Transcript Document

Retrospection of Reforms in
Distribution -A Way Forward
By
Lead AcC’s (NTPC)
12th May, 2006
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Opening of sector in early nineties didn’t
result into much capacity addition in
Generation by I PP’s
The same was studied by No. of Committees
Chaired by eminent persons
The committees were of the opinion that
Reforms in distribution be initiated to provide
comfort to prospective developers to attract
investment in the sector
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The Objective of Reforms :
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Improve Commercial viability through reduction of
AT&C losses
Improve Customer Satisfaction through
reduced outages & interruptions
Initiatives Taken for Reforms by
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Investment support
Incentivization
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APDP
APDRP
RGVVY
 Methodology
Support Utilities who agree to Reforms
By Signing MOU,MOA,TPA
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MOU
Complete Feeder Metering by 31st Dec,02
 100% Consumer Metering
 Energy auditing & Accounting
 Minimum Agricultural Tariff
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MOA-Based on Interventions in
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Administrative
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Designation of Circle in charge as CEO / BUH with delegation
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Designation of JE as feeder manager
Technical
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Turnkey execution with standard specifications
IT enabling with consumer indexing and data logging
Commercial
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Energy Audit & Commercial Accounting with 100% Feeder
Metering
Franchising & Outsourcing Policy
( Salient Points of MOA)
Other initiatives
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Appointment of AcC’s for monitoring implementation
Capacity building exercises through NTPC, PMI and DRUM Project
Regular review by MOP at all levels
Schemes-Sanctions-Investments
Sanctioned after review for each of scheme to comply with APDRP
objectives and scheme bundled in Cat-A & Cat-B components with
agreed Key Performance Indicators ( Bench Mark Targets ) . The
categorization had been done in consultation with Ministry of Finance
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Cat-A ( Mandatory )
Targeted to reduce commercial losses and increase reliability by
Feeder Metering – ( For measuring energy flow & Identification of losses at feeder level)
Distribution Transformer Meters – ( For measuring losses in 11 KV Feeder and enabling
energy audit/accounting below DT level)
Sub-Station R&M (Reliability improvement )
Power Factor improvement (Capacitor Placement for loss reduction )
Distribution Transformer R&M - (Reliability improvement)
Service connection Improvement ( Prevention of tampering and fraud at consumer level)
IT Enabling based on IT Road map incl. Sub Station Automation- ( For bringing
efficiency, transparency, and accountability in business process )
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Cat B (ST&D)
Targeted to reduce technical losses and capacity augmentation by
New Sub Stations
Bifurcation
New Lines
Reconductoring
Teething Problems
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Programme Implementation quite fast - Lack of
understanding by Utilities
Utilities prepared schemes in conventional manner
lacking business like approach
Implementation by departmental works rather Turnkey
approach
Organizational set-up and existing systems & procedures
not conducive for fast implementation
Non availability of initial bench-marks -nonexistent MIS
Slow dissemination of objectives and guidelines of
schemes, its intent and purpose of scheme and to treat
the schemes as funding normal development works
Analysis of Implementation
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Initially circle was selected for implementation of
the scheme as in smaller area i.e., in Division
/sub division electrical network was not
congruent to territorial jurisdiction of controlling
officer.
With circle as scheme area it had been difficult to
finalize the bench mark parameters since it
includes high component of assessed energy.
Subsequently focus of the program has been
shifted to urban areas to have measurable bench
mark parameters.
Analysis of Implementation
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Even though agreed in MOA following conditions
not adhered / improperly implemented
Reluctance of Utilities to enforce MOA conditions. This is
on account of resistance of middle level staff (DE/EE)
 Inability of utilities for creating separate Energy and
Revenue accounting system on Business unit basis with
distinct responsibility centre i.e., revenue,O&M,const,
contract & Procu,Stores, Customer relations etc.
 Turnkey Execution- Even where implemented, lack of
Project Mgmt. and turnkey concept not followed in true
spirit, besides lack of enabling systems and
procedures,delay in award of contracts & execution of
schemes
Business units
 Empowerment of CEO of circle- Delegation
 Fixing Accountability/Responsibility
 Franchising/Outsourcing Policies
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Analysis of Implementation
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Frequent transfer of the officers in charge of
implementation
R&M of old and defective equipments. – A non
starter in most of the schemes, the utilities are not
keen to execute this portion.
Delay in release of funds from State Finance
department to Utility. The Counter part fund
though available with funding agency but utilities
preferred to exhaust grant component before
drawal of counter part fund.
( Delay in Fund Release)
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Tendency to include all expenditures under APDRP
and treat APDRP as a central assistance funding
program as most of the States/ Utilities have
stopped/reduced funding for normal
developmental works in annual budgets.
(Reduced Support)
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Delay in implementation of Cat A component of the Scheme.
