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Strategies for Performance Improvement for Distribution Utilities Role of Technology and Operational Practices Vivek Singla North Delhi Power Limited 1 st July, 2008
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Page 1: NDPL

Strategies for Performance Improvement for

Distribution UtilitiesRole of Technology and Operational Practices

Vivek SinglaNorth Delhi Power Limited

1st July, 2008

Page 2: NDPL

Presentation Flow Part I - Introduction to NDPL

Part II - Reform framework & Business Model

Part III – Challenges Faced by NDPL

Part IV - NDPL’s Business Strategy & Improvement Initiatives

Page 3: NDPL

Part IPart IIntroduction to NDPL

Page 4: NDPL

Geographic Description

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

Page 5: NDPL

NDPL Profile

Turnover (FY 2007-08) Rs. 2474 Cr (enhanced from Rs 1100 in FY 03)

Peak Load 1100 MW

Annual energy requirement  (FY 2007-08)

 6281 Mn. Units

Total registered consumers 0.96 Mn. (0.743 Mn at time of Take Over)

Number of employees 3700 (5600 in July 2002)

Area 510 Sq Kms

Population serviced in Network area (approx)

4.5 Mn.

Per Capita Consumption (Units) 1245 (National Average of 500,Mumbai – close to 850)

Number of consumers per Sq.Km 1882 (Only Registered)

Employees per Mn. Unit input 0.58

Load / Energy Growth 07% / 05%

Page 6: NDPL

Part IIPart IIReform Framework

Page 7: NDPL

Road to Reform & Privatization White Paper: In 1999, a high level committee produced a white

paper on “Privatization and Restructuring”, which was approved by Government of Delhi (GoNCTD) for implementation.

Bidding Process: In 2001, based on the acceptance of the process by the Cabinet, Employee Unions, Consumers of Delhi, Media and potential investors, GoNCTD went about configuring the bidding process.

Participants in Bidding: Out of 11 who participated, Six investors were short-listed after qualifying stage - Tata Power, BSES, Reliance, CESCON, AES, CLP.

Bid Submission: In April 2002, only 2 companies viz. Tata Power and BSES submitted the bids.

Privatization: In July 2002, Privatization was effected.

Page 8: NDPL

Delhi Reform Framework No precedent of successful Privatization elsewhere in the

country; Orissa Privatization had failed DVB main challenge was high AT&C Losses DVB Balance Sheets restructured working backward from

Tariff Supportability AT&C Loss Reduction Targets 53% to 31% in 5 years (Public

Interest) 16% RoE subject to achievement of Targets. Downside 100%,

Upside 50% share Regulatory Risk Mitigated

Normative Tariff Order (prior to bidding) fixing the principles of Cost Recovery + Return

Regulator consulted prior to unbundling and bound by Transfer Scheme

Funding of Terminal Benefit Liabilities; Other Contingent Liabilities

Page 9: NDPL

Delhi Reform Framework…Cont…

Employee Uncertainty addressed through Tripartite Agreement Clean Balance sheet transferred Past liabilities on DISCOMs capped at Rs. 1 cr per annum Past Receivables belong to GoNCTD – Collection Commission 20% Power to settle old disputes – limited delegation to DISCOMs For 5 years DISCOMs to concentrate on reducing AT&C Losses

and Network Improvement and Transco to continue with Bulk Power Purchase

Page 10: NDPL

Holding Company (DPCL)

GENCOIndraprastha

Power Generation

Company Ltd.

TRANSCODelhi Transco

Limited

DISCOM-IBSES Yamuna Power Limited

DISCOM-IIBSES

Rajdhani Power Limited

DISCOM-IIINorth Delhi

Power Limited

GoNCTD

Delhi Vidyut Board (DVB) AssetsLiabilities & Equity

1. All the assets and liabilities of DVB are acquired by GoNCTD

2. All the liabilities of DVB are transferred to Holding Company, entire Equity of Holding Company is issued to GoNCTD

3.All the assets are transferred from GoNCTD to successor entities. Assets assigned a value equal to serviceable liabilities

4.Equity and Debt in the successor entities, equal to the value of Serviceable liabilities is issued in favor of the Holding Company.

Offered for privatization - effective July 2002

Delhi Reform Framework…Cont…

Page 11: NDPL

Revenue from retail Revenue from retail

supplysupply(Less due to present losses)(Less due to present losses)

Loan From Government

The Transitional Support

To make up lossPayment to GENCO TRANSCO

Balance amount for Bulk Supply Purchase

(DISCOM’s Paying capacity)

Expenses and return

Expenses – approved by Regulator

Return – Guaranteed – 16%

DISCOM

Business ModelBusiness ModelFinancial Support From Government During

Transition Period

Financial support of Rs. 3450 crores by GoNCTD to DTL in the form of a loan aggregating over the next five years.

