sector reform and utility commercialization (sruc) …

SECTOR REFORM AND UTILITY COMMERCIALIZATION (SRUC) TASK ORDER (TO) Support to Papua New Guinea Power Limited (PPL) on Meter Management, Billing, and Collections Component 2 ANEX 3

1

SRUC TASK ORDER (TO):

Support to Papua New Guinea Power Limited

(PPL) on Data Management, Metering, and

Customer Engagement

Component 2: Interim Activities on Meter Management, Billing, and Collections to Improve PPL’s Financial Position and Operational Viability

Deliverable 2.1.2 Training – Leading Practices for Manual Collection of Meter Information to Improve Billing Accuracy

2

Introduction: Data Capture, Billing and Collection

• Welcome and Admin

• Introduction of the participants

• Signing the attendance list

• Approach to Training

• Overview of Training Course

3

TRAINING APPROACH:

• Build on previous SRUC work

• Assume data integrity is intact

• Revisit high level drivers and technology disruptors to get context

• Leading Practices and Application: Data Capture, Billing and Collection

• Short term, low cost initiatives

• Interactive Sessions comprising (participation encouraged)

– Content

• Context

• Options

• Leading practices

• PPL relevance

– Application

• Business Case or

• Case Study and/or

• Practical application to PPL


• Day 1:

– Technology drivers of meter data capture, reading and collection and to

look at meter configuration and metering point data collection options.

– Best practice meter reading options and the practical application for PPL

will be workshopped.

• Day 2:

– The importance of the in-the-field meter reading activities.

– The role that meter readers and digital technology can play in improving

efficiency and reducing costs.

• Day 3:

– An interactive session exploring the application for PPL.

10/6/2020 FOOTER GOES HERE 4

Training Objective

5

TRAINING OVERVIEW:

• Day 1

– Session-1: Drivers and Technology

Disruptors

– Session-2: Meter Configuration

Data

– Session-3: Meter Reading Options

– Session-4: HHU Business Case

– Session-5: Discussion PPL

Application

• Day 2

– Session-6: Importance of the

Meter Reader

– Session-7: Cloud Based HHU

Solutions

– Session-8: Discussion and PPL

Application

• Day 3

– Attend items from previous days

– Session-9: Billing and Collection

Options

– Session-10: KPLC Case study

– Session-11: Discussion and PPL

Application

– Wrap up.


TECHNOLOGY DRIVERS


7

CONTEXT:

Relevant drivers for short term data capture, billing and collection initiatives

Session 1: Technology Drivers

Resu

lts

Dig

italizati

on

Dri

vers

an

d

Eff

ects

Smart Grid, OMS, DSM

AMI, Smart Meters, GIS

Cloud, Big Data, AI &

Analytics, Enterprise

Service Bus

GSM/GPRS/3G

Mobile devices

Bluetooth, Wi-Fi

Private APN, VPN

RF mesh, PLC

Connected

Informed

Demanding

Choices

Import/Export

DSM, Renewables

Cost, Loss Reduction

Regulatory

Environment

Technology Enablers

Proliferation of

Leading Edge

Technologies

Low Cost

Communications

Rise of the Consumer

(Prosumer)

Focus on Energy

Efficiency

Real time data

Smart meter data

Data integrity

Data governance

Cyber security

New skills

New Tools

Integration

Generalists

Empowered

Culture Shift

Data Explosion

Tighter coupling of

applications

System interfaces

Integration

8

CONTEXT:

Relevant drivers for short term data capture, billing and collection initiatives

Session 1: Technology Drivers

• 2-way comms

• In field tariff support

• Alarms and alerts

• DSM

• PPM

•Loss Reduction

• Energy Balancing

• Billing

• E-Billing

• Customer Messaging

• Field Operations

• Workflow Management


• Customer Service

• Predictive Analysis

• Aggregated reports

• Real-Time Information

• Accurate, targeted results

• Mobile Field Tools

• Asset Management

• Loss Reduction


• Network mapping

GISData

Analytics

Smart Meters

CRM

Billing

OM

9

Questions and Discussion:

