Goingtomeet.com Press

Metering and Smart Grids Caribbean is the place for leaders of the metering and smart grids businesses to craft the future strategy of the power industry’s game-changer.

A unique event – The program focuses solely on THE hottest issues facing organisations operating in the Caribbean.

Network with the Caribbean’s energy leaders –  You will get to meet the people with real purchasing power as well as project managers with practical hands on experience on their recent or imminent deployments. Inform your business – This key event will bring together the topics of AMI, Smart Grids, Smart Homes, Prepayment, Demand Side Management and Renewable Energy into one intensive three day event.

New and innovative event features – Speed Networking and Panel Debates Cutting edge case studies – Hear a wide range of case studies from pilots in the region as well as established experts from the US

Join the 2012 Metering and Smart Grids event now!

Sensus Provides AMI Communications Infrastructure for Grand Cayman Utility FlexNet wireless communications system offers higher protection against tropical storms and seamless interoperability with pre-pay billing application for a Caribbean utility

RALEIGH, N.C. (February 21, 2012) – Caribbean Utilities Company, Ltd. (CUC), the public electric utility which serves Grand Cayman, is building a new utility network infrastructure using the Sensus FlexNetTM advanced metering infrastructure (AMI) system for residential and commercial electricity customers.

CUC is implementing the wireless licensed spectrum FlexNet AMI system with only two tower base stations to cover all of Grand Cayman, an area of about 76 square miles. CUC is installing Sensus iCon® A electric meters for residential applications and iCon® APX electric meters for commercial customers with roughly 28,000 endpoints by the project’s completion. In conjunction with the FlexNet AMI installation, CUC has chosen to deploy a pre-pay billing application. Third party vendor Exceleron will partner with Sensus to provide its industry leading Prepaid Account Management System (PAMS), a hosted service sharing a common MultiSpeak interface.

PAMS will exchange data seamlessly with the FlexNet system and CUC’s customer information system (CIS). A phased deployment has begun and the project is expected to be completed by the end of 2013.

“The Sensus FlexNet system offered the right features and capabilities to meet the requirements of our AMI business case,” said Manager Engineering Services at CUC, Sacha Tibbetts. “We were further encouraged by the speed and available bandwidth of the FlexNet network which allows for the layering of future smart grid functionality.”

Mr. Tibbetts explained that CUC made its selection based on two main factors. The minimal infrastructure required by a point-to-multipoint wireless network was essential as it reduces storm damage risks and has a lower overall cost to install and maintain. The second major consideration was the need for a pre-paid billing option that could provide flexibility for part-time residents and visitors to the island as well as full time residents who want greater control over the amount of money they spend on electricity. Exceleron’s PAMS software has been successfully integrated with FlexNet and was made part of the proposal to CUC.

Sensus/Page 2

Under a pre-paid plan, customers can buy electricity in any quantity without the need to have a security deposit on account. CUC’s pre-paid customers will receive notification of a low balance (in dollars) through email, text or automated voice messages as reminder for them to top up their balance. They will have the opportunity to track usage and make payments through a dedicated web portal as well as pay by phone, CUC kiosk or office. Based on consumer feedback, and experience in other Caribbean jurisdictions, CUC believes that the pre-paid form of electricity purchase will be very popular and they plan on making it available to as many customers as possible.

Installation of the full AMI system in the Caribbean island territory is expected to be straight forward. As FCC licensed spectrum does not apply in the region, Sensus helped CUC secure and integrate licensed 900 MHz frequencies from the Information Communication Technology Authority (ICTA) which governs spectrum for the Cayman Islands. The FlexNet system will be able to accommodate future applications for distribution automation and demand response.

“CUC is making the leap to smart grid in a very responsible, coordinated manner that will certainly improve service reliability and efficiency across the island,” said Randolph Wheatley, vice president of corporate marketing and communications at Sensus. I think the adaptability of our technology to meet specific needs in that part of the world certainly stood out and made the selection process much easier.”

About Sensus

Sensus is a leading utility infrastructure company offering smart meters, communication systems, software and services for the electric, gas, and water industries. Sensus technology helps utilities drive operational efficiency and customer engagement with applications that include advanced meter reading, data acquisition, demand response, distribution automation, home area networking and outdoor lighting control. Customers worldwide trust the innovation, quality and reliability of Sensus solutions for the intelligent use and conservation of energy and water. Learn more at www.sensus.com.

