KORBITRON AMI (PTY) LTD

BUSINESS PROFILE




Korbitron AMI Business Profile

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Contents
CONTENTS ......................................................................................................................................................................... 2
BACKGROUND ................................................................................................................................................................... 3
Current Electricity Distribution in South Africa ............................................................................................................................... 3
Addressing Municipal Electricity Distribution Challenges ............................................................................................................... 4
KORBITRON AMI ................................................................................................................................................................ 5
The Business ................................................................................................................................................................................... 5
The Stakeholders ............................................................................................................................................................................ 5
PRODUCTS AND SERVICES ................................................................................................................................................. 6
AMI Services ................................................................................................................................................................................... 6
Utilities Cost-optimisation Products ............................................................................................................................................... 6
Ideal Customers .............................................................................................................................................................................. 6
OUR VALUE PROPOSITION ................................................................................................................................................. 7
Innovative Advantage and Benefits ................................................................................................................................................ 7
Key System Features ....................................................................................................................................................................... 7
Live AMI Reference Site .................................................................................................................................................................. 7
Korbitron AMI Components Master Meters ................................................................................................................................ 8
Korbitron AMI Components Smart Meters .................................................................................................................................. 8
KEY PERSONNEL................................................................................................................................................................. 9
CONTACT DETAILS ........................................................................................................................................................... 10


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BACKGROUND
Current Electricity Distribution in South Africa
In January 2008 Eskom introduced "load shedding", planned rolling blackouts based on a rotating schedule, in
periods where short supply threatens the integrity of the grid. Demand-side management has focused on
encouraging consumers to conserve power during peak periods in order to reduce the incidence of load
shedding. Electricity distribution in South Africa is currently undertaken by Eskom and 197 municipalities of
the 278 municipalities. The countrys Electricity Distribution Industry (EDI) services about nine-million
customers, employs over 31 000 people and has an asset base worth more than R260 billion. The capacity of
Regional Electricity Distributors (REDs) required by Eskom is lacking, given that Eskom current requirement of
over 12 Terra Watt-hours, to guaranty quality and security of supply. Rolling outages alternating across the
city centres are evidence of the current standards of supply.
Consequently, disparities exist with regard to the operational adequacy of local distribution networks, with
Eskoms distribution regions said to be operating efficiently, while the networks of smaller municipalities are
believed to be in a poor state. Municipalities collectively account for 43% of the total volume of electricity
sales while Eskom supplies the balance.
Few municipalities other than those in the larger urban areas, supply electricity themselves and these
municipalities would usually be responsible for the transformers, the below-ground (and sometimes above-
ground) cables and the metering systems for electricity distribution.
The most common causes of the failure of electricity reticulation systems are faulty operating procedures, lack
of planned maintenance, damage, cable theft, overloading, and equipment ageing. Furthermore, the quality
of service rendered by electricity distributors appears to vary widely. The lack of uniformity in the EDI also
extends to the tariffs municipalities are charging their customers for the provision of electricity. It has been
suggested that there are, currently, as many as, 2 000 different tariff structures in the sector, with users in one
municipality having to pay 22c/kWh for electricity, while customers in another municipality are required to pay
71c/kWh.
A further obstacle to efficient electricity distribution is the financial crisis facing about one-third of the
municipalities, particularly in low-income areas. These municipalities owe Eskom large sums, as a result of
their inability to collect the revenue owed to the local authority by consumers unwilling or unable to pay.
Services are thus undelivered and this is a major long term contributor to service delivery protests. In his
speech to the Convention of the Association of Municipal Electricity Utilities, in October 2013, the (previous)
Minister of Public Enterprises, Mr. Malusi Gigaba MP said: Raising capital to address both capital and
operational expenditure is going to prove more complex and difficult to surmount in the coming period. It is
therefore important that, for example, the issues of the payment for services by customers as well as the
municipal electricity debts must be addressed in order, as capital investments continue, we do not compromise on
the user-pay principle. In our case in South Africa, both debts such as the one by the Soweto customers, which
constitutes 90% of the debt owed to Eskom by residential customers, as well as the one by municipalities, which
today stands at over R1.5bn for the 10 largest-owing municipalities, must be resolved. The risk is that a wrong
culture of non-payment and defaulting is thus not only encouraged, but sustained, particularly when the 10
largest-owing municipalities have the resources at their disposal to settle their debts. This creates a serious
dilemma for Eskom as they must either make a business decision and switch the lights off for the debtors or a
political decision and keep the lights without an end to the payment boycott in sight!

