Rens Bindeman Technical Advisor SARPA South Africa

Transcription

1 Rens Bindeman Technical Advisor SARPA South Africa

2 Goal of the Presentation To highlight the impact of Commercial losses and explain the Integrated Revenue Loss Management Model that are been developed for the Electricity Distribution Companies in Nigeria. ENUMERATION AUGUST 2015 DETAILS S/N AccountNo Billed kw h Pmt IBC , NULL PARADISE CITY MAIN , NULL PARADISE CITY MAIN , NULL PARADISE CITY MAIN , NULL PARADISE CITY MAIN , NULL PARADISE CITY MAIN 2

3 Nigeria s Revenue Loss Challenge The biggest threat to Revenue Generation and Service Delivery is COMMERCIAL LOSSES (Non Technical) N24bn Monthly Billing (Industry Average) 45% Total Losses (Industry Average) N12bn Monthly Collections (Industry Average) 28% Commercial Losses (Industry Average) These losses undermine the performance of utilities, discourage investments and stunts economic growth. 3

4 Commercial Losses There are 3 key types of Commercial Losses: Consumed but not Metered Metered but not Invoiced Invoiced but not Paid Revenue Protection is focused on tackling Commercial Losses 4

5 Causes of Commercial Losses Influence Factors Illegal Consumption Unknown Consumers Fraudulent Consumption Meter Bypass Meter Tampering Unsafe Leads Administrative Errors Billing Errors Tariff Errors Data Errors Metering Issues Affordability Metering inefficiencies Opportunism Sense of Entitlement Corruption & Collusion Operational Inefficiencies Management Inertia 5

6 Tackling Commercial Losses First Steps Appoint a Capable Revenue Protection Manager Appoint Dedicated Staff Members Technical Tasks Administrative Tasks Accountability and Bottom Line Responsibility Detection Recovery Attack the Big Fish First A little bit of effort brings in megabucks Don t succumb to the temptation to catch thousands of little guppies 6

7 Quick Wins 100% MD Meter Recertification 100% MD Meter Installations 100% Billing on AMR 90% Collections MD Customer Enumeration Faulty Meters Replaced Outstanding Debt Recovery Data Cleansing 7

8 Managing the Process Analyse Loss Profile Plan & Execute Audits Resolve Audit Findings Evaluate Performance ATC& C Losses Analysis Billing Analysis Payment Behaviour & Collections Analysis Customer Care Analysis System Reliability Analysis Plan & Prioritise Audits Source & Manage Resources To Perform Audits Perform Audits & Capture Required Information Report On Audit Findings Resolve Illegal Connections Resolve Meter Tampering Resolve Metering Problems Resolve Data & Process Issues Drive & Accelerate Revenue Recovery Losses Performance Reporting Evaluate ROI for Loss Management Interventions Define & Implement Continuous Improvement Initiatives Load Profile Analysis Checkmate Corrupt Practices 8

9 Revenue Protection Processes Skills development processes: These processes can be devided into formal training courses, workshops, on job training, mentorship programs and perfomance enhancing processes Revenue Recovery Processes: By utilizing the Revenue Recovery Toolkit the unit will be able to analize processes and engage with entities within the company to determine the reasons for not recovering lost revenues, or even the direct reasons for lost revenue Meter audits: Meters could be audited by utilizing several different methods Remedial actions: Remedial actions conducted by RPD staff members are done in a different way from what is done during normal credit control Standardisation: Membership ensures access to knowledge regarding all related standards and participation in standardisation development processes

10 Case Study PHED had projected losses of 98,987,849 KWH between January 2014 to September 2015 on MD customers alone. Since these losses continue month after month, it is important for RPD to identify their specific causes and locations in order to reduce them. 10

11 Consumption Trends Millions (KWH) Amount Billed (=N=) Millions Oct-14 Nov-14 Dec-14 3Months Prior Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 BILLING (=N=) TREND OF RECERTIFIED &CORRECTED MD CUSTOMERS

12 Payment Trend of Corrected MD Customers MILLIONS (=N=) Average Monthly Before Recertification After Recertification Increase % Increase KWH 7,452,422 9,374,160 1,921,738 26% Bills (=N=) 218,148, ,268, ,120,438 58% Payment 123,822, ,697,422 79,874,955 65% 12

13 Closing the Loop Technology vs Manpower Aligning field operations with data analytics and technology solutions will improve success rate 85% 30% Field Audits 50% Data Analytics Watchdog Effect Energy Audit & Control Technology Benefits of Closing the Loop: Corporate Governance & Anti-Corruption Agenda Target, Track & Measure Billing Performance Psychosocial Conditioning and Behaviour Change 13 Armese Loss Reduction Theft Prevention Revenue Protection

14 New Technology Armese/CWG Alpha is a unique pole top mounted energy audit and control device with the ability to detect and stop electricity theft in minutes. The key element for success in efficient power distribution is to achieve round the clock monitoring of the Low Tension network elements. 14

15 Solution Offerings Remote Pole Top Audit Metering Conducts real time energy audit of the home meter and checks if the meter is bypassed or not Employee Field Alerts Zero Overhead Theft CWG Alpha No Meter Bypass Remote Disconnect/ Reconnect Checks the overhead line span between poles for any imbalance Remote connect/disconnect of power whenever a tamper is detected and isolates location for immediate response by revenue protection personnel. Real Time Network Data Integrated Metering, Billing & Analytics Utilize its remote control systems to assist in recovery of late payments and arrears as well as systematic load shedding 15

16 Critical Success Factors Multi-Departmental and Stakeholder Collaboration Revenue Protection Department Techno-Commercial Billing Operations Integrated Business Centres Law Enforcement Community Leaders Customers Data Driven Operations Adoption of Best Practices and Effective Operational Procedures Close Monitoring and Proactive Restitution KPI s for objective performance measurement and operational focus Top Level Management Support and Involvement Revenue Protection Champions 16

17 17 THANK YOU