10

A.P. Arunachal Assam

36.68 39.31 47.54 27.73

20

30

40

50

60

70

Bihar
42.55

Chattisgarh Delhi Goa Gujarat

32.07 24.2 45.05 43.66

Haryana
22.78

H.P. J&K Jharkhand Karnataka

21.63 23.29 25.35 45.54

NationalAverage 32. 53 %

Kerala M.P. Maharashtra Manipur

16.73

41.44 34.12 65.18

Meghalaya
55.54

Mizoram Nagaland Orissa Punjab Rajasthan

54.99 25.96 43.74 55 57.09

Sikkim T.N. Tripura U.P. Uttaranchal

31.01 35.17 17.16 46.44

State-wise T&D Loss (%) 2003-04

49.23

W.B.

91-92 92-93
21.8

22.83

93-94
21.41

94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03

(Source : CEA) 2

21.13

22.27 24.53 24.79

26.45

30.93

32.86

33.98

T&D LOSS IN THE COUNTRY

32.54

(In %)
32.53

03-04

ANOMALIES IN T&D LOSS COMPUTATION

In absence of feeder metering in the past, substantial portion of T&D loss, including theft of electricity gets attributed to agricultural consumption. While, agricultural consumption is around 20-25%, utilities were showing it as 35-40% and correspondingly T&D losses shown as 20-25%. Also, T&D loss was being computed taking into account electricity bills issued to consumers as accrued income & not on actual collection. Therefore, T&D loss figures did not capture the major gap between the billing and the collection, apart from large amount of theft. To get over this problem, concept of Aggregate Technical & Commercial (AT&C) loss was introduced.
3

AT&C LOSS
It is the difference between units input into the system and the units for which the payment is collected. T&D Loss do not capture losses on account of non-realisation of payments. AT&C Loss is the clearest measure of overall efficiency of the distribution business as it measures technical as well as commercial losses. AT&C Loss(%) = (Energy Input Energy Realised)X100 Energy Input Energy Realised = Energy Billed X Collection Efficiency Collection Efficiency (%) = Amount Realised X100 Amount Billed
4

AT&C LOSS OF POWER UTILITIES %

AT&C LOSS OF POWER UTILITIES %

AT&C LOSS OF POWER UTILITIES %

AT&C LOSS BELOW 25%

State/Utility APNPDCL APSPDCL APEPDCL Tamilnadu APCPDCL Punjab Meghalaya 2001-02 26.14 24.45 27.29 19.26 28.80 27.66 21.64 2002-03 26.84 27.26 19.32 20.50 29.68 26.52 24.97 2003-04 10.41 17.17 17.79 18.00 19.12 22.39 24.20 8

Utilities With AT&C Loss between 25-50%

State/Utility MESCOM (Kar) Kerala BESCOM (Kar) 2001-02 40.50 30.76 40.50 2002-03 26.66 29.08 26.05 2003-04 26.01 27.44 29.20

Tripura
Gujarat HESCOM (Kar) Chattisgarh JVVNL (Raj) Pondicherry JDVVNL (Raj) GESCOM (Kar) Maharashtra AVVNL (Raj) MVVNL (UP) NDPL (Del) BRPL (Del) WESCO (Or) Goa DHBVNL (Har) PoVVNL (UP) PaVVNL (UP)

32.10
23.28 40.50 39.03 59.31 38.97 52.77 40.50 45.70 49.04 46.92 48.10 48.10 57.18 48.52 40.69 46.92 46.92

34.17
31.24 34.35 37.47 40.11 41.67 42.17 31.01 45.13 41.42 31.78 47.79 47.40 47.30 46.38 39.75 31.78 31.78

31.05
31.05 31.82 35.40 38.62 41.01 41.56 43.74 44.18 44.57 44.57 44.86 45.07 46.18 48.39 48.68 48.82 9 49.70

Utilities With More Than 50% AT&C Loss

State/Utility CESCO (Orissa) SESCO (Orissa) BYPL (Delhi) Assam M.P. UHBVNL (Haryana) DVVNL (U.P.) Nagaland Jharkhand J&K Bihar Mizoram Manipur Sikkim 2001-02 63.64 52.80 57.2 36.95 40.32 45.92 46.92 61.00 63.29 69.10 79.74 74.35 81.37 2002-03 55.04 49.76 61.89 37.53 49.92 42.82 31.78 57.86 53.00 61.71 68.64 75.15 76.88 80.5 2003-04 51.10 51.56 54.29 54.41 52.56 52.84 59.30 59.76 65.00 67.58 68.50 72.41 72.62 78.27
10

