COMPLIANCE MONITORING REPORT OF SOL PLAATJE MUNICIPALITY · COMPLIANCE MONITORING REPORT OF SOL...

COMPLIANCE MONITORING

REPORT OF SOL PLAATJE

MUNICIPALITY

Monitoring Date: 06 August 2016

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All enquiries and correspondence to be directed to the Head of Department

unless indicated otherwise by means of a formal letter signed by the head

of department: Electricity Licensing, Compliance and Dispute Resolution.

Tel: 012 401 4794

National Energy Regulator

Kulawula House

526 Madiba Street

Arcadia

Pretoria

PO Box 40434

Arcadia

0007

Tel: +27 (0)12 401 4600

Fax: +27 (0) 12 401 4700

www.nersa.org.za

DISCLAIMER

This is a final report considered a true reflection of the implementation of

the CAP based on information and evidence obtained from both the licensee

and site verification of plant condition conducted during the monitoring

process.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ..................................................................................... 4

1. INTRODUCTION ........................................................................................... 5

1.1 OVERVIEW ....................................................................................................... 5

1.2 MONITORING AND ENFORCEMENT OBJECTIVES ................................................... 5

2. METHODOLOGY .......................................................................................... 6

3. NERSA AND SOL PLAATJE MUNICIPALITY DELEGATES ....................... 6

4. GENERAL INFORMATION ON SOL PLAATJE MUNICIPALITY ................. 7

5. AUDIT FINDINGS .......................................................................................... 7

6. SOL PLAATJE MUNICIPALITY’S PERFORMANCE ON NERSA

COMMUNICATION ........................................................................................ 8

7. PROGRESS ON THE IMPLEMENTATION OF THE CORRECTIVE ACTION

PLAN ........................................................................................................... 09

8. PLANT CONDITION DURING AUDIT VS. MONITORING TIME ................ 24

9. CONCLUSIONS .......................................................................................... 34

10. RECOMMENDATIONS ............................................................................... 35

11. NEXT STEP ................................................................................................. 35

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EXECUTIVE SUMMARY

The National Energy Regulator (NERSA) conducted a compliance audit on Sol

Plaatje Municipality (‘the Licensee’) from 27 to 29 October 2014 to determine its

level of compliance with the licence conditions. The objective was to determine

the compliance of Sol Plaatje Municipality with the legal, financial and technical

conditions of the electricity distribution licence. During the audit, Sol Plaatje

Municipality representatives gave an overview, which addressed, among others,

the staff complement, asset management, infrastructure development, the

maintenance strategy and infrastructure projects done to date.

After the audit, findings were recorded in a draft report and forwarded to the

Licensee for management comments with regard to the correctness of the findings

in order to make the report final. On 05 February 2015, Sol Plaatje Municipality

sent the management comments to NERSA. These were received well within the

prescribed time frame. The report was then considered final by NERSA and Sol

Plaatje Municipality was then requested to send NERSA a signed, time-bound

corrective action plan (CAP) to address the highlighted instances of non-

compliance.

On 19 June 2015, Sol Plaatje Municipality sent a CAP for NERSA’s perusal and

this was found to be acceptable as it addressed the issues highlighted by the audit.

The National Energy Regulator instituted a monitoring regime to ensure and

enforce the implementation of the CAP. On 06 August 2016, the National Energy

Regulator conducted a monitoring exercise on the implementation of the CAP at

Sol Plaatje Municipality. The monitoring exercise was conducted in order to

determine the progress made in the implementation of the CAP. The National

Energy Regulator is of the view that addressing issues raised during an audit will

help Sol Plaatje Municipality to be a more efficient and effective licensee.

This report depicts all the findings as per the audit and presents the status quo in

terms of the progress that has been made at the time of the monitoring to address

the instances of non-compliance highlighted during the audit. During the

monitoring exercise, NERSA conducted site inspections to verify progress made

in the implementation of the CAP. The level of improvement is depicted in detail

in Section 7 of the report.

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1. INTRODUCTION

1.1 Overview

The National Energy Regulator (NERSA) is required to monitor and

assess whether the electricity suppliers comply with the conditions of their

licences. The Energy Regulator approved a compliance monitoring

framework for electricity distributors in 2011, which acts as a guide on how

compliance audits and monitoring must be conducted. The framework is

also supported by the Electricity Regulation Act, 2006 (Act No. 4 of 2006),

Chapter 4 (a) (vii), which states that ‘the Regulator must enforce

performance and compliance; and take appropriate steps in the case of

non-performance’. The National Energy Regulator conducts the

compliance audits on licensed electricity distributors annually.

The National Energy Regulator regulates the energy industry in

accordance with Government laws and policies, standards and

international best practices in support of sustainable development. The

organisation issues licences to electricity distributors and therefore

requires audits to be conducted against key licence obligations. It is the

National Energy Regulator’s mandate to monitor and enforce compliance

with the licence conditions as per the Act. This monitoring process

enforces and ensures the improvement and sustainability of the licensees

for the betterment of the Electricity Supply Industry (ESI), which will lead

to improved quality of supply and service to customers.

