Better utilisation of IT systems could lead to fewer power cuts in SA.
According to Andrew Strachan, SAP Africa regional manager for pre-sales and marketing, Eskom could better utilise its IT systems, of which SAP forms a major part.
"With the correct proactive systems in place, we should have fewer failures," said Strachan, addressing the press at the Saphila conference, in Cape Town, yesterday.
"IT systems can support Eskom from a planning perspective - in other words, how much power you need and when you need it. Some [power supply] issues are related to maintenance, but, with the correct IT, you can run the systems more effectively and better."
SA has been suffering from rolling power cuts, which Eskom blames on an ever-increasing demand for electricity.
Enrico Manzi, SAP Italy customer relationship management business development manager, speaking at the same press conference, said utilities are one of the most successful sectors for SAP, which has 100% of all the European utilities as clients.
Once SA`s utilities environment becomes more deregulated, he noted, IT would be able to lead the way in achieving competitive advantage in this arena.
"Europe has been facing unbundling or deregulation for a couple of years where utilities can`t generate, distribute and sell power," he explains. "Because utilities are facing more deregulation, they need more insight into their customers to differentiate. They also need new products to attract customers, such as bundling services such as electricity and gas."
High hopes
Manzi said the driving factor for utilities to move towards a customer-centred approach was, therefore, legislation, whereas "here [in SA] they [Eskom] still think they are monopolists, they have the market".
"It was the same in Europe until deregulation forced them to change."
Strachan pointed out that Eskom is moving towards a model where its power generation and distribution services are being separated.
"On the management side, Eskom has clustered its generation points in such a manner that you could have six businesses competing against each other," he explained.
"Once the regional electricity distributors (REDs) have been approved, they will be in a position to compete. RED1, in Cape Town, is ready to go if the politics get out of the way. Then it will become attractive to retain customers and for customers to get the best service."
However, he acknowledged that it is still not true competition, as all the electricity entities are still owned by the state.
Strachan is hopeful the utilities landscape in SA will eventually become deregulated, a sentiment echoed by Manzi: "From the European perspective, we are very positive. [Eskom] needs to change to get close to its most valuable customers."
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