AQUILA NETWORKS PLC

A Midlands Electricity CompanyUnited Kingdom

Angela Mann

Revenue Protection Services

2

Since 1990 -

• April 1990

- Customers using 1 MW and above

• April 1994

- Customers with a demand of 100 kW to 1 MW

- Competition in provision of metering services

• September 1998 to May 1999

- Customers with up to annual usage 12,000 kWh

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Supplier Switching

New Suppliers

Old Local Suppliers

New Suppliers

36%

Old Local Suppliers

64%

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DNO’SPowergen

Innogy

BGT

LE Group

Scottish &Southern

ScottishPower

Small Suppliers

Supplier Market Share

5

Scottish & Southern - Scottish Hydro

- Southern Electric

ScottishPower - Scottish Power

- Manweb

United Utilities - Norweb

Western Power Distribution - SWEB

- SWALEC

Innogy - Yorkshire

- Northern

Powergen - East Midlands

Aquila Networks - MEB

London Group - Eastern

- London

- Seeboard

Distribution Network Operators

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Metering Service Companies

Siemens Metering - Powergen Metering

- Eastern Metering

- Datum

- Quantum

Scottish & Southern - Scottish Hydro

- Southern Metering

Scottish Power - Scottish Power

- Manweb

United Utilities- Norweb

- Welsh Water

- BGT (Dual Fuel - DC)

Invensys - IMServ

- Meterpoint

- Norweb DC

Lowribeck - an independent DC

Accuread - BGT DC

OnStream - British Gas MOP preparing for

electricity

Innogy - Yorkshire Metering

- Northern Metering

ECS Metering - London Metering

& Data Services - SWEB Data Collection

Western Power - SWEB Meter Operation

Distribution- Hyder Metering (SWALEC)

Metering Services - MEB Metering

Ltd

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And the Supplier has a choice!

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And the lights go out!

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What’s the problem, Mrs O’Reilly?

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And the lights stay out!

!!

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And the cavalry arrive?

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So Who is Responsible for Theft?

Supplier

Detect and prevent theft

Distributor

Inform supplier

Agents of Supplier (MAP, MAM, DC & others)

Inform supplier

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Who provides the service?

• Contracted to the Meter Operator 10

• Retained in the Distribution Network Operation 3

• Contracted to the Supplier 1

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And who exactly loses?

Energy Costs

+ Distribution Costs

Supply Costs

+ + Suppliers Margin

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Aquila Networks plc

1990 - Public Limited Company

1996 - GPU & Cinergy = Avon Energy Holdings

1999 - Supply business sold to npower

- GPU buy Cinergy’s share of Avon Energy

2000 - GPU merge with First Energy

2002 - Aquila buy 79.9% interest

- First Energy retain ownership of 20.1%

2003 - Up for sale!

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Facts & Figures• 13,000 square kilometres

• 2,343,000 million customers

• North - 30%• Central - 50%• South - 20%

• Domestic - 2,148,200• Commercial - 170,900• Industrial - 23,900

• 24,202 km of overhead lines• 35,936 km of underground cables• 47,000 substations

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Revenue Protection in Aquila

Pre 1987 - bad debt

1987 - company wide initiative

- 7 regions, 7 managers

- reporting to central point

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Today’s Team

Revenue Protection Services Keeping customers safe

Licence obligations and electricity regulationsRecoup costs and losses

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Changes

• The lack of customer respect for seals would lead one to believe that seals function as tags to indicate where access can be obtained.

• The companies must realise that they now have to deal with customers who have acquired considerable electrical knowledge, electrical connections are no longer a mystery to them.

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Changes

• It has been found that in practically all cases, a customer, if he finds he can interfere with the meter’s registrations, uses two to three times as much energy as he would under normal circumstances

• A great many persons who tamper with the meter or service, do not feel that interfering with the registration of the meter is dishonest

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Changes

• The effectiveness of seals will depend upon the policy of the utility in dealing with customers who insist upon breaking them.

• The question of maintaining public relations is also involved and would appear to be over-emphasised.

• The amount of losses is inversely proportional to the amount of activity on the part of the company towards the elimination of tampering.

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Changes?