HAPUA

Guidelines for Minimizing Losses in Energy Delivery (Final)

HAPUA Working Group No. 3: Distribution April 2010

Contents
Introduction 1. Overview

1.1 Scope 1.2 Purpose 2 . Definitions 3 . Loss Classification 4 Quantitative Analysis of Loss 4.1 Technical Loss 4.2 Non-Technical Loss 5. 6. Loss Targeting & Regulatory Regime Loss Reduction Measures 6.1 Technical Loss Reduction Measures 6.2 Non-Technical Loss Reduction Measures Annex A (informative) Case Study Annex B (informative) Technical Modeling and Assumptions Annex B-1: Guidelines for the Application and Approval of Caps on the Recoverable Rate of Distribution System Loss (MERALCO, The Philippines) Annex B-2: Loss Factor Calculation - B-2.1: PEA (Thailand) Loss Factor Coefficient Calculation - B-2.2: EVN (Viet Nam) Technical Losses and Non-Technical Loss Calculation Annex C (informative) Loss Management Practices of HAPUA Members Annex C-1: Distribution Losses in HAPUA members - C-1.1 Technical Losses - C-1.2 Non-Technical Losses Annex C-2: Loss Management Practices - C-2.1 Technical Losses Management Practice of PEA - C-2.2 Non-Technical Losses Management Practice of PEA - C-2.3 HAPUA Member Accuracy Meter Check

Annex D (informative) Bibliography

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Introduction
(This introduction is not part of Guidelines for Minimizing Losses in Energy Delivery of HAPUA Member)

Energy losses in power system delivery contributes a major cost to electricity utilities. As measures in reducing energy losses brings significant benefit to utilities, energy loss reduction has been set as a key performance indicator (KPI) of most utilities and are closely monitored by the regulators.

The goal of this guide is to provide useful information on best practices for managing losses in energy delivery system for HAPUAs members. We hope this guide will be used as a reference for regulator to evaluate the energy loss performance of utilities.

The Working Group on Project Formulating Guidelines for Minimizing Losses in Energy Delivery had the following membership: Mr. Harry Hartoyo, Project Coordinator Mr. Pongsak Harnboonyanon, Chair

Cambodia:

Mr.Ouk Vuthy Mr. Lim Sisophorn

Thailand:

Mr.Wallop Kittiwiwat Mr.Suthat Viriyasuthee Mr.Wirote Buaklee Mr.Sermchai Jaruwatanadilok Mr.Werawat Buatong Mr.Decha Viriyacharoenkit Mr.Kangwan Jarernkornburi

Indonesia: Lao P.D.R.: Malaysia:

Mr.Doddy Pangaribuan Ms. Phommany Lattanalangsy Mr.Amir Mahmod Abdullah Mr Mohd Hadi bin Sohod

Myanmar:

Mr U Tun Kywe Vietnam:

The Philippines: Mr.Baldomero N.Guisala Singapore: Mr Cheah Wi Kwong

Mr.Le Viet Hung

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Guidelines for Minimizing Losses in Energy Delivery

1. Overview
This guide contains information on methods to estimate and to reduce losses in energy deliver system and is written for engineer, economist, executive, and policy maker who have to design and determine on losses management. However, it may not achieved optimum loss level by using this guide , it may help related parties to create a systematic loss management and share experiences in loss reduction among HAPUA countries. This guide will help the engineers and economists optimize the loss reduction programs. The concept of energy loss management in this guide can be expressed as the following chart.
Step #1 Loss Evaluation 1. Quantify technical loss (TL) and non-technical loss (NTL). 2. Separate TL and NTL by voltage level and service area.

Step #2Loss Reduction Project Arrangement 1. Set up financial return criteria of the project. 2. Create loss reduction project following financial and planning criteria. 3. Assign project timing and responsible agencies. 4. Formulate rewards and penalties scheme for loss target control.

Step #3 Loss Targeting 1. Formulate loss target based on voltage level in each separated service area. 2. Submit/Report loss target to regulator/ shareholder. If regulator requires lower loss target, utilities may negotiate regulator for more investment/subsidies approval and necessary criteria change.

Figure 1: Loss Management Flowchart

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1.1 Scope This guide will identify factors that contribute to energy losses evaluation and suggest appropriate energy losses reduction measures in energy delivery in distribution system.

1.2 Purpose The purpose of this guide is to establish the useful information for Non-Technical and Technical Losses reduction management. The guide includes a common policy, strategy and best practice activities for minimizing losses in distribution systems.

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2 .

Definitions

Customer: Any person or entity supplied with electricity service under a contract with a Distributor.

Distribution System Losses or Total Losses: The energy input including those delivered to the Distribution System by the Transmission System, Embedded Generating Plants, other Distribution Systems, and User Systems with generating facilities minus the energy output (i.e., electricity delivered to the Users of the Distribution System) for a specified billing period. Distribution Utility: Any Electricity Cooperative, Private Corporation, government-owned utility, or existing local government unit, which has an exclusive franchise to operate a Distribution System.

Energy: The integral of power with respect to time, measured in Watt-hour (Wh) or multiples thereof.

Energy Input. Energy delivered to the Distribution System by the Transmission System, Embedded Generating Plants, other Distribution Systems, and User Systems with generating facilities. Energy Output: Energy delivered to the Users of the Distribution System.

Load: An entity or electrical equipment that consumes electricity. Load Loss: The electrical loss due to the resistance of conductors that varies with the square of the electric current. Load Model: The representation of electrical load in Load Flow simulations for the purpose of calculating Technical Losses. Metering Equipment: The electrical measurement devices including instrument transformers, wiring, communications, and other auxiliary devices associated with metering. Network Model: The equivalent electrical circuits that mathematically represent electrical systems (e.g., Distribution System) which for calculating electrical parameters or simulating its behavior or performance. It consists of resistance and reactance of the electrical equipment, devices and conductors. No-Load Loss: The fixed loss incurred in electrical equipment regardless of the loading level. This includes the fixed loss dissipated in transformers, voltage regulators, capacitors, inductors and other electrical equipment. Non-Technical Loss: The component of Distribution System Losses that is not related to the physical characteristics and functions of the electrical system. It is caused primarily by human.. Non-Technical Loss includes the electricity loss due to pilferage, tampering of meters, erroneous meter reading and/or billing, and unmetered customers, etc.

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Technical Loss: The component of Distribution System Losses that is inherent in the physical delivery of electric energy including load loss and no-load loss. Three-Phase Load Flow: The analytical tool that simulates the power flows in an unbalanced threephase Distribution System.

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3. Loss Classification
Distribution System Losses or Total Losses in this guide shall be classified into 2 categories as follows: (1). Technical Losses (2). Non-Technical Losses The Technical Losses is the component of Distribution System Losses that is inherent in the physical delivery of electricity. It includes the Load and No-Load (or Fixed) Losses in the following: Group 1: Lines Loss which consists of (1) Primary Distribution Lines (2) Secondary Distribution Lines Group 2: Distribution Transformer Loss Group 3: Loss of Other Equipment such as (1) Power capacitor (2) Voltage transformer and current transformer for energy measurement The Non-Technical Losses is the component of Distribution System Losses that is not related to the physical characteristics and functions of the electrical System, and is caused primarily by human error, whether intentional or not. Non-Technical Loss includes the electricity lost due to pilferage, tampering of meters, and erroneous meter reading and/or billing. Distribution System Losses will be presented as this following figure.

Distribution System Losses

Technical Losses

Lines, Transformers and Other Equipment

Non-Technical Losses

- Electricity theft - Non-payment by customers - Defective Metering

-

Etc.

Figure 2: Loss Classification

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4. Quantitative Analysis of Loss

Distribution System Losses or Total Losses, in general, shall be computed as the net of all energy inputs and all energy outputs for a specified period. Energy outputs also include electricity which has to be provided for public service obligation (PSO) and utility consumption. 4.1 Technical Losses Technical Losses shall be the sum of the hourly load and no-load (or fixed) losses in all distribution equipment, devices and conductors. In equation form, the Technical Loss shall be computed as follows: Technical Losses = E[Load Losses in Lines Loss(Group 1)J + [Load and No-Load Losses of Transformers Loss (Group 2)J (4.1) In general, loss of other equipments (Group 3) can be negligible. However, some utilities may include the loss of this group in the calculation for better accuracy. 4.1.1 Load Losses Load Losses which includes line loss and transformer loss can be calculated by many methods. If utilities have an excellent data base which includes hourly load curves of each customers and distribution system network configurations, hourly load Losses in lines loss can be calculated by performing three phase load flow in every time period which depends on load curve data (one time period may be 15 minutes or 30 minutes or etc.). If hourly load curves data of each customer are not available meanwhile feeder load data can be prepared, Loss Factor Method may be more suitable for technical loss calculation. Loss factor (or Load Loss Factor) is the ratio of average loss to the peak loss. It can be calculated by using load factor as follows: Loss Factor =A x (load factor) + B x (load factor) 2; A = 1-B (4.2)

Load Factor will be identified by load measurement. A typical value of A and B are 0.3 and 0.7 [1 Buller F.H., C.A. Woodrow, Load Factor-Equivalent Hour Values Compared, Electr.World, vol. 92, No. 2july 14, 1928, pp.59-60] respectively. The value of A and B depend on load characteristic and network configuration. It may not be equally used for every system. A and B factors should be performed for each type of system which may be classified by area type (such as urban, rural, or industrial) or load density and line length.

Alternative equation: LLF =

(4.3)

The following table shows the other values of A and B (calculation for the values of A, B and LLF (Loss Factor) appeared in Annex B-2)

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Table 1: The typical values of A and B coefficient Case A Line* 0.33 Transformer** 0.2

B 0.67 0.8

*PEA research project [1] ** Tennessee Valley Public Power Association [2], Distribution System Loss Reduction Manual Project LR-1(Booth & Associates, Inc. Consulting Engineers, 1994)

If loss factor is already calculated, energy loss, due to load losses, will be quantified as follows: Energy Loss (Load Losses) = Loss Factor x Peak Loss x Time Period (4.4)

Peak Loss and Load Factor Calculation: Case 1: Load Losses of Lines Line peak loss will be performed by three phase load flow calculation. Peak load data of each point in a distribution system for line losses calculation can be estimated by allocating a peak load (identified by measurement) of lines that is measured at substation. The load allocation depends on the size of transformer. Case 2 Load Losses of Transformer, Peak loss will be calculated by, Peak Loss of Transformer = Full load loss (klf) x [Peak load (kVA) / Rated power of transformer (kVA)] 2 (4.5) Most power transformers will be installed with power meter and load data will be recorded. In this case peak load and load factor information is easily to obtain. In case of distribution transformer, power meter are usually not installed. Therefore peak load data can be supposed by using load data which are recorded in the assumed peak load period. Energy delivered on distribution transformer will be identified by energy records of every customer connected which can be found in billing system. Load factor will be calculated by Load factor (Distribution transformer) = energy records of every customer connection / [Peak Load (kVA) x Time period of billing] (4.6) 4.1.2 Transformer No-Load Losses Transformer No-Load Losses or Transformer Fixed Loss will be calculated in terms of energy as follows: Energy Loss (Transformer No-Load Losses) = No-Load Loss Specification x Time Period (4.7) No-Load Loss Specification is No-Load Loss level indentified in transformer specification To evaluate technical losses of interested areas, every network and equipment may be calculated. However, this approach cannot be possibly performed according to very large numbers of network and equipment. A sample of network and equipment will be selected for calculation to represent technical Page 10 of 81

losses of the area. The sample selection criteria should be set carefully. Geographical data, load density and network line length may be appropriate factors to be considered when setting selection criteria. 4.2 Non-technical Losses Non-technical losses shall be the residual loss after subtracting the technical Loss from the Total Losses. Non-Technical Losses = Total Losses Technical Losses The errors of non-technical losses calculation from equation 4.7 consist of: (1) Errors in accounting and record keeping that distort total losses calculation. The causes of total loss errors are (1) the difference of energy input collection period and energy output collection period and (2) incorrect meter reading due to human errors. These errors can be mitigated by applying Automatic Meter Reading which automatically collect energy input and output information. (2) Errors in technical losses computation. Some parts of technical losses may not be included in technical losses calculation because they are (1) too complex to represent in mathematic model, for example, leakage current of insulators, (2) too little and able to be negligible such as losses of energy measurement instrument and (3) errors in technical information of the network. (4.8)

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5. Loss Targeting & Regulatory Regime

5.1 Loss Targeting As energy loss level is an important key to identify utilitys efficiency, loss targeting is one of the most interesting and important issues. Some regulators set loss target by benchmarking to utilities with low loss level. Some will set by assigning utilities to identify loss level on their own. Both schemes however are based on past performance and the requirement by regulator/shareholder. Although Benchmarking is a good concept for loss targeting, it can be misleading if the utilities selected for benchmarking are very different in characteristics, especially the proportion of electric sale at each voltage level and planning criteria. As such, this might not be a true comparison. Loss targeting is recommended to be set separately for each voltage level as loss characteristics are different at various voltage level. This makes it easier for auditing and management purposes. Moreover, different voltage level requires difference loss reduction measures. Distributed Generation (DG) is another factor affecting loss level. DG will either improve or reduce the distribution loss, depending on its capacity and the location of DG in the network. Appropriate loss management plan is required to manage loss targeting correctly. Roadmap concept is one of the management tools to help utilities to create energy loss management plans [1]. Roadmap consists of 4 major parts as follows: 1. Existing Loss Level .

The quantity of total losses and technical losses at each voltage level shall be evaluated. The non-technical losses can be calculated by using equation 4.7. The abnormal points and their causes can be identified by performing root cause analysis. The accuracy of loss calculation depends on the availability of data and information. 2. Criteria of Loss Reduction Planning, which comprise budget, financial return of loss reduction project (internal rate of return, net present value or payback period). There are many methodologies to manage the causes of losses. Loss reduction that is less costly can be selected first. This measures will then be implemented until the funds allocated exceeds the criteria. Financial returns for each loss reduction measure will be evaluated. Loss reduction measures with financial returns that cannot meet the criteria will be rejected or suspended before developing the action plan. 3. Action Plan, including lists of loss reduction projects, time schedule and responsible agencies. Action plan is based on selected loss reduction measures. Utilities shall assign tasks of loss reduction measures to each responsible agency and establish key performance indicator (KPI), agency performance evaluation system, penalty and reward scheme for motivating assigned agencies. These agencies shall also implement the exact concept to their teams for effectively implementation.

