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ELECTRICITY LOSSES IN DISTRIBUTION COMPANIES IN KYRGYZSTAN

ELECTRICITY LOSSES IN DISTRIBUTION COMPANIES IN KYRGYZSTAN. NIKOLAY KRAVTSOV NGO "USTIN" KYRGYZ REPUBLIC BISHKEK , 26-27 SEPTEMBER, 2011. Structure of the Power Sector of the Kyrgyz Republic. COMMON PROBLEMS OF POWER COMPANIES IN THE KYRGYZ REPUBLIC.

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ELECTRICITY LOSSES IN DISTRIBUTION COMPANIES IN KYRGYZSTAN

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  1. ELECTRICITY LOSSES IN DISTRIBUTION COMPANIES IN KYRGYZSTAN NIKOLAY KRAVTSOV NGO "USTIN" KYRGYZ REPUBLIC BISHKEK, 26-27 SEPTEMBER, 2011

  2. Structure of the Power Sector of the Kyrgyz Republic

  3. COMMON PROBLEMS OF POWER COMPANIES IN THE KYRGYZ REPUBLIC • WEAK AND NON-TRANSPARENT CONTROL OF POWER FLOWS • CURRENT REGULATORY FRAMEWORK ESTABLISHES FOR COMPANIES A HIGH LEVEL OF POWER LOSSES, WHICH ARE INCLUDED INTO THE TARIFF • FINANCIAL PLANNING AND INTERNAL AUDIT ARE FORMAL • WAGE AND REMUNERATION SYSTEMS ARE IMPERFECT AND PROVOKE THE EMPLOYEES TO COMMIT OFFENCES • CURRENT POWER RECORD KEEPING SYSTEMS ARE UNRELIABLE AND RESULT TO SCALE ERRORS IN DATA • CURENT ACCOUNTING PRACTICE DOES NOT HELP TO IDENTIFY POWER THEFTS

  4. POWER DISTRIBUTION COMPANIES IN KYRGYZSTAN

  5. POWER RECEIVED BY DISTRIBUTION COMPANIESJanuary-June, 2008-2011

  6. STRUCTURE OF ENERGY CONSUMPTIONFOR JANUARY-JUNE, 2011

  7. PROBLEMS IN KYRGYZ DISTRIBUTION COMPANIES • EVIDENT OVER-REPORTING OF THE STATED POWER TECHNICAL LOSSES (ALMOST 20%) • IMPERFECT SYSTEMS FOR DATA READING AND PROCESSING, BILLING AND COLLECTION OF PAYMENTS • OUTDATED DATABASE ON POWER NETWORKS AND CONSUMERS • LACK OF POSSIBILITIES TO PREVENT, IDENTIFY AND COMPENSATE POWER LOSSES • MANIPULATIONS WITH POWER CONSUMPTION FOR OWN NEEDS • COLLUSION BETWEEN CONSUMERS AND DISHONEST STAFF OD POWER COMPANIES • MANIPULATIONS WITH POWER METER READINGS

  8. FINDINGS OF THE REVIEW OF COMPANIES' TECHNICAL LOSSES THE FOLLOWING HAS BEEN ESTABLISHED: • REAL LOSSES IN 10/04 KV NETWORKS ARE BELOW 10% OF THE RECEIVED ELECTRICITY VOLUME • CURRENT LOAD ON 04KV FEEDER PHASES ARE DISTRIBUTED WITH DISTORTIONS (SEVERAL TIMES) RESULTING IN SIGNIFICANT INCREASED POWER LOSSES • AT SOME TRANSFORMER SUBSTATIONS THE LOADING IS BELOW 50% OF THEIR CAPACITY, WHICH RESULTS IN UNJUSTIFIED CONTINUOUS POWER LOSSES (OFF-LOAD) • A HIGH LEVEL OF ADMISSIBLE TECHNICAL LOSSES ALLOWS TO MASK A PART OF COMMERCIAL POWER LOSSES (THEFTS AND FRAUDS)

  9. TECHNICAL LOSSES OF POWER COMPANIES FOR 2008-2011 (1st half) Technical losses of power companies totaled to almost 976 mln. kWh, or more than 18% of total power they received. thous. kWh

