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Smart Meters The new weapon in fighting losses Jamaica’s RAMI Programme

Smart Meters The new weapon in fighting losses Jamaica’s RAMI Programme. 8th. OOCUR Annual Conference – Ocho Rios – St. Ann – November 2010 Damian Obiglio - President & CEO, Jamaica Public Service Co Ltd. Portfolio highlights. Jamaica. Jamaica Public Service Company

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Smart Meters The new weapon in fighting losses Jamaica’s RAMI Programme

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  1. Smart MetersThe new weapon in fighting lossesJamaica’s RAMI Programme 8th. OOCUR Annual Conference – Ocho Rios – St. Ann – November 2010 Damian Obiglio - President & CEO, Jamaica Public Service Co Ltd.

  2. Portfolio highlights Jamaica Jamaica Public Service Company Regulated Integrated Utility Generation Capacity 637MW Fuel Oil / Hydro / Wind Transmission lines 1,258 km Distribution lines 17,713 km Customers 584,000 Employees 1,300 PORTFOLIOSUMMARY • Over 98% of population now has access to electricity 2

  3. Operational performance since privatization in 2001 Energy generation1 (Net GWh) Equivalent Forced Outage rate 25.4% (16)% 1 Energy generation includes IPPs Equivalent availability factor Heat rate 7.2% (15.4)% JPS’ operational performance has improved significantly since privatization 3

  4. TRANSMISSION NETWORK ENERGY LOSS SPECTRUM 21.77% Non-Technical Energy Losses 11.77% Technical Energy Losses 10% 3.7% 1.4% 3.8% 1.1% PRIMARY DISTRIBUTION LINES SECONDARY DISTRIBUTION LINES Gen Customer GSU’s Substation Transformers Distribution Transformers Customer

  5. System Losses Historical tariff and system losses • Strong correlation between losses and Tariff increase (fuel cost) • Strong correlation between Non-Technical losses and: • Violence • HDI – Human Development Index (per capita income, GINI index,…) • Level of education Tariff (U.S¢) and System Losses

  6. Our Degree of Difficulty 6

  7. Our Degree of Difficulty 7

  8. Anatomy of Electric Utility LossesEnergy Loss Modalities

  9. This shows that YTD September 2010 we have been able to reduce our system loss by (23.32-21.77) = 1.55% As calculated on the Net Gen YTD September 2010.

  10. Non-technical Energy Loss Categorization (*) Estimated

  11. LOSS CONTROL DIVISION BUSINESS PLAN

  12. Addressing Losses caused by low income residential users A 5.7% theft of electricity is due to illegal abstraction of electricity by users (residential and small commercial) in volatile areas. • JPS Strategy Non Tech. Loss reduction – low income residential users: • Social intervention • Network re-engineering • Customer Education

  13. JPS Strategy Non-Tech. Loss reductionlow income residential users • Social Intervention • Political Support: MP and Councillor information and sometimes, participation • Community Support: town hall meetings, church support • Special needs consideration: elderly, indigents, etc. • Corporate Social Responsibility Projects.

  14. JPS Strategy Non-Tech. Loss reductionlow income residential users • Network re-engineering • Basic meter relocation • Meter Centers • Residential Automated Metering Infrastructure (RAMI) • Remote Reading • Remote Disconnecting • Remote Reconnecting • Part of drive towards smart grid technology • Wiring of customers premises – General Electrical Inspector Certification

  15. JPS Strategy Non Tech. Loss reductionlow income residential users • Education • Temporary Commercial office • “Soft Landing Approach” • Communications campaign • Social workers engagement

  16. Addressing Losses caused by low income residential users – West Kingston Case • Kingston & St. Andrew (KSA) area alone accounts for 31% of total non-technical energy loss • Tivoli Gardens, Denham Town and Rose Town, neighborhoods in KSA, account for 7.1% of KSA total.

  17. Attacking Losses caused by low income residential users – West Kingston Case JPS Investment for West Kingston (US$ 1.96M) Denham Town : US$ 883 K Tivoli Gardens: US$ 650K Rose Town: US$ 430 K • Payback: • optimistic scenario: 0.8 years • realistic scenario: 1.7 years • pessimistic scenario: 2.5 years

  18. Attacking Losses caused by low income residential users – West Kingston Case • Network re-engineering (Anti-Theft Networks) • Basic meter relocation: Meter Centers

  19. Residential Automated Infrastructure (RAMI) • RAMI System • Customers’ meters are clustered on JPS pole in tamper resistant cabinet • All customers are connected downstream from meter cabinet to individual meters • Existing meters are removed from the customer premises • Meter sockets at premises covered • Customers are issued with easy to read display units • Provide customer with consumption data • Means of communicating with customer via SMS

  20. Residential Automated Metering Infrastructure Meter Cubicle with meters (RAMI) Service drop from remote meters to customers premises

