cleve l. freeman – los angeles, ca usa energy loss reduction programs & profits, rio de...
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Cleve L. Freeman – Los Angeles, CA USA
Energy Loss Reduction Programs & Profits
Rio de Janeiro, , Brazil 11 – 13 August 2004
Background Information
System Losses - a major operational challenge
Electricity theft - profound impact on the bottom line
Our focus – loss reduction programs in Latin America
Non-technical losses - within a company’s control?
1. Poor Installations 2. Improper account set-up
Non-technical losses - outside the company’s control?
1. Illegal connections 2. Defective equipment
The purpose of this exercise is to explore:
Share knowledge and learn from each other
Incite thought as well as controversy
Discussion (the what-where-when-why-who & how)
Viable usable solutions for successful programs
• What Unauthorized Usage
• Where Residential - Commercial - Industrial
• When Right now, even as I speak
• Why Needy - Greedy - Ego -?????
• Who The Rich - The Poor - Government Officials - Businessmen
• How Install By-passes - Meter Tampering - Fraud - Errors, etc…
Factors that encourage electricity theft
Social and economic conditions
Unemployment breeds a high crime rate
Ineffective Law Enforcement - low to no penalty
Unsecured access to meter facilities
Direct connects (no meters available)
Dishonest field Investigators and contractors
Deficient record keeping & weak audit procedures
Unsealed meters
Energy Loss Reduction Program
Purpose & Responsibilities
SAFETY FIRST
PreventionDetectionInvestigationCorrectionRestitutionProsecution
Seal and lock appropriate meter facilities
Warning tags
Public awareness
Employee training
Company policy
PREVENTION
“All employees are responsible for prevention”
Detection of Energy Theft
Employees (field and office)
Law Enforcement (Municipal code enforcers, etc)
Other Utilities (electric, gas, water, phone, cable)
General Public (neighbors, business owners, etc)
“All employees are responsible for detection”
Energy Loss Reduction Program
Create a written document of policy & procedures
Energy Loss Reduction Program - support staff Clerical, investigators, billing dept, collections, metering & service dept
Mission, definitions, laws, evidence chain, guidelines, contacts
Revenue protection equipment(Computers, digital cameras, vehicles, field tools, etc.)
Attend Revenue Protection ConferencesLatin America Revenue Protection Association, IURPA, etc.
WHO - WHY - WHEN - WHERE - WHAT - HOW Identify target * research * take action
Energy Loss Reduction Programs
(Revenue Protection)
“Key Participants”
Inform, provide solutions, statistical reports, bottom line-money
Inform, train tInform, train to detect theft, feedback, incentives, educate detect theft, feedback, incentives, educate
Safety issues related to energy theft-Safety issues related to energy theft-(meetings: what to look for and who to call)(meetings: what to look for and who to call)
Implement Implement regulatory tariffs to support your recovery efforts tariffs to support your recovery efforts
Senior Senior Management
Employees
General Public Public
Government Regulation Regulation
Law Law EnforcementMake initial contact, educate, network, volunteer, cooperate
Solutions to combating energy theft
Comprehensive Revenue Protection Program
Social - Economical - Training - Marketing - Legal
Technology (theft detectors, remote monitors, etc.)
AMR * Computer Profiling * Pre-pay * Locking Seals
Participate in Revenue Protection Conferences International Utilities Revenue Protection Association South
American Utility Theft Association
Sr. Mgmt. understanding the benefit: Safety & Revenue
SUMMARY
Energy theft / non technical losses are costing utilities $$$ millions of dollars
Everyone pays for energy theft and non technical losses: especially the honest customers!
To combat energy theft & related non-technical losses:
“Implement Energy Loss Reduction Programs”
The five fundamental objectives are:
PREVENT*DETECT*INVESTIGATE*CORRECT*RESTITUTION