Page 12: NDPL

Institutional Mechanism- at the time of Privatization w.e.f. 1st July 2002

Loan Agreement of Rs 552 crores signed between NDPL & Holding Company – DPCL, as part of the purchase consideration.

Bulk Supply Agreement between Govt. owned Delhi Transco Limited (DTL) and NDPL.

Bulk Supply Contracting by DTL on a best-endeavor basis.

No penalty for shortfall in supply or purchase. L/C and Escrow to be offered as payment support by

NDPL to DTL DTL assures arrangements against forecast, prior to

every season at Regulator’s meet and Secretary – Power, GoI’s reviews.

• Financial support of Rs. 3450 crores by GoNCTD to DTL in the form of a loan aggregating over a period of five years.

All agreements in place – Government's involvement was of a few officers at the time of Privatization.

Page 13: NDPL

Key Features of NDPL’s Business License based Regulated business – license for 25 years.

Top and Bottom line regulated business wherein - Regulator approves the Capital expenditure, Revenue expenses

and RoE (provided the annual committed AT&C Loss level is achieved)

Retail Tariff to remain same throughout Delhi till Mar 2007 irrespective of differential AT&C Loss reduction amongst Discoms. MYT Order implemented Mar 2007 onwards.

Key Success to reform was Commitment to reduce AT&C losses by 17% over 5 years and to bring down the losses from then determined 48% to 31% by end of Mar 2007. Further, in second control period (MYT 2007-11), losses to be reduced to 17% by March 2011.

Both top and bottom lines of the business is capped with restrictions on expenditure and ceiling on returns.

Page 14: NDPL

Part IIIPart IIIChallenges faced by NDPL

Page 15: NDPL

NDPL In July 2002

A work force of 5638 employees with very little skill sets available.

Lack of accountability, initiative & service attitude.

Absence of key management functions like hr, finance, governance etc.

No administrative infrastructure and dilapidated / un-sanitary buildings / offices

BURGEONING LOSSES – AT&C/Theft losses range between 53% to 60% (approx. 10 crores/ day). Dilapidated distribution network – couple of transformers and plenty of cables bursting every day. Approx 10000 No supply complaints per day. Only 48% Street Lights functional. Reportedly harassed consumers with poor fault management system, wrong billing, inadequate payment channels - a back log of 1,00,000 billing complaints and 20,000 new connections.

Poor condition of consumer records & consumer no where in focus- 50% of consumers had some 50% of consumers had some form of an error.form of an error.

Page 16: NDPL

High AT&C losses• Incentive to overachieve Targets• Penalty for not achieving Targets• Solutions need to be sustainable requiring long term approach• High Capex Involved in Technology Interventions-HVDS, SCADA,

AMR• Effective Enforcement by follow up in Courts• Flexibility for Settlements (out of Courts)

Challenges addressed through PPP Model

Lack of Service Orientation•Public Tolerance is high with Electricity Boards & less with

private players•High Expectations from private players push performanceReliability of Supply: Needs huge Capex to modernize NetworksRegulation: Issue of Regulators autonomy can be a problem when public sector is to be regulated

Pressure to perform: Subsidies are easy way out for SEBs but not for private players

Page 17: NDPL

Consumer Interfacing

Generator

Tx. Utility

SLDC

Trader

Govt.

Regulator

UTIL

ITY

ConsumerConsumer

Front-endFront-end Back-end

It’s been a challenge meeting the consumers’ expectations, and perceived to be responsible for actions of others.

Page 18: NDPL

Stakeholders Expectations

Consumers Advent of consumerism and consumer delight in retail electricity distribution

Investors Safety & enhancement of their investment /Ventures

DERC Compliance to billing, metering, tariffRegulation & performance standardsBalancing the development & stakeholdersInterests.

Government Early success of the reform and privatizationProcess

Employees • Better working conditions• Personal and professional development• Empowerment at all levels• Enhanced communication• Improvement in compensation & incentives

EXPECTATIONSSTAKE HOLDERS

Page 19: NDPL

We needed to know our consumers’ priorities

Consumer Interface with Distribution Utility

Page 20: NDPL

Way Forward: Changing Roles From arrogance of Monopoly to Softness in competition.

From Activity to Result (measurement) culture.

Efficiency to Effectiveness.

From Reactive to Proactive approach.

Quantitative to Qualititative approach.

Using Hierarchal authority to authority of Expertise and Concern.

We have always done this way to we can do differently.