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Addressing Municipal Electricity Distribution Challenges
Considering all the challenges faced by the industry it is essential that an appropriate holistic asset
management program must be introduced to ensure the effective allocation and utilisation of resources. This
cannot be achieved through the current EDI structure and approach to the business of electricity distribution,
since the existing approach, is not allowing for efficiency improvement and resource optimisation to the
extent which it is required.
Municipalities face a situation of a serious non-payment of utilities and, therefore, provision needs to be made
to prevent this eventuality. Consumers are very aware of the rising costs of utilities and are demanding
smarter solutions from an ageing distribution infrastructure. Every fault in the network requires a call-out by
the distributor; it has been the case for over 3 decades despite extensive progress in ICT. The reality is,
however, that many of the power outages experienced are directly related to distribution related incidents.
Given that Local Government is unlikely to voluntarily relinquish its constitutionally enshrined rights to
electricity distribution because many large municipalities, including Johannesburg, Cape Town, Durban,
Ekurhuleni and others, derived significant revenue from this - revenue are used to cross-subsidise other loss-
making service-delivery activities. In 2010/11 the electricity function generated a R7.7 billion surplus for
municipalities, after accounting for R1.3 billion transferred to capital budgets. It was estimated that in 2012/13
electricity revenues accounted for an average of 40% of municipal revenue in those municipalities licensed for
electricity distribution.
In order for other municipalities to derive revenue from electricity distribution, they need to have clearly
defined short, medium and long term strategies and objectives, which will support revenue collection,
prevention of electricity theft, prevention of cable theft, prevention of electricity fraud, real-time data
collection and reporting, demand response and utility savings management, energy forecasting, network
management, direct load control, consumer load control and usage profiling.
Municipalities face a range of competing pressures on resources for service delivery, which include managing
the tensions between service quality, equity and social upliftment objectives. Access must be extended to
poor households that cannot afford basic services, at the same time that commercial and higher income
consumers are demanding improved services. Municipalities must meet the needs of both constituencies in
the interests of socio-political stability and improved local economic performance. Revenue streams from
established consumers must not be jeopardised, and payment morality must be improved.
With AMI, a proven cost-optimisation technology and pilot can be implemented and achieve a municipalitys
lowest cost per unit for its consumption and distribution patterns, by the continuous appraisal, auditing and
monitoring of a municipality accounts cost per unit through internal and external optimisation principles to
yield savings, accurate budgeting data, minimised system losses, forecasting, set payment algorithms, as well
as, carbon footprint count and management.

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KORBITRON AMI
The Business
Korbitron AMI is an AMI (Advanced Metering Infrastructure) solutions provider in the commercial utilities
industry. We are in the business of providing optimised distribution solutions to municipal distributors for both
electricity and water.
Korbitron AMI provides solutions for AMI which comprises of state-of-the-art electronic/digital hardware and
software, and combines interval data measurement with continuously available remote communications. Our
systems enable measurement of detailed, time-based information and frequent collection and transmittal of
such information to various end-users, including billing departments, consumers, greening department, etc.
The Stakeholders
Madinda Utilities CC
Madinda Utilities CC provides cost optimisation and management solutions for the
commercial utilities industry. It focuses on break-even cost per unit solutions on water,
electricity, refuse, sewerage, telecoms and assessment rates charges, ensuring that all
clients are charged according to the lowest cost per unit for their consumption
patterns and production profiles, on a monthly basis. Madinda Utilities also provide
professional cost-per unit monitoring packages as part of its auditing service. Among its products are both
standalone utility applications and customised components for integration into larger business solutions. All
its applications are based on the new concepts in cost per unit forecasting and customised utilities cost
management.
LeChet Renewables (Pty) Ltd.
LeChet Renewables (Pty) Ltd. offers affordable renewable energy solutions
to provide more than adequate health and well-being of the low income and
bottom of the economic pyramid population, who are mainly in the rural
areas, squatter camps and townships. LeChet Renewables is a subsidiary of
The Burlington Group, an investment company with interests in South Africa, Lesotho and Nigeria.
N Ndlovu and Associates (Pty) Ltd.
N Ndlovu and Associates (Pty) Ltd. (NNA) is a pan-African management consulting
company. Established in 1998 and now operational in six countries, NNA has established
itself as a business that is successful in providing solutions to complex operations, projects
and transactions in the African continent. NNAs expertise are in Business Consulting, Deal
Structuring and Project Management. NNA offers specialised services to the
Telecommunications, Enterprise, Oil & Gas and Government sectors.
PowerCom metering Africa
PowerCom metering Africa (PCMA) is a company focused on providing
smart metering and smart grid solutions to Africa. Its majority
shareholder is PowerCom, who supplies the technology used by PCMA
for smart metering. Powercom is a leading manufacturer that provides
Smart Grid and Smart Metering solutions. PCMA is a fully BEE compliant metering company, the main focus
of PCMA is to provide smart metering solutions and services whilst trying to improve service delivery and
uplift impoverished communities. Over the last few years, Powercom has been successful in implementing an
advanced, reliable and secure PLC protocol. The breakthrough was achieved by developing a dynamic PLC
technology, which allows for bidirectional data flow over the low voltage grid lines.

