WEST AFRICAN POWER INDUSTRY CONVENTION(WAPIC) AND METRING,BILLING AND CRM/CIS CONFERENCE ABUJA

1. WEST AFRICAN POWER INDUSTRY CONVENTION(WAPIC) AND METRING,BILLING AND CRM/CIS CONFERENCE ABUJA JUNE 2004 The Reform Relay

2. TRANSFORMATION TIME LINE Phase I Phase II BACK GROUND 3 YEAR RCM CONTRACT ( Focus On Marketing) FUTURE PICTURE (Focus On Engineering) NEW APPROACH End of RCM Contract Elections 2002 2005 2007 CONCLUSION • Big Picture • Vision • Experience • Constraints • Challenges • Potential • in Industry. • Processes • IT • Metering Suggestions Why RCM ? Decision to Maintain status quo or privatize based on 5 year performance

3. BACKGROUND Why RCM ? • To improve Marketing efficiency and boost internally generated Revenue of the Authority. • Improve Customer Services. • Introduce Best Practices.

4. 3 YEAR RCM CONTRACT BIG PICTURE VISION To become the leading Districts in the provision of professional and outstanding services to win loyal and committed customers for the benefit of all stakeholders.

5. 3 YEAR RCM CONTRACT(Cont.) EXPIERENCE • Processing of applications for new customers • Selection of appropriate meter technology • Capturing of new consumer applications. • Implement penalty on defaulters and interest on overdue accounts. • Sales of electricity & debt collection mgt • Reduction of non-technical loss

6. 3 YEAR RCM CONTRACT(Cont.) EXPERIENCE (Cont.) • Customer services delivery • Managing of billing system • Management Structure – Level of trust. • Meter supply and Demand gap • Reliability of meter readings.

7. 3 YEAR RCM CONTRACT(Cont.) CONSTRAINTS • Training • IT Systems • Generate additional Operational Funding through the implementation of innovative business approaches. • Procedures and Processes • Metering.

8. 3 YEAR RCM CONTRACT(Cont.) CHALLENGES • Rural Electrification in IKORODU District. • Improvement of the quality and quantity of supply to meet the demand occasioned by the Industrial expansion. The implementation of reliable and tamper proof metering system. • High level of illegal consumption.

9. 3 YEAR RCM CONTRACT(Cont.) CHALLENGES (Cont) • Implement Field Billing (eg Hand billing) • Remote metering • Installing HT Meter panels for all MD customers • Invest in operational tools and equipment

10. FUTURE PICTURE • Potential in Industry. • Regain the gas and diesel market (Quality and Quantity) • ISO 2000 • Become ISO 2000 compliant • IT • Online Real time systems • Metering • MD Remote metering

11. FUTURE PICTURE SUGGESTIONS • Implement bulk metering to Non-Maximum Demand customers in enclosed communities • Install statistical meters on all 415 V transformers

12. TRANSFORMATION TIME LINE Phase I Phase II BACK GROUND 3 YEAR RCM CONTRACT ( Focus On Marketing) FUTURE PICTURE (Focus On Engineering) NEW APPROACH End of RCM Contract Elections 2002 2005 2007 CONCLUSION • Big Picture • Vision • Experience • Constraints • Challenges • Potential • in Industry. • Processes • IT • Metering Suggestions Why RCM ? Decision to Maintain status quo or privatize based on 5 year performance

13. NEW APPROACH CONCLUSION After 5 years: Decision to Maintain status quo (NEPA) with the extension of one of the options below: 1. Further Extension of RCM Contract 2. Concessions only in Identified Selected areas 3. Franchise the Marketing section of Distribution or Full Privatization of the Distribution Business

14. Thank You. QUESTIONS JAN VAN VREDEN GLOBAL UTILITIES MANAGEMENT COMPANY