RURAL ELECTRIFICATION IN BANGLADESH AND TARIFFS-ITS IMPORTANCE ON SUSTAINABILITY OF POWER SECTOR...
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Transcript of RURAL ELECTRIFICATION IN BANGLADESH AND TARIFFS-ITS IMPORTANCE ON SUSTAINABILITY OF POWER SECTOR...
RURAL ELECTRIFICATION IN BANGLADESHRURAL ELECTRIFICATION IN BANGLADESH
ANDAND
TARIFFS-ITS IMPORTANCE ON TARIFFS-ITS IMPORTANCE ON
SUSTAINABILITY OF POWER SECTORSUSTAINABILITY OF POWER SECTOR
SHAH ZULFIQAR HAIDER, PEng General Manager, Noakhali PBS
Email. [email protected]
Cell. +880-1552-307218 23 January, 2008
PRESENTATIONON
BRIEF INTRODUCTION OF RESOURCE PERSON General Manager in Rural Electric Societies since 1989
Garrison Engineer/Staff Officer-Military Engineer Services
Expert-Energy, Infrastructure, Engineering, EE,RE, TQM etc
Training- O&M of Utilities from USA & TQM in Japan
Facilitator/Member-Nepal, India, China, Bangladesh etc
Publications at International level
Member:
Guide Point Global Advisors, USA
American Council for an Energy Efficiency & Economy
International Association of Engineers
Global Village Energy Partnership (GVEP), UK
Infrastructure-India network, etc.
OBJECTIVE OF THIS SESSIONOBJECTIVE OF THIS SESSION
1.1. To have an idea about Rural To have an idea about Rural Electrification programme of BangladeshElectrification programme of Bangladesh
2.2. Importance of Tariff Importance of Tariff
3.3. How to minimize Cost of electricityHow to minimize Cost of electricity
4.4. Tariffs for sustainable Power sectorTariffs for sustainable Power sector
RURAL ELECTRIFICATION IN BANGLADESHRURAL ELECTRIFICATION IN BANGLADESH
Bangladesh once Least developed country
Provision of electricity constitutional right
Electricity distribution was by state
How to provide electricity to rural masses?
Through Rural Electric Societies (RES)or Palli Bidyut Samities (PBS)
Rural Electrification turned it to a developing country.
HOW IT STARTED . . .
Rural Electrification Board (REB) formed
REB helped form RES or PBS
To provide electricity to rural mass:• No-loss-no-profit basis• Sound financial basis & lowest cost• Area Coverage Rural Electrification• Poverty alleviation & minimizing disparityAchieved through…Efficient Management, TQM, Service/Training etc
WHAT IS RURAL ELECTRIFICATION PROGRAM?
RURAL ELECTRIFICATION IN BANGLADESHRURAL ELECTRIFICATION IN BANGLADESH
HOW IT STARTED...(continued)
AR
EA
CO
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RA
GE
RU
RA
L E
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CT
RIF
ICA
TIO
N P
RO
GR
AM
CONSUMER SERVICETOP MOST PRIORITYTOP MOST PRIORITY
CONSUMER – the only & main source of Incomeonly & main source of Income
Consumers GOOD LUCKGOOD LUCK for the organization
One Point Service (OPS) for the Consumers
The consumer submits his problem
OPS staff moves & gives solution to consumer.
PERFORMANCE TARGET AGREEMENT (PTA)PERFORMANCE TARGET AGREEMENT (PTA)
PTA executed between REB & RES
Rewards & Financial Penalty
Competition developed
The PTA Targets are . . .The PTA Targets are . . .