1.2 Monitoring and Enforcement Objectives

The key objectives of the compliance monitoring and enforcement of the

corrective action plans are to:

a) enforce implementation of the corrective action plans;

b) help the licensee not to lose sight of critical matters that need to be

corrected;

c) help the licensee to start doing self-monitoring in terms of their

performance against licence conditions;

d) help the licensee to ensure that the quality of service and supply does

not decline; and

e) inform the Energy Regulator of the progress made by the licensee in

the implementation of the corrective action plans.

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2. METHODOLOGY

A corrective action plan template was developed and sent to Sol Plaatje

Municipality (‘the Licensee’) to populate all the instances of non-compliance

highlighted during the audit, together with the intended corrective action plan

(CAP) with target dates of implementation. This is to be used by the National

Energy Regulator to monitor the progress made and to establish whether the

timelines on the CAP were realistic and addressed the issues highlighted

during the audit.

The CAP was sent to the National Energy Regulator after being signed by the

relevant officials of the Licensee. The National Energy Regulator agreed on

the CAP and instigated a monitoring process that robustly monitors progress.

Progress is checked against target dates and remedial actions are

implemented on an ongoing basis. Proof and supporting documents are

requested and presented to the National Energy Regulator’s officials during

the monitoring process. Site verification was also done to compare the current

plant condition against the plant condition during the audit.

3. NERSA AND SOL PLAATJE MUNICIPALITY DELEGATES

NERSA was represented by the following officials:

Mr Bongani Nhlabathi Compliance Monitoring Engineer

Ms Bulelwa Gobe Distribution Compliance Snr Engineer

Ms Basentjeng Malatji Compliance Monitoring Technician

Ms Vuyelwa Poswa Dispute Resolution Officer

Mr Morris Mafuyeka Compliance Monitoring Technician

Sol Plaatje Municipality was represented by the following:

Mr R Coertze City Electrical Engineer

Mr F Aysen Manager: Electrical Distribution

Mr B Booth Manager: Finance

Mr N Zwane Projects Manager: Electrical Distribution

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4. GENERAL INFORMATION ON SOL PLAATJE MUNICIPALITY

Sol Plaatje Local Municipality is an electricity distribution licence holder;

licence number NER/D/NC091; and its supply areas are as listed in Schedule

1 of Sol Plaatje’s Electricity Distribution Licence. It has three bulk supply points

with an installed capacity of 685 MVA and a maximum demand of

109.925 MVA. The Licensee’s Notified Maximum Demand (NMD) to Eskom is

currently at 114 MVA. The network consists of 265km of Medium Voltage

(MV) underground cable, 1614km of Low Voltage (LV) underground cable,

130km of MV overhead lines and 227km of LV overhead lines.

It has 54,198 customers, which are categorised as follows: 42,697 prepaid

domestic; 7,887 domestic credit meters; 3,215 commercial; and 399 industrial

customers. The total geographical area of Sol Plaatje Local Municipality is

approximately 417 km². At the time of the monitoring, it was highlighted that

some instances of non-compliance that were noted during the initial audit have

been addressed. These include the updating of the list of electricians

authorised to perform High Voltage (HV) switching, infra-red scanning on HV

equipment being performed annually, installing Quality of Supply meters at

most of the Licensee’s substations and 90% of oil samples have been taken

from the Licensee’s power transformers.

The Licensee’s representatives also mentioned that some of the findings

pertaining to the electricity network have not yet been addressed as indicated

in the CAP that was sent to the Energy Regulator. The allocation of funds by

the Finance Department of Sol Plaatje Municipality was mentioned as one of

the reasons the projects had not been be concluded. However, the Licensee

has submitted an application to the Department of Energy (DoE) for funds in

order to complete the projects. Proof of the application that was submitted to

the DoE was given to the NERSA audit team.

5. AUDIT FINDINGS

At the time of the audit, the following was highlighted to the Licensee as areas

that need attention and improvement:

a) The vacancies must be filled.

b) The Sol Plaatje Municipality must ensure that its electricity business is

completely ring fenced.

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c) Sol Plaatje Municipality should budget sufficient funds (6%) for

maintenance of the electricity network as required by the NERSA tariff

guideline.

d) The Licensee should place all Type A mini-substations on a replacement

programme as they are old and obsolete.

e) The Licensee should apply to NERSA to amend Schedule 1 of its

Electricity Distribution Licence.

f) Vegetation management should be prioritised as certain areas that were

inspected during the audit showed a lack of vegetation management.

g) Regular maintenance should be conducted on all switching rooms as most

switch-rooms had immense dust accumulation at the time of the audit.

h) The Project Master Plan of the Licensee must incorporate the full master

plan.

i) Power quality measuring and monitoring must be implemented.

j) A control centre should be established and the existing SCADA is to be

utilised.

k) All oil leaking transformers and old silica gel needs to be attended to.

l) Obsolete oil circuit breakers should be put on a replacement programme.

m) An apprentice programme should be established.

n) Expired fire extinguishers need to be attended to.

o) Blanking plates need to be placed where necessary to prevent bird

nesting.

p) Re-authorisation of the switching personnel must be addressed as per the

ORHVS requirements.

6. SOL PLAATJE MUNICIPALITY’S PERFORMANCE ON NERSA

COMMUNICATION

In October 2014, the National Energy Regulator conducted a compliance audit

on Sol Plaatje Municipality to determine its level of compliance with its licence

conditions. This audit was followed by a number of emails from the National

Energy Regulator to Sol Plaatje Municipality. This communication was sent

directly to Sol Plaatje Municipality’s Electricity Manager. In all this

communication, Sol Plaatje Municipality’s Electricity Manager cooperated and

responded in a satisfactory manner as indicated below.

