€¦ · Web viewIn addition, the very limited power markets meant for the only national consumers do not allow these big projects to be profitable. ... continent’s power network

RECO

MM

ENDA

TION

S OF

THE

CON

GRES

S AN

D RE

SOLU

TION

S OF

TH

E 36

TH O

RDIN

ARY

GENE

RAL A

SSEM

BLY

ACCRA, GHANAACCRA, GHANA06 – 10 June 200506 – 10 June 2005

CONGRESS OF UPDEACONGRESS OF UPDEA1515thth

THEMEACCESS TO ELECTRICITY FOR ALL PEOPLES OF AFRICA THROUGH A POOLING OF

ENERGY RESOURCES

S U M M A R Y

SECTION I: RECOMMENDATIONS OF THE 15 TH CONGRESS OF UPDEA

0 - PREAMBLE

1 - INTERNATIONALIZATION OF LARGE GENERATION SITES AND RELATED HV INTERCONNECTIONS

2 - RURAL ELECTRIFICATION

3 - CUSTOMER MANAGEMENT

4 - STANDARDIZATION OF ELECTRICAL MATERIALS

5 - REFORMS OF THE AFRICAN POWER SECTOR

6 - HUMAN RESOURCES MANAGEMENT

SECTION II: RESOLUTIONS OF THE 36 TH ORDINARY GENERAL ASSEMBLY OF UPDEA

Recommendations of the 15th Congress and Resolutions of the 36th General Assembly

2


3

SECTION 1 - RECOMMENDATIONS OF THE 15TH CONGRESS OF UPDEA


4

0 - P R E A M B L E

P r e a m b l e--------------------

UPDEA (Union of Producers, Transporters and Distributors of Electric Power in Africa) has organised its 15th Congress in Accra (Ghana) from 6th to 10 June 2005.

The Congress which was attended by more than 300 delegates from Africa, Europe, America, and Asia was a great success according to participants.

Indeed, this 15th Congress which coincided with UPDEA’s 35th anniversary was a great moment for discussions, exchanges and reflections on future prospects of the African power sector as well as a forum of contacts between players of the power sector, political figures, development partners and diplomats.

The General Secretariat is thankful to the various international organisations that participated in the Congress (African Union, African Energy Commission, African Development Bank, World Energy Council, CIGRE, African Water Association, UTE, UEMOA, IEPF, ECOWAS, etc…) the active and affiliate members of UPDEA as well as exhibitors of electrical equipment for their active participation in the proceedings.

Relevant recommendations and resolutions were passed as a result of the proceedings. The General Secretariat publishes the main ones in this document in order for one another to be adequately informed and use them for reference when taking initiatives in our respective area of responsibilities.


5


6

1- INTERNATIONALIZATION OF LARGE GENERATION SITES AND RELATED HV

INTERCONNECTIONS

1. Internationalization of large generation sites and related HV interconnections

-----------------------

SITUATION

Africa is the less electrified continent in the world although it is endowed with major hydro-power potentials (Inga, Cahora Bassa…) likely to supply power to the whole continent if developed.

Unfortunately, these large electrification projects (big dams, interconnections) require huge investments which are generally unaffordable for our countries taken individually.

In addition, the very limited power markets meant for the only national consumers do not allow these big projects to be profitable. This is why these major generation sites are still underdeveloped and Africa remains in the darkness.

To remedy this situation, it would be fit for some countries to get together and develop joint power projects in a secured legal and institutional framework for all parties.

This concept calls for the internationalization of major generation sites, which allows to share the financial risks between various countries and stakeholders involved in a specific regional or continental oriented project. Although it is promising for Africa, materialising this concept is lingering due to the hesitation of countries involved.

RECOMMENDATIONS

a) At Institutional level

- An Independent and autonomous Commission should be set up by the African Union on large hydropower sites like (Inga, Cahora Bassa, etc...).

In order to build the existing capacities for each project identified, the related commission should involve representatives of all players including those of the host countries and UPDEA.

- In order to preserve the interest of the countries hosting these sites, the concept of “sovereign rights” was proposed for negotiation between project promoters and the countries concerned in order to profit each party.


7

b) At Commercial level

- Taking into account our continent’s poor rate of electrification, priority should be given to meeting, beforehand, the energy requirements of African countries before exporting to another continent.

- Export tariffs and wheeling charges should be harmonized at regional level in order to foster power exchanges between countries.

- The minor interconnection projects at sub-regional level must be encouraged. Indeed, their costs are relatively affordable, and do allow a speeding of the continent’s power network integration and harmonization of relations among the peoples who often speak the same languages.


8


9

2 - RURAL ELECTRIFICATION

2. Rural Electrification-----------------------

SITUATION

Africa remains the less electrified continent in the world with an electrification rate ranging from 3 to 35% in most countries south of the Sahara.

