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ATC&C

• “ATC&C Loss
• The Aggregate Technical, Commercial, and
Collections Loss.
• This loss is the difference between the amount
of electricity received by a Distribution
Company from the Transmission Company and
the amount of electricity for which it invoices its
customers plus the adjusted collections loss.
ATC&C
• Loss considered as part of the cost of
Generation, Transmission and Distribution
• Part of incentives mechanism for operators
• Higher loss higher tariff
• Lower loss low tariff
ATC&C
Sent-out from stations (GWh) GWh
Transmission Losses % of SO
Delivered to Distribution GWh
Distribution Losses % of DD
Delivered to customers GWh
Non-technical losses (non-billed energy) % of DC
Billed to Customers GWh
Revenue Collection losses % of
Sales where Revenue is collected GWh
Revenue based sales as % of Sentout
energy %
Total technical and non technical losses % of SO
Base line Losses used During
Privatization
Baseline ATC&C Loss
Distribution Company Figure
Abuja Electricity Distribution Plc 35%
Benin Electricity Distribution Plc 40%
Eko Electricity Distribution Plc 35%
Enugu Electricity Distribution Plc 35%
Ibadan Electricity Distribution Plc 35%
Ikeja Electricity Distribution Plc 35%
Jos Electricity Distribution Plc 40%
Kaduna Electricity Distribution Plc 40%
Kano Electricity Distribution Plc 40%
Port Harcourt Electricity Distribution Plc
40%
Yola Electricity Distribution Plc 40%
Legal basis for Loss validation
• Section 5.3 of distribution tariff order:
• Given the urgency of the reform/privatisation agenda and also taking
account of the uncertainty about the credibility of some of the data from
which aggregate losses are calculated, NERC and BPE have agreed that:
• Commitments on the reduction of aggregate losses will remain one of
the primary determinants for determining successful Disco core
investors;
• NERC has already commenced a study to create a credible industry
performance database, particularly as regards aggregate technical,
commercial and collection (ATCC) loss data, which will take at least 12
months to undertake;
• Pending completion of the ATCC database study, the privatisation of the
Disco sector may proceed and commitments made on the basis of
current data; and
• At the conclusion of the ATCC database study, any difference in losses will
be the subject of separate reduction targets to be agreed between NERC
and the relevant Discos; and commensurate cost implications will be the
subject of a Minor Review consultative process.
Guidelines on Sample selection for the
Validation Of Customer Numbers

• 50% of the business Units


• Include BU’s in different states
• 10% of service centres at selected BU’s
• In selected service centres 100% of 33kV
consumers
• In selected service centres 10% of 11kV consumers
• LV customer sample size to be 0.05% of MYTO-2
population
Level of losses Before and After
Validation (%)- Abuja Disco
Type MYTO 2 /Pre- After validation
Validation
Transmission 8.05 8.05

Technical/Distribution 9 13.36

Commercial 10 17.31

Collection 14 31.87

ATC& C 31 60.77
Draft Figures - Abuja
Effect on Retail Tariff Before and After
Load 2014
Sent-out from stations (GWh) GWh 28,747 28,747
Transmission Losses % of SO 8.05% 8.05%
Exports % of Exp 5.0% 5.0%
Delivered to Distribution GWh 25,111 25,111
Distribution Losses % of DD 8.0% 13.4%
Delivered to customers GWh 23,102 21,756
Non-technical losses (non-billed energy) % of DC 8.0% 17.3%
Billed to Customers GWh 21,254 17,990
Revenue Collection losses % of 2.0% 31.9%
Sales where Revenue is collected GWh 20,829 12,253
Revenue based sales as % of Sent out
energy % 72% 43%
Total technical and non technical losses % of SO 28% 57%
Average tariff N24 N40
Conclusions
• 5 Discos submitted their report
• Expecting the remaining within the week
• NERC consultants to be in place soon
• Verification of the studies and have final result
• How to manage the effect of 100% increase in
tariff after the validation

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