Page 21: NDPL

Emerging Trends in Automation Enterprise application (ERP) Automatic Meter Reading (AMR) Geographic information System (GIS) Communication Infrastructure Grid Station & Distribution Automation SCADA/EMS/DMS Outage Management System (OMS) Integration with Enterprise Application

Page 22: NDPL

Part IVPart IVNDPL’s Business Strategy

&Improvement Initiatives

Page 23: NDPL

Sustained Initiatives for ImprovementA Step-by-Step Approach

Network Constraints

A T & C Losses

Poor Consumer Services

Identification of 3 Broad

Areas for Improvemen

t

Page 24: NDPL

Strategic Roadmap – pillars for 2002-

07

What NDPL had inherited

AT&C Losses >50%

No concept of consumer

service & IT Interface

Electricity Supply system on the verge of

collapse

Lack of Performance Orientation

Strategy for 2002-07

AT&C Losses <25%

Consumer service & IT

Interface to be comparable with world standards

System Reliability to be comparable with best utilities in

India.

Performance Orientation

through Change Management

>50%>50% 1,00,000 1,00,000 backlog backlog

complaintscomplaints

No planned exp. No planned exp. on infrastructure on infrastructure

improvement improvement past 3yrspast 3yrs

5400 erstwhile 5400 erstwhile DVB staff withDVB staff withUnfavorable Unfavorable

working conditionsworking conditions

Page 25: NDPL

Information Technology RoadmapC O M

M

N

E

T W

O R

K

50 OFFICES

TRANSCO GRID STN (6)

NDPL GRID STN (52)

DIST SUB STN (4000)

CUSTOMERS

D I SASTER

RECOVERY

WEB

DA

EMS

DMS

OMS

SCADA

CRM

Billing

SAP

GIS

Call Centre

AMR

Page 26: NDPL

System Reliability&

Technological Interventions

Page 27: NDPL

Power Supply Improvement - Initiatives

Newly Installed State of Art VCB

Page 28: NDPL

Ring Main Units Installed for the first time in Delhi

New Ring Main UnitsOld Switch Gears

11Kv distribution panels being replaced with state-of-the-art SF6 gas filled Ring Main Units

Power Supply Improvement – Initiatives Cont…

Page 29: NDPL

Power Supply Improvement – Initiatives Cont…

Revamped Substations

Page 30: NDPL

Immediate restoration of Power Supply made possible by Mobile Transformer Units

Power Supply Improvement – Initiatives Cont…

Page 31: NDPL

Breakthrough Initiatives Unmanned Automated 66 kV, 33 kV Grid Stations.

State of the art SCADA center

High Voltage Distribution system.

Arc-proof Package Units at 11kV Network

Remote operated GSM based Street Lighting

switches.

24x7 Operational Stores, material delivery at site.

NDPL’s SCADA Center NDPL’s SCADA Center Delhi’s first packaged stationDelhi’s first packaged station

Delhi’s first unmanned gridDelhi’s first unmanned grid

Page 32: NDPL

SCADA Features SCADA :

- Control & Monitoring of all grid stations- Grid stations are Unmanned -Load shedding on predefined time from SCADA-ABT interfaced with load shedding and forecasting - Grid/Area wise Energy Audit

EMS Applications :- State Estimator-Contingency analysis

DMS Application - Fault isolation & restoration - Switch procedure management - On line power flow Analysis- Votl-var control

Page 33: NDPL

Benefits of SCADABenefits of SCADAFinancial BenefitsQuick restoration ► Reduced interruption ► More energy soldOptimised network design ► Being evaluatedLeasing communication network ► Alternate revenue streamRemote ops ► Unmanned stations ► Reduced admin/salary costs

Operational Benefits: Reduced Outage TimeSwitching & Restoration Time ► Improve SAIDI, SAIFI Reliability of Supply ► Improve Customer SatisfactionGIS & OMS Integration ► Improve Customer ServiceLoad Forecasting & Scheduling ► On “Day Ahead” Basis

Safety Benefits: Enhanced Life of EquipmentSafety Tagging & PTW ► Eliminate Parallel Operation & Back-feedNetwork Mapping ► Optimised Load TransfersEquipment Monitoring ► Optimize MaintenanceNetwork Parameter Monitoring ► Eliminate Overloading Outage

Page 34: NDPL

Embracing New Age TechnologiesGeographical Information SystemGIS used primarily for the following 3 purposes:

•New Connection Management and other consumer services.

•Immediate Redressal of No Supply Complaints

•Network Planning & Management All Utility network assets including Grids, Substations, Feeder Networks are mapped.

Global Positioning System is used for accurate positioning of assets which is critical from operational point of view.

All Consumers as available in CRM of the NDPL are geographically captured.

Consumer’s LV network feeding points (poles/pillars) are marked on the map.

Page 35: NDPL

Benefits Reaped from GIS System Improvements schemes being built on GIS which

resulted in savings of approximately Rs.30,00,000 in the very first system improvement scheme approx. ten (10) percent of Scheme value

Direct Savings/Benefits derived out of our GIS project – Rs 12600000/- in the very first year of completion of project

Arrears worth Rs 1,94,57,393/- were recovered using the location map extracted out of GIS.

