The Challenges in Managing South Africa’s Electricity Sector

The National Energy Regulator of South Africa (NERSA) has faced significant criticism for its handling of the country’s electricity sector. Established to regulate the electricity, piped-gas, and petroleum pipelines industries, NERSA’s mandate includes ensuring a reliable and efficient energy supply. However, its performance has been underwhelming, leading to widespread dissatisfaction amid South Africa’s ongoing electricity crisis.

Inconsistent Tariff Decisions

One of the primary issues with NERSA’s management is its inconsistent tariff decisions. The regulator has been criticized for approving substantial tariff increases for Eskom, the state-owned electricity supplier, despite the utility’s ongoing operational inefficiencies and financial troubles. These increases have placed a heavy burden on consumers and businesses, exacerbating economic challenges in a country already grappling with high unemployment and slow growth.

Lack of Transparency

Transparency is a cornerstone of effective regulation, yet NERSA has often been accused of lacking openness in its decision-making processes. Stakeholders, including industry experts and consumer advocacy groups, have raised concerns about the opaque nature of NERSA’s operations. This lack of transparency undermines public trust and makes it difficult to hold the regulator accountable for its actions.

Failure to Address Load Shedding

Load shedding, or rolling blackouts, has become a persistent issue in South Africa, severely impacting daily life and economic productivity. NERSA’s inability to effectively address this problem has been a major point of contention. Despite numerous promises and plans, the regulator has failed to implement sustainable solutions to stabilize the electricity supply. This ongoing crisis highlights NERSA’s shortcomings in strategic planning and crisis management.

Regulatory Capture

There are also allegations of regulatory capture, where NERSA is perceived to be more aligned with the interests of Eskom than with those of the public. This perception is fueled by decisions that seem to favor the utility’s financial recovery over the broader need for a reliable and affordable electricity supply. Such actions have led to questions about the regulator’s independence and its ability to act in the public interest.

Public Trust and Transparency

Public trust in NERSA has also been eroded by perceptions of corruption and mismanagement. Allegations of favoritism and lack of transparency in decision-making processes have led to growing skepticism among stakeholders regarding the regulator’s integrity and capability. This distrust complicates collaboration between NERSA, Eskom, and independent power producers, which is essential for a cohesive and forward-looking energy strategy.

Personal Concerns About Transparency and Trust

Since I first lodged a complaint with NERSA regarding “Poor Service from City Power Johannesburg” on April 15, 2024, there has been little meaningful progress on this issue. Despite my persistent efforts to highlight these concerns, I only received a response on September 11, 2024, stating that an escalation letter had been drafted and was awaiting final signatures.

After following up on September 18, I was informed that the letter had indeed been sent. However, when I requested a copy of this correspondence, I was told that the legal department needed to provide guidance on whether such documents could be shared with complainants. Since that time, I have not received any further updates, which raises significant concerns about the transparency of this process. This situation feels unproductive and has left me with the impression that we are going in circles without achieving any meaningful progress.

Given the slow response and apparent lack of serious engagement, I can’t help but feel that my concerns are being disregarded. The unresolved issues regarding the imbalanced networks require thorough investigation and prompt action, as they directly impact the reliability of electricity supply in our community. It is essential that these matters are addressed swiftly and transparently to restore trust in the process.

Impact on Renewable Energy

South Africa has significant potential for renewable energy, yet NERSA’s regulatory framework has been criticized for not doing enough to promote and integrate renewable sources into the national grid. The slow pace of renewable energy adoption is seen as a missed opportunity to diversify the energy mix and reduce reliance on coal, which is both environmentally damaging and increasingly costly.

Conclusion

NERSA’s management of South Africa’s electricity sector has been marked by inconsistency, lack of transparency, and failure to address critical issues like load shedding. These shortcomings have not only eroded public trust but also hindered the country’s economic and social development. For South Africa to achieve a stable and sustainable energy future, significant reforms in NERSA’s regulatory approach are essential.

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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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Who Gains Advantage from Unbalanced Network Conditions?

What could possibly prompt Eskom or any power distribution companies to look into issues of unbalanced power networks? Could it be the threat of legal proceedings?

I understood that a representative from Eskom was notified about potential network imbalances at the Modderbee municipal substation, but it might have been disregarded as unlikely. However, since I was not present, I cannot vouch for the accuracy of the information I received indirectly.

The secondary reason for publishing this article is my effort to reach out to someone who professes to have extensive knowledge about Eskom’s power quality. I did not just send one email, but two. Despite being successfully delivered, the first email went unanswered, and the second was “deleted without being read,” as per the notification I received in my email account.

Consider the recent increase in reported issues with cables and transformers, and then draw your own conclusions: Are Eskom and other power suppliers aware of the network imbalances? Moreover, do they implement sufficient checks to identify these issues in the networks? From what I’ve observed, it doesn’t seem so. They seem to ignore any alerts related to network imbalances.