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Table 1: SPM’s response record

NERSA REQUEST DATE OF REQUEST LICENSEE

RESPONSE

DATE OF

RESPONSE

Request of Management

comments on draft report

08/12/2014 Management

comments sent

05/02/2015

Request for Corrective Action

Plan

01/04/2015 CAP sent 19/06/2015

Monitoring notification 27/06/2016 Positive response 28/06/2016

Monitoring exercise 06/08/2016 Positive response 05/09/2016

7. PROGRESS ON THE IMPLEMENTATION OF THE CORRECTIVE ACTION

PLAN

At the time of the monitoring, it was highlighted that some instances of non-

compliance that were noted during the initial audit have been addressed.

These include updating the list of electricians authorised to perform High

Voltage switching, infra-red scanning on HV equipment being performed

annually, Quality of Supply meters having been installed in most of the

Licensee’s substations and 90% of oil samples having been taken from the

Licensee’s power transformers.

The Licensee’s representatives also mentioned that some of the findings

pertaining to the electricity network have not yet been addressed as indicated

in the CAP that was sent to the Energy Regulator. The allocation of funds by

the Finance Department of Sol Plaatje was mentioned as one of the reasons

that the projects had not been concluded. However, the Licensee has

submitted an application to the DoE for funds in order to complete the projects.

Proof of the application that was submitted to the DoE was given to the

NERSA audit team.

The table below depicts the progress made at the time of the monitoring of the

implementation of the CAP that was submitted to NERSA.

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Table 2: CAP Implementation Progress

Non-Compliances Corrective Action Planned Financial Impact Target Start Date Target

Completion Date

Status During

Monitoring

1: VACANCIES

Senior Draftsperson:

OPERATIONS & PLANNING

Position on Organogram – T10.

1. Put on budget for 2016/17

2. Appoint Draftsperson on a full-

time basis for 2016/17

R183K – R233K

July 2015

July 2015

June 2016

July 2017

Non-compliance has not

been addressed, target

date moved to 2017/18

FY

Electrician:

ELECTRICAL DISTRIBUTION

(2 electricians and 1 tool assistant

vacant)

Position on Organogram.

Electrician short listing on 01/09/2016.

Appointment to be made by end

September2016

R 380K

August 2016

September 2016

Advertisements have

been published for 2

electricians and 1 tool

assistant

Crane Truck Operator:

ELECTRICAL DISTRIBUTION

Position on Organogram – T6.

1. Put on budget for 2016/17

2. Appoint Crane Truck Operator

on full-time basis for 2016/17

R106K – R138K

July 2015

July 2015

June 2016

July 2017

Appointment for the

Crane Truck Operator to

be made by end

September 2016.

2: TRAINING: APPRENTICESHIP

Intake of Apprentices depends on

availability of funds from

LGSETA/Municipality. Internal & External

Candidates are eligible

n/a

No Apprenticeship Programme Apply for Funds from LGSETA for

2016/17

n/a July 2015 July 2016 The Licensee to submit

an application to LGSETA

for funds to build a

training facility

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Non-Compliances Corrective Action Planned Financial Impact Target Start Date Target

Completion Date

Status During

Monitoring

Budget for Stipend: Minimum 2x

Apprentices @4000pm

R96K July 2015 June 2016 Completed

Budget for Training/Courses: Minimum 6x

Courses per annum @4000 per course

R48K July 2015 June 2016 Completed

Draft Training Programme for

Apprenticeship Programme (Electrical) &

Apprenticeship Application Procedure

n/a July 2015 December 2015 Completed

3: HEALTH & SAFETY

Update List: Electricians authorised to

do 66kV/11kV Switching. ORHVS

Update List of Electricians authorised to

do 66kV/11kV Switching - Ongoing

n/a July 2015 31 August 2015 Completed; proof

submitted

ORHVS: Authorised Personnel

ORHVS: Personnel who work under

supervision of Authorised Personnel

Update List of Personnel who work under

supervision of Authorised Personnel


submitted

Appointment Letters: 66kV Switching Submit proof of Appointment Letters for

66kV Switching Authorisation to NERSA


submitted

Update ORHVS List and remove

employees who left SPM

Update ORHVS List and remove

employees who left SPM. Completed.


submitted

Update Employees Safety Files Safety files to be compiled and updated

on a regular basis


submitted

4:FINANCIAL CONDITIONS

Ring Fence Electricity Finances

SPM partially ring-fenced

Give NERSA more details in terms of how

partial ring-fencing is done.

n/a July 2015 31 August 2015 Partially ring-fenced, a

copy of the AG report for

2014/15 FY was

submitted

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Non-Compliances Corrective Action Planned Financial

Impact

Target Start Date Target

Completion

Date

Status During

Monitoring

Tariff increase for LPU not approved Give NERSA feedback on application and

response from NERSA

n/a July 2015 31 August 2015 Completed, latest copies

of bills sent to customers

for all of the Licensee’s

customer categories were

submitted

5: MAINTENANCE COSTS

Budget vs Actuals Review Financial Systems to include all the

Maintenance-related costs, i.e. Materials &

Labour Costs

n/a July 2015 June 2016 Completed

Maintenance Cost = 2.7% (Less than

6%)

A review of the current Financial System

will be implemented during the next

financial year: 2015/16

n/a July 2015 June 2016 Allocation of 6% for

repairs and maintenance

is still an issue for the

Licensee

6:STORES

Theft at the stores Tender for Security & Surveillance in place

n/a Tender in progress June 2016 Completed

Guard House not sufficiently used

Tender for Security & Surveillance in place. R1M Tender in progress June 2016 Completed

7:KEY NETWORK STATS &

STRATEGIC PLANNING

Load Forecast: Consumption very

close to exceeding NMD of 112MVA

SPM already did an application to Eskom

for an increase of NMD from 112MVA to

140MVA.

