Lesego Lebuso: Divisional Manager - New Services Development (NSDD) JW & PROJECT OVERVIEW Nico...
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Transcript of Lesego Lebuso: Divisional Manager - New Services Development (NSDD) JW & PROJECT OVERVIEW Nico...
Lesego Lebuso: Divisional Manager - New Services Development (NSDD)
JW & PROJECT OVERVIEW
Nico Singh: Prepayment Manager - NSDD
TOTAL PREPAYMENT METERING
Operation Gcin’amanzi (OGA) – Overview of the Technical, Social & Sustainability aspects of OGA
BECAUSE EVERY DROP MATTERS
VISION AND MISSION OF JW
Vision: To become the leading water utility in South Africa.
Mission: To provide all the residents of Joburg with access to
quality water and sanitation, JW will: Deliver a sustainable, affordable and cost effective
service, Upgrade services in Low Income Areas Create a Customer-focused culture, Build capacity through the development of our
employees, Improve protection of the environment.
CUSTOMERS PROFILE
Socio -
Economic Profile
Population Service Payment
High/medium
Income±1 Million
Full service / metered
OK
Low income ±1 MillionFull service / not metered
LOW
Informal settlements
±1 MillionBasic or below
basicFree services
JW CHALLENGES
Provide affordable, cost effective and sustainable services to low income, new areas and informal settlements.
Decrease high UFW (>70%) in low income areas resulting from deemed consumption billing system and poor infrastructure (Operation Gcin’amanzi).
PROBLEM STATEMENT
Problems are complex and multi-dimensional
These dimensions are interrelated and interdependent
Only a holistic, integrated approach that simultaneously and proactively addresses all dimensions to the problem will result in success and long term sustainability of the services of water and sewerage in Soweto
BACKGROUND Bulk purchases indicate an average formal erven in Soweto
supplied is 61Kl per month
Survey results point to defective plumbing, leaking secondary mains and ill use by residents
Current billing of 20Kl levied as deemed consumption
Average consumption for non-purchasing ervens ± 4 Kl
Average consumption for purchasing ervens ± 11.5 Kl
Fixing the problems will benefit customers and service provider
BROAD STRATEGY AND APPROACH
Soweto the area of highest priority as result of greatest water supply and UFW problem
Once-off intervention project involving a variety of intervention measures
Implementation period planned for 4 years
Phased project with a Prototype Phase mainly to test methodology defined in planning phase
Selected prototype area where greatest impact can be achieved
As critical component of this project, a free-payment metering programme is included
PAST EXPERIENCE In Mogale City > 20 000 meters operated
successfully despite older generation meters installed
Pilot project – Stretford Ext 4, Orange Farm Experience: JW has successfully commissioned 1389 meters
over a period of 22 months Few technical teething problems – mainly valves 70-80% of residents consume less that 6Kl Community buy-in and ownership in place after
full consultative process
TOTAL TECHNICAL & SOCIAL INTERVENTION
Preliminary stage1. Identify prototype area2. Accurately establish ‘before’ information3. Identify and consult with decision makers and political
structures4. Establish a representative steering committee
Community liaison5. Undergo a consultation process with the community leaders
and community 6. Conduct a Marketing and Communications Campaign7. Undergo an Educational Programme and Awareness
Campaign8. Institute the signing of consumer water and sewer
agreements9. Consolidate all customer records
TOTAL TECHNICAL & SOCIAL INTERVENTION
10. Perform a House-to-house survey of existing plumbing 11. Train semi-skilled PDI’s, Plumbers and Contractors12. Do leak detection of all existing mains not being upgraded13. Replace secondary water mains (where necessary)
including Zone Meters14. Replace House Connections15. Rehabilitate private plumbing fixtures 16. Provide metering infrastructure and metering devices17. Monitor, evaluate and ensure sustainability (AFTERCARE)18. Monitor and evaluate attainment of objectives - KPIs19. Implement sustainability initiatives20. Reallocate Operations and Maintenance staff
TOTAL TECHNICAL & SOCIAL INTERVENTION
toilettoilet
toilettoilet
toilet toilet
toilet toilet
House
House
House
House
House
HouseHouse
House
Tap
Tap
Tap
Tap
Tap
TapTap
TapSteel midblock
mains
Road
Road
EXISTING WATER CONNECTIONS
toilettoilet
toilettoilet
toilet toilet
toilet toilet
House
House
House
House
House
HouseHouse
House
Tap
Tap
Tap
Tap
Tap
TapTap
TapSteel midblock
mains
Road
Road
New water mains
New water mains
..
..
..
. .... .
....