To follow Twitter updates from Sensus, please visit http://twitter.com/sensussmartgrid.

Contacts

Sensus The McDonnell Group

Linda Palmer Marc Marton

Manager, Corporate Communications Director, Public Relations

(919) 845-4021 or (919) 259-5778 (cell) (770) 645-1334

linda.palmer@sensus.com marc@themcdonnellgroup.com

We have developed a short 30 second advert for flighting on CNN International EMEA feed (Europe, the Middle East & Africa)

The concept is not only to create awareness around the event but also promote awareness around the current energy situation and solutions in a fresh and interesting way.

Share this : Africa Energy Indaba on YouTube

PRESS RELEASE

WORLD ENERGY COUNCIL HEAD TO DELIVER CLOSING KEYNOTE ADDRESS AT AFRICA ENERGY INDABA

Africa Energy Indaba is pleased to announce that Dr. Christoph Frei, Secretary General of the World Energy Council will be delivering the closing keynote address at the upcoming Africa Energy Indaba scheduled to take place from 21 -23 February 2012 at the Sandton Convention Centre in Johannesburg.

The Africa Energy Indaba is an annual energy conference held in South Africa that brings together  – under one roof – Africa’s leading energy experts, government officials, financers and other relevant energy stakeholders to talk on energy projects, challenges and opportunities in Africa.

The World Energy Council formally recognises Africa Energy Indaba as the council’s African Regional Meeting, an event renowned as a leading energy gathering in the region which aims to facilitate interaction between energy leaders to plan the energy future and landscape of the continent.

Dr. Frei commented “Africa shares many of the global concerns of the energy leaders’ community. While there is no single silver bullet solution to respond to the varied nature of Africa’s energy challenges, the Africa Energy Indaba is an important forum to help leaders address the Energy Trilemma.”

This is well aligned with the objectives of the World Energy Council –as the principal impartial energy policy forum promoting an affordable, stable and environmentally sensitive energy system for the greatest benefit of all.

“We are looking forward to welcoming Dr. Frei to this very important event and are pleased to be aligned with such a well-respected global organisation represented by 3000 members from governments, the private sector, NGO’s and other energy stakeholders from over 90 countries , 20 of which are African states,” says Liz Hart, Managing Director of Africa Energy Indaba.

The World EnergyCouncil informs global, regional and national energy strategies by hosting high level events, publishing authoritative studies and working through its extensive member network to facilitate the Energy Leaders’ dialogue.

ENDS

1 February 2012

Prepared by: Siyenza Management

Karabo Keepile

011 463 9184

Karabo@siyenza.za.com

On behalf of: the Africa Energy Indaba 2012

Liz Hart

011 463 9184

About Africa Energy Indaba 2012

The Africa Energy Indaba takes place from February 21 to 23 2012 at the Sandton Convention Centre, Sandton, Johannesburg. The event brings together stakeholders from the global energy industry and the financial community, including energy providers, engineers, financial service providers, economists, government representatives and media. Visitwww.energyindaba.co.za

About the World Energy Council: www.worldenergy.org

AFRICAN ENERGY SECTOR IS OPEN FOR BUSINESS

The African energy sector is open for business. In actual fact there has been no better time than now to conduct business on the continent. The number of projects has quadrupled from that of 10 years ago and many of the continent’s governments are now democratic, paving the way for economic growth.

In support of the opportunities within the energy sector, the annual Africa Energy Indaba which will be held on 21-23 February, has developed a unique roundtable which will focus and unlock the potential of this vital industry sector for companies wanting to tap into this market.

Paul Runge – Managing Director of specialised consulting firm Africa Project Access will be heading an energy roundtable discussion at the upcoming Africa Energy Indaba on February 23 February– opening up the floor for discussion on major energy greenfields and brownfields projects on the continent. According to Runge “the discussion will have a business focus and will also be very practical. We will look at projects from the ground up and talk about where things are headed. We will talk about export credit insurance, state organs that are able to help South African & African companies and projects throughout the Sub-Sahara region and regional interconnectors,” says Runge.

Joining Runge in the roundtable discussion will be role players in some of these projects such as Ethiopia’s hydro-power programme – currently the biggest hydro-power project in Africa. The roundtable discussion will bring together Africa’s energy operators, financers and other important role-players. “It will be a great opportunity to learn of new and exciting projects and opportunities as well as network”, says Runge. Templates of specific projects will also be made available to those attending.

