revenue protection workshop by hoosain essop rens bindeman

Revenue Protection WorkshopRevenue Protection Workshop

bybyHoosain EssopHoosain EssopRens BindemanRens Bindeman

17 May 2005

ProgramProgram

Hoosain• Necessity of revenue loss forum• Methods of detecting tampered/by-passed meters

Rens• Training of RP managers and operators• Prevention/proactive initiatives to prevent tampering

in the future.

PRESENT ELECTRICALBOUNDARIES

ESKOMBLAAUWBERG

CAPE TOWN

HELDERBERG

OOSTENBERG

TYGERBERG

MLC DOMESTIC SPU LPU

BLAAUWBERG 15982 800 205

CAPE TOWN 378371 26054 686

TYGERBERG 91269 10881 622

OOSTENBERG 37156 2783 117

HELDERBERG 42019 2883 237

SOUTH

EAST

NORTH NEW PROPOSED REGIONS/AREAS

ThemeTheme

Yin & Yang

YangYang

• Great & strong• Policy• Imposing & acting• Acquire power

YinYin

• Small & supple• Letting go of own importance• Adaptable & flexible

SmartSmart

Necessity of a Revenue Loss ForumNecessity of a Revenue Loss Forum

• Why• Who• Where• How

WhyWhy

Objective of RLF:• Promote a culture of payment • Discourage culture of tampering• Protect Council assets against loss,

misappropriation, pilfering or willful and malicious damage

Who & whereWho & where

Revenue Loss Forum (RLF)Revenue Loss Forum (RLF)

Strategy and PlanningStrategy and Planning

Debt ManagementDebt Management

Asset & Insurance MgtAsset & Insurance Mgt

Non-Ferrous MetalsNon-Ferrous Metals

CreditCredit & Prepayment& Prepayment

Large Power UsersLarge Power Users

Debt ManagementDebt Management

• Non-payments and bad debt• Customer contacts• Agreements• Disconnections

Asset & Insurance managementAsset & Insurance management

• Responsible for all fixed & moveable assets and insurance.

• Control all theft/loss cases (case files)• Responsible for Asset Register

movements (Acquisitions/Retirements).

Non-ferrous MetalsNon-ferrous Metals

• Focus on theft/loss of NFM e.g. copper, aluminium.

• Serves as the first reactionary unit in consultation with AM in electricity to attend to reports relating to NFM theft.

• Member of the NFTCC (Operational Forum) in the Western Cape.

Credit & Prepayment Credit & Prepayment

• Provide a uniform controlled approach for dealing with tamper incidents

• Recover the cost of repair to damaged equipment

• Recover a proportional historic loss of revenue

• Educate

Large power users Large power users

• CRM Focus on Large Power Users e.g. contracts, administration, meter readings.

• Responsible for Billing accuracy and manage account adjustments

• Monitors defective metering and tampering.

Strategy & PlanningStrategy & Planning

• Analyses incidents and statistics of thefts, losses and damages to electricity assets and electricity infrastructure.

• Formulates and draft strategies, policies, guidelines and procedures in order to combat, minimize and eliminate losses.

• Keep abreast of technology• Management Report

HowHow

• The RLF meets once a month.• Each sub-team leader reports to the

RLMF on its activities and provides statistics of results.

• RLMF analyse information and discuss strategies to be implemented

• Reports on a regular basis to Directorate Strategic Management Team..

TeamworkTeamwork

Methods of detectionMethods of detection

Definition of a tamper• Alter secretly/improperly resulting in a loss of

income to the authority

1. Interfering with the metering equipment

2. Interfering with the main supply conductors.

MethodsMethods

• Audits• Exception reports• Feedback• Technology

AuditsAudits

• Sweeps• Maintenance• Targeted• Random• Revisits

Exception ReportsException Reports

• Zero purchases• Low purchases• Erratic purchase patterns• Estimation• Reconciliation of sales vs. purchaces • information

FeedbackFeedback

• Customers• Technical staff• Check meters• Technology• Incentives

TechnologyTechnology

• New generation meters• Ancillary equipment• Software• Energy balancing• Turn-key management projects

Choosing a productChoosing a product

• Document org’s requirements• RPF• Compile a shortlist• Investigate fit, functionality, cost, ROI and

CoO• System flexibilty• BPR• Do not buy skill, create it yourself

Choosing a partnerChoosing a partner

• Check experience & references• Do site visits• Check methodologies used• Access vs. ownership

“actuality precedes potentiality”

MeasureMeasure

Why Measure:• Aware of productivity• Benchmarking• Bases for action• Starting point for negotiations• If you measure you can manage.

Bartho Pele PrinciplesBartho Pele Principles

• Consult• Acces to service• Acces to information• Courtesy• Openness & transparency• Redress

Value chainValue chain

• Operation• Education & training• Communication• Processes• Procedures• People