Resource 49

EKURHULENI METROPOLITAN MUNICIPALITY
STATE OF ENERGY REPORT

TABLE OF CONTENTS
EXECUTIVE SUMMARY
LIST OF TABLES vi
LIST OF FIGURES viii
Abbreviations x
1. Background and introduction 1

1.1 Project objective 1
1.2 Structure of report 1
1.3 Introduction to EMM 1
1.4 Electricity network in EMM (GIS mapping) 5
1.5 Energy in South Africa 6
1.6 Methodology used 6
2. Legislation and regulation 8

2.1 Electricity legislation 8
2.1.1 General 8
2.1.2 Service level issues 8
2.2 National legislation and policy pertaining to energy 8
2.2.1 White Paper on Energy Policy (1998) and Renewable Energy (2003) 8
2.2.2 EDI Restructuring Bill (April 2003) 8
2.2.3 DME Draft Energy Efficiency Strategy (April 2004) 9
2.2.4 NER Regulatory Policy on Energy Efficiency and Demand Side
Management (EEDSM) for South African Electricity Industry (May 2004) 9
2.3 Other relevant national legislation 9
2.3.1 The Constitution of the Republic of South Africa Act No. 108 of 1996 9
2.3.2 Legislation on municipal governance 10
2.3.2.1 Municipal Systems Act 10
2.3.2.2 Municipal Structures Act 10
2.3.2.3 Municipal Finance Management Act 10
2.3.3 National Environment Management Act, 107 of 1998 10
2.3.4 Environment Conservation Act of 1989 10
2.3.5 Agriculture White Paper (1995) 10
2.4 International legislation 10
2.4.1 United Nations Framework Convention on Climate Change (UNFCCC) 10
2.5 Provincial and municipal legislation 11
3. Data acquisition 12
Ekurhuleni State of Energy Report, November 2004 i

3.1 Data sources 12
3.2 Supply side data 12
3.2.1 Liquid fuel 12
3.2.2 Electricity 13
3.2.3 Pipeline gas 13
3.2.4 Renewable energy and energy efficiency 13
3.3 Demand side data 13
3.3.1 Energy carriers 13
3.3.1.1 Liquid fuels 13
3.3.1.2 Pipeline gas 13
3.3.1.3 Electricity 13
3.3.1.4 Coal 14
3.3.1.5 Biomass 14
3.3.2 Energy users 14
3.3.2.1 Households 14
3.3.2.2 Industry and Construction 16
3.3.2.3 Mining and Quarrying 16
3.3.2.4 Commerce 16
3.3.2.5 Local Government 16
3.3.2.6 Agriculture 16
3.3.2.7 Transport 16
3.4 Data Quality, Availability and Validity 17
3.5 Study Constraints 20
3.5.1 Liquid Fuels 20
3.5.3 Environment and Air Quality 20
4. Energy balance 22
4.1 Energy balance in physical terms 22
4.2 Conversion factors 22
4.3 Energy balance 23
4.4 Conclusions from Energy Balance 23
5. Energy demand 25
5.1 Overall demand 25
5.2 By Energy Carrier 25
5.2.1 Liquid Fuels 25
5.2.2 Piped Gas Consumption in Ekurhuleni 27
5.2.3.1 Connection Profile 28
5.2.3.2 Consumption Profile 29
5.2.3.3 Prepaid and credit metering systems 31
5.2.3.4 Trends in new connections in EMM 32
5.2.3.5 Electricity sales related to Gauteng and South Africa 33
5.2.4 Coal 35
5.2.5 Biomass 35
5.2.5.1 Animal dung 35
5.3 By energy users 35
Ekurhuleni State of Energy Report, November 2004 ii

5.3.1 Household profile 35
5.3.1.1 Discrepancy between national census and EMM
statistics 36
5.3.1.2 Domestic energy consumption in EMM 37
5.3.1.3 Low-income household energy use 38
5.3.1.4 State of Electrification 38
5.3.1.5 Key demographic characteristics of Ekurhuleni 40
5.3.1.6 Household Energy Use 43
5.3.1.7 Energy user profile 44
5.3.1.8 Energy costs 46
5.3.1.9 Best mix of energy and appliances 46
5.3.1.10 Policies and programmes 47
5.3.1.11 Trends and developments 47
5.3.1.12 Major gaps, constraints and issues 47
5.3.2 Industry and construction 47
5.3.3 Mining and quarrying 48
5.3.4 Commerce 49
5.3.5 Local government 49
5.3.6 Agriculture 49
5.3.7 Transport sector 49
5.3.7.1 Historical spatial planning 49
5.3.7.2 Road network 50
5.3.7.3 Rail transport 50
5.3.7.4 Bus transport 53
5.3.7.5 Mini-bus taxi service operations 54
5.3.7.6 Road based private transport 54
5.3.7.7 Johannesburg International Airport 55
5.3.7.8 Energy use 55
5.3.7.9 Current developments and plans 55
5.3.7.10 Energy efficiency in transport 57
5.3.7.11 Gaps, constraints and issues 57
5.4 Constraints and issues 57
6. Energy supply 58
6.1 Liquid fuels 58
6.1.1 Supply chain 58
6.1.2 Distribution and Marketing of Liquid Fuels 59
6.1.2.1 Distribution and Retail of Petrol and Diesel 59
6.1.2.2 Distribution and Retail of Illuminating Paraffin 59
6.1.2.3 Distribution and Retail of LPG 60
6.1.3 Petrol and Diesel 60
6.1.4 Illuminating Paraffin 61
6.1.5 Liquefied Petroleum Gas (LPG) 61
6.1.6 Policy and regulatory context 62
6.1.7 Liquid fuel pricing 62
6.1.7.1 Petrol, Diesel and IP Prices 63
6.1.7.2 LPG Price 63
6.1.7.3 Illuminating paraffin price 64
6.1.8 Trends and developments 64
6.2 Pipeline gas 65
6.2.1 Developments at the national level 65
Ekurhuleni State of Energy Report, November 2004 iii

6.2.2 Piped gas in EMM 65
6.2.4 Pricing 66
6.3 Electricity 67
5.3.1 Supply purchases 67
6.3.2 Tariffs 67
6.3.3 Income profile 69
6.3.3.1 Consumption and billing profile by Customer Care
Centres (CCCs) 69
6.3.4 Trends and Developments 70
6.3.4.1 Formation of the REDs 70
6.3.4.2 Energy Efficiency and Demand Side Management (DSM)70
6.3.4.3 Electricity projects planned 71
6.3.4.4 Local/independent generation 71
6.3.4.5 Meter verification 71
6.3.4.6 Illegal connections 71
6.3.4.7 Vandalism 71
6.3.5 Gaps, constraints and issues 73
6.4 Coal 74
6.5 Renewable energy 74
6.5.1 Traditional biomass energy 75
6.5.2 Woodfuel 75
6.5.3 Modern renewable energy 75
6.5.3.1 Solar power 75
6.5.3.2 Biogas energy 76
6.5.3.3 Employment Potential for Renewable Energy 79
6.5.4 Policy imperatives for renewables 80
6.5.4.1 Focus of the Renewable Energy White Paper 80
6.5.4.2 Draft renewable energy strategy 81
6.5.5 Information and data gaps 81
6.5.6 Pricing 82
6.6 Energy Efficiency in EMM 82
6.6.1 Overview of the energy efficiency objectives 82
6.6.1.1 Targets 83
6.6.2 Energy efficiency programmes in EMM 83
6.6.2.1 Efficient Compact Fluorescent Lamp (CFL) 83
6.6.2.2 Residential load management 84
6.6.3 EE business in EMM 84
6.6.4 Information and data gaps 84
6.6.5 Future trends in REEES 84
7. ENVIRONMENTAL/HEALTH ISSUES RELATING TO ENERGY IN EMM 86

7.1 Introduction 86
7.1.1 Emissions 86
7.1.2 Potential impacts of energy on environmental change 87
Ekurhuleni State of Energy Report, November 2004 iv

7.2 Electricity related environmental and health issues 87
7.2.1 PCBs 87
7.2.1.1 Recommendations 87
7.2.2 Electromagnetic fields 87
7.2.2.1 International Agency for Research on Cancer (IARC) 88
7.2.2.2 EPRI/California Department of Health Services/US
Dept of Energy 88
7.2.2.3 World Health Organization 88
7.2.2.4 CIGRÉ 88
7.2.2.5 Recommendations 89
7.3 Pressures on air quality 89
7.3.1 Air quality impacts 89
7.4 Sources of emissions within EMM 90
7.4.1 Industry – scheduled processes (including power generation) 91
7.4.2 Industry – non scheduled processes, light industry 92
7.4.3 Transport 92
7.4.4 Households 93
7.4.5 Mining 93
7.4.6 Waste sites 94
7.5 Human health 94
7.6 Information and data gaps 94
7.6.1 International trends in data requirements 94
7.7 Issues relating to energy and EMM’s environment 95
8. State of energy 96
8.1 Service delivery framework 96
8.2 Issues 97
8.2.1 Geoeconomic dynamics 97
8.2.1.1 Agriculture 97
8.2.1.2 Industry 97
8.2.1.3 Transportation 97
8.3 Identification and prioritisation of energy issues in EMM 98
8.4 Conclusions and recommendations 105
8.4.1 Conclusions 105
8.4.2 Recommendations 105
8.4.2.1 Electricity 105
8.4.2.2 Liquid fuels 106
8.4.2.3 Environmental issues 106
Ekurhuleni State of Energy Report, November 2004 v

LIST OF TABLES
Table 1 EMM Customer Care Centres and Eskom Direct Supply ..................... 2
Table 2 EMM electrical network – Eskom intake points and main substations.. 5
Table 3 Pre-research analysis of energy end-use in Ekurhuleni ...................... 7
Table 4 Survey results - energy use patterns in Ekurhuleni households .........16
Table 5 Source and level of disaggregation of data......................................18
Table 6 Energy balance for EMM in physical units, 2003...............................22
Table 7 Energy conversion factors ..............................................................23
Table 8 Energy balance for EMM, GJ in 2003...............................................23
Table 9 EMM energy demand related to the RSA total (TJ)...........................25
Table 10 Regional and national use of liquid fuels, kl 2003.............................26
Table 11 Consumption of liquid fuels per municipality, kl in 2003 ...................27
Table 12 Number of electricity customers by category ...................................29
Table 13 Overview of electricity sales by category of customer.......................29
Table 14 Average electricity consumption per customer class .........................30
Table 15 Eskom Large Power Users within the EMM boundary .......................30
Table 16 Electricity sales per municipality, 2003 ............................................31
Table 17 Comparison of electricity sales in EMM, Gauteng and South Africa ....35
Table 18 Energy source for lighting and cooking in EMM in 2001 ....................37
Table 19 Energy usage in lower income groups.............................................38
Table 20 Energy usage for lighting in Ekurhuleni ...........................................38
Table 21 Comparative prices of household energy carriers in Ekurhuleni, 2004 40
Table 22 Education profiles for Ekurhuleni ....................................................41
Table 23 Employment status for Ekurhuleni residents ....................................41
Table 24 Household energy use by carrier ....................................................44
Table 25 Estimated average energy carrier costs for Ekurhuleni .....................46
Table 26 Estimated costs of various energy carriers in the Ekurhuleni domestic
area .............................................................................................46
Table 27 Acceptance Matrix for Energy/Appliance Combinations.....................47
Table 28 Energy costs in the Ekurhuleni metals sector...................................48
Table 29 EMM mining electricity consumption profile .....................................48
Table 30 Rail passenger traffic in EMM .........................................................51
Table 31 Intersite electricity payments for railway operation ..........................52
Table 32 Energy consumption at Johannesburg International Airport ..............55
Table 33 National and EMM use of energy in the transport sector, TJ in 2001 .55
Table 34 Marketing of the different liquid fuels in EMM, kl in 2003..................59
Table 35 Comparison of LPG consumption in emerging economies .................60
Ekurhuleni State of Energy Report, November 2004 vi

Table 36 Sectoral Demand for Illuminating Paraffin in Ekurhuleni ...................61
Table 37 Prices for liquid fuel products, 2003................................................63
Table 38 Price build up from supply to end-use.............................................64
Table 39 Supply of Pipeline Gas in 2003 .......................................................66
Table 40 Price of Sasol Gas in 2003..............................................................66
Table 41 Electricity purchases in 2003 ..........................................................67
Table 42 Summary of EMM electricity tariffs in 2004, excluding VAT. ..............68
Table 43 Billing profile.................................................................................69
Table 44 Electricity sales per municipality, 2003 ............................................70
Table 45 Solid waste quantities handled at EMM landfills from June 2002 to June
2003 (EMM 2003) .........................................................................77
Table 46 Possible LFG projects at the EMM (Pieterse 2003)............................78
Table 47 South Africa’s energy efficiency targets...........................................83
Table 48 Technical comparison between the 60-Watt incandescent lamp and the
15-Watt CFL .................................................................................84
Table 49 Summary of estimated contributions to air emissions by source type in
the Southern SDR .........................................................................91
Table 50 Estimated emissions of priority pollutants emitted by scheduled
processes .....................................................................................92
Table 51 Identification and prioritisation of energy issues in EMM...................99
Ekurhuleni State of Energy Report, November 2004 vii

LIST OF FIGURES
Figure 1 Municipalities in Ekurhuleni Metropolitan Municipality........................ 3

Figure 2 Energy flow from primary energy supply to final use......................... 6
Figure 3 Distribution of household incomes in Ekurhuleni (2001) ...................15
Figure 4 Correlation between household income and lighting energy source ...15
Figure 5 Consumption of Liquid Fuels in South Africa 1992-2001 ...................26
Figure 6 Heavy furnace oil consumption in Ekurhuleni 1994-2003 ..................27
Figure 7 Pattern of Piped Gas Usage in Ekurhuleni......................................28
Figure 8 Residential credit and prepaid meter installations in EMM.................32
Figure 9 Trend in power connections in major municipalities .........................33
Figure 10 Racial Distribution in Ekurhuleni, No. of Persons ..............................40
Figure 11 Age distribution in gender categories in the Ekurhuleni area.............41
Figure 12 Income distribution in the Ekurhuleni area ......................................42
Figure 13 Income distribution in Ward 39 ......................................................42
Figure 14 Income distribution in Ward 76 ......................................................43
Figure 15 Types of housing in the Ekurhuleni area .........................................43
Figure 16 Classification of fuel usage for cooking by race................................44
Figure 17 Classification of fuels for heating by race ........................................45
Figure 18 Classification of fuels for lighting by race ........................................45
Figure 19 Consumption of power paraffin in Ekurhuleni ..................................49
Figure 20 Scheme of the EMM transport model ..............................................56
Figure 21 Industry structuring and market share of LPG .................................58
Figure 22 A typical complex paraffin distribution chain....................................60
Figure 23 Sectoral Distribution of LPG in Ekurhuleni........................................62
Figure 24 Composition of the Retail Price of Petrol and the Wholesale Price for
Diesel and IP in Gauteng for the period 01/09/2004 30/09/2004 ......63
Figure 25 Potential in different renewable energy technologies (RETs).............80
Figure 26 Service Delivery Framework ...........................................................96
Ekurhuleni State of Energy Report, November 2004 viii

LIST OF PHOTOS
1 Effects of vandalism at the Van Eck substation in Brakpan Customer Care

Centre
2 Closeup of vandalism at Van Eck substation (11kV cable was stolen)
3 Tragic consequences of illegal access to electricity lines
Ekurhuleni State of Energy Report, November 2004 ix

ABBREVIATIONS
DME Department of Minerals and Energy
DSM Demand side management
EMM Ekurhuleni Metropolitan Municipality
GDP Gross domestic product
GGP Gross geographic product
IDP Integrated development plan
IEA International Energy Agency
IP Illuminating paraffin
IPP Independent Power Producer
KMC Kyalami Metropolitan Council
LDV Light delivery vehicle
LPG Liquid petroleum gas
NER National Electricity Regulator
RE Renewable Energy
EE Electrical Energy
RED Regional Electricity Distributor
SARCC South African Rail Commuter Corporation
SUV Sports utility vehicle
Ekurhuleni State of Energy Report, November 2004 x

EXECUTIVE SUMMARY
Ekurhuleni State of Energy Report, November 2004 ES-1

1. BACKGROUND AND INTRODUCTION
1.1 Project objective

This Report has been prepared at the request of the Ekurhuleni Metropolitan Municipality
(EMM), in preparation for the development of an Energy Strategy within the municipality.
The aim of the project is to provide a status report on the use of energy in EMM, which
includes an assessment of the type of data available relating to energy supply and demand
by energy carrier and by energy user.
1.2 Structure of report
This report first provides a background to EMM, giving a brief overview of its organization
into Service Delivery Regions and Areas as well as its overall demographic and economic
profile. This section also provides a short discussion on energy in order to put the reader
in context. The second section provides a thorough review of legislation and regulation
pertinent to energy in South Africa and in Ekurhuleni, in order to give a full picture of the
enabling environment. The third section provides an overview of the sources of data and
the validity and quality of data collected for each component of the Report. Section 4 then
provides an energy balance as an overview of energy use by energy carrier, by users
(demand sectors) and supply. Sections 5 and 6 detail energy demand by carrier and user
and energy supply by carrier respectively. Section 7 provides a thorough assessment of
environmental issues relating to energy in EMM. Section 8 then presents a detailed
discussion on the State of Energy in EMM, integrating the observations from the previous
sections and providing conclusions and recommendations for future action by EMM in
support of the preparation of a detailed Energy Strategy.
A GIS representation of EMM’s electrical network is appended to this report.
A six-volume compendium of documents and data collected during preparation of this
report is also included.
1.3 Introduction to EMM

The Ekurhuleni Metropolitan Municipality (EMM) was formed in 2000 and is the fourth
largest municipality in South Africa. Ekurhuleni is situated in the Gauteng province to the
east of Johannesburg and south of Tshwane. It used to be known as the East Rand and
consisted of of nine separate municipalities. EMM has united the eleven previous councils
into one local government structure to meet the needs of the community. These
municipalities were:
Alberton
Benoni
Boksburg
Brakpan
Germiston
Kempton Park/Tembisa
Edenvale
Nigel
Springs
Khayalami Metropolitan Council
Ekurhuleni State of Energy Report, November 2004 1

Eastern Gauteng Services Council (EGSC)
Following the consolidation into EMM, there are currently eleven municipalities organized
into three Service Delivery Regions. For electricity service delivery, nine of these
municipalities are now designated as Customer Care Centres (CCCs), as shown in Table 1
Some customers within the EMM boundary are directly supplied by Eskom, while some are
supplied by Eskom through a wheeling arrangement with EMM, whereby Eskom supplies
the EMM suburb which then transfers the power through its own infrastructure to an
Eskom substation, from which the local community is directly supplied. The specific
townships within the various regions supplied by EMM and Eskom directly are reflected in
Table 1. The Eskom supply points and major distribution lines from 132 kV down to 33 kV
are shown in the drawing appended to this report.
Table 1 EMM Customer Care Centres and Eskom Direct Supply

EMM
CUSTOMER CARE
RESPONSIBILITY ESKOM DIRECT SUPPLY
CENTRES
AREA
Eastern Region
Benoni Wattville, Etwatwa and Daveyton
Brakpan KwaThema Tsakane
Springs/Nigel Duduza
Southern Region
Alberton Thokoza
Boksburg
Germiston Dukathole Katlehong and Vosloorus
Norhern Region
Edenvale
Kempton Park
Tembisa
These are illustrated in Figure 1 overleaf.

Figure 1 Municipalities in Ekurhuleni Metropolitan Municipality
The area consists of about 192 355 hectares of land and is occupied by about 2,5 million
people occupying approximately 750 000 households. The budget of the metro was R7 269
billion in 2002/3. The capital budget was R726 million1.
EMM’s main employment sectors are:
• Manufacturing (115 739 jobs)
• trade (95 043)
• social services (92 877)
• business services (75 397)
• transport (57 502)
• construction (44 726)
• mining (19 836)
• farming (6 469)
• utilities (2 493).
EMM is responsible for some 23% of the Gross Geographic Product of Gauteng with the
inputs of some 33 000 business entities, including 8 000 industries, over 5 000 supporting
enterprises and a bustling commercial sector. EMM is an entity of globally competitive
business and industry. This prolific growth led to the natural confluence of towns and cities
that progressed to one of only seven metropolitan areas within South Africa. The mining
boom that led to the emergence of the then East Rand also prompted the growth of a
1
Gafney’s Official Yearbook, Local Government in South Africa, 2002-2004, page 282.

substantial manufacturing support base, particularly in terms of metal production and
engineering.
The EMM area is characterized by a well-established industrial base aligned, in an east-
west fashion along the Germiston-Springs axis and in a north-south fashion along an
Alberton-Kempton Park axis. The east-west axis tends to include older, heavier industries,
such as steel, whereas the north-south axis contains more high-tech Industries. Typical of
such developments is the Longmeadow site, housing electronic and medical industries,
compared to the scrap metal and steel fabrication industries of the east-west axis.
EMMs vision2 is “The smart, creative and development city”. The focus on development is
clear in EMM’s mission statement “Ekurhuleni provides sustainable and people-centred
developmental services that are affordable, appropriate and of high quality. We are
focused on social, environmental and economic regeneration of our city and communities,
as guided by the principles of Batho Pele and through the commitment of a motivated and
dedicated team.”
EMM’s Integrated Development Plan (IDP) lists seven priorities (of which energy is not
one), but energy can be read into the components of at least four of them. It is important
to note the EMM used an extensive consultation process with communities to establish
what their needs are. In order of importance they are:
Roads;
Fighting poverty;
Safety and security;
Economic development projects; and
Storm water management.
The business community raised the following issues that understandably differ extensively
from those of residents:
Safety and security;
Urban renewal and unregulated street trading;
Informal settlements;
Land invasion;
Infrastructure maintenance;
Financial assistance to SMMEs;
Need for improved communication; and
Local procurement.
In connection with energy, the IDP also identifies that:
62.5% of the capital budget of more than R1 billion in 2003/04 is spent on
infrastructure services of roads, storm water, electricity, water, sanitation and solid
waste;
all rates and tariffs were made equal across the municipality in 2003/04;
50 kWh of electricity per month is provided free to all households at a cost of about
R63 million.
2
EMM, Integrated Development Plan, 2003-2007, Pocket Guide.

1.4 Electricity network in EMM (GIS mapping)
The EMM network drawing appended to this report was compiled from extensive inputs
from EMM Customer Care Centres (CCCs), as no single integrated GIS representation of
EMM’s electricity network is yet available in the municipality. Drawings indicating the main
substation location information (i.e. Eskom intakes, and e.g. 132kV/33kV substations) were
obtained from senior managers of the individual CCCs in DWG format or hard copy for
incorporation into the GIS mapping. One CCC, Alberton, still works with sepia drawings as
they have very limited computer facilities, while others use advanced computer aided
drafting packages.
For the purposes of preparing the appended drawing, the DWG drawings were converted
into shape files while the hard copy drawings were scanned and converted into Shape files
to reflect the EMM network. It is our understanding that there are plans to integrate
EMM’s GIS systems in conjunction with a significant investment in computer-aided drafting
hardware and software.
Table 2 indicates the number of Eskom intake points and main substations per CCC
Table 2 EMM electrical network – Eskom intake points and main substations
NUMBER
CUSTOMER CARE ESKOM MAIN SUBSTATION
CENTRES INTAKE SUBSTATIONS SIZE (kV)
POINTS
Eastern Region
Benoni 2 9
Brakpan
Springs/Nigel 3 20 22/ Supertension
Southern Region
Alberton 3 10 33/
Boksburg
Germiston 6 18 132/
4 42/
Northern Region 6 4 33/11
2 44/11
3 44/6.6
5 66/11
3 88/11
1 88/33
1 88/66/11
1 132/11/6.6
2 132/66

1.5 Energy in South Africa
Energy in South Africa is dominated by electricity and liquid fuels supply and transport, the
former mainly generated through the burning of coal in large coal-fired plants. The
economy is considered energy intensive in comparison to other emerging economies. Due
to the diversity of socio-economic groups in South Africa, there is still significant diversity in
the role of energy in the life of ordinary South Africans. As a result of a significant drive
over the last ten years to achieve access to electricity by all South Africans, the country
now has an access rate of over 70%, and is continuing to connect some 300 000
households each year. However, many South Africans, especially those in the poorer
income groups and those below the poverty line, still make use of more traditional fuels for
heating, cooking and lighting.
Figure 2 provides a high level overview of the energy conversion process from supply to
carrier in South Africa.
Figure 2 Energy flow from primary energy supply to final use – roughly to scale
Primary Supply Conversion Transport Carrier
Source: DME Integrated Energy Plan, March 2003
1.6 Methodology used

The complexity of the state of energy at Ekurhuleni necessitated the application of different
methodological approaches.
At the outset, the team’s approach was to assess Ekurhuleni from an energy demand
perspective, to establish the structure, characteristics and profile of the energy market.
This implied the analysis of different demand sectors and their sub-sectors to determine
the end uses of energy sources within the municipality. These sub-sectors were then
correlated with the different energy supply options. The outcome of this analysis was a
picture of multiple fuel use by different sub-sectors. From the analysis of supply options, it
was possible to determine the sources of information per each energy source.