The Africa Energy Indaba will take place at the Sandton Convention Centre in Johannesburg.  This leading business forum brings together more than 300 senior level energy sector experts and decision–makers. Over 100 leading energy suppliers will also be present at the annual exhibition showcasing their latest technologies, equipment and services.

Delegates attending this year’s conference are also invited to attend and take part in the roundtable discussion scheduled for February 23, 2012 and information is available on the event website www.energyindaba.co.za .

Paul Runge has 30 years’ experience assisting companies to access business and projects in Africa. He has developed a practical rationale and methodology that will be of value to companies and organisations wishing to diversify their portfolio into Africa. His company Africa Project Access supplies approximately 80 companies and organisations with early alerts on projects across a broad range of sectors on the continent. As a former diplomat, Runge has useful background knowledge on the political and business landscape of the countries he conducts business in – a value add for the clients who seek his services.

Runge has lived in Gabon and supervised projects in the Cape Verde Islands, has spent six years with the South African Foreign Trade Organisation and has led many of the first South African business delegations into other African countries following the end of international sanctions against South Africa.  He has furthermore, published a book, Potholes & Profits: Business (& other) Conversations and Experiences from Africa which is an anecdotal account of his experiences in a number of African markets.

ENDS

23 January 2012

Prepared by: Siyenza Management

Karabo Keepile

011 463 9184

karabo@siyenza.za.com

On behalf of the Africa Energy Indaba 2012

About Africa Energy Indaba 2012

The Africa Energy Indaba takes place from February 21 to 23 2012 at the Sandton Convention Centre, Sandton, Johannesburg. The event brings together stakeholders from the global energy industry and the financial community, including energy providers, engineers, financial service providers, economists, government representatives and media. Visit www.energyindaba.co.za.

Acknowledged as a World Energy Council (WEC) event for Africa as well as fully endorsed by the South African National Energy Association (SANEA), the event has the support of the world’s leading energy industry associations.

About the World Energy Council www.worldenergy.org

About SANEA www.sanea.org.za

About the Africa Project Access-www.africaprojectaccess.co.za

Biogas is probably the best kept secret in the renewable energy industry.

Organic waste is one of the untapped sources of natural energy available today. “It’s a simple solution that can be deployed in as quickly as three days but people don’t know too much about it”, says Jonathan de Magalhães, Managing Director of Ubuntu Energy Solutions. While biogas is used all over the world –India for example has more than 4.5 million digesters–harnessing biogas energy in South Africa is practically unknown. Only a small number of digesters have been built successfully and commissioned to date – a loss to the renewable industry sector in the country since biogas fulfils all of the criteria relating to environmental sustainability, requires a relatively low technological input and is cost effective to implement.

Biogas typically refers to the gas which is produced by the biological breakdown of organic matter. Organic waste, such as dead plant matter, animal manure and kitchen waste, can easily be converted into biogas in a simple biogas digester. Biogas consists mainly of methane (CH₄) and carbon dioxide (CO₂). Biogas can be used as fuel for cooking, lighting, water heating as well as being able to run biogas generators to produce electricity.

Biogas provides a clean, easily controlled source of renewable energy from available organic waste for a small labour input, replacing firewood or fossil fuels, which are becoming more expensive as demand outweighs the supply.

Additionally, a biogas digester treats the organic waste and prevents it from taking up precious space in our landfills or over-burdened sewerage plants. In South Africa the waste disposed of in landfills produces unwanted landfill gas (Methane CH₄) and leachate emissions. Furthermore, there is pressure on the country’s aging sewerage system. According to de Magalhães, generating biogas presents a Win-Win -Win solution because it offers:

Easy disposal and treatment of Organic Waste

-      Black Water Treatment: By feeding the black water (sewerage) into the biogas digester, additional organic waste as well as much needed water, will increase the yield of biogas from the digester daily. Additionally, in environments that would normally require a septic tank system, the cost saving of not needing the septic tank can be used to offset the costs of the biogas system.

-      Organic waste, such as grass cuttings, animal manure, kitchen waste and almost any other type of similar waste, can be used to generate a usable form of energy.