Whereas efforts are been made to supply power to the urban population, this is not the case in rural areas where, in many countries, the whole populations are abandoned with no hope of enjoying the comfort provided by electricity

This situation arises from many reasons including:

- A lack of voluntary rural electrification policy within the countries- The lack of a specific national structure in charge of handling problems of

rural electrification - The lack of funds fit to the conditions in rural areas given that this

investment is not financially attractive for the private stakeholders.

RECOMMENDATIONS

a) At Institutional level

The UPDEA recommends to all African states to work out and implement individually a volunteered rural electrification policy, based on short, medium and long terms master plan. The UPDEA strongly recommends that all African states should set up, according to their own realities, independent bodies responsible for Rural Electrification.

The latter may be a governmental Service or a para-statal body with some autonomy and under the direct supervision of the Ministry responsible for Energy .

b) In terms of financing

The UPDEA recommends that a fund be established to finance rural electrification which could be raised through the following actions:

1. Appropriate taxes solidarity levy television levies, community tax etc…

2. VAT on electricity bills of some classes of customers (Mines, industries, rural customers etc…) to be repaid to the funds.

3. Contributions of the end users

4. Exemption from custom duties and taxes on equipment meant for rural elec-trification projects.

5. Various gifts

6. Etc…

A working group should be set up to ponder on the idea and thoroughly examine its feasibility, define a road map for future actions.


10


11

3 - CUSTOMER AND MARKETING MANAGEMENT

3. CUSTOMER MANAGEMENT----------------------

SITUATION

Performing at the customer’s expectations has become a major issue facing UPDEA utilities. Among key customer expectations are the safety and quality of electricity supplied and the quality of the service.

In most utilities, the following is noted:

a) Safety of installations

In most African countries, customers’ electric installations are not adequately guaranteed.

Many fire outbreaks and other damages caused by in-house electric installations that do not comply with any safety standards are recorded.

b) Quality of supply

There is little satisfaction as to quality of supply in many utilities; this is featured by load sheddings and excessive power interruptions causing damages and inconveniences to the customers. The main causes include:

- decay and overload of the network,- inadequate maintenance and operation of facilities ,- failure to have control over equipment by some agents,- faulty installation of equipment.

c) Services enjoyed by customers

In a great number of utilities there is no customers Call centre to review their expectations and provide required solutions.

d) Non-technical losses

Electricity fraud remains a key problem for many utilities, some having recorded losses up to 40% of the turnover.

It emerges from UPDEA’s proceedings that:

- The follow up of non-technical losses is not often handled voluntarily and sys-tematically by African power utilities

- Reviewing the « meter reading-billing » process which enables to handle dysfunctions, analyse the causes and undertake corrective measures is not monitored in most utilities due to:

The collusion of agents The unsecured installations The excessive centralisation of customer management.

- Though prepayment meter-reading reduces fraud on the meter, it does not exclude frauds on the connections,

- Fraud is not strongly fought due to lack of legislation likely to provide an appropriate judicial framework to defend corporate interests.


12

RECOMMENDATIONS

a) Safety of installations

1. The checking of electric installations of customers has to be carried out before connection to the distribution system, then, periodically according to a periodicity as required by realities in each country.

2. Checking up the installations should be performed by a specific body, independent from the power utility. This body may be placed under governmental responsibility or, an independent body regrouping all stakeholders. In the latter case, it is obvious that, tariffing conformity certificates remains under states responsibility.

3. There should be a major sensitization of users about the risks incurred when in-house electric installations are not regular and non standardized materials are used.

4. Training of electrical fitters must be a permanent concern for the management.

5. There is need to set up a licensing process for qualified fitters.

b) Quality of supply

1. The power utilities must ensure a good protection of HV/MV transformers by a systematic maintenance planned and by periodic load measurement in order to balance the HV network phases. To that end, SERGI (a company in France) has designed a preventive system compatible with all types of transformers which, when mounted, strengthens its safety and prevents from explosion risks. This system is recommended to all utilities.

2. The power utilities must systematically analyse the damages per cause and find the appropriate solution.

c) Services rendered to customers

1. According to its own realities, each utility must set up a listening system ofcustomers. The relevance to adopt a listening system is justified, since, among others, it allows to anticipate customer expectations, perform proximity task and improve corporate reaction in the light of customer concerns.

2. The utility should conduct a periodic investigation with the customer to knowthe level of satisfaction compared with the services rendered. In the light of the outcome, it may undertake corrective measures with the risk to cause a negative reaction of the clientele.

