Revenue Protection Workshop by Hoosain Essop Rens Bindeman

1. Revenue Protection WorkshopbyHoosain EssopRens Bindeman 17 May 2005

2. Program • 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.

3. PRESENT ELECTRICAL BOUNDARIES BLAAUWBERG ESKOM TYGERBERG OOSTENBERG CAPE TOWN HELDERBERG

4. EAST NORTH NEW PROPOSED REGIONS/AREAS SOUTH

5. Theme Yin & Yang

6. Yang • Great & strong • Policy • Imposing & acting • Acquire power

7. Yin • Small & supple • Letting go of own importance • Adaptable & flexible

8. Smart

9. Necessity of a Revenue Loss Forum • Why • Who • Where • How

10. Why • Objective of RLF: • Promote a culture of payment • Discourage culture of tampering • Protect Council assets against loss, misappropriation, pilfering or willful and malicious damage

11. Who & where

12. Debt Management • Non-payments and bad debt • Customer contacts • Agreements • Disconnections

13. Asset & Insurance management • Responsible for all fixed & moveable assets and insurance. • Control all theft/loss cases (case files) • Responsible for Asset Register movements (Acquisitions/Retirements).

14. Non-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.

15. 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

16. 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.

17. Strategy & 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

18. How • 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..

19. Teamwork

20. Methods of detection • Definition of a tamper • Alter secretly/improperly resulting in a loss of income to the authority • Interfering with the metering equipment • Interfering with the main supply conductors.

21. Methods • Audits • Exception reports • Feedback • Technology

22. Audits • Sweeps • Maintenance • Targeted • Random • Revisits

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

24. Feedback • Customers • Technical staff • Check meters • Technology • Incentives

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

26. Choosing 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

27. Choosing a partner • Check experience & references • Do site visits • Check methodologies used • Access vs. ownership • “actuality precedes potentiality”

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

29. Bartho Pele Principles • Consult • Acces to service • Acces to information • Courtesy • Openness & transparency • Redress

30. Value chain • Operation • Education & training • Communication • Processes • Procedures • People