Session 1: Drivers and Technology Disruptors

METER CONFIGURATION DATA


11

CONVENTIONAL ANALOGUE METERS:

• Meter information:

» Meter type

» Meter Class

» Meter number

» Wiring Configuration (phase/wire)

» CT ratio

» VT ratio

» Meter Seals

» Install date

Session 2: Meter Configuration Data

12

DIGITAL METERS:

• Meter information:

• Meter type

• Meter Class

• Meter number

• Wiring Configuration (phase/wire)

• CT ratio

• VT ratio

• Meter Seals

• Install date

• Meter programming information– Display sequence

– Primary/secondary values

– Communications interfaces


13


14

METER POINT AUDIT:

• Equivalent of Customer Data Survey for Metering Point:

» Accuracy of Entire Metering point including:

» Wiring

» CT and VT ratios, ratings, wiring, connections and polarity

» Availability and wiring of test blocks

» Integrity of Meter Seals and seal serial numbers

» Verification of Meter type

» Verification of programming information

» Communications Options for meters

• Check against Gentrack Data

• Best practices

– Metering point audit Policy/Procedure

– Certified Portable test equipment for accuracy checks

– CT burden check

– Extensive training and certification of Technical Audit team

– Involve Revenue Protection teams in cases of suspected

bypassing/tampering

– Consider Outsourcing Initial Audits


Field meter test kit

Field current injection kit

15

Questions and Discussion:

Note: Meter point audits will be covered in detail in the activity

dealing with loss reduction.


METER READING OPTIONS


17

The Meter to bill cycle:

Session 3: Meter Reading Options

Itinerary from Billing system

Route optimization

Route allocation

Publish route

Read meters

Import readings to

billing systemVEE

Exception management

Final reads

Publish bill

Deliver bill

18

READING OPTIONS:

• Manual

– Paper-based by Meter Reader

– Reading captured on HHU by Meter Reader

– Reading captured by HHU automatically using OCR algorithm

– Reading captured by Meter reader via physical digital interface or drive by “AMR”

– Reading sent by Customer telephonically IVR/ operator, SMS, Email, web or mobile APP.


19

READING OPTIONS:

• Semi-Automated

– Reading captured by Meter reader via physical digital interface or drive by “AMR”

– Meter Configuration App collects reading using “AMR” (Easiview, Map100, etc)

• Automatic

– AMR/AMI (PPL RFP to be launched soon: Out of Scope for this activity)


Typical AMI

System

Drive by

reading

MAP

software

20

TYPES OF READINGS:

• Interval Readings

– Interval measuring components are measured at predictable intervals such as every 15

minutes or every 30 minutes, etc

– They are consumptive in nature.

• Scalar Readings

– Scalar measuring components are measured at unpredictable and inconsistent intervals.

– They are absolute values considered to be subtractive.


21

BEST PRACTICES IN MANUAL METER READING: (Not AMR/AMI)

• Reading Frequency

– Minimum frequency Monthly, perhaps weekly for LPUs and VIP customers

– Include inactive accounts in reading schedule

– On Demand reads and Spot Billing. (Avoid Spot Collection – India experience)

• Routes

– Update routes in real time in CIS (in standalone Cloud based HHU solution if CIS functionality/data is suspect (up to 20% efficiency gain in re-routing)

– Rotate routes, but not too often. Trade off: efficiency vs potential collusion. Also backup for vacation, illness and staff turnover.

• Previous Readings

– Not on printed sheets or visible in HHU (hidden in HHU for onsite VEE)

• Onsite VEE (HHU)

– Set reasonable range for consumption

– Adjust for seasonality

– Don’t reject reading, rather flag it.

