Success Story: Electric Distributor

Kaffa Solution helps a large distributor in the Southeast of Brazil recover millions in remuneration

Kaffa identified an alteration of technical losses, going from 6.34% to 6.86%, transformed into a recovery in the tariff review of R$187 million (USD 33 million) in four years

The Customer

The client is a century-old electric distribution company in the Southeast. Founded in 1905, it directly serves about 5 million customers and impacts more than 10 million people.

31 municipalities served

+ 10 million people impacted

Losses of ~800MM/year in vulnerable areas

4,500 employees

Company context

• Judicial recovery and loss of R$5.6 billion (USD 979 million) (2022)

 

• Concession area under drug trafficking conflicts and militia control (estimated losses of around R$800 million/USD 140 millions per year due to default and energy theft)

• Equipment diversity

• Highly depreciated equipment

 

• Network with significant usage time

The Challenge

The company’s market challenge was to accurately determine complex data related to technical losses in electric distribution. These data are presented to the regulatory agency and influence the values of the Periodic Tariff Review and, therefore, the companies remuneration.

Among the factors that influence losses are:

• Equipment and network lifecycle
• Quality at Distributor’s Geographic Database (BDGD)
• General registration issues
• Urban and rural network profile
• Electrical voltage variation
• Heating in electrical conductors by high electrical currents

Our Solution

In the Kaffa consultancy study, which included data from Distributor’s Geographic Database (BDGD) and electric flow analysis in various scenarios, were used Kaffa tools such as GPeR (Technical Loss Management) and the Regulatory Management Portal (PGR).

Anticipation of actions to cover tariff losses and investigate non-technical losses

Friendly and advanced environment for loss monitoring

Scenario simulation and integration with Distributor’s Geographic Database and OpenDSS

Get to know the product

Impact and Results

• The Regulatory Management Portal (PGR) technical loss management module identified a change in technical losses, going from 6.34% to 6.86%
• Recovery of R$46.8 MM annually in the Periodic Tariff Review (187 MM in four years of tariff cycle)
• Modification of ~800 urban electrical circuits with justifications to ensure system reliability

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