Presentation Plan

• INTRODUCTION

• NATIONAL ELECTRICITY NETWORK

• REVIEW OF ELECTRICITY OPERATIONS

• COMMERCIALISATION AND FINANCIAL SITUATION

•THE ROLE OF ELECTRICITY PREPAYMENT

Angolan Map

Introduction

Angola covers an area of 1,246,700 km2.

It borders the Republic of Congo and the DRC to the north, the DRC and Zambia to the east,

Namibia to the south and the Atlantic Ocean to the west.

Physiography varies from the lowland coastal areas, up to 300 m to an intermediate sub-

plateau zone and inland plateau with altitudes between 1,200 and 1,700m.

Cont.

Angolan population is estimated at 14 million inhabitants.

Social and economic conditions up to 2002 due to disruptions occurring during the transition period

from independence in 1975, followed by the implementation of inadequate macro-economic

policies.

This situation was aggravated by civil war, which resulted in a state of insecurity and destruction of

vital economic infrastructure.

Cont.

Cumulative inflation rate reached 1,838% in 1993, 3,784% in 1995 and 1,650% in 1996. Since 2003,

the social and economic situation has been improving slowly and a reduction of the inflation

rate to 34.01% was registered in 2004.

The electricity sector infrastructure is one of those that suffered the most from destruction during the

civil war.

Production and Transmission Rehabilitation Plan 1997

Uige

Luquixe

Hydro

GTG

G Diesel

Line 220kV

Line 100kVLine 60kV

Substation RT

Substationj.CH

Cabinda

Malongo

Cacongo

MabubasQuibaxe

Kifangondo

LuandaViana

Porto Amboim

Umbe

Gabela

Cambambe

N’Dalatando

Cacuso

Northern System

Malanje

Cunje

Kuito

CENTRAL SYSTEM

Production and Transmission Rehabilitation Plan 1997

Line 30kVG Diesel

Hydro

GTG

Line 150kV

Line 60kVSubstation RT

Substation CH

Baia farta

Chinguar

Benguela

Catumbela

Katchiungo

Quileva

Cavaco

Lobito

Huambo

Biópio (T)

Lomaum aaaumuum

A.Catumbela

Biópio (H)

Oral presentation layout

Substation H

.Hydro

.Hydraulic

Line 150KV

Line 60KV

Substation TGTG

G Diesel

Tchamutete

MatalaLubango

Namibe

Jamba

Tombwa

Saco

Gove

Production centres, such as hydro dams and thermal turbines, HV and MV transmission lines

and transformation points were partially or totally destroyed.

The Angolan Government is engaged in a large program of reconstruction and rehabilitation.

We believe that the large sums of money invested in reconstruction and rehabilitation should take advantage of the new, modern hi-tech options

Program of Reconstruction

National Electricity Network

About 93% of electricity production and consumption is from three independent systems:

● North System: 93%● Centre System: 5%● South System: 1.5%● Isolated Systems: 0.5%

Review of electricity operations

PRODUCTIONTotal installed capacity, including the Capanda

hydro plant, is 901.9 MW.

Only 69.2% (623.9 MW) is available.

Breakdown is:● 61.1% hydro (433.1 MW)● 38.9% thermal (190.85 MW)

Transmission/distribution

ENE has 2,118 km of transmission and distribution lines –53.1% (1124.65 km) available.

MV operating voltages are 6.3, 6.6, 15 kV.

More than 54% of substations need to be rehabilitated, expanded or modernised

Distribution network is almost 30 years old and no longer able to cope with increase in demand. Consequently the operation and distribution

charges are very high.

EDEL

EDEL receives power from ENE through the 60 kV HV network at the Cuca, Golf and Zango

substations.

EDEL has 6 substations with capacity 330 MVA.

EDEL’s primary network is a 15 kV MV and includes 20 distribution points. There are 837

transformation points, of which 440 are public and 397 private.

Line60kV(km)

15kV(km)

0.4kV(km)

Air 2 42

Underground 23 382.4

Total 25 424.4 2180

EDEL NETWORK EXTENSION

Highest peak reached by EDEL is 182 MW, registered 22 December 2003 at 20 hours.

Line extensions are as follows:

Failures

Year Failures of network

60kV 15kV 0.4kV Total

2001 7 289 2839 3135

2002 11 273 3763 4047

2003 13 245 3630 3888

Main causes of failure, especially LV, are● cables and equipment due to illegal, unauthorised connections● inadequate supply in high populated areas and newly emerging suburban zones

ACTIVITY 2002 2003 2004

Total power supply (GWh) 1781 1997 2243

Supply from NamPower 6.4 7.2 8.3

Total power billed (GWh) 1345.1 1541.9 1636

Power billed to EDEL (GWh) 919.89 978.9 1353

Power billed to EDEL/total (%) 68.39 63.49 82.7

Indices of Power billed/paid from EDEL (%) 33.7 21.8

Power billed to other clients(GWh) 425.2 563.04

Indices of billed /paid from others customers (%) 59.4 63.8

ENE has 110,801 customers (835 in Luanda).The situation was as follows:

Commercialisation and Financial Situation

ENE not able to bill all the power it produces - commercial losses were 38% in 2004.

Edel

EDEL covers 7 of 9 municipalities of Luanda – coverage about 9% of the settled area and 111,131 clients.

If the average family size is 6 and the total population of Luanda 4.5 million, then 15% of Luanda population are legally serviced by EDEL. The number of illegal connections is estimated at 40,000 to 50,000.

Commercial Situation 2004

Number of Customers112,378

Meters out of service 5,289

Customers without metering 33,865

Power received (GWh) 1,103.99

Power sales (GWh) 768.10

Commercial losses (GWh) 170.25

Rate of metering done (%) 55

Rate of estimated metering (%) 45

Installed pre-payment Meters 0

Nr.of main public institution Debtors 10

Total debt to EDEL (million USD) > 20

Customers satisfied 89,092

Unsatisfied customers 22,476

Commercial Situation 2004

It is obvious that EDEL has major difficulties in undertaking the metering of consumption.

Accumulated debt of EDEL to ENE up to 2004 is estimated at Kz5549 97 million

(USD61.6 million).

The Role of Electricity Prepayment

ENE has more than one reason to think of installing a prepaid metering system.

For ENE to become viable, the basic principle has to be institutionalised that:

Power supplied must be paid for.

EDEL must find ways to come up with the debt and ENE can assist by forcing EDEL through the

installation of prepayment meters in EDEL’s three reception substations.

Cont.

ENE could do the same for all the big consumers, i.e. factories, public illumination, etc., which are

directly supplied by ENE.

On the other hand, EDEL can’t become viable if it is unable to meter, bill and collect the money from

the consumers. The tariff is irrelevant if the payment issue is not solved.

Installing prepayment meters to all big consumers, both private and public, will assist with starting the

process.

Cont.

Up to now, there has been little incentive for ENE and EDEL to show interest in launching appropriate conservation initiatives. Given the normalisation of the political situation and the cut off of government subventions, ENE and EDEL will soon have to bring about effective billing and collection of electricity charges and later on the reduction of commercial losses.

Conclusion

Opting for prepayment metering will enable both ENE and EDEL to emerge from their unfavourable financial predicaments.

In addition prepayment metering will enable EDEL to bring about effective reduction of technical losses through modernisation of the distribution network.

Thank you

Questions?