Tag: power

MCCIs Employee of the Month

MCCIs Employee of the Month

The first MCCI Member Employee of the Month has been announced, and it’s an employee from Brimis.

Congratulations to Ms Nina Nhlapo MCCIs First Employee of the month.

Ms Nina Nhlapo constantly engages and provides help in her work. Her responsibility is to ensure workplace health and safety compliance.  She manages all labour-related affairs professionally. The most recent awards were presented to her, following the latest ISO 9001 audit in our office.

Nina recruits excellent staff and maintaining employee records at all company sites and branches, as well as ensuring a smooth on boarding process. Recruiting temporary and permanent staff, resolving conflicts professionally and positively, conducting workplace investigations, and managing technical procedures.

To nominate a staff member, members can reach out to Anna-Marth Ott or Christo Stemmet at 013 243 2253 or enquiries@middelburginfo.com.

Middelburg must take its future into its own hands.

Middelburg must take its future into its own hands.
The executive team of the Middelburg Chamber of Commerce deliberated on how they can use the advantages of the locality to the benefit of the town and its businesses. With the constant load shedding, it was crucial to take charge of the electricity supply in our town.

The Executive and Jan Oberholzer, Eskom’s group chief operating officer, spoke about the issue on 5 April 2023 and MCCI invited the members to participate in the conversation. Following the meeting, we formed a sub-committee to continue the process. The committee will initiate various processes to move forward.

The technical committee will create a plan to start the project. AM Ott can provide you with more information if you are a person or business wanting to join the proposed consortium, cooperative, or other structure that will be established; ceo@middelburginfo.com.

Loadshedding the Last Straw

Loadshedding the Last Straw
The business community in the Highveld region of Mpumalanga has been aware for years of corruption and third-party interference at Eskom that has muddied the economy of Mpumalanga.

Many businesses have been damaged, and many have had to close because of the corrupt activities associated with the two main sectors, coal mining and Eskom, in the province. When Eskom claimed that there was not enough coal to supply Eskom to generate electricity, to awarding complex engineering contracts to an undertaker. Well, whoever awarded that contract was perhaps preparing to bury our economy.

We invite its members to join hands with the organization so that we can put pressure on the various role-players to protect our businesses. MCCI has created MCCI’s Electricity Support Group, +27 78 801 9719, or contact Anna-Marth Ott, at 013 243 2253 or ceo@middelburginfo.com.

 

MEDO ends the year on a high note

MEDO ends the year on a high note
The Middelburg Chamber of Commerce and Industry and our partner, the Mpumalanga Enterprise Development Organisation, are in the final stages of a local economic development programme.

A local corporate company has mandated MEDO to develop a programme that focus on local economic development. The enterprise development element of the BBBEE code has many parts and can be confusing for businesses, especially if you simply want to continue running your own business. Committed business persons want to see that the money spent has a local impact.

MEDO, with the support of MCCI, trained 141 employees of 63 black-owned businesses from 1 September 2022 to 13 December 2022. These companies trained their employees to increase their business’ offered services.

MEDO provided training on technical skills and various business trainings. We end the year on a literal high as twenty companies complete their certificate in working at height with the required health and safety certificate. These twenty companies will start work next year with the ability to offer a much needed service to the local business community.

Follow the MCCI’s Facebook page so that you do not miss out on the last leg of the training offered in January 2023. You can also register your business on the MCCI’s Local Procurement Database, so that you get the invitations in your inbox. Contact Njabulo at reservations@middelburginfo.com or 013 243 2253 for more information.

Another legal victory for Chambers

Another legal victory for Chambers

Municipal electricity price hikes were ‘unlawfully calculated’, says court.

When chamber members work together, business wins. The Pietermaritzburg and Midlands Chamber of Business and the Nelson Mandela Bay Business Chamber took the National Energy Regulator of South Africa (NERSA) to court and won. Eskom supported the chambers’ application.

The Gauteng High Court has found that the NERSA used unlawful methodology in calculating annual electricity price increases for municipalities. It declared its guidelines and benchmarking methodology unconstitutional and gave NERSA one year to change this.

Chambers said that municipalities use electricity tariffs to pass their inefficiency costs to their consumers. They used the electricity income to pay for their management failures, including lack of infrastructure maintenance and rampant electricity and cable theft, to consumers. NERSA has not required municipalities to demonstrate the relationship between their actual costs, the tariffs they have applied for, or the benchmark tariffs.