-      As the biogas digester is a closed system, there is no leakage of the organic waste into the surrounding environment. This can significantly reduce, or even eliminate, the need for an Environmental Impact Study.

Reduction of associated Energy Costs

-      The biogas generated by the digester system can be used for water heating, space heating, cooking, lighting or running a biogas generator for electricity generation. Or any combination of these.

-      By using biogas instead of traditional resources, such as electricity or gas, to provide this functionality, energy costs can be significantly reduced, providing a quick Return on Investment (ROI) for biogas solutions.

Provides further Cost Savings or a Passive Income

-      As the process of biogas generation uses the bacteria in the organic waste, the organic slurry found at the end of the process can be easily managed, and all organic smells are contained within the closed digester system. This organic slurry can be used as a natural fertiliser for nearly all agricultural applications, reducing any costs associated with purchasing traditional fertilisers.

-      This 100% natural organic fertiliser can also be sold to agricultural farms and nurseries, either in its liquid form or pre-dried and pelletized, providing an additional form of income from the biogas digester.

Biogas digesters are used all over the world, and the technologies have made leaps and strides, especially over the past three years. The first biogas system was installed in India in 1859. South and south-west Brazil are characterised by intensive livestock farming. Rio Grande do Sul, the southernmost Federal state in Brazil, has an abundance of pig farms. The manure produced in large quantities by pig farming is used for biogas production.

According to de Magalhães, generating biogas offers a better Return on Investment (ROI) than solar or wind systems. “It’s easy to install and deploy, and is very low in maintenance, probably only requiring some attention once every 5 to 7 years. For these reasons, biogas digesters would work well in rural villages, farming communities and game lodges,” says de Magalhães.

But even the average family in Johannesburg could use their organic household waste in a biogas system. “As long as you have enough feedstock to put into the biogas system, such as blackwater, grass cuttings, and a reasonable amount of kitchen waste, then you can generate your own biogas. Even with a small system with enough organic feedstock, combine this with some solar panels and an intelligent inverter system, and you could get about 80% off the grid, all things considered.” says deMagalhães.“There is no smell because it is a closed system, and the payback period could easily be under 10 years, which is much shorter than a solar-powered system.”

However, amidst all these advantages, there have been no government initiatives in South Africa to assist those wishing to deploy biogas systems.

To learn more about biogas technology, be sure to attend the annual Africa Energy Indaba being held from February 21 to 23, 2012 at the Sandton Convention Centre in Johannesburg.

ENDS

16 January 2012

Prepared by:      Siyenza Management

Karabo Keepile

011 463 9184

On behalf of:     Africa Energy Indaba

Liz Hart

011 463 9184

About the Africa Energy Indaba

The Africa Energy Indaba, adopted by the World Energy Council (WEC) as the African regional event of the WEC, receives global recognition as the foremost event for energy professionals from across the globe and is rapidly gaining momentum as the energy business forum in Africa.
Presented by the South African National Energy Association (SANEA) in association with the World Energy Council, the forum has achieved the highest level of endorsement and support and as such is without doubt the leading energy event in Africa.

About Ubuntu Energy Solutions

Ubuntu Energy Solutions is a specialist South African energy company that integrates different renewable energy and power solutions for our customers, providing them with the right solution for their energy requirements. Contact Jonathan de Magalhães atjonathan@ubuntuenergy.com, or visit www.ubuntuenergy.com.

The Africa Energy Indaba has partnered with Fiat and Alfa Romeo Specialist, Arnold Chatz Cars. This collaboration will see Arnold Chatz Cars sponsoring a fleet of three eco friendly Fiat 500s as the official vehicle of the Africa Energy Indaba, that will take place on 21-23 February 2012 at the Sandton Convention Centre.

The Fiat 500 is a leading eco friendly car with its 1.2 liter engine having a CO2 emission level below the taxable threshold, combined with plenty of power and a full house of extras. Safety levels are exceptional, with seven airbags, ABS brakes and a five star NCAP safety rating. The Fiat 500 is the car of choice to be associated with the Africa Energy Indaba with the commitment of ‘moving energy in Africa into the future’ and finding alternative solutions for Africa’s energy needs and greening the environment.

