REGTECH FOR NATIONAL MONOPOLY SUPPLIERS
See how ImperiumTM Compliance Risk and Business Assurance technology can underpin business decisions for national monopoly suppliers
ELECTRICITY SUPPLIER CHALLENGES
National monopoly suppliers are facing a combination of stringent license controls. These can include kWh rate controls (designed to limit overcharging, often with the side-effect of limiting profitability and investment), as well as the global requirement to adopt a carbon-free generated output. The drive of technology rollout towards digital transformation is also expected to promote efficiency and reduce revenue loss and leakages. All of these competing challenges demonstrate that it is not a simple operating environment for the supplier.
Technology that delivers... Revenue Integrity Business Assurance Compliance Risk
These types of utility are ground zero for RegTech deployed only as Revenue Assurance technology. With the right expertise and experience these types of businesses represent the ‘low-hanging’ Revenue Assurance fruit that can address electricity leakage and loss. Digital RegTech such as ImperiumTM can hugely benefit these businesses with projects typically delivering far greater results than the cost of the technology. ImperiumTM business cases can easily be built from projects, delivering large ROI as well as demonstrating the benefits of digital transformation technologies. ImperiumTM also facilitates the creation of Risk Management practices and data enrichment opportunities across the business.
It is still the most common global model that electricity is provided through public utilities that are granted monopolies and, in such markets, there can be well known significant energy loss from generation to consumption. Known and declared losses and leakages can often be quoted of 10%-20% of total generated capacity being lost or leaked before being available to be billed. These types of grids are typically lacking data and there is generally a lack of instrumentation across the grid including into the billing end of the operation. It is this leakage and lack of data cohesion across the generator/supplier that creates the ‘low hanging fruit’ opportunity for ROI based projects.
This far wider business benefit of advanced Risk Management technology allows the business to make significantly enhanced investment decisions backed by all the right data-based information and facts. These strategic gains are all made as self-funding advancements across the interconnecting and retailing infrastructure and, with strict license condition controls to be complied with there can be significant benefits to the monopoly.
Our workflow for mechanical electricity metering follows three phases:
Working to establish the validity of the data as presented for inclusion in billing to determine accuracy and completeness. The risks start with the lack of data or the credibility of it and very often a significant proportion of the work can be identifying where the data is missing or lacking. The validation of the primary controls and onward building toward the secondary controls is the single biggest part of the project, simply because the primary controls often do not generate data for onward assurance.
Working to establish whether or not the data as presented was correct. This is accomplished by asking the typical assurance type validity questions over records and record content. With ImperiumTM we can establish controls across the revenue, cost and fraud risk domains highlighting and creating a risk management function across the business.
Once all of the work in phases one and two are complete, the specific regulations pertinent to the business can be addressed. This process includes analysing the regulatory conditions and then mapping the data available to build the required controls for compliance reporting.