• Integration with GIS/Workflow/Asset Management (see session 7)


HHU BUSINESS CASE


23

Session 4: HHU Business Case

24

COST BENEFIT ANALYSIS:


25

PROPOSED OFF THE SHELF SOLUTION

• Efficient collection of meter readings

– Time / Date stamped Readings

– Onsite Validation

– GPRS Configured: Location Stamped

• Managing Mobile Workforce

– GPRS Configured: Location Stamped

– Real Time Supervisory Oversight / Reporting

– Time stamped – Reading Capture Flow

• Improve Business Efficiency

– Lower cost of meter reading process

– Customer Service improvement – reduced customer complaints


26

EAST AFRICAN UTILITY OF SIMILAR

SIZE TO PPL:

• Consistently high Losses due to:

– Poor Quality Reading

– Low Productivity of Meter Reading

workforce

– Collusion between Customers and Meter

Readers

– Timeliness in process

– Inaccuracies in Database


27

EAST AFRICAN UTILITY OF SIMILAR SIZE TO PPL:

The opportunity is to address the above issues with Hand Held Sets (HHS) through:

Better Quality:

❑Validation on sight (Quality, Quantity and timeliness-Cost)

❑Aiding in the data clean up process

Productivity (Quantity/Timeliness):

❑Managing a mobile workforce

❑ Ease Meter/Customer location.

❑ Easy optimisation of reading routes.


28

EAST AFRICAN UTILITY OF SIMILAR SIZE TO PPL:

• HUU shall support return of domestic and ToU readings.

• The system shall support current corporate Strategy:

– Reduce losses

– Improved Customer Service – Accuracy

– Revenue Cycle Shortened

– Increased business efficiency

– Learning curve and preparation for PPM and AMR Projects

– AMR for Large Industrial and Commercial customers within 24 months

– PPM for Domestic and Commercial customers within 18 months


29

IMPLEMENTATION

• Pilot Project

– 28,000 customers (Residential, Commercial and Industrial)

– Utility: IT Hardware and GPRS infrastructure

– Vendor: Software, training and rugged HHU devices

– Implementation period - 6 months

• Pilot Project Team

– Regional Manager: Project Sponsor

– Metering Services Manager: Project Manager and Team Lead

– Billing Manager: Team Member

– District Manager: Team Member and Coordination

– IT Software Development Manager: Team Member


DISCUSSION AND PPL

APPLICATION


31

DISCUSSION

– Meter Configuration

– Meter Reading

– HHU business Case

Session 5: PPL Application

1




Customer Engagement



2


• Welcome and Remarks


• Day 2 Programme and Planning:

– Session-6: Importance of the Meter Reader

– Session-7: Meter Reading Best Practices

– Session-8 Cloud Based HHU Solutions

– Session-9: Discussion and PPL Application

3

OBJECTIVES DAY 2:

• Session-6: Importance of the Meter Reader

– Identify the roles of the meter reader

– Identify the importance of the meter reader

– Empowering Meter readers

• Session-7: Meter Reading Best Practices

– Best Practices in the Field

– Understanding and Establishing Benchmark criteria

– Setting KPI’s

– Measuring against Benchmarks

• Session 8: Integrated HHU Solutions

– Rationale for their use

– Features and Synergies

– Understand the Implementation pricing models

– Review benefits and advantages

• Session-9: Discussion and PPL Application


THE IMPORTANCE OF THE METER

READER


5

HISTORICAL VIEW OF THE METER READER

• Meter Reader is an entry level position in the utility

– Low expectations, low pay, high turnover

– Lack of understanding of utility business processes and very little training

• However, in some utilities it is a most sought-after position

– No demands due to under the tree readings

– Opportunities to significantly supplement income

MULTAN: A low-grade staffer of Multan Electric Power Company (Mepco) turned out to be a millionaire during an investigation of the Federal Investigation Agency (FIA) as he possessed a balance of more than Rs10 million in only one bank account, ARY News (https://arynews.tv/en/mepco-meter-reader-millionaire-properties-fia/).

Session 6: The Importance of the Meter Reader

6

ROLE OF METER READER

• The Meter reader is critically important to the utility because:

– Often the Meter reader interfaces with the Customer more than anybody else in the utility.

– He is often the only person who sees the metering installation.

– His actions during the reading process significantly affects the financial position of the utility

– The Meter reader can therefore be considered to take on the following roles:

• Public Relations Officer

• Revenue Management Officer

• Safety Officer

• Intelligence gatherer


7

DIGITAL WORKFORCE IMPLICATIONS

• It is critical for Meter Readers who visit Large Power Users to understand their roles

and to receive training in basic IT, metering, tariff management and customer service.