In her order, Judge Elizabeth Kubushi also said that NERSA does not use the municipalities’ financial information to assess proposed rates for compliance with the law. Instead, it uses a sample of these forms to calculate an average rate of increase.

Steve Tshwete Municipality is one of the few that has calculated its electricity tariffs with integrity. The Middelburg Chamber of Commerce and Industry thanks STLM for doing so. Other towns have not been so lucky, and their businesses have been hurt by the poor financial management of their municipalities.  Members interested in the full judgement can contact Anna-Marth Ott at ceo@middelburginfo.com

Are you a manager or the owner of a Business?

Are you a manager or the owner of a Business?
In the past year, many companies have had to deal with local issues that normally have no impact on their operations. Have you felt powerless and isolated as a manager or owner of a business with the municipality closed?

Even though it seemed like nothing was happening at the Middelburg Chamber of Commerce and Industry during this time, many of the business owners who sat on the Executive worked in the background to find a mediated solution. You do not have to stand outside and not know what is happening. Become a member of the MCCI, and you can play an active role in the strategies that influence the town’s growth.

What do you think should happen in the city in the next five to six years? Do you own property, have your own business or run a company? Your input and participation are valuable; your future is at stake. Why should you rely on politics for your future? Work together with other businesses for the future of Middelburg and Steve Tshwete.

A reminder to members: if you have a question or concern, we are only a phone call away, or you can reach me at ceo@middelburginfo.com.

JET for Business: Opportunities?

JET for Business: Opportunities?
The Middelburg Chamber of Commerce and Industry hosted a congress on Wednesday, 28 September 2022, to discuss business opportunities in the Just Energy Transition (JET). MCCI President Que Naidoo opened the congress and stressed that the role of coal in the region cannot be dismissed. MCCI wanted the conversation and opportunities around JET to change from purely socio-economic development to business-oriented expansion.

Dr. Sibanda, CEO of Exilite, introduced the day. He said that we need to see JET as a system with interconnected parts. If you take out the parts of the system, the system loses its essence. One part cannot thrive if the other parts are not functioning. The economy has to adapt to the changes that are coming. We have assumed that the part of the system that concerns electricity supply has shown us that some parts of the country’s electricity supply system are not working.

Dhesigen Naidoo, Senior Advisor to the World Bank and responsible for climate adaptation in the South African President’s Climate Change Commission, spoke to the companies and they agreed to have further discussions with MCCI. How to finance renewable energy was presented by Rentia van Tonder, Head: Renewable Energy, Power & Infrastructure, Standard Bank. Wayne Glossop of Wartsila and Jean-Francois Pinharanda of Total Energy, Matola LNG Project, spoke about gas development and opportunities for JET. Is nuclear a viable part of the energy mix for JET, said Mxolisi Makhatini, Group Executive, Power and Industry, Nuclear Energy Corporation of South Africa.

We also looked at the accessibility of the grid, by Ronald Marais, Grid Planning from Eskom Transmission and how tariff changes could be calculated when you supply Eskom, and Feed in Tariff Changes – Shirley Salvoldi, Corporate Consultant, Electricity Pricing, and Eskom Distribution. These were very technical presentations, but they brought some clarity to the current situation.

Mike Teke, Chief Executive Officer, Seriti Resources, spoke about adapting the coal mining industry to a greener future. He began by highlighting the role that coal mining plays in the economy, that 93 000 direct jobs and 200 000 indirect jobs are associated with coal mining. He also said that Sereti is looking into wind energy in the Gert Sibande area and is also exploring other alternative energy generation. He urged everyone to take a balanced approach and explore the opportunities that are available.

At the end of the day, businesses and our members want reliable, affordable baseload power to grow our businesses and economy and keep jobs in the region. Thank you to Nashua and Standard Bank for your main sponsorships. Members interested in joining the next round of discussions can contact me at ceo@middelburginfo.com.

 

Middelburg hosts its own JET for Business

Middelburg hosts its own JET for Business
The Middelburg Chamber of Commerce and Industry (MCCI) is hosting a Just Energy Transition Congress, Just for Business, on 28 September 2022 at the Steve Tshwete Banquet Hall.

