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2014-Activity-Report.Pdf REPUBLIQUE DU CAMEROUN REPUBLIC OF CAMEROON Paix – Travail – Patrie Peace - Work - Fatherland ---------------------- ---------------------- ACTIVITY REPORT 2014 TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................................................ i ABBREVIATIONS AND ACRONYMS ................................................................................. iii LIST OF FIGURES ................................................................................................................... iv LIST OF TABLES ..................................................................................................................... v Summary ................................................................................................................................... vi INTRODUCTION ...................................................................................................................... 1 BACKGROUND ........................................................................................................................ 2 1. OVERVIEW OF THE MAIN MISSIONS OF ARSEL ................................................. 3 2. ECONOMIC AND FINANCIAL REGULATION ........................................................ 4 2.1. Economic and financial viability of the sector ........................................................ 4 2.2. Auditing the capital asset spreadsheet update ......................................................... 4 2.3. Complimentary audit of the development and construction cost of the Dibamba power plant and audit of the DPDC company ......................................................... 4 2.4. Tariff structure study ............................................................................................... 5 2.5. Transfer of the shares of AES Corp. in AES-SONEL............................................. 5 2.6. Price regulation ........................................................................................................ 5 3. LEGAL AND STATUTORY REGULATION .............................................................. 6 3.1 Protection of consumers' rights and interests .......................................................... 6 3.2 Statistics of the call center's activities ..................................................................... 7 3.3 Legal Matters ........................................................................................................... 8 3.4 Attribution of permits .............................................................................................. 9 4. TECHNICAL REGULATION ..................................................................................... 11 4.1 Energy efficiency .................................................................................................. 11 4.2. Monitoring projects in the sector ........................................................................... 12 4.3. Projects follow-up matrix ..................................................................................... 19 4.4. Control of the quality of technical service ............................................................ 21 4.5. Preparation for low water ...................................................................................... 23 4.6. Contractual incentives ........................................................................................... 26 5. INTER-RELATED ACTIVITIES OF REGULATION ............................................... 29 6. COOPERATION .......................................................................................................... 32 7. INTERNAL ADMINISTRATION .............................................................................. 36 i 7.1 Administrative account .......................................................................................... 36 7.2 Electricity tower .................................................................................................... 37 7.3 Works to extend the present headquarters of ARSEL: .......................................... 39 7.4 Social Activities .................................................................................................... 40 GENERAL CONCLUSION .................................................................................................... 41 APPENDIX .............................................................................................................................. 43 ii ABBREVIATIONS AND ACRONYMS AER: Rural Electrification Agency ARSEL: Electricity Sector Regulatory Agency AES: Applied Energy Services AFARSEL: ARSEL Women Association ASCARSEL: ARSEL Sports and Cultural Association ADB: African Development Bank LV: Low Voltage CARPA: Partnership Contracts Implementation Support Council ECOWAS: Economic Community of West African States CEMAC: Economic and Monetary Community of Central Africa DPDC: Dibamba Power Development Company EDC: Electricity Development Corporation ENEO: Energy of Cameroon ENF: Unsupplied Energy ERRA: Energy Regulators Regional Association EUEI-PDF: EU Energy Initiative - Partnership Dialogue Facility REF: Rural Energy Fund FEICOM: Special Council Support Fund GEF: Global Environment Facility FISUEL: International Federation for Safety of Electricity Users IMF: International Monetary Fund TSO: Transmission System Operator HV: High voltage INS: National Institute of Statistics KPDC: Kribi Power Development Company MINEE Ministry of Water and Energy MINMINDT: Ministry of Mines, Industry and Technological Development MV: Medium Voltage MUPARSEL: ARSEL Staff Association PDER: Rural Electrification Master Plan PDSEN: Energy Sector Development Project SME: Small and Medium-sized Enterprises NPDP: National Participatory Development Programme UNDP: United Nations Development Programme PNEE: National Energy Efficiency Plan PTU: Emergency Thermal Programme RIS: South Interconnected Network RIN: North Interconnected Network RE: Eastern Network SCADA: Supervisory Control and Data Acquisition SONATREL: National Electricity Transmission Company iii LIST OF FIGURES Figure 1: Three-year complaint processing evolution ............................................................................. 7 Figure 2: The Agency's resources .......................................................................................................... 36 Figure 3: Initial budget .......................................................................................................................... 36 Figure 4: Collection of resources in relation to projections .................................................................. 37 iv LIST OF TABLES Table 1: Complaints registered by region ............................................................................................... 6 Table 2: Summary of the processing of complaints registered in conciliation session ........................... 7 Table 3: Statistics of the call center......................................................................................................... 7 Table 4: Inflow of calls made to the call center according to the nature of problems faced by consumers ............................................................................................................................................... 8 Table 5: Statistics on the permits granted since 2001 .......................................................................... 10 Table 6: Results of the study relating the establishment of the NEEP .................................................. 11 Table 7: Connection of 8 localities of the hydro cluster ........................................................................ 15 Table 8: Development of projects from 2013-2014 .............................................................................. 19 Table 9: Summary of penalties for unsupplied energy ......................................................................... 27 Table 10: Penalty amount relating to the objectives of the connection ............................................... 28 Table 11: Collection of resources .......................................................................................................... 37 v SUMMARY For the purpose of public information, this activity report gives an account of regulatory activities carried out in 2014. The Agency's objective through this report is to ensure transparent and effective regulation of the electricity sector. Themes covered focus on core regulation occupations namely: (i) economic and financial regulation for all activities contributing to the determination of electricity rates, (ii) legal and statutory regulation for aspects which concern operators and the protection of consumers' interests, among others, (iii) technical regulation which deals with topics on the enhancement of the quality and quantity of electricity supply, and related technology options. In addition to these three main regulation areas, the report also addresses inter-related activities or "inter-related regulation" as well as social life at the Agency. These include the essential information system geared towards controlling information asymmetry between the Regulator and operators, communication which allows transparency in the activities of ARSEL. The reader will appreciate growing efforts notably to control electricity pricing process, boost service quality control, protect consumers' rights and interests, and support project promoters and operators of the electricity
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