the evolution of prepayment solutions … evolution of prepayment solutions to support loss...
Post on 15-Mar-2018
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Imraan Mohamed
Marketing Manager
Itron
South Africa
THE EVOLUTION OF
PREPAYMENT
SOLUTIONS TO
SUPPORT LOSS
MANAGEMENT
INITIATIVES
Challenges in Revenue
Management & Electricity Theft
In SSA
on average, Non
technical losses
estimated at 30%
In Sub Saharan Africa
(SSA), on average,
only 50% of electricity
generated is paid for. * Source: World Bank Report 2011.
Real World Challenges
Nobody, short of the CFO, has overall responsibility for the
combined losses number.
The process cuts a wide path though the organization, which requires
mature coordination.
Companies do not devote / do not have the necessary resources to
minimize losses.
Technology constraints in the field: network equipment,
communications infrastructure, interoperability, enclosures space, etc.
Data quality in the operational systems hampers progress
Requires accurate data between technical, CMS, billing and prepayment
A holistic view requires integration between multiple systems
Overcoming an entrenched culture of non-payment for services
Not understanding the role of staff and community awareness / Social
Marketing
So why doesn’t everyone have a Revenue Assurance program?
The Birth of Prepayment
Consume kWh-> Meter Read -> Process -> Bill ->
Receive Payment $
Disconnection/Reconnection
Receive Payment $ -> Consume kWh
Self Managed disconnection/reconnection
Initial Driver/Benefit for AMR
Revenue Management
Electricity Theft
Where Do the Losses Occur?
BACKOFFICE & POINT OF SALE
Software & IT: Lack of Controls
Poor Business Processors: Vendor
policy, Cash Management.
Unsecure H/W in the field (Vending
Security Modules, PC’s passwords)
NETWORK + METERS (NTL)
Illegal Network Connections
Installation Bypass
Meter Fraud.
TECHNICAL LOSSES (TL)
Revenue Management
Improvements
ON-LINE Prepayment Vending (>300K Consumer base)
Predominantly OFF-Line
NO Prepayment
Move to On-line Vending (STS) Remove Security Modules from the
field
Improved data quality due to centralised data management
Increased Revenue with lower cost base, + better customer service!
Upfront Payment by Vendors Reduced working capital due to
upfront funds
Improved revenue protection due to improved data availability and better cash & vendor management
ELECTRICITY THEFT
MITIGATIONS
METER FRAUD
Move to Split Metering
More anti tamper
features
INSTALLATION BYPASS
Split Metering
Secure Meter Kiosks
Migrate to “AMR”
Data Mining/Analysis
ILLEGAL
CONNECTIONS
Energy Balancing
Data
Mining/Analysis
STRONG BY-LAWS AND
PROSECUTION FOR THEFT
SPLIT METERING
MOVE FROM IN HOME METERS TO SPLIT METERING
• Consumer has unrestricted access to the
meter: potential for fraud
• Utility does not have free access to meter
(Tamper – only lights
circuit connected
through meter)
• Consumer has no direct access to the meter: lower
potential for fraud.
• Utility has unrestricted access to meter.
• MCU (meters) can be secured in vandal proof
enclosure
• Multiple MCU’s can be secured in a single enclosure
Split Meter Technologies
Wired Split Meter • Meter to CIU communication via
dedicated pilot wires
• Low risk of interference,
dedicated point to point
• Ideal for new installations
• Meter to CIU communication via
mains cable
• No additional cabling required for
meter installation – save on cost
of cable and labour time
• Overall cost of meter and
installation significantly reduced
• Ideal for retrofit installations
PLC Split Meter
Pavement Kiosk
4/8/12 way Pole Top Box
SECURE THE METER ENCLOSURE
• Secure the Meter
enclosure/Room.
• Security Controlled
and/or Remote Access
Control.
• Alarms sent when
unauthorised access
detected.
MAKING WHAT YOU HAVE SMARTER
Provide an add-on AMR capability for your STS
prepayment meters.
Enables advanced Revenue Assurance for Utilities.
Multiple meters connected via serial bus to a centralised
communicating device.
Add-on remote communication for split meter to extend
functionality.
Affordable alternative to full blown AMI/Smart metering
Solution.
Make Space Provision in
your Meters
boxes/Kiosks NOW for
communication
equipment that may be
installed later.
CENTRALISED METERING SYSTEM (CMS)
• CMS can provides direct feedback of individual meter
consumption, token acceptance and alarms.
• Compliments high end smart meter initiatives to get a full view of
losses on your meter installed base.
• Compliment Statistical Metering and Network loss management
Initiatives
• Used with Business Intelligence solutions to enhance knowledge
of field conditions and where losses are occurring
Data Warehouse
VENDING AMI/AMR
DB
BILLING
SYSTEM
KNOWLEDGE APPLICATION
• Financial view of technical and
non technical losses.
• Technical view of technical and
non technical losses.
• Identification and possible meter
tampering
• Identification of partial bypasses
• Identification of ghost vending
• Trigger of Targeted inspections
• Spatial view and drill down
capability
BENEFITS
In a typical utility, revenue assurance programs have the
potential to:
Reduce overall consumption while at the same time
increase revenue to the top line
Case studies show up to 15% decrease in consumption with
positive revenue growth
Revenue added is much higher margin than incremental sales
Increased revenue combined with lower supplier bills implies
more available cash for re-investment, and improved service
delivery
Improved network performance due to reduced load
Decreased energy demand on generating capacity
Sustainability of our planets water and energy resources
Why its worth it…….
Key Take-Aways
Losses (Financial and Technical) are significant challenges to
African utilities NTL + TLs
$Mill invested in Basic STS keypad based prepayment in Africa –
We can leverage on this.
Smart Metering has its place but not all your customer segments
qualify for and require a complex smart meter.
Upgrading basic prepayment to split metering and allowing a
migration path now to upgrade to an AMR type solution can
assist with identifying & curbing losses.
Solutions exists today and technology is an enabler to solve these
problems.
The solution is NOT in the meters or the technology, it lies in
the approach and the end to end solution.
There is no substitute for sound management and good business
processors.
THANK YOU
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