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4. Expected results of each loss reduction project and Loss targeting of each period (A period may be one year). Loss target can be established by two approaches. The first approach is the bottom up approach when the ground staff develop their action plans. The second one is the top down approach where the regulator or executives of utilities set target for the utility. However, both approaches need action plan to meet the target. In case Top-down approach, fund is usually provided sufficiently to achieve the target. Roadmap will be revised periodically. The benefit of Loss Roadmap will help regulators to set up electricity tariff criteria linked to loss performance to the benefit of utilities. 5.2 Regulatory Regime The key success factors of loss control are 1. 2. 3. 4. Setting appropriate target. Agencies that are responsible and act with integrity. Have a loss performance evaluation system in place. Setting up a rewards and penalties scheme.

To accomplish regulator target and maximize utility efficiency, rewards and penalties scheme will be set up to drive utility to improve loss level. Some regulators currently allow some part of energy loss to be passed through electricity tariff. Therefore utilities are persuaded to keep energy loss level lower than the specified energy loss in electricity tariff structure in order to be more profitable. In the future, regulators will increasingly be more stringent to check on utilities by regularly reviewing loss compensation in electricity tariff structure. In line with regulators intention, utility will encourage regional offices to implement loss reduction program. In general, loss reduction programs are related to many regional offices. Loss committees, which comprise representatives of all related units, are a good way to built up a strong cooperation for effective implementation. Funds provision is the key factor if the regulators/shareholders require loss level that is lower than its technical loss. The expected improvement will not occur if utilities are not allowed to invest on better or higher quality equipment and smart devices for detecting abnormal energy usage. The criteria of loss reduction investment have to be considered directly by regulator or policy maker.

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6. Loss Reduction Measures

6.1 Technical Loss Reduction Measures The technical loss can be categorized into two parts. The first part is load losses caused by current and impedance. The second part is no-load losses depending on equipment design and voltage level. Most of technical loss reduction measures will tackle the first part by reducing current and impedance. The second part can be reduced by improving loss specification of equipments, especially transformer, which requires higher investment than improving the first part. There are many methods to reduce current and impedance as follows: Table 2: Loss Reduction Measure Categories Current Reduction 1. Power Factor Improvement 2. Voltage Level Increment 2. Load Balance Impedance Reduction 1. Network Reconfiguration 2. Bigger Conductor Replacement 3. New Substation Construction

The main purpose of new substation construction and replacement of conductor of a bigger size is to increase power capacity of distribution system. These measures require substantial investment. The benefit of loss reduction usually is not high enough to meet the financial criteria. For voltage level increment, there are two points of view. The first is to increase voltage level of distribution system. As with the new substation construction and replacement of conductor of a bigger size, the main purpose is to increase power capacity of distribution system. The second is to increase voltage level at purchasing points between utility and large customers. In this case, overall loss level will be dramatically decreased but the problems of loss control still exist. Regional offices will abandon such program if they did not achieve the desired loss level. Technical loss reduction measures will be discussed as follows. 6.1.1 Network Reconfiguration The main concept of this technique is to define the optimal path of distribution line. There are many alternatives to re-configure the network, subject to power system reliability consideration and existing set up of the network. The solution for this technique is the status of switches in the target areas. Due to the difference of load model and assumptions made, the optimization technique will be different in many commercial programs. The advantage of this technique is low cost but its solution is affected by network changes. The solution has to be revised periodically or when there is a significant change in the network. This technique has been shown to reduce up to 28% of the existing energy loss [2]. The result of loss reduction is dependent on the existing power system. In cases where power capacitors are installed in the system, network reconfiguration can reduce more losses because power capacitors are changed to reduce electrical current in the new path. This situation is equivalent to changing the position of power capacitors although the power capacitor is not physically moved. Page 14 of 81

6.1.2 Load Balancing Load balancing is one of the low cost techniques for technical loss reduction because it does not require additional network equipment. It only requires load level and phasor information at each load point. In case 3 phase 4 wires system, load balancing can reduce about 5%-23% of energy loss [2]. The significant reduction occurs because neutral wire current is decreased. The loss reduction result of this technique can be shown as follows [ 1 ]
1.8 1.7 1.6
Loss, unbalance/PLoss, balance

1.5 1.4 1.3 1.2 1.1 1 0

10

20

30 40 % Unbalance

50

60

70

Figure 3: Unbalance load effect: 3 phase 4 wires system In case 3 phase 3 wires system, load balance may not be reduce energy loss as much as 3 phase 4 wire system. Load balance will only distribute load current in this case. Result of loss reduction can be shown [ 1 ]

Figure 4: Unbalance load effect: 3 phase 3 wires system As mentioned above, load balancing technique is the interesting loss reduction technique for 3 phase 4 wire system. In general, the effect of load balancing is more obvious during the peak load period. Although this concept is simple and easy to perform, utility will not benefit much from this technique.

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To get more benefit from this technique, load information and processes of load balancing have to be considered. If customer can be categorized by using load characteristic, energy usage of each customer is a good choice to use for load balancing. In radial distribution system, load balancing shall be done at the end of every lateral and energy loss of neutral wire in every lateral will decrease and utility will get more benefit than only applied load balancing in the main line. The main problem of load balancing is the lack of data, especially phasor information of customers. Some utility have to survey distribution network before execute this measure. This process will increase resources and cost. However, as it is inevitable , the data collected has to be managed well. If database system of this information is not shared and is inaccurate, new meters can be installed to capture the data for load balancing but the cost will be extremely high. Geographicalll Information System (GIS) and sound database management may be required to overcome this. 6.1.3 Power Factor Improvement In general, most of loads require reactive power which causes low power factor and high current in the lines. Most of power factor improvement is capacitor installation that intends to compensate reactive power in power systems. The sizing and location of capacitor for loss minimization is the load point, eventhough there are many constraints to this. Power factor improvement can be done by utility and customer. In many countries, large customers control their power factor at purchasing point as required by regulation. If power factor of the customer violate the regulation, utility will penalize (VAR-charge) that customer. The regulation of power factor will be approved by regulator or the authority concerns. For utility, there are two alternatives to improve power factor. The first one is to install capacitor at the secondary side of distribution transformer. The purpose of this alternative is to reduce copper loss of transformer. In general, the capacitor size for this is a fixed-type. The sizing of capacitor is dependent on transformer load characteristic which comprises load power factor and minimum load level. The chosen size will compensate reactive power of minimum load level. The second one is to install capacitor in distribution network. This is the Optimal Capacitor Placement (OPC) method. It is an optimization method and can be expressed as follows: Objective function; Minimize {Total Cost = Energy loss Cost + Investment Cost} or Maximize {Total Benefit = Energy loss reduction Gain Investment Cost} Constraint; Subject to: Voltage level of all point shall not be exceeded the regulation

Power system modeling for optimal capacitor placement will be the same as load flow calculation except load profile is included in the calculation. It can be represented by daily load curve or load duration curve. Load duration curve method is recommended because it is more simply and less time consuming. As the load level is fluctuated unpredictably, the benefit that can be derived from using the daily load curve method will be minimal.

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The location of transformer will be chosen by using sensitivity index

Ploss : k is the available location

aQk for capacitor installation. Capacitor will be installed in the location which is given the minimum index. The index will be determined by the following methods:
1. Use Jacobian matrix, which is a component of Newton-Rapshon method of load flow calculation. [2] 2. Compute loss reduction by simulating a capacitor installation in every available location. The size of capacitor for simulation may be chosen by using the smallest size of utility fixed capacitor. The fixed type capacitor will be firstly selected until it is no longer effective or when there is voltage level violation. The switched type will then be used. The flow chart of optimal capacitor placement is as follows: (this flow chart is used for DigSlient Program)

Figure 5: Optimal Capacitor Placement Flowchart [1]

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6.1.4 Loss Specification Improvement Significant loss reduction can be achieved by tightening the specification on losses reduction for major equipments, especially power transformer and distribution transformer. No-load loss and Copper loss of transformer can be specified more stringently but the equipment will inadvertently cost more. In the case of cable, there are two main types of losses; Voltage dependent losses are dielectric losses and losses due to charging current. The use of cable with low capacitance and cable made of higher quality materials will mitigate such losses. This can be achieved with tight specifications but it would inadvertently increase the cost. Current dependent losses are conductors and sheaths losses. Conductor losses are mainly caused by skin effect and proximity effect. Sheath losses are mainly due to circulating and eddy currents, especially when single core cable is being used and sheath is bonded at both ends. The use of Miliken conductor will reduce the skin effect for large conductor size. Losses due to proximity effect can be reduced by increasing the distance between cables and management of current flowing in parallel conductors. To reduce sheath losses, single core cable are either single point bonded or cross-bonded. The effect of eddy current can be reduced by increasing the phase separation. However, before changing the specifications, cost benefit analysis should be carried out to weigh the benefits derived from loss reduction against the higher equipment cost.

6.2 Non-Technical Loss Reduction Measures

6.2.1 Causes of Non-Technical Loss (NTL) NTL are more difficult to measure because these losses are often go unaccounted for by the system operators and thus have no recorded information. The most probable causes of NTL are: Electricity theft Non-payment by customer Defective Metering The most prominent forms of NTL are electricity theft and non-payment, which are thought to account for most, if not all, of NTL in power systems. However, the majority causes of Non-Technical Loss (NTL) can be grouped into four categories as shown below. 6.2.1.1 Illegal connection from distribution line Unscrupulous customers extract energy illegally by bypassing the energy meter or by connecting wires directly to the distribution lines. In certain areas, direct tapping of power by non-customers is widely prevalent. This kind of power theft takes place mainly in domestic and agricultural sectors. Geographical remoteness, mass basis for theft, poor law enforcement capability and inaction on the part of utility contributes to this phenomenon. Direct theft can tarnish the image and reputation of the company as it reflects the ineffective handling of this issue by the distribution utility. It should be tackled with the highest priority. Illegal connections may be tapped: Overhead bare conductors Open junction boxes (in cable systems) Exposed connections/joints in service cables

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6.2.1.2 Meter Tampering In addition to the factors discussed above, theft of electrical energy causes an increment in nontechnical losses. Since it is often not possible to catch the offenders, the amount of energy loss cannot be determined and resulting in revenue loss. Stolen energy is, therefore, considered as a part of losses. Theft by the existing customers through tampering of meters is a predominant cause of utility revenue loss. Almost all categories of customers are involved in power theft. However, priority should be given to high value service customers for more effective and immediate revenue recovery. There are many ingenious way for tampering meter. New methods are constantly being discovered as shown:

Spiders: Small holes are drilled into the meters and live spiders or spiders' eggs crammed into them. The spiders' webs slow down the metering mechanism, giving a false reading. Needles: Pins are inserted into a hole, slowing down the meter's recording wheel to give a flash reading or even a zero usage. Magnets: Small magnets attached to the outside of the meter casing will stop the meter from registering, or slow it down. Chewing gum: Gum is often used to stop the meter completely but it is taken out just before the meter reading is taken. Bypassing: this will be power sourced illegally from underground cables and overhead wires or by passing the neutral wires in meters. Others :

Intentional burning of meters; Changing the sequence of terminal wiring; Tampering the seals of meters; - Disconnecting Neutral wires;

6.2.1.3 Defective Metering and Meter Reading Error Non-technical losses are also caused by some deficiencies in the functioning of the utility such as defective metering and meter reading error. These losses are not due to any deliberate action of the customers. They are due to internal shortcomings of the utility and, hence, are that much easier to tackle. Some of these factors are given below Inaccurate metering system installed on outgoing radial feeders and distribution transformers (inaccurate meters can result in errors in loss assessment). Slow or defective meters at customer premises. Errors in the CT/PT ratios (in case incorrect ratios are considered in billing). Errors in assessment of consumption by un-metered customers (like street lights, public amenities, traffic lights etc.). Errors in computing provisional consumption for customers with defective meters or for customers whose meters have not been read. Over burdened CT. Wrong readings and data frauds: In many utilities the meters readers were in connivance with the customers to record lower reading than the actual reading registered at the meter. Stuck up meters. No readings was furnished by the meter reader, and at times, repeatedly. Constant nil consumption cases reported without any comment. Page 19 of 81

Progressive readings recorded in disconnected services. No relation between the meter capacity and the load. Adoption of wrong multiplication factors (MF) for billing as the change in MF is not intimated to the billing agency. Unintentional errors in meter reading. Intentional errors in meter reading (collusion by meter readers). Data punching errors. Data punching errors by data entry operators. Lack of validation checks. Lack of management summaries and exception reports on meter reading.

6.2.1.4 Tardy Billing and Poor Revenue Collection In addition to the external factors mentioned above, non-technical losses are also caused by billing and collection. These losses are due to internal shortcomings of the utility and, hence, are that much easier to tackle. Some of these factors are given below Non payment by customers, where utility does not have a method for timely disconnection. Lack of a system for carrying out regular (monthly) energy accounting to monitor losses Energy accounting errors (by not following a scientific method for energy audits). Errors in raising the correct bill. Manipulation/changes made in meter reading at billing centers lack of a system to assure integrity in data. Lack of system to ensure bills are delivered. Lack of system to trace defaulters including regular defaulters. Lack of system for timely disconnection. Care to be taken for reliable disconnection of supply (where to disconnect). 6.2.2 Measures for Non-Technical Loss Reduction The measures for reducing Non-Technical losses depend on the factors that cause them and these will be discussed separately. 6.2.2.1 Measures for Controlling Illegal Connection 6.2.2.1.1 Stopping Theft by Direct Tapping Various measures can be taken by the electricity supply authorities to stop theft of energy by direct tapping as follows: Setting up of Vigilance Squads (where these have not been set up). Carrying out surprise inspections by Vigilance Squads. Periodic inspection of low tension (LT) feeders by the special Vigilance Squads for tracing unauthorized customers and direct tapping from line. Prosecution proceedings against persons indulging in theft of energy to secure convictions in the Court. Therefore, the materials, wire and equipment may be kept as evidence to be produced at the court hearing to prove the criminal offences. Imposition of heavy fines on customers found guilty of committing theft of energy. Starting a drive for regularizing unauthorized connections and simplifying procedure for new connections.

