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REVENUE PROTECTION IN BRAZIL SOME INFORMATION, FEW CERTANTIES AND MANY DOUBTS. BRAZIL OVERVIEW 8,500,000 SQUARE KILOMETERS 62 ELECTRIC UTILITIES ONLY 5 ARE NOT PRIVATIZED AROUND 180 MILLION INHABITANTS AROUND 53 MILLION CUSTOMERS. Introdução. Informe o motivo da discussão Identifique-se.
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REVENUE PROTECTION IN BRAZIL SOME INFORMATION, FEW CERTANTIES AND MANY DOUBTS IURPA - OCTOBER/2001
BRAZIL OVERVIEW 8,500,000 SQUARE KILOMETERS 62 ELECTRIC UTILITIES ONLY 5 ARE NOT PRIVATIZED AROUND 180 MILLION INHABITANTS AROUND 53 MILLION CUSTOMERS Introdução • Informe o motivo da discussão • Identifique-se IURPA - OCTOBER/2001
BRAZILIAN ELECTRIC GRID SYSTEM WE USE ABOUT 13% OF THE TOTAL ENERGY USED IN THE U.S.A. 95% OF OUR ELECTRIC ENERGY COMES FROM HYDROELETRIC POWER PLANTS OUR NATIONAL ELECTRIC SYSTEM IS INTEGRATED IURPA - OCTOBER/2001
NON-TECHNICAL LOSSES TOTAL (TECHNICAL AND NON-TECHNICAL) LOSSES: BRAZIL AVERAGE 20% NON-TECHNICAL LOSSES: FROM ABOUT 0.5% UP TO 30% (DEPENDING ON THE UTILITY) TOTAL NON-TECHNICAL LOSSES: 2.1 BILLION US$ / YEAR IURPA - OCTOBER/2001
SINCE 2001 THE NON TECHNICAL LOSSES ARE INCREASING MAIN CAUSES ELECTRICITY RATIONING PERIOD (RULES TO DECREASE CONSUPTION) - FROM JUNE 2001 TO APRIL 2002 GENERAL ECONOMIC PROBLEMS TARIFFS ARE INCREASING (CURRENTLY AROUND U$S 150.00 PER MWh) IURPA - OCTOBER/2001
WHY UTILITIES ARE FAILING THEY WANT VERY EFFECTIVE RESULTS WITHIN A SHORT PERIOD OF TIME THEY GO IN ONE DIRECTION ONE YEAR BUT CHANGE IT (18O DEGREES) THE NEXT YEAR MOST PRIVATIZED UTILITIES HAVE IMPLEMENTED STRONG DOWN SIZING ACTIONS IURPA - OCTOBER/2001
WHY UTILITIES ARE FAILING THE NEW EMPLOYEES DO NOT HAVE STRONG LINKS WITH THE UTILITY THEY DO NOT INVEST IN TECHNOLOGY (RESULTS DO NOT COME FAST ENOUGH) IURPA - OCTOBER/2001
SOME CHALLENGES MANY PEOPLE ARE SELLING FRAUDULENT SERVICES (FORMER UTILITY EMPLOYEES?) FRAUDS ARE VERY WELL PLANNED AND EXECUTED FRAUDS USING STOLEN (OR BOUGHT) SEALS FROM UTILITIES IURPA - OCTOBER/2001
SOME CHALLENGES FRAUDS INVOLVING ELECTRONIC METERS IURPA - OCTOBER/2001
RELEVANT INFORMATION STOLEN SEALS NETWORKING INVOLVING EMPLOYEES “SPECIAL SERVICES” TO OPTIMIZE INTERNAL INSTALLATIONS INSTALLATION INCREASED CONSUPTION BY 20% AT THE SAME TIME THE FRAUD WAS IMPLEMENTED FIXER IS A “GHOST” IURPA - OCTOBER/2001
MORE CHALENGES OUR NATIONAL REGULATORY BUREAU OF ELECTRICITY - ANEEL - IS ESTABLISHING A DECREASING LEVEL PROFILE FOR NON TECHNICAL LOSSES FOR EACH COMPANY ABOVE THIS NEW LEVEL UTILITIES CAN NOT CONSIDER NON TECHNICAL LOSSES AS A COST IURPA - OCTOBER/2001
MORE CHALENGES THIS MEASURE WILL STOP THE SNOW BALL EFFECT: LOSSES BECOMING COSTS - UNFAIR FOR GOOD CLIENTS THEREFORE, RP AREAS MUST BECOME MORE EFFICIENT IN ORDER TO GET THE EXPECTED RESULTS IURPA - OCTOBER/2001
A POSITIVE VIEW OF THIS MEASURE MORE THAN A REVENUE PROTECTION MEASURE, IT IS A WAY TO IMPROVE THE RATIONAL USE OF ELECTRICITY IURPA - OCTOBER/2001
LET’S TALK ABOUT SOME CERTANTIES AND DOUBTS IURPA - OCTOBER/2001
COMPARING LOSSES FROM DIFFERENT UTILITIES FIRST STEP: MAKE THE ENERGY BALANCE TOTAL ENERGY PRODUCED AND BOUGHT - TOTAL ENERGY SOLD = TOTAL LOSSES TOTAL LOSSES - TECHNICAL LOSSES = NON TECHNICAL LOSSES IURPA - OCTOBER/2001
COMPARING LOSSES FROM DIFFERENT UTILITIES SECOND STEP: TAKE THE NECESSARY CARE WE NEED TO ASK ABOUT THE METHODOLOGY USED TO CALCULATE (AND/OR MEASURE) TECHNICAL LOSSES, CONSIDERING: AREA COVERED, RURAL AREAS COVERED, VOLTAGE AND LENGTH OF LINES , QUANTITY OF DISTRIBUTION TRANSFORMERS AND OTHER VARIABLES IURPA - OCTOBER/2001
TECHNICAL LOSSES CONSIDERING ALL THESE FACTORS, FOR A GIVEN UTILITY 8% CAN BE A BETTER RESULT THAN 5% FOR ANOTHER ONE IURPA - OCTOBER/2001
NON TECHNICAL LOSSES WE CAN COMPARE. BUT ARE THE NUMBERS RELIABLE??? (THEY DEPEND ON THE WAY WE CALCULATE THE TECHNICAL ONES) THERE ARE LOSSES THAT DO NOT APPEAR IN THE ENERGY BALANCE!!! THE NON TECHNICAL LOSSES PROFILE OVER THE YEARS IS MORE SIGNIFICANT THAN THE NUMBER FOR EACH YEAR = TREND IURPA - OCTOBER/2001
MAYBE THIS IS A POINT THAT DESERVES IURPA’S ATTENTION WE NEED TO HAVE SOME STANDARDS IN ORDER TO COMPARE NUMBERS FROM DIFFERENT UTILITIES IURPA - OCTOBER/2001
TOTAL LOSSES CEMIG X BRAZIL AVERAGE % YEAR IURPA - OCTOBER/2001
NON TECHNICAL LOSSES AT CEMIG IURPA - OCTOBER/2001
“SETTING UP” FIXERS THE ONLY DEVICE WE NEED IS A VIDEO CAMERA PROPERLY INSTALLED IN A HOUSE IURPA - OCTOBER/2001
THANK YOU FOR YOUR ATTENTION LUIZ FERNANDO ARRUDA TEL 00 55 31 33295520 FAX 00 55 31 33295279 arrudalf@cemig.com.br http://www.cemig.com.br IURPA - OCTOBER/2001