Table 3 Pre-research analysis of energy end-use in Ekurhuleni
DEMAND SOURCES OF
SUB CATEGORIES SUPPLY OPTIONS
SECTORS INFORMATION
Households Formal, Hostels, Electricity, IP, Coal, DBSA, StatsSA, IDP,
Informal, Peri-urban, Biomass, Solar, LM, EMM Electricity
Farm-workers units Petrol, Candles, Dept, Eskom, NER,
Batteries SAPIA, LPGSA, DME
Transport Rail, Road, Aviation Electricity, Petrol, StatsSA, EMM, SAPIA,
Diesel, Gas (lifting LPGSA, Transnet,
crane), AVGAS/ Spoornet, Metrorail,
AVTUR, Coal Gautrans, Taxi
Associations, Bus
Companies
Industries Mining, Light & Coal, Piped Gas, Coal, Mines, EMM
Heavy LPG, Electricity, Coal, Gascor, SAPIA,
Manufacturing, Renewables, All SASOL, SESSA, LED
Processing & Liquid fuels EMM Electricity,
Packaging Eskom
Commerce Tourism, Trading, Coal, Piped Gas, As above
Services LPG, Electricity,
Renewables, All
Liquid fuels
Agriculture Commercial, Non- Diesel, Elect, IP, SAPIA, LPGSA,
Commercial Petrol, Renewables Eskom, EMM, SESSA,
NER
Government Buildings, Street Electricity, Diesel, EMM, Provincial,
Infrastructure Lighting, Vehicle Coal, ERWAT, RandWater
Fleet, H2O pumping
& Treatment,
Sewerage Treatment
Crosscutting Gender & Race, Environment, Air Quality, Energy Efficiency, Health &
issues Safety, Governance, Integrated Energy Planning (IEP), Renewable
Energy (RE)

2. LEGISLATION AND REGULATION
Most aspects of South Africa’s energy sector are addressed by legislation and regulation.
Electricity and liquid fuels are the subject of the most significant legislative and regulatory
coverage, as outlined in the following sections.
2.1 Electricity legislation

2.1.1 General
The electricity sector is governed by the Electricity Act (Act 41 of 1987, as amended). The
Electricity Act describes the licensing of undertakings for the generation and supply of
electricity, and the control over these functions. It deals with the setting and approval of
electricity tariffs and conditions of supply. The Act states that the sale and supply of
electricity within the area of jurisdiction of a local authority, shall (with some exceptions)
be under the control of that authority. Here, the Act confirms the allocation of electricity
reticulation as an exclusively local authority competence in the Constitution (Act 108 of
1996, Schedule 4, Part B).
The Act furthermore describes the functions and powers of the National Electricity
Regulator. The NER is tasked to exercise control over the electricity supply industry so as
to ensure order in the generation and efficient supply of electricity. Its tasks include tariff
approvals and the setting of supply and service standards.
The Act, in Section 27, also establishes the illegality of theft of electricity.
2.1.2 Service level issues

Service levels are dealt with under the national supply regulations (NRS) issued by the
NER. The NRS 047 is the quality of service standard (i.e. it regulates the relationship
between customers and the licensees). The NRS 048 is the quality of supply standard
(covering quality of supply parameters and minimum standards to be applied as measures
of power quality at the point of supply to end consumers).
2.2 National legislation and policy pertaining to energy

2.2.1 White Paper on Energy Policy (1998) and Renewable Energy (2003)
The policy recognises the need to reduce fuelwood as well as the over harvesting of
natural resources which result in environmental degradation, soil erosion and
desertification.
2.2.2 EDI Restructuring Bill (April 2003)

The EDI Restructuring Bill was published in April 2003. The Bill provides for the
establishment a national framework for the restructuring of the distribution industry, the
creation of regional electricity distributors, and the management of the restructured
electricity distribution industry.
The Bill followed the Restructuring Blueprint issued by the Department of Minerals &
Energy in 2001. The Blueprint sets out the objectives with the restructuring of the RSA
EDI. It further addresses some of the pertinent issues with respect to RED formation and
transfer of resources to REDs.

2.2.3 DME Draft Energy Efficiency Strategy (April 2004)
The draft document is the first energy efficiency strategy for South Africa. It takes its
mandate from the White Paper on Energy Policy and links energy sector development with
national socio-economic development plans. It provides specific targets for reduction in
energy demand by 2014 within given demand sectors, with an overall target of 12%
reduction in consumption.
2.2.4 NER Regulatory Policy on Energy Efficiency and Demand Side

Management (EEDSM) for South African Electricity Industry (May 2004)
This policy sets annual EEDSM targets and specifies the programmes that would qualify for
EEDSM funding. Eskom is obliged to ensure that these targets are met, and all metros in
South Africa are obliged to incorporate EEDSM in their planning and to ensure EEDSM
implementation. The policy describes the regulatory mechanisms to be implemented by
the NER and outlines the following:
Access to funding
Administration of funds
Assets ownership
Development of EEDSM plans
Establishment of the Energy Agency in the future
Obligation of the future REDs to implement EEDSM to all end-users through ESCOs
(Energy Services Companies)
The requirement of licensees (distributors) to create awareness (advertise benefits) of
EEDSM among customers and offer time-of-use tariffs to all industrial and commercial
customers.
2.3 Other relevant national legislation

2.3.1 The Constitution of the Republic of South Africa Act No. 108 of 1996
The Constitution of South Africa is relevant because it is the supreme law of the Republic
and the obligations imposed by it must be fulfilled (RSA 1996).
Schedule 4B of the Constitution states that electricity reticulation is an exclusive local
government function.
In terms of Section 24, all South Africans have the right:
To an environment that is not harmful to their heath or well-being; and
To have the environment protected, for the benefit of present and future generations,
through legislative and other measures that-
i. Prevent pollution and ecological degradation;
ii. Promote conservation; and
iii. Secure ecologically sustainable development and use of natural resources while
promoting justifiable economic social development.

2.3.2 Legislation on municipal governance
Apart from EDI and electricity sector-specific legislation, electricity supplying local
authorities are subject to various Acts relevant to local authorities in general.
2.3.2.1 Municipal Systems Act

Section 11(2) provides that a municipality exercises its authority by amongst others
providing municipal services to the local community itself (11(2)(f)), or by appointing
appropriate service providers in accordance with the criteria and process set out in Section
78. Section 78 requires a LA to review its delivery of a service to determine whether it is
more feasible to continue in-house delivery or to outsource the service in some manner.
Section 77 prescribes seven situations or circumstances when the municipality is obliged to
(i.e. ‘must’) consider the appropriate service delivery options. Section 76 provides that a
municipality may provide a municipal service through an internal or external mechanism.
2.3.2.2 Municipal Structures Act

Section 83 refers to Municipalities’ rights as those determined in Sections 156 and 229 of
the Constitution (i.e. that electricity and gas reticulation are municipal functions, and that
surcharges may be levied on fees for services provided by or on behalf of the municipality
and that such surcharges may be nationally regulated).
2.3.2.3 Municipal Finance Management Act

Section 13 regulates the disposal of capital assets, and Section 14 municipalities’ interests
in companies and other entities. Chapter 9 of the Act deals with various matters related to
municipal entities.
2.3.3 National Environment Management Act, 107 of 1998

The purpose of NEMA is to give effect to the management of the environment articulated
in the White Paper on Environmental Management Policy which resulted from the
Consultative National Environmental Policy Process (CONNEPP). It gives effect to the
principle of co-operative governance and the environmental rights enshrined in the new
Constitution. This Act provides the framework for environmental policy in South Africa, and
addresses such issues as air, water and marine pollution, deforestation, energy efficiency
and the conservation of biodiversity.
2.3.4 Environment Conservation Act of 1989

The Act aims to ‘provide for the effective protection and controlled utilization of the
environment’. Section 2 of the guideline document describes activities which might have a
detrimental impact on the environment, and which therefore require an environmental
assessment.
2.3.5 Agriculture White Paper (1995)

The White Paper emphasises the promotion of agricultural development, which is
dependent on the protection of land and water resources.
2.4 International legislation

2.4.1 United Nations Framework Convention on Climate Change (UNFCCC)
To tackle the problem of climate change 93 countries including South Africa have ratified
the Kyoto Protocol (UNFCCC 2004). This is a legally binding commitment to constrain GHG
emissions which was adopted under the UNFCCC. Therefore many countries have begun
adopting measures to reduce their emissions. South Africa ratified the UNFCCC in 1997 and
acceded to the Kyoto Protocol in 2002.
At present South Africa has a policy on global climate change which has recognised that as
economic growth and development occurs so to will emissions. The utilisation of Clean

Development Mechanism (CDM) and opportunities for technology transfer will play an
important role in assisting with the transition to lower greenhouse gas emissions (UNFCCC
2004).
2.5 Provincial and municipal legislation

No provincial or municipal legislation was identified having a direct bearing on the
development of an Energy Strategy for Ekurhuleni.

3. DATA ACQUISITION
3.1 Data sources

For the initial data collection phase, data has been gathered from a variety of sources:
Liquid fuel, pipeline gas and electricity data was obtained in spreadsheet form from
the supplier databases. The data was then recast into the different sectors of use
of the specific type of energy. In most cases this process is clear and direct, in
others some interpretation or the use of expert assumptions is required.
Processed/published data for total energy use, costs, sources and efficiency of
energy supply.
Electricity data was supplied by the EMM Electricity Department and Eskom Benoni
Regional Office. Further electricity information and data was obtained from EMM’s
submission to the NER, as well as published data on the Department of Minerals
and Energy’s website.
Review of energy legislation and regulation and review of environmental impacts,
with an emphasis on air quality and CO2 emissions.
Most information for Renewable Energy (RE) and Energy Efficiency (EE) was
gleaned from Eskom DSM and Bonesa. Other information was obtained through a
literature search on landfill potential to generate renewable energy.
a review of similar reports such as City of Cape Town State of Energy Report and
the Strategic Review of Energy Information (for the industrial sector) for the EU,
prepared by J A Basson of the Team in 1998. Included was the review of relevant
published energy information.
The environment information is mainly derived from the State of Environment
Report and Energy Information Administration. Other sources of information are
Clean Development Mechanisms, United Nations Framework Convention on Climate
Change, Environmental Impact Assessment and World Resources Institute.
Local Government Institutions, transport and the related energy use data was
obtained by emailing and/or faxing a one page questionnaire to respective
department heads and managers of these institutions. (Local Government
institutions approached were the following: LED (Wits Study), Health, Fleet
(municipal bus services and local government fleet), South African Police Services,
Ekurhuleni Metro (Traffic) Department, Public Works, Education and Housing.
Transport institutions approached include the following, ACSA, Intersite, Metro Rail,
Taxi Association, etc. Other information was obtained from the Stats SA –2001
Census report.
3.2 Supply side data

3.2.1 Liquid fuel
The oil companies that are active in the distribution of liquid fuel collect their sales data on
a monthly basis per magisterial district and fuel type. It is centralised in a database that is
maintained by Caltex, the company responsible for national statistics. An extract from this
database for 2003 for the eight magisterial districts that to a great extent make up
Ekurhuleni was provided to the Africon team by Caltex and was used as the basis for liquid
fuel data in the energy balance and sectoral use of liquid fuels. A small discrepancy arises
with respect to the data boundaries which is not significant, but which is noted for the
purposes of this study.

3.2.2 Electricity
Eskom supplies electricity to EMM. The Benoni regional office of Eskom supplied their
data. EMM has no generation facilities. No IPPs or cogeneration plants are as yet
operational within EMM.
3.2.3 Pipeline gas

Pipeline gas is distributed directly by Sasol gas by means of a medium pressure pipeline
and exclusively to larger industrial consumers. Sales data for 2003 was obtained directly
from the marketing office of Sasol Gas as given in Section 6.2.
3.2.4 Renewable energy and energy efficiency

Renewable and energy efficiency information come mainly from processed information by
Eskom DSM and Bonesa. The latter has recently released a report outlining the energy
efficient activities undertaken in major parts of the country including Ekurhuleni. However,
information specific to EMM was difficult to isolate.
3.3 Demand side data

Demand consists of:
actual consumption
suppressed demand (for electricity, consumption which would have occurred if load
shedding had not taken place)
latent demand (demand which is not converted to consumption due to constraints in
availability of the product or ability of the market to purchase the product).
These next sections generally deal with actual consumption, except where otherwise
specified.
3.3.1 Energy carriers
3.3.1.1 Liquid fuels

No independent demand data was available, so for the purposes of this study, demand is
considered equal to supply. Further studies should examine losses in the supply chain and
assess areas where demand may be suppressed due to distance from supply.
3.3.1.2 Pipeline gas

No independent demand data was available, so for the purposes of this study, demand is
considered equal to supply. Further studies should examine losses in the supply chain and
assess areas where demand may be suppressed due to distance from supply.
3.3.1.3 Electricity
Demand was assessed in terms of consumption, i.e. electricity billed by EMM and Eskom to
consumers.
The electricity distribution license is held by EMM, although Eskom is also directly involved
in the supply of electricity to some locations in the EMM boundary. Eskom mainly supplies
Large and Small Power Users (mining, commerce, agriculture and industry and certain
townships i.e. Daveyton, Etwatwa, Wattville, Duduza, Katlehong and Tsakane) and certain
key consumers in mines and industry. The key consumers are distinguished by their
reactive power consumption, measured in KVA.
The study entailed discussions and collecting documents and information from senior
managers of the EMM Electricity Business, the individual municipalities and Eskom
Customer Service. The individual municipalities could only provide the consumption

information on a per tariff basis rather than on a per consumer basis. For the purposes of
this study, we have used the EMM submission to the NER on their sales of electricity during
2002 to determine the sales per customer basis for the period ending 1 January to
31 December 2003 (i.e. on a ratio basis). EMM data concerning specific demand sectors
(i.e. own consumption and streetlighting) was derived from EMM’s submission to the
National Electricity Regulator (NER) for 2002.
The information included in the report has been extracted from the following main sources:
Electricity supply and sales information for the 12 months ended 31 December 2003
from EMM;
Data from the municipalities’ financial systems for the 12 month ended 31 December
2003 (such as number of residential and non-residential consumers, consumption and
billing)
Electricity supply and sales information for the 12 months ended 31 December 2003
from Eskom;
The information above was reviewed but was not independently audited.
3.3.1.4 Coal
The data for coal was procured from merchants who supply coal in EMM for the period 1st
January to December 2003. The data provided was not independently verified.
3.3.1.5 Biomass
No data was received from for biomass, as it is mainly non-commercial and non-monetised.
It is necessary to institute a study in future to determine the consumption of biomass in
EMM. This is necessary as the unsustainable harvesting of woodfuel – a commonly used
biomass in rural communities – has an adverse impact on the environment.
3.3.2 Energy users

Please refer to Section 3.3.1.3 for electricity data collection on households, industry and
construction, mining and quarrying, commerce, local government, agriculture and
transport.
3.3.2.1 Households
The 745 000 households in Ekurhuleni have the income distribution, for 2001, shown in
Figure 3. Research into consumption patterns in the Ekurhuleni area suggests that a
transition from third to first world consumption patterns occurs at around the R38 000 per
annum household income level, in 2001. Typical of such trends is that of illuminating
energy as shown in Figure 4.
In 2001 some 70% of the Ekurhuleni households had an annual income of less than the
R38 000 level. The trend away from labour intensive agricultural and heavy industries
towards “higher-tech” capital-intensive industries suggests that households with incomes
above the “transitional level” are not likely to grow in proportion.

Figure 3 Distribution of household incomes in Ekurhuleni (2001)
Distribution of Household Incomes
180,000
160,000
140,000
Number of Households
120,000
100,000
80,000
60,000
40,000
20,000
0
0 7,201 28,801 115,201 460,801 1,843,201
Household Income (R/a)
Source: South African National Census, 2001
Figure 4 Correlation between household income and lighting energy source
Correlation Between Household Income and Lighting Energy Source
0.8
0.6
Correlation Coefficients
0.4
0.2
0
R1 - 4800 R4801 - 9600 R9601 - R19201 - R38401 - R76801 - R153601 - R307201 - R614401 - R1228801 - Over
-0.2 19200 38400 76800 153600 307200 614400 1228800 2457600 R2457600
-0.4
-0.6
-0.8
Household Income
Electricity Gas Paraffin Candles Solar Other None
A mini-household survey was carried out in the following areas:

KwaThema
Springs
Boksburg
Three categories of household were selected for the survey:
high income
low income

very low income.
The survey was administered through structured questionnaires and focus group
discussions. A total of 30 surveys were administered in June 2004. The original results are
provided in the Compendium.
The survey established the following energy use patterns.
Table 4 Survey results - energy use patterns in Ekurhuleni households

POOR URBAN POOR URBAN
WEALTHY HOUSEHOLDS HOUSEHOLDS
ACTIVITY
HOUSEHOLDS WITH WITHOUT
ELECTRICITY ELECTRICITY
Cooking Electric stoves and Coal or gas stoves _
ovens, microwave ovens
Lighting Incandescent/fluorescent Paraffin lamps, _
light bulbs, candles candles
Heating the home Electrical bar or oil _ Paraffin lamps
radiators
Heating water Electrical geysers, solar Few geysers Paraffin
water heaters installed
Refrigeration Electricity Electricity (some) _
Media appliances Electricity and batteries Electricity and Electricity and
(entertainment) batteries batteries
3.3.2.2 Industry and Construction

Non-electricity data for this demand sector was obtained from DME reports.
3.3.2.3 Mining and Quarrying

3.3.2.4 Commerce
3.3.2.5 Local Government

Various municipal departments were called and questionnaires faxed to elicit energy data
from them.Most of the data for local government energy usage was obtained from EMM’s
Department of Transportation. The electricity consumption for local government was
obtained from EMM’s submission to the NER.
3.3.2.6 Agriculture
Data for agricultural demand was obtained from DME reports.
3.3.2.7 Transport
Data for transport demand was obtained from DME reports. Transport data was obtained
from specific EMM departments with vehicle fleets and transport institutions associations
based and operating within EMM.

3.4 Data quality, availability and validity
Data availability varies, especially at a disaggregated level. Those energy carriers that are
supplied from centralised systems (electricity) or have centralised data systems (liquid
fuels) are in a position to supply detailed data. This data is collected per marketing channel
or tariff class that in many cases indicates the sector where the energy is used. Where this
is not the case this allocation has to be done on an expert basis and by interpreting the
liquid fuel data of SAPIA and the DME. The data is of good quality at the aggregated level
except for coal, LPG and IP where no centralised marketing or data system exists. It is
assessed that the inaccuracies that come from this situation are not material in terms of
the results, conclusions or priorities of this project.
Table 5 overleaf shows the level of disaggregation of the main data sets.

Table 5 Source and level of disaggregation of data
LEVEL OF DATA
DATA SET COMMENTS
DISAGGREGATION SOURCE
Electricity supply and sales Customer Care Centres EMM Electricity The billing system does not currently provide consolidated information, i.e.
information for the 12 months and tariff levels Department consumption and billing. This leads to potential errors in reporting both
ended 31 December 2003 consumption and revenues from electricity, which EMM staff are aware of.
(EMM) Furthermore, there is variable progress on digital representation of the
distribution network – some CCCs still work with sepia drawings, while others use
advanced computer aided drafting packages. There are plans to integrate EMM’s
GIS and financial reporting systems.
Electricity supply and sales Customer Eskom Benoni Includes Large and Small Power Users and Key consumers. Consumption level
information for the 12 months Regional Office per client is confidential for strategic reasons. There is still some uncertainty
ended 2003 (Eskom) over the number of customers, including households, commercial, industrial and
mining consumers.
Data from the municipalities’ Customer Care Centres EMM Customer Information submitted on a per tariff basis. We have used the EMM submission
financial systems for the 12 and tariff levels Care Centres to the NER on their sales of electricity during 2002 to determine the sales per
months ended 31 December customer basis for the period ending 1 January to 31 December 2003 (i.e. on a
2003 (from CCCs) ratio basis).
Liquid Fuels Magisterial districts Caltex The base data is of good quality and is valid for this application other than the
small discrepancy with the data boundaries as described in Section 3.2.1. A
small loss of quality occurs as a result of the assumptions in terms of allocating
the use of specific fuels to specific sectors. This effect is considered minor.
Coal Merchant Coal Merchants The major coal mining companies do not supply coal in EMM.
Piped gas Industrial sectors within Sasol Gas This data comes from one source and is used in one sector only. It is considered
EMM of good quality and fully valid. The names of individual consumers were not
provided.
LPG Provided by municipalities BP, Sasol Gas Other major companies supplying EMM did not provide any data for
within EMM confidentiality reasons.
Renewable Energy and Energy Provincial Eskom, Bonesa, There is not much data on RE and EE pertaining EMM since few initiatives are
Efficiency TSI undertaken. Industries are assumed to undertake their own EE initiatives, but
this was difficult to collect.

Environment and air quality - Johannesburg Metro EMM State of
emissions Environment
Report
Environment – health related General – not World Health Studies have been conducted internationally and results can be applied generally
disaggregated Organization, in EMM
International
Association for
Research on
Cancer, Cigré,
EPRI
Households EMM National Census Apparent discrepancy in total number of households and in households having
access to electricity – census figures appear excessive in comparison with EMM
billings
Transport – cars Africon transportation model will provide useful origin-destination matrices,
based on EMM household surveys
Transport – rail Intersite,
Metrorail
Transport – taxis Municipalities Taxi Associations

3.5 Study constraints
The major constraints are the fact that the data is not readily available and that those that
have to supply it have to spend some time in doing so. Liquid fuels and pipeline gas data
was obtained relatively quickly indicating the use of an integrated database. In the case of
electricity many persons had to be approached for different parts of the data. It was clear
that an integrated database was not available and the data had to be extracted from a
number of sources and spreadsheets. In the case of RE and EE data, not all information,
particularly pertaining to EMM, was readily available.
3.5.1 Liquid fuels

Liquid fuels data is collected on the basis of magisterial districts, a system that is
no longer generally in use. It was initially difficult to identify the magisterial districts
and these boundaries do not fully conform to those of EMM.
Interpretations are required as indicated in Section 3.1 in translating this liquid fuel
data into the sectors of use.
Sensitivity/business confidentiality relating to some data, especially Eskom data for
large users.
No problems were experienced in obtaining pipeline gas data other than the total
income from gas sales and by implication the negotiated tariff for large users.
3.5.2 Electricity
The information on which this report is based is not readily available from any single point
of contact. Information was obtained from a number of sources, and was collated and
cross-referenced with data as was available to ensure integrity.
Although all municipalities store data (i.e. billing and payment information) on a similar
system (the Venus System), the data is handled separately by the individual municipalities,
consolidation is only carried out manually by EMM Electricity staff. A major difficulty
experienced by EMM Electricity staff is a difficulty reconciling financial and technical
information. For example, if a customer challenges a bill and receives a credit, although
the system records the financial credit it is currently not clear whether the corresponding
energy credit is correctly recorded. This problem is being addressed jointly with Finance
and IT. The status of progress on this issue should be assessed when EMM
designs its Energy Strategy, and appropriate support and actions planned with
the relevant departments.
One aspect of the investigation that warrants specific comment is the energy balance. We
attempted to quantity the loss profile by consolidating the information obtained from EMM
and Eskom. We were however not in a position to verify the loss profile, as no consolidated
energy balance is kept by EMM, in terms of bulk electricity purchases from Eskom by EMM
and sales by Eskom and EMM to end consumers. This exercise is carried out manually by
Electricity Department personnel who do not currently have the resources to fully resolve
discrepancies.
The project team attempted to match the total consumption figure by Small and Large
Power Users obtained from the Eskom Customer Service with a summary submitted by
Sales and Marketing – Eskom Centre. The difference was approximately 14%. Eskom staff
suggested that the potential reason for this overstatement is that electricity supplied by
Eskom to Dipaleseng municipality is also included.
3.5.3 Environment and air quality

With respect to the environment and air quality the following specific constraints were
experienced:

Specific emissions for air quality data was unavailable;
Ambient data for atmospheric emissions was unavailable;
Quantification of GHGs and impacts from acid rain is difficult;
Specific data for animal and plant health unavailable;
Impacts of the agricultural sector minimal; and
Impacts of and on biomass use is unclear.
Data gaps and follow-up activities are also explained where relevant in each section.

4. ENERGY BALANCE
An energy balance was carried out to assess the fundamental movement of energy through
its main carriers through EMM.
4.1 Energy balance in physical terms

All of the available energy supply and demand data was incorporated into the energy
balance using the format adopted by the International Energy Agency (IEA). The level of
disaggregation has been reduced as the source data does not support a detailed
disaggregation. A number of interpretations or assumptions were made on the liquid fuel
raw data in this process, mainly:
Liquid fuels sold by the “other commercial” marketing channel are taken as industrial
use, other than petrol where the split is taken as 50% industry and 50% commerce.
IP sold by service stations and resellers is taken as use by households.
LPG sold by service stations and other resellers is taken as 50% household and 50%
commerce.
The electricity data was mainly obtained from the submission by EMM to the NER and is for
the 2002/2003 financial year July to June. No correction has been made to bring the
different time periods into line at this stage, as the difference is not material. Coal sold by
the four local merchants was stated to be 70% of its use in industry and 30% in
households.
The results of the preliminary energy balance in physical units are presented in Table 6
below.
Table 6 Energy balance for EMM in physical units, 2003

Furnace
Fuel Type Petrol Diesel Jet fuel Avgas IP LPG Sasol gas Electricity Coal
oils
Units kl kl kl kl kl kl kl GJ MWh tonnes
Secondary Imports 991,558 488,276 1,491,631 0 43,583 57,241 69,634 11,953,601 14,398,937 149,344
less aviation bunkers 1,489,510
less losses 1,963,285
Secondary supply 991,558 488,276 2,121 0 43,583 57,241 69,634 11,953,601 12,435,653 149,344
Households 52,394 29,577 44,803
Industry/construction 5,698 68,024 43,583 3,111 10,481 11,953,601 104,541
Mining and quarrying 418 5,944 12

Commerce 5,232 29,577
Local Government 4,445 6,120
Agriculture 270 14,801 1,608
Transport 975,496 393,387 2,121 0 116
Total final consumption 991,558 488,276 2,121 0 43,583 57,241 69,634 11,953,601 12,435,653 149,344
In accordance with the IEA methodology, international and national aviation and marine
bunkers are only considered in the top part of the energy balance, as the energy is not
consumed within the area that is being analysed.
4.2 Conversion factors

In order to convert the energy balance in Table 6 into a common energy unit, a multiple of
the Joule, conversion factors for each fuel are required. Conversion factors for the same
fuel differ to some extent internationally due to different physical characteristics of crude

and therefore the production of the specific fuel. Table 7 indicates local and representative
conversion factors as published by the DME3 in 1998.
Table 7 Energy conversion factors

Energy Conversion Energy Conversion
Units Units
carrier factor carrier factor
Petrol MJ/l 34.2 IP MJ/l 37
Diesel MJ/l 38.1 LPG MJ/l 26.7
Jet fuel MJ/l 34.3 Sasol gas GJ 1
Avgas MJ/l 33.9 Electricity MJ/kWh 3.6
Furnace oil MJ/l 39.9 Coal MJ/kg 24.3
4.3 Energy balance

The energy balance in energy units (gigajoules – GJ – Joules x 1012) is given in Table 8
below. It has been simplified in comparison to the energy balance in physical units by
grouping liquid fuels with similar use4 together.
Table 8 Energy balance for EMM, GJ in 2003.

