Project Overview

1
Welcome Presentation / Discussion On Management
of Distribution of Power Karnataka
2
PROFILE OF Karnataka (2006-07)

• Installed Capacity 7678
  MW
• Energy Availability 38057
  mU
• Peak Demand - 5576
  MW
• Average Delivery cost Rs 3.55/Unit
• Average Rate of Realization- Rs 2.90/Unit
• Average Power purchase Cost- Rs 1.82/Unit
• No of Sub-Stations 830
  Nos
• EHT lines 32036
  ckt kms
• Employee Strength
• Sanctioned 11,312 nos.
• Working 5,440 nos.
• T D Losses - 27
  
• Transmission Loss - 4.18
• CAPEX (06-07) - Rs 2700 Crs

3
Reforms effect on Distribution

• Four Pillars of Distribution Reforms
• Competitive Power Generation
• Creating robust infrastructure
• Better Quality / Quantity of Power
• ROI and Boost efficiencies all around
• How did we start ?
• 5 DISCOMS formed
• Stronger control of resources
• Audits / Checks to optimse
• Performance incentives

4
Managing Distribution

• Issues on Hand
• Huge losses resource loss for new investments
• Low Consumer Satisfaction Problem with
  quality,quantity,pricing etc
• Poor Employee Morale Employees lacked motivation
  to perform

5
ESCOM Strategy

• Reduce Loss / Introduce Auditing
• Beef up production / track the power
• Innovate to boost employee morale
• Involve people, Gain respect

6
Strategy At work
Cut Loss / Energy Audit Beef up production Boost Morale Involve People
Micro Audit Identify theft Study user profiles Better supply Add capacities Build transmission infrastructure Smart management of available power- RLMS Training Performance Incentives MIS at work Computerisation is 100 Consumer Friendly steps Village Reps at help
7
Involving PeopleImproving rural revenues

• ESCOM Program - Grama Vidyuth Prathinidhis
• Meter Reading, Billing Distribution and Revenue
  Collection.
• Depositing the Collections with the Utility.
  Registering Complaints and Forwarding to Utility.
• Facilitating attending the Grievances of
  Consumers - Domestic, AEH,Commercial, Small
  Medium Industries
• Regular Feed Back about Field Realities
• Result ?
• 3425 GVPs in 5605 GPs /Revenue Collection up
  30

8
Energy Audit of DTCs( as on 31.03.2006)
88.99
77.45
9
Energy Audit of DTCs( as on 31.03.2006)
58.68
31.56
5.85
1.88
2.63
10
Some results
YEAR 2002-03 2003-04 2004-05
ARR (Ps) 264.47 283.73 289.61
ATC losses () 42.30 43.31 36.38
TD losses() 31.95 30.88 29.52
11
Some results

• Transmission Losses reduced from 6.2 to 4.18
• Power Generation up
• Distribution losses down by 6 - About 2100
  Million Units ploughed back into the system for
  consumers
• Metering up by 88.5- ( Barring exceptions such
  as IP Sets, BJ ,Street Light )
• Pre Paid metering / Spot Billing
• Payment Conveniences (ATPs) and Grievance
  Redressal (Sounjanya Counters)
• Industries / Businesses in Bangalore now get Un
  restricted Power

12
ESCOM Goals Directly affecting Consumers

• Distribution automation in BESCOM
• Japan aid to boost distribution capacities
• Smart management of AB Tariff -No Grid Failure
• 24 Hours power supply for rural areas
• 55 Parameter Performance appraisal for DISCOMS to
  compete
• Usage of Technology in a big way
• Consumer friendly initiatives
• Rated as One of the Best in India

13
Building Strengths- Way Forward

• Increase spending -Creating world class
  infrastructure Rs.2700 Crores
• One Sub Station a day
• New Distribution Transformers in all DISCOMS
• Reconditioning of Existing Infrastructure
• Outer Ring Strategy Connecting all Industrial
  areas
• Spending Rs 4000 Crores in Distribution for
  providing Quality, Reliable and Un interrupted
  Power Supply to Consumers.