NEW WATER CONNECTIONS
SCOPE OF WORK
June 2004 – 800 stands June 2005 – 26 664 stands June 2006 – 75 197 stands June 2007 – 58 891 stands Forecast saving of 32 – 35 kl/ stand/ month Total expected saving of R158m p/annum
after project completion
INTERVENTION PROGRAMME
Social interventions Educate community on the scarcity of water Create awareness on water conservation Educate community on water cycle Obtain buy-in from customers of their water
consumption Tariffs and FBW education Educate customers on their rights and
obligations
PUBLIC PARTICIPATION Ward Committee briefings and workshops
Public Meetings
Targeted sectoral information sessions held with sectoral stakeholders
Consumer education workshops and study tours
Door-to-door campaign
Consumer information packs Establish and Capacitate Water Committee
ISD PROGRAMME
Challenging component of project as it deals with the human aspect to facilitate behavioural change which has no specific time frame:
Full co-operation from ward councilors, ward committees and other recognized community based structures
Regular public meetings to enhance community buy-in as public participation is an ongoing process
Customer satisfaction surveys
Minority opposition experienced - despite this there is community buy in and support is currently at 90%.
BENEFITS OF THE PROJECT FOR THE COMMUNITY
1. Once-off repair of household plumbing fixtures, free of charge
2. Ownership of consumption
3. More affordable services and lowering of billed amounts
4. Better, more consistent service delivery (Building Customer Relations)
5. Eradicating Arrears - Debt Write-Off & Indigent Policy
6. Reduction in credit control action
7. Creation of employment opportunities
8. Creation of vending opportunities through SMMEs
9. Creation of regional economic efficiencies
FREE-PAYMENT TECHNOLOGY &
TOTAL METERING SYSTEM
FREE-PAYMENT METERING
Metering required in terms of Water Services Act (1997)
Convenient and accurate way to dispense FBW (Monthly or Daily option)
Empowers the customer to collectively BUDGET FBW and purchased water credits - Manage own consumption in real time
No need for a deposit for water connection
Offers a real practical way of accommodating the indigent
Eliminates many of the problems / disputes associated with conventional metering -meter reading, billing and revenue collection
THE CHALLENGES
Total of 162 000 properties to be equipped with free-payment
Ideological debate around the concept of prepayment and acceptance of user-pay principle.
Project scheduling allowing for multiple contracting and procurement for Super-Blocks( ± 90 000 meters)
Free-Payment technology STS2 enhancement or an urgent alternative. SANS 1529-9 (Nov 2003) - Strict Compliance Meter Technology for JW Customer
Affordability for the consumer Vandalism, Tampering and Illegal Connections
THE TOTAL FREE-PAYMENT PROCESS
Distributor Cash DepositBulk Credits
Customer pays Cash
Credits Downloaded
Into Meter
Credits Used Up
Complaints
DataData
Customer
Token
JW Call Centre
1
2
78
6
4
3
5
JW Satellite Office
Afte
rcare
Su
pp
ort (T
ech
nic
al a
nd
Cu
sto
mer
care
)
1
OPERATIONS MANAGER: PREPAYMENT
PREPAYMENT: ADMINISTRATIVE SUPERVISOR
PROJECT INSPECTOR: PREPAYMENT
PREPAYMENT BUSINESS UNIT PREPAYMENT MANAGER
PREPAYMENT METER INSPECTORSX5
GENERAL ADMINISTRATIVE ASSISTANT
GENERAL WORKER
SUPERBLOCK 1 SUPERBLOCK 2 SUPERBLOCK 3
Customer Agent
X3
Data Capturer
X2
Customer Agent
Assistants: SUPPORT
X 6
Customer Agent
X3
Data Capturer
X2
Customer Agent
Assistants: SUPPORT
X 6
Customer Agent
X3
Data Capturer
X2
Customer Agent
Assistants: SUPPORT
X 6
Admin Ass:Data
X1
Admin Ass:Payments
X 1
Customer Agent
Assistants: Installation
X40
Admin Ass:Data
X1
Customer Agent
Assistants: Installation
X40
Customer Agent
Assistants: Installation
X40
Admin Ass:Data
X1
Admin Ass:Payments
X 1
Admin Ass:Payments
X 1
PREPAYMENT: AFTERCARE (SB 1, 2 & 3) + 4, 5, 6 & 7a
Customer Agent Assistants: AFTERCAREX 20
Customer Agent Assistants: AFTERCAREX 20
Customer Agent Assistants: AFTERCAREX 20
Admin Ass:Stores
X 1
Admin Ass:Stores
X 1
Admin Ass:Stores
X 1
Customer Agent
Assistants: People center
X4
Customer Agent
Assistants: People center
X4
Customer Agent
Assistants: People center
X4
PREPAYMENT: STORE MAN PREPAYMENT I.T. ADMINISTRATOR
SUPER BLOCKS 4, 5, 6 AND 7A
E-TECHNOLOGY ENVIRONMENT
In-house KPI Program that deals with: O & M data – Maintenance KPI’s System Characteristics – Efficiency & Effectiveness Survey and O & M – assess the installation and
implementation issues. Common Distribution/Database Structure (CDS) PREPAYMENT MMS / HANSEN INTERFACE
E.g. No water - response time is within 24hrs from official log of Call)
ISD - PREPAYMENT DATABASE
BASIC FREE-PAYMENT EQUIPMENT
Free-Payment Meter Information Transfer Unit
Portable Vending Unit Meter Management System
VENDING OPERATOR SPECIFICATION
Limited to existing small and micro businesses Currently using the COJ Cash Office – familiarity Individual vendor locations will be restricted to the
service-provided area of JW and within an approximate 2 kilometre radius around his/her business location to ensure: - Consumer convenience, and- Reasonable income per vendor.