91-92

3000

92-93

4560

93-94 6125

5060

TOTAL COMMERCIAL LOSSES OF SEBs/UTILITIES

(Source:Plg. Comm/ PFC)

93-94 8770

95-96 11305

96-97

13963 97-98 20860

98-99

99-2K

26353

2K-01

25259

(WITHOUT SUBSIDY)

01-02

27068 02-03
11

Fig Rs. in Crore

21064 03-04 20623

TOTAL LOSS OF UTILITIES W/O SUBSIDY

(% OF TURN OVER)
41.29 37.17 33.00 26.22 24.61 24.57

15.79 13.59

96-97

97-98

98-99

99-00

00-01

01-02

02-03

03-04
12

(Source : Plng. Comm./PFC)

ACS, ARR & REVENUE GAP

(Power Input Basis)

250 225 200 39.00 71.03 175 150 125 100 75

Paise

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

ACS

ARR

2003-04

13

REASONS FOR AT&C LOSSES

Technical Losses: Overloading of existing lines and substation equipments Absence of up gradation of old lines and equipments Low HT: LT ratio Poor repair and Maintenance of equipments Non-installation of sufficient capacitors

Commercial Losses: Low metering/billing/collection efficiency Theft & Pilferage and tampering of meters Low accountability of employees Absence of Energy Accounting & Auditing

14 Contd..

ONE OF THE MAIN REASON FOR INCREASE IN LOSSES IN THE SECTOR IS LOW INVESTMENT IN THE T&D IN COMPARISON TO THE GENERATION.
1.4 1.2 1 0.8 0.6 0.4 0.2 0 1st PLAN T&D + RE 2nd PLAN 3rd Three PLAN Ann 4th 5th Annual 6th PLAN PLAN Plan PLAN 7th Annual Annula 8th PLAN Plan Plan PLAN 9th PLAN
Investment in generation and T&D including RE should be 1:1

INVESTMENT/EXPENDITURE ON T&D AND RE Vs INVESTMENT/EXPENDITURE ON GENERATION

15

INITIATIVES TAKEN BY MINISTRY FOR REDUCTION OF AT&C LOSS

1. CHIEF MINISTERS CONFERENCE:

Held in March 2001. Main resolutions:
(A) Energy audit at all 11kV feeders: 97% feeder metering achieved. (B) Full metering of all consumers: 87% consumer metering achieved. Majority of un-metered connections belong to flat rate category
16 Contd..

INITIATIVES TAKEN ..
C) SERC:
23 states constituted and 4 states notified. 18 SERCs have issued tariff orders

D) Commercial Viability to be achieved through

Profit Centre:

13 SEBs/EDs unbundled & corporatised. 9 are expected shortly.

Franchisees: Adopted With different models in Assam, Karnataka, Orissa & Nagaland and under active consideration of Andhra, Gujarat, Bihar, W. Bengal. Privatisation : Delhi & Orissa. Uttar Pradesh has invited EOIs.
17

STATUS OF REFORMS
STATE SERC Number of T/O by SERC 6 4 2 3 5 1 3 4 3 2 Feeder Metering (%) 100 100 100 100 100 100 100 100 100 90 100 2 3 2 1 100 100 100 86 Consumer Metering (%) 91 100 93 87 91 81 97 82 92 100 97 90 84 94 75 Energy Audit initiated Andhra Pradesh Delhi Gujarat Maharashtra U.P. T.N. W.B. Karnataka Haryana H.P. Goa Assam Punjab Rajasthan Jharkhand 1999 1999 1998 1999 1998 1999 1999 1999 1998 2001 2002 2001 1999 1999 2003

18

STATUS OF REFORMS
STATE SERC Const. 2002 1996 1998 2002 2005 2004 2001 1 Number of T/O by SERC 2 5 3 1 Feeder Metering (%) 100 95 100 100 41 100 91 Consumer Metering (%) 92 81 72 100 50 81 68 Energy Audit Initiated Uttaranchal Orissa M.P. Kerala Bihar Tripura Chattisgarh

J&K Sikkim
Manipur Meghalaya Mizoram Nagaland Arunachal

2004 Notified
Notified Notified Notified

95 49
21 100 92 50 0

40 87
82 50 96 61 46

19

INITIATIVES TAKEN ..
2. MEMORANDUM OF UNDERSTANDING States were to sign MOU for assistance from Govt of India and mandate taking up reforms in the power sector. Key parameters are : Obligation of the State Government
Setting up of SERC & Rationalisation of Tariffs Reorganisation of State Electricity Boards Metering of 11 kV feeders & of all consumers Energy Audit at all level 100% Electrification of villages and hamlets

Support from Government of India

Supply of additional power wherever feasible: 4000 MW allocated to various states Assistance for distribution system: APDRP Funding for 100% rural electrification: Rajiv Gandhi Grameen Vidyutikaran Yojana Strengthening & improvement of transmission network by POWERGRID: 2990 Ckt. Km added during 2004-05 Concessional financing by PFC: Interest rate for distribution work @ 8.25% 20 Contd..