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6.2.2.1.2 Use of Insulated Conductors Use of modern and effective equipment, like Aerial Bunched (AB) Cables/partial insulated LT lines in theft prone areas along with high voltage distribution system can prove to be an effective deterrent to theft. The insulated cables make it more difficult to tap energy. The AB cables can be installed on the same poles used for street lighting and telecommunication circuits. This would save considerable cost and also avoid associated problems of communication. 6.2.2.1.3 Public Relation and Awareness Campaigns by the Utility Some change in the value system of the society is also needed. The opinion makers and social leaders should be involved to effectively tackle this massive social issue. Some amount of public relations work by the utility is needed to tackle this menace. It can help in publisizing widely that the effect of theft will result in tariff increase for the genuine customers, and also resulting in poor reliability and quality of supply such as having unreliable voltages, burnt appliances and failed transformers. 6.2.2.2 Measures for Controlling Meter Tampering The following steps can be taken to reduce such non-technical losses: The energy meter could be housed in a sealed box and made inaccessible to the customers. Multi-core PVC cables could be used as service mains instead of single core wires. Severe penalties may be imposed for tampering. Theft of electricity should be publicized as a social and economic crime to make the public awared and informed of the provisions in electricity laws in this regard. Extensive checking of metering accuracy and detection of tampering should be undertaken. Customers meters should be re-located outside of the customer premises. Potential link should be provided inside the body of the energy meter rather than inside the thermal cover. This prevents the potential link to be disconnected by the customer. Energy variation in consumption must be regularly checked for all categories of customers and suspected cases should be kept under close scrutiny through special checking. Strict control and monitoring of meter readers to prevent malpractice. There should be provision of swapping of duties between meter readers and ledger clerks. 6.2.2.3 Measures for Reducing Defective Metering and Meter Reading Error Some methods to prevent non-technical losses due to defective metering and meter reading error are given below Stringent installation procedures has to be spelt out clearly and in details indicating all the required checks and tests to ensure all checks are strictly complied with and all tests are carried out accordingly during meter installation. Use of electronic meters with tamper and load survey logging features for all categories of customer. Use of optical port for taking the reading for all categories of customers. Sealing of meters with seals and having proper seal management system. Installation of CTs/PTs in sealed boxes so that terminals are not exposed for tampering / bypassing. Testing of the metering system as a whole to ensure accuracy. Ensuring accuracy in meter reading and billing activities by generating exception lists and following up on exceptions.

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Carrying out regular energy audits covering the feeder and all end customers to ensure that there is no revenue leakage beyond the permissible technical loss. Having clearly visible and accessible seals that can be subjected to easy inspection Setting up standards/practices/ procedures that will reduce wrong meter reading Expert training for new meter readers Promoting the use of new reading technologies (Handhelds/AMR) Introduction of prepaid meters

In addition to these measures, non-working and defective meters should be identified and replaced. There are many existing services that are not installed with meters, these services should be installed with meters immediately. Similarly, a large-scale drive is necessary for bringing all unauthorized customers on to the rolls. Besides, utilities should purchase adequate quantity of meters both for fresh services and for replacement of the defective meters in the existing services. Metering facilities should be installed not only for measuring the electricity sold to the customers but also for monitoring the energy consumption at different voltage levels. The electromechanical meters tend to get sluggish over a period of time. Old meters should be replaced in a phases and in a timely manner with high accuracy static meters, especially for high value services customers and at places where the load varies substantially. Electromechanical meters should be replaced with electronic meters having ultrasonic welding. CT meters should be adopted instead of whole current meters for LT high value services. Advanced metering technologies, viz. prepaid metering and remote meter readers should also be used. 6.2.2.4 Meter Installation Meter installations have often been considered as a low skill, labour oriented activity. The quality of installations must be given due importance to guard against non-technical losses. The installation practices should take into account various classifications of meters Type of meter: These cover meters of different accuracy classes used for residential, commercial and industrial purpose. The different types of meters are as follows: single phase meters, 3 phase 4 wire Whole Current meters, 3 phase 4 wire CT connected meters, 3 phase meters for HT supplies (CT/PT connected meters), For the HT customers meter with tamper logging features should be used. Nature of application: The metering applications can be categorized under the following broad headings: Tariff metering (for customers), Inter utility tariff metering, and System metering (for feeders and DTs). Location of meters It is important to recognize that different applications require different installation practices and functional specifications for the meters. Mere focusing on the installation practices alone without proper functional specifications will not serve the purpose. The location of meters, i.e., type or nature of site where meters are to be installed is equally important, as installation practices differ as per the following types of site: Indoor Installations, Outdoor installations at/near transformers, and Outdoor installations on poles.

The major cause of loss of revenue has been due to improper installations practices that allowed tampering of the metering systems. Certain installation practices to prevent this are given below

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 A Visually Traceable and joint free incoming cable, or shrink wrapped sealed joint
helps to prevent tampering. Have a clear and visible seals that can be easily accessible for inspection Mount the meter and CTs inside a box with a clear window, where the internal terminations and connections cannot be accessed without breaking through the seal Ensuring height and location of the installation for easy readability of meters

Locating meters in public domain an alternate location for the meter can be on the poles from where service cables are laid. With this installation, the meters are positioned at a height in full public view. This makes tampering work such as bypassing the meter and direct connections difficult. 6.2.2.5 Measures for Reducing Tardy Billing and Poor Revenue Collection Correct billing and timely delivery of bills will go a long way in improving the collections. The normal complaints in the billing process are: non-receipt/ late receipt of bills, receipt of wrong bills, wrong reading/ status, table readings and wrong calculations. All these can be avoided by going for computerized spot billing as is already done in some countries. A thorough understanding by the readers on the status of the meter is a main factor for the success of the system. Common billing software must be adopted to exercise meaningful control, for review, storage and retrieval of the customer database. Efforts have to be made to minimize the bill processing time. Bill processing time is the average number of days that transpire from the meter read date until bill issuance. Monthly billing should be achieved for the convenience of the customer and also for psychological reasons. Stringent checks must be adopted in the billing process in order to plug the leaks. The billing department should detect the majority of billing errors internally before a bill is issued (e.g., based on a consumption reading that does not follow a customers billing history). This will greatly reduce the errors. In some Distribution Companies, bill delivery is problematic, particularly, in the zones where power theft is prevalent. The utility must have an effective bill delivery system with penal clauses for nondelivery of bills. The power distribution companies have a unique advantage of contacting millions of citizens at least once in a month. This should be utilized to the full advantage to explain the latest initiatives and seek the customers support in their own interest and in the interest of the company. In most power distribution utilities, delays in payments or non-payment are the major cause of nontechnical loss. Collection effectiveness refers to the Distribution Companys ability to collect payment in a timely manner against the bills it issues. Performance on this front is affected by the limited utilitys recourse for non-payment and delayed payment and the inability to write-off bad debts or negotiates payments with customers. The utilities should have a system where defaulters are short-listed immediately after nonpayment within due date with amount and time, etc. Special collection drives, coupled with intensive inspections, in the areas where the payment history is bad, brings positive results. For recovery of arrears, the utility should list defaulting customers; send reminders / notices; initiate legal proceedings; and Resort to disconnection, if need be. Enhanced customer convenience should be the guiding factor for smooth collections. This can be done by introducing multiple payment locations and not restricting them to a particular division/subdivision. Other steps that can be taken are: Provision of additional counters, depending upon the crowd, having Flexible Timings. Providing comfort to customers, e.g., drinking water, toilet, sitting arrangement at collection centers. Page 23 of 81

Installation of electronic cash register machines for collection and counting cash. Drop box facilities and roping in more collection agencies to eliminate lengthy queues.

The following are summary of the measure to reduce the tardy billing and poor revenue collection Setting up standardised practices and procedures that will reduce inaccurate billing. Introduce meter readings verification report from the billing system. Define meter estimation procedures. Setting up standards/practices/ procedures that will reduce meter estimations. (e.g. billing system locks the account for more than three estimations). Introduce prepayment, AMR (Automatic Meter Reading). Disconnect where the premises cannot be accessed after two reminders. Setting up standards/practices/ procedures that will reduce delayed billing for new customers. Introduce intelligent billing that will pick up all un-billed customers. Introduce door to door delivery service for bills. Setting up standards/practices/ procedures that will reduce cases of un-billed customers. Verify if all dormant customers/ accounts in the billing system are not supplied. 6.2.2.6 Additional Measures Utilities can adopt Management Information System (MIS) and carry out energy accounting and audit for preventing non-technical losses. Development ofMIS Effective use of Information Technology(IT) can play a major role in loss reduction and ensure better management efficiency of distribution utilities. Distribution utilities should institute MIS for effective monitoring and control. The reports that can be generated from MIS are given below: Feeder-wise/Distribution Transformer-wise loss, this could be done through by installing meter at the secondary side of transformer in order to detect NTL; Equipment failure and interruption analyses for the feeder; Customer analyses (kWh/kW); Realization Index ($/kWh) for each category and feeder as a whole; Consumption rise or drop by more than 20%; Payment update; Day-wise and amount-wise payments received from the customers; Communication with banks regarding payments realized; Identifying the defaulters; Recovery of arrears; Listing of defaulting customers; Sending reminders/notices; and Disconnections due. The asset and customer database of the Utilities often gets outdated over a period of time. It is therefore necessary to keep the database updated on a regular basis. The outdated information of the customer such as contract demand, multiplication factor (CT/PT) can be a source of error contributing to nontechnical losses. The utility should also have past track records on customers tampering their meters. This information is available from the analysis of the meter. (MIS can be effectively used for this purpose.) Energy Accounting and Auditing To tackle losses effectively it is necessary to compute the losses accurately, identify high loss areas and segregate these losses into losses due to commercial as well as technical factors. For this, utilities establish an Energy Accounting System area-wise to establish the losses on a continuous basis. Experience in many parts of the world demonstrates that it is possible to reduce the non-technical losses in a reasonably short period of time by carrying out energy audits, prioritizing the results and focusing on high loss areas. Energy accounting helps in devising a systematic plan for handling the non-technical loss in the system and in finding out whether the purpose has been adequately served.

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Accounting and auditing in the electricity sector involves evolving procedures and checks to account for energy from the generating stations down to the customer level. In the present scenario, the focus should be from grid substations at sub-transmission levels to supply power to customers at various voltage levels. The objective is to prepare an energy account so as to establish the energy input and quantum consumed by/billed to various categories of customers. This leads to identification of high loss areas, which, in turn, would help in finetuning strategies and action plans to reduce losses. The accounting system should ensure that the energy made available at substation, distribution feeder, distribution transformer and units utilized by customers, respectively, are checked to ensure the differences is reasonable and within the permissible limits. For proper energy accounting, metering equipment must be installed both at the sending and receiving ends. This activity should cover review of the existing energy accounting system, replacement of defective meters and installation of meters at appropriate locations for proper energy accounting. Important services, feeders, distribution transformers and towns should be taken up for this exercise. Installation audits are a short-term measure for preventing non-technical loss. These audits cover the inspection of the site and a detailed testing. Installation audits are needed to detect and correct any problems that may have resulted from poor installation practice or by unscrupulous acts by the customers. During the installation audits, aspects such as accuracy of the meters, accuracy of CTs and PTs, present load on the meter, fuses, ferruling of wires, evidence of tampers, etc. are checked. In addition, the terminals are opened for inspection and the connections re-tightened. Thus, the installation audits also cover the preventive maintenance aspects of meter installation. The frequency of installation audits have to be determined objectively and appropriately based on observations and conditions from the field and other data generated through energy audits. Typically installation audits need to be carried out at least annually for 3-phase or HV customers and at least once in 3 years for single phase customers. Most Regulatory Commissions have already specified the frequency for meter testing.

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Annex A (informative) Case Study Case Study of PLN Bali 1. Introduction The milestone of PLN Bali to become a World Class Service Company started in 2003 when the management of PLN Bali realized that PLN Bali must have a long term vision i.e. to become a world class services PLNs regional office by 2007. This vision was considered too optimistic and even impossible to realize at that time considering that it was the first time that PLN regional office declared that they want to achieve a world class services. Nobody would have thought that such vision was achievable. PLN Bali started its mission by mapping out its performance and compared it to Hong Kong Electric Company, which was considered as one of a World Class Company. One of criteria was the distribution losses must not exceed 7%. At 2003, distribution loss of PLN Bali was 12.14% and by 2007, the distribution loss has gone down to 6.86% and it did not stop there. By July 2009, the distribution loss has lowered further to 4.9%. The success of Bali has become a trigger for other PLNs regional office to realize that such a low loss is achievable. 2. Major operational statistics
Rated capacity peak load no. of customers energy sales electricity tariff distribution loss Unit MW MW customers GWh Rp/kWh % 2003 550 372 659,971 1,981 672 12.14 2004 550 385 673,233 2,079 678 9.72 2005 550 401 683,419 2,165 683 8.61 2006 550 422 698,725 2,211 691 7.53 2007 580 456 717,428 2,387 696 6.86 2008 580 482 738,654 2,563 712 5.92

3. Strategy of Loss Minimization Loss minimization strategy began with identifying source of losses in both technical and non technical losses. Technical losses depend on construction and configuration of distribution network while non technical losses depend mainly on the accuracy of energy transaction point. In terms of investment cost and time, minimizing technical losses require high investment and long period, while non technical losses incur lower cost and shorter period of time.

