NERSA’s Role in the Electricity Sector: A Critical Examination

Introduction

The National Energy Regulator of South Africa (NERSA) plays a pivotal role in regulating and overseeing the electricity industry. However, recent events and historical practices raise questions about the effectiveness of NERSA’s mandate. In this blog post, we delve into NERSA’s licensing process, tariff approvals, and complaint handling.

Licensing Challenges

NERSA’s primary responsibility includes issuing licenses to power distribution and generation companies. Unfortunately, recent incidents suggest that this process isn’t without flaws. A newspaper article highlighted NERSA’s reluctance to grant access to decision records, leading to legal battles with organizations like OUTA. The regulator’s last-minute settlement offer further raises concerns about transparency and due diligence.

Tariff Approval Quandary

When it comes to approving electricity tariffs, NERSA faces another hurdle. Afriforum, a civil rights organization, filed an urgent legal application to prevent municipalities from increasing tariffs without proper cost studies. The High Court’s ruling in 2022 declared NERSA’s old method—relying on previous years’ tariffs—unlawful. The Electricity Regulation Act mandates cost-based adjustments, considering all relevant factors. Yet, NERSA shifted the responsibility to municipalities, potentially compromising fair tariff assessments.

Complaint Handling: A Mixed Bag

NERSA provides an avenue for anyone to submit complaints. However, the effectiveness of this process remains questionable. Consider a past complaint that led to a meeting in 2010. Despite acknowledging the need for action, the subsequent lack of feedback raises doubts about NERSA’s follow-through. Transparency and accountability are crucial for building public trust.

Urgent Matters: Unbalanced Currents and Voltages

On May 25, 2024, I raised a critical issue with NERSA—an alarming condition of unbalanced voltage and current. Urgent attention is necessary to ensure the safety and reliability of our electrical infrastructure. However, my interactions with NERSA representatives have left me skeptical. Their brief email responses may not suffice for thorough investigations.

Conclusion

As someone deeply entrenched in the electricity sector, I find it challenging to see NERSA’s significant impact. To truly enhance the sector’s performance, NERSA must address licensing inefficiencies, improve tariff approval processes, and prioritize robust complaint handling. Our collective energy future depends on it.

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Navigating the Challenges of State-Owned Enterprises through Innovative Asset Management

State-Owned Enterprises (SOEs) and other government institutions are often at the mercy of a multitude of challenges. These can range from inadequate policies and funding to ineffective leadership and corruption. The deterioration of public facilities and infrastructure only adds fuel to the fire, posing a risk to public safety and necessitating extensive restoration efforts.
To address these challenges, it’s essential to adopt an innovative approach that places citizens and customers at the forefront. Unlike their private-sector counterparts, public-sector organizations cannot easily divest customers. Instead, they must navigate complex regulations and information gaps. Timely maintenance is critical, as the costs of delayed maintenance can escalate rapidly.
In this context, Asset Management plays a pivotal role. The costs of procuring and maintaining assets rise due to aging assets, regulatory compliance, and security requirements. Strategies such as Collaborative Service Solutions, untapped partnerships with asset management specialists, and outsourcing of Asset and Maintenance Management are crucial.