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Energy Audit and Accounting –lack of willingness to
implement except Feeder Metering –Meters provided not
being read where read data not utilized
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Distribution Transformer Metering- Progress of meter installation is
slow.
Customer indexing not carried out in proper way. The energy audit has
started in urban Towns of BESCOM and MSEDCL only BESCOM could
reduce commercial losses considerably whereas due to improper
indexing by MSEDCL results did not accrue
Do not want to implement integrated IT platform across different
business processes Data acquisition and IT enabling. Even though IT
Task force has identified methodology and for steps for deployment of
IT as a key enabler of business process improvement and bringing
transparency. There are isolated examples of IT deployment which is
not bringing desired outcome
Priority execution of CAT B items- Targeted to Capacity augmentation
No administrative measure to bridge the gap between ARR and ACS
thereby demand grows due to improved ST&D network , increasing
revenue gap.
( Example )
Observation
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Energy accounting was being done in
rudimentary form manually without any
responsibility. Moreover there had been a gap in
data availability of four months or more for
accounting purposes. Energy accounting is not
been linked to revenue collection.
Unable to implement precise reliability index to
international standards in absence of proper data
acquisition. Presently only manually recorded no
of interruption along with it’s duration is being
used for reliability calculation.
MIS is not based on reliable data. Moreover MIS
is not based on exception reporting which is
feasible only through IT enabling.
INITIATIVES FOR TURN-KEY EXECUTION OF
PROJECTS
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CLEAR AND STRICT QUALIFYING REQUIREMENTS AT
THE SAME TIME ENSURING ADEQUATE COMPETITION
WELL DEFINED EVALUATION CRITERIA
SCOPE CLARITY
WELL DEFINED EQUIPMENT PERFORMANCE
PARAMETERS – ENHANCED GUARANTEE/WARRANTY
PROVISIONS
STRICT QUALITY AND INSPECTION NORMS PRIOR
VENDOR APPROVAL
TURN-KEY CONTRACTOR MADE RESPONSIBLE FOR
MEETING THE PROJECT PERFORMANCE BENCHMARKS
PROPER PROJECT MANAGEMENT
Improvements
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Improvements in
bench mark
parameters
captured are
illustrated Here
(AT&C
Losses.. )
(AT&C
IMPROV..)
Suggested implementation methodology-Next Step
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The amount of information required for efficient
management of distribution system is not possible
manually hence IT support is mandatory for the size of
our units 0f Divisions/Sub Divisions.
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The created IT infrastructure will be scalable to include
adjoining areas and replicable for further deployment
Analysis of loss monitoring on real time basis
The schemes to be prepared in consultation with utility officials
of the scheme area.
The existing bench mark parameters shall be validated by the
implementing agency.
Ring fencing ensured (Missing or defective meters shall be
provided) before establishing bench mark parameters.
Suggested implementation methodology-Next Step
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The responsibility of scheme execution should be entrusted
to third party in line with the principles adopted for RGGVY
i.e., SPV etc.
The IT platform ( Technology/ Vendor neutral) adopted
shall be uniform for all states.
Implementing agency to act as catalyst necessary for
implementing change management and Business Process
Reengineering necessary for adopting the IT based Business
Process.
The out sourcing of Customer Care Center along with the
maintenance of electrical network below Primary substations
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(33/11
KV) for increased Customer satisfaction.
To select one town from each State on pilot basis in the FY
2006-07 before extending the same to all district towns and
major urban areas
Building Integrated IT Backbone
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Foundation of building IT backbone is GIS based
customer indexing and asset mapping/indexing.
The basic features of GIS platform considered are
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The satellite imagery map of resolution 2.5 meter GSD per pixel
shall be used for land base.
The indexing exercise shall be carried out by DGPS survey along
with recording of necessary attributes of consumer and assets.
Only OGC compliant GIS software shall be used for GIS
application.
For storing spatial data and network information only ODBC
compliant RDBMS such as Oracle shall be used.
The GIS application shall be integrated with MBC, CRMS,
Network analysis, Energy Audit, AMFM system and will
have facilities to integrate with network management
applications such as SCADA/DMS in future
Building Integrated IT Backbone
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The most critical function of Distribution i.e., Metering
Billing & Collection shall be IT enabled and linked to GIS
application by
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Interconnection of billing/ collection centers through a dedicated
network in WAN formation
The system shall be equipped for spot billing and will be
enabling for deployment of AMR/Pre Payment metering in future
with online disconnect feature for loads up to 15 kw .
This will also be enabled for Web Deployment and On line
Payment facility as per requirement.
System will track all meters from deployment to completion of
life.
