case study of non-erra countries: india, brasil and ... · pdf filebranches according to the...
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Case Study of Non-ERRA Countries:
India, Brasil and Republic of South Africa
Tevfik Okan SAYGILI – Energy Expert,
Natural Gas Market Department
Energy Market Regulatory Authority
(EMRA), Turkey
ERRA Customers and Retail Markets Working Group Meeting
06-07.06.2016 Budapest
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Illegal Consumption 1
• Illegal consumption can be categorized in two groups;
• Deception (cheat) :– includes interference to the meter – Consumption is
lowered.
• Payment Issues :– Illegal consumption by Payment issues has also
branches according to the interference to the grid.
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Illegal Consumption 2
• Simplest method is the hook method. Hook is placed to the grid and connection can be made.
• By-passing meter, meter conductor switching etc. are moderate methods.
• Electronic mechanisms that can intervene at high consumptions, remote control systems, direct connections to medium and high voltage etc. are advanced methods.
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Illegal Consumption 3
• In less electrified areas and countries with not modern grid, simplest method is preferred.
• Advanced methods are used in countries that have lower fines and control. Also most income loss occurs in these countries.
• Also average illegal consumption rate of the world is around 8-10 percent.
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India – General Information
• Capital New Delhi
• Area of 3.287.590 km2
• Population ~1.4 Billion
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India - Electricity
• Consumption in 2014: 1.023 TWh
• Loss in 2014: 236 TWh
• Installed Capacity: 255.000 MW (~60% Coal)
• Average Loss : More than 20%
Some states has 47% average
• ~25% of population has no electricity.
• Electricity Distribution: 41 State Owned,
17 private Company
Total:58 Dist. Company
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India
• Has a problem about illegal consumption rate.
• Has DSO’s working on lowering illegal consumption with successful projects.
• Achievements on customer detection, registry, field applications, lowering field resistance and legal legislations.
• As a result - has lowered illegal consumption rate.
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India
• At the beginning 2000’s, illegal consumption rate was between 25-30 percent. But after implementations, it has been lowered to 21 percent. (Still working on this case)
• Because of the difficulties of liberalization process, franchising model is preferred. Government has the ownership, but hands over the management temporarily.
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India – Loss Definitions
• Transmission and distribution losses include technical loss and metering losses.
• Also there occurs billing losses and they usuallyhappen due to:– Mistakes made in billing center
– Wrong/faulty data in system
• Also there is a commercial loss – difference btw. billing and collecting.
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India – Loss Definitions 2
• All losses above are called “total technical and commercial losses”
• Losses in collection side are included in “aggregated loss calculation method” of Indiaand are not an internal issue of distribution company only, also an issue of transmission company and government.
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India – Illegal Consumption
• Healing rate in local areas is high. (in developed regions loss/illegal consumption rate is less than local areas)
• Electricity Grid/Network in India is primitive and subscription conditions for customers are not easy.
• Just subscription and installing meter can prevent illegal consumption. (customers are afraid of using advanced methods.)
• In some districts, subscription rate is risen from 0% to 99,8%. So struggle is on subscription processes.
• As social structure, there are poor people that afraid of legislations. So heavy sanctions that put in action by government is the most effective way on lowering illegal consumption.
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India –Photos fromNew Delhi
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India – Photos Mumbai
• Underdeveloped and developed city side by side
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India – Illegal Consumption
• So in India, fight against losses and illegal consumption consists of 3 parts that are supported by 4th part: Legislations.
1. Direct precautions
2. Indirect precautions
3. Investments
4. Legislations
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India – Illegal Consumption
1. Direct precautions:
-Meter is installed in a covered and closed box.
-Covered line between
power pole and houses.
-Isolated cables in
distribution and transmission
-Smart meter installment
for customers with high
consumption
Isolated cable
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India – Illegal Consumption
2. Indirect precautions:
– Effective control mechanism and high fines.
– Social projects of franchise companies.
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India – Illegal Consumption
3. Investments:
– Meters are installed at a place that can be seen easily.
– Periodic reading and control of meters.
– Control with police supervision on suspicious cases
– Very strict and frequent controls with high fines in first 2 years
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India – Illegal Consumption
4. Legislation support:
– Deterrent electricity law – illegal consumption is a felony
– Security support on field control
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India – Illegal Consumption Results 1
• Fight against illegal consumption is achieved after law is implemented.
• With law, illegal consumption types, fines and penalties are defined.
• Poor people are afraid of legal regulation, legislations, and fines. So just installing meters were enough for them to stop illegal consumption.
• Police support for resistance against field controls was effective. (500 police is appointed in New Delhi for distribution companies)
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India – Illegal Consumption Results 2• Fines are very heavy for economically disadvantaged
people. Since they cannot afford fines, they obey rules.
• In first years of fight against illegal consumption, power cut method is used in Biwandhi district, which has around 70% loss rate. Max 6 hour of power is supplied.
• “Shaming” method is used. For illegal consumption, differently colored (mostly red) bills are used.
• All these achievements are accomplished in a very long-term, for example, «the most successful company of Asia reward» winner Tata Power Delhi Distribution Limited (TPDDL) has decreased the illegal consumption rate from 53% to 11%. (But duration is also important. This decrease happened in 13 years.
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Brazil - General
• Capital : Brasilia
• Area of 8.515.767 km2
• Population ~200 Million
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Brazil - Electricity
• Consumption: 2.527 TWh
• Loss in 2014: 380 TWh
• Installed Capacity: 132.436 MW (~67% Hydro)
• Average Loss : 15 - 16%
Northern area has higher loss
• Electricity Distribution: 17 State Owned,
47 private CompanyTotal: 64 Dist. Company
• ~72 Million distribution system customer
• 85% residential customer
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Brazil – Electricity DSO’s
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Brazil – Electricity Losses
Technical and commercial losses of Brazil annually. (source: ABRADEE and PWC)
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Brazil
Before revisions of network.
