Fact Sheet. Energy losses

Transcription

1 Fact Sheet Electricity theft is a serious threat to Eskom and municipalities sustainability and South Africa s economic growth. Electricity thieves are robbing the country of billions annually revenue that could be used for other critical developmental projects. Electrocution due to electricity theft through unsafe illegal connections and meter tampering, cause many public fatalities every year, many of them innocent young children. The consequences are dire even before looking at the potential revenue utilities lose due to this criminal activity. The ripple effect of this serious crime reverberates through society. Everyone pays for electricity theft through higher prices, and other societal consequences: power outages causing production down-time, traffic congestion, household inconvenience and appliance damage, and a constrained power grid that impedes economic growth and job creation. Energy losses 1. Eskom defines energy loss as the difference between energy purchased as measured at the transmission networks and energy sold to all customers. These losses are experienced in the form of technical and non-technical losses:

2 2. Technical losses is a loss that is inherent in the system and refers to the energy lost in the electrical networks due to the flow of current or energisation of the system. 3. Non-technical losses occur mostly as a result of electricity theft. 4. Eskom s non-technical energy loss is estimated at approximately R4.88 billion for FY2016. The volume of energy lost is decreasing per annum but the price of electricity is increasing at a higher rate which result in the revenue lost increasing. In the FY2015 the losses were sitting at R 4.7billion 5. Of the R4.88 bn losses, 46% is residential and 54% is Business, industry Commerce and Agriculture (BICA) 6. Municipal losses for the FY2013 period were estimates at around R15.4bn ( This means that South Africa loses at least R20.2bn a year to electricity theft. Electricity theft 1. Electricity theft is not just a South African problem. Globally, billions are lost each year due to electricity theft. Whilst many associate electricity theft with developing countries like South Africa, Brazil and India, the reality is that even the most developed countries are also not immune. It is estimated that the US loses approximately $6 billion annually due to electricity theft, and the United Kingdom 299 million each year from gas and electricity theft resulting in electricity becoming the third most stolen commodity following credit card information and vehicles. 2. Electricity theft is a serious crime and poses a major threat to South Africa s power supply and the country s economy.

3 3. Forms of electricity theft include: a. Illegal connections b. Illegal electrification schemes c. Meter tampering and bypassing d. The buying and selling of illegal prepaid vouchers 4. Electricity theft is more than an inconvenience. It contributes to power outages and can lead to businesses closing down and jobs being lost. 5. Because large power users consume a larger volume of power than households. One instance of electricity theft by a business has a much bigger energy loss impact than electricity theft by a household. It is for this reason that Eskom s energy loss in the business, industry, commerce and agricultural sectors amount to double that in the residential sector. 6. Electricity theft is not just a township problem. It is a serious economic crime that occurs across all sectors of society and impacts all South Africans. No sector is immune. Perpetrators range from households in townships running illegal connections, or tampered meters in suburbs, to large power users in the various business sectors where power supply and meters are tampered with in a very sophisticated manner. 7. Electricity theft is not a victimless crime. The consequences of this serious crime include: Electricity theft and the resultant energy losses suffered by Eskom and municipalities contribute to increased electricity tariffs. The higher price of electricity further contributes to higher prices of e.g. food, transport and other consumer goods. Those who steal electricity have no incentive to be energy-efficient, as they are not paying for what they are using thus leading to unbridled consumption. Electricity theft in the form of illegal connections, meter tampering and bypassing, and the buying and selling of illegal prepaid power vouchers, make it difficult for Eskom to predict demand for power. All these illegal and unknown users on the grid could lead to power outages due to overloading of the system.

