16 - Y S Butola - Performance Improvement of the Distribution Segment A Case Study of NDPL

8/7/2019 16 - Y S Butola - Performance Improvement of the Distribution Segment A Case Study of NDPL

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Performance Improvement of theDistribution Segment

(A Case Study of NDPL)

Arup Ghosh , Chief Operating OfficerNorth Delhi Power Limited

Department of Industrial and Management Engineering

Indian Institute of Technology Kanpur3 rd Capacity Building Programme for

Officers of Electricity Regulatory Commissions23 28 August, 2010

Forum of Regulators

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Structure of Presentation:

Background

Strategic Road Map and Strategic Decisions

Key Initiatives

Results

Rewards & Recognitions

Issues / areas requiring attention of Regulators


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3

Delhi Vidyut Board in the Year - 2002:

AT & C Loss - More than 53%

Financial Loss - Approx Rs 10 Cr / Day

Govt. Subsidies - Approx. 1,200 Cr / Annum

Billing Receivables - Close to 1 year outstanding

Equipments / Network - Pathetic

Consumer Records - Manual & incomplete

Consumer Care - None, No focus

Power Interruptions - Availability 16 hrs/Day

0

10

20

30

40

50

60

1983-84

1985-86

1987-88

1989-90

1991-92

1993-94

1995-96

1997-98

1999-00

2001-02

Percentage T&D Losses

T & D Loss Trend - Pre-privatization

4


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5

Key Parameters - In Year 2002

Billing Efficiency = 53.72

Collection Efficiency = 97.18

AT & C Loss Level = approx 53 %

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Geographic Description:

NDPL

BSESRajdhani

BSESYamuna

NDMCMES

Joint Venture of TATA Group with Delhi Govt.51:49 %


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NDPL Profile:

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As on dateRs. 2,759 Cr (FY 0910)

1,313 MW (Jul10)

6,911 MU

1.21 Million

3,950

510 Sq Kms

4.8 Million

1,439 *2,372

0.57

08% / 06%

As on Jul2002Rs. 1,095 Cr

850 MW

5,237 MU

0.8 Million

5,400

510 Sq Kms

4.2 Million

1,246

1,568

1.03

-

ParticularsTurnover

Peak Load

Energy Requirement

Total Registered Consumers

Number of Employees

Area of Distribution

Population Serviced (approx)

Per Capita Consumption (Units)

No of Consumers / Sq km

Employees / MU input

Load / Energy Growth

* (National Average of 500, Mumbai close to 850)

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Background


Key Initiatives

Results




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Strategic Roadmap:

WHAT NDPL INHERITED JULY 2002

AT&C Losses> 53%

No concept ofconsumer service

& IT Interface

Electricity SupplySystem on the

verge of collapse

Lack ofPerformanceOrientation

STRATEGY FOR THE 1 S T CONTROL PERIOD (2002 2007)

AT&C Losses


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Background


Key Initiatives

Results




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Identification of components of AT&C Losses

Loss Reduction Strategy - Technical Solutions

Energy Accounting

Re-engineering of Commercial Processes (BPR) AMR for all connections above 10 KW

Automation Roadmap

Technical & Process Related Initiatives

Initiatives in association with Govt.

Initiatives related to Society

Key Initiatives & Implementation:

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Collection Process Deficiencies:20. Part Payment by Consumer21. Non Delivery of Bills22. Non Payment by Consumer (Defaulters)

23. Premise Disconnected with Dues

Billing Process Deficiencies:14. Consumer not billed / under-billed15. Provisional Billing16. Bills pending for Quality Check (BQC)17. Bills pending for assessment18. Meters installed but not appearing in data base19. Un-metered connections:

(Unauthorized Colonies, JJ ClustersStreet Lights Poles)

Metering Process Deficiencies:

7. Meter (address) not traceable8. Import / Export Metering Error9. CT Ratio Errors

10. Stop / Slow / Defective Meter11. CT Ratio Errors12. Meters not read13. Mismatch of Meters

Theft / Unauthorized Use:2. Direct Hooking3. Tampering / By -passing of Meter4. Misuse of Category5. Use of Multiple Connections - Misuse of Slab6. Sanctioned Load lower than actual usage

Technical Loses:1. Iron & Copper losses at

Sub-transmission (66kV/33kV) &Distribution (11kV & below) Network

Components of AT & C Losses:

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Energy Accounting


Automation Roadmap





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HVDS

High Loss

HighResistance

Areas

Implemented in morethan 250 areas, more

under implementation.