Stationary
Transport liquid
Energy Balance 2003, GJ type liquid Sasol gas Electricity Coal Total %of EMM total
fuels
fuels
Secondary Imports 103,750,293 5,713,927 11,953,601 51,836,175 3,629,059 176,883,055
less aviation bunkers 51,162,943 51,162,943
less losses 7,067,824 7,067,824 14%
Total secondary energy
supply 52,587,350 5,713,927 11,953,601 44,768,350 3,629,059 118,652,287
Households 0 2,728,271 0 13,157,643 1,088,718 16,974,631 14%

Industry, construction 2,786,569 2,131,732 11,953,601 23,253,204 2,540,341 42,665,448 36%
Mining and quarrying 240,762 444 0 4,268,938 0 4,510,144 4%

Commerce 178,917 789,693 0 2,585,869 0 3,554,479 3%
Local Government
385,191 0 0 885,928 0 1,271,119 1%
Agriculture 573,152 59,496 0 595,335 0 1,227,983 1%
Transport 48,422,758 4,292 0 21,434 0 48,448,484 41%
Total, final use 52,587,350 5,713,927 11,953,601 44,768,350 3,629,059 118,652,287 100%
%of total use 44.3% 4.8% 10.1% 37.7% 3.1% 100.0%
4.4 Conclusions from Energy Balance

The transport sector accounts for the largest use of energy in EMM (41%), followed by
industry (36%) and then households (14%). The three remaining sectors are low in energy
use in comparison as they account for 1% to 4% of the total each.
Linked to this distribution of sectoral energy use, liquid fuels of the various types supply
49.1% of the secondary energy, followed by electricity with 37.7% and pipeline gas with
10.1%.
3
DME, Digest of South African Energy Statistics, 1998.
4
Transport type liquid fuels- petrol, diesel, avgas and jet fuel. Stationary type liquid fuels: IP and LPG.

About 29% of the energy that is used within EMM is sold and used as aviation bunkers for
international and national aviation. As this is not an EMM activity it is not considered or
analysed. A small component is used in smaller aircraft from local airports.

5. ENERGY DEMAND
5.1 Overall demand

The energy balance in Table 8 gives the total demand for energy in EMM in 2003. This is
compared to the South African total for 2001 in Table 9. EMM consumes 4.5 % of the
national total of all energy forms and more than this average for Sasol Gas (28.8%, which
is understandable as it is only one of the three areas that is supplied with this gas) and
liquid fuels (stationary applications at 13.5% and transport applications at 7.2%).
Electricity is about the same as the total average but coal and biomass are significantly
lower.
Table 9 EMM energy demand related to the RSA5 total (TJ)

Stationary
Transport Jet Sasol
Area type liquid Electricity Coal Biomass Total
liquid fuels Fuel gas
fuels
Total EMM, 52,587 1 5,714 11,954 44,768 3,629 Low 118,652

2003
Total for 407,659 69,089 43,426 42,926 662,649 681,257 198,870 2,103,906
South
Africa, 2003
EMM, % of 12.9% 0.0% 13.2% 27.8% 6.8% 0.5% 0.0% 5.6%

South Africa
Source: DME, 2001 extrapolated and Energy Balance for EMM, 2003
5.2 By Energy Carrier

5.2.1 Liquid Fuels
Liquid fuels consumed in South Africa include:
Petrol
Diesel
Paraffin, also known as illuminating paraffin (IP)
Jet fuel
Fuel oil
Liquefied petroleum gas (LPG)
This report will deal mainly with petrol, diesel, IP and LPG. Jet fuel is excluded because it
is consumed outside of Ekurhuleni, and fuel oil information is combined with other
stationary type fuels where necessary.
Liquid fuels are made in South Africa either by refining crude oil (about 70%) or by
conversion of coal and natural gas (about 30%). South Africa’s consumption of liquid fuels
over the decade to 2001 is shown in Figure 5 overleaf.
5
DME, RSA Energy Balance for 2001.

Figure 5 Consumption of Liquid Fuels in South Africa 1992-2001
Consumption of Liquid Fuels in South Africa 1992-2001
12,000
10,000
litres (millions)
PETROL
8,000
DIESEL
6,000 IP
4,000 LPG
2,000
0
92
93
94
95
96
97
98
99
00
01
19
19
19
19
19
19
19
19
20
20
Year
Source: World Energy Council, South African Energy Profile 2003
While petrol consumption has traditionally been dominant, Figure 5 shows a potential
swing in diesel and petrol consumption patterns.
EMM uses a surprisingly large component of IP (42.4%) and LPG (59.8%) in relation to
Gauteng, as shown in Table 10. Petrol and diesel use is about 25% of that of the Province
and petrol forms a high 9.3% of the national total.
Table 10 Regional and national use of liquid fuels, kl 2003.

Petrol, Diesel,
Area IP LPG
all grades all grades
EMM 991 560 475 921 57 281 69 634
Gauteng6 3 923 936 1 583 064 134 985 116 484
South Africa6 10 668 487 7 263 079 768 146 568 702
EMM, % of Gauteng 25.3 30.1 42.4 59.8
EMM, % of national total 9.3 6.6 7.5 12.2
Extensive differences between the marketing of the different liquid fuels exist between the
constituent parts of EMM in the form of the municipalities as can be seen in Table 11
overleaf.
6
Spreadsheet downloaded from SAPIA website, www.mbendi.co.za/sapia/rsacons.htm

Table 11 Consumption of liquid fuels per municipality, kl in 2003
Furnace
Municipality Petrol Diesel Avgas IP LPG Total % of total Jet fuel
oil
Alberton 145,862 131,632 2,536 279 16,325 6,475 303,108 18% 55
Benoni 135,523 48,095 1 22,560 13,278 219,458 13%
Boksburg 142,470 49,020 3 1,172 534 193,200 12% 1,012
Brakpan 52,978 30,430 284 1,936 630 86,258 5%
Germiston 210,340 83,953 1,254 2,205 2,323 45,598 345,672 21% 1,054
Kempton Park 213,336 87,096 980 2,706 10,495 2,177 316,790 19% 1,489,510
Nigel 23,049 23,200 881 132 47,261 3%
Springs 68,001 22,495 59 38,394 1,590 810 131,350 8%
Total 991,560 475,921 5,117 43,584 57,281 69,634 1,643,096 100% 1,491,632
% of total 60% 29% 0% 3% 3% 4% 100%
Jet fuel has been indicated separately in the right hand column of the table as most of it is
not consumed within the boundaries of EMM. The jet fuel volume is high as it is about of
the same order as the total of all other liquid fuels that are consumed within EMM. Most
(99.9%) of this is in Kempton Park, at Johannesburg International Airport.
In terms of total municipal use Germiston, Alberton and Kempton Park are the largest and
Springs, Brakpan and especially Nigel the smallest. Petrol is by far the dominant liquid fuel
that is used within EMM (60%) followed by diesel (29%), with low usage of the other liquid
fuels. The reason why furnace oil is mainly used in Springs is not known at this stage.
Heavy furnace oil consumption in EMM over a decade is shown in Figure 6 below.
Figure 6 Heavy furnace oil consumption in Ekurhuleni 1994-2003
Heavy Furnace Oil Consumption in Ekurhuleni
8,000,000
7,000,000
6,000,000
Consumption (l/month)
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Jun-94 Oct-95 Mar-97 Jul-98 Dec-99 Apr-01 Sep-02 Jan-04 May-05
-1,000,000
Date
Alberton Benoni Boksburg Brakpan Germiston Kemptonpark
Nigel Springs Total Poly. (Total)
5.2.2 Piped Gas Consumption in Ekurhuleni

Sasol gas appears to be employed in industrial and commercial, rather than domestic,
markets. The pattern of consumption, over a 2-year period, is shown in Figure 7 overleaf.

Figure 7 Pattern of Piped Gas Usage in Ekurhuleni
Pattern of Piped Gas Consumption in Ekurhuleni
2 ,50 0 ,0 0 0
2 ,0 0 0 ,0 0 0
Monthly Consumption (GJ)
1,50 0 ,0 0 0
1,0 0 0 ,0 0 0
50 0 ,0 0 0
-
Dec-0 2 J an-0 3 M ar-0 3 M ay-0 3 J un-0 3 Aug -0 3 Oct-0 3 No v-0 3 J an-0 4
Date
G1 Metal Industry G2 Mining & Non-Metal G3 Chemical,Pulp,Paper

G4 Manufacturing G5 Food & Commercial
5.2.3 Electricity
This section sketches the context within which electricity is provided in the EMM boundary.
The electricity distribution license is held by EMM, although Eskom is also directly involved
in the supply of electricity to some locations in the EMM boundary.
This section describes the following:
Connection profile – number and type of electricity customers for EMM and Eskom
Consumption profile – a breakdown of electricity consumption by demand sector
Income profile – revenues generated by EMM and Eskom by sales of electricity within
EMM
Total Consumption
Total Income
Consumption and billing profiles by Service Delivery Area (SDA)
5.2.3.1 Connection Profile

Table 12 shows the number of customers served by EMM and Eskom within the EMM
boundary. EMM serves some 315 500 customers and Eskom some 140 000 customers.
Eskom’s consumers are split into small and large power users and key consumers. The key
customers consist of:
three mines
three smelters
two water pumping stations
one paper mill.
EMM dominates the supply of electricity to households, manufacturing and commercial
customers (52% of households other than low usage, 99% of the manufacturing and 90%
of the commercial customers in the EMM boundary) while Eskom dominates supply to
mining (96%). Please note that the number of households with low usage supplied by
Eskom is accounted for under ‘Households’. Eskom could not make a distinction.

Table 12 Number of electricity customers by category
Eskom EMM Total
Customers Number % of % of Number % of % of Number % of
total* split** total* split** total*
Household low 15% 138 610 44% 100% 138 610 30%
usage
Household 136 000 97% 48% 150 212 48% 52% 286 212 63%
Agriculture 1 859 1% 34% 3 620 1% 66% 5 479 1%
Mining 27 <1% 96% 1 <1% 4% 28 0%
Manufacturing 22 <1% 1% 3 963 1% 99% 3 985 1%
Commercial 1 640 1% 10% 15 191 5% 90% 16 831 4%
General*** 3 801 1% 100% 3 801 1%
Total 139 548 100% 31% 315 398 100% 92% 454 946 100%
Source: Eskom, 2003 and EMM submission for 2002/03 to NER
* % of total indicates the specific category’s portion of the total market
** % split indicates how the category is serviced by Eskom and EMM
*** General – this category includes own use, streetlights
5.2.3.2 Consumption Profile

This section provides the consumption by:
demand sectors (category of customer)
municipality (including energy supplied to domestic customers directly by Eskom).
The total consumption by the different demand sectors for the period 1 January to
31 December 2003 is reflected in Table 13. It also indicates how the sales are split
between EMM and Eskom. The total consumption for the EMM boundary amounts to some
12 435 653 MWh. EMM was responsible for the supply of 8 917 464 MWh (72%) within
the EMM boundaries in 2003, while Eskom supplied 3 518 189 MWh (28%).
Table 13 Overview of electricity sales by category of customer

Eskom EMM Total
Customers Sales % of % of Sales % of % of Sales % of
(MWh) total* split** (MWh) total* split** (MWh) total*
Household low 0% 0% 971 683 11% 100% 971 683 8%
usage
Household 201 427 6% 8% 2 484 164 28% 92% 2 685 590 22%
Agriculture 119 558 3% 72% 45 844 1% 28% 165 402 1%
Mining 1 008 256 29% 85% 177 682 2% 15% 1 185 938 10%
Manufacturing 2 028 356 58% 31% 4 433 912 50% 69% 6 462 268 52%
Commercial 160 592 5% 22% 558 088 6% 78% 718 680 6%
General*** 0% 0% 246 091 3% 100% 246 091 2%
Total 3 518 189 100% 28% 8 917 464 100% 72% 12 435 653 100%
Source: Eskom and EMM, 2003
* % of total indicates the specific category’s portion of the total market

** % split indicates how the category is serviced by Eskom and EMM
*** General – this category includes own use, streetlights

It indicates that EMM dominates the electricity supply to all customers except agriculture
and mining where Eskom dominates.
Manufacturing dominates the consumption profile (52%) followed by households (30%). In
terms of consumption, agriculture, mining, transport and general are extremely small.
Table 14 indicates that the average consumption varies from 2 101kWh/month for
customers served by Eskom and 2 356kWh/month for customers served by EMM. Eskom
could not clarify the low consumption for households.
Table 14 Average electricity consumption per customer class

Eskom EMM
CUSTOMERS
kWh/customer/month kWh/customer/month
Household low usage 584
Household 123 1 378
Agriculture 5 359 1 055
Mining 3 111 901 14 806 853
Manufacturing 7 861 846 93 236
Commercial 8 159 3 062
General* 5 395
Total 2 101 2 356
Source: own calculation
* General – this category includes own use, streetlights

Table 15 indicates Eskom’s direct supply to nine large customers. They range from number
30 to 119 on the Eskom national list of 125 large and key customers. It is likely that a high
electricity load factor and the use of a very advanced time-of-day and possibly an
interruptible tariff are being used. However, these cannot be made explicit in a publicly
available report, since information on the demand, consumption and cost for electricity is
generally of a strategic nature to the key customers.
Table 15 Eskom Large Power Users within the EMM boundary

Company Location Sector
Scaw Metals Germiston Industrial
Zinc Corp SA Springs Industrial
Sappi Fine Papers, Ernstra Mill Springs Industrial
Impala Platinum Refinery Springs Industrial
Rand Water Board, Palmiet Alberton Commercial
Rand Water Board, Zwartkopjies Alberton Commercial
SATS Sentrarand Commercial
Nigel GM Co, Grootvlei Shaft Springs Mining
Enderbrooke Investments, Boksburg Mining
Hercules
Enderbrooke Investments, Far Boksburg Mining
East
There is significant variation in the amount of energy sold and the respective income per
unit of electricity sold in the various municipal distributors, as reflected in Table 16. These

range from 2% to 23% of the total energy sold for Nigel and Germiston respectively.
Germiston and Kempton Park are the largest distributors.
Table 16 Electricity sales per municipality, 2003

Sales % of Total
Municipality
(MWh) Energy Sold
Alberton 1 037 614 12%
Benoni 807 341 9%
Boksburg 1 167 371 13%
Brakpan 339 215 4%
Germiston 1 952 311 23%
Nigel 174 447 2%
Edenvale 661 374 8%
Kempton Park 1 501 039 17%
(including Tembisa)
Springs 1 030 661 12%
Total 8 671 373 100%
Source: Individual EMM Municipalities, 2003
Please note that the category of General Consumption, which includes own use and
streetlighting, is excluded from Table 16.
5.2.3.3 Prepaid and credit metering systems

If it is assumed that prepaid meters correlate with lower household income groups and
credit meters with higher income groups then Figure 8 overleaf suggests that Brakpan,
Germiston and Springs are the most active areas for prepaid installations, at least in the
time period examined (2003-2004). These are east-west axis towns. Credit meter
installation activity is taking place principally in Kempton Park, on the north-south axis.

Figure 8 Residential credit and prepaid meter installations in EMM
Frequency in Residential Credit and Prepaid Meter Installations in the

Ekurhuleni Area (2003/2004)
2500
2000
Connection Frequencies
1500
1000
500
0
0 1 2 3 4 5 6 7 8 9 10
-500
Municipalities
Residential Credit Meter Residential Prepaid Meter
1 Alberton 6 Germiston
2 Benoni 7 Kempton Park
3 Boksburg 8 Springs
4 Brakpan 9 Tembisa
5 Edenvale
5.2.3.4 Trends in new connections in EMM
Although new connections tend to support the emphasis on north-south development, the
activity at Boksburg is anomalous (Figure 9). Certainly Alberton, Benoni, Brakpan,
Edenvale, Springs and Tembisa show little activity in the area of new connections.

Figure 9 Trend in power connections in major municipalities
Trend in Power Connections in Major Municipalities
70
Frequency for 2003/2004
60
50
40
30
20
10
-10 0 1 2 3 4 5 6 7 8 9 10
Municipality
Business <100A Business 100A - 150A Business 6.6/11kv <1MVA

Business 6.6/11kV >1MVA Business >11kV >1 MVA
1 Alberton 6 Germiston
2 Benoni 7 Kempton Park
3 Boksburg 8 Springs
4 Brakpan 9 Tembisa
5 Edenvale
5.2.3.5 Electricity sales related to Gauteng and South Africa

EMM consumed 21.1% of the electricity that is sold in Gauteng and 4.9% of that in the
country as indicated in Table 17

Table 17 overleaf. Proportionately the household consumption is much higher than the
total average for Gauteng and the country and commercial use is proportionately higher
than the total for Gauteng. Agriculture and mining are low in comparison to the total, but
the reason why this is also the case with transport is not known. Manufacturing electricity
use is proportionately about the same as the provincial and national totals.

Table 17 Comparison of electricity sales in EMM, Gauteng7 and South Africa8
Gauteng, South EMM, % EMM,

EMM,
Category adjusted to Africa, of % of
2002/3
2002 2002 Gauteng RSA
Household 3486670 11292162 30418481 30.9% 11.5%
Agriculture 46253 455441.49 4677037 10.2% 1.0%
Mining 179267 5012442.5 32620848 3.6% 0.5%
Manufacturing 4473458 21001441 83163878 21.3% 5.4%
Commercial 563066 1855442 18227266 30.3% 3.1%
Transport 6011 710661.45 6245726 0.8% 0.1%
General 273302 2388422 9594798 11.4% 2.8%
Total 9028027 42716013 1.85E+08 21.1% 4.9%
5.2.4 Coal
Not much coal is consumed in Ekurhuleni, considering the fact that of the national annual
coal sales of about 3 million tonnes, only 149, 344 tonnes (5%) were consumed in this
area in 2003. Coal is used mainly in coal-fired boilers and in households for space heating,
cooking and warming. About 30% of the coal supplied to Ekurhuleni is used in households
with the balance going to industry/construction.
Due to the significant air pollution problem caused by the combustion of coal, particularly
in households, there are strategies by the Department of Minerals and Energy (DME) to
provide townships with low-smoke fuels and other relatively cleaner forms of energy. Air
pollution emanating from the domestic combustion of coal results in acute respiratory
illnesses, poor visibility and mars the aesthetics of physical structures.
In this regard, the use of relatively cleaner forms of energy like electricity, LPG, paraffin
and piped gas is being advocated by the DME. Reasons cited by households that use coal,
especially for space heating during winter include the fact that coal is comparatively cheap
and the lack of financial resources to purchase new appliances for other fuels. In most
households, old coal stoves that have been used by previous generations are still in use.
5.2.5 Biomass
5.2.5.1 Animal dung

Of all the above energy carriers, animal dung is the least commercial and monetised.
Animal dung is less used in Ekurhuleni and its use is mainly for heating and cooking. It has
a non-energy use for the plastering of huts in rural areas. However, since Ekurhuleni is
highly urbanized, such use is infrequent.
5.3 By energy users

5.3.1 Household profile
According to the national census, there were approximately 745 000 households in
Ekurhuleni in 2001. The pattern of households, as of 2004, is still characterized by a
7
Data for 2001 obtained from NER website, www.ner.org.za, and adjusted with the overall national
increase from 2001 to 2002 of 3.9%.
8
Data for 2002 from NER publication, Electricity Supply Statistics, 2002.

smaller, largely white suburban component occupying cores within larger, largely black
settlements arranged on the historical township model.
Like households in the rest of South Africa, these households tend towards a complex
multiple fuel use pattern to serve their energy needs:
space heating
water heating
air conditioning
appliance use, including
o cooking
o refrigeration
lighting
power tool use
electronic news/entertainment media
The Energy White Paper (1998) makes several key points about household demand:
energy services for low-income households have historically been inadequate
households suffering unemployment and poverty rely on less convenient and often
unhealthy fuels
grid electrification may not satisfy the energy needs of low-income households
most household energy consumers are women
energy conservation by high-income households was not historically a policy priority
coal use in urban areas results in indoor air pollution
energy security for low-income households can help reduce poverty, increase
livelihoods and improve living standards.
5.3.1.1 Discrepancy between national census and EMM statistics

Given the number of household customers for EMM and Eskom combined in 2003
(424 822) as shown in Table 12, the urban electrification rate of 71.9% in Gauteng in
20019 (NER) and the number of households reported in the national census in 2001
(744 936), there appears to be a significant discrepancy between the census and EMM’s
statistics.
Of these approximately 745 000 households, the census provides an indication of the
minimum number of households which apparently have access to electricity in the survey
of electricity use for lighting and cooking, as shown in Table 18 overleaf.
9
NER, http://www.ner.org.za/stats/statistics_gauteng.htm

Table 18 Energy source for lighting and cooking in EMM in 2001
ENERGY
LIGHTING COOKING
SOURCE
Electricity 557,601 488,909
Gas 1,591 7,262
Paraffin 28,861 190,265
Candles 154,321 -
Solar 1,127 1,700
Wood - 2,460
Coal - 51,598
Animal dung - 1,649
Other 1,435 1,092
Total 744,936 744,935
Source: SA National Census, 2001
This implies that a minimum of approximately 560 000 households had access to electricity
in 2001. Extrapolating conservatively (on a linear basis, at 5% per year or 10% over two
years) to 2003 implies an additional 56 000 households had access to electricity, for a total
of 616 000 grid-connected households in comparison with 425 000 EMM/Eskom customers.
The proportion of households using electricity for lighting (77.5%) shown above is high in
comparison with the NER’s published statistic of 71.9% urban electrification in Gauteng in
2001.
EMM’s records are thorough and rigorously cross-checked through the billing system. EMM
and Eskom staff indicated that they are in a process of verifying the number of households
served in the EMM boundary.
Sources of this discrepancy could include:
Overestimation of the number of households in Ekurhuleni in the census
Overestimation of the number of households using electricity for lighting (through
possible misunderstanding of the question by census respondents, as well as derivation
or interpolation on the basis of overly generous assumptions of electrification rates)
Illegal connections, although most municipalities report these to be a relatively small
percentage of total connections.
This difference needs to be examined through a more thorough investigation of how the
census household numbers and electricity usage patterns were derived.
5.3.1.2 Domestic energy consumption in EMM

In South Africa, the type of energy used by rural and peri-urban areas depends on the
season and availability. For instance, a lot of coal is burnt in townships in the highveld
during winter for space heating, whilst more illuminating paraffin (IP) and liquefied
petroleum gas (LPG) are used during summer. In general, the type of energy carrier used
by less affluent households depends on availability, cost and accessible combustion
appliance. Ekurhuleni is highly urbanised and industrialised, as such less non-commercial
energy carriers like woodfuel and animal dung are used than in rural areas in South Africa.
In comparison with other sectors, households consumed 16 974 631 GJ energy in 2003,
accounting for 14% of the total energy demanded in EMM in 2003 (ref Table 8). This made
the household sector the third largest energy consumer in 2003.

5.3.1.3 Low-income household energy use
Although electrification has made inroads into patterns of energy consumption, significant
numbers of families still use IP, woodfuel, coal, animal dung and candles as shown in Table
19.
Table 19 Energy usage in lower income groups
COOKING, LIGHTING,
HEATING, NO. OF
FUEL TYPE NO. OF NO OF
HOUSEHOLDS
HOUSEHOLDS HOUSEHOLDS
IP 190 264 99 221 28 861
Woodfuel 2 460 10 724
Coal 51 598 142 437
Animal dung 1 649 1 045
Candles 154 320
5.3.1.4 State of Electrification

Most households in EMM are connected to a source of grid electricity, as shown in Table
20.
Experience suggests that lighting and electronic news media are the two main applications
for electricity even when more traditional fuels are used for cooking and heating.
Table 20 Energy usage for lighting in Ekurhuleni

ENERGY 1996, NO. OF 2001, NO. OF CHANGE BETWEEN
SOURCE HOUSEHOLDS HOUSEHOLDS 1996 AND 2001
Electricity 405,546 557,601 37.5%
Gas 1,356 1,578 16.4%
IP 16,185 28,848 78.2%
Candles 114,587 154,290 34.6%
Although there was some 38% increase in electricity usage for lighting between 1996 and
2001, the increase in IP was double that, suggesting that IP is considered either more
readily available (no connection fees or activities needed) and/or more affordable for
certain illuminating purposes. The difference in consumption growth between
electricity and IP for lighting should be examined in more detail.

Table 21 provides a good indication of the reasons for the preferences for IP and coal in
low-income households. LPG is deemed expensive and used by those in relatively high-
income strata. However, most of the use of coal occurs in winter, when a relatively cheap
source of energy is required for space heating. It is interesting to note that cost per unit
energy of LPG is similar to that of electricity.