1. System Loss
2. Accounts Receivable & Payable
3. Debt Service Coverage
4. Equity status
5. Annual Load Factor
6. Revenue per Km of line, etc.
OTHER FACTORS FOR SUCCESS OFOTHER FACTORS FOR SUCCESS OFRE PROGRAMMERE PROGRAMME
1. DEDICATION
2. MOTIVATION
3. VILLAGE ADVISORS
4. DELEGATION OF AUTHORITY
5. JOB DESCRIPTION
6. THE RES (PBS) BOARD
CONSUMERS’ PARTICIPATION IN PBS ACTIVITIESCONSUMERS’ PARTICIPATION IN PBS ACTIVITIES
CONSUMER
BOARD DIRECTOR
RES (PBS)
VILLAGE ELECTRICIAN
CONSUMER
CONSUMER VILLAGE ADVISOR
CONSUMER
CONSUMER PARTICIPATION-BOARDCONSUMER PARTICIPATION-BOARD
RES (PBS) DEMOCTARIC INSTITUTION
1. The RES/PBS divided in Areas-Elaka
2. Max 15 Board Directors
3. Selection through democratic process
4. Consumers Annual General Meeting (AGM)
5. Financial Balance Sheet and Accounts
6. Executive Committee
7. Lady Directors selection
No-loss-no-profit & Sound financial basisNo-loss-no-profit & Sound financial basis
Tariffs to support these concepts Tariffs to support these concepts
Electric Extension on Revenue criteriaElectric Extension on Revenue criteria
Line extension on Area Coverage basisLine extension on Area Coverage basis
Power purchase rate=Actual cost of PowerPower purchase rate=Actual cost of Power
Revenue from Electricity sale-main incomeRevenue from Electricity sale-main income
Financial picture of RES- Form 550Financial picture of RES- Form 550
TARIFF IN R.E PROGRAMMETARIFF IN R.E PROGRAMME
The concepts of R.E program are in conflictThe concepts of R.E program are in conflict
Free Electricity (!)Free Electricity (!)
Who will pay?Who will pay?
Lower Domestic vs. Higher Industrial TariffLower Domestic vs. Higher Industrial Tariff
Profit by Industrial based cooperativesProfit by Industrial based cooperatives
What happens to Industries?What happens to Industries?
IS OUR TARIFF RATIONAL?IS OUR TARIFF RATIONAL?
SUBSIDIESSUBSIDIES
Rich countries provide subsidyRich countries provide subsidy
Developing countries discouragedDeveloping countries discouraged
Subsidies:Subsidies:
a.a. Lower electric bill- 50 to 100 KWH usage Lower electric bill- 50 to 100 KWH usage
b. Irrigation consumers b. Irrigation consumers
c. Subsidy to the Utilitiesc. Subsidy to the Utilities
How long?How long?
Who will payWho will pay??
Cost & Tariff not in harmony
Cost of Electricity may be higher:
Higher Plant & equipment cost
Lack of expertise - Inefficient procurement
Improper planning, No Master plan
Inadequate remuneration
In efficient management, Lack of commitment
High losses & pilferage
Transparency & Accountability
COST OF ELECTRICITY
HOW TO LOWER COST OF ELECTRICITY-1HOW TO LOWER COST OF ELECTRICITY-1
Energy Efficiency (EE)& Energy AuditEnergy Efficiency (EE)& Energy Audit
Lower Generation cost & Improve TransmissionLower Generation cost & Improve Transmission
Plant Factor & Load FactorPlant Factor & Load Factor
Power Factor- Consumer to Generation pointPower Factor- Consumer to Generation point
Load managementLoad management
Administrative cost & losses-reduceAdministrative cost & losses-reduce
Technical & Managerial skillsTechnical & Managerial skills
Reduction of Technical/Non Technical losses.Reduction of Technical/Non Technical losses.
HOW TO LOWER COST OF ELECTRICITY-2HOW TO LOWER COST OF ELECTRICITY-2
Reward, punishmentReward, punishment
Transparency & AccountabilityTransparency & Accountability
Minimum Political interferenceMinimum Political interference
Consumer awareness-misuse reduce & EEConsumer awareness-misuse reduce & EE
Minimum Disconnected consumersMinimum Disconnected consumers
Minimum illegal consumersMinimum illegal consumers
Maximum New connection in existing facilityMaximum New connection in existing facility
POWER QUALITY IMPROVEMENTPOWER QUALITY IMPROVEMENT
Electricity - Service & again GoodsElectricity - Service & again Goods
Just in Time ProductJust in Time Product
Improve Power Factor, minimum 95%Improve Power Factor, minimum 95%
Intelligent Power Factor controllerIntelligent Power Factor controller
Minimize Total HarmonicsMinimize Total Harmonics
Standardize Electrical productsStandardize Electrical products
Minimize GHG emissionMinimize GHG emission
Phase balance, Voltage improve & Lines ClearPhase balance, Voltage improve & Lines Clear