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Brazil
• Has a problem of illegal consumption. Some districts has a serious illegal consumption rate.
• Has some DSO’s working on lowering illegal consumption with successful projects.
• Has lowered illegal consumption rate.
• Has experience on field applications with resistive customers and has high collection rate
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BrazilFavela
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Brazil
• At regions called “Favela”, distribution system is implemented after security is provided by governmental forces.
• Also, government has given permission to the distribution companies for loss and illegal consumption preventive activities in specific areas.
• For areas that are not permitted by government, distribution companies are not responsible for losses.
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Brazil
• Incentives are given to DSO’s for lowering losses and energy efficiency.
• There is a minimum consumption fee for customers.
• There are social indices for education, accessibility to water, availability of toilets etc. These indices are used for calculation of applicable loss rate.
• The expected annual rate of improvement is limited.
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Brazil – Illegal Consumption
• Also in Brazil, struggle against losses and illegal consumption consists of 3 parts that are supported by 4th part: Legislations
1. Direct precautions
2. Indirect precautions
3. Investments
4. Legislations
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Brazil – Illegal Consumption 1
1. Direct precautions:
-Meter is installed in a covered and closed box.
-Covered line between power pole and houses.
-Smart meter installment for customers with high
Consumption
- Illegal consumption analysis and tracing program support.
- Isolated cables
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Brazil – Illegal Consumption 2
2. Indirect precautions:
– High fines and penalties from power cut toimprisonment.
– Social projects on compromising and agreement forcustomers who are not afraid of penalties.
– Continuous education via media.
– Subscription proposals instead of power cut.
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Brazil – Illegal Consumption 3
3. Investments:
– Meters are installed outside and can be seen easily.
– Periodic reading and control of meters.
– Installed local offices and Control with local authorities. (If necessary, police supervision is applied)
– Information Technologies support based on billing andmetering data.
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Brazil – Illegal Consumption 4
4. Legislation support:
– Security support on field control
– Strict control ability
– Illegal consumption is a crime with high penaltiesand fines
– Issue is handled publicly and has a public support
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Brazil – Illegal Consumption Results 1
• In Brazil legal support is important.
• Moreover it is considered unfair to talk about illegal consumption for people who has no access to wateror toilet.
• So in Brazil 1 % of annual turnover of consumptionbills are used for social responsibility projects andenergy efficiency projects.
• As a social responsibility and efficiency project, oneDSO (AES Eletropaulo) has changed old typerefrigerators with low consumption ones and gaveenergy saver bulbs as giveaway.
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Brazil – Illegal Consumption Results 2
• To fight against economical terms, gradual tariffmethod is implemented. With higherconsumption, tariff also gets higher.
• Minimum consumption fee for customersaround $1,5 up to 30 kWh.
• In some local areas, local offices are installedand weekly billing period is used.
• For cultural infrastructure, shaming method is also used.
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Brazil – Illegal Consumption Results 3
• Regulatory authority of Brazil (ANEEL) is workingon social indices for different areas.
• These social indices include education, ability topay, unemployment rate, accessibility to water, availability of toilets, crime rate etc.
• These indices are used for calculation of applicableloss rate (Ex: Rio De Janeiro is 5th in loss rate, but with indices, due to crime rate in favela area, becomes 3rd in applicable loss rate)
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Brazil – Illegal Consumption Results 4
• For fighting against losses and illegal consumption, priority is the total energy loss.
• So in Brazil, to have efficiency on time and labor, control is made with information technologies firstand then control teams are directed. (withpossibility calculations)
• DSO’s have loss goals and they get extra tariffaccording to these goals.
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Brazil – Illegal Consumption Results 5
• But results are not perfect for Brazil.
• For a company, after spending ~65 million USD in a year for just losses, only 2,4 % rate can be decreased with this much expenditure.
• So for DSO’s annually 1 % decrease in loses can be considered as a success.
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Republic of South Africa – General Information
• Capitals: Cape Town (legislative)
Pretoria (executive)
Bloemfontein (judiciary)
• Area of 1.219.080 km2
• Population ~54 Million
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Republic of South Africa - Electricity
• Consumption in 2014: 291 TWh
• Loss in 2014: 26 TWh
• Installed Capacity: 46.000 MW (~92,5% Coal)
• Average Loss : More than 8%
• ~12% of population has no electricity.
• Electricity Distribution: 1 State Owned,
157 Municipality Company
Total:158 Dist. Company
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Republic of South Africa
• Has a problem about cable and equipment theft.
• Law is implemented.
• Awareness is improved among people. (Publicsecurity issue)
• As a result of high technology methods, positiveresults have been met.
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Republic of South Africa
• Field teams are formed for fighting againstcopper theft.
• Media support (300 Million USD is spent forpublic advertisement in 12 months.)
• Support from an England Security Company.
• Governmental support.
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Republic of South Africa
• Support frompresident.
Result:
• In 12 months 200 thieves have beencaught.
• Illegal consumptionis also a theft.
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Overall Results• According to the most studies and literature
– Powerful legal legislations
– Security support in field
– Understanding inequalities and varieties in field
– Public support / public awareness
– Governmental support
– Field controls and grid configuration
– Advanced information technologies
are needed for successful applications and control of illegal consumption.
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Thank you for your attention
For further information:
Tevfik Okan SAYGILI
www.emra.org.tr / www.epdk.org.tr