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Itzick Michaeli
Revenue Protection Manager
Israel Electric Corporation
Itzick Michaeli
Revenue Protection Manager
Israel Electric Corporation
Joint Conference
Tucson Arizona
1-3 September 2009
“Revenue Protection”: Are we winning? “Revenue Protection”: Are we winning?
Overview of Israel Electric Corp. status Overview of IEC RP performance Tamper and bypass challenges in hostile territories Common tamper & theft cases IEC security department operations – videos InnovationsAre we winning ? Questions
Revenue Protection: Are we winning? Revenue Protection: Are we winning?
1
customer base:
2.4 million customers
Total demand for electricity
in 2008 : 50,161 Gwh
Israel electric Company
2
Legal Framework• 70-year concession expired March 1996• New Electricity Law provides for system of licenses –
expired 2006 postponed to 2007-8-9-10…• Israel Electric was granted licenses for transmission,
distribution and generation• Government target is 20% of power to be purchased
from independent power producers (IPPs)• Present IPP installed capacity: 0.7%
3
4
Current IEC Metering system
status :
1200 AMR Meters deployed
Around the country
120 AMR meters
6,000 2011 for annual usage of more than 500K KWH
26,000 ????
2,400,000 ????
Israel Electric Revenue Protection DeploymentIsrael Electric Revenue Protection Deployment
Marketing DivisionManager
IEC Revenue ProtectionManager
RP Team LeaderJerusalem District
RP Team LeaderNorthern District
RP Team LeaderTel-Aviv District
RP Team LeaderSouthern District
RP Team LeaderHaifa District
RP teams in 17 RegionalService offices
under the Districts
IEC total RPPersonnel
62
IEC total RPPersonnel
62
2.4 million
customers
20 RP trainedMetering
technicians
20 RP trainedMetering
technicians+
5
1.1 1.11.32.5 3 3 2.6 3 3.5
2.85
4.3 4.8
8.8
6.4 6.86
6.9
10.4
0
2
4
6
8
10
12
$ Million
1992 1994 1996 1998 2000 2002 2004 2005 2007
Year
2004
Total revenues
returned
Total revenues
returned
8
2008
Estimated
Annual Loss
40 – 50 $ Million
Estimated
Annual Loss
40 – 50 $ Million
6
Tamper and bypass challenges in hostile territories
Tamper and bypass challenges in hostile territories
Bedouin tribes
Palestinian towns
7
Yata village
)Near Jerusalem(
Palestinian Authority
Territory
22 KV Grid
bypass
Pirate 22 KV breaker
Pirate 22 KV feeding cables
8
Palestinian AuthorityElectricity Theft On a Huge Scale
Palestinian AuthorityElectricity Theft On a Huge Scale
Disconnecting
Register
conductors
Check Point
Tampering with the connection size Turns the metering cabinet into an oven
And demands constant cooling9
• $ 12,000,000 value of lost revenues returned from checked
villages & towns
• Many more al villages & towns to check and re-bill
• 30% Monthly increase in revenues from villages & towns
already checked
10
Theft of service
Bedouin towns
Southern Israel
4911
MagnitudeOf the
Bedouinproblem
Population ~ 200,000 doubles every 13 years
60% ages 0 – 1850,000 unauthorized buildings
12
Theft of service
Illegal Bedouin settlement
Jerusalem
Mountains
13
Common tamper & theft cases Common tamper & theft cases
Meter
Meter sentry
14
IEC National Security Unit IEC National Security Unit
• Electricity theft contractors
• Employees involvement
• Our secret weapon - Sting operations
15
16
Fixing the meter
Fixing the meter
17
Hot wireHot wire
5918
Tampering with the
meter coils
Tamperingwith the
meter coils
The Misplaced Meters CaseThe Misplaced Meters Case
19
InnovationsInnovations
20
Online tamper suspicion reporting
Online tamper suspicion reporting
21
Reporting employee details
RP team leader details
Tamper/Bypassdetails
Voice memo22
Check metersCheck meters6323
24
Involving the Police? Involving the Police?
6425
Involving the Police? Involving the Police?
64
Yes, we can try!! Yes, we can try!!
Operation - “Pick up the glove”
26
Law & OrderLaw & Order
Does the system work ?Does the system work ?27
Law & OrderLaw & Order
28
Where is the Problem ?Where is the Problem ?• Ineffective legislation
• Conviction rates for electricity related offences are low (very few complaints mature and go to court)
• Penalties are either insignificant or inappropriate
Lack of awareness amongst public
Law & OrderLaw & Order
What are we going to do about it ?What are we going to do about it ?
•Analysis of current legislation
• Compare to the Western World best practice
•Identify gaps within current legislature
•Determine the ideal Legislation
29
Law & OrderLaw & Order
What are we going to do about it ?What are we going to do about it ?
• Gain industry and governmental support
• Adoption of a legislative framework which is supportive of prosecution of offenders
Next :
Changes are required within the utility & the Judicial system to implement legislation supportive
30
Training judges Training judges
THE INSTITUTE OF ADVANCED JUDICIAL STUDIES, Jerusalem, Israel31
Are We Winning? Are We Winning? A wise Chinese once said:
When the wind direction switches ,some build walls and others build wind mills
32
Reinforced Revenue Protection Operations Cost V Prevention of Future Losses For a 3 years project
Future revenuesRecovered revenues
Predicted net benefit33
www.israel-electric.co.il72
THANKS FOR YOUR ATTENTION
Itzick Michaeli ISRAEL ELECTRIC
Questions?
www.iurpa.org
GilAugust 2004
GilAugust 2004