Liz Hart, MD of the Africa Energy Indaba says “Energy efficient technology is crucial to the future of the continent and our aim with the event is to showcase new technologies as well as to highlight innovation that business and the consumer can make use of. Climate Change is receiving a lot of attention with the imminent COP 17 event in Durban. All of society needs to take responsibility and make good and informed decisions with regard to carbon emissions and we are delighted to partner with Arnold Chatz Cars to highlight the importance of finding solutions for our energy needs while looking for better and more efficient technology to sustain our lifestyle. The Fiat 500 is a superb vehicle that is highly fuel efficient with low carbon emissions, and the highest safety levels in its class.”

Arnold Chatz Cars and Fiat Auto are delighted to be associated with Africa Energy Indaba 2012. Fiat Auto are the international frontrunners in the area of low emission and eco friendly vehicles and we see the Fiat 500 as the natural partner vehicle for AEI 2012.

This green fleet will be making its way down to COP 17 in Durban during December and will campaigning around Johannesburg throughout the new year leading up to the Africa Energy Indaba – Africa’s only World Energy Council (WEC) endorsed event.

The Fiat 500s will also be on display at the Africa Energy Indaba, in the exhibition hall. The exhibition will be open to the public from 10h00 till 16h00 on 21 February and 10h00 until 17h00 on 22 and 23 February 2012.

Photographs of the car handover are available on request.

ENDS
21 November 2011

Issued by: Siyenza Management
Mabel Modipa
011 463 9184

On behalf of: Africa Energy Indaba
Liz Hart
011 463 9184

Arnold Chatz Cars
Derik Scorer
0829444444

About the Africa Energy Indaba 2012
The Africa Energy Indaba, adopted by the World Energy Council (WEC) as the African regional event of the WEC, receives global recognition as the foremost event for energy professionals from across the globe and is rapidly gaining momentum as the energy business forum in Africa.

Presented by the South African National Energy Association (SANEA) in association with the World Energy Council, the forum has achieved the highest level of endorsement and support and as such is without doubt the leading energy event in Africa.

About Arnold Chatz Cars
Arnold Chatz Cars is a Fiat, Abarth and Alfa Romeo Dealership based in Hydepark, managed and owned by Derik Scorer who is also the Chairman of the National Automobile Dealers’ Association.

Energy Intensive Users’ Group (EIUG)
Eskom electricity price path is not sustainable, say biggest users
The Energy Intensive Users’ Group (EIUG) has cautioned that the high and continually rising price of electricity — since the first round of tariff hikes in South Africa — will place consumers and business under great pressure in the next few years.

The EIUG supports the need for a strong and healthy Eskom and recognizes the importance of the power utility to the South African economy. However the EIUG is adamant that there is a pressing need to balance Eskom’s financial health with the affordability of electricity to ensure that consumers do not suffer unduly, and that businesses are able to remain competitive.

As far as the EIUG is concerned, the next scheduled tariff increases will have adverse effects, and far reaching implications for all South Africans. These price increments add additional pressure to Industrial customers to maintain current production levels and further price increases will result in production halts and job losses, which South Africa cannot afford.

South Africa has already seen the effects of rising electricity prices on key business sectors and as a result, the EIUG is undertaking an industry wide impact assessment of the electricity price path. “We have seen a number of refineries and smelters closing down and need to determine how poor the outlook is to ensure South Africa doesn’t shed critically needed jobs”. The EIUG is urging all companies currently concerned about the impact of electricity prices to go to www.eiug.org.za to register to participate in this impact assessment.

Eskom’s results for 2011, released in June, show an expected rise in total revenue by 28.6% on the back of the 24.8% electricity tariff increases last year. But a spokesperson for the EIUG said it was of concern that primary energy costs have increased by 19.8%.The EIUG says this is a significant increase over and above the 17% increase in primary energy seen last year and expects NERSA to conduct an audit to determine the root causes.

In real terms, the average Eskom price this year will be ~50c/kWh. Taking into account that new generation costs about 75c/kWh and adding 30% for transmission and distribution, the electricity price could end up close to a whopping 100c/kWh. Municipal customers will pay more, while Eskom transmission customers will pay less as NERSA has recommended that municipalities charge an extra 15 percent for 2010/11, then 16 percent for each of the next two years.

Taking into account the blending of old and new assets it would be expected that customers should not pay more, and should preferably pay less, than 100c/kWh but Eskom has been allowed to revalue its assets and so the price advantage of blending has been lost.