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Technical loss minimization started with strengthening distribution network through planning, construction, and operation and maintenance activities. At the same time, non technical loss minimization program was carried out by ensuring accuracy of meter and meter reading, and minimizing illegal tapping of supply. Theoretically, distribution losses could easily be identified and managed. However, experience showed that one important factor as to why the loss came down very slowly was because people is not awared of the significance of losses. Thats why one of the main strategies was to educate and to campaign against high losses. It was also realized that since the loss had become an important Key Performance Indicator for Regional Office, loss reporting must be guided to reflect real condition. Otherwise, the real loss could never be specified and people tended to report what they thought good enough to deliver. Once the reporting mechanism has been agreed, the loss management could be monitored and evaluated periodically to reveal the real condition. In line with the campaign to raise awareness on the importance of loss minimization, PLN Bali declared loss minimization action plan each quarter with branch office recognising the loss improvement of each branch office and reward them through a simple ceremony. Branch offices are ranked according to their loss level improvement for the award.
4. Loss minimization Activities

a) Technical Loss activities

No Activities 1 Uprating MV line 150 mm2 2 Uprating LV line 3x70, 1x50 mm2 3 Extension of LV line with inline > 5 4 MV line reconfiguration 5 New MV Line construction 6 Replacement of inline BC >> TC 10-16 mm 7 Pressing connector MV/LV 8 Pressing connector MV 9 Pressing connector LV 10 Pressing connector inline 11 Poor bare conductor replacement 12 LBS Lost Contact maintenance unit Kms Kms Kms Kms feeder 2004 15.6 12.8 13.3 0 6 2005 2006 218 65.2 107 61 37 0 6 50.1 8 0 0 2007 138 141 49 7 0 1.225 2008 64,64 34 23,58 1 5 0 39.865 366 4.187 35.312 0 0

customers 17.079 3.375 pts pts pts pts kms s/s 59.076 0 0 0 10,7 0 0 194

1 2 . 0 0 4 7 6 . 3 0 0 130 1.299 92 430 4.250 1 0 . 2 7 5 7 1 . 9 5 8 0 32 0 0 0 0 0

No

Activities

unit s/s s/s s/s s/s s/s s/s s/s

2004 114 60 21 49 0 0 0

2005 169 0 210 194 592 116 79

2006 57 0 48 33 33 0 189

2007 169 0 51 171 100 0 0

2008 130 34 84 48 48 0 0

1 Inserted s/s < 160 kVA 2 Trans load management 3 Transf. load balancing 4 Maintenance of main fuse Contact 5 Maintenance of Fuse Holder 6 Replacement of transf. Jointing 7 Replacement of Inlet / Outlet cables

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b) Non Technical loss activities and energy saving

Activities Illegal use of MV Customers Illegal use of LVV Customers Total Ilegal public lighting Meter reading corrections Multiply factor corrections Meter validation Stucked Meter Replacement of LV CT Replacement of MV CT Total Saving 2004 2005 2006 2007 2008 Saved Energy (MWH) 4,080 49,996 54,076 1,746 7,762 2,408 4,508 455 538 2,026 73,519

1,530 2,550 11,667 9,431 11,992 10,224 6,682 11,667 10,961 14,542 10,224 6,682 1,300 446 3,240 3,021 1,501 2,340 68 95 608 1,458 1,990 357 133 97 182 28 15 9 51 128 201 149 166 439 1,066 143 212 18,950 15,961 18,877 12,586 7,415

5. Conclusion

The success of PLN Bali Loss Minimization program shows that it takes full commitment from management and all members to fight against loss. Once the awareness has been raised, the management set up strategic plan with monthly action plan which can be verified and monitored regularly. It is important that the strategic plan is translated into action in a systematic manner and divided into stages for ease of monitoring and evaluation. Management must design reporting mechanism to ensure that the loss minimization progress was reported periodically and accurately. The rewarding system was also carried out to encourage competition amongst Branch Offices as well as a updating of loss targeting declaration which is done during regional office 3-monthly meeting. After 5 years of implementation, the significance of loss minimization movement has been internalised into PLN Bali personnel. Now is the time to search for a new method of loss minimization program instead of continuing with the same method. By constantly looking for new method, it is expected that the continuous improvement spirit will be maintained and refreshed, so as to meet future challenges with confidence.

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Graph-1: Annual loss 2003-2009

14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00

2003 2004 2005 2006 2007 2008 to July 09

Graph-2: Loss level of branch offices v.s. Flag Loss Semester I 2009

No 1 2 3 4 5 6 7 8 9

Branch AP Kuta AP Singaraja AP Gianyar AP Klungkung AP TM APD AP Negara AP Denpasar AP Tabanan 3,7 3,9 4,2 4,8 4,8 4,8 5,49 5,84 6,0 6

Loss (%)

Loss Flag Platinum Platinum Platinum Platinum Platinum Platinum Gold Gold Gold

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Graph-3: Staging towards Vision 2012

Consistent and Sustainable Focused and measurable target Reporting Application HR and IT preparedness Organizational Structure VISION

2012
T : 4,00%

Of DISTRIBUTION

2011
T : 4,50%

Prioritizing low cost and high impact

2010
T : 5,00%

Accuracy in Meter Reading

2009
T : 5,50%

Standard Design and Material

Declaration of Target & Program Honesty and Transparency Building

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Annex B (informative) Technical modeling and assumptions

Annex B-1: Guidelines for the application and approval of caps on the recoverable rate of Distribution System Loss (MERALCO, The Philippines)

Distribution Network Models For purpose of calculating the Technical Loss, the Distribution System shall be represented by Distribution Network Models that are appropriate for Three Phase Load Flow simulations. All equipment, devices and conductors of the Distribution System shall be characterized to capture the unbalances due to equipment construction, installation configurations, and connection and due to the unbalanced loading. In addition, the models must capture the Load-Losses and No-Load (or Fixed) Losses of all Distribution System equipment, devices and conductors except for metering burdens which are estimated separately. The Distribution System shall be modeled by an interconnected network represented by series and shunt impedances and/or admittance-parameter network in which a common node is used as a reference as illustrated in Figure A-1. Self and mutual impedance and/or admittances of each Distribution System element (e.g., line, transformer, etc.) shall be included.

Line Mode Overhead Sub-transmission and Primary Distribution Lines shall be represented by a three-phase pi () equivalent network with the corresponding self and mutual impedances of the phase and ground conductors as shown in Figure A-2.

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The series self- and mutual-impedances of conductors are given by the Carson equations for the series parameters:

The shunt parameters consist of self- and mutual-capacitive reactance due to the voltages (potential) and electrical charges of the conductors and their images below the ground as illustrated in Figure A-3 and can be obtained from the following equations:

If conductor w represents the overhead ground wire or grounded neutral wire, then vw is zero, and the matrix in equation (8) can be reduced using kron reduction technique and then inverted to obtain the following self- and mutual-capacitance of the lines:

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The admittance parameters (Y) can be obtained from the inverse of the capacitive reacta where w and f are frequencies in radians per second and cycles per second, respectively. Underground and Submarine Cables shall be modeled similar to the overhead lines with considerations to the self and mutual impedances of the core, sheath and armor conductors. Secondary Distribution Lines and Service Drops are similarly modeled except for the shunt capacitances and mutual reactance which may be neglected. Transformer and Voltage Regulator Models Transformer and Voltage Regulator Models shall be developed based on the structure of magnetic circuit and connections of the windings. The leakage (series) impedance and the magnetizing (shunt) admittance shall capture the self and mutual impedance or admittance parameters of the transformer or voltage regulator coils.

Shunt Capacitors and Inductors Shunt Capacitors shall be modeled as lumped loads that are connected to a Bus with either constant resistance and reactance or constant real and reactive power demand as illustrated in Figure A-4. The real component of the power represents the Fixed Losses in the capacitors while the reactive power is injected into the Bus that is required for power quality improvement.

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Shunt Inductors shall be modeled as lumped impedance (i.e., series resistance and reactance) parameters that are connected to a Bus as shown in Figure A-5. The inherent resistance of the inductor shall account for the losses which vary with the square on the current drawn by the inductor.

Series Inductors shall be modeled as series impedance like a Distribution Line without the shunt components and mutual reactances as illustrated in Figure A-6. The inherent resistance of the inductor shall account for the losses which vary with the square on the current through the inductor.

Typical Load Curves for different types of customers and customer monthly energy billing are the basic input to the Load Models. The total energy consumed by each customer is convolved to the normalized load curve for the type of customer to determine the hourly power demands as illustrated in Figure A-7. Power factor of the load are specified based on measurements or reasonable assumptions. Figure A-8 shows the step-by step procedure of converting energy consumption (kWhr in one billing cycle) to 24-hourly kW demands. The real power demand Pt for time t is obtained from the per unit (p.u.) demand Pt divided by the total area under the normalized load curve. Another set of data specifying the hourly demand is the hourly power factor (pft) to compute for the hourly reactive power demand (Qt). These real power and reactive power may be divided into three components to represent constant power, constant current and constant impedance loads if their coefficients are known. For purposes of segregating Distribution System Losses, Constant P and Q load models shall be acceptable. Figure A-9 shows the complete hourly real and reactive demand for a typical residential customer.

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Distribution Utility may develop more accurate load models by preparing as many load curves as possible through a load survey for each type or even sub-type of customers that can capture seasonal variations. Also, different load curves may be used for weekdays and weekends.

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Annex B-2: Loss Factor Calculation Annex B-2.1: PEA (Thailand) Loss Factor Coefficient Calculation
Table A: Load Measurement Data Time 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Total I (A) 100 90 85 80 70 75 90 130 160 200 190 190 185 180 190 195 185 180 190 190 195 190 160 120 3620 I2 10000 8100 7225 6400 4900 5625 8100 16900 25600 40000 36100 36100 34225 32400 36100 38025 34225 32400 36100 36100 38025 36100 25600 14400 598750 B A = 598750/(200 x 24) = 0.62 Step 3# Calculate A and B coefficient by analyzing the loss factor equation. Loss Factor = A x Load Factor + B x (Load Factor)2 , A+B =1 0.62 = A x 0.75 + B x 075 2 = (1-B) x 0.75 + B x 0.5625 = 0.69 = 0.31

Step 1# Calculate Load Factor (LF). Load Factor =

Y_

Load Current / ((Maximum Load Current) x 24)

= 3620/(200 x 24) = 0.75 Step 2# Calculate Loss Factor (LLF). Loss Factor = ( Load Current)2x24)

Y_

Load Current2)/((Maximum

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Annex B-2.2: EVN (Viet Nam) Technical Loss and Non-Technical Loss Calculation
1. Background Electrical Energy Losses - AA (kWh) are the losses incurred in the transfer of electricity over a Transmission and distribution network includes Technical loss - AAT (kWh) and non technical loss AAC (kWh).
AAT Losses vary with line length and depends on the amount of power being transferred. Overall losses can vary from year to year as they depend on factors such as network configuration, conductors, transformers, utilization level, load profile and power factor of the system (level of reactive power support), etc.

To implement losses mapping and bring out suitable measures to reduce power losses, annually calculate technical losses and non technical losses are very importance. 2. Technical losses calculation There are two components of technical losses on a distribution network. a. Load Losses: These losses depend on the electricity being supplied through the distribution network. These losses are proportional to the square of the current being supplied through the network equipment such as sub-transmission, distribution and, LV lines and distribution transformers.

Load Losses are calculated on the relevant part of the network under peak demand condition using PSS/ADEPT software. Peak Losses are modeled in PSS/ADEPT using peak demand measure or calculate from daily load curve and energy consumption for each bus (i) in the network. A feeder has n buses, operation in duration T (hrs), energy consumption is A (kWh) and max demand is P (kW). Load at each bus can be calculated as follows: Pmax i = 3. U. I max . cos or

Pmax i = P . (Ai /A) Qmax i = [ (Pmax / CosT)2 - Pmax2 10.5 S.S i = (Pmax i / CosT)2 J The result of load losses is collected from report using PSS/ADEPT. Load losses of transformers can be calculated separate as follows: Load Losses = (Losses at Rated MVA) x ( Smax /SRated MVA )2 The load current is not constants which is vary as a function of times

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The energy losses are calculated:

The energy losses are calculated using Load Losses and appropriate Load Loss Factor (LLF) as follows: Load Energy Losses (kWh) = Load Losses at Peak Demand (kW) x T (hrs) x LLF LLF is load loss factor or load curve factor is calculated as follows: LLF =
2

Si

1 24

b. No-load Losses: These losses are fixed and do not depend on the load. These losses arise from transformers, capacitors etc. The No-load Losses for transformers, capacitors are obtained from manufacturers data and test sheets. The associated energy losses are calculated as follows: No-Load Energy Losses (kWh) = No-Load Losses (kW) x T (hrs) c. Technical losses: These losses is included load losses and No-load loss and calculated as follows:
AAT (kWh) = Load Energy Losses (kWh) + No-Load Energy Losses (kWh)

Technical losses (%) AAT % = (AAT / A ) * 100% 3. Non technical losses Total losses (%)
AA % = [(AINrUT AOUTrUT)/AINrUT] 100% = (AA / A ) * 100%

Non technical losses (%) is calculated as follows AAC % = AA % - AAT %

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The methodology can show as the figure follows:

8 is disturbances cause by practical data and methodology so AAA % and AAA % are approximate results but they are very valuable to bring out treatments power losses.