Commission percentage payable is 10% reviewed on an annual basis.
Current Vending Systems are proprietary Currently initiated the development of a CDS
Not Recommended- Ground Level
Preferred - Above Ground level
X
TYPICAL INSTALLATION TYPES USED
SPLIT SYSTEM with SMART CARD
TYPICAL INSTALLATION TYPES USED
PERIPHERAL ENHANCEMENTS
JW DESIRED METER FEATURES
Current meter features/enhancements developed by JW in conjunction with Meter Suppliers:
Individualized ITU Displays “FREE” when in FBW VOLUME (Liters) of FBW remaining FBW supply options ~ 200l/day or 6kl/month TRANSFERRED CREDIT from token ACCUMULATED CREDIT on meter The VOLUME (Liters) based on the ACCUMULATED
CREDIT and CURRENT TARIFF LOW CREDIT Warning CURRENT TARIFF Price (R/Kl)
METER FEATURES cont…
The CURRENT VOLUME reading The PREVIOUS MONTH end reading
(Proprietary) Battery warning (Flat/Low/) ~ 5-6 years
battery life POSSIBLE LEAK detection TAMPER status Option to LOCK meter (Proprietary)
TARIFFS - AFFORDABILITY
Subsidized tariff structure – Combine Water and Sanitation
Affordable sliding scale tariff structure replacing flat rate -Increases as your water usage increases
The FBW applies to both water and sanitation services
Three categories of customers with three different cost structures (Residential, Commercial and Institutional)
Debt Write-Off and Indigent policy
Only an Annual Increase
CUSTOMER COMMENTS
“The consultation process being done is intense. We are always having meetings in our areas” Clr. Vuyisile, Ward 29, Soweto.
“When are you (Johannesburg Water) going to start this project in informal settlements, as they are the people who need it most.” Mboneni, Soweto.
“We are eight at home and my granny is only paying about R 30.00 for water every month compared to the R 128.44 she used to pay before this project started.” Sibongile, Phiri, Soweto.
“My dad is staying in Phiri. I used to give him R 300.00 – R 400.00 for paying the flat rate and now he is using about R 90.00” Madoda, Vosloorus.
“We love prepaid meters as we are saving a lot. This project creates work as well.” General Ndala, Soweto.
CUSTOMER COMMENTS…
“Ever since JW started putting prepaid meters in Phiri, I have been hearing complaints from a small number of community members. I do not understand why they are complaining. I have not experienced any problems since they gave me my meter in February 2004. I receive 6kl monthly and they changed my old toilet bowl for a new one. They also gave me a 20L bucket to help my family measure the water we use daily. I have not paid for water in four months. I think the people complaining do not want to become responsible citizens of this country. We must all start saving water”. Sakhile Phambo
“I think pre-paid is fine but it depend on you, how do you save water and people must start to use water wisely.” M. Maphathe, 121B, Phiri. (5 people)
“The problem is that every after three weeks we buy water and I think that is not fair.” L. Ndlodu, 70B, Phiri. (7 people with 1 backyard rooms)
• Post UFW for APRIL 2004 (Phiri - Block B) is 6.7%
(No) (Kl) (Kl) (Rand) (Rand) (R/month) (R/month)
I x R2.65 actual sales
C D I J N O P
1,771 55.0 614,591 R 1,631,984.04 R 299,673.80 R 21.70 R 33.61
3,108 67.0 230,368 R 611,719.19 R 167,629.30 R 24.71 R 41.97
3,377 70.0 244,960 R 650,466.78 R 162,094.92 R 23.27 R 49.82
4,295 63.0 298,304 R 792,116.44 R 190,440.63 R 22.44 R 40.99
64.7 R 23.12 R 42.57
12,551 1,388,223 R 3,686,286.45 R 819,838.65 (4.6 Kl) (7.9 Kl)
Average value of purchases made
Weighted averages
Cumulative totals to date
PHIRI & SUPERBLO CKS CO MBINED
Phiri Prototype Project
Superblock No 1
Total value of sales devided
by the total no of stands
Total value of sales devided by the no of stands purchasing
top-ups
Superblock No 2
Superblock No 3
O peration Gcin'amanzi Project
Area
Amount of water sold to date
Pre interven-
tion Volume
per stand
Monthly reduction in water
losses
Saving in water purchases from Rand Water to
date
Accumu-lative no of
stands fitted with meters
as at 16 Mar'05
THANK YOU