WEST AFRICAN POWER INDUSTRY WEST AFRICAN POWER INDUSTRY CONVENTION(WAPIC) CONVENTION(WAPIC)

AND AND METRING,BILLING AND CRM/CIS CONFERENCE METRING,BILLING AND CRM/CIS CONFERENCE

ABUJAABUJAJUNE 2004JUNE 2004

The Reform RelayThe Reform Relay

TRANSFORMATION TIME TRANSFORMATION TIME LINELINE

BACK GROUND

•Big PictureVisionExperienceConstraintsChallenges

FUTURE PICTURE(Focus On Engineering)

NEW APPROACH

CONCLUSION•Potential in Industry.•Processes•IT•Metering

Suggestions

2002 2005 2007

Why RCM ?

End of RCM Contract

Elections3 YEAR RCM CONTRACT( Focus On Marketing)

Phase I Phase II

Decision to Maintain status quoor privatize basedon 5 year performance

Why RCM ? Why RCM ? • To improve Marketing efficiency and To improve Marketing efficiency and

boost internally generated Revenue of boost internally generated Revenue of the Authority. the Authority.

• Improve Customer Services.Improve Customer Services.

• Introduce Best Practices. Introduce Best Practices.

BACKGROUNDBACKGROUND

3 YEAR RCM CONTRACT3 YEAR RCM CONTRACT

BIG PICTURE VISION

To become the leading Districts in To become the leading Districts in the provision of professional and the provision of professional and outstanding services to win loyal outstanding services to win loyal and committed customers for the and committed customers for the benefit of all stakeholders.benefit of all stakeholders.

3 YEAR RCM CONTRACT3 YEAR RCM CONTRACT(Cont.)(Cont.)

EXPIERENCE– Processing of applications for new Processing of applications for new

customerscustomers– Selection of appropriate meter technologySelection of appropriate meter technology– Capturing of new consumer applications.Capturing of new consumer applications.– Implement penalty on defaulters and Implement penalty on defaulters and

interest on overdue accounts.interest on overdue accounts.– Sales of electricity & debt collection mgtSales of electricity & debt collection mgt– Reduction of non-technical loss Reduction of non-technical loss

3 YEAR RCM CONTRACT3 YEAR RCM CONTRACT(Cont.)(Cont.)

EXPERIENCE EXPERIENCE (Cont.)(Cont.)– Customer services deliveryCustomer services delivery– Managing of billing systemManaging of billing system– Management Structure – Level of trust.Management Structure – Level of trust.– Meter supply and Demand gapMeter supply and Demand gap– Reliability of meter readings. Reliability of meter readings.

3 YEAR RCM CONTRACT3 YEAR RCM CONTRACT(Cont.)(Cont.)

CONSTRAINTS CONSTRAINTS • TrainingTraining

• IT SystemsIT Systems

• Generate additional Operational Funding Generate additional Operational Funding through the implementation of innovative through the implementation of innovative business approaches.business approaches.

• Procedures and Processes Procedures and Processes

• Metering.Metering.

3 YEAR RCM CONTRACT3 YEAR RCM CONTRACT(Cont.)(Cont.)

CHALLENGESCHALLENGES• Rural Electrification in IKORODU Rural Electrification in IKORODU

District.District.• Improvement of the quality and Improvement of the quality and

quantity of supply to meet the demand quantity of supply to meet the demand occasioned by the Industrial expansion. occasioned by the Industrial expansion. The implementation of reliable and The implementation of reliable and tamper proof metering system.tamper proof metering system.

• High level of illegal consumption.High level of illegal consumption.

3 YEAR RCM CONTRACT3 YEAR RCM CONTRACT(Cont.)(Cont.)

CHALLENGES (Cont)CHALLENGES (Cont)• Implement Field Billing (eg Hand Implement Field Billing (eg Hand

billing)billing)• Remote meteringRemote metering• Installing HT Meter panels for all Installing HT Meter panels for all

MD customersMD customers• Invest in operational tools and Invest in operational tools and

equipmentequipment

FUTURE PICTUREFUTURE PICTURE

• Potential in Industry.• Regain the gas and diesel market (Quality

and Quantity)

• ISO 2000• Become ISO 2000 compliant

• IT• Online Real time systems

• Metering• MD Remote metering

FUTURE PICTUREFUTURE PICTURE

SUGGESTIONS• Implement bulk metering to Non-

Maximum Demand customers in enclosed communities

• Install statistical meters on all 415 V transformers

TRANSFORMATION TIME TRANSFORMATION TIME LINELINE

BACK GROUND

•Big PictureVisionExperienceConstraintsChallenges

FUTURE PICTURE(Focus On Engineering)

NEW APPROACH

CONCLUSION•Potential in Industry.•Processes•IT•Metering

Suggestions

2002 2005 2007

Why RCM ?

End of RCM Contract

Elections3 YEAR RCM CONTRACT( Focus On Marketing)

Phase I Phase II

Decision to Maintain status quoor privatize basedon 5 year performance

NEW APPROACHNEW APPROACH

CONCLUSION After 5 years: Decision to Maintain status quo (NEPA) with the

extension of one of the options below:

1. Further Extension of RCM Contract 2. Concessions only in Identified

Selected areas 3. Franchise the Marketing section of Distribution

or

Full Privatization of the Distribution Business

Thank You.Thank You.QUESTIONSQUESTIONS

JAN VAN VREDENJAN VAN VREDENGLOBAL UTILITIES MANAGEMENT GLOBAL UTILITIES MANAGEMENT

COMPANYCOMPANY