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The Thaba Chweu Municipality notified all its customers about a decision that was taken by Eskom with regards to the Thaba Chweu Municipality Notified Maximum Demand.
What is NMD?
Definition: Notified Maximum Demand (NMD): means the contracted maximum demand, notified in writing by the customer (Thaba Chweu Municipality) and accepted by Eskom.
*“The NMD will be the maximum capacity in kVA, as measured over a 30-minute integrating period, per point of delivery/premise (POD) that the customer will contract for Eskom to make available during all periods. This is the maximum capacity that will then be made available for the customer’s use under system normal conditions. The capacity so notified excludes any additional capacity that the customer may be permitted to use.”
The Thaba Chweu Municipality hereby informs all its customers feeding on the points that the municipality has been exceeding its contracted notified maximum demand in the following areas: Sterkspruit Estates point, Industrial substation, Mashishing substation and Sabie substation respectively which contravenes the electricity supply agreement between the municipality and Eskom Holding SOC.
*Changes following an exceedance of NMD
“If the metered maximum demand in a billing period exceeds the NMD for that customer in respect of the relevant point of delivery/premise, or where the simultaneous maximum demand of PODs that receive the benefit of diversity exceeds the sum of the NMDs, the following will apply: Notification of demand rules (Revision 02), Electricity Pricing Department, Eskom Rev 2, 18 February 2009:
3.4.1. Any exceedance of the NMD shall constitute a breach of Eskom’s electricity supply contract and Eskom shall, at its election, be entitled to cancel the supply contract (subject to the customer’s right to negotiate the conclusion of a new contract with Eskom in which new contract the customer’s NMD shall be restated, alternatively, to apply the remedies available to Eskom under any conservation and/or rationing programme or scheme which may be introduced, adopted or implemented by the National Energy Regulator, the Department of Minerals and Energy or any other regulatory body from time to time (unless Eskom is obliged under either of such programmes to implement a specified remedy in response to the aforesaid breach).
3.4.5. Under times of overall system (generation and/or network) constraints, Eskom may request the customer in breach of contract to remain within the contractual NMD. If the customer fails to heed the request, Eskom reserves the right to take appropriate action to ensure system integrity and to supply customers adequately who is not in breach of their contracts.”
As a result, Eskom informed the municipality that it is limiting the Thaba Chweu Municipality’s NMDs on all affected points of supply to be as per the electricity supply agreement between the municipality and Eskom. This decision has been implemented unfortunately amid Eskom already implementing National Load Shedding.”
This decision means that the Thaba Chweu Local Municipality will be implementing rotational load shedding following Eskom’s load shedding in the affected points were necessary as it is dependent on load demand.
According to Themba Sibiya, Communication Manager for TCLM, if the substation is overloading, they are forced to start load shedding. “As soon as the substation overloads, the power will trip. We must then contact Eskom to reconnect the electricity and that will also increase the duration of the load shedding. There are no schedules for this load shedding as we need to constantly monitor the consumption so that the NMD should not be exceeded unless agreed to by Eskom. A notification will be sent to the public to warn them of the impending load shedding,” Themba Sibiya said.
“The Thaba Chweu Local Municipality has duly applied to Eskom to upgrade and consolidate the NMDs for the affected points. All customers are humbly requested to use electricity sparingly during this difficult period as the municipality cannot cope with the high demand of electricity at this stage. During this process all customers are to treat electricity points as live at all times,” he concluded.
* Notification of demand rules (Revision 02), Electricity Pricing Department, Eskom