Torrent Power

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Torrent Power

• Experience
• Bhiwandi Distribution Franchise

2
Torrent Power At a glance

• Part of Rs. 6200 Crore Torrent Group
• Torrent Pharma (Turnover Rs. 1630 Crores)
• Torrent Power (Turnover Rs. 4425 Crores)

- yet to takeover operations
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Gold Shield
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Bhiwandi Distribution Franchise

• Franchise Arrangement
• Benefits of Franchise Model
• Bhiwandi Franchisee Experience

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Bhiwandi Distribution Franchise

• Franchise Arrangement
• Benefits of Franchise Model
• Bhiwandi Franchisee Experience

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What is a Franchisee?

• As per Definitions of The Electricity Act, 2003
• franchisee means a person authorised by a
  distribution licensee to distribute electricity
  on its behalf in a particular area within his
  area of supply
• Facilitation of Franchise Model in the Section 14
  of the Act
• Provided also that in a case where a
  distribution licensee proposes to undertake
  distribution of electricity for a specified area
  within his area of supply through another person,
  that person shall not be required to obtain any
  separate licence from the concerned State
  Commission

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Types of Franchise Model
Greater role of private player requires longer
duration of contract/arrangement.
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Distribution Franchising

• All Obligation and Rights of a Distribution
  Licensee

Generation
Distribution
Transmission
Ownership results into increased level of
investments
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Rights of DF

• DF to distribute power in the franchise area for
  a fixed term as per the agreement
• DF is an exclusive agent of Licensee in the
  Franchise Area
• DF has all rights of a Distribution Licensee
• E.g. authorization under Section 126, 135, 152 of
  Electricity Act 2003

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Responsibilities of DF

• Purchase of power
• From Licensee at EHV substations feeding the
  franchise area
• Network Related
• Network analysis and improvement planning
• Make capital investment for renovation/
  upgradation of network
• Distribution asset maintenance

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Responsibilities of DF

• Consumer Related
• Metering
• Meter reading
• Billing as per Regulatory Commissions approved
  Retail Tariff
• Collection (both current revenues and arrears)
• Issuing new connections
• Adherence to all relevant Regulations of ERC
  including Supply Code and SOPs
• Attending consumer grievances

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Responsibilities of Licensee

• Supply of energy
• As per the pre-determined schedule of supply on a
  non discriminatory basis subject to power
  availability
• Payment to DF upon expiry / termination
• For assets created during the agreement term at
  depreciated value.
• For closing inventory
• Arrears for last one month

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Responsibilities of Licensee

• Grant of Right to use of distribution assets in
  the circle
• Network assets in field from the start of
  outgoing 22 kV feeders of EHV s/s
• Assets in stores as opening inventory
• Deputation of willing employees to DF
• Deputation rules/ deputation package of DF will
  be applicable.

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Commercial Terms
L I C E N S E E
Payment by DF Charges for input energy Arrears
collected Security Deposit for new
connections Electricity Duty etc
D F
Payment by Licensee Incentive on recovery of
arrears Subsidy Specified payments upon
termination / expiry
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Distribution Franchise Model

• Franchise Arrangement
• Benefits of Franchise Model
• Bhiwandi Franchisee Experience

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Benefits of Franchise Model

• Reduction in technical TD losses and theft
• Improvement in Metering, Billing and Revenue
  Collection
• Capital investments in upgradation of the network
  
• Enhancement in customer service quality

A win-win scenario for all Consumers, DISCOM and
Franchisee
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Technical Benefits

• State of the art distribution system in franchise
  area
• Lower peaking load due to better technical TD
  management
• Better overall grid stability due to lower system
  interruptions
• Improvement in reliability parameters like SAIFI,
  SAIDI, CAIDI, etc.

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Financial Benefits to Licensee

• Assured returns from distribution franchisee
• No investment in the franchise area by licensee
• Reduction in losses
• Contribution to the Government exchequer
• Increase in collection of Electricity Duty as
  the metering and billing becomes more accurate
• Increase in collection of other Central and State
  taxes pursuant to growth of economy of franchisee
  area

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Better services to Customers

• Improved services
• Faster new connections/ load extensions
• Lower attendance time for faults
• Grievance Redressal mechanism
• Convenient bill payment facilities
• Better availability and quality of power
• Increased customer satisfaction

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Reform process
Dist Franchise
Right Mix of Progress and Acceptability
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Distribution Franchise Model

• Franchise Arrangement
• Benefits of Franchise Model
• Bhiwandi Franchisee Experience

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Bhiwandi Introduction

• Government of Maharastra took the lead in
  distribution reforms and introduced a franchisee
  model for public-private partnership
• DISCOM consequently put through a process for
  selection and appointment of a distribution
  franchisee for the Bhiwandi Circle of its license
  area of Maharastra State
• Torrent Power was selected as the Distribution
  Franchisee through an open competitive bidding
  process
• Distribution Franchise Agreement was signed with
  DISCOM on 20th December, 2006
• Operations taken over from 26th January, 07

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Bhiwandi
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Bhiwandi At the time of takeover