• Meter readers justifiably feel that their jobs are threatened by the prospect of AMR and

AMI projects. Management needs to adopt a proactive strategy to address these fears.

• Equip Meter Readers and provide incentives for identifying revenue leaks.


METER READING BEST PRACTICES


9

BEST PRACTICES IN THE FIELD

• Use HHU

• No Previous Readings

• Consistency in Reading Cycles with frequent Route Rotation

• Incentivize Meter Readers

• Leverage GIS

• Integrate with Revenue Management

• In Field Data Cleansing

– Metering

– GIS

– VEE

Session 7: Meter Reading Best Practices

10

METER READING BENCHMARKS

• Incentives and Awards: (38% of respondents offered incentives)

– Cash incentives

– Formal/ Informal recognition

– Make incentives fair and involve Meter readers in the process


Source: Meter Reading Profiles Best Practices Ascent Group 2016

11

METER READER PERFORMANCE

• Leading Performance Measures

– Cost per read (excluding capex)

– % errors per month

– % readings skipped

– Meters read per FTE (per/month)

– Field Audits



12

METER READING COST BENCHMARKS



INTEGRATED HHU SOLUTIONS


14

INTRO

• Low Cost, rapid deployment

• Decoupled from CIS

• Leverage digital revolution

• Stepping-stone towards and integration with AMR/AMI

• Significant advance on Manufacturer Configuration/reading Software tools.

– Interim small scale RMR to reduce manual meter reading and on-site billing:

– For selected customers: high consumption, difficult to access, suspicious activity…

– Add a modem (EM1000 and EM5300 support RS232 and have option for RS485) supports

RS232

– Use the manufacturer’s meter programming software (EMPWin/MAP for L+G meters) to

collect meter readings remotely

Session 8: Integrated HHU Solutions

15

FEATURES

• Import and optimize routes

• Data Cleansing

• GIS Mapping, coding and ringfencing

• Digital imaging

• OCR readings/manual readings/Optical port/driveby

• Dashboards

• Messaging features

• Online/offline modes

• Mobile and Web capable

• Secure Cloud based backup

• Works order Management options

• Tracks reader movement and performance

• Multiple Suppliers with large footprints in Africa, Asia, Pacific, Europe and USA.


16

COMMUNICATIONS & INTERFACES

• Communication Support

– GPRS

– 3G/4G/5G

– HSDPA

– WiFi (Ethernet)

• Interfaces

– Web interface for customer & utility

– API & web services interfaces to CIS, and other systems

– Ability to print in the field bills based on up to date (real-time information)

• Secure hosting: Onsite/AWS/Azure


17

GIS FEATURES

• Plot metering points on a map

• Manage Meter Reader Productivity

• Meter Location Zone to ensure Readings

• Optimize Route planning,

• Workflow/service order optimization for

dispatching technicians to site

• Mapping

– Google maps

– Customized cadastral Imports

Session 8 Integrated HHU Solutions

18

COSTS

• Licenses

– Per month

– Per read

– Outright purchase

– Contract Service

• Customization

– Ranges from Inclusive to Hourly rate ($100 -$150)

• Training Including T&S

• Support

• HHU hardware ($300 – $3000)

• Typical all-in cost $0.50 per meter per month over a 3-year period.

Session 8: Integrated HHU solutions

19

BENEFITS AND ADVANTAGES:

• Advanced reporting

• Automatic updates

• Secure Access

• Audit functionality

• Onsite VEE with ability to display or

obscure previous readings

• On site bill printing


• Data Audit and Inspection functionality

• Rapid deployment and ease of customization

• Mapping

• Real-time Management of Exceptions

• Configurable options for photos and notes based on easy to set business rules

20

APPS AND DEVICES

• Mobile App:

– Imaging, reading, billing GIS

– Customer Dashboard

– dispatch, works order (installation and site

works)

