Energy summit: the way forward

New business models needed to:

1. Diversify income streams present in population

2. Develop service charges which include cross-subsidisation costs that are cost-reflective

3. Improve credit control systems and management of debt 4. Address technical and non-technical challenges 5. Efficiently utilise assets and infrastructure

5. Operational costs to be reduced through workable systems

Themes that emerged from energy summit

1. An enabling environment

- Constitutional and legislative clarity, industry structure

and market review/unbundling

- Redesigned policy framework

- Funding

- Tariff determination.

2. Customer-centricity

- Focus on cost-effective services

- Social compact stance

- Implement municipal authority

- Improve on services for the poor

- Small-scale embedded electricity generation to improve

the number of players in sector.

3. Efficient operations

- Benchmarking and reliable data to be collected - Changing the business model for effective execution - Revenue realisation to materialise, as determined by

findings

- Effective asset management and control

- Cost containment

4. Collaborative leadership chain There is a need for collaboration throughout the value

Cogta, departments of energy, public enterprises and must hold discussions at highest level followed by Eskom and municipalities involved in collaborative efforts

- followed by SMMEs’ participation and innovative

contributions

- followed by municipalities, Eskom, decision-makers

and the National Energy Regulator to capacitate - followed by transformation for black industrialists,

entrepreneurs and small businesses.

finance

laborative

5. New opportunities

- Renewable energy services - Power-trading among players - Mini-grids: solar photovoltaic/wind - Surcharge energy-related activities - Charging stations

- Smart and prepaid meters - Small-scale embedded power generation

- Waste to energy conversion

- Using infrastructure for other revenue generation - Servitudes and wayleaves to be paid by Eskom.

Key regulatory challenges that emerged

1. Centralisation of Policy Development: the energy plan is completed on a national scale with minimal input from local government.

2. Lack of horizontal policy alignment.

Current policies and regulations are not 100% aligned, thus limiting progress with no clear stance, as they are driven by many entities and there is no clear understanding.

3. Lack of vertical policy alignment

National level policies do not always integrate well with local functioning and regulations and objectives.

4. Lack of legal and regulatory procedures Adequate policies and procedures do not exist

5. Lack of innovation in policy development

The centralised policy needs to have a foundation which can be used to benchmark a large audience so that local level can be included.