INITIATIVES TAKEN..
3. Accelerated Power Development & Reforms Programme
The programme aims at :
Reduction of AT&C losses Bring about Commercial viability Reduce outages & interruptions Increase consumer satisfaction

The programme has two components: INVESTMENT COMPONENT covers strengthening and upgradation of sub-transmission & distribution INCENTIVE COMPONENT is a grant for states / Utilities towards reduction of cash losses with 2000-01 as the base 21 year

INITIATIVES TAKEN.. Investment Component

19489 19489

14704

16603

2002-03

1756 587

2003-04
Sanctions

4113 3306

2004-05
Releases

5541

6709

2005-06
Utilisation
22

Year Wise cumulative status of APDRP (As on 31.05.2005)

5541

7166

Investment Growth in Power Sector

As per the report of Economic Intelligence ServiceDec. 2004, the growth in power sector during the previous year was 27.3% (as of Oct 04) which includes growth in generation 23% and in distribution 53%. The overall investment in Power Sector was Rs. 5,37,885 Cr. compared to Rs. 4,22,246 Cr. last year. Whereas, the investment in distribution sector was Rs. 21,072 Cr. as compared to Rs. 13,764 Cr. last year.
Source: CMIE

23

INITIATIVES TAKEN .. Incentive Component

Sl. Name of States Year
1. Gujarat 2001-02

Reduction in Eligibility Incentive Cash Loss for Incentive Released

472.76 236.38 236.38

2.
3. 4.

Haryana
Maharashtra Rajasthan

2001-02
2001-02 2001-02

210.98
275.78 275.42

105.49
137.89 137.71

105.49
137.89 137.71

5.
6.

Andhra Pradesh
West Bengal

2002-03
2002-03 2003-04

530.22
146.00 605.52 129.88

265.11
73.00 302.76 64.94

265.11
73.00 302.76 64.94

7. Kerala

2002-03

Total

2942.66

1323.28

1323.28
24 Contd..

Incentive claims of Gujarat & Punjab are pending for release with MOF

INITIATIVES TAKEN ..
4. MEMORANDUM UNDER APDRP OF AGREEMENT (MOA)

The Main features are:

Constitution of Distribution Reform Committee for monitoring of reforms, APDRP implementation etc. 100% feeder & consumer metering

Energy accounting and auditing

Setting up of performance benchmark parameters Policy for franchisee & outsourcing Turnkey execution of APDRP schemes Operation of circle & feeder as profit centre

25 Contd..

INITIATIVES TAKEN .. Theft Control 5.

ANTI-THEFT PROVISIONS IN ELECTRICITY

ACT- 2003 (Sec:135-137, 153)

Provides legal frame work for making theft of electricity a Cognizable offence. States to set up special courts & special police stations

To

provide

special

powers

to

utility

personnel for checking the installations.

26 Contd..

ACTION TAKEN BY STATES FOR THEFT CONTROL

STATE Implementation Of theft provisions of Electricity Act 03
Yes Yes Yes Yes

Special courts
Yes

Spl. Police Stations

Theft cases detected (Nos)

342620

Cases convicted (Nos)

7286

Amount realised (In Cr.)

38.11 9.17 81.89

A.P Chattisgarh Delhi

Goa Gujarat
Haryana H.P J&K Jharkhand Karnataka Kerala M.P Maharashtra Orissa Punjab Rajasthan Tamilnadu Uttar Pradesh Uttaranchal West Bengal Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

30 Yes
Yes

0.21 50.75
1656 13.09 0.15

Yes

48510
30350 239

3846 26606 3195 271094 15288

107

3.20 35.98 12.82 63.45

186

15.66

195641 9408 209112

104.93 46.00 23.80 4.40

109 2348

27

0.01 2.46

INITIATIVES TAKEN ..
6. 7.
8.

Consumer Indexing for Energy audit 11 kv Feeder Management required for Energy Audit

IT Initiatives to improve efficiency in metering, billing &

collection

9.