Supply NERSA with Proof. Project

completed. Additional 80MVA capacity

added.

R 0 31 January

2016

Completed

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Impact


Completion

Date

Status During

Monitoring

- Contact Eskom and apply

for Upgrade of NMD to

avert imminent penalties

SPM together with Eskom implement an

80MVA upgrade project at Homestead

66kV Substation. Eskom implemented the

project on behalf of SPM. Supply is to be

made available as soon as the contract

between SPM and Eskom has been signed

and the project has been completed.

R 0 31 January

2016

Completed

8:ASSET MANAGEMENT &

PRACTICES

Network Diagrams

Single Line Diagram not up to date

Long-term action: Put on budget & fill the

vacant Senior Draftsperson position for

2016/17

R183K – R233K

July 2015

June-2016

SLD updated

Fill the vacant Senior Draftsperson

position for 2016/17

Update Network Drawings and send them

to GIS Department for update on GIS

System

July 2016 June-2017 Position still vacant but

SDLs are being updated

on on-going basis

Maintenance Plans/Policies

Maintenance Plan/Policy in place Review Current Planned Maintenance

System

n/a July 2015 September-

2016

Completed

Infra-red scanning in place Identify Electrical Infrastructure Equipment

& Prioritise Critical Equipment for Planned

Maintenance

Figures not

provided

July 2015 30 June 2016 Annual infra-red scanning

done

11kV Planned Maintenance Done =

21%

66kV Planned Maintenance Done =

38%

Develop MS Excel based Planned

Maintenance System

n/a July 2015 30 June 2016 Completed

Long-term: Upgrade the current EDAMS

Call Centre System to include Maintenance

CMMS Package & Asset Management

R1.5m July 2016 30 June 2017 Finance requested to

allocate funds to fast-

track the project

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Impact


Completion

Date

Status During

Monitoring

Poor Implementation of Planned

Maintenance

Electricity Distribution personnel to

Implement Planned Maintenance on

electrical infrastructure.

Figures not

provided

01 July 2014 30 June 2016 Annual infra-red scanning

done. Oil sampling,

analyses and inspections

of all transformers 90%

completed. Busy

analysing results thereof

and implementing

corrective action to be

completed by June 2017

9: QUALITY OF SERVICE

5.4.1: NRS047

C. Problems with old proprietary

meters

SPM is replacing old proprietary meters in

an on-going process. JOSEPHINE/ITRON

R 0 On-going On-going Licensee purchased 5

meters to be installed in

substations and for LPU

customers

G. Disconnection Notice of 5 days

instead of 14 days for LPU. Non-

compliance

Review & implement as per NERSA

Requirements. ADV KLOPPER

R 0 July 2015 June 2016 Completed

Quotations: Turnaround time for

Mini-subs of 24 months

unacceptable. Contravention

The actual delivery of Mini-Subs is 24

weeks, not 24 months. Sufficient miniature

substations in stock.

Figures not

provided

On-going Completed, evidence of

adequate mini-subs was

seen at the store yard

10:QUALITY OF SUPPLY (QoS)

NRS048

Monitoring of QoS Identify & Prioritise Priority customers Figures not

provided

July 2014 June 2015 5 outstanding but meters

to be installed by June

2017

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Impact


Completion

Date

Status During

Monitoring

SPM claims monitoring is done Kimberley Hospital, KEW, Abattoir and

Werda already have QOS recorders

installed.

Main 66/11kV intake substations and large

customers to be installed. 5 QOS

Recorders purchased. To be installed

n/a July 2016 June 2017 To be completed by June

2017, part of the 5 meters

that have been procured

No QOS Monitoring equipment

installed for Key Customers

Install QoS Monitoring for Key Customers

or Produce Recording Data if already

installed

n/a July 2016 June 2017 To be completed by June

2017, part of the 5 meters

that have been procured

5.5.3: No QOS Contracts with Key

Customers

Not Applicable: No Customer has

approached SPM for QoS Contract

n/a n/a n/a n/a

No Emergency Plan

- Load shedding schedule in

place

- Critical vs. Essential Loads

NRS048-9

- Review Critical vs.