Technical feasibility time has reduced drastically leading to increase in customer satisfaction.

Total investment - Rs. 3.7 CroresSavings - Rs. 3.5 CroresPayback Period - Approx. 13 months

Page 36: NDPL

Operations and Network Management

Asset Management

Commercial Management

Capital Expenditure Management

Legend

Business Process GIS Interface

Integrated Business Processes

Page 37: NDPL

Operational Practices&

Consumer Services

Page 38: NDPL

Strategic Approach: BPR

BPR Approach

Commercial OperationsTechnical Operations

•Centralized•Consumer Segmentation•Benchmarking for Consumer Service

•Decentralized•Empowerment to Zones•Profit Center

Zones and Districts are our consumer interface – be it power supply or any commercial issue. THEY OWN THE CONSUMERS……

Page 39: NDPL

BPR - Revenue Cycle Processes

Commercial Process Reengineering – an industry first!

Page 40: NDPL

Strategic Approach: Consumer Segmentation

Consumer SegmentationConsumer Segmentation

High Consumer Base (HCB)High Revenue Base (HRB)

•Centralized Approach•Maximize Technological & Minimize Human Intervention•Reducing Consumer Footfalls

•Personalized Approach•Account Manager•Value Added Services

Consumer Segmentation - differentiated delivery of Consumer Segmentation - differentiated delivery of services as per the specific needs of each segment. services as per the specific needs of each segment.

Page 41: NDPL

Reaching out to consumers...

SMS based Fault Management System -significantly improved the fault

Restoration time

Advance Intimation to consumers - load shedding schedule in event of

Grid Shortages

Page 42: NDPL

“Sanchar” mobile vans disseminates information regarding planned shutdowns and breakdowns.

Ndpl has used the age old munadi concept to inform its consumers about planned shut down & break downs.

Information before hand….

Sanchar – Informing the consumer

Page 43: NDPL

New Connections - Home Delivery

New Connection at Door step

• Field Service Field Service Executive (FSE)Executive (FSE) visits the consumers’ premises and completes all formalities for new connections.

Meter Installation through VAN Model – initiative towards enhanced output, each Van installs about 7-8 meters per day.

Meter Installation Van

Initiatives towards expediting energization period of new connections

Page 44: NDPL

Enhancing Consumer Convenience22 Fully networked Consumer Care Centers for quick redressal of Consumer complaints. Each District Consumer Care Centre has a Relationship Officer who is a qualified MBA

Page 45: NDPL

Payment Avenues – Consumer convenience

Payment avenues increased from 20 at the time of takeover to 1100+ now.

State of the art Collection centers

instituted with all civic amenities.

Payment of Energy Bills through website also – by credit cards – website certified as secure by ‘Verisign’.

Consumer comfort redefined with Automatic Cash/Cheque Collection machines

Page 46: NDPL

Revenue Discipline - Differentiated Bills

Bills reflecting the Arrear Bills reflecting the Arrear Status of consumers – Status of consumers –

Disconnection Notice goes Disconnection Notice goes along the Red Bill which leads along the Red Bill which leads to optimization of costs also.to optimization of costs also.

- social stigma attached to it.

Concept of Consumer Credit Rating also being Introduced

Page 47: NDPL

Transparent sharing of information…

The SUGAM Experience

NDPL became the First Power Utility

in the country to provide On-line Information on Consumption, Billing & Payment to 100% consumers

Now through Website 100%Consumers can: -•View Bill•View Consumption Graph•Print Duplicate Bill•Make payment

Page 48: NDPL

Dedicated Call CentersCall centre for : No Supply Complaints (24*7)Ph No. 66404040Street Light related

complaints Ph No. 66404444

Call center for Bill & Meter Related

Complaints Ph No. 66111912

Page 49: NDPL

Reducing AT&C Losses

Page 50: NDPL

Electronic Meters- a correct tool

Electronic Meters facilitates: Safety to consumers’ house-hold

wiring. Provides Earth Leakage detection. Provides stored information which

facilitates verification. KW + kWh measurements are possible

as old electromechanical meters cannot capture both the parameters.

Time of day measurement is possible.

Old Meters

New Meters

Mass Meter Replacement: Approx 9,00,000 Lacs meters replaced till date

Page 51: NDPL

Metering Systems – plugging the Revenue

leakages Meter Repository System - each Meter is issued against a specific K No. based on a random selection through a customized application.

this eliminates the probability of misuse & installation at misdirected place – institutional check on manipulation.

MRS Screen shot• 60% of the Revenue gets generated through Automated Meter Reading (all high end consumers > 15 kW)

• Pre paid Metering – enables consumers to track and monitor their consumption.