High Loss

LowResistance

Areas

LT ABCApprox. 2,500 Kms of

LT ABC laid, moreunder implementation

MeteringInitiatives

ElectronicMeters, AMR,

Pre-PaidMetering

Schemes implementedsuccessfully, more

under implementation

Loss Reduction Strategy Technical Solutions

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Energy Accounting


Automation Roadmap





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M

M

M

M

By STU

66 or 33 KV

11KV

At Consumer PremisesWith HT Load

Feeder Meter

11KV/415 V DT

For Energy Accounting

At ConsumerPremises

66/33/11 KV

STU to DISCOM

FEEDERS TO ZONES

Tier 1: Transmission level

M

Tier 2 : Sub transmission Level

Tier 3 : Distribution level

M

Energy Accounting Flow Chart



Energy Accounting


Automation Roadmap





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CMG RRG RDGMRG RBG RCGMMG

RAG

Policy Regulatory Bench Data Revenue InfrastructureAdvocacy Compliance Marking Analysis Protection Support

Consumers

CallCenter

CustomerCare Center

Website E mail LettersDrop

boxes

SAMBANDH Integrated Commercial Package software- Industry First!!

Business Process Re-engineering (BPR)

CCG



Energy Accounting


Automation Roadmap





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Automatic Meter Reading (AMR):

METER

GSM-MODEM GSM-Network

PSTN-NetworkPSTN-MODEM

S/W

USERS

LAN

DB

DEBS

I. METERING

II. COMMUNICATION

III. BACK OFFICE

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Energy Accounting


Automation Roadmap





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Automation Roadmap: Journey so far

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GIS - Completed

GSAS - Completed

Communication Network - Established and Stabilized

SCADA - In Operation

DMS - Under Implementation

DA - Under Implementation

OMS - Under Implementation



Energy Accounting


Automation Roadmap





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Technical / Process Related Initiatives:

Development of Tamper Proof Energy Meters

Payment Avenues increased from 20 Nos. (July 2002) tomore than 1500 Nos.

Door delivery of new Electricity Connection

SMS Based Complaint Management System

Instant Camp Connections at JJ Clusters

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Energy Accounting


Automation Roadmap





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Initiatives in association with Govt.:

Constitution of Special Court

Assistance of Police Force / CISF during EnforcementActivities

Relocation of JJ Clusters to a new resettlement Colony(Sawda Ghevra) for providing better services

Amnesty schemes for settlement of old disputed cases (DT/ DAE etc)

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Energy Accounting


Automation Roadmap


Initiatives in association with State Govt.



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Initiatives / Programmes related to Society:

Life Insurance Policy for Socially / Economically BackwardConsumers

Development of local people as Franchisee

Energy Conservation and Awareness through Energy Club(more than 31,000 Students covered)

Woman Empowerment (Vocational Training, beauticianCourses etc)

Health Check-ups, Blood Donation etc

Adult Literacy, Drug / alcohol de-addiction, Support toOrphanages, HIV / AIDS awareness etc.

Engagement with the Public Representatives

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New Initiatives:

108 MW Combined Cycle Power Plant

Solar PV Based Power Plant

GPRS based spot Billing

SAP ISU (Billing + CRM)(Industry Specific Solution for Utilities Industry)

Centralized Call Centre (No current + Commercial)

Special Consumer Group

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Background


Key Initiatives

Results



Savings to Govt. Victory Curve

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Loss Reduction (Trend):

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Parameters FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10

Energy Input (MU) 5,237 5,552 5,549 5,695 5,986 6,281 6,327 6,911

Units Billed (MU) 2,813 3,196 3,667 4,154 4,351 4,975 5,225 5,816

Amt. Billed1,126 1,272 1,565 1,883 2,032 2,323 2,468 2,722

(Rs Cr)

Amt. Collected (RsCr) 1,095 1,219 1,568 1,897 2,132 2,394 2,539 2,759

AT&C Loss47.79 44.86 33.79 26.52 23.72 18.38 15 .04 14.47

(%)

Billing Efficiency(%)

53.72 57.56 66.08 72.95 72.68 79.21 82.58 84.16

CollectionEfficiency (%)

97.18 95.78 100.2 100.73 104.94 103.04 102.87 101.34

Augmentation of Network Capacity:

Particulars VoltageLevel

Unit On Takeover- Jul 2002

2010 (Ason date)

% Change

TransformationCapacity

66 kV MVA 860 1,545 80

33 kV MVA 791 1,484 88

11 kV MVA 1703 3,770 121

Total (MVA) MVA 3,354 6,799 102

TransmissionLines

66 kV KM 176 309 76

33 kV KM 156 318 103

11 kV KM 2,245 3,555 58

Total (KM) KM 2,578 4,182 62

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Results Few other parameters

PARAMETERS / PARTICULARS BEFORETAKEOVER

ATPRESENT

OPERATIONAL:

Capital Investment (Rs Crores) 1,210(Valuation)

Add. 2,500

Transformer Failures w.r.t Installed Capacity (%) 11 1.2Percentage Share in Load Shedding (In Delhi) 40 < 1

COMMERCIAL:

Average Days for New Connection Energization (Days) 51.8 8.0

Number of Electronic Meters - > 1.2 Million% Provisional Billing 22.5 < 1DT Wise Energy Auditing (%) - 100

Special Courts (Nos) - 2

AT&C Losses (%) 53 < 14.0

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Background


Key Initiatives

Results




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Awards & Recognitions - To name a few

National Award for Meritorious Performance(For Years 2004-2005 & 2005-2006)

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National Award for Meritorious Performance(For Year 2007-08)


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National Award for Meritorious Performance(For Year 2008-09)

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ASIAN POWER AWARDS POWER UTILITY OF THE YEAR

(FOR YEARS - 2007, 2008 & 2009)


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Edison Electric Institute (EEI) 2008 - Award for Implementation of GIS

Edison Electric Institute (EEI) 2009 Award for Policy Advocacy



Public Lok Adalat Awardfor the 10,000 Settlements

in 2 years

Expert Choice Awardfor Most AdmiredOrganization - By

Power Line

SUGAM Award forTransparency in Billing

System

Intelligent EnterpriseAward for IT initiatives

- By Indian Express

Award for CorporateSocial Responsibility -

By Amity

Leadership Award forexcellence in Power

Distribution By Amity

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Background


Key Initiatives

Results



Issues / Areas requiring attention of Regulator :

Appropriate balancing between the interests of allstakeholders (Consumer, Society, Environment, Govt.DISCOM etc):

a) Cost reflective tariff

b) Timely recovery of Costc) Encourage settlement of disputed arrears

d) Sharing of Income (Section 51, EA 2003) Attractive sharing ofprofit / income to encourage Asset Sweating

e) Promotion of green power through Regulatory provisions

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Regulatory Asset:a) Against economic principles

b) Sends improper economic signal

c) Unnecessary burden of carrying cost

d) Deferment of problem, not a solution

e) Hence, use of this facility should be minimum and should not berepetitive

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Practical approach while framing performance standardregulations keeping in view the ground realities

Focus on long term development / sustainability of power sector

An equitable approach towards various incentives / penalties

provisions of performance standard regulations Regulatory provisions for introduction / promotion of new

technologies / Systems

Long term road map for the development of the power sector

Pro-active measures to remove difficulties / problems faced byDISCOM (which are beyond the reasonable control of DISCOM)



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Harmonization of regulations in power sector :

Fuel price variance:

a) Immediate pass through for Generator

b) Annual / Periodic pass through for DISCOM

Large disparity on treatment of various parameters:

a) O & M Costs (Normative Vs Actual)

b) Consolidated O & M Costs

c) Separate allowance for employee / A & G / R & M Costs

d) R & M Costs: Yearly inflation / % of Gross Fixed Asset

e) Employee and A & G Costs: Yearly inflation / Yearly inflationtogether with increased growth (MU / Consumers)

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f) Depreciation rate:

- Ministry of Power, GOI specified rates

- CERC rates (2004 notification) with provision ofAdvance Against Depreciation (AAD) provision

- As per Companies Act

g) Allowance of Depreciation:

- Allowed on all assets

- Depreciation not allowed on assets financed from grants / consumer contribution

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h) Start Date for depreciation:

- From the year of Capitalization

- From the succeeding year after capitalization

i) Provisioning of bad debts:

- No provision

- Based on actual bad debts

- As a % of approved ARR

j) Return:- Return on Equity

- Return on Capital

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Thank You

16 - Y S Butola - Performance Improvement of the Distribution Segment A Case Study of NDPL

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