How sub-Saharan Utilities Could Transform their Revenues

Lost Power Could Fund Electricity Expansion in Africa Utilities in Kenya, Senegal and Ghana could IF... Increase Return on Capital and They reduce Reduce Customer Tariffs electricity losses to 12% Senegal 251 22.1% Losses 20 15 13¢ Tariff 12.8¢ Population Population growth GDP per capita Generation capacity 13 million 2.6% p.a. 12% 10- US S1032 700MW Network losses 10% 5. Electricity access Electricity demand growth 10% p.a. 42% 22% Return on Capital 0. 1% 2012 Kenya 19.3% 20 Losses 15 Generation capacity 1197MW 11¢ Tariff 12% 10.4¢ 10% 10 Network losses Return on Capital 8.5% 19% Population Population growth GDP er capita 41 million 2.4% p.a. US $865 |2012 Electricity access Electricity demand growth 7% p.a. 18% Ghana 30127% 25 Losses 20 15 12% 9¢ 10 10% Tariff Network losses . 8.8¢ 27% 25 million Return on Capital Population Population growth GDP per capita Generation capacity 2.3% p.a. US $1605 2012 2186 MW Taritt: Electricity access Electricity demand growth 11% p.a 72% Average cost per kWh priced in U.S. cents Source Tari Strctures for Sustainable Electsitication in Aca KEMA A 2012 Commissioned by the European Cooper Institute How it Can be Done... Colombia's Codensa reduced losses from 22% to 10% in 3 Years Regulation •Tariffa structured for financial sustainablility •Taritffs that balance etficiencylquality with Community engagement • Awareness campaigns: *energy etficiency regular bill payment, preserving electric intrastructure and cost to consumer * Subsidies for some customers (eligibility set by govermment) 22% • Investment in environmental and low-cost supply• Programmes for children in low-income homes 3 years Commercial management Integrated management from metering to re-connection Programmes for commercial regularization • Increase in customer service contact points Information on customers' rights and obligations Information technology •Commercial and technical MIS, updated from field data Move towards automated meter-reading 10% Technical actions •Tackling vulnerability to tampering • Monitoring and surveillance for irregular connections Punitive actions Cooperation with police and courts against electricity theft, fraud and non-payment Public information on cases of electricity theft 1997 2000 2007 External contractors Loss reduction maintenaance plan •Training, certification and tools for contracted workers Summarized from Reducing Technical and Non-Technical Losses in the Power Sector. Pedro Anemann Energy Lnit Worid Bank Jy 2000 Monitoring of contracted workers and outsourced services