EnergyBiz - September/October 2007 - (Page 16) » Financial Front foCusinG on latin ameriCa By andres GlusKi Editor’s notE The Edison Electric Institute recently honored AES with its 2007 Edison Award for its Latin America operations. EEI stated, “AES Latin America developed a knowledge management process that enables the business to readily transfer proven operational techniques among its more than 45 generation plants and nine distribution companies to improve operational performance.” EnergyBiz is pleased to provide the inside story. (GUEST OPINION) Turning consumers into customers Over the past 14 years, AES has faced the challenges of operating and investing in Latin America and has developed a successful operating culture based on world-class local teams combined with the advantages of its global presence. More than 13,000 people work at AES companies in Latin America and structured programs were set up to share knowledge, technology and experience across all of the companies in the region. Much of AES’s success with its distribution business has come from a community-based approach that views everyone, even those who steal electricity, as a customer not just a consumer. By viewing the situation in a broader social context, it became clear that energy theft is caused by more than a simple inability to pay rates and therefore could not be solved simply by increased law enforcement or declining service to theft-prone areas. AES people and company social workers were sent out into the barrios to sit down with local leaders and explain the advantage of getting Latin America’s major cities, it’s a common sight to see dozens of frayed cords stretching from a single electrical pole, providing stolen power to the nearby subpar housing. At the same time, Latin America is a rapidly growing market with sophisticated, middle class residential consumers enjoying Internet access and air conditioning and commercial customers serving worldclass manufacturing and service facilities. One size does not fit all, and the contrast illustrates some of the many complexities of providing power to this enormous region. in The barrios and favelas of AES plant manager Nestor Gobbi inspecting turbine in San Nicholas, Argentina. photo By david KatzEnstEin
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