Process Re-engineering and Data Integrity Improvements to ...€¦ · % of read meters 53,84% 28,10% 0,00% 89,04% 70,62% 56,88% 71,43% Apr'16 Total number of meters downloaded 1049

Process Re-engineering and Data Integrity

Improvements to Aide in Revenue Realization at

City Power

• Mdu Nzimande

• Director of Engineering Operations

• City Power

• South Africa

Agenda Items

1 Typical Energy Utility Revenue Leakage

2 City Power Johannesburg Context

3 What is Smart Metering?

4 Auditing Process

5 Results of the Field Audits

6 Business Results

7 Conclusions

Typical Utility Leakages

METERING LOSSES

SALES LOSSES BILLING LOSSES ACCOUNTING

LOSSES DISTRIBUTION

LOSSES

• Lines & cables • Transformation

losses • Overloading &

outages • Load balancing • Voltage regulation

philosophy • Energy reconciliation • Network monitoring

& visibility

• Meter tempering • Meter by-pass • Biased

estimations • Reading errors • Lost readings • Faulty Meters • Multiplication

factor errors • Implausible

actual readings

• Estimation errors • Incorrect tariffs • Credit

worthiness • Misplaced

applications • Incorrect

adjustments • Move-in move-

out period • Misconfiguration

on billing system

• Unbilled customers

• Missing customers

• Prolonged estimations

• Illegal conversions to lower tariff classes

• Overcharges • Under-billed

customers

• Missing payments

• Late payments • Non-payments • Bad-debt

provision • General ledger

errors

TECHNICAL LOSSES

OPERATIONAL LOSSES FINANCIAL LOSSES

The City Power Situation

57%

8%

5%

30%

Sales Revenue Breakdown (%)

Large Power User 4200 Customers 57% of Revenue Approx. R6.6 Bn

Domestic 151,200 Customers 30% of Revenue Approx. R3.5 Bn

Business 12,600 Customers 8% of Revenue Approx. R928 Mn

Prepaid 252,000 Customers 5% of Revenue Approx. R580 Mn

Customer Base Statistics

Increasing Non-Technical Losses Trend

Urgent Intervention Required

Downward Pressure on Revenue Line

Increasing Non-Technical Losses Trend Evident

What is Smart Metering…?

Smart Metering is more than remote meter reading…

Smart Metering provides…

Customers with the information they require to become energy savvy and make smarter decisions about energy usage

Suppliers with the means to better understand and service their customers

Distributors with an effective tool to better monitor and manage their networks

Automatic reading, processing and transmission of metering data

Possibility of bi-directional data communication in real-time

Support of value-add services and applications e.g. home automation, remote disconnection of supply or load limiting

Remote update of meter firmware to enable new services

Smart Metering is the…

Auditing Process

System

Updates Audit List

Field Audit Data

Captured

Account

Verification

Phase I – Correct Meter to Account Links

Install

Meter

All meters audited Meters linked Meters not linked

Phase I

Auditing Process…2

System

Updates

Incorrect

Account to

Meter Links

List

Polygon

Test

Signature

Load Test Install Meter

Phase II – Account Links to Meters on Field

Data

Capture

Please move into stand!!!

You may proceed with Audit

Auditing Process…3

STEP 1 STEP 2 STEP 3 STEP 4

Signature Load Test

Phase II Outcome ALL METERS LINKED

Auditing Process…4

Results of the Field Audits

Stand Number - SGID Meter Number GPS Location

Results of the Field Audits…2

Key Process Areas Migrated

System

Match

Not in the

System TOTAL

82% 18% 924

PREPAID

System

Match

Not in the

System TOTAL

97% 3% 17 978

SMART METERS

System

Match

Not in the

System TOTAL

98% 2% 9,197

OTHER DOMESTIC METERS

System

Match

Not in the

System TOTAL

100% 0% 1821

LPU

DOM LPU TOTAL

100% 0% 380

GHOST CUSTOMERS

Business Results

MONTH Download (Portion B -H) Read (Portion B -H) Meters Not Read %

Mar'16 96 313 68 792 27 521 71,43%

Apri'16 95 746 73 166 22 580 76,42%

May'16 97 309 78 132 19 177 80,29%

-

20 000

40 000

60 000

80 000

100 000

120 000

Mar'16 Apri'16 May'16

Download (Portion B -H) Read (Portion B -H) Meters Not Read

Overall Bill Reading Performance

Month

Manual Read

LPU Addax Hefcom Itron LPU

Manual Read

Domestic

Overall

Performance

Mar'16

Total number of meters

downloaded 1055 1854 0 30710 34209 28485 96313

Meters Read 568 521 0 27344 24158 16201 68792

% of read meters 53,84% 28,10% 0,00% 89,04% 70,62% 56,88% 71,43%

Apr'16

Total number of meters

downloaded 1049 1765 0 31773 34203 26956 95746

Meters Read 685 433 0 28444 27199 16405 73166

% of read meters 65,30% 24,53% 0,00% 89,52% 79,52% 60,86% 76,42%

May'16

Total number of meters

downloaded 1051 1346 0 32454 37434 25024 97309

Meters Read 795 392 0 29300 30055 17590 78132

% of read meters 75,64% 29,12% 0,00% 90,28% 80,29% 70,29% 80,29%

53.84%

28.10%

89.04%

70.62%

56.88%

65.30%

24.53%

89.52%

79.52%

60.86%

75.64%

29.12%

90.28%

80.29%

70.29%

MANUAL READ LPU ADDAX ITRON LPU MANUAL READ DOMESTIC

Mar'16 Apr'16 May'16

Meter Read Performance per Rate

Category (Portion B – H)

Business Results

Conclusions

Data Integrity

Benefits

Audit & Account Verification

• Accurate database of customers

• Accurate network-customer link

• Known meter location

• Improved accuracy of field-system match

• Known account status

• Informs focus areas and efforts

Other Business Outcomes

• Improved read performance

• Updating of data for ghost customers

• Improved non-technical losses situation

Thank you !