Mandla XuluRand WaterSouth Africa - PDF document

1 Mandla XuluRand WaterSouth Africa MANAGE
Mandla XuluRand WaterSouth Africa MANAGE CUSTOMER DEMAND AgendaIntroductionManage Customer DemandCustomer Relationship ManagementWater Loss Reduction InitiativesTariff ManagementMeter ManagementCustomer PerceptionsEducation & Public Awareness Conclusion IntroductionRand Water was established in 1903Bulk supplier of +

2 /-4 000Ml/dSupplies water to 12 million
/-4 000Ml/dSupplies water to 12 million people, 12 Municipalities and 3 Metropolitan Municipalities3 400km of pipeline –mostly 300mm to 3 700mm diameterRand Water area of supply covers about 18 000km Rand Water Area of Supply Northern Cape Northern Cape Western Cape Western Cape Eastern Cape Eastern Cape North West

3 North West Limpopo Limpopo KwaZulu Natal
North West Limpopo Limpopo KwaZulu Natal KwaZulu Natal Free State Free State Mpumalanga Mpumalanga Gauteng Gauteng Rand Water Area of Supply BETHEL BETHEL CARLETONVILLE CARLETONVILLE JOHANNESBURG JOHANNESBURG VEREENIGING VEREENIGING SASOLBURG SASOLBURG VAAL DAM VAAL DAM VAAL RIVER VAAL RIVER PRETORIA PRETORIA WINTERV

4 ELD WINTERVELD RUSTENBURG RUSTENBURG BRI
ELD WINTERVELD RUSTENBURG RUSTENBURG BRITS BRITS HEILBRON HEILBRON Customer Profile Mines 10% Industries1% Other Local Municipalities 9% Metropolitan Municipalities80% Trans-Caledon Tunnel AuthorityRAW WATERTARIFF Water Boards PAYMENTOF TARIFF Department of Water Affairs & Forestry End User TREATED WATERTARIFF Munici

5 palities TREATED WATERTARIFF Manage Cust
palities TREATED WATERTARIFF Manage Customer DemandManagement of the level or pattern of water use on the distribution networks and household, so as to minimise the supply costs to customers, whilst maintaining or enhancing customer service levels.Supply costs include costs of projects associated with the augmentatio

6 n of, or extension to, distribution netw
n of, or extension to, distribution network as well as water losses;Utilities should commit in developing practical and sustainable strategies to lower charges to customers and defer the costly requirements of distribution network upgrade / expansions IVRS YIELD & DEMANDS 2006 Status & 20-year ForecastWith Upper Vaal

7 Irrigation reduced; Without WDM; No new
Irrigation reduced; Without WDM; No new augmentation CURRENT IVRS YIELD incl RETURN FLOW (RW): -3,000-2,000-1,0001,0002,0003,0004,0005,0006,0007,0008,0009,00010,00011,00012,00019982000200220042006200820102012201420162018202020222024202620282030 YIELD / DEMAND (Ml/day) -3,000-2,000-1,0001,0002,0003,0004,0005,0006,00

8 07,0008,0009,00010,00011,00012,000 CURRE
07,0008,0009,00010,00011,00012,000 CURRENT IVRS YIELD inclRETURN FLOW (RW): ESKOM (8) Vaalharts/Lower Vaal irrigation(2) Other irrigation in Vaal (3) GROSS IVRS RAW WATERDEMAND (AOA): TOTAL RETURN FLOWS (AOARW): Rand Water (1) Rand Water 2007 Forecast JCritchley(14) IVRS GROSS RAW WATERDEMAND (RW): NET IVRS SURP/(

9 DEF) with RWRW: Projected Manage Custome
DEF) with RWRW: Projected Manage Customer Demand contdTo achieve strategic objectives, demand management approach must be driven by these five actions:•Engage with customers to inform them regarding the benefits of demand management;•Develop in-house demand management expertise;•Collect comprehensive customer demand

10 information;•Set up demand management un
information;•Set up demand management unit (staff, process, systems);•Identify, evaluate and develop sustainable structures; Manage Customer Demand contdThese are some of the interventions that may be implemented to properly manage customer demand:•Customer Relationship Management;•Water Loss Reduction Initiatives;•T