  21. Addressing Losses caused by low income residential users – West Kingston Case

  22. Customer Display Unit (CDU) • Can be placed anywhere in the building • Displays consumption: • actual • accumulated since last reading • Receives notice of due date for payment • Disconnection warning • Multiple messages from JPS

  23. RAMI System Implementation at Tivoli Gardens • Construction • Network Reconfiguration • Pole Change • Line Extension • Fully Integrated RAMI system installation date: October 1, 2010 Start Date: June 14, 2010 Completion ph. 1 Date: June 25, 2010 • Challenges faced by the project: • No culture of payment for actual usage of energy by any kind of users • No legal document to prove the ownership of the residence for many users • No standard house wiring for the customers and users that can be certified by the G.E.I • High amount of arrears by some of the customers because of prolonged periods of non payment • Many Senior Citizens unable to go to JPS office to get themselves regularized

  24. The Commissioning • Cut Over - July 26 • Existing and new customers were connected to the newly constructed RAMI system with effect from July 26, 2010 • Existing old low voltage lines and transformers were removed subsequently • Once the old lines are removed the illegal users will not have supply of energy any more. • No customer that signs up and pays the deposit for house wiring at the temporary office will be left without energy. 24

  25. House Wiring: works and financing • JPS provides the customer a solution to get the General Electric Inspector Certificate • at customer’s choice: the Rural Electrification Program is contracted by JPS to wire the customer’s house according to approved standards with materials provided by JPS • JPS provides financial assistance to customer to facilitate house wiring • Customer required to fill out contract and indicate number of fixtures • The average cost of house wiring ranges from J$32,000 to J$75,000 • Initially customer needs to pay up front 10% of total cost • The balance 90% is financed by JPS • Balance is paid over 4 years period at no interest • Monthly payment forms part of light bill

  26. EducationTemporary Commercial Office • Temporary office established within community • Not unique to Tivoli Gardens • Office opened on July 5 and kept for a week • Office facilitated • Establishing of new contract • Sign up for house wiring loan • Various types of queries • Negotiating payment arrangement for outstanding balance • Special desks with Customer Services Representatives within existing nearby offices

  27. Education “Soft Landing Approach” Approach geared at allowing customers to determine what they are comfortable paying • Discounts will be applied to light bill for 7 months • First Month- 100% discount • Second and Third Month- 75% discount • Fourth and Fifth Month- 50% discount • Sixth and Seventh Month- 25% discount • Month one starts at the next billing period after completion of project

  28. Education Communications Campaign • Town crier: • Calling for town hall meetings • Reminding of office opening • Flyers distributed during the opening of the temporary office • Special TV, print and radio advertisements, inviting residents to sign up for legal, safe supply.

  29. Education Social Workers To educate customers on energy saving tips and best usage of electricity. • 5 social workers employed by JPS: • Door to door visits • Church gatherings • Distribution of information packages about JPS and the usage of electricity

  30. Social Intervention Corporate Social Responsibility JPS invested J$ 5 Million in development of these communities • BASIC SCHOOLS NUTRITIONAL SUPPORT • Number of schools----Increased from 10 to 26 • Number of children--Increased from 946 to 2320 • Monetary value --Increased from $359,480 to $928,000 • Geographical location includes, Denham Town, Tivoli Gardens, Fletcher's Land in an easterly direction to Elletson Road. • SKILLS TRAINING-PARTNERING HEART/NTA • Levels 1 and 2 certification in six areas • Welding, Carpentry/Woodwork, Plumbing, Electrical, Food/Nutrition, Nurses Aid/Practical Nursing • Trainees must be functionally literate ages16 to 35, 30

  31. Social Intervention-Corporate Social Responsibility Community development • REMEDIAL PROGRAMME FOR ADULTS, • Partnership with existing schools to provide adult evening classes • Incentives offered to successful participants • Financial support provided for three teachers to resume evening classes at community centre • SUMMER ENERGY CAMP • Partnership with Jamaica Library Service to host a three weeks summer camp for 200 children ages 6 to 14 • Approximately 20 persons from the community were employed • External guest presenters, primarily from the cultural areas, attended some sessions • The Home Economics Centre at the high school was paid to utilize their facilities, and benches for children were rented from Denham Town Primary School • Children were taken on field trips to places of interest outside of the community • BACK TO SCHOOL ASSISTANCE • Assistance with book vouchers for 2010-11 academic year 31

  32. How does the Customer Benefit? • Gets regularized as a JPS customer by visiting the temporary office opened in the community • Receives safe and reliable energy • Receives significant discount on energy bill during the initial months • Gets opportunity to control consumption and use energy rationally • Actual property owner if already a JPS customer receives partial write off of arrears and long term financing for the rest of the debt • Receives financial support from JPS for internal house wiring * conditions apply • Receives Technical support from JPS to get the internal installation certified by the G.E.I

  33. How the Customer Benefits?

  34. Addressing Losses caused by low income residential users – Seaview Gardens Case

  35. The fight never ends!!!

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