Essential Loads

- Check with Eskom

Review Critical vs. Essential Loads.

n/a July 2014 30 August 2015 Completed, proof

submitted

- Review Contact Persons:

Customer/Supplier

n/a July 2014 30 August 2015 Completed, proof

submitted

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Impact


Completion

Date

Status During

Monitoring

11: NETWORK OPERATION &

INFORMATION TECHNOLOGY

SCADA SYSTEM

- SCADA not fully operational Currently upgrading the SCADA/Telemetry

System. Project 90% complete

R1m (In

progress)

July 2014 August 2015 Still forms part of Capital

Projects, the electricity

department awaits

allocation in the 2016/17

FY

- Implementation of fully-

fledged Electrical Network

control centre

Requires sufficient budget for more

personnel & other resources. Not a priority

currently

Will require fully qualified technical

personnel (artisans and technicians) on 24

hour shift basis. Current only operating as a

call centre.

R1m – R2m n/a n/a Not completed

Post-mortem Incident Reviews

- Incidents not recorded,

investigated & documented,

i.e. Cable theft incident

where a person was

electrocuted

- Manual Incident Investigation

Procedure in place

- Electronic (NOSA Miracles)

currently being implemented. and

training roll-out taking place

- It is the responsibility of all line

managers to ensure completion

of Incident Investigations as per

OHS Act

Depends on

nature of

incident

July 2015

June 2016 Completed, it was

reported that it is the

responsibility of all line

managers to ensure

completion of Incident

Investigations as per OHS

Act

- Complete Incident

Investigations and

implement

recommendations

All the responsible Line Managers to

Complete Incident Investigations and

implement recommendations

R 0 01 July 2015 On-going Being conducted on

continued basis

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Impact


Completion

Date

Status During

Monitoring

12: PLANT CONDITION

SUBSTATIONS

- Some HV substations have

safety signs that have

faded

- Vegetation and weeds not

properly managed at some

HV substations

- Replace and install safety signs

at all substations

- Implement Vegetation and Weed

Control Plan. Ongoing

Figures not

provided

July 2015

June 2016

On-going

12.1: Herlear 66/11kV Substations

- No stones (crusher) in HV

Yard

- Some slab trench covers

missing

- Earthing cut off on HV

circuit Breaker stands

- Transformer breakers old

with signs of oil leaks

- Ashburnham Tx Breaker #2

signs of severe oil leaks

- Bee infestation

- Silica gel on two

transformers show signs of

poor maintenance

- Oil leaks on Transformer #1

- Neutral Earth Resistor NER

silica gel/old

- Battery & charger room

used as storage

- Place crusher stones in HV Yard

- Replace trench covers (slabs)

- Inspect & check for proper

earthing on HV yard structures

- Repair oil leaks on transformer

circuit breaker

- Breaker to be replaced. Possible

DoE funding

- Bees to be removed

- Replace Neutral Earth Resistor

- Silica gel to be replaced

- Remove unnecessary items in

battery rooms

Figures not

provided

July 2015

July 2016

01 Sept 2015

01 Sept 2015

01 Sept 2015

01 Sept 2015

01 Sept 2015

01 Sept 2015

01 Sept 2015

01 Sept 2015

June 2016

June 2017

30 Sept 2015

30 Sept 2015

30 Sept 2015

30 Sept 2015

30 Sept 2015

30 Sept 2015

30 Sept 2015

30 Sept 2015

Majority of issues

completed and others

form part of on-going

maintenance practices

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Impact


Completion

Date

Status During

Monitoring

- Single Line Diagrams not

up-to-date

- Update Single Line Diagrams

Figures not

provided

July 2016

June 2017

Completed

- Obsolete Phase One

Protection Relays

- Replace old & obsolete relays Figures not

provided

July 2016 June 2017 Completed

12.2: Hall Street 66/11kV

Substations

- Oil Leak on 20MVA

Transformer & Silica Gel

- No weed & vegetation

control

- No visible earths

- Replace wooden entry door

to switch-room

- Install warning & safety

signs at door

- Fire extinguisher due for

service

- No First Aid box

- No Single Line Diagram

- No covers on cable

trenches

- Transformer replaced

- Implement vegetation/Weed

Control Plan

- Earths replaced

- Repair door

- Install warning & safety signs at

door

- Service fire extinguisher

- Install First Aid box

- Update Single Line Diagram

- Replace covers on cable

trenches

Figures not

provided

July 2015

July 2015

July 2015

July 2015

July 2015

July 2015

July 2015

July 2015

30 Sept 2015

30 Sept 2015

30 Sept 2015

30 Sept 2015

30 Sept 2015

30 Sept 2015

30 Sept 2015

Completed

Completed

Completed

Completed

Completed

Completed

Not completed

Completed

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Impact


Completion

Date

Status During

Monitoring

12.3: Ashburnham 66/11kV

Substation

- Bird nests in HV yard

- Oil leak on Hall Street &

Herlear breakers

- Dust accumulation & oil

leak on Homestead #2 oil

Circuit Breakers (white &

blue phases)

- Silica gel/moisture content

- No Quality of Supply

monitoring equipment

- Replace old relays &

switchgear

- Replace missing trench

covers

- Remove bird nests in HV yards

- Breaker to be replaced. Possible

DoE funding

- Nothing wrong with silica gel

- Install Quality of Supply

equipment

- Replace old relays & switchgear

- Replace missing trench covers

Figures not

provided

July 2015

July 2015

n/a

July 2015

July 2015

July 2015

30 June 2016

30 June 2016

n/a

30 June 2016

30 June 2016

30 June 2016

Not completed

Not completed

Target date moved to

June 2017

Completed

Completed

12.4: Midlands 66/11kV Substation

- Silica gel condition

- Single Line Diagram (SLD)

not up-to-date

- Local transformer

- Fuses & kitchen type panel

with proper panel

- Silica gel of new generation type


- Repair leaks and replace silica

gel

- Enclose fuses & kitchen type

panel with proper panel.

