USAID Sector Reform and Utility Commercialization (SRUC) Task Order – Quarterly Performance Report (Q1 FY2021)

Agency for International Development (USAID) to promote utility commercialization and equitable, effective reforms in developing countries' electricity systems. The project aims to enhance the financial viability and long-term sustainability of these systems, enabling their expansion and growth to establish the necessary preconditions for clean energy investments and a self-reliant power sector. The SRUC Task Order is implemented by Deloitte Consulting LLP, which works directly with USAID to assist countries and counterparts in assessing existing sector conditions and preparing new strategies and plans. The project includes technical and management functions, such as evaluations, sector reform workshops, designing and implementing new market structures, developing legal and regulatory frameworks, and providing training and technical assistance. In Q1 FY2021, the SRUC Team faced significant project technical delivery challenges and delays due to international travel restrictions and stay-at-home orders in response to the COVID-19 pandemic. To address these challenges, USAID extended the SRUC period of performance through June 2021. The SRUC Team continued its support of Papua New Guinea's (PNG) state-owned national utility, PNG Power Limited (PPL), under three of its four main Components: Component 1 (Data Integrity), Component 2 (Meters, Reading and Billing), and Component 4 (Customer Engagement for commercial and industrial customers). Under Component 1, the SRUC Team continued its support of PPL as it continues its large power user customer survey and database cleansing activity. The COVID-19 pandemic has impacted the implementation of these activities, which require onsite activities and often engagement with the customer. Additional support is needed to bolster PPL's capacity, which the SRUC team will continue to provide for the duration of the Work Assignment to help manage survey completion and database cleansing efforts. Under Component 2, the SRUC Team held three virtual training sessions in October 2020 for PPL staff, which looked to improve its manual meter reading, billing, and collections process for its large commercial and industrial customers. The SRUC Team also completed a Smart Meter and Advanced Metering Infrastructure (AMI) Roadmap this quarter to support PPL as it prepares for its transition to a new automated meter reading system that is being funded by the World Bank. Activities under Component 3 (Revenue Management), consisting of three short reports focused on loss analysis, customer segmentation, and implementation of leading practices for back-billing, have been delayed in the hope that the customer survey and database cleansing activities would be completed (if not further advanced) for the Team to leverage its findings in the analysis. Still, efforts to develop the large Customer Engagement Strategy (CES) under Component 4 have been pursued simultaneous to customer survey and data cleansing, anticipating that it could eventually incorporate the conclusions of Components 1 through 3. The CES report was completed this quarter and provided to PPL for review. A virtual training will be held next quarter. In Saint Lucia, the SRUC team continued its support of the technical working group, which is focused on developing the country's electricity Grid Code to enable increased integration of renewable energy supply. This support included coordinating two virtual technical exchanges with similar electricity sector stakeholders in Barbados and Jamaica, as well as facilitating a public workshop for stakeholder feedback on the draft grid code as well as process in maintaining it going forward. It is anticipated that the work in St. Lucia will be completed next quarter. In Barbados, the SRUC Team continued to work with the national regulatory agency, the Federal Trade Commission (FTC), to develop a communications strategy and accompanying outreach materials to support its promotion of Barbados' national energy strategy. The communications strategy will focus on short- to medium-term outreach solutions to target the promotion of energy efficiency and renewable energy, such as feed-in tariffs, interconnection of small-scale distributed generation, and energy conservation directed at specific stakeholder audiences. This work is also anticipated to be completed next quarter.