INTEGRATED SOLUTIONS FOR REVENUE ASSURANCE
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1 SMART ENERGY INTEGRATED SOLUTIONS FOR REVENUE ASSURANCE More than 140 utilities companies worldwide make use of Indra s Solutions indracompany.com
2 SMART ENERGY INTEGRATED SOLUTIONS FOR REVENUE ASSURANCE Integrated utilities offering for energy loss control and management There are a range of combinations of social, economic, technical and organisational factors behind the energy losses that significantly compromise economic performance and efficiency in the supply of commodities: electricity, gas and water. The control of technical losses and the management of fraud and default are two of the key challenges for Utilities in many countries, that result in an economic benefit for the whole system, with a payback time of less than a year in some cases. Addressing the related issues requires a comprehensive approach at both strategic and operational level. The development of a strategic plan for the reduction and control of losses, enables the identification of the origin of losses and the planning of mitigations actions. Identifying the current situation of metering at the border points and at the internal control points, and of the grid status, allows the extraction of the recommendations to reduce losses. The adoption of analytics and characterization tools allows the identification of losses, fraud and default behaviours as well as their evolution in time and geography and differentiation by customers clusters. The company s procedures and organisation need to be aligned with the newly set objectives thus ensuring the effective and continuous pursue for reduction of fraud and losses. By leveraging on the great expertise of business and technology, Indra offers to utilities an integrated solution and associated services, to control and steadily reduce energy losses. Complete solutions for the control and the reduction of energy losses, fraud and payment default in electricity, water and gas distribution. The investments undertaken to reduce losses guarantee the economic return Most of the utilities Indra has worked with, have successfully reduced their losses having invested less than 100% of the total annual energy cost with a ROI of less than 10 years. A sample of these achievements is presented below. The reduction of technical and commercial losses rapidly generates economic benefits. The payback time for the investment can be as short as less than a year, as in some of the cases shown above. Once this breakeven point is passed, the extra revenues can be passed on as a reduction in tariffs without compromising the balance between the system s costs and the revenues collected through the tariffs. ENERGY AND UTILITIES
3 Indra s offering for the management of distribution network losses By leveraging its extensive international experience, Indra has built an integrated offering, that by the use of software solutions and consulting services, enables customers to reduce the technical and commercial losses steadily and effectively. 1 Strategy - Plans for loss reduction and control The strategic plan for loss reduction defines the necessary actions to achieve the targets within a specified time period. Analysis of all potential factors that may csause the technical and commercial losses. Identification of the points where losses mainly occur, by performing a high-level analysis to evaluate the potential losses associated to the infrastructure, to fraud, to external processes or to internal procedural inefficiencies. Focus on the problems with the highest substantial impact which offer the highest economic return, thus providing the appropriate recommendations. The possible outcomes are a recommendation for reviewing the grid infrastructure, for a process reengineering, for process automation, for the implementations of software tools, for the simplification of the organisation, etc. The implementation plan based on the recommendations and an associated dashboard with the key performance indicators (KPIs) to monitor and evaluate the results during the deployment. The image below shows the analysis of different types of losses. ENERGY AND UTILITIES
4 2 Operations - Systems Support Control of energy/water flow and losses System allowing the comprehensive control of flows across the distribution grid, identifying losses, fraud and default risk, based on grid and supply point consumption metering. The main functionalities are: Daily monitoring of grid consumption evolution, identifying deviations from expected values. Detection and characterisation of areas, sectors, circuits and grid elements by level of losses and their evolution over time. Analysis of the potential fraud at the supply points with contract and by direct connection based on consumption patterns, supply characteristics, type of meter, etc. Planning and monitoring of the impact of actions for loss monitoring and reduction. Systems for the predictive analysis of fraud & default Fraud and default risk assessment, based on historical consumption data, supply characterisation and sociodemographic data. Fraud and default risk assessment based on metering analysis, optimising inspection efforts by focussing on the supply points with the greatest calculated risks. generally, a reduction of up to 70% of losses can be achieved by inspecting the customers with the highest 10% of fraud risk. Clustering supply points by potential for fraud/default, to promote targeted activities of customer sign-up, metering, prevention, awareness and collection. Design and effectiveness assessment for detection, deterrence and recovery actions, adjusting the sequence of fraud/default recovery actions for each end-customer based on a cost-benefit ratio. Cost/impact scenarios simulations based on the different behaviour customers segments, for an efficient assignment of resources. ENERGY AND UTILITIES
5 3 Operations - Loss Reduction Services Based on consulting best practices, and building on our extensive experience in the Utility industry, Indra supports its customers in the design, adaptation and optimisation of their grids, processes and organisations to ensure the effective and continuous reduction of losses, fraud and default. Grid architecture and measurement consultancy The grid architecture and measurement consulting begins with the identification of the current status of metering at the border points, at the internal control points and more in general, the grid status, to design an action plan focused on reducing losses. The plan generally includes actions such as: Securing the flow control of the company by checking all border points and large customers. Grid configuration optimisation and reactive power control. Identification of grid improvements to reduce technical losses: power factors, power transformers, electrical conductor changes, etc. Process consultancy Based on the identification and quantification of the underlying causes of losses and their categorisation, Indra offers expert consultancy to its customers, focused on the design and optimization of the processes and organisation. Review of the processes, tools and organisational structure associated to the operating model, and identification of the gaps between the existing and the required model. Process reengineering with an end-to-end view, analysing the impact that reengineering has at all levels of the company. Implementation of the designed operating model focussing especially on training and change management. 4 Outsourcing - Fraud control management process outsourcing (BPO) Indra is a leading provider of BPO services (Business Process Outsourcing), with a strong international presence and a consolidated energy customer experience of 10+ years. The pursue of excellence in process management, leads our work in supporting the customers objectives and in providing services to help them reduce their operational costs (OPEX). Indra has a specialised process outsourcing back-office team, operating according to the best management practises and applying Indra s own data technology. Indra s Outsourcing practice operates over a broad geographic extension and provides a complete set of services for fraud control management: Data treatment & validation Análisis Sistemático de Balances energéticos Anomalous losses Location Actions Performance Follow-up Monthly Losses Control Model calibration & Adjustment Technical losses analysis Loss reduction Actions determination Customer fraud Analysis 1. Prevention: awareness, deterrence campaigns, control of identifying documents, etc. 2. Detection: alarms management, records, documentation reception and analysis, power outages, etc. 3. Correction: reactivation of the service, debt management, administrative management of incidents, etc. ENERGÍA Y UTILITIES
6 References in Integrated solutions for revenue assurance For more than 20 years, Indra has been supporting customers in reducing and controlling energy losses Avda. de Bruselas Alcobendas Madrid (Spain) T F indracompany.com Indra reserves the right to modify these specifications without prior notice.
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