GSM Modem with meter

Prepaid meter

Page 52: NDPL

Power Theft Control – Initiatives

Electrification on HVDS and LT ABC network – To prevent tapping in theft prone areas and reduce technical losses

New Connection Camps in slums DT wise Energy Accounting for

calculation of Transformer wise AT&C Losses HVDS ImplementationHVDS Implementation

Removal of Hookings & New Connection camps for slum Removal of Hookings & New Connection camps for slum dwellersdwellers

LT tapping

Page 53: NDPL

Theft Control: In NDPL Interest Restructuring the Enforcement Department, Constitution of EAC (Enforcement Hearing cell) District wise Enforcement teams Strengthening of Revenue Recovery Group

Enhanced advocacy with Police Headquarters

Institutionalize establishment of Special Courts

Social advocacy (consumers awareness about the harm caused by theft and are encouraged to facilitate in curbing the thefts.

Theft Control, need of present

Support for Enforcement …

CEA Regulation making STATIC meter mandatory. CISF support Amendment in Electricity Act’2003.

Page 54: NDPL

JJ Cluster Scheme

SahyogThis Scheme (Franchisee) was launched to reduce AT&C losses in clusters of low income group habitats.

Scheme was launched with objective of improving Billing and Collection Efficiency through increased Employee participation

Sankalp

Other Schemes

Page 55: NDPL

Contribution from Zone/District

Zones develop and suggest their action plan, by including, but not limited to, the following into their strategy for reducing the AT&C losses in their respective zones:

• HVDS Implementation

• LTABC Implementation

• Local Enforcement

• Load shedding

• JJ cluster connections through advocacy with area MLA/NGO etc

Page 56: NDPL

Change Management&

Performance Orientation

Page 57: NDPL

An anxious workforce, disillusioned with the post privatization scenario.

No Corporate structure with absence of No Corporate structure with absence of key functions such as HR, Finance, key functions such as HR, Finance, Commercial etc.Commercial etc.

Poor working conditions and unhygienic Building Environment.

Initial Challenges in July 2002Human Resources & Administration

The foremost priority was to earn the Right to Govern in the psyche of the employees by developing a sense of assurance in their

combined ability.

Page 58: NDPL

Huge manpower strength of 5638 employees (none of whom) Lack of accountability, initiative and service attitude Poor employee data bank Erratic nature of promotions and transfers Non-existent training facilities Multi-levelled hierarchy with only a handful executives No corporate structure in existence for functions like hr,

admn. Ambiguity of roles and responsibilities Dilapidated / unsanitary buildings / offices Absence of employees welfare activities Ineffective attendance system Large gaps with reference to TATA work culture

The Legacy inherited as on 1st Jul, 2002

Page 59: NDPL

Organization Structure & Manpower Management AuditManagement Audit conducted through a

reputed external agency to gauge the expectations of the inherited employees.

Organization StructureOrganization Structure defined, with clear Manpower Planning for each department

Voluntary Separation SchemeVoluntary Separation Scheme introduced–towards right sizing the organization.

Induction of New TalentInduction of New Talent – ETs & MTs as catalysts for the Change Management.

Set up of Vigilance & Internal Audit Set up of Vigilance & Internal Audit groups groups for institutionalizing organizational discipline.

Corporate set up in place – focus on Roles & Responsibilities through specific JDs & KRAs of individuals

Page 60: NDPL

L2- Infrastructure

-Achieve 100% automated processes-Drive business excellence-Improve decision making thru KM- Capture & disseminate external knowledge

Fin

anci

al

C1 -High Revenue BaseC1 -High Revenue Base

P1-Ensure effective

enforcement

P1-Ensure effective

enforcement

Cu

sto

mer

Inte

rnal

Pro

cess

Lea

rnin

g &

G

row

th

F2 – Grow revenue in

non-regulated business

F2 – Grow revenue in

non-regulated business

F7 – Reduce unit cost of

power purchased

F7 – Reduce unit cost of

power purchased

F6 –Reduce fixed cost of network per input unit

F6 –Reduce fixed cost of network per input unit

F1 – Achieve prescribed rate of

return

- Be EVA Positive

F1 – Achieve prescribed rate of

return

- Be EVA Positive

AdvocacyAdvocacy Service DeliveryService Delivery

F3 – Reduce commercial

AT&C losses

F3 – Reduce commercial

AT&C losses

F5 – Reliability of

supply

F5 – Reliability of

supply

F4 – Enhance sales thru partnerships e.g. time of day

tariffs etc.

F4 – Enhance sales thru partnerships e.g. time of day

tariffs etc.

