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  • Managing Power Distribution

    Losses in the Zambian

    Electricity Industry - Reducing

    Losses from 25% to below 14%:

    ZESCOs Experience

    Presented by: Patrick Wakalila Simwinga Manager Product Security - Zesco E-mail: pwsimwinga@zesco.co.zm Cell: +260 977758766

    mailto:pwsimwinga@Zesco.co.zm
  • 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 CTs

    Mismatching CT ratios

    Tripping meter voltage

    MCBs

    Swapping of phases

    Meter bypass

    voltage link removed

    Shorted CTs

    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 Contd

  • 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 BSPs

    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 Contd

  • 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 BSPs & 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 Contd 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 Contd

  • 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 consumers 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

    pwsimwinga@zesco.co.zmEMAIL:

    Questions ?

    mailto:pwsimwinga@zesco.co.zmmailto:michaeli@iec.co.il

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