– Electronic signing

– location recording and real-time activity tracking


• Handheld devices/GIS devices:

– Imaging, reading and billing

– Electronic signing

– dispatch, works order (installation and site works)

– location recording and real-time activity tracking

– Auditing

21

TYPICAL RESULTS

(Rural Cooperative in Florida)

• Increased reading completion rated by 25%

• Misreads decreased by 60%

• Skipped reads reduced by 50%

(Israel)

• Extensive customization/ bespoke system

• CRM, Billing and 30 interfaces to Smart and legacy meters

• 15-week implementation

• Real-time billing and invoicing, 2 faulty reads per month


DISCUSSION AND PPL

APPLICATION


23

• DISCUSSION

– Importance of the Meter Reader

– Cloud Based HHU Solutions

– Questions and answers

Session 9 Discussion and PPL Application

1




Customer Engagement



2


• Welcome and Remarks


• Day 2 Programme and Planning:

– Attend items from previous days

– Session-9: Billing and Collection Options

– Session-10: KPLC Case study

– Session-11: Discussion and PPL Application

– Wrap up

3


OBJECTIVES DAY 3:

• Attend items from previous days

– Consolidate previous knowledge

– Attend to unfinished business

• Session-10: Billing and Collection Options

– Examine billing and collection options

– Discuss billing frequency and presentation

– Discuss Best practices

• Session-11: KPLC Case study

– Integrated Case study illustrating the application of the training

• Session-12: Discussion and PPL Application

• Wrap up

BILLING AND COLLECTION


5

Billing Frequency

• Annual bills (USA/UK)

• Quarterly bills with monthly estimates (India)

• Monthly bills (Default)

• Bi-weekly or weekly (LPU, special tariffs)

• Realtime/Spot billing (Africa, Europe)

Session 10: Billing and Collection

6

Bill Presentation

• Paper Bills

– Clear, easy to understand layout

– Personalized correspondence

– Provide additional marketing and PR material

with paper bill

– Important messages printed on actual bill

• Web bills

– Exactly same as paper Bills

– Provide secure access

• Mobile Bills

• E-mail bills


Two critical E-bill lessons from City Power

1. Privacy

• Customer data is private

• Secure registration as a user is

critical

2. Cyber Security

• DR, Backup and Archiving add

value

• Ransomeware to unlock billing

resulted 2-4 week delay in

delivering bills

EB

PP

7

Bill collection KPIs


Deliverable KPI - Bill Collection Target

Current collection – Industrial % previous month’s total billed amount

(within the system specified due date)

97%

Current collection – General

supply

% previous month’s total billed amount

(within the system specified due date)

97%

Arrear collection – Industrial % total arrear amount (every billing cycle) > 65%

Arrear collection – General supply % total arrears amount (every billing cycle) > 65%

6-month rolling average collection

– Industrial

Rolling average 100%

6-month rolling average collection

– General supply

Rolling average 100%

8

Meter Reading and Billing KPIs


Deliverable KPI - Meter Reading and Billing Target

Actual meter reading –

Industrial

% meter readings (within the system specified

reading date)

100%

Actual meter reading –

General supply

% meter readings (within the system specified

reading date)

100%

Actual meter reading

submitted for billing

% submitted for billing + 2 days after the system

specified reading date

99%

Estimated meter readings % meter readings 1%

Bill delivered % delivered + 2 days from bill date 100%

9

EBPP

• The internet provides opportunities to present bills to customers independent of the type of meter a customer has installed

• Web based bills

– Customer must visit site and log in

– Bill should have same look and feel

– Bill must be secure and meet requirements for Tax invoice and E-bills.

– Well supported internationally 2008 <2% in USA to >70% 2019


10

EBPP

• E-mail based bills and statements.

– Identical to paper bill

– Customer receives email

– Payment link

– No spam “talk”

– Identify individual invoices uniquely

– Convenience and Simplicity is the key

• Other Payment Options

– Banks (walk-in, debit order)

– Utility Offices (cash, credit card)

– Internet, Mobile money

– NB make payment reference requirements very clear for all payment channels


11

EBPP BENEFITS

• Online Payment Processing: fast, simple, and flexible. Seamless integration of payment data with billing system is essential, for control and reconciliation.