Cost Leadership Cost Leadership

P2- Achieve opinion/envir

onment shaping

P2- Achieve opinion/envir

onment shaping

P3-Consumer communicationP3-Consumer

communication

P4-Brand building

P4-Brand building

P18-Right size

organisation to improve

productivity

P18-Right size

organisation to improve

productivity

P19-Optimise procurement

process

P19-Optimise procurement

process

P20-Identify savings from outsourcing

P20-Identify savings from outsourcing

P21-Identify process cost

improvements

P21-Identify process cost

improvements

P7- Ensure adequate

supply to meet load

P7- Ensure adequate

supply to meet load

P8- Ensure network

availability

P8- Ensure network

availability

P9- Timely connectionP9- Timely connection

L1- Staff competency

-Upgrade the workforce-Communicate expectations-Change attitudes (ownership

/commitment/customer focus

P10- Reliable billing

P10- Reliable billing

F8 – Reduce cost to serveF8 – Reduce cost to serve

-24 x 7

-Premium service quality

-Promptness

-Reducing cost

-Communication

C2 -GovernmentC2 -Government

-24 x 7

-Premium service quality

-Promptness

-Reducing cost

-Communication

-Flexibility

C3 –Low Revenue BaseC3 –Low Revenue Base

-High reliability

-Accurate metering/billing

-Timely connection

-Convenient payment modes

-Timely information

-Flexibility

-Prompt redress

P5-Policy advocacyP5-Policy advocacy

P6-Advocacy for enhancing

consumer base

P6-Advocacy for enhancing

consumer base

Loss ReductionLoss Reduction

P11- Ensure meter

replacement

P11- Ensure meter

replacement

P12- Effective billing & recovery

P12- Effective billing & recovery

P13- Effective enforcement

P13- Effective enforcement

Customer Relationship

Management

Customer Relationship

Management

P15- Convenience

P15- Convenience

P16- Transparency

P16- Transparency

P17- Effective/timel

y grievance handling

P17- Effective/timel

y grievance handling

P22-Identify lower cost

finance

P22-Identify lower cost

finance

P23-Improve treasury

management

P23-Improve treasury

management

P24-Improve capital

efficiency

P24-Improve capital

efficiency

P25-Improve project

management processes

P25-Improve project

management processes

P26-Identify cheaper/alternate

power sources

P26-Identify cheaper/alternate

power sources

-Recruit/retain the best people-Identify & develop key people-Enhance employee engagement

L3- Culture

-Encourage innovation & creativity-Make work environment productive, & conducive to performance-Imbibe the value system

15%

40%

20%10%

10%5%

35% 20%30%

C4 -FranchiseesC4 -Franchisees

-Fair margin return

-Fair terms

-Hand holding

10%

20% 15% 30% 15%

10%

25%

20%

25%

10%

20%20%

40%

15%

25%

40%

30%

30%

100%

15%

15%

10%

20%

20%

10%

20%

NDPL Corporate BSC (OPMS)

Page 61: NDPL

VISION & MISSIONVISION & MISSION

Organizational Performance Alignment - Catch Ball Theory

5 Grp.3 Grps. Dst.,Zn TS&P 5 Grps. 6 Grps.9 Grps.

JD/KRA.JD/KRA. JD/KRA. JD/KRA. JD/KRA. JD/KRA.JD/KRA

Mapping the Initiatives thro Perf. Scorecards

O

P

M

S

D

P

M

S

I

P

M

S

CORPORATE MISCORPORATE MIS

Page 62: NDPL

Review & Improve Goal Setting

Revisiting of Measures, Targets & Initiatives for FY08-09

Every Functional Review through BSC Rolling of all

Functional & Corporate BSC through SAP

Link all Issues to the Measure of BSC

Institutionalization of Departmental Scorecards used as Review Tool Widening scope to

cover AMCs

Meeting Name

Participants Agenda

MTMCEO, COO, Senior Advisors, all HODs comprising MTM

Corporate BSC Reviews, Organizational Policy Issues, Business Excellence , Cross functional Issues

CRM

COO, Head Commercial, MTM Members, Circle Heads, concerned Dept

Commercial BSC Review, Commercial Issues

NRM

COO, Head Operations, MTM Members, Circle Heads, concerned ZMs

Operation BSC Review, Operational Issues, District/Zonal Scorecard Review Performance

IRM

COO, MTM , HOD(CE&C), HOD (Governance), concerned Dept.

Infrastructure issues, security, Training, Administration Issues,

FRMFunctional Heads & respective Dept. HOGs

Group Performance Review

ORT/PRT/CRT

Head Operations, Circle Heads, concerned ZMs

Circle, district specific Issues

Page 63: NDPL

District/Zonal Scorecard

Knowledge and Learning sessions conducted – sharing of best practices among the zones