A question that often arises is: who benefits from the extra costs that customers incur due to unbalanced network voltage conditions? Let us explore this. Customers need a specific amount of electrical power, also known as real power, to perform certain tasks. However, the unbalanced network conditions result in a significant increase in inefficient powers, leading to a rise in apparent power. As customers’ bills are mainly calculated based on this apparent power, they end up paying more for these inefficient powers. On the generation side, power must be produced to also compensate for the losses. Each unit generated carries a profit margin. Hence, the more units produced, the higher the profits. It is crucial to remember that all power plants, whether they are coal-fired, nuclear, or renewable, do not operate as non-profit organizations.

It’s also important to note that network imbalances are not easily noticeable in power supplies. For example, in Linden, people might believe the power supply is working properly by examining the phase-to-neutral voltages. Likewise, in Modderbee, officials from Eskom and the electricity department might view the network as free of issues when they see that the phase-to-phase voltages are stable.

If you think that living in a different part of the world protects you from unbalanced network conditions, it may be beneficial to reevaluate that belief. As highlighted in this document, you might be completely oblivious to such events.

Read this document.

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Power Networks in Flux – Balancing the Unbalanced

Unbalanced network conditions in power supplies can be deceptive because phase-to-neutral voltage measurements might not reveal the full picture. Here are why phase-to-phase voltages might not be close to each other even if phase-to-neutral voltages are:

  1. Unmatched Impedance: If the impedance in the transformer banks is unmatched, it can cause unbalanced conditions that are not apparent in phase-to-neutral measurements but will affect phase-to-phase voltages.
  2. Large Single-Phase Loads: When large single-phase loads are unevenly distributed across a three-phase network, it can create an imbalance that affects phase-to-phase voltages.
  3. Generation Faults: Faults in power generation can lead to unbalanced conditions that might not be detected by measuring phase-to-neutral voltages alone.

In the case of Linden and Modderbee, officials may overlook unbalanced conditions by only considering phase-to-neutral or phase-to-phase voltages. It is crucial to measure both to get an accurate assessment of the power supply’s balance. Unbalanced conditions can lead to equipment damage, increased network losses, and inefficiencies. Therefore, comprehensive measurements and analysis are necessary to ensure the reliability and safety of the power supply.

To determine if you are paying too much for electricity, you can indeed perform a simple check using a clip-on ammeter and a voltmeter to calculate the apparent power in volt-amperes (VA). Here is how you can do it:

  1. Measure the Current (I): Use the clip-on ammeter to measure the current flowing through the circuit.
  2. Measure the Voltage (V): Use the voltmeter to measure the voltage across the circuit.
  3. Calculate Apparent Power (S): Multiply the current by the voltage to get the apparent power in VA.
  4. Determine the Cost: Multiply the apparent power by the tariff rate provided by your electricity supplier.

This method gives you an instantaneous reading of your power usage, which you can compare with your electricity bill to see if there is a significant discrepancy. If you suspect your meter is faulty, having it tested is a good option despite the initial cost which would likely be refunded if the meter is indeed faulty. Regular monitoring of your power usage can help you identify any inconsistencies or potential overcharges on your electricity bill.

To accurately determine if you are being overcharged for electricity, it is essential to consider the following assumptions:

  1. Constant Current and Voltage: The assumption that current and voltage remain constant is a simplification for calculation purposes. These can fluctuate due to various factors such as appliance usage and utility supply stability.
    • Perfect Power Supply: Assuming a perfect power supply without any fluctuations is an ideal scenario often used in theoretical calculations but not typically found in residential settings.
  2. Synchronized Timing: Starting the measurement process at the same time as the meter reading ensures that the comparison is based on the same usage period, which is crucial for accuracy.
  3. Meter Accuracy: It’s assumed that the meter is accurately measuring the power consumption without any faults or errors.
  4. No Unauthorized Usage: This assumption implies that there is no electricity theft or unauthorized usage being recorded on your meter.
  5. No Additional Charges: It’s assumed that the bill reflects only the cost of electricity consumed, without any additional fees or charges that could affect the total amount due.

By carefully considering these assumptions and comparing your actual power usage with the billed amount, you can determine if there is a discrepancy. If you suspect an error, it may be necessary to have your meter tested or to consult with your electricity provider for clarification. Remember, the accuracy of your determination is contingent upon the validity of these assumptions. If any of these assumptions do not hold true, the conclusion drawn about overcharging may not be reliable. These assumptions are necessary for a simplified calculation, but they do not reflect the complexities of actual power usage and supply conditions. For a more accurate assessment, a continuous recording of power consumption over the billing period, accounting for fluctuations, would be required. This data could then be compared with the meter reading on your bill to determine if there is a discrepancy indicating you might be paying too much for electricity. If such a discrepancy is found, it would be advisable to have your meter tested. Remember, the cost of testing the meter is typically refunded if the meter is found to be faulty.

