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Publication: Transforming Electricity Consumers into Customers: Slum Electrification and Loss Reduction Project in Sao Paulo, Brazil (PDF 888K) Created: 4/7/2009 - Modified: 6/15/2009 Click to read more.

Transforming Electricity Consumers into Customers:
Slum Electrification and Loss Reduction Project in Sao Paulo, Brazil

Transforming Electricity Consumers into Customers: Slum Electrification and Loss Reduction Project in Sao Paulo, Brazil (PDF 888K) Created: 4/7/2009 - Modified: 6/15/2009In Paraísopolis, the second largest ‘favela’ (slum) in São Paulo, almost all the households and businesses had illegal electricity connections, were exposed to dangerous network and wiring conditions and did not pay for service. Households and businesses consumed high amounts of electricity – on average 325 kWh/ month – due to the very poor condition of household appliances and electrical equipment and a lack of price signal to encourage consumers to use electricity wisely. In late 2006, USAID, the International Copper Association (ICA), and AES Eletropaulo, the electricity distribution company serving São Paulo, embarked as partners on an ambitious project in São Paulo, Brazil to test an integrated approach to slum electrification and loss reduction. This project aimed to reduce electricity losses from theft and non-payment while bringing more reliable and safer electricity service to its residents and dramatically reducing their electricity consumption to affordable levels.

The project entailed identifying, registering and numbering the individual households and businesses, educating the community about the benefits and responsibilities of having regular electricity service and of using electricity rationally, and the introduction of new technologies and techniques to reduce theft. To reduce consumption and enable service to be affordable for households, the project included energy audits of every household to identify energy efficiency opportunities, the replacement of three incandescent bulbs with efficient compact fluorescent bulbs in each home, the replacement of refrigerators in bad condition, and rewiring of homes with especially poor internal wiring.

A consumer poll, conducted after project completion and several months of billing, showed that most of the regularized families in the pilot area of 4,365 households and businesses were highly satisfied with their better quality service and the assistance received in improving their household energy efficiency. The energy efficiency and safety measures combined with the ‘price signal’ reduced consumption in the targeted 4365 households and businesses from an average of 250 kWh down to 151 kWh per customer. Results showed a 67 percent reduction in debt and a rapid payback for the distribution company of less than 1.4 years. AES-Eletropaulo has since rolled out the pilot to cover the entire Paraísopolis population of about 80-100,000 people and plans to replicate it in other favelas in São Paulo. Further details on this project can be found in the case study.

Download the Case Study, or contact Simone Lawaetz if you have any questions or would like a hardcopy of the Case Study.

 

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