Enterprise Asset Management (EAM) is a strategic approach that optimizes equipment usage. Unlike traditional Maintenance Management, which is reactive, EAM is proactive. It allows for the prediction and prevention of issues before they occur, conserving resources, finances, and avoiding unnecessary stress.
The transformation of an organization’s Maintenance Management processes into Enterprise Asset Management (EAM) processes involves several key steps. By integrating Application and Consulting Services, the aim should be to pursue a superior asset management solution. The Nonmonetary Asset Management Policy outlines roles and responsibilities, emphasizing that asset management is the responsibility of the Board of Directors, not just executives. A Nonmonetary Asset Management Strategy guides long-term planning, ensuring sustainable outcomes.
To establish a solid foundation, organizations must undertake steps such as Condition Assessment, Planning, and Maintenance. By adopting effective asset management practices, organizations can enhance service delivery and thrive in a constantly evolving environment.
Organizations, or their service providers, must set up protocols and processes for the appropriate collection, stewardship, updating, and utilization of technical and asset information. Organizations must implement an efficient Computerized Maintenance Management System that adequately facilitates maintenance planning, implementation, and reporting. Organizations must be capable of reporting on maintenance and the condition of their asset portfolio to promote transparency and accountability.
To achieve its objectives, the organization acknowledges that assets must be strategically planned, provided, maintained, and refurbished to continually meet the service delivery needs of the organization, all within the context of delivering the best value to the organization.
During the transition planning process, a crucial aspect is the analysis of existing workflow patterns and the formulation of necessary changes to accommodate Enterprise Asset Management (EAM). This process can present challenges for employees. As workflow transitions from reactive to proactive, planned, and scheduled maintenance replaces the corrective maintenance approach. The EAM provides insights into organized, proactive workflow arrangements through system modeling.
In a modern integrated maintenance organization, purchasing is a critical function. The implementation of an automated system to initiate purchase orders, aligned with established stocking levels, is essential. Adequate planning and accurate stock level establishment—controlled by supply lead time and usage—can prevent stockouts and overstocking. This approach effectively manages stock purchasing activities.
The key is to maintain on-hand items specifically for genuine emergencies. By relying on suppliers as the primary stock point, your in-house stock levels will be sufficient to address bona fide emergencies. One strategy is to collaborate with a supplier willing to guarantee a sufficient supply of your stock items on their shelf to meet operational needs. Achieving this involves selective purchasing—committing to purchase from a single supplier annually while periodically reevaluating bids from competitors. A written contract can reinforce the need for competitiveness.
As an organization embarks on the transition to Collaborative Service Solutions through a Strategic Partnership, the importance of thorough preparation and strategic partner selection cannot be overstated. For a seamless transition to Collaborative Service Solutions, it is imperative that both the primary organization and the Strategic Partner lay the groundwork for a robust partnership right from the beginning. By prioritizing transparency, fostering collaboration, and measuring performance, a resilient partnership can be built, paving the way for a successful Collaborative Services relationship.

My Journey with Eskom

I embarked on my professional journey with Eskom, South Africa’s leading electricity provider, in October 1974. My role expanded beyond the traditional office setting, plunging me into the practical facets of Power Distribution and Transmission. My duties covered a broad spectrum of tasks, each vital to the smooth functioning of Eskom’s power networks. From supervising the daily operations of the Distribution and Transmission Power Networks to ensuring their upkeep, my role was diverse and hands-on.
In March 1976, I embarked on a fresh phase in my Eskom career with a promotion that placed me at the helm of regional operations and maintenance management. This position acquainted me with the Paper-Based Maintenance Planning and Tracking system, an old-fashioned yet essential part of our maintenance operations. However, I quickly identified its shortcomings and inefficiencies, igniting a search for a more efficient alternative.
This search steered me towards the potential of a Computerized Maintenance Management System (CMMS), signifying a substantial shift from a reactive to a proactive workflow. The transition to CMMS, albeit challenging, was a pivotal move towards effective maintenance management.
As the years passed, Maintenance Management morphed into a broader discipline known as Enterprise Asset Management (EAM). I welcomed this shift and incorporated it into our operations, broadening asset management to include the entire lifecycle of an asset.
After a two-year stint as a District Manager, I assumed the role of Manager of the Protection, Telecommunications, Metering, and Control Systems (PTM&C) department. This position required a profound understanding of various systems and technologies and the competency to effectively integrate them.
In 1997, I found myself once again immersed in the world of Enterprise Asset Management when I was tasked with leading the transformation of Eskom’s Distribution Division’s maintenance into Enterprise Asset Management. My team and I were responsible for converting all the old valuable data into a new format compatible with the new EAM system. We also oversaw the nationwide rollout of the new solution.
In conclusion, this blog post offers a detailed narrative of my professional journey at Eskom, spotlighting the evolution of maintenance management practices, the challenges faced, and the strategies implemented to surmount them. It emphasizes the ongoing quest for enhancement and adaptation in the ever-evolving realm of asset management.

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My Journey in the Power Sector: From Fieldwork to Enterprise Asset Management