Table 21 Comparative prices of household energy carriers in Ekurhuleni, 2004
Price per Unit Energy,
Energy Carrier % Relative to LPG price
Rand/MJ
LPG 0.10 100
IP 0.08 80
Coal 0.02 20
Electricity 0.10 100
Little woodfuel is used in Ekurhuleni relative to electricity, gas, IP and coal, as shown in
Table 18 and Table 19. This appears normal, as Ekurhuleni is urbanised, with limited
access to “free” woodfuel as in rural areas. Woodfuel use in the East Rand is confined to
heating and cooking. Nationally, the bulk of the woodfuel utilisation occurs in rural areas
where most of the trees and plantations are located.
5.3.1.5 Key demographic characteristics of Ekurhuleni

The racial distribution of the EMM area is shown in Figure 10.
Figure 10 Racial Distribution in Ekurhuleni, No. of Persons
African
Coloured
Indian
White
The population is largely young to middle-aged (ref Figure 11 overleaf) with the largest
group lying within the 15 to 34 age group ranges. It is of interest to note that the male
component of the population is greater than the female, suggesting that a component of
the EMM population may be migratory in character.

Figure 11 Age distribution in gender categories in the Ekurhuleni area
600, 000
No. o f Househ olds
500, 000
400, 000
300, 000
200, 000
100, 000
0
5
5
34
64
4
34
14
14
64
r6
r6
to
to
to
to
to
to
to
to
ve
ve
-0
-0
5
5
-5
-O
-5
5
-O
-1
-3
-1
-3
es
es
es
es
s
es
es
al
s
al
es
ale
ale
al
ale
al
M
m
al
al
al
m
M
m
Fe
M
M
m
Fe
Fe
Fe
Fe
Age ca tegory
The EMM contains a core of adequately educated people (Table 22) suggesting an
adequate people resource for industrial expansion. The problem lies with the changing
nature of industrial production and the lag in more educated people entering the
workplace. This is illustrated by Table 23 where an increase in people employed of 12.7%,
over the period 1996 to 2001, was matched by an increase in unemployment of 61.5%
over the same period.
Table 22 Education profiles for Ekurhuleni

NUMBER OF
PEOPLE
CATEGORY 1996 2001
No schooling 124 488 153 663
Some primary 148 543 192 045
Complete primary 86 022 95 034
Secondary 516 389 597 858
Grade 12 268 220 457 203
Higher 73 543 165 303
Table 23 Employment status for Ekurhuleni residents
NUMBER OF
PEOPLE
CATEGORY 1996 2001
Employed 675 551 761 040
Unemployed 319 496 516 033
Not economically active 467 390 514 422
Total labour force 1 462 437 1 791 495

The salary profile for the EMM area, shown in Figure 12, conceals a wide salary distribution
discrepancy which is illustrated through a comparison of income distribution in two wards,
shown in Figure 13 (Ward 39) and (Ward 76).
Figure 12 Income distribution in the Ekurhuleni area
Distribution of Household Incomes
180,000
160,000
140,000
Number of Households
120,000
100,000
80,000
60,000
40,000
20,000
0
0 7,201 28,801 115,201 460,801 1,843,201
Household Income (R/a)
Figure 13 Income distribution in Ward 39
None
R1 - 4800
R4801 - 9600
R9601 - 19200
R19201 - 38400
R38401 - 76800
R76801 - 153600
R153601 - 307200
R307201 - 614400
R614401 - 1228800
R1228801 - 2457600
Over R2457600

Figure 14 Income distribution in Ward 76
None
R1 - 4800
R4801 - 9600
R9601 - 19200
R19201 - 38400
R38401 - 76800
R76801 - 153600
R153601 - 307200
R307201 - 614400
R614401 - 1228800
R1228801 - 2457600
Over R2457600
The EMM area is dominated by formal housing (Figure 15), a measure of the relative age
of the area during which settlement has been dominated more by planning than influx.
This is an advantage when considering the implementation and maintenance of services
such as electricity, water and transportation.
Figure 15 Types of housing in the Ekurhuleni area
Formal
Informal
Traditional
Other
5.3.1.6 Household Energy Use

Electricity is the most used energy carrier in households in Ekurhuleni, as summarized in
Table 24 overleaf.

Table 24 Household energy use by carrier
ENERGY USE (%)

SOURCE
LIGHTING HEATING COOKING
Electricity 74.84 61.73 65.63
Gas 0.21 1.62 0.97
Paraffin 3.87 13.32 25.54
Wood N/a 1.44 0.33
Coal N/a 19.12 6.39
Animal dung N/a 0.14 0.22
Solar 0.15 0.15 0.23
Candles 20.72 N/a N/a
Other 0.19 2.48 0.15

Source: State of Environment Report 2004 adopted from STATSSA 2001 Census
5.3.1.7 Energy user profile

Energy usage characteristics tend to correlate with income levels. Thus, modest use of
woodfuel, coal and IP corresponds to the lower income wards with more prolific use of
electricity and transportation fuels correlating with the wards with higher income levels.
Of the c. 150 000 tonnes of coal consumed in the EMM annually, some 30%, or
44 800 tonnes are consumed by households.
The dominance of electricity, coal and IP in cooking and heating is evident from Figure 16
and Figure 17. Electricity also dominates; however, lighting with candles is the preferred
medium of lower income groups, as shown in Figure 18.
Figure 16 Classification of fuel usage for cooking by race
600,000
500,000
400,000
Households
300,000
200,000
100,000
0
Electricity Gas Paraffin Wood Coal Animal dung Solar Other
Fuel
Black African Coloured Indian or Asian White

Figure 17 Classification of fuels for heating by race
500,000
450,000
400,000
350,000
Hoseholds
300,000
250,000
200,000
150,000
100,000
50,000
0
Electricity Gas Paraffin Wood Coal Animal dung Solar Other
Fuels
Figure 18 Classification of fuels for lighting by race
600,000
500,000
400,000
Households
300,000
200,000
100,000
0
Electricity Gas Paraffin Candles Solar Other
Fuels
A source of energy growing in importance is that of gas, particularly LPG. Suppliers are
giving much attention to capturing some of the domestic market from more traditional
energy sources such as electricity and coal. The 350 000 tonnes of LPG consumed
nationally, each year, has the following consumption pattern:
Commercial 19%
Industrial 41%
Agriculture 6%
Mining 1%
Automotive 0.1%
Domestic 33%

5.3.1.8 Energy costs
Energy costs have been estimated from a combination of historical survey and inflation
data. Per unit price paid for various energy carriers varies according to location,
transportation costs and mark-up tolerance. Table 25 shows average energy costs.
Table 25 Estimated average energy carrier costs for Ekurhuleni

1992 1992 1992 1992 2004 2004 2004 2004 2004 2004
Supplier Supplier Retailer Supplier Supplier Retailer Retailer
Retailer
Purchase Sales Purchase Purchase Sales Purchase Sales R/MJ R/GJ
Sales Price
Price Price Price Price Price Price Price
IP (R/l) 0.82 0.93 0.95 1.36 1.76 1.99 2.04 2.91 0.08 78.75
Coal (R/t) 66.7 110.4 136 203.6 142.90 236.52 291.36 436.18 0.02 17.95
LPG (R/l) 0.75 0.98 0.92 1.296140032 1.60 2.10 1.98 2.78 0.10 104.00
Electricity (R/kWh) 0.3605 0.10 100.14
The cost to the domestic sector of selected energy carriers is given in Table 26 below:
Table 26 Estimated costs of various energy carriers in the Ekurhuleni domestic

area
ENERGY CONSUMPTION EXPENDITURE
HOUSEHOLDS EXPENDITURE
CONSUMPTION DISTRIBUTION DISTRIBUTION
(MJ) (R/a)
IP 1,938,541,000 10.5% 152,652,827 9.55%
LPG 1,572,603,300 8.5% 163,550,743 10.23%
Woodfuel 1,290,528,211 7.0% 6,452,641 0.40%
Coal 1,088,712,900 5.9% 19,542,384 1.22%
Electricity 12,552,012,000 68.1% 1,256,944,535 78.60%
Total 18,442,397,411 100.0% 1,599,143,130 100.00%
5.3.1.9 Best mix of energy and appliances

Preferred usage of fuels would be electricity and LPG, from an environmental point of view.
However these are also the two more expensive energy sources. If parameters such as
safety and health costs are accounted for, then the acceptance matrix shown in Table 27
could apply.

Table 27 Acceptance Matrix for Energy/Appliance Combinations
ENERGY WATER SPACE
COOKING LIGHTINGENTERTAINMENT REFRIGERATION
CARRIER HEATING HEATING
Electricity g g a g g g
IP a i a I I a
Woodfuel a i a i i
Coal i i i i i I
Animal
i i i i i i
dung
LPG g a g i i a
Candles a i
g = good
a = acceptable
i = inappropriate
5.3.1.10 Policies and programmes
At present there are two programmes applicable to the EMM situation:

Electrification: an ongoing process
LPG: The DME has undertaken to institute trial programmes, involving LPG suppliers, to
establish the economic parameters involved in the replacement of coal and IP with LPG.
South African LPG appears to be more costly than in other parts of the world and the
intention is, through price reduction and, possibly, subsidisation, to bring LPG within the
reach of lower income groups.
5.3.1.11 Trends and developments

Analysis suggests that there is an economic “transit point” that governs the transition of
consumers from “third” to “first” world patterns. In 2001 this transition point appeared to
lie at a household income of about R30 000 pa. In 2001 some 70% of the EMM population
had household incomes (at least those declared) below this level. It is probable that, with a
transition to higher-tech industries and the decline of agriculture, mining and heavy
industry, that this proportion will grow.
5.3.1.12 Major gaps, constraints and issues

Information available for analysis is inadequate due to:
New ward configurations replacing the old municipal areas
A failure to expand data collection to include elements that would facilitate specific
EMM analysis
5.3.2 Industry and construction

Ekurhuleni has by far the largest industrial concentration in the country, accounting for a
very large proportion of national output in sectors such as:
machinery and equipment (37%)
other chemicals (35%)

metal products (33%)
plastics (29%).
In spite of the dominance of industrial activity located in Ekurhuleni, the area’s share of
national energy usage, with the exception of Sasol gas, is modest, as shown in Table 9.
Energy carrier inputs in the metals sectors of Ekurhuleni are shown, in money terms, in
Table 28.
Table 28 Energy costs in the Ekurhuleni metals sector

BASIC IRON STRUCTURAL OTHER FAB.
INPUT AND STEEL METALS METALS
SECTORS
(Rmn) (Rmn) (Rmn)
Coal and lignite 1 473 - 2

products
Petroleum
529 56 61
products
Electricity 2 069 66 163
Industry and construction consumed 36% of the total energy demand in EMM in 2003. In
absolute terms, this amounts to 42,665,448 GJ. This was the second biggest sectoral
consumption of energy in EMM for the same year.
5.3.3 Mining and quarrying

Although gold mining is the primary mining activity within the EMM, other resources that
are mined include coal, silver, dolomite, clay, sand and rock. Most of the mining activities
occur in the Southern and Eastern SDRs. From Table 8, the total energy consumed by
mining and quarrying in 2003 amounted to 4 510 144 GJ which represents 4% of the total
energy demand in EMM in that year.
Eskom dominates the electricity supply to mines. Mines are mainly classified as Large
Power Users and Key consumers. The main distinction between Large Power Users and Key
consumers is the size of KVA (and not kWh). Table 29 indicates the actual and average
consumption for the period 1 January to 31 December 2003.
Table 29 EMM mining electricity consumption profile

AVERAGE
NUMBER OF ACTUAL
AREA CONSUMPTION
CONSUMERS (MWh)
(MWh/MONTH)
Key Consumers
Brakpan 1 58 348 100 4 862 342
Springs 5 409 278 247 6 821 204
Boksburg 3 324 589 151 9 016 365
792 215 498 7 335 329
Large Power Users 15 216 040 317 12 002 240

5.3.4 Commerce
The energy consumed by commerce in 2003 was 3,554,479 GJ. This represents 3% of the
total energy consumed in EMM in 2003 (Table 8).
5.3.5 Local government

Local government accounted for 1% of the total energy consumed in EMM during 2003,
which is equivalent to 1,271,119 GJ (Table 8).
5.3.6 Agriculture
In 2003, agriculture consumed 1,227,983 GJ of energy, which was equivalent to 1% of the
total energy consumed in EMM in that year (Table 8).
A quantitative indication of the agricultural activity decay rate is provided by a profile of
industrial paraffin usage, a commodity associated with agriculture, as shown in Figure 19.
Figure 19 Consumption of power paraffin in Ekurhuleni
Consumption of Powe r Paraffin in Ekurhule ni
400,000
350,000
300,000
Consumption (l/month)
250,000
200,000
150,000
100,000
50,000
0
Jun-94
-50,000 Oct-95 Mar-97 Jul-98 Dec-99 Apr-01 Sep-02 Jan-04 May-05
Date
Alberton Benoni Boksburg Brakpan Germiston

Kemptonpark Nigel Springs T otal Poly. (T otal)
5.3.7 Transport sector
5.3.7.1 Historical spatial planning10

The EMM area basically comprises the nine former local authority areas of the East Rand.
Each local authority had a town centre, industrial areas, low density residential
developments fringing the town centre and a high density township area adjacent to, and
on the outskirts of, the town.
Despite the segregation of activities reinforced by the policies of apartheid, Ekurhuleni has
a relatively efficient spatial structure with these town centres and a few other significant
development nodes, including Johannesburg International Airport and the East Rand Mall.
Most transport movement is between the residential areas and adjacent towns. In most
cases the movements which predominate are from the townships to the town centres and
industrial areas.
10
Much of the information in this section has been extracted from an Africon annual progress report on
public transport to EMM for 2002.

5.3.7.2 Road network
There are good road and rail linkages between the nine commercial centres. The N3, N12,
N17 and R21 provide for long-distance movement within and beyond the EMM. Congestion
on these freeways is increasing, with heavy freight vehicles becoming an ever-increasing
proportion of the traffic.
Ekurhuleni has some 8 439 km of roads, of which 6639 km are tarred and 1 800 km are
gravel11, and including 360 km of freeways. By and large the EMM does not suffer from
traffic congestion. Only 7.2 per cent of roads experience a level of service E and another
3.5 per cent level of service F (indicating a high level of congestion). The congestion index
for all roads in Ekurhuleni is considerably lower than either Johannesburg or Tshwane.
EMM has the greatest length of freeway, 0.43 lane-kilometres per 1000 population
compared with 0.29 in Johannesburg and 0.42 in Tshwane. Freeway and arterial road
provision per square kilometre in EMM is comparable with both Johannesburg and Tshwane
(0.46 lane-km/km2 of freeway and 1.05 lane-km/km2 of arterial road compared with 0.59
and 1.67 in Johannesburg and 0.37 and 1.09 in Tshwane respectively). Considering the
amount of vacant and rural land in the EMM, the foregoing indicates good road provision in
the EMM with adequate spare capacity.
The transport sector was the biggest consumer of energy in EMM in 2003. In absolute
terms this was 48, 448,484 GJ and represented 41% of the total energy consumption in
the municipality. The relatively high energy consumption gives credence to the fact that
residential areas are far removed from businesses, making commuting very necessary.
5.3.7.3 Rail transport

The commuter rail services are operated mainly on railway lines owned by the SA Rail
Commuter Corporation (SARCC). In addition, commuter rail services extend to some
sections of the Spoornet owned railway network. Metrorail, a business unit of Transnet
Ltd., operates the commuter services in Gauteng. Germiston Station (in the Ekurhuleni
Municipal area) is one of the largest stations in Gauteng and serves main line passengers
as well as freight. All railway services from the north run through the Germiston Station.
The rail system in Ekurhuleni comprises 70 existing commuter rail stations. The most
important stations and halts in terms of passenger volumes are Germiston, Kempton Park,
Oakmoor, Daveyton, Dunswart, Elandsfontein and Isando. Line capacity utilisation was
calculated from the November 2000 timetables for the peak hour ranges from 15% to
89%. The design capacities of the rail network hardly limit the number of services offered,
whereas temporary reductions of the line capacity can affect utilisation beyond the
theoretical figures.
The total number of passengers using Metrorail is given in Table 30 overleaf, based on the
ticket sales and passenger traffic from EMM’s larger stations on any given day of the week.
These stations encounter an average total of 238 000 passengers per day. This translates
to 5 355 000 per month (assuming a 22.5 days month).
11
EMM comments on draft EMM State of Energy Report, 15 October 2004.

Table 30 Rail passenger traffic in EMM
WITS METRO RAIL Average/Day
Passengers Per Week Day 1,460,000
Passengers Saturday 690,000
Passengers Sunday 346,000
EMM LARGER STATIONS

Germiston 94,000
Tembisa 23,000
Kempton Park 41,000
Oakmoor 25,000
Leralla 28,000
Daveyton 27,000
238,000
TICKET PRICES
Single fare shortest distance R3.50
Single fare farthest distance R8.50
Weekly fare R17.00
Weekly fare R35.00
Monthly fare R60.00
Monthly fare basic metro class R127.00
Source: Gautrans/Metrorail/SARCC Census 2002
Intersite owns and manages stations and traction (track and associated signals and control
systems). Electricity payments by Intersite are presented in Table 31 overleaf. Electricity
consumption for Intersite railway operations in Ekurhuleni cost was of the order of
R1 450 000 in 2003.

Table 31 Intersite electricity payments for railway operation
STATION ELECTRICITY
Springs 'MARCH 2004 26,0722
Kempton Park + Tembisa 154,567
Alberton Jul 03 to Jun 04 109,421
GREATER BENONI (Stations) April 2003-Mar 2004 3,022
GREATER GERMISTON 587,415
BENONI
Northmead Station 33
Benoni station and signals 16,333
Dunswart -
Dunswart 487
Van Ryn Station 163
BOKSBURG
Boksburg Station 2,134
Boksburg 4,586
Dunswart 4,897
Boksburg -
East Rand 4,724
Knights 6,709
GERMISTON
Wadeville station standby 521
Germiston station 1,128
Germiston station 342
Gosforth Park
Simpan station standby
President station
Driehoek signals standby 1,261
Wadeville station standby -
India station signals standby supply
Germiston signals standby supply
Elsburg station signals
Elandsfontein signals standby 361
Germiston staion
Elsburg station standby 1
Ravensklip station 1,210
Wadeville station 4,523
Elsburg station (Perway workshop) 5,783
Germiston Branch Road 5,550
Elandsfontein 256
Germiston New Account Snet 74
Signal standby Kempton Park
Kempton Park (Perway) 5,330
Kaalfontein station 33,953
Oakmoor 10,458
Tembisa 5,151
Kempton Park 2,882
S.A.R. signal room SPRINGS 142
ALBERTON 1,987
TOTAL (Monthly) R 120,980

5.3.7.4 Bus transport
Three types of subsidised bus operators currently operate inside the boundaries of the
EMM as follows:
1) Municipal operators:
Local authorities own these services. There are three municipal operators in EMM:
Brakpan Bus Company
Boksburg Bus Services
Germiston Bus Services.
Brakpan Bus Company transports mainly workers (98%) between Tsakane and destinations
in Brakpan and Springs. Boksburg Bus Services renders a scholar transport service,
specifically during the early morning and early afternoon peak periods. The distribution
between scholars and workers/casuals in the case of Germiston Bus Service is much more
balanced, compared with the Brakpan and Boksburg services. Of all passengers
transported, 39 per cent are scholars, while 61 per cent are workers and/or casuals.
Service rendering is extremely wide, covering amongst others areas such as Katlehong,
Boksburg, Primrose and surrounding areas, Rondebult, Klopper Park, Gerdview, Sunny
Ridge, Leondale, Els Park, Wadeville, Isando, Malvern East and Johannesburg CBD. These
bus services differ drastically in extent and nature in terms of operational, financial and
infrastructure needs.
Of EMM’s total vehicle fleet of 3 995, the municipality owns/hires 113 buses. The petrol
and diesel consumption of this fleet was not available. EMM have 101 municipal buses and
as a result of 12 buses being destroyed by fire, have hired 10 from Putco to cover their
route.
The roads transport and civil works department of EMM have highlighted the challenges
facing the EMM bus operation service as the growing financial burden which is presently
running at an R18 million deficit; The inability of these buses to handle peak hour traffic
leads to overloading and sometimes under utilization as passengers seek other modes of
transport as this fleet old and unreliable; The bus service is controlled by three different
municipal services with different operating systems and structures, with no uniform tariff.
This department envisages a way forward as service restructuring, amalgamation of
services, revenue protection, fleet safety audit, review of the fare structure and
implementation of a uniform service for these three municipalities controlling these fleets.
The municipal bus fleet has carried 2 839 578 passengers between July 2003 and June
2004, within the limited operating area of Germiston, Brakpan (Tsakane) and Boksburg.
2) Privately owned subsidised operators: These are private or publicly listed
enterprises with ownership in the hands of individuals or shareholders. PUTCO operates the
following business units within the boundaries of the EMM: PUTCO Soweto, PUTCO
Ekangala, PUTCO Comuta; and J.R. Choeu. These business units are mainly subsidised by
the Provincial Department of Public Transport, Roads and Works (GAUTRANS). In total,
313 peak buses (30 from the former KMC area) operate 829 trips over 560 routes and
carry approximately 37 000 passengers per day in the morning peak.
3) Private non-subsidised services: These are rendered on a contract basis to various
private clients and are not subsidised by any authority. Examples are Megabus, a division
of Unitrans, which is contracted by ESKOM to transport workers, and which operates
between Tembisa and Megawatt Park and Choeu Express with contracts for private
services between Tembisa and Midrand, Edenvale and Alrode.
Road conditions in some of the residential areas are poor, as are passenger facilities.
Passenger information is also poor, as evidenced by the difficulty in establishing accurate
supply information. There is no co-ordination of services between the entities, limited

service between municipalities within the EMM area, but substantial cross-boundary
movement between the EMM and the City of Johannesburg. The rationalisation of bus
services and the subsidisation of bus passengers is receiving EMM’s attention. The
municipal bus operators are experiencing growing competition from the taxi industry on the
shorter routes. The current operators do not serve the EMM community as a whole, and
expectations do exist for the bus service to be extended to those areas that are currently
not served by municipal bus services. Such a move would in turn dramatically increase the
financial burden on the EMM.
5.3.7.5 Mini-bus taxi service operations

In line with the adoption of the “one town, one association” policy, most of the former
municipalities in the EMM area (with the exception of Kempton Park and a few others)
have only one taxi association. There are about 15 long distance taxi associations
operating from within EMM leading to a total of 35 taxi associations operating in the
region.
The Mini-bus Taxi survey (CPTR project) was conducted during one month in
February/March 2002. The following are the most significant findings that is related to the
use of energy:
There are over approximately 11 280 minibus taxis operating in EMM (the taxi
associations confirm that in 2004 there are over 18 000 taxis operating in EMM)
A total of 30 170 taxi trips were made during the morning and afternoon period
A total number of 381 919 passenger trips were undertaken in this period
The average vehicle occupancy is 12.7 passenger per trip, reflecting an average vehicle
utilisation of about 84%, assuming the average vehicle capacity is 15 passengers
Each vehicle undertakes on average of 2.7 trips per taxi vehicle during the two peak
periods, which increases to about 3.3 trips per day per vehicle
The total EMM area is under pressure, as more than 50 per cent of all routes are over
supplied
The most critical areas of oversupply are Brakpan and Nigel.
The taxi associations are effectively acting as the regulatory authority for their respective
operating territories, which they protect at all costs. This often results in forced transfers
for passengers at municipal boundaries and the need for additional capital costs for ranks
to facilitate such transfers. Except in isolated cases, supply generally exceeds demand.
This over-trading, coupled with a flat fare structure regardless of distance travelled,
contributes to a lack of financial viability.
EMM has 22 Taxi Associations, five of which are long distance transport (i.e. they travel the
inter-provincial route) and the remaining 17 are local, with some travelling to
Johannesburg and Pretoria. A list and contact details of these association is provided in
the Compendium. As of August 2004, these associations had 18 000 vehicles and carry a
minimum of 450 000 passengers per work weekday during peak hours (6 am to 8 am and
15:30 to 20:00). Each minibus consumed a minimum of R300 of petrol per day at August
2004 prices, resulting in a total minibus petrol consumption of R5 400 000 of petrol per
day.
5.3.7.6 Road based private transport

Private transport is the dominant mode of transport in EMM. The Africon Transportation
Model (still in preparation) indicates there are a total of approximately 300 000 private
vehicles travelling in Ekurhuleni (includes travellers from external origins and those heading
to external destinations) during the peak morning rush hour (06:00 to 09:00). In order of
magnitude terms, the model shows that during rush hour, about 26 000 vehicles travel to
Ekurhuleni to internal destinations, and about 46 000 vehicles travel from Ekurhuleni to

external destinations. The study has not examined passenger vehicles by fuel type or type
of vehicle.
5.3.7.7 Johannesburg International Airport

The property is controlled by the Airports Company of South Africa (ACSA) – a subsidiary of
Transnet. Table 32 below provides energy consumption information.
Table 32 Energy consumption at Johannesburg International Airport

JOHANNESBURG INTERNATIONAL AIRPORT
Isando - Super Freight - North SAPO - East
Substation
Substation Substation Substation
Total kWh (Jan - Dec 2003) 94,765,909 23,483,811 3,851,320
Highest Demand kVA (Jan -
17,520 19,268 831
Dec 2003)
5.3.7.8 Energy use

The modal split for liquid fuel use in the transport sector in South Africa is reflected in
Table 33. Road transport is by far the major energy user as it accounts for 85% of the use
of the total sector. Air transport (6% international, 5% local) and rail accounts for small
percentages of the total use. These figures are not available for EMM.
The second last line gives the use of transport energy in EMM, which amounts to 8.1% of
the total for liquid fuels used in the transport sector and 0.1% of electricity used in this
sector. These relationships are not fully understood and have not been studied in depth.
Table 33 National and EMM use of energy in the transport sector, TJ in 20015.
Liquid % of
Transport sector Coal Electricity Total
fuels total
South Africa
International air transport 37 840 37 840 6%
Local air transport 28 978 133 29 111 5%
Road 525 978 79 526 057 85%
12
Rail 67 8 160 19 601 27 828 4%
Pipeline 182 182 0%
Total 67 600 956 19 995 621 018 100%
% of total 0 97% 3% 100%
Ekurhuleni
EMM total 0 48 525 21.6 48 546
EMM as % of national total 0% 8.1% 0.1% 7.8%
5.3.7.9 Current developments and plans

An Integrated Transport Plan (ITP) as prescribed by both the new National Land Transport
Transition Act and the Local Government Transition Act is under development. In addition
an Operating License Strategy (OLS) is under development that addresses the role of each
transport mode, the use of public transport facilities, the avoidance of wasteful
12
Includes 7067 TJ that is listed under “Transport non-specified”.

competition, the conditions that needs to be imposed by the operating licenses and
balancing the demand and supply of minibus-taxis service. These are rolling activities and
progress is made on a continuous basis.
EMM has also commissioned a study on regional land use with an associated transportation
demand model which addresses specific needs within the context of the National Land
Transport Transitional Act, with inference made into the Provincial Planning Framework and
its focus on public transport. A detailed household survey was carried out under this study,
being carried out by Africon, in order to identify the various types of travellers and
establish typical itineraries. The model produces Origin-Destination matrices for different
types of travellers, as shown in Figure 20.
Figure 20 Scheme of the EMM transport model
Inhabitants Activity chains

by population Trip Generation By population
group group
Activity model
Separation
Matrix by activity
Attractiveness
Trip distribution data of zones
Matrix of PuT
quality
Destination choice model
Total Trips O -D matrix,

total trip chains
Distance
matrix
Travel cost
Access + matrix by
Egress time mode
Modal split
matrices
Travel time
Additional matrix by
Mode matrices mode
Multinomial LOGIT Model
O -D matrix O-D matrix O-D matrix O-D matrix O -D matrix

on foot car taxi train bus
The study is expected to be available by end October.