11 ariff Management;•Meter Management•Custo
ariff Management;•Meter Management•Customer Perception•Education & Public Awareness; Customer Relationship ManagementThe idea of CRM is still alien in most developing countries and yet it should be relevant, because there are numerous Operators offering competition to the Utilities;There is a need to institutionalise

12 customer care through service oriented
customer care through service oriented leadership;CRM must be integrated into the Utilities business strategy;A customer focused philosophy must also be encapsulated in the corporate mission;A successful CRM strategy requires a holistic approach, which means a complete integration of the staff & customers into the s

13 ystem; Water Loss Reduction Initiatives
ystem; Water Loss Reduction Initiatives Water loss reduction initiatives must be inclusive:Meter Management;Pressure Management;Leakage Management;Household Leak Fixing (Retrofitting) Property Connection Customer Meter ManagementMeter Pressure ManagementPressure management is the practice of managing system pressure

14 s to the optimum levels of service whils
s to the optimum levels of service whilst ensuring sufficient & efficient supply to legitimate useThe pressure-leakage relationship means that, as a rule of thumb, the ratio of pressure reduction approximately equals the ratio of leak flow reduction in large networksPressure management can be an immediate and cost ef

15 fective solution for decreasing real wat
fective solution for decreasing real water losses in a distribution network, even at low initial pressures Benefits of Pressure Management
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17 us of Urban Engineering, Dresden Univers
us of Urban Engineering, Dresden University of Technology Leakage ManagementAccording to the WHO Leakage Management Manual (2001) four key factors influence the degree of leakage within the a pipe network:Availability of water, personnel and financial resourcesInfrastructure conditions regarding materials, system pre

18 ssure & renewal policy;Leakage policy: a
ssure & renewal policy;Leakage policy: activity, perception, technical expertise;Institutional attitude with respect to structure, regulation, politics; Household Leak FixingLeaks from pipes at the household level, plumbing fixtures and fitting are a significant source of water waste for utilities and the residential

19 customer;Research has shown that the ty
customer;Research has shown that the typical home loses 7.6 to 76 k(2000 to 20000 gallons) per annum due to leaks;Unfortunately many leaks go undetected for years because the source of the leak is not visible; Place household displacement device inside the toilet cisternThese devices can reduce the amount of water a

20 toilet uses by about 15.8(4.4 gallons)
toilet uses by about 15.8(4.4 gallons) per toilet per day according to the Sustainability of Semi-arid Hydrology and Riparian Areas Research InstituteHowever there are cautions for using displacement devices –are recommended as a long term solutionHousehold Leak Fixing contd Tariff Management • Market based approa

21 ches include charging water prices accor
ches include charging water prices according to the dam levels; • Using price to manage water demand is more effective than rationing / restrictions; • Price mechanisms allow households, industrial facilities and other consumers to adjust their water use based on their different costs and benefits; • On average, a 10

22 % increase in the price of water reduces
% increase in the price of water reduces demand by between 3% and 4%, according to a US study; Tariff Management contd • Despite the benefits of market driven water conservation efforts, raising water prices can be politically difficult; • The price elasticity of water demand is a key variable of interest in this c

23 ontext: i. regulators may use price to r
ontext: i. regulators may use price to reduce demand during periods of scarcity; and ii. utilities often face zero profit constraints, so impact of price changes on total revenue is a concern Customer PerceptionNo public participation in the decision making process;No transparency of tariff setting;No dissemination o

24 f information to consumers;Tariffs are t
f information to consumers;Tariffs are too high;Operators’inefficiencies are passed onto customers;Paying customers feel that they subsidize defaulting customers;Tariff structures and bills difficult to understand; Education & Public AwarenessNormally awareness programs address three components which include, knowled

25 ge, perceptions and practice;Water insti
ge, perceptions and practice;Water institutions should be structured to allow for the reliable flow of information to the public timeously;They should also ensure access and accountability ConclusionMapping out of key principles, legislative, economic and social frameworks would guide a customer demand management str

26 ategy,A consultation process can only be
ategy,A consultation process can only be as successful as the level of stakeholder participation;Gaining customers support and involvement is vital to the successful implementation of demand management;Communication strategy must be implemented to ensure that the customers understand exactly what demand management is