Figures not

provided

July 2015

July 2015

July 2015

July 2016

Completed

June 2016

June 2016

June 2016

Completed


June 2017


June 2017


June 2017

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Impact


Completion

Date

Status During

Monitoring

12.5: HA Morris 66/11kV Substation

- Major oil leaks Transformer

#2

- Silica gel indicator

Transformer #1

- NER on Transformer #1

signs of neglect/old silica

gel

- Do proper earthing of NER:

Continuous earth

- Major oil leaks on

Transformer #1 Circuit

Breaker

- Service portable fire

extinguisher

- Install trench covers

- Update Single Line

Diagram

- Repair Major oil leaks

Transformer #2

- Check silica gel & oil Transformer

#1

- Check silica gel & oil: NER on

Transformer #1

- Do proper earthing of NER:

Continuous earth

- Repair oil leaks: Transformer #1

circuit breaker

- Service portable fire extinguisher

- Install trench covers


Figures not

provided

01 August 2015

01 August 2015

01 August 2015

13 April 2015

01 August 2015

01 August 2015

01 August 2015

01 August 2015

31 August 2015

31 August 2015

31 August 2015

17 April 2015

01 August 2015

31 August 2015

31 August 2015

31 August 201

Completed

Completed

Completed

Completed

Date moved to June 2017

Completed

Completed

13: SWITCHING SUBS, MINISUBS,

POLE TRANSFORMERS & OH

LINES

13.1: Midlands Switching

Substation 11kV/400V

- No fence around switching

sub

- Install fence around switching sub

Figures not

provided

July 2015

June 2016

Fence was installed but

has been stolen, Sol

Plaatje has installed a

mini-sub and a High mast

in the vicinity.

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Impact


Completion

Date

Status During

Monitoring

13.2: Transvaal Road Switching


- Remove garbage at

switching sub

- Housekeeping & vegetation

management

- No fence around switching

sub

- Put obsolete switchgear on

replacement programme

- URGENT: protection

system not functional

- URGENT: replace stolen

battery system

- Install security/alarm

system

- Replace trench covers

missing

- Poor general house

keeping

- Remove garbage at switching

sub

- Housekeeping & vegetation

management

- Install fence around switching sub

- Put obsolete switchgear on

replacement programme

- Protection system to be upgraded

on new panels

- URGENT: replace stolen battery

system

- Battery charger to be replaced

- Install security/alarm system

- Replace trench covers missing

- Repaint and clean substation

Figures not

provided

01 July 2015

01 July 2015

01 July 2015

01 July 2015

01 July 2015

01 July 2015

01 July 2015

01 July 2015

01 July 2015

01 July 2015

31 July 2015

31 July 2015

01 June 2016

01 June 2016

01 June 2016

01 June 2016

01 June 2016

01 June 2016

01 June 2016

01 June 2016

Completed

Completed

Moved to June 2017

Moved to June 2017

Moved to June 2017

Moved to June 2017

Completed

Moved to June 2017

Moved to June 2017

Moved to June 2017

13.3: Magashula Street Switching


- Poor housekeeping:

Exterior

- No danger signs

- Wall cracked

- Obsolete indoor switchgear

- Oil leaks on switchgear

- Substation to be replaced by

mini-substation. Old building to

be demolished.

R800K

01 Oct 2015

31 Oct 2015

Condition has not

improved, target date

moved to June 2017

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Impact


Completion

Date

Status During

Monitoring

13.4: Dingaan Street Switching


- Poor housekeeping: Dust

accumulation on

transformers

- Replace silica gel

- No ventilation; excessive

heat

- No fire extinguishers

- Obsolete switchgear with

major oil leaks

- Earth wire on isolator non

connected

- No trench covers

- Replace kitchen cabinets

panels with proper system

- Improve housekeeping: dust

accumulation on transformers

- Inspect silica gel & transformer oil

- Install ventilation system

- Install fire extinguishers

- Repair/replace obsolete

switchgear oil leaks

- Connect earth wire on isolator

- Replace/Install trench covers

- Enclose old kitchen cabinets

panels

Figures not

provided

01 July 2015

01 July 2015

01 July 2015

01 July 2015

01 July 2015

01 July 2015

01 July 2015

01 July 2015

30 June 2016

30 June 2016

30 June 2016

30 June 2016

30 June 2016

30 June 2016

30 June 2016

30 June 2016

Condition has not


moved to June 2017

13.5: Five April Switching


- Poor housekeeping:

Vegetation

- Upgrade Protection Relays

- Trench covers

- Improve housekeeping:

Vegetation control

- Upgrade Protection Relays

- Replace/install trench covers

Figures not

provided

01 July 2015

01 July 2015

01 July 2015

30 June 2016

30 June 2016

30 June 2016

Condition has not


moved to June 2017

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Impact


Completion

Date

Status During

Monitoring

13.6: Witdam Switching Substation

11kV/400V

- Vegetation: poor

housekeeping

- Fire extinguishers not

serviced

- No trench covers

- Batteries not installed in

proper battery bank/room

- Improve housekeeping:

Vegetation control

- Service fire extinguishers

- Replace/install trench covers

- Properly install batteries on

battery bank/battery room

Figures not

provided

1 July 2015

1 July 2015

1 July 2015

1 July 2015

30 June 2015

30 June 2015

30 June 2015

30 June 2015

July 2017

Completed

Completed

Completed

13.7: Hospital Switching


- Check silica gel of 500kVA

Transformer

- Oil leaks on the transformer

- Batteries not installed on

proper battery bank

- Check silica gel & transformer oil

- Repair transformer oil leaks

- Properly install batteries/battery

bank

Figures not

provided

01 July 2015

01 July 2015

01 July 2015

30 June 2016

30 June 2016

December 2015




13.8: McDonalds Mini-Substation

11kV/400V

13.9: St Paul Mini-Substation

11kV/400V

- Old type A mini-sub

- Severe lack of maintenance

- No warning signs

- Plinth vandalised

- Old type switchgear

- Un-insulated &

unconnected cables

- No vermin proofing

- All old type A mini-subs in area to

be replaced. Ongoing

R400K

July 2015

30 June 2016






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Impact


Completion

Date

Status During

Monitoring

13.10: Roodepan Sterling Street

Mini-Substation 11kV/400V

- Old type A mini-sub

- Enclosure badly rusted

- Severe lack of maintenance

- No warning signs

- Uncontrolled access: no

locks

- Sand inside/outside mini-

sub

- No vermin proofing

-

- All old type A mini-subs in area to

be replaced. Ongoing.

R400K

01 July 2015

30 June 2016

Condition has not


moved to June 2017

13.11: PT111 Pole-Mounted

Transformer

- Pole-top breakers not in

their enclosures: exposed

to rain

- Earth wires not properly

connected

- Inspect all pole-mounted

transformers & ensure no

switchgear exposure to rain

- Properly connect earth wires

Figures not

provided

01 July 2015

01 July 2015

30 June 2016

30 June 2016

Completed

Completed


Transformer

- Pole-top breakers not in

their enclosures: exposed

to rain

- Inspect all pole-mounted

transformers & ensure no

switchgear exposure to rain.

Ongoing

Figures not

provided

01 July 2015

30 June 2016

Condition has not


moved to June 2017

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Impact


Completion

Date

Status During

Monitoring


Transformer

- No anti-climb equipment

- Earth wires broken/not

joined

- Cable/blanking plates

missing: bird nests visible

- Install anti-climb equipment

- Properly connect earth wires

- Replace cable/blanking plates

bird

Figures not

provided

01 July 2015

01 July 2015

01 July 2015

30 June 2016

30 June 2016

30 June 2016

Condition has not


moved to June 2017

14: Overhead Lines & Looping

Network

- Trees encroaching onto

the line in certain areas

- Midlands PT044: circuit

breakers feeding customer

cables not covered for

protection against adverse

weather conditions

- Condition of poles show

ageing

- Old transformers on the

line showing signs of poor

maintenance: supporting

structures & transformer

housings rusted

- Old Looping

Network/Vergenoeg

- Inspect OH Lines: Cut Trees

encroaching into the lines -

Ongoing

- Midlands PT044: Install

cover/enclosure for circuit

breakers feeding customer

cables

- Inspect/replace old & ageing

poles

- Inspect all transformers on the

line. Repair & replace where

applicable

- Aged wooden poles to be

replaced where necessary

- Upgrade network: Old Looping

Network in

Galeshewe/Vergenoeg

R2m pa

Multi-year

01 July 2015

01 July 2015

01 July 2015

01 July 2015

01 July 2015

When budget is

available

30 June 2016

30 June 2016

30 June 2016

30 June 2016

30 June 2016

When budget is

available

Condition has not


moved to June 2017

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The management of Sol Plaatje Municipality has managed to address 66% of

the non-compliances with regard to vacancies as the draftsperson position has

not been filled, however the Licensee has budgeted for the position in the

current financial year (2016/17 FY). The Sol Plaatje Municipality is in the

process of filling the other positions that were highlighted during the audit.

Proof of the filling of the positions was submitted to the audit team.

Sol Plaatje Municipality’s performance in addressing non-compliances that

were highlighted during the audit is outstanding. The non-compliances

completed during the monitoring period are as depicted in Table 2 above. The

Licensee managed to fully address non-compliances pertaining the following:

health and safety, asset management, quality of service, network planning,

maintenance policy, emergency plans as well as quality of supply. However,

Sol Plaatje Municipality encountered a challenge in the ring-fencing of the

electricity business as this was still partially ring-fenced during the monitoring

period. Also, the budget for repairs and maintenance was still below the 6%

allowable revenue as stipulated in the Electricity Pricing Policy.

8. PLANT CONDITION DURING AUDIT VS. MONITORING TIME

Sol Plaatje Municipality had completed all projects that it had undertaken in all

five of its major substations during the monitoring period. All old HV power

transformers at the five substations had been replaced and Sol Plaatje

Municipality had added an additional 80 MVA capacity as certain 20 MVA

transformers had been replaced by 30 MVA transformers. The old obsolete

switchgear that had been highlighted during the compliance audit had been

replaced by new SF6 vacuum type circuit breakers at all five substations. Fire

walls and oil catchment bays had been built for all newly installed power

transformers in the substations. Single line diagrams had not been updated in

certain switch rooms at the time of monitoring. The Licensee was awaiting

funding from the DoE to complete the replacement of the HV breakers that

were leaking oil due to the breakers having exceeded their lifespan. Proof of

the application for funds to complete the project of the replacement of the HV

breakers that the Licensee submitted to the DoE was given to the audit team.