5.3.7.10 Energy efficiency in transport
The efficient use of energy in transport is a complex topic that has not as yet received
much attention in South Africa. The IEA inter alia reviews this topic13 and states “transport
presents one of the biggest challenges to policy makers”. It separately reviews passenger
and freight transport as different conditions apply and indicates that cross country
comparisons and trends are in most cases not possible because of the different conditions.
The study indicates that a number of factors are of importance. These include:
Structural in the form distance travelled, quality and congestion of roads;
Availability, convenience and cost of public transport;
Vehicle characteristics, how they are used and fuel choice; and
Cost and therefore the affordability of the different modes of transport, including where
applicable capital and operating costs.
In a later publication14 the IEA states “…trends in transport energy use and greenhouse
gas emissions in IEA countries are currently on an unsustainable path…Most forecasts
indicate that these trends are not likely to change significantly in the coming years without
substantial new policy initiatives”. Government policies have been and are used in most
countries to modify some of these factors, in South Africa mainly the use of fuel taxes on
liquid fuels. The DME in its draft energy efficiency strategy15 refers to fiscal policies (mainly
the fee bate16), regulations/standards/codes of practice, public information programmes
and programmes to change transport infrastructure (moving from road to rail) and the
demand placed on it by users (spatial planning).
5.3.7.11 Gaps, constraints and issues

Extensive gaps exist on disaggregated data on transport energy use linked to the activity of
that part of the transport sector. Activities will have to be expressed in kilometres travelled
for the different vehicles types cross-correlated with the passengers or freight transported.
Trends over time are not possible at this stage.
The major issue is to what extent the integration and coordination of the different
transport systems that are taking place will address the issue of energy use and therefore
the influence of air pollution and greenhouse emissions.
5.4 Constraints and issues
Constraints experienced on sourcing data from local government institutions and respective
modes of transport were the unavailability of the relevant personnel handling such data.
Some of those who were present, promised to send the information and had to be followed
to do so.
EMM’s Department of Health undertook to coordinate the collection of data from all
health institutions, however when the information was provided no statistics were
included. The Department advised that all these institution use only electricity and
no other forms of energy, such as diesel or petrol. This does not address the
question of alternative sources of energy, e.g. during power failures.
Most of EMM’s energy data is administered by the Department of Public Works. It
was not possible to contact the relevant personnel in the Department during the
course of the project.
13
IEA, The Link between energy and human activity, 1997.
14
IEA, Toward a Sustainable Energy Future, 2001, page 151.
15
DME, Draft energy efficiency strategy for the RSA, April 2004.
16
The license fee related to the fuel efficiency of the vehicle.

6. ENERGY SUPPLY
This section deals with energy supply by carrier, i.e. by fuel type.
6.1 Liquid fuels

6.1.1 Supply chain
At present there are seven refineries in South Africa. Of these, four are of conventional
design as they convert mainly imported crude oil to a series of refined products (Cape
Town, two in Durban and Sasolburg), one uses natural gas as the feedstock (Mossgas) and
two use coal and are termed synfuel plants (Secunda). These refineries produce a range
of products to satisfy the market demand. In addition, they export surplus production as is
determined by the technology of the specific refinery and the demand of the local market.
Most of these refined products are transported by means of pipelines to main depots where
the marketing components of the fuel companies takes ownership and transports to
depots, resellers and filling stations by means of road or rail tanker. It is therefore not
possible to identify the source of a specific product. Sales in EMM would most possibly
come from Sasolburg, Secunda and possibly Durban.
The South African LPG distribution chain shown in Figure 21 below is a typical petroleum
supply and distribution chain. Gauteng is the major consumer of LPG, but mostly for
industrial and other commercial enterprises.
Figure 21 Industry structuring and market share of LPG
Source: DME & UNDP (2004)
The LPG distribution is not as long and complex as the paraffin distribution chain (shown in

Figure 22) and often does not extend as close to homes as would be desired. One
assumption is that this situation is due to the greater safety requirements associated with
LPG handling. Routers (bulk distributors), which are financially supported by oil companies
to set up their operations, are responsible for distributing paraffin to retailers.
6.1.2 Distribution and Marketing of Liquid Fuels

Liquid fuels are marketed by a variety of channels, from direct in the form of large
contracts by large consumers to marketing via service stations and other resellers. Table
34 provides this breakdown.
Table 34 Marketing of the different liquid fuels in EMM, kl in 2003
Furnace
Marketing channel Petrol Diesel Avgas IP LPG Total % of total Jet
oil
Service stations 949,645 145,113 389 969 194 1,096,310 66%
Other resellers 17,640 92,088 51,425 58,959 220,112 13%
Farmers 3,631 54 3,685 0%
Co-ops 270 11,170 4,728 1,554 17,722 1%
Other commercial 10,463 55,105 43,584 2,797 10,481 122,430 7% 1,063,638
Central government 389 641 1,031 0%
Local government 4,056 5,479 9,535 1%
Transnet 342 5,638 5,980 0% 427,994
Mining 418 5,944 12 6,375 0%
Constriuction 467 12,919 314 13,699 1%
Buses 1,014 9,751 10,764 1%
Road trucks 6,857 140,797 116 147,770 9%
Total 991,560 488,277 5,117 43,584 57,241 69,634 1,655,412 100% 1,491,632
% of total 60% 29% 0% 3% 3% 4% 100% 90%
As can be seen in Table 34, the most important marketing channel is by means of service
stations (66% of total sales), followed by “other resellers” (14%) and the direct marketing
to larger companies as “other commercial” and “road trucks”, both 8% of the total.
6.1.2.1 Distribution and Retail of Petrol and Diesel

Service stations are approved on a roster basis to ensure that all parts of the country are
provided with an efficient system of fuel supply and to guard against the proliferation of
service stations. Local authorities are responsible for local approvals in terms of land use
approval, vehicle access to sites and health and safety in terms of local and national
regulation.
6.1.2.2 Distribution and Retail of Illuminating Paraffin

Paraffin can be purchased from a number of outlets, the most common being informal
spaza shops and individual homes, formal supermarkets and filling stations. The degree of
accessibility varies from one area to another. To a large extent this established paraffin
distribution network has worked well in promoting the use of paraffin in poor communities.
On the other hand, the long paraffin distribution network works to the disadvantage of the
final consumer, as shown in Figure 22).
Even when the refinery price of paraffin is reduced and/or zero-rated for VAT, this normally
does not filter through to the final consumers. The major beneficiaries are the various
distributors, intermediaries in the distribution chain and a few bulk-buying households.
Since many poor households purchase paraffin in small quantities, they often do not realise
the benefits of price reduction since they are likely to have bought their IP supplies from
small spaza shops or private homes selling paraffin to supplement income.

Figure 22 A typical complex paraffin distribution chain
Final
Consumer
Major
Retailers
Refinery (& other Small
small Retailers
routers) (Spaza
shops)
Depots
Routers Private
Homes
Medium
size
retailers
6.1.2.3 Distribution and Retail of LPG17

Compared to other similar economies, South Africa has the least penetration of LPG in the
residential sector, as shown in Table 35. Some of the reasons for this are the
corresponding cheap price of coal-generated electricity, as well as the unusually high price
of LPG. In Botswana, LPG is significantly cheaper than in South Africa.
Table 35 Comparison of LPG consumption in emerging economies
Source: DME & UNDP (2004), www.langegas.com/statwle.htm
6.1.3 Petrol and Diesel

Both fuels are used mainly in vehicle transport; diesel is also used in power production.
South Africa is a net exporter of both petrol and diesel. Diesel is denser than petrol and
has a lower calorific value, and internationally is generally less expensive on a volumetric
basis. As shown in Table 34, the consumption of petrol and diesel in Ekurhuleni was
17
Most of the data and analysis adapted from DME & UNDP (2004): LPG Rural Challenge Workshop, South
Africa – Workshop Background and Briefing paper.

991 560 kl and 488 277 kl respectively in 2003. Comparison with Figure 5 shows that
diesel consumption in Ekurhuleni is still proportionately lower at 49% of petrol consumed
than the national trend of diesel consumption increasing from 53% of petrol consumption
in 1992 to 62% in 2001.
In environmental impact terms, the burning of petrol in an internal combustion engine
produces more carbon dioxide than does diesel, which in turn produces more NOx and SOx
than petrol. With improving diesel refining techniques, sulphur levels are being reduced,
thereby improving the overall profile of diesel as a transport fuel in comparison to petrol.
6.1.4 Illuminating Paraffin

Paraffin is very similar to jet fuel in chemical composition. It is sold in bulk liquid format
usually from fixed storage tanks or small, portable 200, 20 or 5 litre drums. Although it is
often mistaken as water, it is highly toxic, highly flammable and has a very low viscosity.
Nearly 800 million litres are manufactured and sold each year nationally (Truran 2004).
About 92% of the illuminating paraffin (IP) used in the East Rand is consumed by
households. Smaller amounts of IP are used by Industry/Construction and Agriculture. A
full breakdown is provided in Table 36.
Table 36 Sectoral Demand for Illuminating Paraffin in Ekurhuleni
Sector Consumption, %
Households 91.6
Industry/Construction 5.4
Mining & Quarrying 0.0
Agriculture 2.8
Transport 0.2
Total 100.0
This is expected, considering the fact that IP is predominantly used for lighting and cooking
in comparatively less affluent households. The subsidy put on IP by the Government
through exemption from VAT encourages its use by households with relatively low
incomes.
Recently, campaigns have been mounted to improve the safe use of paraffin by the
Paraffin Safety Association. Interviews conducted with experts suggest that accidents
caused by IP emanate from ingestion by children as well as accidental knocking-over, in
particular, during the night. Most fires and burns in poor settlements have been attributed
to the use of paraffin. As indicated elsewhere in this report, the DME is promoting LPG and
other low-smoke fuels (coal) in order to minimise the use of paraffin, due to its toxicity
when ingested, ease of spreading fires and illicit use by farmers through mixing with diesel.
Paraffin appliances are usually more affordable, albeit substandard. The SABS has recently
launched a campaign to improve the quality of paraffin stoves.
6.1.5 Liquefied Petroleum Gas (LPG)

The terms LPG and LNG are related and are sometimes used interchangeably (erroneously)
in South Africa. For clarity, the terms are defined below.
LPG consists primarily of propane, propylene, butane, and butylene in various mixtures. It
is derived from natural gas deposits and is also produced in the crude oil refining process.
It is stored as a liquid by increasing pressure. LPG is the generic name for commercial
propane and commercial butane.

Natural gas is primarily methane, and other hydrocarbons (including propane and butane),
water, carbon dioxide, nitrogen, oxygen and some sulphur compounds. Liquefied natural
gas (LNG) is natural gas that has been cooled to -259 degrees Fahrenheit (-161 degrees
Celsius), at which point it is condensed into a liquid which is colourless, odourless, non-
corrosive and non-toxic. During the liquefaction process, natural gas is cooled below its
boiling point, removing most of these other compounds. The remaining natural gas is
primarily methane with only small amounts of other hydrocarbons. In South Africa, the
source for natural gas is the offshore field just south of Mossel Bay.
The major consumers of LPG in Ekurhuleni are households, commerce and
industry/construction with demand figures of 43%, 15% and 42% respectively as shown in
Figure 23 below. The relatively low consumption figure for industry/construction is
because this sector relies more on electricity, piped gas and cheaper liquid fuels for its
energy requirements.
Figure 23 Sectoral Distribution of LPG in Ekurhuleni
Commerce
Households 43% 42%
Industry/Construction 15%
There are plans to accelerate the use of LPG in the residential sector, particularly in low
income households in order to reduce the use of dangerous IP. A strategy is being
developed by the DME to roll out LPG, and it is envisaged that municipalities will play
a key role in implementing the LPG strategy.
6.1.6 Policy and regulatory context

Government has for many years regulated parts of the liquid fuel sector. At present the
refinery gate price of petrol, diesel, IP and LPG is controlled, as is the retail price of petrol.
These prices are based on the international crude oil price and are adjusted monthly.
6.1.7 Liquid fuel pricing

The government uses a recently introduced formula, the Basic Fuel Price (BFP) 18 to
calculate liquid fuel prices. The BFP is an import parity pricing formula based on spot
prices, introduced to replace the in-bond landed cost (IBLC) formula in use in South Africa
from the 1950s to 2003, which calculated the cost of landing the product at specified South
African ports, based on posted prices from a basket of four foreign refineries (one in
Bahrain and three in Singapore). The objective of using import parity pricing is to match
the cost of importing finished product.
18
This a system or methodology which was implemented in April 2003, and based on the revised import-
parity pricing for determining a refinery gate price, and a rate-of-return mechanism to calculate the
wholesale price and cost recovery for retail margins. Therefore, BFP price is not really a regulated
price at the refinery gate since refineries are not legally bound to sell their products at this price.

Figure 24 Composition of the Retail Price of Petrol and the Wholesale Price for
Diesel and IP in Gauteng for the period 01/09/2004 30/09/2004
Source : http://www.shell.co.za/vpower/pprice.htm
6.1.7.1 Petrol, Diesel and IP Prices

The basic price of petrol is based on 50 per cent Platts’ (a price reporting agency) spot
price assessment in the Mediterranean refining area and on 50 per cent Platts’ spot price
assessment in Singapore. (The IBLC formula was based on 80 per cent posted prices at
refineries in Singapore and Bahrain and on 20 per cent spot prices in Singapore). The basic
prices of diesel and illuminating paraffin are based on 50 per cent Platts’ spot price
assessment in the Arabian Gulf and on 50 per cent of Platts’ spot price assessment in the
Mediterranean area19.
Table 37 Prices for liquid fuel products, 2003

Petrol Diesel IP
retail wholesale wholesale
393.1 338.9 248.3
Average price, c/litre
361 298.9 209.3
Minimum price (June 2003)
426 391.9 294.3
Maximum price (April 2003)
6.1.7.2 LPG Price

At present the retail price of LPG is not regulated. The price of LPG is controlled and
regulated by the DME at the refinery gate, by the imposition of a maximum transfer price,
based on the BFP formula for Mossgas 93, less R75 per tonne.
19
The IBLC formula was based on 80 per cent posted prices at refineries in Singapore and Bahrain and on
20 per cent spot prices of refineries in Singapore. (These prices are sourced from
http://www.transportandconstruction.co.za/press/press200029.html )

The nominal refinery gate price is based on the IBLC. The current maximum refinery
gate prices of LP Gas are R2,348 per tonne at the SAPREF, Engen, Calref and Mossgas
coastal refineries and R2,676 per tonne at the Secunda inland refinery.
The current retail price as indicated by one of the major companies is R49.92 per 9 kg
fill (coastal) and R54.41 per 9 kg fill (inland), which equates to R5,547 per tonne
(coastal) and R6,046 per tonne (inland).
Added to this, resellers can add approximately R30 to a 9 kg fill (R79 to R84 per 9 kg
fill). This equates to R8,880 per tonne (coastal) and R 9,379 per tonne (inland). It is
clear therefore that a very significant part (around 70%) of the retail price is made up
of distribution costs and margins. It should be noted that some retail outlets sell 9kg
cylinders at R65, including VAT.20
Table 38 Price build up from supply to end-use
While LPG is not a controlled product (meaning that its retail price remains unregulated),
the DME is considering regulating the price using petrol-related import parity pricing, but it
is not clear whether regulating the price would contribute to lower prices to the consumer.
The experience, for instance, with the removal of VAT in the retail price of IP is not entirely
satisfactory. The commissioned National Treasury study (CIS 2004) reveals that the
“subsidies have not reached the beneficiaries”. It is anticipated that a regulated LPG retail
price will face the same problem and the biggest challenge would, as with IP, be the
“policing” the price or at least communicating the price to the consumers.
6.1.7.3 Illuminating paraffin price

VAT is not applied to paraffin sales. Paraffin is a regulated product and the DME sets the
maximum retail price monthly. The current regulated price of paraffin is R 2.05 per litre
(coastal) and R 3.03 per litre (inland), however it is reported that these prices are not
enforced.
6.1.8 Trends and developments

It has been indicated that transport energy is the major energy user in EMM. It is
therefore also the major energy related pollutant as the pollution takes place at the point
of use. The South African government plans to supply clean petrol and diesel as from 2006.
The various transport planning and rationalisation activities will also lead to a more efficient
transport sector with lower energy use. Two topics that also need to be addressed are the
use of low energy use bicycles and pedestrian transport, both of which have very specific
planning and legislation and implementation implications. They at present are
administered in a very ad hoc fashion with significant consequences in terms of lack of
safety.
20 Much of this analysis is based on the recently completed study by the CI Services (LTD) Pty (March
2004), “The LPG Rural Energy Challenge: South Africa LPG Industry Report”.

Extensive new transport technology developments, such as the highly efficient hydrogen
vehicle, are expected during the next decade. These developments will have to be
monitored and addressed in terms of infrastructure and policy when they become a
commercial reality.
6.2 Pipeline gas

In 1964 Sasol Gas as it is known today was established and started with the construction of
its first pipeline to supply hydrogen rich gas to industrial consumers in Gauteng from the
Sasol works at Sasolburg. This pipeline was completed in 1966 at a cost of R30 million and
connected 250 consumers to the network. A second back up pipeline of 95 km was
constructed in 1981 that connected the Secunda plant to the gas network at Springs. At
present Sasol Gas supplies in excess of 700 industrial customers in Gauteng and
Mpumalanga via a pipeline network in excess of 1400 km from the production plants at
Sasolburg and Secunda. Since 1998, pipeline gas is also supplied to KwaZulu Natal via a
Petronet pipeline. The gas pipeline consists of a ring that connects Alrode, Germiston,
Wadeville, Lilionton, Elandsfontein, Isando, Spartan, Tembisa, Olifantsfontein, Geduld,
Springs, Nuffield, Nigel, Brakpan and Boksburg/Benoni.
6.2.1 Developments at the national level

Sasol has initiated delivery of natural gas from the Temane gas field in Mozambique via the
Temane-Secunda gas pipeline. The DME’s view on the impact of this additional carrier in
the South African energy market, as expressed in the Integrated Energy Plan, is
reproduced below:
“With respect to forthcoming new primary energy supply, it is pertinent to state
that natural gas is scheduled to be delivered to South Africa from Mozambique
during the year 2004. The initial capacity of the gas transmission pipeline is 120
MGJ per year. To place this into perspective, the 120 MGJ per year is equivalent to
approximately 3800 MW, which assuming a 50% conversion efficiency to electricity,
is equivalent to 1900 MWe or approximately one half an Eskom (“six pack”)
electricity generation station. Approximately one third of the natural gas coming
from Mozambique is scheduled to be used by Sasol as a replacement for coal as a
feedstock, another one third is scheduled to replace syngas in Sasol’s existing gas
market, and the remaining one third is to go into Sasol’s expansion of the gas
market.”
The Government has been considering mechanisms for encouraging SMMEs to engage in
the gas business, as spinoffs from the pipeline. The Government has also looked at the
potential for the introduction of natural gas to derive Clean Development Mechanism
(CDM) credits through a Central Energy Fund (CEF) project funded by the Public Private
Infrastructure Advisory Facility (PPIAF) of the World Bank.
6.2.2 Piped gas in EMM

The consumption of pipeline gas in 2003 in Ekurhuleni is indicated in Table 39. The largest
consumer group is manufacturing with 139 customers but this is made up of generally
small consumers as the average use per customer is the lowest. In terms of the use of gas
“Mining and non-metallic” and “Metals” are the largest, also in terms of the average use
per customer. The table shows that households are not reticulated with pipelines supplying
gas in EMM.

Table 39 Supply of Pipeline Gas in 2003
Use per
Number of Use in
Sector % of total customer
customers 2003 (GJ)
(GJ)
Metal 109 3,794,680 32% 34814
Mining & Non-
28 4,680,985 39% 167178
metal
Chemical, Pulp,
52 1,615,427 13% 31066
Paper
Manufacturing 139 971,157 8% 6987
Food &
35 891,352 7% 25467
Commercial
Total 2003 363 11,975,634 100% 32991

The enactment of a Gas Act in 2002 that makes provision for the appointment of a natural
gas regulator, the crafting of Petroleum Pipeline Bill and the National Gas Infrastructure
Development Plan provide an enabling environment for the growth of the gas industry in
the country. These developments are sequel to the key policy challenges in the White
Paper on Energy Policy of 1998. The key policy objectives are for the development of the
gas industry to stimulate inter-fuel competition, provide relatively lower gaseous emissions,
present greater options for industrial thermal applications and increase the diversity of fuel
supplies, hence improve South Africa’s energy security. For granting Sasol a monopoly
(First Gas), the Government has instituted a price cap on piped gas from Mozambique for
the next ten years. It is possible that the piped gas industry will be deregulated after 10
years.
6.2.4 Pricing
Sasol Gas uses a market value pricing mechanism. This is defined as equating the price of
gas to that of the import parity price of the mix of logical alternative energy carriers as
calculated in October each year and is then differentiated on a volume basis. These prices
for 2003 are given in Table 40. At high levels of consumption, above 400,000 GJ per
annum, prices are negotiated.
Table 40 Price of Sasol Gas in 2003
Consumption, GJ Price
per annum (R/GJ)
0-5000 87.19
5001-15000 79.22
15001-40000 71.57
40001-10000 62.3
100001-400000 54.05
More than 400000 46.2

With the piping of natural gas from Temane, Mozambique, to Secunda, South Africa,
starting from February 2004, the pipelines that transported coal gas from Secunda to EMM

are being converted to transport natural gas. It is envisaged that residential areas will be
reticulated to enable them to utilise natural gas.
6.3 Electricity
5.3.1 Supply purchases
EMM purchases most of its electricity from Eskom, mainly on the Megaflex time-of-use
tariff. A total of 34 Megaflex, 13 Nightsave and 3 Miniflex accounts exist that are related to
dedicated supply points. For the month of March 2004 the Megaflex accounts varied from
1.7 MW (Clayville) to 112 MW (Boksburg North), R85,000 to R7.9 million and load factors
of 38% (Kwa Thema) to 91% (Boksburg Mapleton).
Total EMM purchases from Eskom and CityPower in 2003/4 amounted to 10 528 929 MWh
as indicated in Table 41. Eskom provides directly an additional 3 870 008 MWh to
consumers (i.e. small and large power users and key consumers) within the EMM
boundary. Please note that we obtained only the Eskom sales figures to these customers.
We have therefore estimated the Eskom purchases by assuming a 9% loss.
Table 41 Electricity purchases in 2003

Type of sale MWh % of total
Purchases from Eskom 9 753 910 68%
Purchases from City 775 019 5%
Power
Eskom sales to Key 3 870 008 27%
consumers and large
and small power users
Total 14 398 937 100%
Source: EMM and Eskom, 2003
These are outlined in Section 2.
6.3.2 Tariffs
EMM has developed a set of tariffs that follow the example of Eskom in including time-of-
day and seasonal components. This followed a period of rationalisation of the individual
tariffs of the constituent municipalities that culminated in these standard tariffs. The
present tariffs came into force on 1 January 2004 and are summarised in Table 42.

