Managing Power Distribution
Losses in the Zambian
Electricity Industry - Reducing
Losses from 25% to below 14%:
ZESCO’s Experience
Presented by: Patrick Wakalila Simwinga Manager Product Security - Zesco E-mail: [email protected] Cell: +260 977758766
PRESENTATION OUTLINE
1.0 Introduction
2.0 Background to the ZESCO Distribution Loss Problem
3.0 Main drivers to the high Distribution Losses
4.0 Major challenges in Distribution Loss Management
5.0 How did ZESCO manage to reduce its Distribution
Losses?
6.0 Major achievements
7.0 Factors that influenced DL management
8.0 Conclusion
•ZESCO
INTRODUCTION
• Ownership
• Primary Business
• Gen. capacity: 2,216 MW
• Transmission & Distr.
Capacity: 39,000 km &
5,000 MVA
• Customer base: 662,526
•ZESCO
Customer
BACKGROUND TO THE ZESCO
DISTRIBUTION LOSS PROBLEM
23 23.1
17.2
13 14
12.7 13.6 14 14 14 14 14 14 14
2007/08 2008/09 2009/10 2010/2011 2011/12 2012/13 2013/14
Annual Corporate Distribution Loss Performance Trend (%)
Actual % Loss ERB % Target
2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 Distribution Loss (%) 23 23.1 17.2 13 14 12.7 13.6 Energy Loss (GWh) 1,094 1,098 854 632 756 718 798
“The only way
to discover the
limits of the
possible
is to go beyond
them into the
impossible ” -Arthur C. Clarke-
1. Technical Losses
2. Non-technical losses
WHAT WERE THE
MAIN DRIVERS OF
HIGH
DISTRIBUTION
LOSSES IN
ZESCO?
Reasons for High Technical Losses: • Long power distribution
lines • Long power distribution
lines
• Overloaded distribution
networks
• Ageing distribution
infrastructure.
• Loose connections on
distribution lines
Planning
New Installation/
Construction
Metering
Meter Reading
Billing
Debt Control
Customer Service
Reasons for High Non-Technical Losses:
Commercial cycle processes
Product Security
High Distribution
losses • Poorly
managed
Commercial
cycle
processes
• Theft
• Removal of voltage links
• Shorting of CT’s
• Mismatching CT ratios
• Tripping meter voltage
MCB’s
• Swapping of phases
• Meter bypass
voltage link removed
Shorted CT’s
voltage MCBs
Most common ways in which Electricity was
being stolen
• Illegal connections
• Illegal reconnections
• Fake meter readings
• Willful burning of
meters
• System frauds
Most common ways in which Electricity
was being stolen Cont’d
Other causes of Distribution
losses
Aged electromechanical metering technology.
Aged electromechanical meters
Defective metering units
Unmetered services
Non-payment of bills
Diesel power stations
Uncaptured customers (CIS – BIS)
Delays in enrolling new customers
What were the major challenges in
Distribution Loss Management?
• Non compliance to system procedures
• High number of Unmetered services and BSP’s
• Meter Reading and Billing challenges
• Low Inspector-to-Customer ratio
• Corruption - energy theft – street level decisions
• Load shedding
• Introduction of prepayment metering system
• Weak legal framework
• Incorrect customer data base
• Impersonators
• Resistance by customers
• Poor reticulation
• Difficulties locating premises
• Socio-economic problems
• Difficulties collecting revenue
Major
challenges in
Distribution
Loss
Management Cont’d
Strategy Formulation
How did ZESCO manage to reduce its Distribution
Losses?
Strategies to reduce Non-technical losses
1: Identified the greatest distribution loss potential areas
2: Improved meter reading and billing
3: Metered all BSP’s & customers
4: Intensified community sensitization campaigns
5: Introduced penalties for offenders & rewards syst.
6: Restructured revenue protection department
7: Documented all revenue protection processes
8: Strictly monitored the commercial cycle processes
9: Introduced the Integrity department
Strategies to reduce Technical Losses
1: Identified weakest areas in the DS (DERP/IAES)
2: Built new substations & upgraded old substations
3: Reinforced overloaded transformers
4: Uprated conductor sizes for HT and MV lines
5: Balanced loads between phases on feeders
6: Eliminated loose connections at jointing points
7: Installed shunt capacitors - power factor
Major Achievements
23 23.1
17.2
13 14
12.7 13.6 14 14 14 14 14 14 14 14 14
Actual % Loss ERB % Target
• Reduction in Distribution
Losses
• Reduction in Revenue
Losses
0
50
100
150
200
250
300
350
Revenue Loss (ZMK' Million)
30%
70%
Customer base composition as at March 2010
UNMETERED
METERED
97%
3%
Customer base composition as at
31 December 2014
Prepaid
Post paid
Unmetered
Major Achievements Cont’d 100% Customers metered - Total customer base of
662,526 as at December 2014
Successfully:
• Reinforced and
upgraded existing
substations and
associated overhead
lines.
• Constructed new
substations and
overhead lines.
Major Achievements Cont’d
Factors that influenced the Successful
Distribution Loss Management
• Clear road map
• Top Management support
• ERB set DL KPI of 14% in 2010
Nelson Mandela
Long Walk to Freedom “I have walked that long road to
freedom. I have tried not to falter; I have made missteps along the way. But I have discovered the
secret that after climbing a great hill, one only finds that there are many more hills to climb. I have taken a moment here to rest, to steal a view of the glorious vista that surrounds me, to look back
on the distance I have come. But I
can rest only for a moment, and I dare not linger, for my long walk is
not yet ended.
CONCLUSION
• This performance was achieved by understanding the
distribution loss problems at hand and then choosing the right
strategies
• Each utility (including consumer’s attitudes and behavior) has
its own unique qualities and only by knowing the system and the
problem can effective solutions be designed and implemented.
• Utilities should consider DL management as a critical function.
No business can
afford the risk!
THANK YOU FOR YOUR ATTENTION
Patrick Wakalila Simwinga
Manager Product Security
ZESCO LIMITED
Questions ?
