Itzick Michaeli

Revenue Protection Manager

Israel Electric Corporation

Itzick Michaeli

Revenue Protection Manager

Israel Electric Corporation

Joint Conference

Tucson Arizona

1-3 September 2009

“Revenue Protection”: Are we winning? “Revenue Protection”: Are we winning?

Overview of Israel Electric Corp. status Overview of IEC RP performance Tamper and bypass challenges in hostile territories Common tamper & theft cases IEC security department operations – videos InnovationsAre we winning ? Questions

Revenue Protection: Are we winning? Revenue Protection: Are we winning?

1

customer base:

2.4 million customers

Total demand for electricity

in 2008 :  50,161 Gwh

Israel electric Company

2

Legal Framework• 70-year concession expired March 1996• New Electricity Law provides for system of licenses –

expired 2006 postponed to 2007-8-9-10…• Israel Electric was granted licenses for transmission,

distribution and generation• Government target is 20% of power to be purchased

from independent power producers (IPPs)• Present IPP installed capacity: 0.7%

3

4

Current IEC Metering system

status :

1200 AMR Meters deployed

Around the country

120 AMR meters

6,000 2011 for annual usage of more than 500K KWH

26,000 ????

2,400,000 ????

Israel Electric Revenue Protection DeploymentIsrael Electric Revenue Protection Deployment

Marketing DivisionManager

IEC Revenue ProtectionManager

RP Team LeaderJerusalem District

RP Team LeaderNorthern District

RP Team LeaderTel-Aviv District

RP Team LeaderSouthern District

RP Team LeaderHaifa District

RP teams in 17 RegionalService offices

under the Districts

IEC total RPPersonnel

62

IEC total RPPersonnel

62

2.4 million

customers

20 RP trainedMetering

technicians

20 RP trainedMetering

technicians+

5

1.1 1.11.32.5 3 3 2.6 3 3.5

2.85

4.3 4.8

8.8

6.4 6.86

6.9

10.4

0

2

4

6

8

10

12

$ Million

1992 1994 1996 1998 2000 2002 2004 2005 2007

Year

2004

Total revenues

returned

Total revenues

returned

8

2008

Estimated

Annual Loss

40 – 50 $ Million

Estimated

Annual Loss

40 – 50 $ Million

6

Tamper and bypass challenges in hostile territories

Tamper and bypass challenges in hostile territories

Bedouin tribes

Palestinian towns

7

Yata village

)Near Jerusalem(

Palestinian Authority

Territory

22 KV Grid

bypass

Pirate 22 KV breaker

Pirate 22 KV feeding cables

8

Palestinian AuthorityElectricity Theft On a Huge Scale

Palestinian AuthorityElectricity Theft On a Huge Scale

Disconnecting

Register

conductors

Check Point

Tampering with the connection size Turns the metering cabinet into an oven

And demands constant cooling9

• $ 12,000,000 value of lost revenues returned from checked

villages & towns

• Many more al villages & towns to check and re-bill

• 30% Monthly increase in revenues from villages & towns

already checked

10

Theft of service

Bedouin towns

Southern Israel

4911

MagnitudeOf the

Bedouinproblem

Population ~ 200,000 doubles every 13 years

60% ages 0 – 1850,000 unauthorized buildings

12

Theft of service

Illegal Bedouin settlement

Jerusalem

Mountains

13

Common tamper & theft cases Common tamper & theft cases

Meter

Meter sentry

14

IEC National Security Unit IEC National Security Unit

• Electricity theft contractors

• Employees involvement

• Our secret weapon - Sting operations

15

16

Fixing the meter

Fixing the meter

17

Hot wireHot wire

5918

Tampering with the

meter coils

Tamperingwith the

meter coils

The Misplaced Meters CaseThe Misplaced Meters Case

19

InnovationsInnovations

20

Online tamper suspicion reporting

Online tamper suspicion reporting

21

Reporting employee details

RP team leader details

Tamper/Bypassdetails

Voice memo22

Check metersCheck meters6323

24

Involving the Police? Involving the Police?

6425

Involving the Police? Involving the Police?

64

Yes, we can try!! Yes, we can try!!

Operation - “Pick up the glove”

26

Law & OrderLaw & Order

Does the system work ?Does the system work ?27

Law & OrderLaw & Order

28

Where is the Problem ?Where is the Problem ?• Ineffective legislation

• Conviction rates for electricity related offences are low (very few complaints mature and go to court)

• Penalties are either insignificant or inappropriate

Lack of awareness amongst public

Law & OrderLaw & Order

What are we going to do about it ?What are we going to do about it ?

•Analysis of current legislation

• Compare to the Western World best practice

•Identify gaps within current legislature

•Determine the ideal Legislation

29

Law & OrderLaw & Order

What are we going to do about it ?What are we going to do about it ?

• Gain industry and governmental support

• Adoption of a legislative framework which is supportive of prosecution of offenders

Next :

Changes are required within the utility & the Judicial system to implement legislation supportive

30

Training judges Training judges

THE INSTITUTE OF ADVANCED JUDICIAL STUDIES, Jerusalem, Israel31

Are We Winning? Are We Winning? A wise Chinese once said:

When the wind direction switches ,some build walls and others build wind mills

32

Reinforced Revenue Protection Operations Cost V Prevention of Future Losses For a 3 years project

Future revenuesRecovered revenues

Predicted net benefit33

www.israel-electric.co.il72

THANKS FOR YOUR ATTENTION

Itzick Michaeli ISRAEL ELECTRIC

michaeli@iec.co.il

Questions?

www.iurpa.org

GilAugust 2004

GilAugust 2004