Table 42 Summary of EMM electricity tariffs21 in 2004, excluding VAT.
TARIF FIXED
CONSUMPTION DEMAND22,
F DESCRIPTION CHARGE PER 22 OTHER
, ¢/kWh R/kVA/month
NAME MONTH
Low consumption
A Nil 36.05/38.01 Nil Use reduced by 50 kWh/month23
household
Medium to high
B consumption 78.86c/A 28.51/30.5 Nil Ditto
household
Bulk supply above
25 kVA for large
C household, R256 to R1025 13/16.82 47.74/53.58 Ditto for households
business and
industry24
24.69/16.35/
Bulk supply above 12.34 summer26,
D R1025 14.07
500 kVA24,25 80.6/23/27/
13.79 winter
Rebate when called to do so of
Contracted load
E As Tariff C As Tariff C As tariff C 13% on both the demand and
shed 27
consumption charges
Based on data of six of the nine municipal distributors, Tariff A accounted for 5.1% of
electricity sales, Tariff B for 25.4%, Tariff C for 62.4% and Tariff D for 7.1% and no sales
occurred for Tariff E. Specific comments on this schedule are:
The advanced tariff design principles that have been incorporated.
The choice of households between tariffs A or B and of industry and commerce
between tariffs C, D and to a certain extent tariff E, provided specific size restrictions
are satisfied.
The incorporation of the FBE subsidy23 of a free block of 50 kWh per month for all
households users.
The price signal that is conveyed by season for households and industry/commerce.
The purpose is to motivate the use of other energy carriers for especially heating so as
to reduce the demand for electricity in winter.
The price signal that is provided for industry/commerce for the time-of day as is caused
by the national load curve that leads to peak and off-peak demand periods.
Extensive potential exists for users to reduce electricity costs by applying energy
efficiency and demand side management principles.
It is not known to what extent these tariffs are cost reflective.
21
EMM, Schedule of tariffs for the Supply of Electricity, January 2004.
22
The first figure refers to the summer months of September to May and the second figure to the
remaining winter months
23
This is the Free Basic Electricity (FBE) subsidy that government introduced in July 2003.
24
Rebates of 1% to 5% apply for supply voltage and load factor.
25
A conversion surcharge of 80%, 60%, 40% and 20% of the financial saving is added during the first
four years.
26
These figures refer to peak, standard and off peak hours respectively where different schedules apply to
weekdays, Saturdays and Sundays.
27
No load factor rebate.

It is also not known how users are advised on which of these tariffs is the most suitable
and methods on how costs can be best minimised by scheduling operations as a
function of time-of-day and of season.
6.3.3 Income profile

Table 43 reflects the total sales by Eskom and EMM for the period 1 January to
31 December 2003. The total electricity sales amounts to R2,8 million. The average price
varies from 14 ¢/kWh for low usage households to 29¢/kWh for agricultural with an
average of 22 ¢/kWh. The estimated average price for all consumer levels varies from 19
¢/kWh by Eskom to 23 ¢/KWh by EMM. The low price for low usage households does not
relate to the tariff, and may be caused by non-technical losses in the form of payment
boycotts.
Table 43 Billing profile

ESKOM EMM TOTAL
CUSTOMERS REVENUE REVENUE REVENUE
¢/kWh ¢/kWh ¢/kWh
(R’000) (R’000) (R’000)
Household low 135 551 14 135 551 14
usage
Household 66 179 33 660 146 27 726 325 27
Agriculture 34 734 29 13 430 29 48 164 29
Mining 159 060 16 23 012 13 182 072 15
Manufacturing 289 801 18 1 164 342 24 1 454 143 23
Commercial 36 602 23 152 215 27 188 817 26
General*** 51 850 21 51 850 21
Total 586 376 19 2 200 546 23 2 786 923 22
Source: Eskom, Individual Municipalities and own calculation
6.3.3.1 Consumption and billing profile by Customer Care Centres (CCCs)
There is significant variation in the amount of energy sold and the respective income per
unit of electricity sold in the various municipal distributors, as reflected in Table 44. These
range from 2% to 23% of the total energy sold and 3% to 24% of income for Nigel and
Germiston respectively. Germiston and Kempton Park are the largest distributors. There
are extensive differences between the income per unit of electricity sold. This is
a function of the demand categories that are mainly supplied, the load and the
ratio between fixed and variable charges. This varies from a low of 19 ¢/kWh for
Boksburg to 33 ¢/kWh for Nigel, which has the lowest sales.

Table 44 Electricity sales per municipality28, 2003
% OF TOTAL
SALES SALES % OF INCOME
MUNICIPALITY ENERGY
(MWh) (R’000) SALES (¢/kWh sold)
SOLD
Alberton 1 037 614 12% 217 783 10% 0.21
Benoni 807 341 9% 201 541 9% 0.25
Boksburg 1 167 371 13% 223 332 10% 0.19
Brakpan 339 215 4% 78 537 4% 0.23
Germiston 1 952 311 23% 510 492 24% 0.26
Nigel 174 447 2% 57 687 3% 0.33
Edenvale 661 374 8% 206 516 10% 0.31
Kempton Park 1 501 039 17% 407 980 19% 0.27
(incl Tembisa)
Springs 1 030 661 12% 242 463 11% 0.24
Total 8 671 373 100% 2 146 330 100% 0.25
Source: Individual EMM Municipalities, 2003
6.3.4 Trends and Developments
6.3.4.1 Formation of the REDs

In 1996 government decided to restructure the electricity distribution sector into six
Regional Electricity Distributors (REDs) from Eskom Distribution and the current 189
municipal undertakings involved in electricity distribution. The purpose was to introduce
competition (choice of supplier) and to achieve a higher level of business efficiency within
these larger and more specialised bodies. This in essence means the merger of Eskom and
local government distribution in specific areas and the establishment of national tariffs
regulated by the NER rather than a host of tariffs charged by Eskom and the municipalities.
One of the key preparatory activities has been the ringfencing of electricity from other
municipal infrastructure service functions, such as water and waste management.
Slow but steady progress had been made and in 2003 government set up the EDI
(Electricity Distribution Industry) Holdings Company with the intention of incorporating all
distributors within it and then rolling each RED out as an independent unit as soon as this
is possible. The initiative has led to uncertainty and confusion within the electricity
distribution sector, resulting in a “wait and see” situation wherein investment and new
initiatives are being kept on hold until this action has been completed. However, EDI
Holdings is now starting to secure commitments from municipalities with respect to the
conversion to REDs.
6.3.4.2 Energy Efficiency and Demand Side Management (DSM)

Local electricity departments will have to become directly involved in the efficient use of
electricity in future. This will result from the draft energy efficiency strategy of government
and the draft policy of the NER on regulating energy efficiency and DSM activities29. The
policies will most probably lead to local policies and programmes linked to national
programmes. It will require that energy efficiency and DSM plans be developed and
approved by the NER in order to share in national funding for this purpose. It is also
29
NER, Draft regulatory policy on energy efficiency and demand side management, published for
comment early in 2004.

possible that these activities may become a dedicated component of the integrated
resource plan that the NER anticipates requiring of all distributors.
Other than provided by the signals of the tariffs, especially Tariff D, and the potential for
load shedding, no demand side management activities appear to be in place.
6.3.4.3 Electricity projects planned

A number of electricity projects that are planned or in progress are reported in the Gafney
Local Government Handbook30. A total of 42 projects are listed for the 2001 to 2007 period
for a total amount of R229 million. These consist of reticulation, bulk supply and
refurbishment/upgrading/replacement projects. It is not known at this stage to what extent
the budget provides for these projects and what the respective priorities are. If it is
assumed that these capital expenditures occur in a linear manner, this annual expenditure
is only 1.5% of the income of R2 200 million per annum of this system.
6.3.4.4 Local/independent generation

EMM has no generation facilities, neither is this the case with large users that produce
waste thermal energy that can be converted into electricity in a cogeneration plant. No
IPPs are as yet operational within EMM.
6.3.4.5 Meter verification

Tsekema Consulting is carrying out a project for the audit and repair of credit and prepaid
meters throughout EMM. This project was about 30% complete at the time of preparation
of this report. Results to date show a surprisingly low rate of illegal connections, although
this will be reported on more fully once the audit is complete.
6.3.4.6 Illegal connections

Ekurhuleni is subject to illegal connections (theft of electricity), which generally occur when
a customer has been cut off for non-payment. Illegal connections, a component of non-
technical losses, are also a side effect of payment boycotts, in the sense that some of the
population believe that electricity should be provided free, especially to lower income
groups. The impacts of illegal connections are:
The cost of distributing electricity is not adequately covered by revenues, placing
pressure on the revenue cycle
Too much current may be drawn at one location, causing protection systems to be
activated and loss of supply or reduction in quality of supply to neighbouring customers
Possible injury or death by electrocution for the person carrying out the illegal
connections – and these are often children, since their hands are small enough to
reach into the enclosed spaces of the switchboxes.
6.3.4.7 Vandalism
Vandalism in Ekurhuleni’s electricity subsector is essentially related to theft of copper
conductor from the 400 V overhead lines, through the range of higher voltages and 11 kV
and 33 kV to 88 kV. It was reported that theft of overhead 400 V cable happens on a daily
basis in Benoni. Municipalities generally replace stolen copper cable with aluminium/aerial
bundled conductor, which is less attractive to thieves.
Typical costs associated with the replacement of the stolen cable include:
Low voltage lines at R30/m (in August 2004, 3100 m of cable were replaced in Benoni)
33 kV line at R240/m (2 spans of 800 m were stolen in 2004)
30
Gafney’s Local Government in South Africa, 2002-2004.

However, the theft of cable does not only result in a need to replace the cable with the
corresponding capital outlay, in some cases it also results in a loss of service to the area
served through the cable. Because these crimes usually occur at night and repairs can only
be effected during the day, customers in an affected area experience power cuts during
peak morning hours before the day shift can remedy the situation.
Photo 1 Effects of vandalism at the Van Eck substation in Brakpan Customer

Care Centre
(photo courtesy of EMM Electricity Department)
Photo 2 Closeup of vandalism at Van Eck substation (11kV cable was stolen)
(photo courtesy
of EMM
Electricity
Department)

The impact of conductor theft is therefore multiple:
Loss of reliable power supply, often during peak hours, with associated impact on
customers’ perception of quality of service
Diversion of labour to repairs rather than preventive/scheduled maintenance
Funds which would otherwise be available for e.g. network improvements or job
creation must be used to restore the network
Vandals expose themselves to an extremely high risk of electrocution.
Photo 3 Tragic consequences of illegal access to electricity lines
(photo courtesy of EMM Electricity Department)
As an example, extrapolating the capex related to Benoni’s low voltage conductor

replacements over the year 2004, considering August a typical month, capital outlay for
400 V lines alone will be of the order of R93 000 – the cost of employing a labourer.
Taking into consideration labour costs associated with reporting the theft, following up with
police, procuring replacement materials, dispatching staff to effect the repair, resetting
controls, etc., the total cost is significantly more than the capex only.
EMM CCCs have worked with the South African Police Force to combat this problem under
a project which involved
Teaching scrap metal dealers how to recognize copper wires used for electricity
distribution, so they cannot plead ignorance if caught selling stolen property.
Educating consumers and providing contact numbers on customer bills for vandalism to
be reported.
This project resulted in a temporary reduction in the magnitude of the thefts during the
implementation of the project, however, when the project came to a close, vandalism
increased again.
6.3.5 Gaps, constraints and issues

The process of ringfencing and rationalisation of the electricity activities of EMM is
essentially complete. There are some inconsistencies between supply and consumption
data, which will be addressed to the extent possible with the relevant EMM and Eskom
personnel as the study progresses. EMM personnel pointed out the difficulty of
rationalizing sales information with information from EMM’s financial system. This, coupled
with the fact that EMM personnel are currently constrained to develop their analyses on

spreadsheets on individual computers, points to a potential need for further integration of
technical and commercial data.
The advanced tariff system needs to be supported by active assistance to consumers on
how to use this system so as to reduce energy costs. There appears to be an extensive
potential for DSM activities, but none have been reported other than the actions that will
follow from the tariff design.
No information on supply quality could be obtained, but in common with many parts of
South Africa, it can be assumed that this is either an issue or will become one in the near
future. This is linked to the inadequate investment in the strengthening and upgrading of
networks as a result of the impending formation of the local RED.
6.4 Coal
There are four suppliers of coal in Ekurhuleni:
Chandler
McPhail
Muntu Coal
Express Coal.
Total coal supplied to EMM in 2003 was 149 344 tons for industry, commerce and
households. The suppliers requested confidentiality as to the volume of their annual sales.
These suppliers take orders from clients and source the coal directly from the pitheads
(mines) and supply at the premises of the clients. However few suppliers keep marginal
stockpiles at their premises to meet certain ad hoc requests. Some of the suppliers have
depots in EMM.
The price of coal depends on distance from pithead to the premises of the client, the grade
of coal and obviously the tonnages required. On the whole, prices range from R180-R500
per ton. The coal is supplied in 70 kg bags, in trucks with capacities of 10-30 tons, in
scoops or grabs (720 kg). The clients are commerce, industry and smaller merchants who
retail the coal.
Three other suppliers, Kumba Resources, Eyesizwe and Ingwe supply coal to Eskom
Generation as fuel for coal-fired generating plants. These sales take place outside
Ekurhuleni.

The coal industry is deregulated and the price of coal is not regulated at the retail level.
The DME has published terms of reference for appointing a consultant to review the coal
industry. At the level of sales of coal to Eskom, pricing regimes are negotiated between
Eskom and the supplier on contractual basis.
6.5 Renewable energy

Progressive governments and municipalities the world over are embarking on robust
renewable energy measures. Undertaking these measures is not a fashion trend but is
influenced more by real and practical reasons. These reasons include the need to diversify
energy supplies and protect the environment from generation, transportation, distribution
and transportation of energy, as well as to address inequities in energy service provision.
With respect to South Africa, renewable energy is being taken very seriously by the
government. At the national level, progressive policies and legislations are being
formulated, and strategies are mapped out. Municipalities are entities that are tasked to
translate the policies into local and action plans, or have to ensure that the national policies

are implemented. National renewable energy strategy will not be realised if municipalities
are not sufficiently capacitated to lead the way.
6.5.1 Traditional biomass energy

Traditional biomass fuels are, by definition non-commercial and renewable fuels, such as
animal waste (animal dung) or crop residues. Of all household energy carriers, animal dung
is the least commercial and monetised.31 The use of traditional biomass is insignificant in
percentage terms vis-à-vis other fuel sources.
6.5.2 Woodfuel
Little woodfuel is used in Ekurhuleni relative to electricity, gas, IP and coal. This appears
normal, as Ekurhuleni is fully urbanised, with limited access to “free” woodfuel as in rural
areas. The little woodfuel used in the East Rand is only confined to heating and cooking by
destitute households. There is some that is used more for recreational purposes (such as
braais) and in traditional ceremonies.
6.5.3 Modern renewable energy

Generally renewables do not feature much in South Africa’s energy mix. Currently, energy
derived from RE is approximately 6% and 10% if biomass energy is included. Most of the
renewable energy use is outside the Ekurhuleni Metro, in rural areas and in the west coast
of the country.
There are few significant or large-scale RE or EE projects in Ekurhuleni, although the metro
is the economic heartland of Gauteng and South Africa. Some of the disincentives of EE
and RE measures include the widely available and cheaper coal-based electricity, as well as
the well-defined transport network to distribute petroleum products. EMM is strictly a
largely industrialized and urban municipality. All formal households, including some
informal settlements are connected to the national grid. Low-income households generally
rely on a combination of energy types depending on specific end-uses. Coal, paraffin (IP)
and LPG are generally fuels that are used with electricity for thermal applications, while
electricity is used with IP and candles for lighting. There has been little effort to encourage
alternative RE sources for these end-uses, except for a few and scattered demonstration
projects.
6.5.3.1 Solar power

Most areas in South Africa average more than 2,500 hours of sunshine per year. Average
daily solar radiation levels range between 4.5 and 6.5 kWh per square meter. The annual
24 hour global solar radiation average is about 220 Watts per square meter for South
Africa, compared to about 150 Watts per square meter for parts of the United States and
about 100 watts per square meter for Europe. A solar equipment industry has begun to
take root in South Africa – the annual photovoltaic panel assembly capacity totals 6 MWe
and there are also a number of companies that manufacture solar water heaters (SWH).
Partly because of readily available electricity, there has never been a concerted effort in
the Ekurhuleni municipality to encourage the use of this energy source. The census shows
some minor penetration of solar energy, but this remain isolated and most of the available
systems are installed by private companies.
Despite the almost non-existent solar energy, the latter have a potential in the EMM mainly
as part of the demand-side management. Passive solar designs for building, particularly in
the lower end of the housing market, can reduce the energy expenditure for heating. Also,
solar home systems, such as solar PVs (photovoltaics) and SWHs (solar water heaters), can
31
According to the Census, some few households in Ekurhuleni use animal dung mainly for heating and
cooking. In rural areas, animal dung also has a non-energy use for the plastering of huts in rural
areas.

be realistically implemented in the short term, as indicated by the renewable energy white
paper and the draft implementation strategy.
The major stumbling block of solar energy relates to the costs of the systems, which
remain uncompetitive when vis-à-vis competing energy types (paraffin, coal, gas and
electricity). An EMM solar company, Sunstove, states good quality stoves cost between
US$20 and $40 in the market, the cheapest costing $5 (Sunstove 2004).
6.5.3.2 Biogas energy

It is certain that EMM generates waste streams and this implies the potential biogas
fabrication from these sources needs to be considered for possible renewable energy
beneficiation. There are no effective existing biogas initiatives (except the Weltevreden
pilot methane purification plant) that were reported at the EMM during the course of this
study. However, there is an ongoing survey investigating the viability for biogas production
from agricultural sector within the area. Few biogas initiatives exist in South Africa,
especially in the rural areas.
The Waste-to-Energy Programme
Disposal of waste by landfill is the most cost-effective method of waste disposal in South
Africa. It is estimated that over 95% of waste generated in South Africa is deposited in
landfills. The decomposition of waste in a landfill leads to the release of landfill gas (LFG).
This biogas contains predominantly carbon dioxide (CO2) and methane (CH4). The
uncontrolled release of LFG emissions give rise to environmental and health problems such
as odour nuisance, global warming, etc. This gas can be recovered for energy beneficiation
since it contains more than 50% methane, instead of releasing it into the atmosphere.
The EMM currently operates five regional landfill sites. Most of these sites are large landfills
that accept general waste, hence classified as GLB+ and GLB-. The EMM is presently
installing landfill gas extraction systems (which consist of active wells with flares) on four
of its five regional landfills namely: Weltevreden, Rietfontein, Rooikraal and the Simmer &
Jack landfill sites (Van Zyl 2004). However, the Holfontein landfill operated by Enviroserve
Holdings is the only hazardous waste landfill site in Gauteng and accepts all ratings of
hazardous waste nationally. This landfill is classified as H:H landfill. The EMM has proposed
a future regional Zesfontein landfill which will serve predominantly the northern areas of
the metro.
Energy potential from EMM landfills
The EMM waste management annual report (2003) indicates that total general waste of
about 1.2 million tonnes generated annually from industrial and domestic sectors is
disposed into landfills (EMM 2003). The Rooikraal and Simmer & Jack landfills handled the
highest volumes in the last two years (Table 45). The type of waste received at EMM
landfill sites include: garden refuse, condemned foods, paper pulp, tyres, ash, domestic
and industrial wastes. Solid wastes such as garden refuse, foods, paper pulp and domestic
refuse are classified as rapidly biodegradable materials. These materials can decompose
rapidly in a landfill and generate LFG.

Table 45 Solid waste quantities handled at EMM landfills from June 2002 to
June 2003 (EMM 2003)
WASTE QUANTITIES (TONNES)

LANDFILL TOTAL
2002 2003
Platkop 81 199 100 284 181 483
Rietfontein 192 575 130 360 322 935
Weltevreden 216 998 254 699 471 697
Simmer & Jack 490 953 313 265 804 218
Rooikraal 390 884 296 733 687 617
Chloorkop 130 363 140 298 270 661
TOTAL 1 502 972 1 235 639 2 738 611
The EMM has commissioned consultants to evaluate the quantity and quality of LFG
(especially methane, CH4) released from four of its five currently operated landfills. The
study underway involves looking at the LFG yield assessment, gas yield modelling, pumping
trials and flaring. Three active wells with flares are currently being installed at four of
EMM’s five regional landfill sites: Rietfontein, Rooikraal, Weltevreden and Simmer & Jack
landfills. The potential for LFG utilisation will depend on predicted gas yields and site-
specific factors e.g. type and amounts of waste inputs. This information will be used to
determine an appropriate technology for a specific site such as:
Upgrading for natural gas quality;
Upgrading for bi-fuel use;
Indirect use e.g. electricity generation;
Direct thermal application.
This current study will provide recommendations on appropriate technology for renewable
energy recovery at each site. The existing LFG-to-energy project in EMM is the one
commissioned at the Weltevreden landfill site. The anticipated LFG utilisation options for
operational open sites at the EMM are presented in Table 46.

Table 46 Possible LFG projects at the EMM (Pieterse 2003)
TONNAGE CURRENT AFTER POSSIBLE

NO NAME CLASSIFICATION
PER YEAR LIFE SPAN LIFE PROJECTS
1 Weltevreden GLB- 300 000 29 Years +25 Vehicle/

(2032) Years electricity
(2057)
2 Rietfontein GLB+ 180 000 33 Years +25 Kilns
(2036) Years
(2061)
3 Rooikraal GLB- 360 000 29 Years +25 Electricity
(2032) Years
(2057)
4 Simmer & Jack GLB- 360 000 4/6 Years +25 Electricity
(2007) Years
(2032)
5 Platkop GLB- 126 000 39 Years +25 Flaring
(2042) Years
(2067)
6 Alberton GLB- --- 0 +25 Electricity
Years
(2028)
7 Chloorkop GMB- --- 0 +25 Volume seems
Years too small –
(2028) only flaring
8 Sebenza GMB- --- 0 +25 Volume seems
Years too small –
(2028) only flaring
9 Nigel GMB- --- 0 +25 Volume seems
Years too small –
(2028) only flaring
The LFG utilisation options identified by the EMM include (Pieterse 2003):
i. Flaring only: flaring means the burning of the LFG.
ii. Using as boiler gas: this option is limited due to distance between boiler users and
the landfill sites. However, such an option exists next to the Rietfontein site where
there is a tile/brick factory.
iii. Electricity generation
iv. Vehicle fuel: methane gas can be used as vehicle fuel in two methods as: a) clean
methane and; b) Mixed with diesel (25% diesel and 75% methane).
Case Study: Weltevreden LFG Pilot Project
The EMM was the first municipality in South Africa to commission a small-scale pilot
methane purification plant in 1999 at the Weltevreden landfill site in Brakpan, eastern
Gauteng. The objective of building this pilot plant was to capture LFG generated from the
landfill and to purify it using membrane technology. This would consequently provide
advantages such as generating renewable energy from LFG, cut energy costs and reduce
GHG emissions, particularly CH4, into the air. The extraction and utilisation of LFG promotes
quicker settlement of the landfill hence increases the airspace. Therefore, this extends the
life span of landfill site and reduces odour nuisance.

The LFG was extracted from a small section of the landfill, purified to 90% pure methane,
and transferred passively to storage cylinders. This gas is then drawn from these cylinders
to refill as fuel in the refuse collection vehicles. Since the beginning of this project EMM has
operated four refuse collection trucks using bi-fuel of methane-rich LFG and diesel (75%
methane: 25% diesel).
The economic and environmental benefits were evident. The price of methane is lower
than that of diesel. The savings of R25 000 to R35 000 were achieved annually per vehicle.
The atmospheric emissions of sulphur oxides (SOX), nitric oxides (NOX), CO2 and
particulates were reported to be considerably less than for diesel.
Despite all the benefits and advantages mentioned above, there were some drawbacks
experienced in the initial projects.
The compactor trucks that used bi-fuel experienced a power loss of about 20% as
compared to when using a conventional fuel such as diesel alone. LFG has to be
purified to a very high standard for use in the vehicle and this has been a costly
process.
Since only a small section of a landfill was used for the project, it was found out that
there was inadequate gas generated during the winter season.
Problems were also encountered during breakdowns since the spares had to be
imported, because the local market for these specialised components is very limited in
South Africa.
The operation and maintenance of the purification plant especially the membrane
technology was another costly factor that needed EMM’s attention.
These are lessons learned that the EMM has to consider in optimising renewable or
alternative energy source from landfill sites. LFG utilisation options of vehicle fuel and
electricity still stand as possible future LFG projects for the Weltevreden landfill site (Table
46).
6.5.3.3 Employment Potential for Renewable Energy

Data on renewable energy are scarce in South Africa. The only recent and notable works in
this are reports by Stassen (2001) on solar PV, solar thermal, wind, biomass, and anaerobic
digestion (landfill gas), as well as a study on renewable energy employment potential
(Agama & SECCP 2003). The latter study demonstrates that large scale deployment of
renewable energy technologies could sustain and increase the number of jobs particularly
in local manufacturing of technologies, as illustrated in Figure 25 overleaf.