Unbalanced voltage conditions in power supplies can indeed have significant effects, even if they are not immediately obvious. Let us explore why phase-to-phase voltages might not be relatively close to each other, despite phase-to-neutral voltages appearing balanced.

  1. Voltage Imbalance and Its Causes:
    • Voltage imbalance occurs when the voltages in a three-phase system are not equal. It can result from various factors:
      • Generation Faults: Issues in the power generation process can lead to voltage imbalances.
      • Unmatched Impedance: Transformer banks with unmatched impedance can cause imbalances.
      • Single-Phase Loads: Unevenly distributed single-phase loads across the three phases can create voltage imbalances. For example:
        • If one phase carries significantly more current due to single-phase motors or heating/cooling loads, the line-to-neutral voltage of that phase will be lower than the other two.
        • Similarly, if most of the load is connected over only two phases, one line-to-neutral voltage will be higher than the other two.
      • Unbalanced voltage affects both induction motors and electronic rectifiers.
  1. Effects on Induction Motors:
    • Motor Torque and Speed: Unbalanced voltage negatively impacts motor torque and speed.
    • Noise: Motors may produce excessive noise.
    • Current Imbalance: Voltage imbalance can lead to increased current imbalance.
    • Temperature Rise: The temperature rise due to voltage imbalance can be much greater than the percentage of imbalance itself.
  2. Why Phase-to-Phase Voltages May Differ:
    • Even if phase-to-neutral voltages appear balanced, phase-to-phase voltages can differ due to the specific load distribution.
    • Consider a scenario where:
      • Phase A has a higher load (more single-phase devices connected).
      • Phase B and C have relatively lower loads.
    • In this case:
      • The line-to-neutral voltage of Phase A will be lower.
      • The line-to-line voltages (Phase A-B and Phase A-C) will also differ.
    • Thus, phase-to-phase voltages may not be close to each other, even when phase-to-neutral voltages seem balanced.
  3. Practical Implications:
    • Unbalanced voltages can lead to equipment damage, motor inefficiencies, and increased network losses.
    • Monitoring phase-to-phase voltages is crucial to identify and address voltage imbalances.

Remember that maintaining balanced voltages across all three phases is essential for a stable and efficient power supply. If you encounter unbalanced conditions, further investigation is necessary to ensure the health of your electrical system.

A deep understanding of the complexities involved in electrical power systems and the importance of accurate billing are based on the actual power consumption. Concerns should be raised about the potential discrepancies in power distribution and billing, especially in the context of an unbalanced network where inefficiencies can lead to increased apparent power and potentially higher charges for consumers.

Here is a brief overview of the power types:

  • Real Power (P): This is the power that performs work in the circuit, such as running appliances or lighting. It is measured in watts (W) and is what consumers ideally should be billed for.
  • Reactive Power (Q): This power does not perform any real work; instead, it is used to maintain the electric and magnetic fields in inductive and capacitive loads. It is measured in volt-amperes reactive (VAR).
  • Apparent Power (S): This is the combination of real and reactive power and represents the total power supplied to the circuit. It is measured in volt-amperes (VA).

The relationship between these types of power can be represented by the formula:

In a perfectly balanced system, the real power would equal the apparent power, and there would be no reactive power. However, in practical systems, especially those that are unbalanced, the apparent power is typically higher due to the presence of reactive power.

If you are being billed solely on apparent power, it is possible that you are paying not only for the real power consumed but also for the inefficiencies of the system.

The document attached to this blog post contains a whole lot more detail concerning the unbalanced power network condition in Linden and Modderbee.

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Contravention of Fiduciary Duties

On the 2nd of October 2023, I published an article with the heading “Phase Imbalance in Distribution Networks” in which I stated that “In a recent unrelated “survey”, I came across a 10-minute averaged voltage unbalance of 327% between Phase 2 and Phase 1”. I also asked the question: is Eskom aware what is happening on the Distribution and Reticulation Networks? I also stated that, since the medium-voltage supply comes directly from an Eskom substation which is probably about 20-metres away, one wonders what is going on at the Eskom substation since it is highly unlikely that the voltage unbalance is as a result faulty equipment at the municipal substation. It is as if one phase is completely missing. The same “missing” phase also show an abnormal high current. The neutral current which is supposed to be at or close to zero is also very high.

In a recent webinar, I posted a question about power quality disturbances. I was then told about the large number of Quality of Supply Instrument that Eskom have installed, assuming that it is regularly maintained and monitored so that poor power quality issues will be detected almost immediately, and action taken to rectify whatever may be causing the issue or issues.

Last week, I reached out to someone at Eskom I believe may be able to help me to have this situation investigated or refer me to someone who can assist me, but that email remained unanswered and the email I sent this morning, “was deleted without being read”. This person’s name appears to be involved in this type of work on the behalf of Eskom, and that is why I reached out to him. So, my question now is: do Eskom or any of the Power Distributors care about Poor Quality of Supply?

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