Building Integrated IT Backbone
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To establish and monitor performance bench marks it is essential to
record energy flow at all transformation levels DT upwards
For fool proof energy auditing/accounting and theft control it is
essential to collect all information without human intervention hence
automatic data logging has been proposed with following features.
 Collect data, convert and store from meters irrespective of
source/make through API provided by the respective meter
provider.
 Linking of all S/Stns to central database server
 Store data at central server by use of hybrid
(PSTN/GSM/RTU/PLC/LPR) communication medium.
 HT consumers shall be brought under this system for online
monitoring of their consumption/Temper with alerts.
 All manned primary sub station’s will be provided with a PC for
monitoring sub Station energy flows.
Building Integrated IT Backbone
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For proper energy accounting and auditing
following features are to be adopted
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Linking of Consumer billing, collection energy and
revenue data to DTs, feeders and substations with help
of indexed data base . This will help feeder manager to
function as a business unit
GIS based indexing coupled with network analysis tools
to provide technical loss estimation based on power flow
in the system to identify commercial losses in each of
network elements/nodes.
Demand Side Management
Proposed IT Infrastructure
GSM Service provider
33/11 KV S/S
Feeder Meter & GS M /
P S TNModem
11 KV Feeder
CRM Server
GIS Server
Data acquisition Server
Network
11 KV Feeder
Mobile maintenance
van
DT
data base Server
Application Server
Back up Server
Plotter
S pot billing machine
Meter & GS M Modem
HT Consumer
Collection center
Sub Division -- II
Expectations from Utility
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Along with the scheme implementation the
followings need to be carried out by utility
1. Business Process Reengineering to suit
electronic work flow and initiate necessary
change Management.
2. Creating atmosphere in the organization for
adopting IT and Capacity Building of
employees at all Level.
3. Empowering employees to take necessary
administrative measures to reduce losses
The IT enabled business
process coupled with above
measures will enable utility
to create globally acceptable
bench mark.
RGGVY
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Implementing Infrastructure/Mechanism
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REC is nodal agency for implementation and responsible for
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REC entered into MoU with
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Project planning & monitoring
Sanction of Project (by Monitoring Committee)
Funding of Projects
CPSUs (NTPC,POWERGRID,NHPC and DVC)
State Govt.
State Utility
For assisting REC in the execution of RE projects under three
options
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Turnkey execution
Assistance in tendering, engineering, project monitoring &quality
assurance during field execution
Project monitoring &quality assurance during execution
Continue..
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Project execution envisaged following stages
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Agreement –formulation of working arrangement
Preparation of Detailed Project Report(DPR)
Specifications, tendering and award
Detailed Engg. and site execution
Detailed Project Report
DPR preparation involves the following
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Data collection/validation
Technical detailing w.r.t Engg. guidelines/practices
Estimation of BOQ and Cost estimate
Sustainability analysis
Data Collection
-To be provided by State utility
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Existing distribution system details
Census data e.g. List of villages, population, list of BPL,APL
-Constraints
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No data available with some states
Partial data available/inconsistency of data
Authenticity of data
Very old data
Continue..
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Lessons learnt from APDRP have been
utilized to modify implementation
methodology in RGGVY.
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The fund in the form of additional central
assistance is given to implementing agency and
not to States.
Turnkey execution is mandatory
Revenue sustainability through franchisee .
A single nodal agency has been fixed for
implementation
Specification,Tendering &Award
The practices followed by state boards are at variance with in terms of
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Quality standards and its enforcement
CPSUs practices
- Payment terms
- Qualifying requirements
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REC estimates Vs CPSUs
Market Trends
-Availability of material
-Sub –venders infrastructure/capability
Availability of agency
-Numbers of executing agencies
-Few leading to over loading of agencies
-shortage of raw material like copper/steel
Project execution involved the following
-Engg. , manufacturing & quality
-Delivery of equipment to site
- Site execution with field quality assurance
Challenges during Implementation
Agencies not accustomed to manufacturing quality
-Sub vendor approval
-Type test
-Project Planning
-Quality systems during manufacturing
-Inspection/Dispatch of material as per schedule and
sequence
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Inadequate manufacturing Capacity
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Lack of experienced /expert field personal
Lack of System /Procedure
-Store management
-Project Planning
-Monitoring
-Quality System
New technology /Interventions
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Use of Satellite Imaginary Method for survey
work
Voltage regulation calculation by Advance
Software(NEPLAN)
Use of
-ABC cable
-Low loss Transformer(Amorphous core)
-Type tested AB switches
-PC base mimic display of S/S along with parameter
-GI lattice structure
-Standardize hardware material
Post Execution Problems
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Planning by utilities to deal with change
Change in organisation set up
Takeover by the State Utility
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Higher consumption
Additional area to be served
Additional O&M cost
Franchisee system
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States not geared up
No previous experience-As envisaged system not in place
Speedy efforts from utility are required