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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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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
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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
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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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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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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
Strategic Road Map and Strategic Decisions
Key Initiatives
Results
Rewards & Recognitions
Issues / areas requiring attention of Regulators
Structure of Presentation:
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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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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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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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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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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
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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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
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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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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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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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
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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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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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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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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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 State Govt.
Initiatives related to Society
Key Initiatives & Implementation:
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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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Structure of Presentation:
Background
Strategic Road Map and Strategic Decisions
Key Initiatives
Results
Rewards & Recognitions
Issues / areas requiring attention of Regulators
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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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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Awards & Recognitions - To name a few
National Award for Meritorious Performance(For Years 2004-2005 & 2005-2006)
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Awards & Recognitions - To name a few
National Award for Meritorious Performance(For Year 2007-08)
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Awards & Recognitions - To name a few
National Award for Meritorious Performance(For Year 2008-09)
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Awards & Recognitions - To name a few
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
Awards & Recognitions - To name a few
Awards & Recognitions - To name a few
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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Structure of Presentation:
Background
Strategic Road Map and Strategic Decisions
Key Initiatives
Results
Rewards & Recognitions
Issues / areas requiring attention of Regulators
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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Issues / Areas requiring attention of Regulator :
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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)
Issues / Areas requiring attention of Regulator :
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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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Harmonization of regulations in power sector :
Large disparity on treatment of various parameters:
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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Harmonization of regulations in power sector :
Large disparity on treatment of various parameters:
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