The photos below depict the condition of the network equipment during the

audit compared to the condition during the monitoring process.

of 35

8.1 Substations

8.1.1 Herlear 66/11kV Substation

Slab covers missing Condition sill the same in 2016

Earths on circuit breaker stands cut-off Earths installed in 2016

Signs of oil leaks on transformer circuit breakers Condition still the same in 2016

of 35

Obsolete switchgear on the panels New switchgear installed in 2016

Battery back-up room used for storage Battery room cleared in 2016

8.1.2 Hall Street 66/11kV Substation

Signs of oil leaks in 2014 New transformer installed in 2016

of 35

Silica gel not well maintained Silica gel maintained in 2016

Signs of poor vegetation maintenance Vegetation well maintained in 2016

Open cables due to construction Conditions have improved in 2016

of 35

Visible signs of oil leaks on circuit breakers New circuit breakers installed in 2016

8.1.3 Midlands 66/11kV Substation

Old kitchen cabinet type panel Old kitchen cabinet type panel in 2016

8.1.4 HA Morris 66/11kV Substation

Evidence of oil leaks New transformer installed in 2016

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Silica gel not well maintained Silica gel well maintained in 2016

Trench covers not installed Trench covers not installed in 2016

8.2 Indoor Switching Substations, Mini-Substations, Pole-Mounted

Transformers and Overhead Lines

8.2.1 Transvaal Road 11kV/420V Switching Substation

Obsolete switchgear and panels not lockable Condition has not improved in 2016

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8.2.2 Magashula 11kV/400V Switching Substation

Evidence of lack of maintenance Condition has not improved in 2016

8.2.3 Dingaan 11kV/400V Switching Substation

Trench covers were not installed Condition has not improved in 2016

8.2.4 Five April 11kV/400V Switching Substation

Warning signs available, poor vegetation management Condition has not improved in 2016

of 35

Trench covers not installed Condition has not improved in 2016

8.2.5 Witdam 11kV/400V Switching Substation

Battery bank not in an enclosure cabinet Condition has improved in 2016

Old Type A enclosure in poor condition Condition has not improved in 2016

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Bushings, stay wires, drop out fuses and poles treated against aging was maintained in 2016

9. CONCLUSIONS

Sol Plaatje Municipality made progress in addressing the non-compliances

highlighted by the audit. This is confirmed by the filling of some vacancies, the

completion of the major projects in all substations that were started during the

compliance audit period, the regular updating of the list of qualified switching

personnel and ensuring that fire-extinguishing equipment in all substations and

switching stations is serviced as required. The Licensee has made an

application for funds to replace the HV circuit breakers and is also in the

process of completing the project of installing quality monitoring instruments in

all major substations and switching stations. Old power transformers that had

reached the end of their lifespan have been replaced by larger transformers

that have added an additional installed capacity of 80 MVA. This places the

Licensee in a better position to deal with future load growth.

However, the Licensee stills faces major challenges in budgeting 6% for

repairs and maintenance as required by the Electricity Pricing Policy. Sol

Plaatje Municipality’s electricity business is also still partly ring-fenced. This

affects target dates set by the Electricity Department on capital projects as the

budget for these are allocated when available. In most instances the target

dates for capital projects tend to be postponed to the following financial year

with no guarantees that funds will be allocated. This was evident during the

monitoring period as no work had been done by the Licensee to address the

non-compliances pertaining to obsolete switchgear in all switching stations and

old Type A enclosures for mini-substations that were rusted and were not

lockable.

of 35

10. RECOMMENDATIONS

It is recommended that Sol Plaatje Municipality should prioritise addressing

the CAP to improve its level of compliance with licence conditions and impose

a self-monitoring regime to ensure that it does not deteriorate back to non-

compliance.

11. NEXT STEP

There are still instances of non-compliance that need to be addressed by the

Licensee. As a result, the Energy Regulator expects the Licensee to implement

the corrective action plan until all the instances of non-compliance have been

fully addressed in order to improve the Licensee’s level of compliance. The

National Energy Regulator will continue to monitor the Licensee’s

implementation of the corrective action plan on an ongoing basis to ensure that

all the findings are addressed. Once the remaining projects in the CAP have

been concluded, the Licensee must send a closeout report to the National

Energy Regulator. It is expected that the Licensee will then implement a self-

monitoring regime to ensure that the improved areas do not deteriorate back

to a situation of non-compliance. Further monitoring exercises to be conducted

by the Energy Regulator on the Licensee will be communicated to the Licensee

in due course.

All communication should be forwarded to the Head of Department unless

indicated otherwise by means of a formal letter signed by the head of

department:

The Head of Department

Licensing, Compliance and Dispute Resolution: Electricity

National Energy Regulator of South Africa

PO Box 40343

Arcadia

0007

Fax: +27 (0)12 401 4700

COMPLIANCE MONITORING REPORT OF SOL PLAATJE MUNICIPALITY · COMPLIANCE MONITORING REPORT OF SOL...

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