The EIUG expects the average tariff to settle around 75c to 80c/kWh by 2016, which means that customers can expect another 50% to 60% increase over the next three years. The group, which represents the biggest business energy users in the country, says it should be a priority to hold increases as low as possible, so as to ensure Eskom’s financial sustainability, while ensuring affordability and competitiveness.

The EIUG says Eskom’s results show that the power utility has invested a significant amount of cash in securities, perhaps as a result of borrowing too much cash and having to invest the excess. Clearly, Eskom is not spending as much Capex as expected.

The power utility’s cash position is looking good with interest cover going from 0.83 to 1.54. Ideally, this should be above 2.0 and possibly even 2.5. Debt service cover ratio has gone down slightly from 2.5 to 2, which is acceptable but shouldn’t drop further. The next round of tariff increases will push Eskom’s finances into a very comfortable zone. Regulatory Return on Assets (ROA) is approximately 7.5%, with Eskom and NERSA aiming for 14%. The EIUG says this will increase cash and profitability to unnecessarily high levels and has argued for a ROA target of 11.5% to mitigate the current unsustainable price path.

The debt percentage is around 62%, which is very close to the target of 60%.

Overall, the EIUG says, Eskom’s financial position is looking much better and virtually all financial indicators are improving, but the group cautions that electricity prices must not be “overcooked” or South Africa will suffer.

——————————————————————————————————————————

Shaun Nel
Director& Founder, BDO Consulting Services

Currently the Programme Director for the Energy Intensive Users Group Programme Office. He was part of the Department of Energy’s IRP 2010 technical task team. He is part of the National Medium Term Risk Mitigation Task Team to address the energy crisis in the medium term. He was previously the Programme Director of the National Electricity Response Team (NERT).

——————————————————————————————————————————

About the EIUG

Established in 1999, the Energy Intensive User Group (EIUG) of South Africa is a voluntary, non-profit association of large scale, high intensity energy consumers whose members currently account for approximately 44% of the electrical energy consumed in South Africa. For more info visit www.eiug.org.za

——————————————————————————————————————————

CONTACT DETAILS
To secure your participation at this prestigious event, please contact:

Liz Hart
Tel: +27 11 463 9184
Fax: +27 11 463 8432
Email: info@siyenza.za.com

SEPTEMBER 2011

Energy Intensive Users’ Group (EIUG)
Eskom electricity price path is not sustainable, say biggest users

The Energy Intensive Users’ Group (EIUG) has cautioned that the high and continually rising price of electricity — since the first round of tariff hikes in South Africa — will place consumers and business under great pressure in the next few years.

The EIUG supports the need for a strong and healthy Eskom and recognizes the importance of the power utility to the South African economy. However the EIUG is adamant that there is a pressing need to balance Eskom’s financial health with the affordability of electricity to ensure that consumers do not suffer unduly, and that businesses are able to remain competitive.

As far as the EIUG is concerned, the next scheduled tariff increases will have adverse effects, and far reaching implications for all South Africans. These price increments add additional pressure to Industrial customers to maintain current production levels and further price increases will result in production halts and job losses, which South Africa cannot afford.

South Africa has already seen the effects of rising electricity prices on key business sectors and as a result, the EIUG is undertaking an industry wide impact assessment of the electricity price path. “We have seen a number of refineries and smelters closing down and need to determine how poor the outlook is to ensure South Africa doesn’t shed critically needed jobs”. The EIUG is urging all companies currently concerned about the impact of electricity prices to go to www.eiug.org.za to register to participate in this impact assessment.

Eskom’s results for 2011, released in June, show an expected rise in total revenue by 28.6% on the back of the 24.8% electricity tariff increases last year. But a spokesperson for the EIUG said it was of concern that primary energy costs have increased by 19.8%.The EIUG says this is a significant increase over and above the 17% increase in primary energy seen last year and expects NERSA to conduct an audit to determine the root causes.

In real terms, the average Eskom price this year will be ~50c/kWh. Taking into account that new generation costs about 75c/kWh and adding 30% for transmission and distribution, the electricity price could end up close to a whopping 100c/kWh. Municipal customers will pay more, while Eskom transmission customers will pay less as NERSA has recommended that municipalities charge an extra 15 percent for 2010/11, then 16 percent for each of the next two years.