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Annex C (informative) Loss management practices of HAPUA member Annex C-1: Distribution Losses in HAPUA member

Annex C-1.1 Technical Loss

PART A: Overview of Power System (2008) Member Country Voltage Level (kV) Max. Demand (MW) Gen. Capacity (MW) Energy Buy (GWh) Energy Sales (GWh) Total System Losses (%)

Brunei Darussalam Cambodia Indonesia 230,115,22, 0.4/0.23 500,275,150,70,20, 0.38/0.22 115,35,34.5,25,22, 12.7,0.4/0.23 500,275,132,33,22, Malaysia Myanmar 11,6.6,0.415/0.23 230/132/66 33/11/6.6/0.4 1 15/ 69/ 34.5/ 13.8/ 13.2/ 6.24/ 4.8/ 0.460/ 0.230 400,230,66,22, 6.6,0.4 230, 115,69, 12,24 0.4/0.23 115,69,33,22, 0.38/0.22 500/220/110,35,22, 15,10,6, 0.38/0.22 14,007
1203

293 21,120

300 21,580

1618 144,367

1460 128,810

9.78% 10.78

Lao P.D.R

401

308.74

509.95

1,969.64

13.17%

19,722.6
6621

6621.76 29,623

90,650.2 4847 26,873 (Includes 74GWh own-use) 41134

HV: 2.17% M Va n dL V :8 . 6 9 % TL : 6.8% DL : 20% 9.28%

4,790

The Philippines (MERALCO) Singapore

5,946 7,584.42

10,493 43,604

3 3.14%

42,002

Thailand (MEA)

Thailand (PEA)

14,089.58 12,636

15,213

95,540

91,145

4.66%

Vietnam

65,890

TL: 2.5% DL: 6.7%

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Member Country Brunei Darussalam Cambodia Indonesia

Number of Customers 324,069 38,844,086

Energy Sales (GWh) / Voltage level MV=136 LV=1017 HV: 11,628 MV: 44,875 LV: 71,251 Total: 127,754

Circuit Length (km) HV=265 MV=816 LV=1,697 EHV: 5,874 HV: 28,310 MV: 261,163 LV: 353,762 HV: 1,861.62 MV: 12,653 LV: 11,070.71 HV: 19, 552 circuit-km MV & LV: 548, 981 km HV-6140.47 MV-20699.25 LV-13591.95 15,606

Number of Employees 2,354 42,626

Remark

EHV: 500 kV & 275 kV HV: 150 kV & 70 kV

Lao P.D.R Malaysia

629,213 7,329,727

3,040 29,210

Myanmar

1,969,862

The Philippines (MERALCO)

4,570,646

4847.03 HV-969.42 MV-1841.87 LV-2035.85 115 kV: 184.527 34.5 kV: 8,011.880 13.8/13.2 kV: 167.943 Below 13.2 kV: 17.053 460/230 V: 18,491.751 Total: 26,873.155 41134

14433

~ 6,000

Singapore

1.25 million

Thailand (MEA)

2,797,513

HV: 3,927 MV: 19,304 LV: 18,771 Total 42,002 H.V: 20,419 M.V: 40,782 L.V: 26,506 Total 87,707 (2007)

Thailand (PEA)

14,600,420

Transmission: 5800 Distribution: 22600 HV:42.84 (230kV), 1,491 (115/69) MV: 15,600 LV: 24,807 H.V: 8,701 M.V: 289,328 L.V: 450,424 EHV: 3455 H.V: 220kV: 7988 110kV: 11786 MV: 124910 LV: 142652

1574

8,648

27,521

Vietnam

11,876,913

85000

Page 41 of 81

PART B: Please specify Equipment Specification related to Technical Losses Calculation

Utility Name : EDC ( Electricite Du Cambodge ), Cambodia Power Transformer Transformer Rating (MVA) 50 kW Loss Load loss No-load at 75 C loss 22 kV 39 200 Short-circuit Impedance (Percent at 75 C) 10

Distribution Transformer: Three phase transformer Transformer Watt loss Rating 22 kV (kVA) No-load loss Load loss 50 230 1200 100 300 1750 160 420 2500 250 600 3400 320 650 4000 400 780 4700 630 1200 6300 1000 1400 10800 1250 2050 1500 1500 2300 17000 1600 2300 17000 2000 2700 22500

Short-circuit Impedance (Percent at 75 C) 4 4 4 4 4 4 4.5 6

Capacitor Capacitor Sizing (kVAR) 150 200 275 288,75 412,12

Watt Loss No-load loss Load loss 3W/kVAR 3W/kVAR 3W/kVAR 3W/kVAR 3W/kVAR

Page 42 of 81

Utility Name: PT. PLN (PERSERO) INDONESIA

Power Transformer Transformer Rating (MVA) 5 10 15 30 60 kW Loss Load loss No-load loss at 75 C 6 32 8.5 42 75 14 103 23 220 38 Short-circuit Impedance (Percent at 75 C) 7.5 10 10 12.5 12.5

Distribution Transformer: Three phase transformer Watt Loss Transformer No-load loss 20 Load loss at 75 C Rating kV NewStd OldStd (kVA) NewStd OldStd 25 75 75 425 425 50 125 150 800 800 100 210 300 1420 1600 200 355 480 2350 2500 250 420 600 2750 3000 315 500 770 3250 3900 400 595 930 3850 4600 500 700 1100 4550 5500 630 835 1300 5400 6500 800 1000 1750 6850 9100 1000 1100 2300 8550 12100 1250 1400 2500 10600 15000 1600 1680 3000 13550 18100 2000 1990 3600 16900 21000 2500 2350 4000 21000 25000 Notes: New standard applied since 2009 Distribution Transformer: Single phase transformer ShortTransformer circuit Watt Loss Load loss at 75 Rating Impedance C (Percent at No-load loss (kVA) 75 C) NewStd/OldStd NewStd/OldStd 10 40/60 185/220 2,5 16 50 265/275 2,5 25 70/105 370/385 2,5 50 120/170 585/585 2,5
Capacitor Capacitor Sizing (kVAR) 300 600 900 1500 Watt Loss No-load loss Load loss NA NA NA NA NA NA NA NA

Short-circuit Impedance (Percent at 75 C) 4 4 4 4 4 4 4 4 4 4,5 5 5,5 6 7 7

Page 43 of 81

Utility Name: Electricite Du Laos (EDL), Lao P.D.R Power Transformer Transformer Rating (MVA) 1 8 10 12.5 16 20 22 25 30 kW Loss No-load loss Load loss at 75 C Short-circuit Impedance (Percent at 75 C)

Distribution Transformer: Three phase transformer Transformer Watt Loss Rating Load loss No-load loss (kVA) at 75 C 22 kV 50 210 1,050 100 340 1,750 160 480 2,350 250 670 3,252 315 900 3,900 400 980 4,600 500 1,150 5,500 630 1,350 6,500 800 1,600 11,000 1000 1,900 13,500 1500 2,800 19,800 2000 3,250 24,000 2500 3,700 28,200

Short-circuit Impedance (Percent at 75 C) 4 4 4 4 4 4 4 4 6 6 6 6 6

Distribution Transformer: Single phase transformer Transformer Short-circuit Watt Loss Rating Impedance Load loss (Percent at 75 at 75 C (kVA) C) No-load loss 10 60 145 2 20 90 300 2 30 120 430 2 50 150 670 2.2

Page 44 of 81

Utility Name: TENAGA NASIONAL BERHAD, MALAYSIA

Power Transformer Voltage Transformer (kV) Rating (MVA) kW Loss Load loss (at CMR) RM 6,385 RM 6,385 Auxiliary loss (at CMR) RM 11,219 RM 11,219 Short-circuit Impedance (Percent at 75 C) at nominal tap 13.5% 13.5%

No-load loss (at rated voltage) 132/33 90 RM 17,070 132/11 30 RM 17,070 * CMR = Continuous Maximum Rating 33/11kV MVA No-load loss (W) 16500 39000 80000 82000 120000

1.5 2 7.5 12.5 15 30

Short Load loss circuit at 75 C Impedance (W) 1600 5 9000 8 to 10 12000 8 to 10 12000 10 to 12 15000 10 to 12 22/11kV

Noload loss (W) 14500 80000 -

11/33KV Load Short loss at circuit 75 C Impedance (W) 2400 16900 12000 92000 22/6.6kV Load Short loss at circuit 75 C Impedance (W) 6000 9 to 10 10000 9 to 10 -

MVA No-load loss (W) 19500 47000 80000 -

1.5 2 7.5 12.5 15 30

Short Load No-load circuit loss at 75 loss Impedance C (W) (W) 2500 7.5 5000 42000 12000 75000 -

Distribution Transformer 33/0.433kV NoShort kVA load Load loss circuit loss at 75 C Impedance (W) (W) 100 1500 300 300 4500 730 500 7180 1020 5.00 750 9200 1385 1000 11850 1665 Capacitor Capacitor Sizing (kVAR) 160 at 525 V 900 at 11 kV

6.6/0.433kV and 11/0.433kV Load NoShort load loss at circuit loss 75 C Impedance (W) (W) 1500 300 2800 600 4100 1000 4.75 6000 1200 7000 1400

Noload loss (W) 1600 4400 7300 9200 11700

22/0.433kV Load loss at Short 75 C circuit (W) Impedance 240 700 900 5.00 1200 1500

Watt Loss No-load loss Load loss NA 2.33 kW NA 122 kW

Page 45 of 81

Utility Name: Ministry of Electric Power No. 2, Myanmar

Power Transformer

kW Loss Transformer Rating (MVA) 10 20 30 60 Single(20 x 3) 100 Single(33.33 x 3)

Distribution Transformer Transformer Rating (kVA) 50 100 160 200 250 315 400 500 630 800 1000 1250 1500 2000 2500 3000 kW Loss No Load Loss 11/6.6 kV 230 350 500 590 700 850 950 1100 1300 1500 1800 2100 2300 2900 3150 3800 33 kV 230 350 500 590

Short Circuit Impedance Remark

No Load Loss 9.8 19.6 20.3 30.0 19 20 26 28

Load Loss at 75C 72 135 143 175.5 100 111 110 146

(Percent at 75C) 10 11 12 12.5 18.81 23.03 Local Local Local Purchase Purchase

Load Loss at 75C 1050 1750 2350 2850 3250 3900 4600 5500 6500 9900 12500 14500 17500 22500 24000 28000

Short Circuit Impedance (Percent at 75C) 4.5 4.5 4.5 4.5 4.5 4.5 4.5 5 5 5.5 6 6.5 6.5 7 7 7

Page 46 of 81

Utility Name : MERALCO ( Manila Electric Company), The Philippines Power transformers

MERALCO, currently, does not specify load loss and no-load loss limits for new power transformers, since these are evaluated based on Transformer Life-cycle or Total Owning Cost (TOC), which takes into account not only the initial transformer cost but also the cost to operate and maintain the transformer over its life with the energy costs associated with load and no-load transformer losses considered as part of the operating costs. The TOC is composed of the purchase cost of the transformer plus the cost of load and no-load losses over the expected life of the transformer. However, MERALCOs procurement policy specifies monetary penalties for transformers whose actual load and no-load losses exceed the values guaranteed by the winning bidder. MERALCOs requirement for short circuit impedance is 10% at OA rating and 85 C (ANSI standard).
Distribution transformers The TOC methodology is also used when evaluating distribution transformers from different suppliers. However, maximum allowable total loss in percent of the transformer rated kVA are also set, as shown in the following tables: Pole-mounted distribution transformers Total loss in % of kVA Rating transformer rated kVA 25 37.5 50 75 100 167 250 333 1.50 1.50 1.20 1.20 1.20 1.20 1.00 1.00

Padmount distribution transformers Total loss in % of kVA Rating transformer rated kVA 75 (1 ph) 167 (1 ph) 500 (3 ph) 750 (3 ph) 1000 (3 ph) 1500 (3 ph) 2000 (3 ph) 1.2 1.2 1.0 1.0 1.0 1.0 1.0

Line capacitor banks (three-phase) Bank Size Voltage Level 1800 kVAR 34.5 kV 600 kVAR 13.8 kV and below

Watts Loss ---

Page 47 of 81

Utility Name: SP PowerGrid, Singapore Power Transformer Transformer Rating (MVA) 75 kW Loss No-load loss 20.5 Load loss at 75 C 257 Short-circuit Impedance (Percent at 75 C) 16.8%

Distribution Transformer: Three phase transformer Transformer Watt Loss (In kW) Rating No-load loss Load loss (kVA) at 75 C 22 kV 6.6 kV 1000 (22kV/LV) 1 5 1000 (6.6kV/LV) 1 5 1500 (22kV/LV) 1.7 7.5 10000 (22kV/6.6kV) 7.5 30.5

Short-circuit Impedance (Percent at 75 C) 4.8% 4.2% 5% 9%

Distribution Transformer: Single phase transformer (Please specify if you have other transformer sizes) - SP PowerGrid does not have any Single phase transformer. Capacitor (Please specify if you have other capacitor sizes) - SP PowerGrid does not have any capacitor at distribution level

Page 48 of 81

Utility Name: Metropolitan Electricity Authority (MEA), THAILAND Power Transformer (230/69,115kV) Transformer kW Loss Rating Load loss No-load at 75 C (MVA) loss 180/240/300 160 210 Remark: Cooling loss 15 kW Short-circuit Impedance (Percent at 75 C) >= 15.2

Distribution Transformer: Three phase transformer (69,115/12,24kV) Transformer Short-circuit kW Loss Rating Impedance No-load Load loss (MVA) (Percent at 75 C) loss at 75 C 30/40 20 75 10 36/48/60 20 85 12 Remark: Cooling loss 3.5 kW Distribution Transformer: Three phase transformer (12,24/0.4,0.23kV) Transformer Short-circuit kW Loss Rating Impedance No-load Load loss (MVA) (Percent at 75 C) loss at 75 C 15 70 160 1.2 - 4.4 45 160 360 1.2 - 4.4 75 220 580 1.5 - 4.4 112.5 255 840 1.6 - 4.4 150* 300 1,000 2.1 - 4.4 225 420 1,530 3.2 - 4.4 300* 480 1,860 3.9 - 7.0 500* 670 3,030 >= 6.5 750* 840 4,370 >= 6.5 1,000* 1,000 6,400 >= 6.5 1,500 1,200 10,000 >= 6.5 Remark: * Typical ratings Distribution Transformer: Single phase transformer Transformer Rating (kVA) 5 15 25 37.5 50 75 100 167 333 Watt Loss Load loss No-load loss 35 65 100 130 145 200 240 320 500 at 75 C 70 150 250 375 420 540 700 1,170 2,340 Short-circuit Impedance (Percent at 75 C) 1.2 4.4 1.2 4.4 1.2 4.4 1.2 4.4 1.5 4.4 1.6 4.4 2.0 4.4 2.0 4.4 3.9 5.0

Page 49 of 81

Utility Name: Provincial Electricity Authority (PEA), THAILAND Power Transformer Transformer Rating (MVA) 25 50 kW Loss No-load Load loss loss at 75 C 15 100 25 150 Short-circuit Impedance (Percent at 75 C) 8.5%-9.5% 15% @ 50 MVA

