Transcript Document
PRESENTATION
ON
RURAL ELECTRIFICATION IN BANGLADESH
AND
TARIFFS-ITS IMPORTANCE ON
SUSTAINABILITY OF POWER SECTOR
SHAH ZULFIQAR HAIDER, PEng
General Manager, Noakhali PBS
Email. [email protected]
Cell. +880-1552-307218
23 January, 2008
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 SESSION
1. To have an idea about Rural
Electrification programme of Bangladesh
2. Importance of Tariff
3. How to minimize Cost of electricity
4. Tariffs for sustainable Power sector
RURAL ELECTRIFICATION IN BANGLADESH
HOW IT STARTED . . .
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.
RURAL ELECTRIFICATION IN BANGLADESH
HOW IT STARTED...(continued)
Rural Electrification Board (REB) formed
REB helped form RES or PBS
WHAT IS RURAL ELECTRIFICATION PROGRAM?
To provide electricity to rural mass:
• No-loss-no-profit basis
• Sound financial basis & lowest cost
• Area Coverage Rural Electrification
• Poverty alleviation & minimizing disparity
Achieved through…
Efficient Management, TQM, Service/Training etc
AREA COVERAGE
RURAL ELECTRIFICATION PROGRAM
CONSUMER SERVICE
TOP MOST PRIORITY
CONSUMER – the only & main source of Income
Consumers GOOD 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)
PTA executed between REB & RES
Rewards & Financial Penalty
Competition developed
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 OF
RE PROGRAMME
1. DEDICATION
2. MOTIVATION
3. VILLAGE ADVISORS
4. DELEGATION OF AUTHORITY
5. JOB DESCRIPTION
6. THE RES (PBS) BOARD
CONSUMERS’ PARTICIPATION IN PBS ACTIVITIES
CONSUMER
BOARD DIRECTOR
RES (PBS)
VILLAGE ADVISOR
CONSUMER
VILLAGE ELECTRICIAN
CONSUMER
CONSUMER
CONSUMER 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
TARIFF IN R.E PROGRAMME
No-loss-no-profit & Sound financial basis
Tariffs to support these concepts
Electric Extension on Revenue criteria
Line extension on Area Coverage basis
Power purchase rate=Actual cost of Power
Revenue from Electricity sale-main income
Financial picture of RES- Form 550
IS OUR TARIFF RATIONAL?
The concepts of R.E program are in conflict
Free Electricity (!)
Who will pay?
Lower Domestic vs. Higher Industrial Tariff
Profit by Industrial based cooperatives
What happens to Industries?
SUBSIDIES
Rich countries provide subsidy
Developing countries discouraged
Subsidies:
a. Lower electric bill- 50 to 100 KWH usage
b. Irrigation consumers
c. Subsidy to the Utilities
How long?
Who will pay?
COST OF ELECTRICITY
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
HOW TO LOWER COST OF ELECTRICITY-1
Energy Efficiency (EE)& Energy Audit
Lower Generation cost & Improve Transmission
Plant Factor & Load Factor
Power Factor- Consumer to Generation point
Load management
Administrative cost & losses-reduce
Technical & Managerial skills
Reduction of Technical/Non Technical losses.
HOW TO LOWER COST OF ELECTRICITY-2
Reward, punishment
Transparency & Accountability
Minimum Political interference
Consumer awareness-misuse reduce & EE
Minimum Disconnected consumers
Minimum illegal consumers
Maximum New connection in existing facility
POWER QUALITY IMPROVEMENT
Electricity - Service & again Goods
Just in Time Product
Improve Power Factor, minimum 95%
Intelligent Power Factor controller
Minimize Total Harmonics
Standardize Electrical products
Minimize GHG emission
Phase balance, Voltage improve & Lines Clear
Adequate grounding
POWER SUPPLY RELIABILITY
Europe - 99.95+% supply efficiency
Load Management
Market closure - evening
Industries holiday staggering
Peak hour heavy use restriction
Multi Tariff/TOU/Prepaid meter
Consumer education & motivation
Demand side management
Energy saving lamp & Electronic ballast
Efficient equipment & Variable speed motor
Industrial cooling, Technical losses reduce etc
METERING
Cash Box
Meters always best quality
Meters should read at lowest wattage
3 phase meters - 3 element
System adequately grounded
Multiple Tariff Meter - Demand management
Prepaid Meters
Tariffs vary for each cooperative
Tariff on geo - economic condition
No-loss-no-profit concept for tariff
RENEWABLE ENERGY
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
PRIVATIZATION OF POWER SECTOR
Why privatization?
Government owned Utilities inefficiency
Huge losses
Lack of accountability
Lack of commitment
Privatization with sufficient protective rules
Privatization is not transfer of Government
losses to private entity
NOAKHALI RES TARIFF
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
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
4 Domestic
Above 500
NOAKHALI RES EXPENSES (%)
Tax
0.42
Depreciation
12.90
Interest on
loan
7.77
Administrative
3.84
Consumer
Selling
7.71
Operation &
Maintenace
4.72
Pow er
Purchase
62.64
CATEGORY WISE CONSUMPTION (%)
Industry
11
Irrigation
3
Others
2
Commercial
12
Domestic
72
INFRASRTUCTURE AND ENERGY
Infrastructure:
Electricity-Generation-Transmission-Distribution
Energy- Conventional, Renewable, Gas etc.
Communication-Road, River, Train and Air
Telecommunication & Internet
Water supply
Rural Infrastructure.
(Accountability and Transparency)
COST AFTER MANAGEMENT
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
CONCLUSION
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
CONCLUSION … continued
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
THANK YOU
FOR ATTENDING THE SESSION
SHAH ZULFIQAR HAIDER, PEng
[email protected]
General Manager, Noakhali PBS
Q&A
We welcome your feedback . . .