In the heart of South Africa’s power sector, I embarked on a journey that would shape my career and broaden my understanding of the complexities of power distribution and transmission. From October 1974 to May 1975, I served as an official at Eskom, the country’s primary electricity supplier. My role was far from being confined to an office; it was a hands-on experience in the field, bringing me face-to-face with the practical aspects of power distribution and transmission.
As an official at Eskom, my responsibilities were diverse and critical to the smooth operation of the power networks. I oversaw the day-to-day functioning of the Distribution and Transmission Power Networks, ensuring efficient power distribution from our facilities to homes, businesses, and other establishments across the region. Additionally, I was tasked with maintaining these power networks, conducting regular inspections, troubleshooting, and coordinating major maintenance projects to ensure the reliability and safety of Eskom’s power networks.
Fast forward to March 1976, my career took a significant turn when I was promoted to a new role overseeing the maintenance management for the entire region. This role introduced me to the Paper-Based Maintenance Planning and Tracking system, the backbone of our maintenance operations. However, I quickly realized its limitations. We were maintaining equipment at predetermined intervals, without considering its actual condition. This approach seemed inefficient, as unnecessary maintenance could potentially degrade the equipment’s performance.
The paper-based system posed several other challenges. It was prone to human error, and extracting meaningful insights from the records was a complex process. The administrative tasks associated with the system were time-consuming and labor-intensive. This experience laid the foundation for my future endeavors to improve maintenance operations in the power sector.
This realization sparked a need for a more efficient solution to maintenance planning. I began exploring the potential of a Computerized Maintenance Management System (CMMS). The transition to a CMMS marked a shift from a reactive to a proactive workflow, focusing on planned and scheduled maintenance. The CMMS offered valuable insights into organized, proactive workflow arrangements through system modeling. This period marked the first time that the Distribution and Transmission departments started working with a CMMS, a significant step forward in our journey towards efficient maintenance management.
Over the years, the field of Maintenance Management has evolved into a more comprehensive discipline known as Enterprise Asset Management (EAM). This shift marked a new era in the management of physical assets, extending beyond maintenance to include the entire lifecycle of an asset. This evolution towards EAM was a path that I began to tread in the subsequent years. I recognized the potential of this holistic approach to asset management and started working towards integrating it into our operations.
Following a two-year tenure as a District Manager, I had the opportunity to oversee a broad spectrum of business operations. This role encompassed a wide range of responsibilities, from managing Human and Financial Resources to overseeing Operations and Maintenance. It also included supervising Engineering and Construction projects.
Two years following my role as District Manager, I was appointed as the Manager of the Protection, Telecommunications, Metering, and Control Systems (PTM&C) department. This role demanded a deep understanding of each system under my purview and the ability to integrate them effectively. It required strategic planning, effective communication, and strong leadership skills to ensure the department’s objectives were met.
However, after this extensive stint, I found myself returning to a familiar territory. I was tasked with overseeing the transformation of our Maintenance Management system into an Enterprise Asset Management (EAM) system for the entire Distribution Division. This transition was not just about changing systems; it was about changing mindsets. It involved shifting from a traditional maintenance-focused approach to a more holistic asset management strategy.
In retrospect, this journey of transforming our Maintenance Management into an Enterprise Asset Management system has been a challenging yet rewarding experience. It has not only improved the efficiency and effectiveness of our asset management practices but also contributed to the overall growth and success of our organization. It’s a journey that continues to this day, as we constantly strive to improve and adapt to the ever-changing landscape of asset management.

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The State of Asset Management in South Africa: A Deep Dive

In 2005, South Africa took a significant step towards better asset management. A decree was issued, mandating each department to maintain two separate asset registers: a major asset register for assets valued at R5 000 or more, and a minor asset register for assets valued at less than R5 000.
Additionally, departments holding assets under operating leases, despite not owning these assets, were required to maintain a separate register. The same applied to departments holding assets under finance leases, which are considered “owned” by the department.
Despite multiple extensions to the initial deadline for updating these registers, questions remain. Do these departments or local government entities possess a legitimate asset register? Or are they merely relying on manual or spreadsheet-based asset registers?
Some may have invested in high-priced systems that function as financial systems with an additional asset register component. However, the effectiveness of such systems remains largely unknown.
The Department of Cooperative Governance and Traditional Affairs recently released an updated report on the status of municipalities within South Africa. Many municipalities nationwide are currently under administration due to challenges such as financial mismanagement, governance shortcomings, and infrastructural degradation.
Since October 2016, a total of 24 municipalities have been placed under administration for various reasons, predominantly financial mismanagement, and governance failures. This data highlights the ongoing challenges faced by municipalities across the country and the efforts being made to address them.
This situation underscores a prevalent issue: many government departments appear to lack the necessary capabilities for effective asset management. An audit by the Auditor General’s office is likely to reveal that the asset registers of many departments are deficient in substance and may be of limited utility.
An effective asset register should encompass the value of the assets, the date of acquisition, and any pertinent maintenance reports. Additional data may include warranties, owner’s manuals, availability, and the current condition of the asset. This comprehensive information can facilitate informed decision-making regarding necessary repair services and spare parts procurement. It can also assist in identifying your organization’s assets in the event of theft or destruction.
If government departments adhere to a comprehensive asset register and implement the Best Maintenance Practices, they will gain a clear understanding of how tangible, specific, attainable, and validated standards apply to maintenance management. They will also understand the significance of the anticipated outcomes derived from aiming for and achieving the performance benchmarks set by these best practices.
Delaying maintenance is not a sustainable financial strategy for resource management at national, provincial, or local government levels. Deferred maintenance results in a decrease in the useful lifespan of buildings and other infrastructures. As maintenance is postponed, the infrastructure begins to deteriorate, a process that accelerates over time, thereby increasing the financial resources required to restore the infrastructure to its original state.
The degradation of aging public facilities and infrastructure in most municipalities is becoming increasingly apparent. This neglect is now prominently displayed by the media through images of our deteriorating infrastructure. It is noticeable how government officials struggle when tasked with explaining why the infrastructure has degraded to a point where public safety is compromised and extensive work is needed for restoration.
Even in periods of financial stability, council members and municipal management have failed to allocate sufficient annual funding for routine maintenance, repair, replacement, and capital improvements. However, is the lack of funding the sole reason for the deplorable state of the infrastructure assets, or are there other contributing factors? This is a question that needs to be addressed as we move forward in our quest for better asset management.