Distribution Transformer: Three phase transformer Transformer Watt Loss Rating Load loss No-load loss (kVA) at 75 C 22 kV 33 kV 50* 160 170 950 100* 250 260 1550 160* 360 370 2100 250* 500 520 2950 315 600 630 3500 400 720 750 4150 500** 860 900 4950 630 1010 1050 5850 800 1200 1270 9900 1000 1270 1300 12150 1250 1500 1530 14750 1500 1820 1850 17850 2000 2110 2140 21600 Remark: * Typical ratings * * Allow for high density area Distribution Transformer: Single phase transformer Transformer Watt Loss Rating Load loss (kVA) No-load loss 10 60 20 90 30* 120 50 150 Remark: * Typical ratings at 75 C 145 300 430 670

Short-circuit Impedance (Percent at 75 C) 4 4 4 4 4 4 6.5 or more 4 6 6 6 6 6

Short-circuit Impedance (Percent at 75 C) 2.0 2.0 2.0 2.2

Page 50 of 81

Utility Name: EVN Vietnam (Distribution network) Power Transformer Transformer Rating (MVA) 25 40 63 kW Loss Load loss No-load loss at 75 C 15 108 23 160 39 230 Short-circuit Impedance (Percent at 75 C) 10-14% 12-14% 14-16%

Distribution Transformer: Three phase transformer Transformer Watt Loss Rating Load loss No-load loss (kVA) at 75 C 22 kV 35 kV 50 135 140 650 100 205 215 1250 160 280 290 1940 250 340 360 2600 320 390 410 3330 400 433 460 3810 560 580 610 4810 630 787 820 5570 750 880 920 6920 1000 980 990 8550 1250 1020 1050 10690 1600 1300 1340 13680 2000 1500 1550 17100 2500 2870 21740 Distribution Transformer: Single phase transformer Transformer Short-circuit Watt Loss Rating Impedance Load loss (Percent at 75 at 75 C (kVA) C) No-load loss 10 15 52 210 2 25 67 330 2 37.5 92 420 2 50 108 570 2 75 148 933 100 207 1403 4 Capacitor Capacitor Sizing (kVAR) 100 200 300 600 900 1500

Short-circuit Impedance (Percent at 75 C) 4 4 4 4 4 4 4.5 4.5 6 6 6 6 6 6

Watt Loss No-load loss Load loss 8 16 21 42 63 105 Page 51 of 81

PART C: Role of Planning Criteria related to Technical losses Utility Name : EDC ( Electricite Du Cambodge ), Cambodia

1. Voltage Criteria (Volt Voltage Rating 230000 115000 22000 380 220

Normal Max 245000 123000 24000 424 244

Min 215000 107500 20002 360 207

Contingency Min Max 205800 239000 115000 119000 21000 22500 212 230

2. Distance & Loading Criteria Distance (km) Equipments HV Loop 93 MV Radial 20 LV Power Transformer Distribution Transformer 1 -

Capacity (MVA) 300 7 1.6 -

Percentage Loading Normal Contingency 80% 80% 80% 80% 80% 100% 100% 100% 100% 100%

3. Regulations related to Customer size connecting to Power network L.V. connecting: M.V. connecting: > 80,000 kWh/month H.V no connecting: 4. Typical L.V. conductor sizing Al 3x70 + 1x70 mm2 Al 3x150 + 1x70 mm2 Al 3x240 + 1x70 mm2

Page 52 of 81

Utility Name: PT.PLN (Persero) Indonesia 1. Voltage Criteria (Volt Voltage Rating 500,000 150,000 70,000 20,000 400 Min - 5% -10% -10% -10% -10% Normal Max + 5% + 5% + 5% + 5% + 5% Contingency Min Max - 5% + 5% -10% + 5% -10% + 5% -10% + 5% -10% + 5%

2. Distance & Loading Criteria Distance Equipments (km) MV Lines (main feeders) 5 - 20 MV Lines (laterals) 2 - 10 LV Lines 0.25 - 0.7 Distribution Transf. Power Transf. -

Capacity (MVA) 6 10 3-5 0.14 0.2 0.025 1.0 10 60

Percentage Loading Normal Contingency 50 70 100 50 - 70 100 50 - 70 100 50 80 100 70 140

3. Regulations related to Customer size connecting to Power network HV connected customers (150 kV) : 30 MVA and above MV connected customers (20 kV) : 200 kVA and above, traction. LV connected customers (400/ 230 V) below 200 kVA

4. Typical L.V. conductor sizing: 50, 70, 95 mm2, Al twisted XLPE insulated cable

Page 53 of 81 Utility Name: Electricite Du Laos (EDL), Lao P.D.R

1. Voltage Criteria (Volt Voltage Rating 115,000 35,000 34,500 25,000 22,000 12,700 400 230

Normal Max 118,450 36,750 36,225 26,250 23,100 13,335 440 243.8

Min 111,550 33,250 32,775 23,750 20,900 12,065 376 207

Contingency Min Max 103,500 126,500 31,500 38,500 31,050 37,950 22,500 27,500 19,800 24,200 11,430 13,970 360 440 207 253

2. Distance & Loading Criteria Distance Equipments (km) Radial System Loop Line System M. V. System Radial System Loop Line System L. V. System Power Transformer Distribution Transformer -

Capacity (MVA)

Percentage Loading Normal Contingency

80% rating 85% rating

100% (no time limit) 120% (with in 4 hrs) 100% (no time limit)

3. Regulations related to Customer size connecting to Power network

4. Typical L.V. conductor sizing AAC25, AAC30, AAC50, AAC70,AAC120,AAC150

Page 54 of 81

Utility Name: TENAGA NASIONAL BERHAD, MALAYSIA

1. Voltage Criteria (Volt) Voltage Rating 500 000 275 000 132 000 33 000 22 000 11 000 6 600 4 00 Min -5% -5% -5% -5% -5% -5% -5% -6% Normal Max +10% +10% +10% +5% +5% +5% +5% +10% Contingency Min -10% -10% -10% -10% -10% -10% -10% -10% Max +10% +10% +10% +10% +10% +10% +10% +10%

2. Distance & Loading Criteria

Equipments Transformer 11/0.4kV Transformer 33/0.4kV Transformer 22/0.4kV Tranformer 33/11kV Transformer 33/22kV Transformer 22/11kV Transformer 132/11kV Transformer 132/33kV Distance (km) Capacity (MVA) 100kVA 1000kVA 1.5MVA 30MVA <100% = <firm capacity of the substation. Firm capacity = Tot capacity of n Transformer in the substation minus the rating of Transformer with the highest capacity <100% =<50% 100% 100% Percentage Loading Normal Contingency

Cable LV Cable MV (11kV, 22kV & 33kV)

nil 100%

3. Regulations related to Customer size connecting to Power network

4. Typical L.V. conductor sizing LV ABC (Overhead): 120, 70, 25 LV cable (Underground): 300, 185, 120, 70, 25

Page 55 of 81

Utility Name: Ministry of Electric Power No. 2, Myanmar 1. Voltage Criteria (Volt)
Voltage Rating 230,000 132,000 66,000 33,000 11,000 6,600 400 Normal + 5 % Min 218500 125400 62780 31350 10450 6278 360 Max 241500 138600 69300 34650 11550 6930 440 Min 180000 103300 51600 26000 8600 5300 130 Contingency Max 250000 140000 68000 34000 12000 6900 440

3. Regulation related to Customer Side Connecting to power network HV MV LV connecting > 403919.2 MWh/month

4. Typical L.V Conductor Size - HDBC No. 8,6,4,2,1,1/0,2/0 - SC 60 mm2, 100 mm2 - U/G Cable 35/50/70/95/120/150/185/240/300 mm2

Page 56 of 81

Utility Name: Manila Electric Company (MERALCO), The Philippines 1. Voltage Criteria (Volt) Voltage Rating Min 220,000 110,000 69,000 34,500 13,800 480 230 -5% -5% -5% -5% -5% -5% -5%

Normal Max +5% +5% +5% +5% +5% +5% +5%

Contingency Min -10% -10% -10% -10% -10% -10% -10% Max +10% +10% +10% +10% +10% +10% +10%

2. Distance & Loading Criteria Distance (km) Equipments H.V. System Radial System Loop Line System M.V. System Radial System L. V. System Power Transformer -

Capacity (MVA) 171 (110kV) 108 (69kV)

Percentage Loading Normal Contingency

90% Line rating

100% Line rating 100% Line rating 90% Line rating (OH) 70% Line rating (UG) 130% Line rating 100% (no time limit) 100% (no time limit) 130% (no time limit)

343(110kV)108(69kV) 90% Line rating 32 (34.5kV) 13 (13.8kV) 0.17 (230V) 33 (115-13.8kV) 50, 83 (115-34.5kV) 150, 300 (220-115kV) 150 (220-69kV) .010,.025,.050,.075 (34.5kV-240V) (13.8kV-240V) 70% Line rating (OH) 50% Line rating (UG) 80% Line rating 70% rating 90% rating 80% rating

Distribution Transformer

3. Regulations related to Customer size connecting to Power network L.V. connecting: Demand < 2 MVA M.V. connecting: 2 MVA :5 Demand < 10 MVA H.V connecting: Demand > 10 MVA

4. Typical L.V. conductor sizing secondary line 3/0 AWG ACSR

Page 57 of 81

Utility Name: SP PowerGrid, Singapore 1. Voltage Criteria (Volt Voltage Rating 22000 6600 400 230 Normal Max 22440 6798 424 243.8 Contingency Min Max 20680 23320 6204 6996 376 424 216.2 243.8

Min 21560 6402 376 216.2

2. Distance & Loading Criteria Distance Equipments (km) M. V. System 27 Radial System 27 Ring Circuit System 0.8 L. V. System Power Transformer Distribution Transformer -

Capacity (MVA) 4.5 (6.6kV) 15(22kV) 0.3 (400V) -

Percentage Loading Normal Contingency 50% Line rating 50% Line rating 50% Line rating 50% rating 50% rating 100% Line rating 100% Line rating 100% Line rating 100% (no time limit) 100% (no time limit)

3. Regulations related to Customer size connecting to Power network L.V. connecting: M.V.connecting: H.V connecting: Demand < 277 kVA 277kVA < Demand < 25.5 MW Demand > 25.5 MW

4. Typical L.V. conductor sizing - 500mm2 Cu single core 300mm2 Cu 4 core - 300mm2 AL 4 core - 150mm2 AL single core 50mm2 Cu single core

Page 58 of 81

Utility Name: Metropolitan Electricity Authority (MEA), THAILAND 1. Voltage Criteria (Volt) Voltage Rating 230,000 115,000 69,000 24,000 12,000 400 230 Normal Min 209,000 106,400 63,650 21,800 10,900 371 214 Max 231,000 117,600 70,350 23,600 11,800 410 237 Contingency Min Max 198,000 242,000 96,012 123,000 57,335 72,500 21,600 10,800 362 209 24,000 12,000 416 240

2. Distance & Loading Criteria Distance (km) Equipments H.V. System 230kV 115kV 69kV M.V. System 24kV 12kV L. V. System Power Transformer Distribution Transformer * Maximum loading -

Capacity (MVA) 649 324 194 19 9 0.3 40 60 0.005 1.5

Percentage Loading Normal* Contingency 50% Line rating 90% Line rating 100% Line rating 75% Line rating 75% Line rating 90% Line rating 2 bays : 75% rating 3 bays : 80% rating 80% rating 75% (within 4 hrs) 95% (within 4 hrs) 110% (within 4 hrs) 100% Line rating 100% Line rating 100% Line rating 2 bays : 125% rating 3 bays : 120% rating 100% Line rating

3. Regulations related to Customer size connecting to Power network L.V. connecting: Demand < 300 kVA M.V. connecting: 300 kVA < Demand < 15 MVA H.V. connecting: Demand > 15 MVA 4. Typical L.V. conductor sizing 35, 70, 120, 185 mm2

Page 59 of 81

Utility Name: Provincial Electricity Authority (PEA), THAILAND 1. Voltage Criteria (Volt Voltage Rating 230,000 115,000 33,000 22,000 380 220 Normal Max 241,500 120,700 34,700 23,100 418 240 Contingency Min Max 207,000 253,000 103,500 126,500 29,700 36,300 19,800 24,200 342 418 200 240

Min 218,500 109,200 31,300 20,900 342 200

2. Distance & Loading Criteria Distance (km) Equipments H. V. System Radial System 50 Loop Line System 50 M. V. System 18 Radial System 27 18 Loop Line System 27 0.8 L. V. System Power Transformer Distribution Transformer -

Capacity (MVA) 100 100 8 (22kV) 10 (33kV) 8 (22kV) 10 (33kV) 0.09 (95A) -

Percentage Loading Normal Contingency 80% Line rating 50% Line rating 100% Line rating 100% Line rating

80% Line rating 50% Line rating 80% Line rating 75% rating 80% rating

100% Line rating 100% Line rating 100% Line rating 100% (no time limit) 120% (with in 4 hrs) 100% (no time limit)

3. Regulations related to Customer size connecting to Power network L.V. connecting: M.V.connecting: H.V connecting: Demand < 66 kVA 66 kVA < Demand < 10 MW Demand > 10 MW

4. Typical L.V. conductor sizing 50 mm2 and 95 mm2

Page 60 of 81 Utility Name: EVN Vietnam (Distribution network)

1. Voltage Criteria (Volt Voltage Rating Min 110,000 35,000 22,000 15,000 10,000 6,000 380 220

Normal Max 115,500 36,750 23,100 15,750 10,500 6,300 399 231

Contingency Min Max 99,000 31,500 19,800 13,500 9,000 5,400 361 209 121,000 38,500 24,200 16,500 11,000 6,600 418 242

104,500 33,250 20,900 14,250 9,500 5,700 361 209

2. Distance & Loading Criteria Distance (km) Equipments H. V. System (110kV) Radial System 50 Loop Line System 50 M.V. System 20 Radial System 30 20 30 Loop Line System 0.6 L. V. System Power Transformer Distribution Transformer -

Capacity (MVA) 70 70 9 (22kV) 10 (35kV) 9 (22kV) 10 (35kV) 0.15 -

Percentage Loading Normal Contingency 80% Line rating 60% Line rating 100% Line rating 120% Line rating

