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
n/a July 2015 31 August 2015 Completed; proof
submitted
Appointment Letters: 66kV Switching Submit proof of Appointment Letters for
66kV Switching Authorisation to NERSA
n/a July 2015 31 August 2015 Completed; proof
submitted
Update ORHVS List and remove
employees who left SPM
Update ORHVS List and remove
employees who left SPM. Completed.
n/a July 2015 31 August 2015 Completed; proof
submitted
Update Employees Safety Files Safety files to be compiled and updated
on a regular basis
n/a July 2015 31 August 2015 Completed; proof
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
Page 13 of 35
Non-Compliances Corrective Action Planned Financial
Impact
Target Start Date Target
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
Page 14 of 35
Non-Compliances Corrective Action Planned Financial
Impact
Target Start Date Target
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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Non-Compliances Corrective Action Planned Financial
Impact
Target Start Date Target
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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Non-Compliances Corrective Action Planned Financial
Impact
Target Start Date Target
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
Page 17 of 35
Non-Compliances Corrective Action Planned Financial
Impact
Target Start Date Target
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
Page 18 of 35
Non-Compliances Corrective Action Planned Financial
Impact
Target Start Date Target
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
Page 19 of 35
Non-Compliances Corrective Action Planned Financial
Impact
Target Start Date Target
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
- Update Single Line Diagram
- 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
Target date moved to
June 2017
Target date moved to
June 2017
Target date moved to
June 2017
Page 20 of 35
Non-Compliances Corrective Action Planned Financial
Impact
Target Start Date Target
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
- Update Single Line Diagram
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.
Page 21 of 35
Non-Compliances Corrective Action Planned Financial
Impact
Target Start Date Target
Completion
Date
Status During
Monitoring
13.2: Transvaal Road Switching
Substation 11kV/400V
- 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
Substation 11kV/400V
- 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
Page 22 of 35
Non-Compliances Corrective Action Planned Financial
Impact
Target Start Date Target
Completion
Date
Status During
Monitoring
13.4: Dingaan Street Switching
Substation 11kV/400V
- 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
improved, target date
moved to June 2017
13.5: Five April Switching
Substation 11kV/400V
- 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
improved, target date
moved to June 2017
Page 23 of 35
Non-Compliances Corrective Action Planned Financial
Impact
Target Start Date Target
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
Substation 11kV/400V
- 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
Date moved to June 2017
Date moved to June 2017
Date moved to June 2017
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
Date moved to June 2017
Date moved to June 2017
Date moved to June 2017
Date moved to June 2017
Date moved to June 2017
Page 24 of 35
Non-Compliances Corrective Action Planned Financial
Impact
Target Start Date Target
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
improved, target date
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
13.12: PT109 Pole-Mounted
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
improved, target date
moved to June 2017
Page 25 of 35
Non-Compliances Corrective Action Planned Financial
Impact
Target Start Date Target
Completion
Date
Status During
Monitoring
13.13: PT163 Pole-Mounted
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
improved, target date
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
improved, target date
moved to June 2017
Page 26 of 35
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.
Page 27 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
Page 28 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
Page 29 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
Page 30 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
Page 31 of 35
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
Page 32 of 35
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
Page 33 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
Page 34 of 35
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.
Page 35 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
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