Figure 25 Potential in different renewable energy technologies (RETs)
The figures above refer to the national situation and it is not known the extent to which
renewables provides job opportunities in the EMM. However, it is assumed that the low
deployment of RE technologies militates against RE contributing to the municipality’s GDP.
Implementing renewable energy measures in a municipality such as EMM presents major
challenges despite the favourable policy and regulatory environment in South Africa. As
municipalities are going to play a more direct and extended role in energy provision,
including renewables options and efficiency measures, it is important that such barriers are
isolated and addressed.
6.5.4 Policy imperatives for renewables
6.5.4.1 Focus of the Renewable Energy White Paper

In recognition of the requirement to provide adequate energy to all South Africans, as first
described in the Energy White Paper (DME 1998), the Department of Minerals and Energy
released a Renewable Energy White Paper in 2003 that focuses on alternative energy
sources. This policy document builds on the first White Paper and provides more clarity on
how a renewable energy agenda can be pursued in South Africa. An important feature of
this new policy document is setting a target for renewable energy. It states that:
…10 000 GWh (0.8 Mtoe) renewable energy contribution to final energy consumption by 2013, to
be produced mainly from biomass, wind, solar and small-scale hydro. The renewable energy is to
be utilised for power generation and non-electric technologies such as solar water heating and
bio-fuels. This is approximately 4% (1667 MW) of the estimated electricity demand (41 539 MW)
by 2013 (DME 2004).
Importantly, the new RE white paper provides an enabling environment for the
development and growth of renewable energy businesses and opportunities. This is in light
of the current imbalance between renewable and non-renewable energy resources in South
Africa. Some of the policy instruments that could accelerate the production of energy from
RE resources include the following:
Financial – facilitate for investment in new renewable energy technologies (RETs) as
well as extending the existing state financial systems and instruments to support RE
projects
Legal – develop a legislative and regulator framework to integrate independent power
producers (IPPs) into the existing electricity system

Technology – active support of R&D in renewable energy
Awareness – raise community awareness to renewable energy sources and benefits in
order to facilitate for community acceptance.
6.5.4.2 Draft renewable energy strategy

The draft RE strategy is out for public comment. The final strategy will be completed by
late 2004 (Nassiep 2004). The strategy will contain timelines, concrete targets and
technologies that are going to be supported by the government together with its partners.
The main aims of the strategy is to provide concrete action plans on how to integrate
economically viable RETs into the mainstream energy economy and lead South Africa into a
path of sustainable development that supports the GEAR strategy.
The strategy has identified six core intervention areas and has drawn action plans on
realizing the each objective. These areas are:
Integration of grid and non grid technologies through addressing the market
constraints, empowering local authorities with the capacity to implement viable
programmes, set targets for SHS and addressing the financial barriers
Provide RE in order to realise sustainable rural development, energisation and
activation of rural economies.
Introduce solar passive building design at a national level and particularly to the low
income housing sector. An appropriate legislation may be enacted to ensure its
implementation.
Implementation of a long-term national solar water heaters (SWHs) programme. Also,
because of the energy savings and environmental benefits, an appropriate legislation
may be enacted.
A national public education, training and marketing campaign on RE will be
implemented by the DME
RETs and resource assessment and feasibility studies have been undertaken on wind
energy, solar cookers, landfill gas, small hydro power systems, RE and small scale
farming, women and energy, and solar thermal power generation.
6.5.5 Information and data gaps

The following information and data need be acquired from EMM and solar industry:
The census reveals high use of solar energy and other renewables, yet there is little
data to substantiate this high use. This information gap needs to be addressed.
The current and future operation of the Weltevreden landfill gas (LFG) pilot purification
plant. Are there any obstacles or problems that will prevent EMM from continuing this
project? Are there any future prospects or opportunities that will make this project
more viable?
It been formally reported through journal publications that the use of bi-fuel (methane
and diesel mix) by EMM refuse collection trucks has led to considerable decrease in the
emissions of sulphur oxides (SOx), nitric oxides (NOx), carbon monoxide (CO) and
particulates (PM) compared as when diesel was used alone. Is there any statistical data
supporting this statement?
The outcome of feasibility study on LFG Yield Assessment and Utilisation currently
underway at EMM. Do the findings of the study indicate potential significant LFG
generation from EMM landfills, hence possibility of LFG commercial utilisation? The
summary of this study (or even progress report) will be adequate to highlight potential
RE (from LFG).

6.5.6 Pricing
Data on pricing of RE technologies and components within EMM was difficult to obtain. This
may due to the fact that there is no widespread deployment of these RE technologies in
EMM.
In general, it is known that solar power for electricity is expensive in terms of capex per
kW installed related to other renewable sources of electricity, such as wind power or mini-
hydro. This is due to the cost of the panels and the cost of the batteries needed to store
energy for periods of darkness or low sunshine. Furthermore, solar panels are vulnerable
to theft and vandalism.
In terms of operation costs (measured in R/kWh), solar power is competitive with other
renewable electricity solutions, although battery replacement can represent a barrier to
sustainability.
However, solar water heaters are more economically viable.

The renewable energy strategy (as well as energy efficiency strategy) is likely to be
adopted late in 2004 (Nassiep 2004). These would then be part of the municipalities’ action
plans from 2005 onwards. It is expected that until renewables and energy efficiency
become part of the EMM IDP, there could be no changes from the current status quo of
low renewable use. Both strategies emphasise the implementation of economically viable
and technologically proven renewables. In this case, the best option is the development of
solar water industry. This can happen quite quickly, as there are a number of installers
(plumbers) and small manufacturing plants in EMM.
The list of businesses currently active in RE & EE in EMM is provided in the Compendium of
Supporting Information.
6.6 Energy Efficiency in EMM

The security of electricity supply in South Africa is under threat. The country’s installed
capacity is just above 37,000 MWe and the peak electricity demand is currently at 31,500
MWe. Based on the current energy consumption trends, South Africa’s current installed
peak generation capacity (maintaining a safe reserve margin) is insufficient to meet future
forecast peak load. It is currently accepted that South Africa’s reserve capacity will be
used up by 2007. Commissioning a power station is usually a lengthy process that takes
several years. South Africa, therefore, has a strong need to diversify its energy supply in
order to ensure long-term energy sustainability and security.
Stringent implementation of demand side management and/or commissioning of a new
power plan could offset this shortage of capacity through generation of “negawatts”.
Undertaking energy efficiency measures is a win-win situation as far as energy savings are
concerned. The consumer is able to obtain maximum (energy) output from a minimum
input, thereby savings scarce monetary resources. The utility is able to effectively
undertake its load management, thereby delaying decisions for building additional power
station. At the low-income end of the market, the real energy savings can be made in the
field of space heating. Installing an insular-integrated ceiling in brick houses in Gauteng
would, for instance, save up to 90% of energy consumed for heating during winter
(Mathews 1995).
6.6.1 Overview of the energy efficiency objectives

Generally, the aim of energy efficiency programmes in South Africa is to mitigate against
greenhouse gas (GHG) emission in the electricity sector. For energy efficiency strategies to
achieve their intended goal, they should be robustly implemented across all important

economic sectors: residential, commercial, industrial and public buildings (health care,
street lighting). However, for EE programmes to reach targets of minimum energy
emission, they should serve socio-economic goals as well. Other benefits, such as the
reduction on electricity costs in large commercial and industrial plants, lowering of energy
costs at the household level and creation of employment and economic benefit arising from
energy efficiency market, should be highlighted.
6.6.1.1 Targets
The DME has set the following energy demand reduction targets by the year 2014 in South
Africa’s demand sectors:
Table 47 South Africa’s energy efficiency targets
REDUCTION IN DEMAND
DEMAND SECTOR
BY 2014
Industry 15%
Commercial and Public 15%
Buildings
Residential 10%
Transport 9%
Total 12%
Source: DME Draft Energy Efficiency Strategy of the Republic of South Africa, April 2004
6.6.2 Energy efficiency programmes in EMM
6.6.2.1 Efficient Compact Fluorescent Lamp (CFL)

The South African component of ELI aims to penetrate the South African market with 32
million Compact Fluorescent Lamps (CFLs) over the next decade and a half. If the above
target is met, the efficient lighting programme could save the environment in the order of:
CO2 emissions – 3.6 Mt/year
SOx emissions – 29.4 kt/year
NOx emissions – 14.65 kt/year
Water use – 4.8 Gl/year
Coal use – 1.92 Mt/year
Ash produced – 505 kt/year
Energy efficient CFLs last up to ten times longer than incandescent lamps and use up to
75% less energy, which translates into reduced electricity bills for consumers. Whereas an
ordinary incandescent light bulb would produce 1 000 hours of light lasting on average four
to five months, a quality compact fluorescent lamp will provide 10 000 hours of the
equivalent amount of light and last approximately eight years (Table 48).

Table 48 Technical comparison between the 60-Watt incandescent lamp and
the 15-Watt CFL
60 WATT
PARAMETER INCANDESCENT 15 WATT CFL
LAMP
Wattage (W) 60 15
Monthly consumption (kWh) 7,2 1,8
Equivalent incandescent lamp light output
60 75
(W)
Expected life (4 hours daily Hours 1,000 6,000 – 15,000
use) Years 0,68 4,11 – 10,27
Price R 3.00 R 20.00 – R 80.00
Failure rate
Manufacturer guarantee (years) NONE 1-3
Burning surface lamp temperature Very high Low
Source: Bonesa 2003
Eskom DSM and Bonesa together with the electricity department of EMM have
implemented an Efficient Lighting Initiative (ELI) using mostly CFLs for low income
households, EMM buildings and public lighting.
6.6.2.2 Residential load management

Ekurhuleni has been identified as a site for large-scale implementation of residential load
control (essentially the installation of ripple control systems for geysers). Because of the
size and scope of the work, it has been divided into phases. The first phase will involve the
installation of 8000 relays as an extension to the existing system in Benoni. Further phases
will look at other new systems and further expansion of existing systems in Ekurhuleni.
6.6.3 EE business in EMM

There are a number of companies that are involved in energy efficient technologies
(including manufacturing and retail of modern renewable technologies such as SWHs) in
EMM. In the business-as-usual scenario, few of these companies are competitive. While
there are number of companies at Ekurhuleni alone, it is important to note that few of
these companies are serving the local population. It is hoped, however, that as the country
implement its strategies to increase the use of efficient technologies, a huge a huge
demand for energy efficient technologies will be generated and the existing companies will
be economically viable.
The list of businesses currently active in RE & EE in EMM is provided in the Compendium of
Supporting Information.
6.6.4 Information and data gaps

The following information and data need be acquired from EMM and solar industry:
Industries and commercial sectors’ own DSM activities
The results of the recently implemented DSM programme which focuses mainly on
replacing conventional lighting with CFLs.
6.6.5 Future trends in REEES

The adoption of the Energy Efficiency strategy (which is still in the draft form at this stage)
will set up coordinated initiatives to implement EE measures. Like the RE strategy, this
strategy first articulates the energy efficiency targets, as well as implying the role of

municipalities in achieving these. As one of the highest consumers of energy, the EMM is
expected to lead the way in articulating its own demand-side management measures.

7. ENVIRONMENTAL/HEALTH ISSUES RELATING TO ENERGY IN EMM
7.1 Introduction
The generation, transportation, distribution and use of energy are the major driving forces
of environmental change in the Ekurhuleni Metropolitan Municipality (EMM). EMM largely
relies on electricity for its energy requirements. Industry and business account for
approximately 62% of the electricity consumption and domestic consumption the remaining
38% (ref Table 8). A large proportion of the electricity in the area is supplied by Eskom and
is dependent on the burning of fossil fuels. Table 24 showed the sources from which
households derive energy required for lighting, heating and cooking, confirming that EMM
household energy use is very much electricity and therefore fossil fuel based.
7.1.1 Emissions
Fossil fuel combustion produces carbon dioxide, which absorbs radiant energy, contributing
to the greenhouse effect. There is concern that increasing concentrations of greenhouse
gases (including carbon dioxide, methane and manmade chlorofluorocarbons) may
enhance the greenhouse effect and cause global warming. Fossil fuels currently provide
nearly 38% of net domestic electricity generation by electric utilities which contribute to
emissions of various gases at significantly high levels into the atmosphere. Estimated
emissions from fossil-fuelled steam-electric generating units are:
Sulphur dioxide (SO2);
Nitrogen oxides (NOx); and
Carbon dioxide (CO2).
Other major air emissions include:
volatile organic compounds (VOCs);
carbon monoxide,
lead, and
Particulate matter less than 10 microns in diameter (PM10).
There is growing recognition that these emissions adversely impact the environment
locally, nationally, and globally. These impacts are labelled environmental “externalities”.
Included in the generic term externality are benefits or costs resulting as an unintended
by-product of an economic activity that accrue to someone other than the parties involved
in the activity. As a result, externalities do not enter into the market-pricing calculations of
the parties undertaking the activity. In the case of power generation, only costs associated
with providing electricity are taken into account to the exclusion of costs related to the
unintended by-products of producing electricity. Included in this category are the costs of
impacts on the ecosystem and the environment, such as human health, which is not fully
included in the market price. Due to the fact that these impacts remain unaccounted for,
the cost of power generation remains lower than it otherwise would be, if the cost of
burdens imposed on society were also included32.
Since the early 1970s, the realization that the environment consists of resources that are
scarce and exhaustible has brought about a nexus between the environment and the
economy. There has been an interest in correcting the prices by including part or all of the
excluded costs. Considerations of environmental externalities have thus become
increasingly important in the resource planning operations of domestic electric utilities,
32
Energy Information Administration 1995

especially in regard to the use of fossil fuels which impose real and substantial damage to
human health and the environment.
7.1.2 Potential impacts of energy on environmental change

The potential impacts of energy on environmental change include, but are not limited to:
Depletion of non-renewable resources, i.e. fossil fuels
Increase in atmospheric concentrations such as carbon dioxide, sulphur dioxide,
carbon monoxide and lead (amongst others) and these have an adverse impact on
health and the natural environment, especially air
These greenhouse gasses also have an impact on climate change
Energy is also a major driver of modern economies
Fossil fuel combustion increases the entropy of the planet, due to the generation of
heat as a waste product and this may alter microclimates, e.g. the atmosphere over
industrial cities is hotter than rural surroundings.
7.2 Electricity related environmental and health issues

7.2.1 PCBs
Until the toxic nature of polychlorinated biphenyls, or PCBs, was discovered, they were
used as coolants and lubricants in electrical equipment, particularly transformers. PCBs are
a group of synthetic oil-like chemicals which are particularly stable and were thus
appreciated for their insulating capacity. They are part of the family of pollutants known as
Persistent Organic Pollutants (http://www.chem.unep.ch/pops/), related to dioxins and
furans, which do not break down in the environment. They were taken off the US market
in 1977. In addition to transformers, products which may contain old PCBs include
capacitors, ballast in fluorescent lights and old microscope and hydraulic oils.
The health impacts of PCB exposure include skin conditions, liver damage and possible
effects on the immune system. The EPA and the International Agency for Research on
Cancer (IARC) have concluded that PCBs are probably carcinogenic to humans. When
PCBs are burned, they convert to dioxins which are highly toxic.
PCBs can still enter the environment through leaks from old transformers containing PCBs.
Cleanup of contaminated transformer oil spills is extremely expensive as PCBs are treated
as hazardous waste.
Rotek Industries in Germiston have facilities for decontaminating old transformers and
capacitors containing PCBs.
7.2.1.1 Recommendations
The extent and location of residual PCB contaminated oil (if any) in EMM electrical facilities
should be assessed, and an action plan drawn up to dispose of the remaining chemicals.
The action plan should take into account the proximity of facilities available for
decontamination.
7.2.2 Electromagnetic fields

Since 1979, epidemiological studies have raised concerns over the links between exposure
to power line frequency magnetic fields and childhood cancer, particularly leukaemia in
children. Concern has grown over the potential health effects of long term exposure
and/or peak exposure to weak electromagnetic fields (EMF), such as those generated by
high voltage transmission lines or electricity distribution lines. These low frequency (50 Hz
or 60 Hz) fields are increasingly thought to be carcinogenic and to be a cause of
miscarriages.

In North America and Europe, EMF has become an influencing factor in planning and siting
new transmission lines.
Both peak exposure and long term exposure have been examined in many studies,
although results are not yet considered conclusive. The most recent and definitive are
briefly outlined below.
7.2.2.1 International Agency for Research on Cancer (IARC)

An IARC study group reviewed studies related to carcinogenicity of static and extremely
low frequency (ELF) electric and magnetic fields in 2001. Using the standard IARC
classification that weighs human, animal and laboratory evidence, IARC concluded that ELF
magnetic fields were possibly carcinogenic to humans. This classification is the weakest of
three categories of carcinogenicity:
Is carcinogenic to humans (usually based on strong evidence of carcinogenicity in
humans)
Probably carcinogenic to humans (usually based on strong evidence of carcinogenicity
in animals)
Possibly carcinogenic to humans (usually based on evidence in humans which is
considered credible, but for which other explanations cannot be ruled out)
For reference, other substances considered possibly carcinogenic include:
Coffee
Styrene
Petroleum engine exhaust
Welding fumes
7.2.2.2 EPRI/California Department of Health Services/US Dept of Energy

Two large epidemiological studies published in 2002, one carried out by the California
Department of Health Services (CDHS) and the other by the Kaiser Foundation Research
Institute, found an increased risk of miscarriages among California women who were
exposed to high peak magnetic fields in early pregnancy. On the basis of these results, the
CDHS concluded that a substantial proportion of miscarriages may be caused by EMF. This
conclusion contradicted previous studies which had shown less definitive results, so a
workshop was commissioned to review the data and recommend future research. The
joint project found that 24-hour peak exposure measures from different studies were not
comparable. A particular conclusion was that a maximum measured on one day in an
individual’s home may not be representative of the maximum for another day.
7.2.2.3 World Health Organization

A great deal of research has been carried out to assess the related health effects and is
documented by the WHO, which recently established the International Electromagnetic
Fields (EMF) Project (http://www.who.int/mediacentre/factsheets/fs263/en/) to review
research and conduct risk assessments of exposure to static and extremely low frequency
(ELF) electric and magnetic fields.
7.2.2.4 CIGRÉ
At the recent CIGRÉ (Conseil International des Grands Réseaux Électriques – International
Council on Large Electric Systems) conference held in Paris in September 2004, a session
was dedicated to current research and developments on the topic, at which it was noted
(Conti and Fanelli) that in Italy, legislation provides for regulation of exposure to EMF.
There appear to be few reports providing recommendations on how electricity utilities and
local governments can practically manage remedial and mitigating measures, apparently
because evidence is not yet conclusive enough.

7.2.2.5 Recommendations
A basic measure would be to ensure that residents who build houses in the rights of way of
power lines are informed that not only is the siting of their house illegal, but it also
represents a potential, but not proven, health risk. Despite the abstract and complex
nature of the subject and the resulting potential for oversimplification by all parties, a well-
bounded awareness program for Ekurhuleni residents based on definitive research should
be considered.
EMM electricity and health staff should ensure they are jointly well-informed on ongoing
research on the subject, as part of a long term agenda to assess the health and
environmental effects of energy in Ekurhuleni.
7.3 Pressures on air quality

In this study, reference to air pollution is made specifically in terms of air pollution
generated through processes to produce either electricity or energy in support of industrial
or manufacturing activity in or near Ekurhuleni. Air pollution can be defined as the
emission of chemical compounds into the air resulting from anthropogenic and natural
activities, which have the potential to impact negatively on the environment.
Air movement is an effective means of transporting such pollutants. Thus the effects of
pollution in one area may also be felt in an area thousands of kilometres away. Air
movement and mixing is dependent upon differences in high and low pressures and the
occurrence of temperature inversions. Atmospheric constituents are removed from the air
through the process of wet or dry deposition or through chemical reactions. Wet deposition
is effective in removing both particulate and gaseous pollutants.
Due to the nature of activities that are undertaken within the EMM, sources of pollution
within this area vary considerably and include heavy manufacturing industries, a coal fired
power station, mines and associated infrastructure, light industrial processes, waste sites,
motor vehicles, farming and domestic fuel combustion. The EMM is surrounded by urban
areas particularly to the north (Tshwane) and west (Johannesburg). Beyond its immediate
borders EMM is surrounded by major industrialized areas, which include the Secunda
Industrial complex to the south east, the Vaal Triangle (Sasolburg, Vereeniging and
Vanderbijl Park) to the south west and a cluster of metallurgical industries (Witbank and
Middelburg), power generation utilities plant and coal mines on the Mpumalanga Highveld
to the east. From this short description it can be seen that whilst the EMM does have
significant pollution sources within its geographical area, its air quality can be impacted by
pollution sources way beyond its boundaries.
7.3.1 Air quality impacts

Air pollution may result in disturbances to ecosystems, climatic conditions, biogeochemical
cycles and human health. Motor vehicles are generators of carbon monoxide and carbon
dioxide, which contribute to the global greenhouse gas budget which in turn results in
global warming. Nitrogen oxides (NOx) emitted by motor vehicles, are precursors to ground
level ozone which can trigger serious respiratory problems. Other pollutants from motor
vehicles include SO2, a primary contributor to acid rain and volatile organic compounds
(VOCs) some of which are known carcinogens. VOCs are also precursors to ground level
ozone.
Domestic coal and wood combustion generates both gaseous and particulate pollutants.
The more important gaseous pollutants include SO2 and VOCs which pose ecological and
health risks to the floral and faunal environment. Particulate matter especially those in the
respirable size range (<10µm) poses both a health risk to human receptors and degrades
the visibility of an area.
The components of the landfill gas most likely to cause a health risk theoretically constitute
2% of the total volume of landfill gas emission consisting of VOCs that include acetone,

benzene, methylbenzene, dichloropropane, tetrachloroethylene, xylene, toluene,
ethylbenzene and inorganic gases such as hydrogen sulphide (source of odours), hydrogen
cyanide, ammonia and chlorine being the most prominent emissions. In most cases the
most severe impacts from landfill gas emissions are limited to areas within 3 km of the
waste site and include nuisance (odours and dust), health (exposure to VOCs and other
gases) and ecological (degradation of vegetation in close proximity to the waste sites)
impacts on receptors.
Given that the majority of air emissions from waste sites are largely composed of methane
and carbon dioxide which are greenhouse gases, waste sites certainly do have an impact
on the global greenhouse gas budget. Hence whilst these types of emissions are not
necessarily observed by the public (visually and olfactory) they do impact on the global
atmosphere.
7.4 Sources of emissions within EMM

From an air pollution perspective, areas of high air pollution in South Africa tend to
correspond with areas that have a high concentration of heavy industry. With the exception
of the Germiston industrial area, heavy industrial activity is spatially spread across the EMM
area in the various sub-regions in smaller clusters. In addition to this, large areas of EMM
are highly urbanised with mixed land use i.e. industrial, commercial, mining, quarrying and
residential. The transportation sector has been identified as a major source of air pollution
as well.
Domestic coal burning and coal fired boilers are recorded as the most significant fuel
burning related sources of airborne particulates in the EMM region. Coal boiler operations
include Impala Refinery (Springs) and NCP (Chloorkop).
The highest sulphur dioxide concentrations were predicted to be due to emissions from
domestic coal burning, petrol-driven vehicles and various coal boiler operations. Ambient
benzene and lead emissions are primarily the result of petrol vehicle emissions.

Table 49 Summary of estimated contributions to air emissions by source type
in the Southern SDR
SOURCE/ACTIVITY TYPE TYPES OF EMISSIONS CONTRIBUTION

Industrial Activities Particulate matter (includes 20%
iron oxides, copper oxides,
lead oxides and chrome
oxides)
Gases (NOX, CO2, CO, SO2,
dioxins, formaldehydes,
phenols)
Domestic fuel use including Particulate matter (soot) 60%
squatter camps around
Gases (CO2, CO, SO2)
Germiston Centre
Motor Vehicle emissions Particulate matter (soot) 7%
CO, SO2, NOx
Mine Dumps Particulate matter 9%
Veld Fires Particulate matter (soot) 3%
Gases (CO2, CO, SO2)
Other (Accidental factory Particulate matter 1%
fires/houses)
SO2, CO, CO2
Of these, the most significant source of pollution related to either energy generation or
consumption is the contribution from domestic fuel use. Although industrial activities do
indeed contribute significantly to air pollution in Ekurhuleni, it is not possible at this stage
to disaggregate the data to show to what extent the pollution relates to energy generation
or consumption.
By the same token, at this stage it is not possible to disaggregate data to show the extent
to which energy production and use contribute to water pollution.
7.4.1 Industry – scheduled processes (including power generation)

The EMM contains some 8000 industries that occur in twenty separate industrial areas,
which are concentrated in seven industrial nodes. Using the 1995 Department of
Environmental Affairs and Tourism (DEAT) scheduled processes database, it is estimated
that there were 327 registered scheduled processes in operation within the EMM at the
time. While this total might be slightly dated, it is the most accurate estimate available. It
is possible that while new processes may have been added to the list some of the
processes operating at the time may have closed down. An estimate of the 1995 emissions
of certain priority pollutants from scheduled processes is given in Table 50.