Since the Just Energy Transition (JET) concept was introduced, numerous studies have been conducted to discover how JET will affect communities. Much of the academic research focused on the skills and education levels in the Highveld region of Mpumalanga. In the meantime, the business community has started to investigate the impact JET will have on their future and how they can ensure the success and sustainability of their businesses. Many companies are already involved in green energy and have developed business products and solutions.

MCCI invites all businesses to our JET for Business Congress. We need to talk to each other about what we need and what products and solutions are available. If you have a great product or solution, please contact me to find out how your business can participate at ceo@middelburginfo.com or 013 243 2253.

The Illegality Of The Municipal Tariff Regulations Of Nersa.

The Illegality Of The Municipal Tariff Regulations Of Nersa

The filing period for the annual municipal electricity tariff increases is currently underway. The Middelburg Chamber of Commerce and Industry participates in the Association of Chamber of Commerce (ASAC) submission and subsequent legal action against the municipal tariff provisions. Below you will find a summary of the ASAC submission.

ASAC is, in this case, concerned with representing electricity consumers behind municipal boundaries. Municipalities purchased 42% of their electricity from Eskom in the 2020/21 financial year 1. Municipal industrial users consumed about half of this, or almost 20% of Eskom’s output. Including commercial use, we estimate that the municipal industry consumes up to 26% of Eskom’s power.

For example, the municipal industry includes almost the entire automotive industry (all Original Equipment Manufacturers (OEMs) and almost the entire supply base). A significant proportion of the country’s large-scale industry and almost all of its medium-scale industry is dependent on municipal supply and tariffs. Therefore, the municipal supply function and the setting of tariffs affect a large part of South Africa’s manufacturing economy and the associated jobs in these sectors. The total membership represents almost 1 million employed people.

To reiterate the arguments from previous submissions and relevant to the key issues surrounding the 2022/2023 Consultation Paper, Nersa has not changed its approach to tariff setting. Nersa appears intent on continuing down the path of its historically flawed approaches. Despite the apparent breach of the Electricity Regulation Act (ERA), Nersa allowed the erroneous increase in municipal tariff guidelines and benchmarks to continue for the 2021/2022 financial year.

In its decision, Nersa did not make any credible prediction that this method would not be used in the future. Some ASAC members have taken Nersa’s decision on the 2021/2022 municipal tariffs to court. The businesses were frustrated by the regulator’s unwillingness or inability to make positive changes to the municipal electricity supply Industry (ESI).

Members interested in receiving a copy of the ASAC submission should contact Anna-Marth Ott at ceo@middelburginfo.com.

Review of the Electricity Regulatory Act and related Electricity Pricing Policy.

Review of the Electricity Regulatory Act and related Electricity Pricing Policy.

The Casting, Forging, and Machining Cluster (CFMC) is concerned that industrial users are burdened by municipal tariffs. The EPP promulgated in 2008 is largely ignored and is not seen as a policy directive but rather as a rough guide. The EPP has little relevance in the current process of setting municipal tariffs.

In many municipalities, these tariffs are poorly structured, not cost-reflective, and contain illegal and unrelated subsidies that lead to unjustified increases in production costs. Individual producers are unable to offset these costs through productivity increases alone. These unjustified increases in municipal and industrial tariffs and poor security of supply have led to an increasing loss of competitiveness of South African companies in the global market.

The current structures and pricing processes tax producers upfront for a small profit and serve to destroy the economy. The review document offers little, although the changes are exciting. CFMC believes that local governments need to be encouraged to follow the law and related guidelines. Enforcement of the guidelines is problematic. CFMC cautions that the ideals of a fair and equitable process will be further limited if deviation and non-compliance are allowed. Market corrections in the ESI will not necessarily benefit the industry. There is a risk that free-market outcomes will be compromised. The CFMC is concerned about the lack of controls on municipal electricity bills, which largely offset inefficiencies. And regardless, we do not have sufficient knowledge and information to have a constructive discussion on cost structures, cost drivers and unbundling.

Load curtailment is a valuable tool to encourage industrial users to reduce their load in times of need. CFMC is keen to work with municipalities to facilitate introducing such a programme in industrial areas.

In the past, Steve Tshwete Municipality has provided good support and acceptable (within the legislative framework) tariff increases to industrial areas. Security of supply remains a concern in light of the recent municipal strike and continuous vandalism of municipal infrastructure. The debate between the stakeholders must be held soon; our town needs its industries to remain economically viable.

A copy of the full submission is available to members at the MCCI secretariat; please contact us at info@middelburginfo.com.