Adequate groundingAdequate grounding
POWER SUPPLY RELIABILITYEurope - 99.95+% supply efficiencyEurope - 99.95+% supply efficiency
Load ManagementLoad Management
Market closure - eveningMarket closure - evening
Industries holiday staggeringIndustries holiday staggering
Peak hour heavy use restrictionPeak hour heavy use restriction
Multi Tariff/TOU/Prepaid meterMulti Tariff/TOU/Prepaid meter
Consumer education & motivationConsumer education & motivation
Demand side managementDemand side management
Energy saving lamp & Electronic ballastEnergy saving lamp & Electronic ballast
Efficient equipment & Variable speed motorEfficient equipment & Variable speed motor
Industrial cooling, Technical losses reduce etcIndustrial cooling, Technical losses reduce etc
METERINGMETERING Cash Box Cash Box
Meters always best qualityMeters always best quality
Meters should read at lowest wattageMeters should read at lowest wattage
3 phase meters - 3 element 3 phase meters - 3 element
System adequately groundedSystem adequately grounded
Multiple Tariff Meter - Demand managementMultiple Tariff Meter - Demand management
Prepaid MetersPrepaid Meters
Tariffs vary for each cooperativeTariffs vary for each cooperative
Tariff on geo - economic condition Tariff on geo - economic condition
No-loss-no-profit concept for tariffNo-loss-no-profit concept for tariff
Renewable energy expensive than Fossil fuel
It should be cost effective & competitive
Higher tariff will discourage it
One time subsidy
No alternate to expansion of R E
Minimize GHG emission
RENEWABLE ENERGY
PRIVATIZATION OF POWER SECTORPRIVATIZATION OF POWER SECTOR
Why privatization?Why privatization?
Government owned Utilities inefficiencyGovernment owned Utilities inefficiency
Huge lossesHuge losses
Lack of accountabilityLack of accountability
Lack of commitmentLack of commitment
Privatization with sufficient protective rulesPrivatization with sufficient protective rules
Privatization is not transfer of Government Privatization is not transfer of Government
losses to private entitylosses to private entity
Sl. Category KWH Slab US Cent Euro cent
1 Domestic 000-100 4.0 2.78
2 Domestic 101-300 4.1 2.85
3 Domestic 301-500 5.8 4.04
4 Domestic Above 500 8.4 5.85
5 Commercial 7.3 5.08
6. Irrigation 4.1 2.85
7. Industry 5.7 3.97
8. Large Industry 5.6 3.90
9. Other 4.7 3.26
10 Cost of Electricity 5.5 3.83
NOAKHALI RES TARIFFNOAKHALI RES TARIFF
NOAKHALI RES EXPENSES (%)NOAKHALI RES EXPENSES (%)
Depreciation 12.90
Administra-tive 3.84
Consumer Selling
7.71
Power Purchase
62.64Operation & Maintenace
4.72
Interest on loan7.77
Tax0.42
CATEGORY WISE CONSUMPTION (%)CATEGORY WISE CONSUMPTION (%)
Others2
Domestic72
Irrigation3Industry
11
Commercial12
INFRASRTUCTURE AND ENERGYINFRASRTUCTURE AND ENERGY
InfrastructureInfrastructure::
Electricity-Generation-Transmission-DistributionElectricity-Generation-Transmission-Distribution
Energy- Conventional, Renewable, Gas etc.Energy- Conventional, Renewable, Gas etc.
Communication-Road, River, Train and AirCommunication-Road, River, Train and Air
Telecommunication & InternetTelecommunication & Internet
Water supplyWater supply
Rural Infrastructure.Rural Infrastructure.
(Accountability and Transparency)(Accountability and Transparency)
Analyze cost
Consumer mix and consumption.
Formulate Tariff “No-loss-no-profit basis”
If Losses exist, enhance Tariff or Subsidy.
Analyze economic effect due to electricity
If losses continue, analyze the whole system
COST AFTER MANAGEMENTCOST AFTER MANAGEMENT
Cost of electricity up to consumer-Minimum
Use Superior quality products
Renewable, One time subsidy
Human Resources Development
Adequate remuneration
Reward and Punishment
Power Factor improvement
Load & Demand Side Management
Energy efficiency & Energy Audit
CONCLUSIONCONCLUSION
Reduction of losses
Extensive motivation
Minimum Political interference or influence
Consumer education
Pilferage proof good quality meters
Infrastructure, Energy master plan
Accountability and transparency
Cost analysis for tariff fixation
Subsidy as required
CONCLUSION … continuedCONCLUSION … continued
SHAH ZULFIQAR HAIDER, [email protected]
General Manager, Noakhali PBS
THANK YOUFOR ATTENDING THE SESSION
QQ&AA
We welcome your feedback . . .We welcome your feedback . . .