Page 64: NDPL

  Performance November 2004

  Weightage OT / EmployeeEmergencyShut down

PreventiveMaintenance

EquipmentBreakdown

SafetyAccidents

Rank Units Rs Nos. Marks Nos. Code

  100 20% 20% 40% 10% 10%

1 Pitampura III 1331 1 94.80 0 0

2 Trinnagar 1445 1 137.00 0 0

3 S G T Nagar 1730 0 121.10 0 0

4 Ranibagh 1573 0 115.00 0 0

5 Jahangirpuri 1464 2 82.00 0 0

6 Pusa 1821 0 97.80 0 0

7 Rohini V 1865 0 72.60 0 0

8 Rohini Sector 23 2032 0 82.80 0 0

9 Gulabibagh 1368 4 72.40 0 0

10 Inderpuri 2052 1 78.10 0 0

33 Civil Lines 2 2058 7 79.10 1 0

34 Rohini IV 2009 0 58.10 0 0

35 Ashokvihar 2256 2 49.80 0 0

36 Rewariline 2302 7 73.80 1 1

37 GTK 2373 3 64.40 1 0

38 Shalimar Bagh 1928 DNA 65.70 0 0

39 Mangolpuri I 2372 1 56.40 0 0

40 Pitampura I 2401 7 50.40 0 0

Grid Score Card

Not Complete, for Illustration purpose only.

Page 65: NDPL

Projects ScorecardPROJECTS PERFORMANCE SCORE CARD

S.No Index METRO URBAN NARELA BAWANA TOWN CITY

1 Project Average Duration Completion8.57 7.85 6.17 4.84 5.82 6.02

6.82 7.86 8.61 6.00 9.97 12.81

2 Project Management            

2.1 Adherence to Project Time Schedule2.50 8.00 7.69 10.00 0.00 5.00

0.00 2.75 2.68 5.71 2.27 1.25

2.2 Value of Work executed.20.00 17.53 9.49 7.36 13.49 9.20

9.18 18.09 20.00 11.42 7.19 7.21

3 Quality of Work5.00 2.06 1.30 5.00 3.64 1.44

5.00 1.66 5.00 5.00 0.60 3.13

4 Safety of Work0.05 0.10 0.21 0.28 0.05 0.03

3.16 4.15 4.10 2.50 3.33 5.00

5 Innovation 0.08 0.00 5.00 0.00 0.00 0.00

1.95 5.00 0.85 0.77 0.00 0.58

6 Compliance to statutory requirements 5.00 5.00 5.00 5.00 5.00 5.00

5.00 3.75 5.00 5.00 5.00 5.00

7 Contract Closing5.00 5.00 5.00 5.00 5.00 5.00

5.00 5.00 5.00 5.00 5.00 5.00

8 Suyojna/Online Progress orientation15.10 12.79 11.41 8.70 10.59 10.59

18.30 19.04 17.37 20.00 19.43 19.06

CUMMULATIVE SCORE FOR FY: 05-06 59 63 59 53 46 47

Deployment of Corporate & Divisional Balanced Scorecard from April 2006.

Page 66: NDPL

Monitoring AT&C Losses

Not Complete, for Illustration purpose only.

Page 67: NDPL

Employee Competency Development Instituted HRDI as the Learning and Resource center.

Training Need Identification through the Performance Appraisal system itself.

Institution of CENPEID – in association with USAID to cater to the training needs of its own and other SEB’s employees.

Training Policy formulated – 6 days for executives and 2 days fro non executives.

Peer to Peer exchange programs in association with USTDA for sharing of best practices and knowledge.

Initiation of CFT approach – for handling critical concerns cutting across departments.

Page 68: NDPL

Internal Communication Joint Interaction ForumsJoint Interaction Forums constituted constituted

for effective two way communication.for effective two way communication.

LGIE in association with ACCORDLGIE in association with ACCORD – participation across all levels of participation across all levels of employees.employees.

Introduced Town Hall MeetingsIntroduced Town Hall Meetings – – unstructured reviews aimed at two way unstructured reviews aimed at two way communication.communication.

SURKHIYANSURKHIYAN – – monthly news bulletin monthly news bulletin for employees.for employees.

SARTHISARTHI – – forum for resolution of forum for resolution of Grievances instituted. Grievances instituted.

Policies on Ethics, Harassment & standardization of rules through Policies on Ethics, Harassment & standardization of rules through Leave & Travel Policy.Leave & Travel Policy.

Page 69: NDPL

Institutionalizing Knowledge Management SANCHAY- KM portal Facilitates exchange of

information, ideas among the employees.

Forum for logging ideas and suggestions for improvement in processes.

Databank of Sectoral & other information.

Facilitates opinion polling on various issues among the employees within the organization.

An organizational initiative towards Capacity Building!