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PRODUCTS AND SERVICES
Korbitron AMI offers the following products and services:
AMI Services
The Korbitron AMI system is the quintessential full measurement and collection system that includes smart
meters at the customer site, communication networks between the consumer and their distributor, (such as
an electricity, or water utility/distributor), and data reception and management systems that make the
information available to both parties (consumers and suppliers).
The Korbitron AMI system is a proven cost-optimisation technology and pilot can be implemented and
achieve a municipalitys lowest cost per unit for its consumption and distribution patterns, by the continuous
appraisal, auditing and monitoring of a municipality accounts cost per unit through internal and external
optimisation principles to yield savings, accurate budgeting data, minimised system losses, forecasting, set
payment algorithms, as well as, carbon footprint count and management.
Utilities Cost-optimisation Products
Electricity accounts auditing and cost-optimisation
Water accounts auditing and cost-optimisation
Sewer accounts - auditing and cost-optimisation
Refuse accounts - auditing and cost-optimisation
Assessment rates accounts - auditing and cost-optimisation.
Ideal Customers
Korbitron AMI serves the following customers:
municipalities who have electricity and water distribution licenses;
property and facilities management companies who wish reduce their overall operating costs through
cost optimisation of their utilities, (such electricity, water, refuse, sewerage and land tax assessment
rate), and achieve the lowest cost per unit for their consumption patterns and production profiles;
municipalities struggling with:
o their Eskom accounts;
o revenue collection challenges;
o electricity theft through bridging;
o cable theft challenges;
o fraud prevention management challenges;
o quality of supply data collection and reporting challenges;
o utility savings management challenges;
municipalities who not large enough for a license who require billing and technical integrity in their
distribution reticulation;
municipalities who would like to apply for a distribution license on the basis of an AMI acquisition;
municipalities who require a STS prepaid vending solution; and
municipalities looking to quantify service delivery improvement metrics in their jurisdictions by
upgrading from AMR to AMI by means of an initial pilot followed by a full rollout.

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OUR VALUE PROPOSITION
Innovative Advantage and Benefits
The innovative advantage and benefits of the Korbitron AMI system include:
sound and effective revenue collection efforts in the delivery of services, i.e. water and electricity to
communities;
outage elimination;
real-time leak detection;
cable theft circumvention;
electricity theft and fraud elimination;
reticulation security for all nine different tampering options;
tamper and bridging elimination;
complete profitability in the distribution services for both prepaid and postpaid billing options;
carbon counting and management for both consumers and the distributor;
water and electricity savings management programs; and
fully remote controllable operation of all devices in the AMI.
Key System Features
The Korbitron AMI system features include:
a proven technology with a live reference in Roossenekal, in the Elias Motsoaledi Local Municipality of
the Limpopo province;
lower implementation costs for the distribution business model;
the reticulation system (distribution network, prepayment vending and telecommunication systems)
has a longer life cycle; and
the entire system is interoperable / open platform standards.
The Korbitron AMI system offers the following core functionalities:
Automatic Data Collection - storing, validating and archiving all meter data: the system is scalable to
handle mass volumes of subscribers.
Automation of Tasks - creating automatic task lists, and automatic alert notifications; a basic and
effective billing module is included.
Remote Meter Management: the system allows the operator to manage any parameter within the
smart end points, including application of complex tariff structure, setting maximum demand, etc.
Smart Grid Management: the system enables forecasting, load-management and customer portal
remote access.
Administration of Server Database: system validation, reporting, control and archiving.
Live AMI Reference Site
Korbitron AMI and its partners have devised, tested and approved such an AMI that caters for both consumer
and supplier needs. Korbitron AMIs resources were an integral part of the successful implementation of the
Roossenekal AMI. Roossenekal is the first municipal AMI in Africa with a full consumer demographic, and has
achieved the following milestones which other municipal distributors are struggling with:
Effective revenue collection for both prepaid and conventional systems.
Effective connection deposit collection and management for conventional tariffs.
Energy management system for this municipality lets local consumers control energy usage for peak
shaving and efficiency, and enables the municipality to control total or specific loads.
Energy management system for consumers uses RF communication between the smart meter to the
in-home display and the appliance control units within the house.
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Smart home control settings and control values for home control units allow efficiency and smart use
of energy.
Smart plugs can remotely measure and control any plugged in appliance.
In-home displays show energy consumption and prices for money-saving adjustments, usage of all
meter types, (water and heating, etc.).
Desktop, cellphone and web applications are available to consumers to provide them with tools to see
all usage information, to set rules and to have remote control over mobile platforms, such as SMS.
Applications for utilities include energy forecasting, network management, direct load control,
consumer load control, and usage profiling.
The Korbitron AMI system includes the communication hardware & software, associated system and data
management software that creates a network between advanced meters and utility business systems, and
allows collection and distribution of information to consumers and other parties, such as competitive retail
suppliers and large users, in addition to providing it to the municipality itself. The meter management system
provides the data in order for utilities to forecast consumption, and effectively plan infrastructure upgrades.
Korbitron AMI Components Master Meters
The Master Meter system, using the GSM 3G
communications, continuously monitors and
calculates energy losses, looking for changes in
power consumption performance of users which
show an un-normative consumption profile. By
installing a master meter at the output of the Low
Voltage transformer, Korbitron AMI can measure
the total power consumption to see if it is
consuming more than its legal limit per dwelling.

