PROJECT COMPLETION REPORT THE HAPUA WORKING GROUP NO. 3 – DISTRIBUTION I. PROJECT TITLE : Project No.1 Non Technical Losses in Distribution System II. PROJECT OVERVIEW The HAPUA Working Group No. 3 acknowledged the challenges faced by all utilities within the ASEAN countries on the “Non-Technical Losses-NTL” in the distribution network There is only one meeting on the topic held on 6-9 December 2004 in Chiang Mai, Thailand, attended by 9 utilities from 8 countries (Brunei Darussalam, Cambodia, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam) III. PROJECT OBJECTIVES 1. To exchange information and experiences among ASEAN member countries to upgrade the work performance related to NTL in distribution system 2. To focus on efforts and measures in reducing the NTL, identification of root causes of problems, common strategies and practices used to reduce the NTL in distribution system. 3. Information exchange on knowledge, practices and experiences of member countries on the measures of NTL reduction and recommend a common policy and strategy if applicable. IV. PROJECT DELIVERABLES Two main topics will be extracted from prior meetings regarding Non-Technical Losses Cause of Non-Technical Losses Measures of Non-Technical Losses Reduction Brunei Darussalem • • • • • Cambodia • • • • • • Cause of NTL Power theft through unauthorised connection. Tampering of energy kilowatt-meter – Loosening of meterlink – meter bypass – Obstructing meter disc’s movement by using magnet, candle wax and other foreign matters Errors in meter reading and recording Defective meters Improper estimation of non-metered road lighting’s consumption Thief/ pilferage Tampering with meter seals Breaking control wires; illegal connection from overhead line Shorting control wires Wrong multiplication factors Under billing by providing the wrong meter readings. • • • • • • • • • • • • • • Measures of NTL Monitoring of meter tampering by customers Resealing of energy kWh meter Periodic inspection of customer’s kWh meter for any power thieving activities Immediate reporting of defective meters from meter readers is required for immediate action on meter’s replacement Energy audit on consumer’s consumption Ameliorate the readings Read the meters correctly, Reduce the error reading, Respect the meter reading schedule, Control the zero consumption, control the big customers in the billing process, Look for frauds, Reduction the number of non-billed customers Set up the commercial performance contract with the Customer Services Agencies 2 Indonesia • • • • Cause of NTL Violation of Contract Terms in the use of electricity. Illegal connection. Inaccuracy of meter reading resulting in under billing. Meter reading cycle. • • • • Malaysia • Under-billing f Large Power Customers (LPC) – Wrong meter data in Customer Information and Billing System (CIBS) e.g. wrong multiplying factor – Faulty of aged meter (not detected or no action taken) – Wrong wiring • • • • • • Measures of NTL Automatic meter reading – Remote reading and continues monitoring Meter reading Management & control – Meter reading using Portable Data Entry and Barcode on every meter – Cross checking meter reading done by outsourcers Street Lighting – Billing accuracy, including non meterized street lighting – Minimize illegal street lighting (convert to legal meterized street lighting) Billboard – Updating and validating field data – Check and confirm Contract Term Expired Date Improve Large Power Customers (LPC) billing process LPC physical checks on meter installations Ordinary Power Customers (OPCs) physical checks Protect meters Enhance Customer and Information Billing System (CIBS) Conduct Raids 3 • • The Philippines • Cause of NTL – Blown fuse (not detected or no action taken) – Over or under sized Current Transformers – Meter reading error Theft by : – Tempering of current transformers – Tampering of potential transformers – Tampering of meters – Tampering of meter fuses, panel etc. – Tapping supply form network Unbilled Customers The main cause of Non-technical Loss in the Philippines is pilferage. Method of pilferage: – Meter by-pass – Direct – tapping – Meter tampering – Use of control devices to alter motor registrations – Controlled meter readings – Deliberate alteration of meter wiring connections • • Measures of NTL Install Remote Meter Reading system Improve detection of high loss area 1. DETECTION and APPREHENSION • Expand Off Cycle Reading Project to address high tech meter tampering, controlled readings and meter substitutions by acquiring appropriate tools (laptops/PDAs) – Load profiling, error codes detection and diagnostic tests extraction capability of equipment • Revisit GP Customers • Enhancement of the Meter Seal Tracking System (MSTS) • Intensify implementation of Color Coding of Meter Seals 4 Cause of NTL The Philippines (Cont.) Singapore • • Pilferage Tampering Measures of NTL • Intensify implementation of Color Coding of Meter Seals • Intensify actions on the Kuryente Watch tips • Pilot installation of AMR for customers • SBU Loss and Circuit Loss Monitoring 2. DETERRENCE • Legalization of ISC Colonies • Relocate/Improve electric service facilities in ISC colonies • Intensify Security Office’s efforts in auditing performance/anomalies of contractors and regular personnel • Seek assistance from government agencies in apprehending and prosecuting syndicates involved in pilferage of electricity • Unauthorized energy use by consumers require constant spot checks as well as low consumption alarms from the computerized Customer Management System. • Where site visits revealed cases of tampered meter or supply bypassed. • Customer is notified and informed of back charge. • Review cases are sent to EMA for their followup. 5 Thailand • • • • Cause of NTL Pilferage Tampering Meter Reading Error Unmetered Supply • • • • • • • • • Vietnam • • • • • Inadequate management of Power Companies on supervising and managing energy usage of customers Poor perception of customers in using electricity. Especially with high electricity price > high trend for stealing energy Meters installed inside the customers’ houses > beyond the supervision of PC staffs and difficult for preventing and discover the energy theft Lack of severe penalty for power theft. Inadequate in meter management, improper in testing and calibrating meters. • • • • • • Measures of NTL Reading and Observing the meter failure (error) Report the meter failure (error) Changing reader route every three months Audit sampling reader quality every three months Evaluate the reader quality Meter reading by outsourcing Annually, Monthly and Target group checking for suspect customer Introduce Automatic Meter Reading (AMR) Installing meters at transformer and distribution lines for identifying the high losses areas Establishing and reinforcing the inspection staffs Collaborate closely with local governmental authorities. Impose severe penalties for energy theft. Installing revenue meters outside the customers premises Periodically checking and replacing meters and VTs, CTs Implementing DSM program (TOU, efficient equipments, load control, etc.) 6 Cause of NTL Vietnam (Cont.) • • Measures of NTL Providing high accuracy portable meter testing equipments to meter checking staffs Reinforcing the investigation and verification of meter reading tasks, applying new technology (HHU, AMR, electronic meters, etc.) V. PROJECT OUTCOMES 1. 2. 3. Identified main causes of non-technical losses The principal of measures, common strategies and practices to reduce nontechnical losses. Conclusions and recommendations of NTL reduction. VI. ISSUES 1. 2. 3. 4. Main causes of non-technical loss in HAPUA members country are similar. The significant causes of non-technical losses are “pilferage” and “tampering”. Most HAPUA members have similar measures for non-technical losses reduction. Implementation of AMR would also reduce non-technical. However, the implementation of the AMR is expensive and proper planning needs to be adopted to achieve the economies of scale. VI. LESSONS LEARNED Exchanges and discussions in the meeting have benefited all country members and all have learned from each other of the various measures used to reduce nontechnical losses. Although the problems faced by member countries vary, members are now more aware of the strategy and methodology to make further improvement in their respective countries. 7 VII. RECOMMENDATION 1. 2. 3. Each country should review their various measures or techniques on the appropriate implementation plans for NTL reduction. Guideline for Non-technical losses should be drawn up for a common practice. Each ASEAN member should report their result for NTL reduction to project coordinator every year for further information exchange to benefit each member country implementation regarding NTL. 8