iurpa july 2003 iurpa - october/2001 revenue protection in brazil some information, few certanties...

IURPA - OCTOBER/2001

IURPA JULY 2003

REVENUE PROTECTION IN BRAZIL

SOME INFORMATION,

FEW CERTANTIES AND MANY

DOUBTS


IURPA JULY 2003

IntroduçãoInforme o motivo da discussãoIdentifique-se

BRAZIL OVERVIEW

8,500,000 SQUARE KILOMETERS

62 ELECTRIC UTILITIES

ONLY 5 ARE NOT PRIVATIZED

AROUND 180 MILLION INHABITANTS

AROUND 53 MILLION CUSTOMERS


IURPA JULY 2003

BRAZILIAN ELECTRIC GRID SYSTEM

WE USE ABOUT 13% OF THE TOTAL

ENERGY USED IN THE U.S.A.

95% OF OUR ELECTRIC ENERGY COMES

FROM HYDROELETRIC POWER PLANTS

OUR NATIONAL ELECTRIC SYSTEM IS

INTEGRATED


IURPA JULY 2003

NON-TECHNICAL LOSSES

TOTAL (TECHNICAL AND NON-TECHNICAL) LOSSES:

BRAZIL AVERAGE 20%

NON-TECHNICAL LOSSES:

FROM ABOUT 0.5% UP TO 30% (DEPENDING ON THE UTILITY)

TOTAL NON-TECHNICAL LOSSES:

2.1 BILLION US$ / YEAR


IURPA JULY 2003

SINCE 2001 THE NON TECHNICAL LOSSES ARE INCREASING

MAIN CAUSES

ELECTRICITY RATIONING PERIOD (RULES TO DECREASE CONSUPTION) - FROM JUNE 2001 TO APRIL 2002

GENERAL ECONOMIC PROBLEMS

TARIFFS ARE INCREASING (CURRENTLY

AROUND U$S 150.00 PER MWh)


IURPA JULY 2003

WHY UTILITIES ARE FAILING

THEY WANT VERY EFFECTIVE RESULTS WITHIN A SHORT PERIOD OF TIME

THEY GO IN ONE DIRECTION ONE YEAR BUT CHANGE IT (18O DEGREES) THE NEXT YEAR

MOST PRIVATIZED UTILITIES HAVE IMPLEMENTED STRONG DOWN SIZING ACTIONS


IURPA JULY 2003

WHY UTILITIES ARE FAILING

THE NEW EMPLOYEES DO NOT HAVE STRONG LINKS WITH THE UTILITY

THEY DO NOT INVEST IN TECHNOLOGY (RESULTS DO NOT COME FAST ENOUGH)


IURPA JULY 2003

SOME CHALLENGES

MANY PEOPLE ARE SELLING FRAUDULENT SERVICES (FORMER UTILITY EMPLOYEES?)

FRAUDS ARE VERY WELL PLANNED AND EXECUTED

FRAUDS USING STOLEN (OR BOUGHT) SEALS FROM UTILITIES


IURPA JULY 2003

SOME CHALLENGES

FRAUDS INVOLVING ELECTRONIC METERS


IURPA JULY 2003

RELEVANT INFORMATION

STOLEN SEALS

NETWORKING INVOLVING EMPLOYEES

“SPECIAL SERVICES” TO OPTIMIZE INTERNAL INSTALLATIONS

INSTALLATION INCREASED CONSUPTION BY 20% AT THE SAME TIME THE FRAUD WAS IMPLEMENTED

FIXER IS A “GHOST”


IURPA JULY 2003


IURPA JULY 2003

MORE CHALENGES

OUR NATIONAL REGULATORY BUREAU OF

ELECTRICITY - ANEEL - IS ESTABLISHING A

DECREASING LEVEL PROFILE FOR NON

TECHNICAL LOSSES FOR EACH COMPANY

ABOVE THIS NEW LEVEL UTILITIES CAN NOT CONSIDER NON TECHNICAL LOSSES AS A COST


IURPA JULY 2003

THIS MEASURE WILL STOP THE SNOW BALL EFFECT: LOSSES BECOMING COSTS - UNFAIR FOR GOOD CLIENTS

THEREFORE, RP AREAS MUST BECOME MORE EFFICIENT IN ORDER TO GET THE EXPECTED RESULTS

MORE CHALENGES


IURPA JULY 2003

MORE THAN A REVENUE PROTECTION MEASURE, IT IS A

WAY TO IMPROVE THE RATIONAL USE OF ELECTRICITY

A POSITIVE VIEW OF THIS MEASURE


IURPA JULY 2003

LET’S TALK ABOUT SOME CERTANTIES AND DOUBTS


IURPA JULY 2003

COMPARING LOSSES FROM DIFFERENT UTILITIES

FIRST STEP: MAKE THE ENERGY BALANCE

TOTAL ENERGY PRODUCED AND BOUGHT -

TOTAL ENERGY SOLD = TOTAL LOSSES

TOTAL LOSSES - TECHNICAL LOSSES = NON

TECHNICAL LOSSES


IURPA JULY 2003

COMPARING LOSSES FROM DIFFERENT UTILITIES

SECOND STEP: TAKE THE NECESSARY CARE

WE NEED TO ASK ABOUT THE METHODOLOGY USED TO CALCULATE (AND/OR MEASURE) TECHNICAL LOSSES, CONSIDERING: AREA COVERED, RURAL AREAS COVERED, VOLTAGE AND LENGTH OF LINES , QUANTITY OF DISTRIBUTION TRANSFORMERS AND OTHER VARIABLES


IURPA JULY 2003

CONSIDERING ALL THESE FACTORS, FOR A

GIVEN UTILITY 8% CAN BE A BETTER

RESULT THAN 5% FOR ANOTHER ONE

TECHNICAL LOSSES


IURPA JULY 2003

WE CAN COMPARE. BUT ARE THE NUMBERS RELIABLE??? (THEY DEPEND ON THE WAY WE CALCULATE THE TECHNICAL ONES)

THERE ARE LOSSES THAT DO NOT APPEAR IN THE ENERGY BALANCE!!!

THE NON TECHNICAL LOSSES PROFILE OVER THE YEARS IS MORE SIGNIFICANT THAN THE NUMBER FOR EACH YEAR = TREND

NON TECHNICAL LOSSES


IURPA JULY 2003

MAYBE THIS IS A POINT THAT DESERVES IURPA’S ATTENTION

WE NEED TO HAVE SOME STANDARDS IN ORDER TO COMPARE NUMBERS FROM

DIFFERENT UTILITIES


IURPA JULY 2003

0

5

10

15

20

25

TOTAL LOSSES

CEMIG X BRAZIL AVERAGE%

YEAR


IURPA JULY 2003

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

1

1996 1997 1998 1999 2000 2001 2002

0,90%

0,49% 0,45%

0,29% 0,26%

0,51% 0,53%

NON TECHNICAL LOSSES AT CEMIG


IURPA JULY 2003

“SETTING UP” FIXERS

THE ONLY DEVICE WE NEED IS

A VIDEO CAMERA PROPERLY

INSTALLED IN A HOUSE


IURPA JULY 2003

THANK YOU FOR YOUR ATTENTION

LUIZ FERNANDO ARRUDA

TEL 00 55 31 33295520

FAX 00 55 31 33295279

[email protected]

http://www.cemig.com.br

iurpa july 2003 iurpa - october/2001 revenue protection in brazil some information, few certanties...

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