Eng. Godwin.E.N.Mnzava, Head of Sales & Marketing Division,Tanesco, Tanzania

IMPACT OF AMR SYSTEM ON REVENUE COLLECTION AND LOSS REDUCTION.

TANESCO Case Study,

Slides Layout• Background• Why Going AMR?

– Increasing Revenue?– Curbing Energy Theft?

• Adoption of AMR Meters in TANESCO• Key Realized Benefits• Impact on Sales/Revenue• Impact on Energy Losses• Challenges in Implementing AMR Solution• Concluding Remarks

Background Information• TANESCO stands for Tanzania Electric Supply

Company Limited• It is a vertically integrated Power utility supplying

Electricity to Tanzania mainland and bulk supply to Zanzibar

• Total number of customers up to July 2012 was 984,781

• The Company decided in 2007 to introduce AMR metering system in order to deal with two major issues:– Revenue Collection– Reduce Energy Theft and therefore NTL Losses

SMART METER ,AMR AND THE

AMR SYSTEM

• AMR is an abbreviation for Automatic Meter

Reading

• An AMR System is a system that is formed by

the following components

- Smart meter

- AMR System server

- Communication media

The meter is smart,can detect and store events

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5.1 AMR System Overview

Why Going AMR?

1. To Increase Revenue.

• Due to high losses and other issues associated with metering

and billing system, it was projected that by improving on

these two areas TANESCO Revenue could improve by up to

10%

• This prompted a thorough look at various options that could

improve on meter reading and billing.

• Improve services and save money by eliminating the costs

associated with manual meter reading.

• Out of various options AMR metering was opted.

Why Going AMR?

2. To curb Energy theft thus reduce NTL.

• By December 2006, TANESCO overall losses figure was 26%.

• This was contributed mainly by electricity theft by Large

Power Users consuming about 60% of all generated power

• Despite various Revenue Protection efforts, still our losses

were high.

• Customers were inventing new methods of meter tampering

each day as may be seen in the photos below:

Meter Bypassed by inserting resistors in all Phases

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FOUR RESISTORS INSERTED WITH SLEEVES

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AMR metering implementation TANZANIA Distribution network.

• AMR Meters installed to Boundaries, Feeders and Substations

• Installing AMR meters to consumers premises that is Large Powers and medium customers

Goal to track losses all over and ease detect area of losses

Below are some of photos for more details

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FEEDER METERING

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BOUNDARIES METERING

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AMR METERS INSTALLED ABOVE HT LINE FOR UNFAITHFULLY CUSTOMER METERING

Adoption of AMR System in TANZANIA

TANESCO decided to adopt the AMR metering system in 2007.

A Pilot Project involving 100 Large Power Users was conducted from 2007 to 2008 to determine suitability of the technology.

Using the data of said Project we were able to spot anomalies which indicated:

Potential system leaks Potential leaks at customer sites Damaged or broken meters Tampering/theft practices

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Cont: Adoption of AMR System in TANZANIA

Roll-out of the AMR SystemFollowing success of the Pilot Project, the Company decided in 2009 to roll out AMR Meters to cover all remaining Large Power Users totaling 2,000 and 8,000 whole-current three-phase metered customers. The exercise started in 2010 and expected to be completed in mid 2011

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Cont: Adoption of AMR System in TANZANIARoll-out of the AMR System

Total AMR meters installed to date are as follows• T3 = 410; T2 = 2,028; T1 = 10,668

Substation & Feeders = 477Grand Total = 13,583

� we are planning to roll out down small � Power Users (Single phase meters)

Key Benefits of The AMR system in TANZANIA

Remote disconnection. This is one of the key

features of the AMR system that helps to improve

revenue collection. Through this feature all non

paying customers are remotely disconnected and

reconnected after payment at very minimal costs.

Alarm System whenever Meter Tamper is

attempted. Through the alarms, customers who

attempted to tamper with the meter were

apprehend before causing much loss

Key Benefits Cont…

Improvement in Quality of Service ; temporary breakdowns can be detected by the AMR System and quickly attended by Emergence Crews even if no one is at home to report the break down.

Significant reduction on the meter reading costs . All medium customers meters are now read remotely by the AMR system thus reducing the costs of meter reading by contractors.

