11 Prabhakar Tandon Head Business Development Secure Meters Limited [email protected] Distribution Reform-A different Approach

11

P r a b h a k a r Ta n d o nH e a d B u s i n e s s D e v e l o p m e n t

S e c u r e M e t e r s L i m i t e d

P r a b h a k a r . t a n d o n @ s e c u r e t o g e t h e r . c o m

Distribution Reform-A different Approach

22

Some Known Facts

India has per capita consumption of 1015 units which is among the lowest levels in the world.

Average business connection days in India is very high as compared to global standards.

About 300 million citizens in India live without electricity.

Business operation of most of the small scale industries suffer because of the electricity as a major constraint.

Agricultural consumption is largely unmetered and charged estimated rates, losses in other segments are often included in agricultural consumption numbers.

Power outage is a concern in most of the cities

© Secure Meters Ltd

33

Reform Actions by Government in last 10years

APDRP

RAPDRP

FRP

Model State Electricity Distribution Reform Management Bill

Proposed amendment in Electricity Act & Tariff Policy

IPDS

DDUGJY

Smart Grid and Smart Metering program

UDAY-Ujjawal Discom Assurance Yojana


44

Issues

Organizational Governance

Customer dis-satisfaction

Increased debts

Unaccountable business processes

Poor maintenance of distribution assets

Timely implementation of large scale programs

Inadequate purchase processes

Lack of service culture

High Operating Expenses


55

Present focusShift in focus

Utilities

Investments

RegulationGovernment

Customer

Utility

RegulationGovernment


66

Customer Centric


77

Results

People

Technology

Process

How to achieve?


88

.

People

Process

Technology

Utility

replace metering prepay

systemssimple

& IT supporte

d processes

simplify billeasy to

understand

QA process

24x7 call center

updated & correct database

electronic reading

only

energy accounting

customer education

public relation

focus high value

customers

transparencyservice levels

solid team

multiple payment options


99

Prime Focus Areas

Achieve Customer Service

Excellence

Reduce Aggregate AT&C

loss

Improve Power Purchase

Reduce Cost to Serve

Precise Government and

Regulatory intervention


1010

Achieve Customer Service Excellence

Door step services for release of new connections.

Urban Outages to be fixed within 30minutes of reporting.

All Billing and Payment related queries to be handled by Contact center.

Safety related compensation to be settled in one day.

Participation of Private sector contractors

Effective long term contracts with incentive and penalties on published SLAs.


1111

customer service

engaging & building trust

customer centric

IT driven solutions

customer education

transparent service levels

simplify processes

customer contact centers

multiple payment options

Solutions

(process)

(technology)

Improvement

How?

customer service culture

effective processes

(people)

Happy end users

1212

Reduce Aggregate AT&C Loss

Deliver timely, accurate and verifiable bills to high value customers

100% High value customers have functioning metering systems

Urban domestic consumers have pre-payment metering system with multiple vending options

100% Agricultural consumers have pre-payment metering system with subsidy disbursement regime

Regular system asset maintenance

Holding people accountable for losses

Outsourcing of MBC


1313

reduce losses

solid team, trained accountable staff

reliable & accurate meters

leverage experience

management quality

energy accounting

credit meters

prepayment meters

Solutions

(Process)

(Technology)

Improvement

How?

metering, billing, collection

(People)

DT metering

Happy end users will guarantee

financially strong Discoms

adopt best practice


1414

Reduce Cost to Serve

Development of strategic plan

Reduction in expenses of maintenance and replacement of assets

Improvement in procurement processes of discoms

Reduction in opex through accountable IT enabled business processes

Focus on timely delivery of services

Buying practices should factor the life time cost of buying decision


1515

Government and Regulatory intervention

Long tenure leaderships

Independent functioning of Regulator

Regulatory watch and control on the quality of assets procured by discom

Regulatory initiative and monitoring to adopt SLA based business processes by discoms along with relevant consumer compensations

Agricultural metering and subsidy transfer through DBT scheme


1616

The roadmap


1717

Case Studies

Results

People

Technology

Processes


1818

West Bengal, India

Results

People

Technology

ProcessesWest Bengal

WB achieved a swing of $300m USD per year in their balance sheets by investing in energy accounting and then

holding staff accountable for results.


1919

New Delhi, India

Results

People

Technology

Processes

New DelhiNo one in the world has reduced as much losses (from

53% down to 15%), or as fast as the three Delhi discoms. Underlying that success is a solid focus on processes &

people.


2020

Results

People

Technology

ProcessesManipur

With the Chief Minister and MD taking personal interest, Manipur changed its processes to adopt prepayment

metering with spectacular success of revenue realization.

Manipur, India


2121

Government and Regulatory intervention

Metering customer and network helps determine the facts against which individuals can be held to account

Reducing cost to serve will directly contributes to health of Discom.

Outsourcing of MBC to reliable contractor may bring drastic improvement in revenue and processes.

Asset based funding should be done with asset provider responsible for maintaining the asset for minimum 10 years

Stringent SLAs with asset provider will help improving the quality of assets and services.

Asset purchase should be done through Quality and Cost Based Selection Process


2222

Conclusion

Metering customer and network helps determine the facts against which individuals can be held to account

All meters should be read electronically

Reducing cost to serve will directly contributes to health of Discom

Outsourcing of MBC to reliable contractor may bring drastic improvement in revenue and processes

Asset based funding should be done with asset provider responsible for maintaining the asset for minimum 10 years

There is need for review of performance management System of Discom


2323

Thank you


Documents

11 Prabhakar Tandon Head Business Development Secure Meters Limited [email protected] Distribution Reform-A different Approach