80% Line rating 60% Line rating 80% Line rating 75% rating 75% rating

100% Line rating 120% Line rating 100% Line rating 105% (no time limit) 100% (no time limit) 130% (with in 2 hrs)

3. Regulations related to Customer size connecting to Power network L.V. connecting: Demand < 50 kVA M.V.connecting: 50 kVA < Demand < 10 MW H.V connecting: Demand > 10 MW* Remark: * Depend on the distance 4. Typical L.V. conductor sizing 50 mm2 , 70 mm2 and 95 mm2

Page 61 of 81

PART D: Impact of Regulatory Environment on How Distributors Control and Manage

Please provide your views on whether the current regulatory environment provides sufficient flexibility to enable distributors to optimize system losses, and whether you see any regulatory barriers to reducing the losses. Some views regarding impact of regulatory: ineffective penalty, political influence Utility Name: Manila Electric Company (MERALCO), The Philippines The current regulatory environment in the Philippines allows distribution utilities the liberty to implement projects/activities that provide high impact results as far as system loss reduction is concerned. In MERALCOs case, system loss-related projects or activities are funded and prioritized according to their loss reduction benefits. Both distribution utilities and the regulator share the same objective of finding ways in lowering the cost of electricity for the benefit of the end-users and one way of doing that is by bringing down the level of system loss. For MERALCO, we set declining targets over the medium-term, which is accompanied by a medium-term plan to ensure that these targets are achieved. Besides providing lower electricity cost to consumers, distribution utilities in the Philippines are also pushed to lower their system losses in order to meet the system loss cap and avoid penalties in the form of unrecoverable purchased power costs. The imposition of a system loss cap penalizes distribution utilities by disallowing recovery of system losses above the set system loss caps. For private distribution utilities like MERALCO, the existing system loss cap is set at 9.5%. The challenge for distribution utilities, especially those who are currently above the existing system loss cap of 9.5%, is meeting the new cap set at 8.5% by the regulator starting January 2010. In addition, the regulator has also promulgated a Rule last July 2009 which specifies that system loss should be reckoned on a monthly basis which does not take into account the inherent mismatch in measuring and accounting for the input and output energies. While MERALCO has already filed a petition for the amendment of this Rule so that system loss will be reckoned on an annual basis, the company nevertheless sees that while this Rule in place, distribution utilities will be forced to divert resources intended for system loss reduction just to address the mismatch.

Page 62 of 81

PART E: Loss Problem Statement

Brunei Feeder losses Overheating/ Overloading of Tr. And Cable Under loading of transformer Voltage drop Unbalance Load Low power factor Cable damaged Cable damage Bad connection Voltage drop Unbalance load Over and under loading of transformer Over loading of cable Low power factor Usage of high loss distribution transformer Long line feeders Lack of reactive power Bad Connection Unsymmetrical/Unbalance load Inaccuracy measurement of kWh meter due to technical imperfection Usage of high loss dist. Transformers Long line feeders. Feeder loss long feeders and small conductor side. Overheating / overloading of transformers Under loading of transformers Overheating/overloading of distribution power cables Voltage drop Unbalance load Low power factor Non-optimal loading of tr. Non-optimal operation & configuration of network Non-optimal sizing of cables Unbalance & overloaded LV Low pf (i.e. < 0.95) -

Cambodia

Indonesia

Laos

Malaysia

Myanmar The Philippines Singapore Thailand Vietnam

Lack of investment funds, low reserve margin Unreasonable network structure, long distribution network High portion of Hydro power in remote area Many medium voltage level 35, 22, 15, 10, 6 kV Lack of reactive power at some region High difference between peak and off-peak demand Bad load composition (high residential, low industrial) Lack of new technology equipments Lack of regulation on the technical specification and efficiency standard for electric equipments

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PART F: Strategies & Practices Brunei Cambodia Upgrading and reinforcement of 11 kV and 415 V networks Substation's load management Improve the existing system exploitation Modification of electrical structure Purchase optimization & management of transformer exploitation Incitement to MV clients to correct the power factor Recourse to autonomous production of electricity. Optimum length of MV line Focusing on 3 Ms: Maintenance, Meter and Meter reading Interception transformers Load rearrangement Add distribution tr. Anti theft: completely disconnected customers Resetting tr. taps Resolving/repairing meter VAR management program LV/MV capacitor placement VAR compensation on load side LV load balancing MV feeder re-conductoring Correction of over/under-loaded DTs Revitalize maintenance program for the secondary distribution system Scanning of overheating components Rehabilitation of dilapidated and over-extended secondary lines and service drops Vegetation management Strengthen QA process for new service connections Regular monitoring of feeder power factor/ power transformer and initiate correction as needed. Provision of low-loss transformers. Fulfillment of N-1 criteria with transformers operated in parallel and in pairs Standard sizes of cable are 500mm2 Cu/Single core/XLPE and 300mm2 Cu/3C/XLPE Provision of low-loss transformers. Fulfillment of N-1 criteria with transformers operated in parallel and in pairs Standard sizes of cable are 500mm2 Cu/Single core/XLPE and 300mm2 Cu/3C/XLPE Concentrated loads nearer to substations with shorter service cable lengths <250 m

Indonesia

Laos Malaysia
-

Myanmar The Philippines

-

Singapore

Thailand

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Vietnam

Reducing line length by relocation of the sub stations / installation of additional DTs. Investment for upgrade and improvement the power network Periodical checking and reinforcing the power network Standardized the medium network to 22 kV Installation of capacitors for improvement of power factor Request customers to improve their cos Optimize power network configuration Reducing the length of the lines by locations of the distribution substations/installation of additional distribution transformers. Exchange low-load and overload transformers Always manage load balancing Use low losses transformers and other equipments Replace old and unreliability of Power system for reducing the power cut off time and unfavorable operation mode
-

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Annex C-1.2 Non-Technical Loss

Cause of NTL Brunei Darussalem Power theft through unauthorised connection. Tampering of energy kilowattmeter

Measures of NTL Monitoring of meter tampering by customers Resealing of energy kWh meter Periodic inspection of customers kWh meter for any power thieving activities Immediate reporting of defective meters from meter readers is required for immediate action on meters replacement Energy audit on customers consumption

Cambodia

Loosening of meter-link meter bypass Obstructing meter discs movement by using magnet, candle wax and other foreign matters Errors in meter reading and recording Defective meters Improper estimation of Thief/ pilferage Tampering with meter seals Breaking control wires; illegal connection from overhead line Shorting control wires Wrong multiplication factors Under billing by providing the wrong meter readings.

Indonesia

Violation of Contract Terms in the use of electricity. Illegal connection. Inaccuracy of meter reading resulting in under billing. Meter reading cycle.

Ameliorate the readings Read the meters correctly, Reduce the error reading, Respect the meter reading schedule, Control the zero consumption, control the big customers in the billing process, Look for frauds, Reduction the number of Automatic meter reading Remote reading and continues monitoring Meter reading Management & control Meter reading using Portable Data Entry and Barcode on every meter Cross checking meter reading done by outsourcers Street Lighting Billing accuracy, including non metered li h i Page 66 of 81

Cause of NTL Indonesia (Continue)

Measures of NTL Minimize illegal street lighting (convert to legal metered street lighting) Billboard Updating and validating field data Check and confirm Contract Term Expired Date Power theft reduction through strengthened field inspection. Improvement of meter reading errors (Read the meters correctly) Respect the meter reading schedule Control the zero consumption, Control the big customers in the billing process, Immediate reporting of defective meters from meter readers is required for immediate action on meters replacement. Energy audit on consumers consumption. Improve Large Power Customers (LPC) billing process LPC physical checks on meter installations Ordinary Power Customers (OPCs) physical checks Protect meters Enhance Customer and Information Billing System (CIBS) Conduct Raids Install Remote Meter Reading system Improve detection of high loss area

Laos

Power theft a. Illegal Connection b. Meter Bypassing/Tampering Defective Meters Meter Reading/Data Entry Errors

Malaysia

Under-billing f Large Power Customers (LPC) Wrong meter data in Customer Information and Billing System (CIBS) e.g. wrong multiplying factor Faulty of aged meter (not detected or no action taken) Wrong wiring Blown fuse (not detected or no action taken) Over or under sized Current Transformers Meter reading error Theft by : Tempering of current transformers Tampering of potential transformers Tampering of meters Tampering of meter fuses, panel etc. Tapping supply form network Unbilled Customers

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Cause of NTL The Philippines ) The main cause of Nontechnical Loss in the Philippines is pilferage. Method of pilferage: Meter by-pass Direct tapping Meter tampering Use of control devices to alter motor registrations Controlled meter readings Deliberate alteration of meter wiring connections

Measures of NTL 1. DETECTION and APPREHENSION Expand Off Cycle Reading Project to address high tech meter tampering, controlled readings and meter substitutions by acquiring appropriate tools (laptops/PDAs) - Load profiling, error codes detection and diagnostic tests extraction capability of equipment Revisit GP Customers Enhancement of the Meter Seal Tracking System (MSTS) Intensify implementation of Color Coding of Meter Seals Intensify implementation of Color Coding of Meter Seals Intensify actions on the Kuryente Watch tips Pilot installation of AMR for customers SBU Loss and Circuit Loss Monitoring 2. DETERRENCE Legalization of ISC Colonies Relocate/Improve electric service facilities in ISC colonies Intensify Security Offices efforts in auditing performance/anomalies of contractors and regular personnel Seek assistance from government agencies in apprehending and prosecuting syndicates involved in pilferage of electricity Unauthorized energy use by customers require constant spot checks as well as low consumption alarms from the computerized Customer Management System. Where site visits revealed cases of tampered meter or supply bypassed. Customer is notified and informed of back charge. Review cases are sent to EMA for their follow-up.

Singapore

Pilferage Tampering

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Cause of NTL Thailand Pilferage Tampering Meter Reading Error Unmetered Supply Vietnam Inadequate management of Power Companies on supervising and managing energy usage of customers Poor perception of customers in using electricity. Especially with high electricity price > high trend for stealing energy Meters installed inside the customers houses > beyond the supervision of PC staffs and difficult for preventing and discover the energy theft Lack of severe penalty for power theft. Inadequate in meter management, improper in testing and calibrating meters.

Measures of NTL Reading and Observing the meter failure (error) Report the meter failure (error) Changing reader route every three months Audit sampling reader quality every three months Evaluate the reader quality Meter reading by outsourcing Annually, Monthly and Target group checking for suspect customer Introduce Automatic Meter Reading (AMR) Installing meters at transformer and distribution lines for identifying the high losses areas Establishing and reinforcing the inspection staffs Collaborate closely with local governmental authorities. Impose severe penalties for energy theft. Installing revenue meters outside the customers premises Periodically checking and replacing meters and VTs, CTs Implementing DSM program (TOU, efficient equipments, load control, etc.) Providing high accuracy portable meter testing equipments to meter checking staffs Reinforcing the investigation and verification of meter reading tasks, applying new technology (HHU, AMR, electronic meters, etc.)

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Annex C-2: Loss Management Practices Annex C-2.1 Technical Loss Management Practice of PEA

a) Existing Activity Measure 1: Optimal Capacitor Placement (OPC) To improve voltage quality and loss characteristic in a high voltage distribution system (22 kV or 33 kV), capacitor placement is one of the most effective measures for these purposes. The limitation of power system information and computer performance was the difficulties to include the main conditions of power system in a computation of optimal capacitor placement. At present, the necessary constrains are eliminated. Many power system softwares are developed to tailor for utilitys usage. Digital Simulation and Network Calculation (DIgSILENT) is the main software that PEA uses for power system analysis including optimal capacitor placement. Main concept of the optimal capacitor placement which be applied to PEA distribution systems can be described as follows: (1) Objective function and the constrains Minimize {Total Cost = {Energy loss Cost + Capacitor Investment Cost} Subject to The voltage of all positions will not violate the power quality assurance. For PEA practices, the placement of capacitor will not cause the voltage level exceed 105% of nominal voltage (23.1 kV for a 22 kV distribution systems and 34.65 kV for a 33 kV distribution system). In cases where voltage level improvement is the main purpose of capacitor placement, capacitor will be counted in the system until the voltage is not lower than 95% of the nominal voltage (20.9 kV for a 22 kV distribution systems and 31.35 kV for a 33 kV distribution system). (1) Power system modeling Power system modeling for OPC is identical to power system modeling for power flow because power flow calculation is a base tool of an optimal capacitor placement computation. (2) Capacitor type PEA uses both fix and switch capacitor. The voltage control, power factor control and time control scheme are used for switch capacitors in PEA distribution systems. (3) Load modeling To find the cost of energy loss, power flow calculation will be performed correspondingly with the variation of load. The accurate load model cannot be attained as load level varies unpredictably and capacitor lifetime is long. Load duration curve is adequate in representing the variation of load in a distribution system. The similar pattern of load duration curve is set to every load point of a distribution network when the optimal capacitor placement is computed. Load data of a distribution system that was collected at the substation is used for creating a load duration curve. Load data is sorted from largest to smallest and the curve will be drafted as the figure c.1.