Installation of Capacitors to improve power factor System (HVDS) for preventing

10. High Voltage Distribution

theft and pilferage, better power management

11. Consumer Care for improved consumer satisfaction to

attend consumer grievances regarding metering, billing, no power supply
28

Other Initiatives By Utilities

STATE Feeder Mgmt. Initiated Consumer Indexing started Consumer Care Centre started Spot Billing initiated Computerised Billing started HVDS SCADA under impl. A.P. Delhi Gujarat Maharashtra U.P. T.N. W.B. Karnataka Chennai Hyderabad NDPL Vadodara BEST, BSES

Haryana
H.P. Goa

29

Other Initiatives By Utilities

STATE Feeder Mgmt. Initiated Consumer Indexing started Consumer Care Centre started Spot Billing initiated Computerised Billing started Jaipur HVDS SCADA under impl. Assam Punjab Rajasthan

Jharkhand
Uttaranchal Orissa M.P. Kerala Bihar Tripura J&K

Trivendrum

30

INITIATIVES TAKEN ..
12. WORKSHOP ON BEST PRACTICES

3 days National level workshop in Dec. 2004 on Best Practices adopted by State utilities in distribution sector was organised covering consumer indexing, metering, billing, revenue management, maintenance, project execution, quality management, IT enabling, outsourcing, loss reduction, MIS, customer satisfaction, HR initiatives etc.

13. CAPACITY BUILDING:

Training of utility personnel undertaken to

upgrade

knowledge in the areas of project formulation, project management, operation & maintenance etc. PMI (NTPC) & NPTI have trained more than 1800 personnel from various utilities. Training of 25,000 utility personnel has been taken up under DRUM Project in association with USAID. More than 350 31 personnel have been already trained Contd..

State-wise participation In PMI Training Programmes

Sl 1 2 State Gujarat Maharashtra Total Sl Participants 324 178 13 14 State Kerala Himachal Pradesh Total Participants 38 29

3
4 5 6 7 8 9 10 11 12

Madhya Pradesh
West Bengal Rajasthan Punjab Bihar Karnataka Tamilnadu Assam Haryana Goa

143
120 117 101 79 78 66 57 47 38

15
16 17 18 19 20 21 22 23

Chattisgarh
Andhra Pradesh Uttaranchal Meghalaya A&N J&K Jharkhand Uttar Pradesh Nagaland

27
27 18 16 08 07 07 06 03
32

INITIATIVES TAKEN ..
14. Distribution Reform Upgrades & Management (DRUM) Project: In collaboration with USAID
To adopt best commercial and technological practices to improve quality and reliability of last mile power distribution in 4 pilots projects in urban and rural areas.

Aurangabad (Maharashtra),
Delhi, Anand (Gujarat) & Doddballapura (Karnataka)
33

Financial assistance of US $ 20 million.

INITIATIVES TAKEN ..
15. RANKING OF UTILITIES:
To evaluate performance of utilities and to assess their improvements. CRISIL & ICRA engaged Parameters o External: State Govt. related : 19 points SERC related : 13 points o Internal: Business Risk Analysis : 27 points Financial Risk Analysis : 20 points o Attaining commercial viability : 16 points o IT adoption etc : 05 points Total : 100 Points Three Reports released
JAN 2003, JAN 2004 AND MARCH 2005
34 Contd..

INITIATIVES TAKEN ..
RANKING OF UTILITIES
State
Andhra Pradesh Gujarat Delhi Karnataka Tamilnadu Goa Himachal Pradesh West Bengal Uttar Pradesh Chattisgarh Rajasthan Maharashtra Punjab Haryana
(Source ICRA/CRISIL)

Mar 2005 Points

57.03 53.61 51.91 51.46 50.94 50.45 49.91 44.60 42.14 39.91 37.50 37.25 36.82 35.16

Jan 2004 Points

56.75 50.99 57.00 51.25 39.63 43.20 44.16 40.89 40.85 13.83 41.83 37.75 46.00 49.63

Rank
1 2 3 4 5 6 7 8 9 10 11 12 13 14

Rank
2 4 1 3 12 8 7 10 11 22 9 13 6 5
35 Contd..

INITIATIVES TAKEN ..
RANKING OF UTILITIES
State
Tripura Kerala Assam Meghalaya Madhya Pradesh Sikkim Uttaranchal Nagaland Orissa Jammu & Kashmir Arunachal Pradesh Mizoram Manipur Bihar Jharkhand
(Source ICRA/CRISIL)

Mar 2005 Points

31.65 31.48 27.32 26.72 22.79 19.07 18.60 15.80 13.63 9.43 9.20 7.88 6.55 5.78 3.00

Jan 2004 Points

12.60 34.25 27.43 23.03 24.75 15.87 37.75 14.13 20.31 8.50 9.05 10.80 - 11.90 10.63 0.00

Rank
15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Rank
23 15 16 18 17 20 14 21 19 27 26 24 29 25 28

There has been change in rating parameters in 2004 & 05 exercise with respect to 2003 as earlier parameters were not capturing total performance. 36
Contd..