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Power Quality Issues Caused by Distributed Generation

To mitigate the effects of Load-Shedding, many homeowners have decided to install PV Solar Energy systems. And, as I said before, they are more worried about how much it would cost than the quality of the products. If they can pay the lowest possible price for the entire installation, they are happy and do not care so much about what they get.

During the early stages of Load-Shedding, someone from our neighborhood asked me for advice regarding a PV system, but when I gave him a rough estimate of what it would cost, including the cost of a well-engineered design, I could see that the price was far more important than the quality of the system. Those advertising in the newspaper say that something the with same output would cost far less. Not long after he had his PV system installed, he told me that their washing machine had broken down and that they were compelled to replace it. I did respond since I knew what the cause of it was.

As in many other countries, PV systems with microgrids has become an unavoidable choice. This, in turn, bring along new challenges for utility companies. Naturally, if those employed by the utility companies are awake, knowledgeable, and experienced, they can proactively conduct power quality monitoring exercises. With the ever-increasing expansion of renewable energy systems, the most important power quality challenges that is brought about, is the harmonic distortion which affect the voltage and current quality at the point of common coupling (PCC), and negatively affects the loads.

We are all aware that there is a wide variety of inverter models are available on the market with new ones added constantly. Consequently, the harmonics delivered to the main power grid will thus vary according to inverter types and their control strategies. Utility companies therefore must have the knowledge, skills, and instrumentation to investigate the impact of these components that accompany the renewable (embedded / distributed) generation.

The technical consequences of distributed generation are dependent on the size of the system and its location in relation to the main power generation grid. These influences are reverse power flow, overvoltage along distribution feeders, voltage / current harmonics, phase unbalances, power losses, voltage control disturbances, low power factor, and Electromagnetic interference problem.

To overcome these effects, grid measurements, data analysis, and system modelling are needed for different parameters of grid and electricity generated by the renewable energy suppliers to find solutions and to make this resource more reliable.

Power quality parameters such as inrush current, power factor, total harmonic disturbance (THD), and frequency fluctuation should be recorded and studied regularly.

Inrush Current is a small predictable difference between distributed generating station’s voltage and utility grid voltage which can produce transient inrush currents. This can cause a temporary voltage sag at the neighboring buses, nuisance trips, thermal stress of the power components and several other problems.

With Under Voltage / Overvoltage, the grid connected distributed generating systems only inject active power into the utility grid, which may change the value of reactive power that flow in the system.

Output power fluctuation is one of the main factors that may cause severe operating problems for the utility network. This occurs because of variations in solar irradiance caused by the movement of clouds and may continue for minutes or hours. This may cause power swings, voltage flickers and fluctuations of over / under voltage.

Power factor often decreases to unacceptable levels due to high-powered distributed generation which sits on lightly loaded short distribution lines.