14
Distribution Success - BESCOM

• Bangalore is First in Karnataka / India having
  ZERO Distribution Transformer failure since 3
  Years
• 9.5 Energy Loss registered in Bangalore, the
  lowest in the cities in India
• The net increase of Revenue on account of
  Efficiency measures is about Rs. 566 Crores
  during One Year

15
ESCOM Tasks for the year

• Aim to be Best in India
• Focus on ESCOMS with 55 Parameters bench marked
• Each Division to be a Strategic Business Unit
• Matrix of Performance is devised
• Incentives/ Disincentives for ESCOMS
• Focus on the Transmission Distribution-
  Tripling the Capital investment
• Metering all Installations /Re conductoring of
  Trunk feeders
• Big injection of MIS-IT initiatives
• Consumer Billing on the Net / e-tendering
• Centralised Billing information
• 24 Hours customer care centre

16
Major Initiatives that will substantially improve
the power distribution metrics

• Quality Power for all by 2008 Fillip to
  Industries / Homes
• Intra- State Availability Based tariff (ABT)
  Competing for the benefit of Consumers
• Integrates SCADA Power Management that will
  test skills of Corporates / Industries

17
Distribution Rural Electrification -Improvement
Initiatives In Karnataka

• KPTCL ESCOMS are making focused efforts at
• Reaching electricity to uncovered 463 villages
  15756 hamlets through RGGVY.
• Improving rural distribution network through
  franchisee models to improve revenues, reduce
  ATC losses, trim costs provide continuous and
  reliable power supply.
• Putting in place an effective and workable
  consumer grievance redressal mechanism for
  improved supply quality.

18
Adoption of PPP model for achieving goals

• Turnkey contracting through competitive bidding
  process for participation of private
  entrepreneurs, private and public institutions in
  the distribution network improvement programs.
• Facilitating time bound implementation of these
  programs to avoid cost time overruns and to
  keep pace with central calendar of objectives.
• Encouraging private participation in
  non-conventional sources of generation.

19
Franchisee models in operation

• 1.Input Based Franchisee - External (IBF-E)
• Distribution feeder is the unit.
• Value of input energy based on BST, related to
  baseline revenue loss saving
• 40 distribution feeders in HESCOM covered.
• HESCOM proposes to extend IBF-E to 300 more
  feeders

20
Franchisee models in operation (contd)

• 2. Micro-Feeder franchisee(MFF) / Gram Vidyut
  Pratinidhi (GVP)
• Gram Panchayat area covering an avarage of 8
  villages is unit.
• 3425 GVPs operating against 5606 gram
  panchayats.-effort is to maximize coverage.
• Proposing to convert GVP to MFF framework
  involving additional functions compilation of
  real time data base on consumers assets ,
  assisting ESCOMS in universal metering etc..laced
  with added incentives.

21
Franchisee Models In Operatin (contd)

• 3. Distribution management through Panchayat Raj
  Institutions
• Gram Panchayat area is the unit.
• Overall transfer time proposed as 5 years.
• Framework includes capacity building in gram
  panchayat in
• a. Consumer meter reading, billing
• collection
• b.Service connection maintenance
• functions
• c. Asset Management

22
Franchisee Models In Operation (contd)

• 4. Internal Input Based Franchising Model (IIBF)
• Employees at sub division level are encouraged
  to take up distribution feeder improvement.
• Incentives paid for management performance
  improvement as benchmarked
• Objective is to instill a sense of ownership to
  employees.
• Getting good response from MESCOM, CESCO and
  BESCOM

23
Objectives of franchising

• Making franchisee framework attractive to
  participants in the franchisee operations.
• Fixing a turn around time table for sustainable,
  better managed more rewarding distribution
  feeder network.
• Enabling ratio rework of technical commercial
  losses
• Creation of comprehensive and dependable
  consumer information system
• Providing reliability and clarity to consumer and
  asset data for proper risk evaluation and
  management

24
Mechanism in Place for implementation

• We have put in place
• Propoer contractual, legal commercial framework
  for franchisee operation.
• Attractive incentive schemes to franchisees for
  various operations related to deliverables.
• Sound monitoring guidelines for improved
  performace measurement.
• Sound evaluation yardsticks for franchisee
  performance.

25
Thank You