Background

Elexpert was founded in 1998 as an Energy Consulting company that specialises in providing products and services for public and private customers with its main products being:

  • Detailed cost and revenue analysis.
  • Pricing / strategy development.
  • Customer elasticity and consumption analysis.
  • DSM / Energy efficiency audits and strategy development.
  • Operational audits policy / procedure development.

Mission Statement

  • To provide expert consulting and other products and services on the subjects of costing, pricing and related policies and practices for electricity, energy and other dynamic products.
  • To facilitate the design, installation and operation of energy efficiency systems and other installations to maximise the value of energy input costs to the customer.
  • To contribute to a cleaner environment where energy infrastructure utilisation in the Southern African Region is maximised thereby increasing the region’s relative international competitiveness.

Products and Services

  • Ringfencing electricity business units: From local government or between G,T&D
  • Dynamic cost of supply analysis by usage profile, voltage, customer category etc.
  • Pricing Policy development: principles, objectives, subsidisation, viability.
  • Pricing strategy development: Cost reflective, price incentive, special deals.
  • Tariff analysis and approval: Total revenue requirement, impact studies, etc.
  • Subsidy analysis and policy formulation: electrification, rural, geographic.
  • Utility management, benchmarking, business process development, etc.
  • Energy industry pricing and quality regulation and management.
  • Product packaging and support: Implementation guidelines, training, pamphlets.
  • Energy management system design and installation.
  • Utility sales strategy: strategic growth, conservation, load shape changes.
  • Electrical Engineering consulting: system requirements, installation options, etc.

Skills

Hendrik Barnard B-Eng(Elec), MBA (cum laudé) (Managing Director)

  • Hendrik Barnard worked in Eskom’s pricing department from 1990 and was appointed Pricing Manager in 1995, a position he filled until leaving Eskom in 1998.
  • During this period his work involved developing Eskom’s pricing strategies and policies. This included analysing the level of cross-subsidies within the utility and developing strategies to deal with these.
  • Hendrik has been in consulting in the industry since 1998 during which time many projects have been completed satisfactory.
  • He has also contributed to investigations into suitable pricing strategies for South Africa’s electricity distribution industry (while on secondment to NELF tariff working group) and has developed a cost-of-supply pricing methodology for application in SA.

Some full time staff are currently used for administrative and software support but a range of other contractors are being used to assist with the completion of particular projects as and when required.

Strategic Partners

In current times where technology develops so fast and there are so many options available it is very difficult for a small company to remain small and yet competitive.  For this reason is necessary to have strategic partners.  The following key categories of partners have been identified:

  • In marketing – to bring business to the company.
  • In technology development and supply.
  • In engineering systems and skills.
  • In equipment installation and maintenance.

The following partners have been identified and co-operation agreed to:

  • PB Power.
  • New Energy Consult.
  • Energy System Planning (Pty) Ltd
  • Iskhus Power (Pty) Ltd – marketing, training, operational support
  • MVD Mechanic / Electrical – Southern Cape region.
  • Power Measurement and Distribution (PM&D) for automatic metering systems.
  • Ntanzani Networks (Pty)Ltd – on alternative energy strategies.
  • Thalamus Software Solutions – Software development.

Key Projects Completed

Elexpert has provided services to more than 50 Municipalities in South Africa, more than 10 National Utilities / NGO’s in Southern Africa and various private electricity customers / customer representative bodies.  Elexpert has jointly started the Stellenbosch Electricity Pricing Course and presented modules on the course for 10 years.  Elexpert is recognised as one of the leading Electricity pricing / Strategy consulting Companies in Southern Africa.  Hendrik Barnard is represented as a member of the Tariff Committee of The Associated of Municipal Electricity Undertakings (AMEU) in South Africa.  The majority of projects are follow-up work from the same clients.

Conclusion

It can be concluded that Elexpert (Pty) Ltd with its small group of key associate organisations and contacts have delivered  superior electricity pricing services in Southern Africa.  It is the only company in the region that has to a significant extent

  • Truly ringfenced the electricity operations from that of Local Government operations in an area,
  • Separated the business between generation, transmission, control, distribution and customer services so as to facilitate the introduction of customer choice,
  • Undertook cost of supply studies on a geographically differentiated basis identifying energy, network capacity and customer services costs,
  • Developed tariffs offering truly cost reflective with the maximum practical incentive for regional and local demand side management,
  • In line with the opportunities now being offered by modern metering and billing technology now becoming affordable.

The excellent understanding of Eskom, municipal utility, African utility, Southern Africa Power pool dynamics, legislation, regulatory forces and cross subsidy impacts make Elexpert an essential partner in any electricity supply study undertaken in the Southern African region.