• Account Management. Service-oriented EBPP solutions use the web to simplify account management tasks. Provide e-bills and e-Statements

• Online Communication with Customers: trackability to allow actionable profile of customer and staff interaction.

• Search Tool: historical access to statements, payments, and profiles

• EBPP Reporting and data updates.

• Role Administration: Segmenting customer service representatives by access rights and role permissions ensures optimal workstation security and keeps your staff reduces workload duplication.


KPLC (KP) CASE STUDY


13

CASE STUDY BACKGROUND (Early 2000’s)

• Tx and Dx in Kenya

• 500K customers, 7% growth rate

• Billing Challenges

– Poor Quality of work, No Supervision

– No accountability, Commercial cycle fragmented across divisions

– Poor Customer Service long delays

– 10 days to do readings, limited capacity to produce bills

Session 11: KPLC (KP) Case Study

14

BUSINESS PROCESS REENGINEERING


OBJECTIVES REQUIREMENTS

Improve Customer Mgt New Information System

EIS, Reading, Billing, Customer Care, Debt

Management, Service orders

Optimize Commercial Cycle Organizational Restructure and Training

Improve Revenue Collection Culture Change, Implement HHU capture

and upload of readings

Improve Company image Benchmarking

15

ORGANIZATIONAL RESTRUCTURING (ZONING)


OBJECTIVES ZONING BENEFITS

Improve Customer Mgt

Optimize Commercial Cycle

Improve Revenue Collection

Improve Company image

Better Planning, Accurate Data

Better Quality work

Efficient Supervision

Accountability established

Results oriented Staff

Debt reduction

Reduced operating costs

16

READINGS


OBJECTIVES ACTIONS RESULTS

Reduce Reading Cycle

Regulate Billing

Reduce Estimations

Improve Reading Quality

Split Large Itineraries

Daily Billing

Redefine Readings Calendar

1 Itinerary per reader per

day

Constant flow of daily readings

Constant flow of revenue

Regulated Workloads

Accountability established

• Reading and Billing Cycle based on 20 day working calendar per month

• Average number of meters read per day: 195 per meter reader

• Average bills issued per day: 25,635

• Total Itineraries: 3,855

• Total Bills: 512,683 per month

17

READINGS


OBJECTIVES RESULTS

Reduce Reading Cycle

Anomalies reduced

Reduce Estimations

Reduced to 1 or 2 days

From 25% to 10%

From 14% to 2%

18


BEFORE AFTER

READING FLOW:

Readings workflow uneven

Work incomplete in normal working hours of

a month

Significant costs due to overtime

READING FLOW:

Regularized workflow

No weekend work

No overtime expenditure

ENERGY BILLED:

Haphazard billing

Impossible to estimate Non-technical losses

Revenue Projections very inaccurate

Billing Anomalies: 25%

ENERGY BILLED:

Regular Billing

Loss Estimates easier

Projected revenue easily done

Billing Anomalies: 10%

19

DEBT MANAGEMENT RECOMMENDATIONS


ACTIONS RESULTS

Create smaller and more manageable field

teams (1 supervisor per team)

Clear line of Command and accountability

Create “Support teams “ Efficiency and Support when disconnecting

Leverage HHU Technology Accuracy, Speed and less rework

Last Disconnect order generated is first

order to be resolved

Payments received sooner, chance of

resolution at its highest

Leave notices when locked out in

attempting disconnection

Encourages payment without having the

revisit for disconnection

DEBT MANAGEMENT BENEFITS

• Decreased Pending orders and reduced number of service orders generated

• Earlier payment, prompt repayment after disconnection

DISCUSSION AND PPL APPLICATION


21

DISCUSSION

• Billing and Collection Options

• Further Questions

Session 12 Discussion and PPL Application

22

• Final Comments

• Reminder to complete Evaluation forms

• Training Report delivery

Wrap Up

DISCUSSION

sector reform and utility commercialization (sruc) …

Documents