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100% 1

Peak Load

2 Pay 3

Intermediate Load

4 Pmin Base Load

T1

T2

100%

Figure c.1: the creation of a load duration curve T1,T2, Pav and Pmin are selected by adjusting the area of 1 to be close to the area of 2 and the area of 3 to be close to the area of 4. (4) Optimization Technique There are 2 optimization techniques can be selected in DIgSILENT programs. These optimization techniques are (1) Gradient search and (2) Tabu search. For PEA practice, Gradient search is selected because it significantly takes less calculation time than Tabu search but the total cost of solution is a little bit difference. The concepts of Gradient search and its flowchart is expressed in item 6.1.3 of this report. (5) Financial Criteria Optimal Capacitor Placement is treated like an investment project. Many financial terms such as internal rate of return (IRR) and net present value (NPV) shall be evaluated in the process of optimal capacitor placement computation and the solution of OPC have to meet the financial criteria. The energy loss cost and capacitor investment is calculated in term of net present value. Energy loss cost (in term of net present value) can be calculated by
(

1 m 1 k
+ ) ( + (

n

1

E
loss t ,0
=

() QK
bt ,0
=

1 i
+

2 _______

(c.1)

) (

1
+ +

m
(

k 1
)

1 i
+

Eloss,t 0
=

is the value of energy loss of the first year (kWh). is the present cost of energy per 1 energy unit. (Baht/kWh) is the rate of energy cost growth. (%) is the rate of load growth. (%) is the discount rate which is the cost of capital for OPC investment. (%)

Kb,t 0
=

m k i

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Capacitor Cost (in term of net present value) can be calculated by 1 1 i n 1 (c.1) QQ ) 1 x 1
( + ) + (

1 i
+

C(Q)
x of capacitor cost). i

is the present cost of the installed capacitors from OPC computation. is the maintenance cost of the installed capacitors from OPC computation (% is the discount rate which is the cost of capital for OPC investment. (%)

If a solution of OPC is zero , it means that capacitor placement is not worth investing. However, if NPV of total cost is decreasing which implies that OPC investment can break through financial criteria (NPV of the OPC investment is greater than 0 or IRR is more than cost of capital), then the solution of OPC is a viable one. Measure 2: Load Balance Load balance is the main activity of PEA to reduce technical loss in a low voltage distribution system (380 V). At present, load balance activity is applied to a distribution transformer with load unbalance ratio over 10%. Meter size and phase of each load point is requested for load balance. The position of each meter and low voltage network configuration are ignored in the process of load balance. Work orders from this load balance scheme are attempt to balance load current in each phase. The advantage of this scheme is fast and simple. However, technical loss reduction may not meet the expectation because (1) Meter size may not be related to load level, (2) Load current and neutral current will not be minimized in every section and (3) load characteristic of every load point is difference. In order to improve the efficiency of load balance activity, new process has been developed since 2007. In this process, load balance will commence at the end of every lateral for minimizing current in every section. The information requirements for this process are: (1) Energy consumption of each load point. This information is selected to replace meter size. (2) Distribution network diagram. (3) Customer type and phase of each load point. The same customer type will be grouped and planned for balancing together. Customers in the low voltage distribution network of PEA are mainly domestic and small commercial type. In general, domestic customers, which form the majority, will be balanced first. In pilot areas [6], technical loss reduction has reduced energy loss by more than 50% than before implementation. The results correspond to figure 3. The main problem of load balancing, however, is the lack of data as mentioned in item 6.1.2

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b) Planned Activity Measure: The implementation of loss reduction research PEA and Chulalongkorn University had carried out technical loss reduction research from 2000-2008. The main objectives of this research are: (1) To improve technical loss calculation (2) To select the appropriate loss reduction methods for PEAs power systems. (3) To develop energy loss planning scheme. The main results of this research are: (1) New technical loss calculation process and software. New technical loss calculation process is developed based on the exiting information of load level and power system network. The differences in each type of power system (e.g. 115 kV subtransmission systems, 22/33 kV distribution systems and 380 V distribution systems) cause the difference of loss calculation algorithm. The software is developed on DIgSILENT platform by using its own programming language called DIgSILENT Programming Language (DPL). Typical Load Curves of PEA load research project are added to the process of calculation for predicting load level to supplement load information. (2) Technical loss reduction suggestion including concepts and processes. The main suggestions of technical loss reduction consist of: - Parameter setting scheme for the optimal capacitor placement of DIgSILENT. - Guidelines to modify the process of transformer size selection. (3) Energy loss planning scheme. Roadmap concepts are applied to the developed energy loss planning scheme. The most key concepts of this scheme are explained in item 5.1. At present, PEA is attempting to implement the research results. The first step of implementation is to apply the new loss calculation software in their service area. Ten out of of the twelve service areas have accepted to join this program and have selected portions of their service area to be pilot scheme areas for implementation. The next step is to apply the technical loss reduction suggestion and the energy loss planning scheme to pilot scheme areas and evaluate the result of implementation. If the feedback of implementation is sound, the related engineering manual and working procedures will be standardised for such work. The project is expected to be completed in 2011.

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Annex C-2.2: NTL Management Practice of PEA a) Existing Activity

Measure 1: Meter Inspection Protocols PEA has set guidelines and policies in dealing with electricity theft, as shown in Table C-2.2.1 below. Table C-2.2.2 shows the inspection schedules for the group responsible for inspecting highvoltage (HV: 115 KV, 69 KV, 33KV and 22 KV) and low-voltage (LV: loads with 380 V line-to-line) meters. The number of 220 V meters is too great to make a dedicated inspection effort, so the inspection workload for those meters goes to the unit-readers who are also trained to detect irregularity. Table C-2.2.3 shows the regular schedule for reporting and deadlines for analyzing the data on electricity theft collected in the field. Table C-2.2.1 PEA Policies for Billing Customers Who Perpetrated Electricity Theft Billing Service Target Timeframes 1) Billing for fines, revised rates, and 1) Within 7 office days of receiving results Meter depreciation for large customers from the Evidence Department, the fines are sent out. Revised rates and depreciation bills are sent out within 15 office days. 2) Billing for fines, revised rates, and 2) The revised rates and fines are both sent Meter depreciation for small customers out within 7 days of the reports of damaged meters. Revised rates and depreciation bills are sent out within 15 office days. 3) If the fines and bills in items 1 & 2 do not elicit any response from the customer within 3 months, the case is summarized and sent on to the legal department of the respective district office. Table C-2.2.2 Meter Inspection Protocols and Schedules for PEA Item 1) Regular Inspections 1. 1) 69 KV and 115 KV meters 1.2) HV and LV meters with CTs 1.3) LV meters 2) Inspections of large customers with violation records and customers in high risk businesses such as ice factories, etc. 3) Inspections for large customers that are recently installed/changed Goal/Schedule 1.1) All meters inspected twice a year 1.2) All meters inspected-once a year 1.3) Each year, at least 30% of all meters in each district will be inspected 2) PEAs task forces will compile a list and inspect all meters in these groups once a quarter. 3) All cases will be inspected within 30 days of the installation/change

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Item 4) Large customers with irregularities 4.1) Checking and isolating cases with irregular consumption or irregular behaviors for future meter checks 4.2) Checking for irregular consumption

Goal/Schedule 4.1) The comptroller reviews consumption and separate the irregularities within 15 days of meter readings 4.2) - Customers with irregularities and usage over one million baht ($25,000) a month will be checked Immediately - Low voltage meters are to be checked within 15 days of the request for checks - High voltage meters are to be Checked within 30 days 5) - A list of customers with 3 consecutive month of 0 unit readings is compiled each trimester - Within the following trimester, the meters will be checked and the reasons for the 0 unit reading would be reported

5) Checking small customers with 0 unit readings

Table C-2.2.3 PEA Guidelines and Schedules for Reporting Meter Inspection Results Operations and Results Report Due Dates

1. PEA operations: 1.1 Reports for routine meter checks 1. Reports of results in items 1.1 through 1.2 Reports for meters with past 1.6 are to be submitted to the district violations and suspicious offices for each month within the 7th of business groups the following month. 1.3 Major customers with recent meter Installation/changes 1.4 Results from checking large Customers with irregularities 1.5 Results from checking meters with zero unit reading 1.6 Results from fine and revised rates collections for large and small customers 2. Results reports for each district, 2. Every meter-checking activity results and combined with reports from item 1. results from fines/revised rates for each month are to be summarized and reported to the deputy head of each district. The deputy heads of districts then follow up and make necessary changes in operations, then a report is submitted for each month to the Electricity Economy Department by the 15th of the following month.

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b) Planned Activity Measures 1 Solving technical problems related to NTL Plan 1 Evaluating the quality of meters currently used Specific Actions 1. Study various statistics and studies related to the selection of meters and their usage including their brands, the amount being used, the amount damaged, reasons for damages, the processing of all cases related to damaged meters, and actual loss in monetary value. 2. Setting up an authoritative body to oversee the solving of future problems related to damages caused to meters. Plan 2 Supporting the development of technology Specific Actions 1. Setting up a body with funding for research projects on the development of automatic electronic meter readers for general users. This will involve creating TOR for various responsible parties in setting up the project and carrying out the study. 2. When the ideal meter has been designed, it has to allow for trial installation with all rights reserved by the Provincial Electricity Authority of Thailand. 3. Set up an evaluation body to follow up on the usage of the new meters including setting up a trial period at a national level. Plan 3 Using Prepaid Electricity Meter System Specific Actions 1. Study the feasibility of the prepaid system for general users by establishing a body and budget for the project and the study. 2. Develop a billing system for general users under the Prepaid System by setting up a body and budget for the project in doing so. This will involve setting up various TOR and proposals for designated bodies for Prepaid System Project and installation of such meters as well as the evaluation of consequential results. Measures 2 Solving non-technical problems related to NTL: the Management System of the Provincial Electricity Authority of Thailand Plan 1 Solving problems related to damaged meters Specific Actions 1. Stringent investigation to be carried out in cases related to damaged meters and electricity theft so as to create better understanding and clarity of the problems arising from both instances. 2. Change meters that have expired so as to prevent the usage of meters with poor quality in the system. 3. Study the need for meters in stock by looking at provincial statistics and data in order to identify how many meters are needed for each location. Page 76 of 81

4. Ensure the timely change of damaged meters by hiring appropriate meter reading companies to do the job. 5. Prevent electricity theft by designing a plan of action for inspection of meters at the national level in order to rectify illegal actions. 6. Restructure the organisation to incorporate a special unit in charge of processing cases related to electricity theft so that the unit is solely in charge of inspecting meters on a regular basis to investigate such cases. 7. Investigate into the factors affecting meters malfunctions and damaged in order to find solutions to prevent such recurrence in future. A good area to begin with would be those areas with highest incidence of meters malfunction or damage. 8. Set up realistic targets in reducing the amount of meters that malfunction or become damaged, and to provide clear projection between targets and budgets set for the purchase of new meters that are sustainable and manageable for Provincial Electricity Authority of Thailand. 9. Engage in public relations and information dissemination with the public at large in order to educate them about electricity theft and the consequences of such infringing actions as deterrent and evaluating the results of such initiatives on an annual basis.

Plan 2 Improve the quality of meter reading and work processes by Subcontractors Actions Steps 1. Provide technical training and standardization of the representatives of meter readers by setting up project to develop the knowledge and skills of meter readers working in the field and also testing their background knowledge and skills. 2. Set up partnerships between meter readers and the Provincial Electricity Authority of Thailand and outline the roles and responsibilities of meter readers to process cases involving the malfunctioning of meters and electricity theft systematically. 3. Inspect the work processes of meter readers so as to create clear standards and frameworks for all to follow. 4. Inspect users that pose the highest risk by creating tentative inspection schedules. 5. Enhance transparency in work processes, standards, and regulations between all agencies and officers involved in meter reading. Identify qualifications for meter readers and contractors that are suitable for the job. Plan 3 Improve the Management of NTL Actions Steps 1. Increase management standards as soon as possible including outlining an urgent plan for systematic inspection and investigation. 2. Improve the work processes between the central system and provincial systems so as to ensure timely and consistent sharing of information on cases related to meters malfunctioning and electricity theft. In addition, managing the usage of meters, improving the servicing time of damaged Page 77 of 81

meters and the timely processing of cases related to electricity theft should all be clearly defined in a systematic manner. 3. Improve the quality and assessment of meter readers by setting up clear assessments of the performance of meter readers and their supervisors who are in charge of reporting and processing cases related to electricity theft and damage to meters. 4. Improve the legal system by revising standards and work processes in prosecuting those engaged in electricity theft while also categorising users into specific groups. 5. Study fine rates in order to adjust current fines being charged for those engaged in electricity theft or those involved in causing damage to meters. 6. Increase rewards for those who report cases related to electricity theft so as to increase the incentives to report such cases. This can be done on a percentage basis (% of the amount gained by the PEA) and rewards should also be given to authorities and officers who take on the inspection and investigation of such cases. 7. Evaluate meters with 0 units by creating some additional service charge for those meters. 8. Representatives of meter readers should be transparent and should not engage in any forms of corruption with officers in the PEA. For this, stringent standards and guidelines should be established in assessing the performance of representatives and officers. Measures 3 Solving non-technical problems related to NTL: General Users Plan 1 Solving problems related to electricity theft by users in the private sector Specific Actions 1. Establish clear usage standards and limits in order to create a basis for inspection by training programmers and statisticians in evaluating and analyzing such trends. This should be conducted in a sustainable manner and should be consistent with users in various geographical locations. 2. Install mobile meters using PLC technology that the PEA is currently considering to improve the inspection of meters. 3. Change the installation methods of meters and the evaluation of their performance after installation by setting up a Call Center by incorporating the service system of Call Center 1129 in dealing with clients and the reporting of cases related to electricity theft. Measures 4 Solving problems related to public usage Plan 1 Solving problems related to public usage Specific Actions 1. Comprehensive inspection of electricity usage in public community areas by calculating the amount used in each area so as to create a basis for policy revision and recommendations in providing electricity for public usage. 2. Install meter readers in all public areas by setting up definite timelines and targets for each

area. Page 78 of 81

3. Improve the ways in which electricity is used in public area and disseminate vital information to all involved in the usage of electricity. 4. Engage in energy saving initiatives by including local communities in the usage of energy saving equipment for public places.

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Annex C-2.3: HAPUA Member accuracy meter check EVN (Viet Nam) Three phase meter check every 2 years Single phase meter check every 5 years PT. PLN (PERSERO) (Indonesia) Three phase meter check every 8 years

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Annex D: Bibliography
[1] Loss Reduction Research Project Report, Provincial Electricity Authority, 2002-2008 [2] Distribution System Loss Reduction Manual Project LR-1, Tennessee Valley Public Power Association, Booth & Associates, Inc. Consulting Engineers, 1994 [3] Non Technical Losses in Distribution System, Project Complete Report No.1, The HAPUA Working Group No.3-Distribution, May 2009. [4] Technical Losses in Distribution System, Project Complete Report No.2, The HAPUA Working Group No.3-Distribution, May 2009. [5] Distribution Loss Reduction and Efficiency Improvement, School of Engineering and Technology, Indira Gandhi National Open University, June 2008. [6] Meter Explorer Manual, excellent software innovation award of PEA, 2007.

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