3. Each utility must use, for its listening system, a set of implements with no preference: phone calls, computer applications to measure indexes of customer satisfaction, claims management, reception, open door days, meeting with customers, site visits and trade fares, etc...

d) Non technical losses

Utilities are recommended to :

1. Set up a judicial framework to fight fraud on power installations,


13

2. Make a large campaign for users and employees on the risks encured,

3. Affirm the willpower of the management by setting up operating structures.

4. Make a thorough analysis before embarking on prepaid system because it does not constitute the unfailing technological solution to fight fraud although it helps reduce non-technical losses.


14


15

5 - REFORMS IN THE AFRICAN POWER SECTOR

5. Reforms in the African power sector -----------------------------

SITUATION

During the 2003-2005 periods, the UPDEA did analyse, through its study Committee on “Restructuring and Financing of the power sector the achievements made after the reforms undertaken in the African power sector. It emerges the ever that ever since the beginning of the 90s, some countries had undertaken institutional reforms in their national power sector with involvement, in some cases, of private partners whether in terms of assets or management of the company.

Some of these countries have also experienced the involvement of Independent producers.

Fifteen years after, the results are mitigated. Though in some utilities an improvement of the technical and commercial performance was noted, others have experienced a total failure, due mainly, to a wrong negotiation of contracts between the states and the buyers. In most cases, the following was indeed noticed:

- persistent load shedding and excessive power cuts,- uncontrolled billing,- a decay of installations due to poor investment while the concessionary was supposed to maintain performance of facilities- persistent fraud,- deterioration of companies’ social environment .

RECOMMENDATIONS

1. The state should continue to play a driving role in supplying power to the urbanand rural population. To that end it must:

- have a coherent regional and national policy of the power sector,

- set up the appropriate institutional and judicial framework prior to any process of restructuring, privatizing of the power utilities and bringing in independent production.

2. The state must train national executive staff in the field of negotiations of international contracts related to the process of reforms and involve them in all stages of the negotiations.

3. The state must foster the emergence of national independent producers.

4. As far as utilities are concerned, they must adopt methods of good governance so that the governments may not be tempted to resort to privatization.


16


17

4 - STANDARDIZATION OF ELECTRICAL MATERIALS

4. Standardization of electrical materials-----------------------------

SITUATION

The electrical equipment used by the power networks of African countries is not always fit for the conditions and realities of the latter and especially, the operating conditions of networks in the rural world. The connection and operating costs are consequently, very high impeding a significant rate of access to electricity.

On the other side, the disparity of standards used by the power utilities makes it more complex to implement networks interconnections and given mutual assistance in case of breakdowns, seeing the materials used by one another are not compatible.

RECOMMENDATIONS

Africa must be prepared to use standards and specifications adapted to its realities. For this reason, it is recommended to create the African Electro technical Standardization Commission under the aegis of the African Union.

This Commission shall include delegates of national and regional bodies in charge of standardization as well as those of UPDEA and the African Energy Commission.


18


19

6 - HUMAN RESOURCES MANAGEMENT

6. Human Resources management -------------------------

SITUATION

Human resources remain the main resource of any enterprise. Unfortunately, numerous power utilities do not always pay attention to the problems related to human resources which, in the long run, will hamper their smooth running, especially problems like:

- staff retraining at all levels of the utility in order to improve skills

- Staff incentive to mobilize skills using a good knowledge of merits based on

performance

- social environment of the corporation

- impact of HIV/AID on working environment

- Trade gender balance in work places.

RECOMMENDATIONS

The following recommendations were made to utilities:

a) In the area of retraining

- to broaden the training programmes of agents to executive staff and provide enough funds to the continuing training curriculum of the employees,

- organise, within UPDEA, training seminars of short duration (1 day) meant for Executive Directors on modern management techniques and tools.

b) In terms of incentives

- initiate an assessment mechanism likely to identify contribution of the staff tocorporate performance,

- work out remuneration mechanism for performances achieved by the teams, units /divisions or sections at work.

c) In terms of social environment

- put in place or strengthen the « watch dog » structures within the utilities andorganise, systematically, a listening system of the staff.

d) With regard to the impact of HIV/AID

- implement a prevention policy and campaigns of sensitization including a sponsorship for infected employees,

- foster a non-discriminatory environment of employees suffering from this disease


20


21

SECTION 1I -RESOLUTIONS OF THE 36TH

ORDINARY GENERAL ASSEMBLY OF UPDEA

Resolutions of the 36th Ordinary General Assembly------------------------------

1ST RESOLUTION : OF THE EXECUTIVE COMMITTEE

The 36th Ordinary General Assembly of UPDEA, meeting in Accra on 6th June 2005,

Considering the report made by the Executive Committee on evolution of the UNION membership in Eastern Africa,

Decides, in compliance with section VI of the Bylaws relating to the transitional provisions, to re-establish the basic system of nominating the members of the Executive Committee, ie 3 members per subregion except the subregion hosting the headquarters of the UNION which is entitled to have 4 members.

