Revenue-­‐  Linked  Supply  Scheme  (RLSS)  

01  November,  2014  BSPHCL  Founda9on  Day  

Sarur  Chaudhary,  JPAL  SA    

Robin  Burgess,  LSE  and  IGC  Michael  Greenstone,  UChicago  and  IGC  

Nicholas  Ryan,  Yale  and  IGC  Anant  Sudarshan,  UChicago  

Reducing  distribu9on  losses  will  help  to  provide  more  electricity  to  consumers  

14221536

1800

02004006008001,0001,2001,4001,6001,8002,0002,2002,400

0%5%

10%15%20%25%30%35%40%45%50%55%60%

Power  Sup

ply  (M

W)

T&D  Losses  (%

)

Financial  Year

Transmission  and  Distribution  (T&D)  Lossesand  Power  Supply

Source: BERC,  BSPHCL

Steady  losses  

Bihar  discoms  have  done  upgrades  to  allow  targe9ng  of  losses  

1.  Technical  upgrades  –  Transformer  maintenance    

   (>95%  reduc,on  in  burnt  DTs)    –  Grid  metering  

2.  Data  accuracy  improvements  –  Feeder-­‐  level  consumer  mapping  –  DT-­‐  level  consumer  mapping  

   

Losses  come  more  from  certain  areas  than  others  

Revenue  Rate  :  A  measure  of  payments  received  as  a  percentage          of  cost  of  total  electricity  supply  

Areas  paying  all  their  bills  

Areas  not  paying  their  bills    

Areas  with  high  payment  not  being  awarded  with  high  supply  

Feeder:  Basahi  PSS:  Lahlladpur  District:  Chapra  

Feeder:  Mela  PSS:  Sonpur  District:  Chapra  

       “  हम  समय  पर  अपने  बिलों  का  पूरा  भुगतान  और  अपनी  तरफ  से  कोशिश  करते  हैं  की  देरी  न  हो  इस  आशा  में  आपूर्ति  की  स्थिति  बेहतर  हो  जाएगी  ”  

-­‐  Raja  Kumar        Lakesaripur  Gaon,  Katya  Panchayat,      Lahlladpur  Block,  Chapra`  

Why  low  supply  for  high  payment?  

District PSS  Name Feeder  Name Revenue  Rate  (%)

Average  Supply  (hrs)

Chapra Lahlladpur Basahi 95% 12  hrs

Summary  of  RLSS  scheme:  You  get  what  you  pay  for  

Group   Revenue    Rate  (%)  

Hours  /  Day  

1   0-­‐15   12  2   15-­‐30   15  3   30-­‐45   18  4   45-­‐60   21  5   >  60     24  

Group     Revenue    Rate  (%)  

Hours  /  Day  

1   0-­‐10   6  2   10-­‐20   8  3   20-­‐30   10  4   30-­‐40   12  5   >  40     14  

Rural  Feeder  AllocaLon   Urban/Mixed  Feeder  AllocaLon  

Benefits  of  the  scheme:  I.  Reward  beYer  paying  areas  with  more  supply  II.  Provide  an  incen9ve  to  increase  payment  rates  III.  Reduce  u9lity  losses    

Scheme  Piloted  in  Chapra  and  Siwan    ObjecLve:  To  test  feasibility  of  implementa9on  on  a  small    scale  for  a  short  9me  

•  Total  Feeders:  85  Feeders  with  data:  39        

   •  Feeders  were  randomly  assigned  to  two  groups:  

Ø Treatment  :      Supply  based  on  revenue  performance  Ø Control            :      Supply  is  uniform  

•  Random  assignment  ensures  we  can  be  certain  impact  is  due  to  the  scheme  only  

Araria

AurangabadBanka

Begusarai

Kaimur

Bhagalpur

AraBuxar

Darbhanga

Gaya

Gopalganj

Jamui

Jehanabad

KatiharKhagaria

Kishanganj

Lakhisarai

Madhepura

Madhubani

Munger

Muzaffarpur

Nalanda

Nawada

Champaran W

Patna

Champaran E

Purnea

Rohtas

SaharsaSamastipur

Saran

Shekhpura

Sheohar

Sitamarhi

SiwanSupaul

Vaishali

PILOT PHASE: JAN 2014 - FEB 2014

-­‐  0.02  

+  1.01  

-­‐0.40  

0.00  

0.40  

0.80  

1.20  

Control   Treatment  

Revenue  Rate  (Rs/kWh)  Change    

•  Treatment  feeders  show  increase  of  Rs.  1.01  on  base  of  Rs.  0.95  within  just  two  months  

 

Revenue  improves  dras9cally  in  a  short  period  

Maharashtra  DCL  scheme:    Large  drop  in  load-­‐shedding  within  2  years    

LOAD-­‐  SHEDDING  FREE  FEEDERS  

Courtesy:  MSEDCL  

Ø MSEDCL  suggests  DCL  scheme  successful  in  increasing  payment  and  consequently  increasing  supply  

Scale  up  to  8  Districts    star9ng  October  20th    

1.  Chapra    2.  Siwan    3.  Purnea  4.  Ka9har  5.  Darbhanga  6.  Patna  (Rural)  7.  Ara  (Bhojpur)  8.  Buxar  

Scheme  has  many  benefits  for    discom  opera9ons  seen  by  early  2015  

• Close   Monitoring   of   Electricity   Supply   –  Compliance  Report  

NOV  2014  Benefits  of  close  scruLny  

•  Increased  Consumer  Awareness  &  Feedback  –  Bills,  Mobile-­‐  marke9ng  &  Consumer  helplines  

DEC  2014  Benefits  of  Consumer  

InteracLon  

•  Improvement  in  Revenue  performance  MAR  2015  

Medium-­‐  term  revenue  growth  

• Consequent  Increase  in  electricity  supply  JUN  2015  

Medium-­‐  term  supply  increase  

• Measuring  benefits  of  the  scheme  –    Survey  of  18,000  respondents  

JUL  –  SEP  2015  Benefit  of  measuring  

impact