the ASSOCIATION, and to assist them technically and financially in such fields as may be deemed desirable by the Executive Council; • To organise or participate in international meetings of organisationshaving objectives • similar to those of the ASSOCIATION, and in general to foster the exchange of information • in the field of electricity supply; • To actively promote training in the utilities environment; • To promote quality service and management excellence amongst members so that their customers receive value for money; • To provide an advisory service for its members, for the customers of its members and for the South African Local Government Association;

7. WORK GROUP on REVENUE IMPACT on EMBEDDED GENERATION • Safety of the utility’s staff working on the network • The impact on the revenue due to a loss of sales • Procurement of energy • Net-metering • The tariff that should be applicable • Legislative impact • The quality of embedded generated energy • A connection and use of system agreement with the embedded generator

8. IMPACT ON THE REVENUE • There will be a net loss of revenue • The actual loss will be determined by the amount of energy not sold • That tariff charges would need to be designed in such a way to mitigate this potential loss of revenue • That there is appropriate bi-directional meters that can measure the energy imported and exported • The upside is that all distributors will be seen to be supporting customer participation in the energy solution in South Africa • The revenue impact could be reduced by e.g. introducing a (fair) fixed network charge (net metering tariff) besides a separate energy charge

9. Legislative impact

10. Legislative impact

11. Legislative impact

12. Legislative impact

13. REQUEST FROM THE AMEU EXECUTIVE COMMITTEE • Indicate the losses and recommend a way forward. • Find ways to resolve the legal implications and make recommendations.

14. Closure Thank you for listening Any questions?