Table 50 Estimated emissions of priority pollutants emitted by scheduled
processes
EMISSIONS
POLLUTANT
(TPY)
Total particulate matter 20 417
Sulphur dioxide (SO2) 48 326
Nitrogen oxides (NOx) 56 132
CO2 13 162 414
CO 567 700
Non-methane hydrocarbons 85 040
Source: DEAT (1995)
It is important to note that the figures presented in Table 50 exclude emissions from other
sources, such as light industry (non-scheduled processes), motor vehicles, domestic fuel
combustion, and mining and waste disposal sites.
The two major types of energy related pollution within this sector are air and marine
pollution. The industrial sector is the prime contributor to air pollution. Coal combustion
can lead to particulate matter in the air, as well as contribute to acid rain.
In addition to industrial pollution, low-level atmospheric pollution often results from coal
combustion in stoves, as well as coal-heated boilers that are found in hospitals and
factories (EIA 2002).
7.4.2 Industry – non scheduled processes, light industry

While individual light industries may not be considered to be major sources of air pollution
individually, their cumulative contribution to the total air pollution load could be significant.
Currently there is no estimate of the contribution of the light industrial sector is to the total
air pollution load. Based on the number of industries that operate in this area they could
have a significant contribution to the total load. Whilst the air emissions from this sector
are not expected to be noxious to their immediate environment when compared to
scheduled processes, their cumulative contribution to the greenhouse gas emissions may
be significant since many of these operations use fossil fuels viz. coal, oils and diesel,
which generate greenhouses gases on combustion.
7.4.3 Transport
Transport and communication contributed 6% to the economy of EMM in 2001. Given the
strategic location of EMM, its road, rail and air networks also support a significant amount
of passing traffic. Hence air emissions from the various transportation modes that are
encountered in this area are likely to be a significant air pollution source. Of the various
transport modes, road (vehicle) transport is considered to be the most significant regional
source of air pollution. Vehicles emit carbon monoxide, carbon dioxide, nitrogen oxides,
sulphur dioxides and volatile organic carbons (VOCs). There is no quantitative information
with respect to the contribution of vehicle emissions to air pollution loads in the EMM.
The South African government published a draft strategy in 2003 on the control of exhaust
emissions of road going vehicles33. This strategy takes local conditions into account as well
as developments in other developed countries. The definition of clean fuels, as applicable
from 2006 is "any fuel that does not contain heavy metals and having a maximum benzene
33
Government Gazette no 25714 vol 462, 12 December 2003, Draft Joint Implementation Strategy for the
Control of Exhaust Emissions for Road Going Vehicles in the RSA.

content of 3%, aromatics content of 42%, sulphur level of 500ppm and a maximum
oxygenate content of ethers and selected alcohols of less that 2.7%. Diesel that contains
less that 500 ppm of sulphur will also be included". This means that lead in petrol will have
to be phased out, the use of lead replacement additives investigated and sulphur in diesel
extensively reduced. The refinery sector has estimated that this policy will require
investment in existing refineries of between R7 to R10 billion. Government is investigating
measures that will support this action, but in the end the cost of fuel will have to be
increased to carry the higher costs as “the polluter pays principle” is said to apply. The
draft strategy states that the regulated price build up for petrol and diesel will be based on
cleaner fuels only. Any other additional costs incurred in the marketing or distribution of
fuels containing heavy metals would be excluded accordingly.
In addition European standards for vehicle emissions limits will be implemented for newly
homologated vehicles in 2005. These standards will come into full effect in 2006 when all
new vehicles will be subjected to emissions controls.
Besides motor vehicles, emissions from the air transportation sector are also a source of
pollution that needs to be considered primarily in respect to air quality around the JIA in
Kempton Park. JIA is the largest and busiest airport in SA. The primary pollutants from
aircraft are hydrocarbons (including VOCs), NOX carbon monoxide and particulate matter.
The highest emission levels tend to occur during take-off and when the aircrafts are in idle
mode. The Airports Company of South Africa (ACSA) (owners of JIA) has recently
undertaken a study to characterise the impacts of the activities at the airport on air quality.
At the time of writing this report these results were not available. However, it is
anticipated that these results will be available for inclusion in the Final Draft report.
7.4.4 Households
Domestic households have the potential to be one of the most important sources of air
pollution. As is the case with light industry, individual households are low volume emitters
of air pollutants but their cumulative impact is significant. Air pollution from domestic
households occurs primarily due to the combustion of fossil fuels as an energy source.
The use of coal and wood as a domestic source of energy is the most significant source of
air pollution at a metropolitan level. In addition, wood and coal combustion is the primary
energy source in low income population groups as well as the numerous informal
settlements that are dispersed across the EMM. This is significant during winter when
strong inversion conditions prevail over the Highveld resulting in poor dispersion conditions
i.e. the accumulation of air pollution levels in the first 100 to 300 m above ground level.
Studies in the Vaal Triangle have shown that the contribution of domestic coal combustion
can contribute 40 to 60% of the atmospheric pollution load during winter (EMM State of
the Environment 2004).
Coal (mostly bituminous), is the primary fuel produced and consumed in EMM. Production
and consumption of coal has serious effects on the environment, leading to air and water
pollution, whist also contributing to increasing concentrations of greenhouse gases in the
atmosphere.
7.4.5 Mining
Although gold mining is the primary mining activity within the EMM, other resources that
are mined include coal, silver, dolomite, clay, sand and rock. Most of the mining activities
occur in the Southern and Eastern SDRs. Although underground mining activities have a
negligible impact on air quality, surface mining activities certainly can have a significant
impact on air quality. Whilst dust is the main pollutant of concern, the emission of radon
gas is a concern at some sites where the old mine dumps are being reclaimed.

7.4.6 Waste sites
With respect to air quality, waste sites are a source of gaseous and particulate emissions.
Methane and carbon dioxide theoretically constitute 45% to 55% of landfill gas. Particulate
matter is usually wind derived and associated with operational activities including waste
disposal, vehicular movement, and waste compacting and covering. EMM is currently
considering using currently flared landfill gas for other purposes, and this may have a
beneficial impact on the air pollution related to waste sites.
7.5 Human health

The detrimental effects of air pollution on human health are well documented. These are,
in summary:
Acute/short term: bronchitis, tightness in the chest, wheezing.
Chronic: lung cancer, cardiopulmonary disease.
Mortality rates are higher in cities with dirtier air; it is estimated that exposure to
particulate levels exceeding the World Health Organization health standards accounts for
roughly 2 to 5 percent of all deaths in urban areas in the developing world34. More
critically for EMM, it has been shown in South Africa that mortality is dramatically increased
in those families which chronically breathe coal and woodsmoke emissions in poorly
ventilated dwellings, which is typically the case for poor residents during highveld winters.
It is estimated that around 2000 children die annually as a result of respiratory infections
caused by air pollution, the sixth largest killer of children under four in South Africa35.
Vulnerable groups include infants, the elderly, and those suffering from chronic respiratory
conditions including asthma, bronchitis or emphysema. However, even healthy adults can
also suffer negative effects.
7.6 Information and data gaps

There are a significant number of gaps with respect to air quality data in the EMM and this
includes both emissions (source) and ambient data. With respect to source data there is a
need for the establishment of a comprehensive emissions inventory from all potential
sources of air emissions within the EMM for certain priority pollutants. This will be a
licensing requirement for “Listed Activities” (currently termed Scheduled Processes), which
will be a local government responsibility when the Air Quality Bill is promulgated. In terms
of this study, the net effect is that the information related to pollution caused by energy
production and/or use in EMM is simply not available at this stage. However, some
reasonable inferences can be drawn.
7.6.1 International trends in data requirements

South Africa has ratified and acceded to the Kyoto Protocol in 2002. Although South Africa
is not obliged to reduce greenhouse gas emissions during the initial period required under
the Protocol (2008 to 2012), this could change after 2012 especially when the protocol is
implemented. Important commitments include quantification and reduction of greenhouse
gas emissions that are emitted within South Africa. The collation of this information will
almost certainly require local government input either in the form of promulgation of
legislation or collation of information that has been supplied by generators of air pollution
that fall within its jurisdiction. With respect to ambient air quality data a comprehensive
ambient air quality monitoring plan needs to be developed and implemented. This will
include consolidation of existing public and private air quality monitoring programs.
34
World Resources Institute, 1999.
35
EIA 2002

7.7 Issues relating to energy and EMM’s environment
The development of an ambient air quality monitoring program will assist the EMM in
prioritising air monitoring programmes with a view of addressing the air pollution hotspot
areas first and progressively expanding the network to other areas. All emissions and
ambient air quality information must be forwarded to and collated at a centralised point in
a GIS based system that will allow for easy access to information by the various
stakeholders in the EMM including local government, the public and business sectors.
By far the most significant energy-related factor affecting air quality in EMM is domestic
consumption of fossil fuels.

8. STATE OF ENERGY
8.1 Service delivery framework
The generic Management Delivery Lifecycle depicted in Figure 26 below is common to all
businesses in the delivery of their Products or Services. This encapsulates the three key
management functional perspectives of
Strategic Planning (Strategy and Policy)
Tactical Planning & Coordination (Planning and Design)
Operational Delivery & Maintenance (Implementation, Operation and Maintenance).
Figure 26 Service Delivery Framework
“Cross-cutting” Critical Outcome Criteria influence the way functions are carried out in
order to bring about the desired outcomes in line with Strategic Objectives
Strategy Policy
Planning Design
Parameters,
Guidelines and Service Delivery Path
Objectives
Implement Operate Maintain
Changes
Budgets and Detailed Product
Implementation Plans
The desired outcomes, or strategic objectives, realised as a result of the delivery of the
product (or service) influence the way in which the various functions on the Service
Delivery Path are carried out. Monitoring and verification provides feedback along the
Service Delivery Path.
Extending this principle to EMM’s service delivery objectives, the following sections will deal
with highlighted energy issues in EMM with respect to a common Service Delivery
Framework.

8.2 Issues
8.2.1 Geoeconomic dynamics
Ekurhuleni, an area embracing 88 wards and some 2,5-million people appears, in economic
terms, to have two main axes:
an east-west axis associated with the earlier development of mining and heavy
industries
a north-south axis more inclined towards lighter, higher tech, industries.
Whereas the latter appears to be a part of the Alberton-Midrand-Centurion growth axis, the
Germiston-Springs axis is associated with declining mining, heavy industry and agricultural
sectors.
Quantitative information to support what are now largely impressions is difficult to come
by. However there are some indicators.
8.2.1.1 Agriculture
The smallholdings in the Brakpan-Benoni-Springs area have been a source of agricultural
produce for the Gauteng market since the inception of industrial activity along the “reef”.
Such activity has been increasingly attenuated by crime and growing input costs and the
properties are now being employed for, inter alia, townhouse development.
8.2.1.2 Industry
Formal employment in Ekurhuleni has contracted in most years with marginally positive
changes only being recorded in 1994, 1995 and 2002. In 2003, manufacturing has again
been in recession following the strengthening of the rand, and large employment losses
have been reported.
The investment performance in the mid-1990s was due to a very small number of capital-
intensive sectors, mainly basic iron & steel, non-ferrous metals (such as aluminium) and
basic chemicals. Aside from these factors, investment levels have remained low.
The main feature of developments in the 1990s has been the continued better performance
of capital-intensive industries. In terms of output growth, the automotive manufacturing
sector has performed the strongest, although the sector has not recorded any net increase
in employment. After motor vehicles the best performing sectors are the heavy industries
of basic chemicals, basic iron & steel, and basic non-ferrous metals, none of which has
recorded significant job creation. The sectors in which Ekurhuleni is best represented, such
as metal products, other chemicals, plastics and machinery & equipment have tended to
perform less well36.
One indicator of the decline of heavy industry (east-west axis) is shown by the heavy fuel
oil consumption pattern (Figure 6).
8.2.1.3 Transportation
The situation is further influenced by the existing transportation facilities and growing
transportation needs. Transportation (trains and buses) backbones were originally laid out
on a east-west axis to service the older pattern of agricultural and heavy industries. The
new trend towards north-south high-tech industries is serviced mainly by private and taxi
transportation.
36
Manufacturing industry in Ekurhuleni: Analysis of recent performance and findings from firm survey.
Briefing Paper 9. Ekurhuleni Metropolitan Municipality – University of the Witwatersrand joint
programme of research on industrial development in Ekurhuleni J. Machaka and S. Roberts March
2004

It should be emphasized that the north-south, east-west axis interpretations provided are
largely impressionistic, as supporting data has proven difficult to come by in the allotted
time.
It is suggested that the concept be subjected to a more quantitative study in future
programmes.
8.3 Identification and prioritisation of energy issues in EMM

The project team has identified an extensive set of issues through the following
mechanisms:
Workshop held 17 August 2004 with EMM staff and energy stakeholders identified by
EMM and the project team
Own experience

Table 51 Identification and prioritisation of energy issues in EMM
ISSUE COMMENT PRIORITY
Strategy & Policy
Transportation
Transportation demand sector is the major energy user Large component of energy is used for transport – not much is known about the use of energy High
and major pollutant in the transport sector – energy needs to be a specific variable that is address in all the
transport planning activities, especially related to personal transport.
Awareness building is needed for the public to Mindset shift will likely be an issue (“all South Africans want cars and want to drive alone”), High
understand the consequences of energy intensive with a need for different programs addressing different income groups.
transport
Limited availability of public transport (alternatives to Medium
taxis)
Congestion should be addressed through the High
construction of new infrastructure and Travel Demand
Measures
Carpooling should be encouraged Perhaps through use of designated lanes, with monitoring and enforcement through CCTV High
systems at key points.
Implications of the new national policy on exhaust SA government is to supply clean petrol and diesel by 2006. Implications for fleet upgrade/ High
emissions should be assessed from EMM’s perspective. replacement should be addressed.
Need for roadworthiness tests of current vehicles in Need to be monitored in terms of infrastructure and policy implementation once national policy High
EMM (trucks, taxis and private cars) to assess has established. Municipal bylaws can assist in enforcing roadworthiness requirements.
emissions and fuel efficiency
Need for alternative, environmentally friendly modes of High
travel to be available and safe (bicycle, pedestrian
options) for EMM residents
Need for alternative, environmentally friendly fuel High
(methane, ethanol, hydrogen, fuel cells, diesel from
sunflower oil, etc.) and vehicle technology
(hybrid/electric vehicles), to be more readily available
to EMM residents

Implications of new policy on exhaust emissions on High
EMM will have to be examined
Electricity
Rollout of the incorporation of municipal electricity Implications for EMM RED include: High
undertakings into Regional Electricity Distributors
Contestable customers (large power users will have the opportunity to select suppliers)
(REDs), which will incorporate Eskom distribution.
Objective is to introduce efficiency into the electricity Responsibility for planning for future capacity and need for integration in planning
supply chain and national tariffs. Several municipalities, between generation, transmission and distribution
including Cape Town and Polokwane, have signed on
Planning for O&M of infrastructure
already.
Potential for increase in electricity price (carried through from generation) – end user
affordability
Need for a centralised and accurate electricity Could also be used for tariff analysis, DSM planning, policy development, planning and High
database, consolidating technical, financial and marketing
geospatial information
Need to maintain/improve quality of electricity supply Contributing factors include lack of funds for preventive maintenance, vandalism, illegal High
connections, and potential lack of supply capacity nationally after 2007. Impacts on industrial,
commercial and residential consumers. If perception of lack of reliable electricity supply
persists, investment (especially industrial development) could start to follow perceived reliable
electricity supply.
Sufficient funds should be made available for repair Some substation repairs have taken months to effect as funds were not allocated, affecting High
and maintenance of the distribution system. supply to customers.
Sufficient capex and opex need to be made available This will take on even greater importance with the rollout of the REDs. High
for the development of new infrastructure.
Electrification policy should be tied to socio-economic EMM should ensure close liaison with DME on planning of future electrification rollouts. High
development of the region.
Environmental and health issues
Coal is used extensively in low income households. Impacts are on householder health as well as the environment. EMM could implement High
Emissions from coal at the household level are mechanisms to support the DME’s initiative to introduce LPG into lower income homes.
extremely high Incentives could be considered to make LPG more accessible, as well as awareness programs
concerning the health effects of coal and IP.
Illuminating paraffin is a potential source of fire in low
income homes

Emissions from coal-generated electricity affect the EMM does not have electricity generation within its borders Low
atmosphere in South Africa
PCBs may be present in old electrical equipment such The extent and location of residual PCB contaminated oil (if any) in EMM electrical facilities Medium
as transformers and capacitors (and fluorescent light should be assessed, and an action plan drawn up to dispose of the remaining chemicals. The
ballasts). PCBs are carcinogenic, and become more action plan should take into account the proximity of facilities available for decontamination.
dangerous when burned.
Electromagnetic radiation from overhead high voltage A basic measure would be to ensure that residents who build houses in the rights of way of Medium
power lines is believed to be a potential carcinogen and power lines are informed that not only is the siting of their house illegal, but it also represents
cause of miscarriages, although studies are not a potential, but not proven, health risk. Despite the abstract and complex nature of the
conclusive subject and the resulting potential for oversimplification by all parties, a well-bounded
awareness program for Ekurhuleni residents based on definitive research should be
considered. EMM electricity and health staff should ensure they are jointly well-informed on
ongoing research on the subject, as part of a long term agenda to assess the health and
environmental effects of energy in Ekurhuleni.
RE/EE/DSM initiatives
Low level of penetration of RE/EE strategies within At national level, draft strategy was issued in April 2004. NER policy states that munics, as High
EMM REDs, to deliver on EEDSM targets.
Waste to energy projects should be encouraged Such projects may have potential CDM benefits as well as contributing to EMM’s environmental High
sustainability.
The potential for cogeneration projects should be
explored Housing projects should address issues such as passive solar heating and cooling (window and
shade placement for keeping houses cool in summer and warm in winter), insulation,
New housing projects should be required to meet ventilation systems, double-glazing of windows, and weather-stripping of windows and doors
energy efficiency standards. to keep the indoor environment to the desired conditions.
Electricity-intensive air conditioning should be discouraged.
DME will require appliances to be labelled in terms of EMM could support in terms of awareness building. Low
their energy efficiency.
General
Energy poverty needs to be addressed Mechanisms for measuring energy poverty should be developed, and targets set for energy High
poverty reduction
Energy costs will likely become cost-reflective, taking High
into account externalities such as pollution

Development of EEDSM related bylaws will be needed Building permits and zoning regulations may be an appropriate mechanism for incentivising Medium
EEDSM in the longer term
Planning & Design

Transportation
Synchronized/phased traffic lights could relieve Vehicles which maintain a regular speed rather than a stop/start pattern use less fuel per High
bottlenecks at peak hours with a resultant decrease in kilometre driven.
fuel consumption
Intelligent Transport Systems should be considered for Medium
the longer term.
Spatial planning should take into account revising the For safety and environmental reasons High
urban form to support energy conscious initiatives such
as bicycle paths
Better lighting of road networks – brighter, lower Streetlighting does not represent a significant energy demand sector in EMM. However, an EE Low
consumption streetlights and programmed traffic lights program in streetlighting would be highly visible and would contribute to awareness building
would have cross-cutting benefits on EE, as well as potentially reducing crime and accidents.
Electricity
Lack of uniform, up to date computerisation of EMM Electricity is currently planning to roll out an extensive GIS mapping project, which will High
electricity system information include provision of computer facilities for municipalities still lacking them
Discrepancies in electricity information – description of Information on number of customers at household level particularly suspect High
system, number of customers, losses
Availability of detailed household energy use EMM should consider a household energy profiling study to establish a database on energy use High
information for cooking, heating and lighting, which could be used for EEDSM. This would typically involve
identification of a representative set of households
The extent to which the new tariffs are cost reflective High
should be assessed.
Assistance should be provided to consumers in the An active energy use advisory system should be considered. High
most effective use of this tariff system.
Effective management systems for metering systems
(credit and prepaid) should be used to check for illegal

connections.
Awareness programs on the consequences of electricity
theft should continue.
Collaboration with the South African police on enforcing Benoni staff reported a significant reduction in illegal connections while their collaboration with High
Section 27 of the Electricity Act (regarding theft of SAPS was active.
electricity) should continue.
RE/EE/DSM initiatives
DME planning to implement energy efficiency EMM will need capacity to supply the data – resources and specialisation will be essential. High
monitoring country-wide, and currently seeking to
DME is implementing several projects under the Capacity Building in Energy Efficiency and
develop the institutional framework and data collection
Renewable Energy project (CaBEERE), involving industrial energy management,
protocols.
implementation of norms and standards in energy efficiency and monitoring of targets in
Local manufacturers and industries should be made energy efficiency.
aware of industrial energy management initiatives and
availability of training programs
EMM should consider developing incentive programs
for higher consumption energy users to implement
EEDSM, e.g. through installation of solar water heaters.
EMM could incentivise through financing and National government is setting up and rolling out incentive programs Low
investment
General
Need for energy capacity building in EMM staff EMM are addressing through the SEED project High
Need for energy capacity building within EMM’s private Ensure that budgets align with priorities; energy is not necessarily considered a priority within High
sector industry and commerce. It is considered a very high priority in the mining sector, as electricity
typically represents about 20% of production costs.
EMM business were originally established around mines Land use and transportation planning implications, which will involve energy supply as well. Low
and railways (east-west axis) and were labour
intensive; now increasing trend towards high tech
businesses, with mode of transport changing to road
rather than rail, and moving north.

Limited data on household use of coal, IP, LPG and This links to the issues of affordability, local health and air quality. High
electricity - this may call for a longitudinal survey and
Also the thermal design of new houses related to comfort and energy use
study.
Upgrading of existing houses
Advice and assistance to users to use the right form of energy and appliance so as to reduce
cost, energy use and pollution- there may be a case for an effective policy of advisory centres
Need for alignment of development planning between High
government levels, and for EMM IDP to have an explicit
energy component.
Operation & Maintenance
Environment
Land based environmental impacts of energy Environment and Energy must work together. Other countries, particularly the Scandinavians, Medium
externalities need to be assessed. have already done extensive work in this area. There may be positive impacts as well, such as
the potential use/sale of methane related carbon emissions from landfills. Monitoring and
verification will be essential.
Electricity
Rigorous efforts to prevent illegal connection through Copper cable theft is an economic crime as well as basic theft. Illegal connections are often
awareness programs and system audits should effected by children, as their small hands can reach into small junction box spaces, exposing
continue. them to severe risk of injury and death.

8.4 Conclusions and recommendations
8.4.1 Conclusions
The most significant sector as far as energy use is concerned in EMM is the transport
sector, for which liquid fuels are the dominant energy carrier.
Of the total of 118 652 TJ of energy consumed in Ekurhuleni in 2003, 41% or 48 448 TJ
were consumed in the transport sector, 36% or 42 665 TJ were consumed by industry and
construction and 14% was consumed by households.
Liquid fuels supplied 49.1% or 52 587 TJ of the energy consumed, electricity provided
37.7% at 44 768 TJ and gas provided the bulk of the remainder of the energy supply with
10.1%.
Energy consumption within EMM municipal buildings is negligible in comparison with other
demand sectors.
There is a great deal of data for energy carriers, energy users, supply and demand in
Ekurhuleni. However, there are still significant discrepancies in the following areas:
Household data – number of total households in EMM, number of electricity clients
Eskom and EMM electricity data – correlation between energy and sales data
GIS mapping information for electricity is generally available at varying levels of detail at
the various Customer Care Centres, and no other energy information is available
disaggregated below the municipality or Johannesburg level.
8.4.2 Recommendations
EMM has already taken the most important step of engaging an Energy Specialist to
develop an integrated approach to energy in Ekurhuleni.
It is recommended that the Energy Strategy be developed using the Service Delivery
Framework as a guideline to establish:
Desired outcomes
Key performance indicators
Data collection requirements
Data collection protocols
Data provision and performance agreements
Monitoring framework for data collection
across the range of energy demand sectors and energy carriers. Critical focus areas for
data collection should be the transport and household demand sectors.
8.4.2.1 Electricity
The following initiatives are recommended with respect to electricity:
Independent audit of electricity information
Establishment of an automated energy balance, integrating information from the Venus
system
Further training for financial personnel to ensure adjustments to financial information
are correctly reflected in technical adjustments
Regular audits of the adjustment process, involving EMM Electricity personnel

Small showcase projects within EMM municipal offices to demonstrate Demand Side
Management potential and techniques to the general public
The difference in consumption growth between electricity and IP for lighting should be
examined in more detail.
8.4.2.2 Liquid fuels

Further studies should examine losses in the supply chain and assess areas where
demand may be suppressed due to distance from supply.
The trend in consumption of diesel and petrol should be examined in terms of influence
of energy efficiency incentives.
8.4.2.3 Renewables
8.4.2.4 Environmental issues

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EKURHULENI METROPOLITAN MUNICIPALITY

STATE OF ENERGY REPORT

LIST OF FIGURES viii

1. Background and introduction 1

2. Legislation and regulation 8

Ekurhuleni State of Energy Report, November 2004 i

Ekurhuleni State of Energy Report, November 2004 ii

Ekurhuleni State of Energy Report, November 2004 iii

7. ENVIRONMENTAL/HEALTH ISSUES RELATING TO ENERGY IN EMM 86

Ekurhuleni State of Energy Report, November 2004 iv

Ekurhuleni State of Energy Report, November 2004 v

Ekurhuleni State of Energy Report, November 2004 vi

Ekurhuleni State of Energy Report, November 2004 vii

Figure 1 Municipalities in Ekurhuleni Metropolitan Municipality........................ 3

Ekurhuleni State of Energy Report, November 2004 viii

1 Effects of vandalism at the Van Eck substation in Brakpan Customer Care

2 Closeup of vandalism at Van Eck substation (11kV cable was stolen)

3 Tragic consequences of illegal access to electricity lines

Ekurhuleni State of Energy Report, November 2004 ix

Ekurhuleni State of Energy Report, November 2004 x

Ekurhuleni State of Energy Report, November 2004 ES-1

1.1 Project objective

1.2 Structure of report

1.3 Introduction to EMM

Ekurhuleni State of Energy Report, November 2004 1

Table 1 EMM Customer Care Centres and Eskom Direct Supply

These are illustrated in Figure 1 overleaf.

Ekurhuleni State of Energy Report, November 2004 2

Ekurhuleni State of Energy Report, November 2004 3

Ekurhuleni State of Energy Report, November 2004 4

Ekurhuleni State of Energy Report, November 2004 5

Source: DME Integrated Energy Plan, March 2003

1.6 Methodology used

Ekurhuleni State of Energy Report, November 2004 6

Ekurhuleni State of Energy Report, November 2004 7

2.1 Electricity legislation

2.1.2 Service level issues

2.2 National legislation and policy pertaining to energy

2.2.2 EDI Restructuring Bill (April 2003)

Ekurhuleni State of Energy Report, November 2004 8

2.2.4 NER Regulatory Policy on Energy Efficiency and Demand Side

2.3 Other relevant national legislation

Ekurhuleni State of Energy Report, November 2004 9

2.3.2.1 Municipal Systems Act

2.3.2.2 Municipal Structures Act

2.3.2.3 Municipal Finance Management Act

2.3.3 National Environment Management Act, 107 of 1998

2.3.4 Environment Conservation Act of 1989

2.3.5 Agriculture White Paper (1995)

2.4 International legislation

Ekurhuleni State of Energy Report, November 2004 10

2.5 Provincial and municipal legislation

Ekurhuleni State of Energy Report, November 2004 11

3.1 Data sources

3.2 Supply side data

Ekurhuleni State of Energy Report, November 2004 12

3.2.3 Pipeline gas

3.2.4 Renewable energy and energy efficiency

3.3 Demand side data

3.3.1 Energy carriers

3.3.1.1 Liquid fuels

3.3.1.2 Pipeline gas

Ekurhuleni State of Energy Report, November 2004 13

3.3.2 Energy users