Current and voltage harmonic distortion, voltage and current distortions is generated by nonlinear loads such as power inverters that are used in solar systems where the currents flowing through the impedances of the grid affecting the voltage nodes. Harmonics produced under such circumstances can cause series and parallel resonances, overheating in transformers and capacitor banks, and false operation of protection devices that may reduce the reliability of power systems. A total harmonic distortion voltage (THDu) value of between 5% and 8% indicates significant harmonic distortion. Some equipment malfunctions may thus occur. The acceptable current and voltage harmonic level generated in the microgrid was specified by the IEEE standards 519 and 1547 and IEC-61000-3 standard, and this should not exceed a THDu of more than 8%.

Frequency fluctuation is an important factor in power quality. Any change between the produced and the consumed power may lead to frequency fluctuation. Small sized solar systems may cause frequency fluctuation to be insignificant compared with other renewable energy-based resources. However, this issue may become more severe by increasing the penetration levels of solar systems. Large enough frequency fluctuation may change the winding speed in motors and may damage generators.

Although there may be more solution available to moderate the impact caused by distributed generation, one suggestion is to switch off some or all the PV panels when flowing current is under the critical value, or rather divert the power to charging a battery bank. A second suggestion is the use of passive or active filters.

When new solar farms are proposed for connection to the municipal distribution network where this is perhaps far more critical, neither solution are compulsory, as far as I understand. I recently saw a proposal for a grid-tie solar farm without batteries nor active passive or active filters. But, as I said earlier on, utility companies need employees who are awake, knowledgeable, and experienced to know what to look for. Alternatively, utility companies can contract a company, us, to regularly conduct power quality monitoring exercises on their behalf.

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Is Solar Energy a Subset of Electrical Engineering

In recent times, I have attended several seminars and that makes me wonder whether the entire process of Solar Energy Systems installation has anything to do with Electrical Engineering, or is it perhaps closer to something like tree cutting where there are so many claiming to be “experts” in that field.

Almost daily, we receive a note of someone saying that they are tree-fellers. On the radio, I hear CCTV installers are “experts” in Solar Energy Systems or perhaps companies selling totally unrelated products advertising that they also sell PV Modules.

Listening to questions posed at these seminars, I begin to doubt that Solar Energy Systems have any relationship to Electrical Engineering, or the placement of the PV Modules have anything to do with Mechanical Engineering. When I read or hear about fires where Solar Energy Systems were installed, I truly begin to doubt that.

It should not be that difficult to connect the wires together or tighten a bolt, or is it? People tend to think that hot connections on wiring circuits are only caused by a screw that is not tightened. How about a situation where the screw is over-tightened. Yes, that also causes hot connections. How about the bolts fastening the PV Modules. Yes, if the bolts are not tightened to the correct torque, the PV Modules will become loose and cause severe damage, perhaps even electrically induced fires. If not tightened to the correct torque, the bolts will undo itself with vibration caused by wind or it will break if it was over-tightened.

Who is at fault? There are perhaps many parties, but I will start blaming those who do not do a due diligence when it comes to appointing the “installers”. Do they, the homeowner or company, insist on having a proper design being done. Read more – https://agulhascorp.com/designing-solar-energy-systems/ of what we do. Do the homeowner or company ask the right questions to ascertain whether the person or company that they are about to appoint have sufficient experience in Electrical and Mechanical Engineering.

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Engineering Solar Systems

Some noises have started to arise that unannounced inspections of rooftop solar panel installations need to be conducted to counteract heightened work health and safety risks as demand soars.

With the surge in demand and the appearance of fly-by-night installers, this may have some merits.

Businesses that sell, design, and install solar systems have a duty to provide and maintain a working environment that is safe.

Those thinking of “becoming energy independent” may be tempted to settle for affordable solutions and installers, without verifying credentials, which may prove a very expensive decision.

The installation and management of solar PV systems is a complex and highly skilled undertaking, installed on top of your most expensive asset. It is therefore important to ensure that the electrician can provide you with a CoC, which confirms that they complied with the rules and regulations in place to ensure safe installation.

Scientifically Based Designs and Calculations

What is even more important is that the design of a Solar Energy Systems are not as simple as calculating the roof space, dividing that space by the area of Photovoltaic (PV) Modules, assuming it would produce 100% – or even a certain percentage – for the entire day and then base the rating of the system on that.

Power Quality Monitor

Under normal circumstances, we install a Power Quality Monitor to record the power consumption over a specified period – read more on why this is important. Based on the results I obtained with this instrument, we then know what the peak demand for that period is and whether there are other important aspects that must be considered, which could ultimately affect the performance of the Solar Energy – or Uninterruptible Power Supply (UPS) – systems, and in particular the Inverters.

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Another Big Renewable Energy Development Company Failing

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