The Korbitron AMI system has built-in measures
and processes for combating electricity theft, cable
theft and fraud.
Korbitron AMI Components Smart Meters
The smart meters communicate in real time via
PLC (Power Line Communication) with their Data
Concentrator Units (DCUs), installed at each
substation to load the consumption data. The
DCUs are equipped with 3G SIM cards and
communicate with the cloud hosted
management systems and vending system.
Information systems are major components of
any AMI and are implemented by utilities to use
data from the smart meters for various purposes
including demandside programs, customer systems, outage management, and distribution system
management.

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KEY PERSONNEL
Oginga-Odinga (Ogi) Madinda (39 years)
Ogi Madinda has been a Senior Cost Analyst in utilities for over 15 years. He is, currently, Managing Member
of Madinda Utilities CC. He has held positions, including those of Managing Director of Pama Tech Solutions,
General Manager (Invirohub), Production Development Manager (Maredi Telecoms), Managing Partner
(Fairbreeze Diagnostics) and Senior Cost Analyst (Enerlec Group).
He holds a BSc. Engineering (Chem.) and a B. Bus. Sc. (QM) from the University of Cape Town.
He brings his Diagnostic Analysis and Project Management skills, his IP tools and experience of AMI
implementation. He was the Project Manager on the Roossenekal AMI whilst employed at Maredi Telecoms.
Nqobizizwe (Nqobi) Ndlovu (43 years)
Nqobi Ndlovu is an entrepreneur who has extensive exposure in business management to develop structure,
growth and strategic business ideas into newly pioneered small business enterprises. He is the Founder and
Group CEO, of N Ndlovu & Associates (Pty) Ltd. (NNA). He founded NNA in 1998, as a management
consulting firm, which specialises in Deal Structuring, Funding and Project Management and Business Re-
engineering (applying a concept called Unlocking Value) with the main focus being profitability & cash-flow
improvement. NNA He has held positions, including those of CFO (Transtel SA) and Senior Finance Manager
(MTN Nigeria).
He is a Chartered Accountant (Lesotho) by profession.
He brings his knowledge and experience in Deal Structuring, Funding and Project Management and Business
Re-engineering.
Raymond Lebona (53 years)
Raymond Lebona is a solution-focused and hands-on entrepreneurial professional with more than 25 years of
commercial experience. He is, currently, Managing Director of The Burlington Group and Executive Director of
LeChet Renewables (Pty) Ltd. He has held positions, including those of Head of Operations (Dubai based
Power Print LLC), Executive Director (Maredi Telecoms), Managing Director (Premium Ideas Nigeria) and
Interim Billing Director (Afghan Wireless Communications Co.).
He holds a Bachelor of Commerce (Honours) from University College Cork Ireland. He completed his Articles
with KPMG UK.
He brings his knowledge and experience in Billing, Business Development, Business Operations, Business
Planning, Business Processes, Financial Management and Project Management.

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CONTACT DETAILS
Address: 11 Villa Incka, 130 Rivier Street, Sunnyside East, 0002
Office: 011 315 8255
Fax 011 315 8250
Mobile: 083 7442913