Impact Of AMR System on Energy Sales – 2006 Vs 2010

Total Units Sold(kWh)

Total Units Sold(kWh)

Increase

2006(No AMR)

2010(WITH AMR )

(%)

T2383,376,945 467,296,342

22%

T3 834,306,239 1,140,734,688 36%

Av. Total 1,217,683,184 1,608,031,030 32%

Units/Customer 780,566 846,332 8.4%

Before AMR

Year 2006

After AMR

Year 2010

Total Energy

Theft Cases62 12

Energy Theft Cases DROPPED from 62 cases involving LPUs in 2006 to 3 cases only in 2011

Overall Losses dropped from 26% in 2006 to 19.61% by the end of June2012.

Major contributing Factor is AMR Metering System.

Why?: Several customers who tried to tamper were caught following the alarms sent by the system. Information spread to others so they are scared to attempt!

Impact of AMR Meters on Losses

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IMPACT OF AMR METERS ON DEBT COLLECTION

MEDIUM POWER USERS

Total Customers Disconnected ‘Remotely’ 3,021

Total Debt Disconnected TSh2,311,376,482.00

Customers Reconnected ‘Remotely’ After Payment 1,874

Debt Collected From Reconnected Customers TSh1,384,439,118.00

A: DEBT COLLECTION

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of AMR (SMART) Meters on Energy SalesEnergy SalesEnergy SalesEnergy Sales

for 16 Problematic Large Power Users(See Next Slide)

IMPACTIMPACTIMPACTIMPACT

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Conclusion: From Energy Sales Point of View, adoption of AMR (SMART) Meters is the best solution.

Financing Worries? The Smart AMR Meters are self-financing. Look at the protected revenues (over 60%!!)

Customer No.2009 kWh Cons.

(WITH AMR)2007 kWh Cons.(BEFORE AMR)

Percentage

1 4,428,651 4,034,932 10%

2 4,678,027 2,900,895 61%

3 18,173,386 13,306,902 37%

4 24,253,312 11,587,275 109%

5 8,437,076 5,872,384 44%

6 5,712,041 246,292 2219%

7 12,468,819 4,706,992 165%

8 8,606,874 7,470,068 15%

9 4,049,598 3,090,784 31%

10 1,106,344 942,051 17%

11 5,179,244 4,621,802 12%

12 24,266,638 11,721,458 107%

13 14,857,744 10,183,106 46%

14 3,879,916 3,205,986 21%

15 15,589,605 10,993,785 42%

16 15,589,605 10,993,785 42%

TOTAL 3,262,184 1,851,783 76%

DIFFERENCE (PROTECTED kWh) 66,808,784 62%

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Total Customers Disconnected ‘Remotely’ (No.) 3,021

Average Distance between disconnected customers (km) 0.5

Total Distance covered for disconnecting 3,021 customers (km) 1,510

Total Distance covered for re-connecting 1,874 customers (km) 937

Total km covered 2,447

Fuel that could be used for 1,510km (6km/ltr) 408

Cost of Fuel per Litre TSh2,000.00

Total Fuel Cost TSh815,833.00

Saving in ManHours (Three Personnel D/C Gang):

Salary Per Day Per Person =TZS800,000.00/30 = TZS26,666.00 TSh26,666.00

Average Number of Customer for Physical Disconnection Per Day 12

Number of Days to ‘Physically’ Disconnect 3,021 customers 252

Disconnection Salary for three personnel TSh20,140,000.00

TOTAL DISCONNECTION COST SAVED TSh20,955,833.00

B: SAVINGS IN DISCONNECTION COSTS SAMPLED CUSTOMERS

1. It is expensive to finance the projects thus complete roll-out is a long term process.

2. AMR Metering systems also requires adequate training to Installation Teams, Management Units as well as Revenue Protection Teams otherwise the technology itself may create unexpected surprises

3. To be able to manage a smart system, people need to be smart! Attitude change is inevitable! But people will definately resist the change!

Challenges on Implementation of AMR Metering Solution

CONCLUDING REMARKS1. The AMR System has proved the following advantages: -

- It is a good tool for controlling Energy theft thus reducing losses and increasing revenues.

- It is also a good tool for areas collection- With AMR System power breakdowns can be detected

and attended early thus improving quality of service, - Reduces billing costs as data is captured and

processed automatically.

2. Regardless of high initial investment costs, the AMR project is a sustainable. However, Smart System NEEDS Smart People, thus Proper Management is vital for AMR benefits to be fully realized.

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