  10. FINDINGS OF THE REVIEW OF COMMERCIAL LOSSES IN POWER COMPANIES THE FOLLOWING HAS BEEN IDENTIFIED: COMMERCIAL POWER LOSSES (THEFTS AND FRAUDS) RESULT FROM: • POWER CONSUMPTION AVOIDING THE USE OF ELECTRICITY METERS • CAUSING INTENTIONAL DAMAGE TO METERS • DECREASING METER READINGS UNDER COLLUSION BETWEEN THE CONSUMER AND THE COMPANY'S REPRESENTATIVE • ABSENCE OF METERS AT CONSUMERS' • PRESENCE OF NON-REGISTERED CONSUMERS • POWER THEFTS ARE RECORDED AS USED BY GHOST CONSUMERS • CREATING CONSUMERS' ARREARS, WHICH ACTUALLY DO NOT EXIST

  11. COMMERCIAL LOSSES OF POWER COMPANIES FOR 2010-2011 (1st half) • The volume of companies' commercial power losses totaled 210 mln. kWh • The data is considered to be unreliable due to negative absolute values of losses thous. kWh

  12. Power losses of companies for January-June, 2010-2011 Severelectro Vostokelectro Oshelectro Jalalabadelectro Total

  13. Power losses of companies for January-June, 2008-2009 Severelectro Vostokelectro Oshelectro Jalalabadelectro Total

  14. POWER CONSUMPTION FOR COMPANIES' OWN NEEDS IDENTIFIED THAT: • IN THE 1ST HALF OF 2011 MORE THAN 15 MLN. KWH WAS USED FOR OWN NEEDS, WHICH IS ALMOST 1.7 TIMES MORE THAN IN 2010 • POWER CONSUMPTION HAS INCREASED DRASTICALLY IN ALL COMPANIES, EXCEPT FOR «OSHELECTRO» thous. kWh

  15. ACCOUNTS RECEIVABLE OF DISTRIBUTION COMPANIES • COMPANIES FACE PROBLEMS WITH ACCOUNTS RECEIVABLE DUE TO: • THE PRESENCE OF UNVERIFIED (FAKE) DEBTS • BUILDING UP OF BAD DEBT BY CONSUMERS • INEFFECTIVE MEASURES TAKEN BY COMPANIES TO COLLECT ARREARS Increased companies' accounts receivable in 2011 thous. soms

  16. COMPENSATION OF LOSSES CAUSED TO DISTRIBUTION COMPANIES • PROBLEMS WITH LOSSES CAUSED TO COMPANIES RESULT FROM: • EXISTING PROCEDURES AND THE QUALITY OF DOCUMENTS PREPARED TO COMPENSATE LOSSES, THEIR POOR ORGANIZATION AND THEY ARE NOT PROTECTED FROM CORRUPTION • OPPORTUNITIES FOR COLLUSION BETWEEN CONSUMERS AND COMPANY REPRESENTATIVES • COMMON CASES OF FAKED REPORTS ON CONSUMPTION OF ELECTRICITY BY CONSUMERS AVOIDING THE USE OF METERS • LOW SKILLS OF COMPANIES' LAWYERS • COMPANIES' LAWYERS LACK PERSONAL ECONOMIC MOTIVATION TO SEEK FOR COMPENSATION OF COMPANIES' LOSSES

  17. CONCLUSIONS AND RECOMMENDATIONS • HIGH POWER LOSSES IN DISTRIBUTION COMPANIES, INCLUDING TECHNICAL, COMMERCIAL (THEFTS AND FRAUDS) LOSSES AND UNJUSTIFIED POWER CONSUMPTION FOR OWN NEEDS, AS WELL AS ARREARS ON FICTITIOUS AND BAD DEBTS AS A FORM OF CONCEALING ELECTRICITY THEFTS, ARE FIRST OF ALL PRECONDITIONED BY INEFFECTIVE (NON-TRANSPARENT AND IRRESPONSIBLE) MANAGEMENT • INTRODUCTION OF GOOD GOVERNANCE PRINCIPLES IN COMPANIES (OPENNESS, TRANSPARENCY, ACCOUNTABILITY AND RESPONSIBILITY) CAN PROVIDE FOR A SIGNIFICANT REDUCTION IN POWER LOSSES (UP TO 1 BILLION KWH IN 2011)

  18. THANK YOU FOR YOUR ATTENTION

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