Taking into account the blending of old and new assets it would be expected that customers should not pay more, and should preferably pay less, than 100c/kWh but Eskom has been allowed to revalue its assets and so the price advantage of blending has been lost.

The EIUG expects the average tariff to settle around 75c to 80c/kWh by 2016, which means that customers can expect another 50% to 60% increase over the next three years. The group, which represents the biggest business energy users in the country, says it should be a priority to hold increases as low as possible, so as to ensure Eskom’s financial sustainability, while ensuring affordability and competitiveness.

The EIUG says Eskom’s results show that the power utility has invested a significant amount of cash in securities, perhaps as a result of borrowing too much cash and having to invest the excess. Clearly, Eskom is not spending as much Capex as expected.

The power utility’s cash position is looking good with interest cover going from 0.83 to 1.54. Ideally, this should be above 2.0 and possibly even 2.5. Debt service cover ratio has gone down slightly from 2.5 to 2, which is acceptable but shouldn’t drop further. The next round of tariff increases will push Eskom’s finances into a very comfortable zone. Regulatory Return on Assets (ROA) is approximately 7.5%, with Eskom and NERSA aiming for 14%. The EIUG says this will increase cash and profitability to unnecessarily high levels and has argued for a ROA target of 11.5% to mitigate the current unsustainable price path.

The debt percentage is around 62%, which is very close to the target of 60%.

Overall, the EIUG says, Eskom’s financial position is looking much better and virtually all financial indicators are improving, but the group cautions that electricity prices must not be “overcooked” or South Africa will suffer.

——————————————————————————————————————————

Shaun Nel
Director& Founder, BDO Consulting Services

Currently the Programme Director for the Energy Intensive Users Group Programme Office. He was part of the Department of Energy’s IRP 2010 technical task team. He is part of the National Medium Term Risk Mitigation Task Team to address the energy crisis in the medium term. He was previously the Programme Director of the National Electricity Response Team (NERT).

——————————————————————————————————————————

About the EIUG

Established in 1999, the Energy Intensive User Group (EIUG) of South Africa is a voluntary, non-profit association of large scale, high intensity energy consumers whose members currently account for approximately 44% of the electrical energy consumed in South Africa. For more info visit www.eiug.org.za

——————————————————————————————————————————

CONTACT DETAILS
To secure your participation at this prestigious event, please contact:

Liz Hart
Tel: +27 11 463 9184
Fax: +27 11 463 8432
Email: info@siyenza.za.com

China, as the world’s biggest energy consumer, has an abundant of unconventional gas, such as shale gas which is exploitable reserves of 26 trillion cubic meters, as much as that found in the United States. There are abundant of unconventional gas resources in China but these resources need the opportunity to develop such as government encourage. In 2011, 12th Five-Year Plan, China’s government will build up flexible the political environment to attract more entrants to developing unconventional gas resource. Unconventional gas resource are expected to dedicate the future of energy sector across global, including China. Many international operators are attracted by the big potential market and get ready to explore China market.

China completed its first horizontal shale gas well, after 11 months of drilling, as the world’s biggest energy consumer seeks to tap its reserves of the cleaner-burning fuel.“Once we start large-scale production, shale gas won’t be an unconventional fuel for China anymore and it will play an important role to supply China’s energy needs,” Che Changbo, said, deputy director of the Ministry of Land and Resource’s oil and gas strategy center.

In Asia, Indonesia and India have the quite experience about unconventional gas exploration and production. Having plentiful of unconventional gas reserves is the major reason for these countries to develop but the flexible market access principles also stimulate unconventional gas booming in these countries. Sharing the advanced experience and technologies from global players is very helpful for Asian emerging market, particularly in China.

2nd Unconventional Gas Asia Summit 2011, which will be held on Dec 6th-9th, 2011, Beijing, China, is the international event focusing on Asia market including the policy changing, technical innovation and the project updating.