Page 70: NDPL

I / We gotta idea Approval ! We worked on it ! We have done it

Triggers(meetings, audits,

benchmark, stakeholder

expectation, targets)

Decentralized approval system

Tools :Basic Quality Tools BenchmarkingQFD, Six Sigma, (Which ever is required)

Individual effort

Effort within the group

Quality Circle (Zones & Non-

Executives)

Efforts required

from many

groups

I am suggestin

g

You may like to do

this

Alpha, Beta, Gamma,Comma Eureka, Most Incubative Group

SHINESystematic & Holistic Initiative at NDPL through

Employee Engagement

Page 71: NDPL

2003

Cha

nge

Man

agem

ent

2004

Eli

min

atio

n of

Ele

ctri

city

The

ft 

2005

Per

form

ance

Con

soli

dati

on

Tackling the initial challenge of Diverse Workforce & AT&C Losses Consolidation of Past achievement and

ensure Consumer Orientation Backward Integration Empowerment

Systems Approach

Las

t Mil

e

2006P

erfo

rman

ce

Ass

uran

ce

2007

Mat

urit

y &

Sel

f S

uste

nanc

e

2008

Applying the A-D-L-I approach to

Organizational Excellence

Page 72: NDPL

Other Value AddedInitiative

Page 73: NDPL

Energy Conservation Initiatives

Energy Saving – CFLLaunched the Scheme for Energy Conservation in

association with M/s Phillips

Energy Saving TIPS to Consumer

Page 74: NDPL

Privileged Consumers

Recognizing and Rewarding Privileged Consumers

More value than just electricity…

Page 75: NDPL

FESTIVALS

Birthday

WEDDING ANNIVERSERY

FROM DIWALI TO HOLI ON ALL OCCASIONS TO CELEBRATE

GIFT URJA

URJA- Electricity Gift SchemeURJA- Electricity Gift Scheme

Page 76: NDPL

Community Initiatives

SoS, an NGO has adopted Bawana as one of the 131 villages

across India, in association with

NDPL.

Organization of free Health camps for Industrial workers in NDPL areas such as Bawana,

Narela, Wazirpur etc.

NDPL is about to release a global invitation seeking NDPL is about to release a global invitation seeking partners for CSR activities in NDPL area.partners for CSR activities in NDPL area.

Active support to MSSI of India

Blood Donation Camps: Regular Blood Donation camps organized in association with Red Cross Society.

Page 77: NDPL

Load Enhancement Drives

Meter Replacement Drive (removing the myths related to the electronic meters)

Internal Wiring Checking Campaign

Energy Conservation Campaigns

Consumer Driven Initiatives

Providing Helping Hand to Consumers. . .Providing Helping Hand to Consumers. . .

Page 78: NDPL

Regular Interaction with Publicrepresentatives

Meeting with RWAs on 1st Saturday ofevery month at each NDPL District

office

Building RelationshipCommunicating with Consumers

Addressing Consumer Concerns… No Dues Cell Enforcement related Personnel

Hearing Cell Personal Hearing Forum for

complaints related to new connection, metering and billing problems

Page 79: NDPL

Energy Conservation Camps implemented in schools with children participating and becoming NDPL ambassador in promoting Energy Conservation.

Energy Club – Launch of 3rd Phase

50,000 students have been sensitized till date – partnership with 50 schools at present – 1,25,000 students would be sensitized in 3rd phase

Urja Melas are regularly organized where competitions are held between participating schools.

Building RelationshipCommunity Services – Energy Club

Page 80: NDPL

Excellence Recognized

Page 81: NDPL

AT&C Loss : Target v/s Achieved

47.79%

44.86%

33.79%

53.0%

26.52%

23.73%

18.38%15%

20%

25%

30%

35%

40%

45%

50%

55%

Bid Loss levels 48.1% 47.60% 45.35% 40.85% 35.35% 31.10%

Govt. stipulated Loss levels 48.1% 46.60% 41.60% 37.10% 32.85% 28.85% 22.03%

Actual AT&C Loss Level 53.0% 47.79% 44.86% 33.79% 26.52% 23.73% 18.38%

Opening 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Bid loss levelGovt stipulated loss level

Actual loss level

Page 82: NDPL

Asian Power Awards 2006Excellence in Service Enhancement

CII EXIM AWARD 2005CII EXIM AWARD 2005Strong Commitment to Excel

Young NDPL … Mature Achievements

2nd Best Power Distribution Utility –Award Instituted by Ministry of Power (GoI)

Declared the most Admired Organization in the Pvt./Joint Sector – by Power line News Magazine.

Created History by Scoring 516 Score in the first attempt itself in the TATA Business Excellence

Model.

Recent AwardsICWAI has recognized NDPL’s efforts at Cost Management by

awarding first rank for

“National Award for Excellence in Cost Management -2007” under the category of Service Sector.

NDPL has won the prestigious

Edison Electric Institute (EEI) 2008- Edison Award for

implementation of GIS.

Page 83: NDPL

Public Lok Adalat Award for the highest settlements

CIO AWARD FOR BEST BILLING

SYSTEM

Transparency in Billing System

Intelligent Enterprise Award For IT initiatives

AESIEAP CEO’s Award for Business Excellence

Award forCorporate Social Responsibility

Other Awards

Page 84: NDPL

Thanks … Thanks … Let’s have interaction…..