Fight against Non Technical Losses: How CI E fights against Fraud

1. Fight against Non Technical Losses: How CIEfights against Fraud 10 Sept. 2014

2. SUMMARY 1- Background 2- Organization 3- Choice of customer segments to control 4- Outcome Conclusion

3. CIE IN FIGURES • Public Limited Companyunder Ivorian law founded on 08.24.1990; • Capital: 14 billion FCFA= 21.3 million euro; • Shareholding: 80% private, 15% state and public organizations, 5% CIE staff; • Employees: 4,029 including 25% women; • Turnover 2013: 373 billion FCFA = 568 million euro; • Net income in 2013: 8.2 billion FCFA = 12.5 million euro; • National energy sales: 5045 GWh; • Energy export Sales: 820 GWh; • Number of clients: 1223595 • Rate of private customers debtrecovery 98% • 95 reception points across the country, including 19 in Abidjan PLAN DE L'EXPOSE

4. Due to the 2011 post-election crisis, the distribution output of the city of Abidjan (61% of Turnover CIE) lost 5 points between 2010 and 2011, reaching a record drop Within a year. The initial checks carried out revealed a fraud rate of over 50% of the controlled customers Therefore, CIE has decided to tighten control on the ground to fight fraud effectively and secure sustainably the Turnover of the electricity sector in Côte d'Ivoire. 1 – BACKGROUND

5. 2 - ORGANIZATION • Taking into account the context described above, the strategy of the CIE was as follows:  • - Strengthen teams and means of control of industrial and low voltage customers, we have grown from a staff of 15 to 145 controllers today. This strengthening was accompanied by the formation of all the teams with new control techniques and their staffing software tools necessary for analyzing and selecting customers control: Some of these tools have been developed by our teams of computer; • Be accompanied by companies with expertise in the context of South-South cooperation (OKSA Morocco) for training and the acquisition of necessary tools (meter standards, TSP, computer skills, staff training); • Reorganize the management of industrial customers: the Regional Directorates of Abidjan (4 total) with a high concentration of industrial customers were strengthened by specialized teams dedicated to managing this segment of customers (4002 customers, of which half in Abidjan) ; • Contribute to the improvement of the legal framework for the fraud enforcement (new electrical code promulgated on 02/04/14). PLAN DE L'EXPOSE

6. 2 - ORGANIZATION PLAN DE L'EXPOSE

7. 3 – Choice of customer segments to control • The choice of customers control remains guided by the potential in terms of turnover. So the priority was granted in descending order to: • Industrial customers (HTA customers): systematic control (at least once per year) and unannounced. These customers are charged with smart electronic meters, especially the ITRON SL7000 (over 80%) and control is done through computer applications developed by ITRON (ACE VISION) and help us to read and interpret the recorded data; • contrôle inopiné à la suite d’analyse des consommations et du rapport puissance souscrite/consommation; • Low-voltage clients with high potential Turnover (three-phase and single-phase customers exceeding 30A contract power) customers: unexpected control after consumption analysis and power consumption report; • Other business customers. • The control is done primarily in structured areas at the expense of semi-urban neighborhoods (precarious) to facilitate the progress of teams.

8. 4 - OUTCOMES Actions to fight against fraud undertaken in the last quarter of 2011 helped earn 7 points of output in 2 years on the entire territory and 6 points in the metropolitan area of Abidjan. This trend is maintained and will enable us to achieve a yield of 90% by 2018 at an average gain of 2 points ofoutput a year. Today we are working to consolidate our gains and scrutinize new horizons such as remote management and remote monitoring of clients consumption.

9. 4 - OUTCOMES Some cases of discovered fraud Fraudulent cable used to supply a production line of an industrial customer Solution to eliminate this risk: Build padlocked gates to control access to meters and transformer Cable used to divert power to households: underground direct connection (over 1 meter into the ground). Adopted solution: move risky underground connections to air connections

10. Differential circuit breaker cut by the customer Some cases of fraud encountered Recovery of artificial neutral grounding and / or switch device System implemented in combination with the destruction of the differential circuit breaker to reduce consumption In this case of fraud the value of the intensity on all phases strongly than 0.5A maximum tolerance threshold

11. CONCLUSION From 2012, we have recruited, trained and equipped with the new monitoring teams. Alongside these teams we redeployed all of our employees to improve the efficiency of distribution indicator which is the ratio of billed energy and distributed energy. All this work has helped to move from a distribution yield of 73% on the entire territory at the end of the Ivorian crisis in 2011 to 80% at the end of the year 2013 with the aim of achieving at least 90% by 2018. Today avoid fraud also requires sufficiently dissuasive laws against fraudsters and their accomplices. Since April 2014, the new Ivorian Electricity Code was promulgated by the Government of Côte d'Ivoire and therefore more repressive laws are in effect. We believe they will help us achieve our goal. Also to help prevent fraud we progressively introduce widespread use of our "smart" meters. Ultimately the model of the Ivorian Electricity Company is a good mix of new technology and the dedication of our employees

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