4 Electricity theft leads to the loss of innocent lives many children, adults and even pets die each year as a result of electrocution from unsafe illegal connections. Electricity thieves could face prosecution, disconnections and tamper fines. Revenue lost as a result of electricity theft can also be recovered from the customer. Power outages impact on economic activity, productivity is affected, businesses cannot operate and some even have to shut down permanently resulting in job losses. South Africa needs to drive economic growth in order to create jobs. Electricity is needed to power such growth. For a country that already has a constrained power supply, the additional impact of the massive energy and revenue loss due to electricity theft is a serious problem that cannot be ignored. Operation Khanyisa 1. Operation Khanyisa was officially launched in October It is a national partnership campaign aimed at fighting electricity theft and related energy losses, thus helping to ensure the quality and stability of electricity supply in South Africa. It aims to mobilise South Africans for legal, safe and efficient power use, with the goal of contributing to the future sustainability and economic growth of South Africa. 2. Operation Khanyisa is informed by a societal behaviour-change strategy to influence the voluntary behaviour of electricity consumers in the business and residential sectors to be responsible power users. The campaign s primary approach is to mobilise the country to be responsible power users by building understanding and awareness of the problem, impact and consequences of electricity theft, educating consumers on the dangers of electricity theft, energy efficiency and how to deal with electricity theft, mobilising citizens to stand up and speak out against electricity theft and to advocate for legal, safe and efficient power use, and encouraging people to report electricity theft to Crime Line. This is underpinned by a strong compliance drive to ensure legal power use, enhancing enforcement actions against perpetrators, and working with law enforcement agencies to ensure the investigation and prosecution of electricity thieves.

5 3. The campaign targets large and small power users in the business, industry, commerce, agriculture and residential sectors, as well as stakeholders such as organised civil society, and employees in the electricity industry. Operation Khanyisa Partners Partners have joined the campaign and are actively lending their voice and influence to the cause. 1. Partners play a pivotal role in mobilising the country for legal power use, and to take a stand against electricity theft. The core campaign partners are Proudly South African, Business Against Crime South Africa (BACSA), Business Unity SA (BUSA), Crime Line, the South African Local Government Association (SALGA) and Eskom. 2. Operation Khanyisa works closely with the South African Police Service (SAPS), the Hawks and the National Prosecuting Authority (NPA) to investigate and prosecute electricity theft perpetrators/suspects on serious charges such as fraud, racketeering and even sabotage or murder. Asset forfeiture is also applied where applicable. 3. Cracking down on electricity theft is a strategic national priority. The SAPS, the NPA and the courts are starting to view this crime in a serious light. Two benchmark cases have already pronounced strongly on this crime and saw stiff sentences handed down to electricity thieves. A first ever Guide to the Prosecution of Electricity Theft in South Africa, developed by Operation Khanyisa, is guiding the work of investigators and prosecutors in dealing with electricity theft. Enforcement 1. A key success factor in dealing with crime is to build trust and elicit action from the public to report suspicious or criminal activity. Prior to the launch of Operation Khanyisa electricity theft was a silent crime with very few tip-offs received. However, South Africans are now heading the call:

6 more than tip-offs have been received to date. Eskom and the relevant municipalities are hard at work responding to these. The utilities have recovered and protected revenue which could have otherwise been lost had the nation not responded to the call to action to report perpetrators. 2. Eskom s enforcement actions over the past three years ( ) have led to: a. More than 87 court cases convictions. b. Over 120 arrests for crimes relating to electricity theft. c. First racketeering charges and conviction relating to electricity theft in the residential sector resulting in the two accused (members of an illegal power voucher issuing syndicate) receiving a combined sentence of 111 years d. Various other investigations and court cases are underway e. In excess of R 689 million in revenue recovered f. More than R 121 million recovered in tamper fines g. Audits of over R 4.2 million meters and electrical supply points. h. Over disconnections by Eskom of illegal connections and tampered metres Call to Action 1. We call on all people in South Africa to take a stand: If you could save a child s life, why woudn t you? If you could save the country billions, why wouldn t you? If you could save ratepayers millions, why wouldn t you? If you could send an electricity thief to jail, why wouldn t you? Report electricity theft anonymously to Crime Line. Send a detailed SMS to (R1/SMS). Provide as much detail as possible. 2. Join the movement and support Operation Khanyisa. Unite. Speak up. Act. Be legal. Be safe. Be energy efficient. Encourage others to do the same. The power is in your hands! For more info visit:

7 operationkhanyisa.co.za