Acting under article 13 of the constitution,

Puts in place for 2005-2008 period the Executive Committee as follows :

* North Africa1. EEHC (Egypt)2. SONELGAZ (Algeria)3. STEG (Tunisia)

* West Africa.1. NEPA (Nigeria)2. SOGEPE (Cote d’Ivoire)3. VRA (Ghana)4. SOGEM (Mali-Mauritania- Senegal)

* Central Africa1. SNEL (DRC)2. SEEG (Gabon)3. AES-SONEL (Cameroon)

* Southern Africa1. ESKOM (RSA)2. ENE (Angola)3. ZESCO (Zambia)

* Eastern Africa1. KenGen (Kenya)2. ELECTROGAZ (Rwanda)3. EEPCO (Ethiopia)

The following utilities have been elected as subregional Vice-Presidents of UPDEA :

1. North Africa : EEHC (Egypt)2. West Africa : SOGEM (Mali-Mauritania-Senegal)3. Central Africa : SNEL (DRC)4. Southern Africa : ZESCO (Zambia)5. Eastern Africa: KenGen (Kenya)


22

Appoints the VRA (Ghana) as President of UPDEA and President of the Executive Committee for the period of 2005-2008

2 ND RESOLUTION : 2005-2008 ACTIVITY PROGRAMME


Considering the new vision of UPDEA defined in year 2002 that UPDEA must be the primary catalyst for the realisation of access to electricity for all the peoples of Africa,

Considering the work accomplished by the Executive Committee and the General Secretariat in the framework of 2002-2005 activity programme in line with the new vision,

Considering that some actions implemented or started in the period of 2002-2005 deserve to be pursued in order to finalize them for the benefit of our member utilities,

Decides that for the 2005-2008 period, the UPDEA activities must be focused on 5 broad outlines, namely :

1. The subregional power pools coordination2. Rural electrification including cross-border electrification3. The databank of the African Power sector4. The African Electrotechnical Standardisation Commission5. The public image of the UPDEA

Requests from the Executive Committee, to put in place a plan of action containing the following main activities :

1. Subregional power pools

- Set up a forum for co-ordination and integration of activities of the African Power pools and coordinate its activities.

2. Rural Electrification including cross-border electrification

- Explore all possibilities of financing projects and inform the utilities concerned,- Organise meetings between the development partners and the power utilities concerned,

- Assist the promoters of the projects in accessing funds.

3. Databank of the African Power sector

- Start the system tests with the available data even if it’s not all utilities that have submitted information,

- Survey the best approaches, including outsourcing, to collect data from the utilities having problems in this area,

- Implement the databank by October 2005.


23

4. The African Electrotechnical Standardisation Commission (AFSEC)

- Participate in setting up AFSEC in close collaboration with the African Union And AFREC,- Produce a distribution standard to be adopted by the member utilities and endorsed by the Governments and national standards bureaus.

- Ensure a technical support and the necessary expertise to AFSEC.

5. Public image of the UPDEA

- Work in close collaboration with the African Union Commission in order for the UPDEA to be granted the status of specialised institution of the African Union

- Broaden the UPDEA to other utilities,

- Publish a UPDEA news bulletin using publishing agencies where necessary.

3RD RESOLUTION : VENUE AND THEME OF THE 16TH CONGRESS


Selects the city of Nairobi (Kenya) as host of the 16th Congress of UPDEA.

Requests from the Executive Committee to set the date and make the necessary arrangements for the organisation of the Congress in conjunction with the host utility, KenGen (Kenya).

Adopts the theme of the 16th Congress as follows: Good governance of national power sectors as a key factor for the realisation of access to electricity for all the peoples of Africa

4TH RESOLUTION : AUDITOR


Considering the 35th Ordinary General Assembly which met in Douala (Cameroon),has taken the decision of replacing the auditor of UPDEA,

Having screened the various applications and offers from the candidates, following the public advertisement for vacancy on the subject,

Has retained the services of Mr. TIEMELE YAO DJUE to be Auditor of the UPDEA for the period of 2005-2008.


24

5TH RESOLUTION : GENERAL AFFAIRS


Satisfied with the good turnout of African power utilities, affiliate members of UPDEA, international organisations and others in the 15th Congress of UPDEA,

Expresses its sincere thanks and congratulates the Executive Committee and General Secretariat of UPDEA for the quality of the job accomplished in the last three years which boosted the public image of the UNION in Africa and worldwide.

Encourages the Executive Committee and General Secretariat to pursue their endeavour in order to develop further the activities of the UNION.

Passed in Accra, 6th June 2005

THE GENERAL ASSEMBLY


25


26


27

€¦ · Web viewIn addition, the very limited power markets meant for the only national consumers do not allow these big projects to be profitable. ... continent’s power network

Documents