Hear the latest views and forecasts from key industry speakers from along the entire value chain, Speaker under prior consideration:

? Xinmin Jiang, Deputy Researcher, Energy Research Institute National Development and Reform Commission
? Ing Evita Legowo, Director General of Oil & Gas, Ministry of Energy and Mineral Resources, the Republic of Indonesia
? Fengyin Xu, Vice General Manager, PetroChina Coalbed Methane Company Limited
? Baoyu Wang, Vice General Manager, JinCheng Anthracite Mining Group
? Weifeng Wu, General Manager, China United Coalbed Methane Corporation
? Xiaokang Fu, Director, International Cooperation, China United Coalbed Methane
? Prashant Modi, President & COO, Great Eastern Energy
? Rabdeep S Grewal Chairman & CEO, GREKA
? Michael R. McElwrath, CEO and President, Far East Energy
? Peter Cockcroft, Chairman, Blue Energy
? PK. Bhowmick, Executive Director-Head of Institute, KDMIPE, Oil and Natural Gas Corp
? Marek Karabula, Deputy Chief Executive, Upstream Operations, PGNiG
? Atilla Aydemir, Coordinator for Unconventional Resources Project, Turkish Petroleum Corporation

Highlights in 2nd Unconventional Gas Asia Summit 2011
? Projects Updating
? China Policy Updating
? China Current Projects
? Qinshui Basin-Main CBM Development in China
? Ordos Basin-Abundant Reserves for Shale Gas
? Sichuan Basin-Shale Gas Favorable Region
? New Shale Gas for Bidding
? Major Basin Projects Updating
? Raniganj Block
? Thrace Basin
? Technical Innovation & Utilization

On behalf of the organizing committee, we would like to invite you and other senior executives to attend the 2nd Unconventional Gas Asia Summit. With your attendance in UGAS we believe it will bring up the profile of your firm in the unconventional gas industry and probably bring more potential business to your company.

Organizing Committee of 2nd Unconventional Gas Asia Summit 2011
Tel: +86 21 5830 0710
Fax: +86 21 5831 1668
E-mail: info@szwgroup.com
Website: http://www.szwgroup.com/2011/unconventional/

Announcement from the Africa Energy Indaba

The annual Africa Energy Indaba is pleased to announce that CNN International has once again signed on as its official International Broadcast Media Partner for 2012. The partnership, which was first forged in 2011, will once again place Africa’s energy agenda on the global stage.

The association will see CNN International taking a significant presence at the Indaba, and a major awareness-building advertising campaign for the event on CNN across TV and online.

“We are pleased to have formalised this relationship, which will raise awareness of the Africa Energy Indaba in new markets across the globe. Our commercial campaign on CNN provides us with an effective and valuable way to reach fresh audiences, with the ultimate aim of working towards finding solutions to Africa’s energy challenges as well as providing a platform to conduct business in the energy sector.” says Liz Hart, Managing Director of the Africa Energy Indaba.

The Indaba aims to extend its reach through the partnership, highlighting the event as the leading forum for debate on Africa’s energy challenges and solutions. With the central theme of the event, “Unleashing Africa’s Energy Potential” in mind, the event programme aims to formulate actionable ideas and proposals that will benefit the continent’s billion people.

Rani R Raad, SVP & MD, Ad Sales and Business Development, CNN International, said: “How Africa and the world solve the energy challenges we face will impact on us all, and debate is a hugely important part of that process. For that reason we’re delighted to continue our support of the Africa Energy Indaba.”

ENDS
25 August 2011

Issued by: Siyenza Management
Mabel Modipa
011 463 9184
mabel@siyenza.za.com

On behalf of: Africa Energy Indaba
Liz Hart
011 463 9184
liz@siyenza.za.com

About the Africa Energy Indaba:

Africa Energy Indaba 2012 will be held from the 21 to 23 February 2012, at the Sandton Convention Centre, Johannesburg, South Africa. The conference continues to grow and has become the foremost forum for debating Africa’s energy solutions and focuses on: African power suppliers; alternative and renewable energies; oil and gas; the legal and regulatory framework, and investment opportunities in African energy projects. The exhibition has become a significant market-place for African and international stakeholders doing business in Africa’s energy sector.

CNN International:

CNN International advertising sales deliver innovative and creative media solutions that go beyond the norms of standard advertising to deliver results. The team strives to build long-term strategic partnerships with all clients, addressing individual commercial needs and offering turn-key solutions to support client marketing strategies through extensive resources including the Tourism Advertising Solutions & Knowledge Group (TASK), CNN Ad Sales’ in-house creative unit Turner Commercial Productions (TCP) our dedicated PR and Marketing team.
For more information on advertising on CNN International, please e-mail Sales Director Reme Al-Saiegh at reme.al-saiegh@turner.com.

Kind Regards