• ATC losses 58
• Mandatory load shedding of 6 hours at the time of
  takeover and subsequently increased to 8 hours
• Further distress load shedding due to deficit of
  300 MVA in EHV Network
• Overstressed distribution Network
• Overloading
• Breakdowns / trippings
• Distribution transformer failure rate of 40
• Poor reliability of supply
• Only 23 of the customers have accurate metering
  and there are many unregistered consumers

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Plan of Action

• Network Upgradation
• To develop a safe and robust distribution network
  in Bhiwandi
• Network Upgradation Plan to improve reliability
  and curb technical losses
• Addition of 35 new HT feeders to relieve the
  existing overloaded feeders
• Revamping distribution transformers and build in
  additional distribution transformation capacity
  to reduce overload
• Provide appropriate protection system and build a
  systematic LT network with mapping
• Shunt Capacitors

• Customer Services
• 24X7 control room and fault attendance centre
• Call center facility for power related complaints
• Introduced on-line cash collection centers
• Mobile Customer Service Van
• Customer service center for registering and
  processing complaints
• User friendly electricity bill

• Reduction in Losses
• Provide systematic metering for accurately
  measuring consumption of the customers
• Securitisation of the network and extensive
  vigilance
• Conduct raids to minimise theft
• effective disconnection of supply of defaulters
• Streamline processes and database to improve
  collection efficiency
• Ujjwal Bhiwandi Abhiyan

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EHV Network Augmentation

• Joint Team of TRANSCO / DISCOM / DF to identify
  the bottlenecks in Transmission Network
• 3-Years EHV Augmentation Plan prepared and got
  approved
• Reconfiguration of EHV Lines
• Additional power transformers
• New EHV Substation
• Switchyard extension for 22KV feeders
• 250 MVA Transformation capacity added so far
• 50 MVA more very soon

Demonstrative example of Public-private
partnership
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Additional 22KV Feeders

• Overloaded 22KV feeders
• Additional 29 Feeders
• To relieve overloaded
• Reduction in I2R losses
• Reconfiguration of feeders
• Long Feeders controlled through intermediate SF6
  breakers

Reliability Improvement reduction in losses
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Shunt Capacitors

• HT Shunt Capacitors to improve PF and create
  margins on the feeders
• Reduction in I2R losses
• Improvement in voltage profile

Improving supply quality reduction in losses
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Distribution Transformers

• Revamped all the transformers
• Replaced 1499 Nos of transformers
• Added 150 MVA of DT Capacity by adding new
  transformers and replacing existing transformers
  by higher size

Improving supply quality, reliability and safety
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LT Network Revamping
Creating a safe and robust distribution network
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SD 5 Network Cleaning

• An intensified effort to build safe and robust
  network, to be done area wise
• Network augmentation
• Removal of double feed
• Pole earthing
• Balancing DTC loading and DTC metering
• Regularize unauthorized connections
• New services under UBA
• Detection of theft
• Non payment of bills

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Ujjwal Bhiwandi Abhiyan

• Launched a special scheme Ujjawal Bhiwandi
  Abhiyan, to provide safe and legal electrical
  connection with simplified procedure to small
  house dwellers
• Encouraging response since launch of the scheme
  in Sept 07 - 37000 connections released so far

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Metering

• gt80 of the meter population replaced new
  electronic meters
• Securitization of the Metering Assets

Improvement in Commercial Efficiency with network
improvement to sustain operations
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Customer Care Centers
Extended timings of counter upto 9 pm and Open on
Sundays and Holidays
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Improved Interaction with Customers

• Letters with bills informing customers on the
  activities being undertaken by the company
• Set up a Customer Advisory Committee which meets
  regularly to discuss issues faced by customers
• Committee consists of prominent citizens of
  Bhiwandi
• Completes the communication loop between the
  company and the customers
• Set up Internal Grievance Redressal Forum for
  timely resolution of all customer grievances

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Established Meter Testing Laboratory
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24 x 7 Call Center
Supports Automatic Call Distribution
Increased focus on improving customer satisfaction
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Customer friendly bill
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Public Safety Awareness
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Community development activities
Dahi Handi
Ganesh Chaturthi
Iftar Party
Becoming a part of the social fabric
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Torrent Power has invested over Rs. 250 Crores
for improving the network and services at Bhiwandi
Investments have brought in noticeable
improvements
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Major Accomplishments DT Failure Rate
As on 26-01-07
As on March 09
40
DT Failure Rate down to 7.5 from 40
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Major Accomplishments Load Shedding
As on 26-01-07
As on March 09
6 to 8 hours
Reduction in losses has improved power
reliability in the area
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Major Accomplishments Accurate Metering
As on March 09
As on 26-01-07
23
95 of sales is based on actual reading.
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Major AccomplishmentsATC Loss
As on 26-01-07
As on March 09
58
Reduction of 34.5
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Thank you
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Employees on Deputation

• MSEDCL employees all across State were given an
  option to join DF in Bhiwandi on deputation
• TPL selected MSEDCL employees from such willing
  employees
• Benefits to Deputationist
• They continue to be on rolls of MSEDCL and would
  join MSEDCL on the end of deputation term
• No loss in terms of seniority at MSEDCL
• Experience of working in new system
• Financially more rewarding
• Recognition of performance and suitable rewards