Rens Bindeman

Technical Advisor
SARPA
South Africa
 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

kW
S/N AccountNo Billed h Pmt IBC
85111139720
1 1 3111,68 150 NULL PARADISE CITY MAIN
85138200050
2 1 3111,68 150 NULL PARADISE CITY MAIN
85118434750
3 1 3111,68 150 NULL PARADISE CITY MAIN
85142115550
4 1 3111,68 150 NULL PARADISE CITY MAIN
85110930460
5 1 3111,68 150 NULL PARADISE CITY MAIN

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 Nigeria’s Revenue Loss Challenge
 The biggest threat to Revenue Generation and Service Delivery is
COMMERCIAL LOSSES (Non Technical)

Monthly Billing
N24bn (Industry Average) 45% Total Losses
(Industry Average)

Commercial Losses
Monthly Collections
N12bn (Industry Average) 28% (Industry Average)

These losses undermine the performance of utilities, discourage investments

and stunts economic growth.
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 Commercial Losses

There are 3 key types of Commercial Losses:

1 2 3
Consumed but not Metered Metered but not Invoiced Invoiced but not Paid

Revenue Protection is focused on tackling Commercial Losses

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 Causes of Commercial Losses

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

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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

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 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

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 Managing the Process
Analyse Loss Profile Plan & Execute Audits Resolve Audit Findings Evaluate Performance

• Plan & Prioritise • Resolve Illegal

• Losses Performance
• ATC& C Losses Audits Connections
Reporting
Analysis
• Source & Manage • Resolve Meter
• Evaluate ROI for Loss
• Billing Analysis Resources To Perform Tampering
Management
Audits Interventions
• Payment Behaviour & • Resolve Metering
Collections Analysis • Perform Audits & Problems
• Define & Implement
Capture Required Continuous
• Customer Care Information • Resolve Data &
Improvement
Analysis Process Issues
Initiatives
• Report On Audit
• System Reliability Findings • Drive & Accelerate
Analysis Revenue Recovery

• Load Profile Analysis • Checkmate Corrupt

Practices

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 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
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.

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Consumption Trends
11

Millions (KWH)
10

5
Oct-14 Nov-14 Dec-14 3Months Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15
Prior

BILLING (=N=) TREND OF RECERTIFIED &CORRECTED MD CUSTOMERS

450
Millions

400
Amount Billed (=N=)

350

300

250

200

150

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Payment Trend of Corrected MD Customers
250

MILLIONS (=N=)
230
210
190
170
150
130
110
90
70
50

Average Monthly Before Recertification After Recertification Increase % Increase

KWH 7,452,422 9,374,160 1,921,738 26%

Bills (=N=) 218,148,160 344,268,597 126,120,438 58%
Payment 123,822,467 203,697,422 79,874,955 65%
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 Closing the Loop – Technology vs Manpower

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

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

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 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
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 THANK YOU
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