INITIATIVES TAKEN ..
16. RELIABILITY INDEX (RI):
The Reliability Index of the power supply is being monitored for select towns at 11kV feeder level. RI at Distribution transformer level and consumer level to be established subsequently.

17.

MONITORING BY MINISTRY OF POWER:

APDRP Steering committee: 8 meetings held

Frequent Reviews of Utilities at Regional/State level by Minister, Secretary (Power) & JS (D);
Review by state level Distribution Reform Committees; NTPC, POWERGRID & CEA for monitoring at the field level Dedicated APDRP Cell in the Ministry

37

AT&C LOSS: BEST 15 TOWNS (%)

Town
Salem ( urban)` Tiruchengode Sherilingampally Kakinada Uppal Ludhiana (West) Kapra Amalapuram Chennai Adilabad

2001-02
9.45 8.92 9.28 8.92 8.13 18.68 8.07 8.87 8.68 44.56

2002-03
9.28 8.86 8.36 7.61 8.11 8.13 8.07 6.66 8.59 19.82

2003-04
7.52 7.79 7.83 7.98 8.00 8.02 8.04 8.13 8.22 8.23

Malkajigiri
Edapady Bheemili Erode (Urban)

8.35
14.10 15.60 10.48

8.35
11.25 5.85 11.33

8.30
8.52 9.54 9.95

Nizamabad

23.28

12.21

10.68
38

AT&C LOSS: WORST 15 TOWNS (%)

Sl.
1 2 3 4 5 6 7 8 9 10 11

Town
Jamtara Garwha Latehar Aizwal Pakur Naharlagun Osmanabad Daltonganj Darbhanga Pesu (West) Sahibganj

2001-02
83.33 82.30 75.58 88.39 74.14 76.70 80.03

2002-03
81.26 82.10 75.66 77.08 72.99 84.27 75.98 66.00

2003-04
80.35 76.15 74.54 73.70 71.89 71.37 69.04 68.20 67.57 66.73

69.67 69.86 62.09 52.50

70.32 65.27 40.16 53.93

66.23

12
13 14 15

Gaya
Dumka Chhatarpur Roorkee

63.35
62.30 60.01 59.85
39

AT&C LOSSES OF PRIVATE DISCOMS (%)

SL.
1

DISCOM
NOIDA POWER (UP)

2002-03

2003-04
-

2004-05
10.49

2
3 4 5 6 7 8 9 10 11 12

BSES (Maharashtra)
CESC (W. B.) BYPL (Delhi) WESCO (ORISSA) BRPL (Delhi) NESCO (ORISSA) SOUTHCO (ORISSA) CESCO (ORISSA) NDPL (Delhi) AEC (GUJRAT) SEC (GUJRAT)

19.60 61.89 47.30 47.40 52.25 49.76 55.04 47.79 18.74 14.23

18.00 54.29 46.18 45.07 50.36 51.56 51.10 44.86 16.68 12.98

11.32
17.16 33.79 40.60 40.64 42.96 45.71 49.37 50.12 -

DT FAILURE RATE: BEST 15 TOWNS (%)

Sl. 1 2 3 4 5 6 7

Town
Kakinada Chengleputtu Rajahmundry Anakapalli Anantapur Alappuzha Kollam

2001-02
0.70 6.00 0.93 2.50 1.00 4.00 3.00

2002-03
0.65 4.00 0.87 1.50 1.00 3.00 2.00

2003-04
0.63 0.68 0.82 1.00 1.00 1.00 1.00

8
9 10 11 12 13 14 15

Kozhikkode
Bhusawal Coimbatore (Metro) Kancheepuram

3.00
8.00 1.80

2.00
8.00 2.10 1.11

1.00
1.00 1.03 1.06

Trichy
Kadiri Tiruchengode Vijaywada

2.17
7.76 4.62

1.78
8.16 1.30 2.35

1.08
1.60 1.80 1.93
41

DT FAILURE RATE: WORST 15 TOWNS (%)

Sl. 1 2 3 4 5 6 7

Town
Daltonganj Ramchandrapuram Suryapet Nandayal Deogarh Jalgaon Roorkee

2001-02
26.00 22.42 25.68 30.00

2002-03
27.00 21.69 27.45 20.00 34.46 14.51

2003-04
26.00 21.66 20.11 20.00 19.58 19.48 19.10

20.59

15.74

8
9 10 11 12 13 14 15

Warangal
Latur Surat Alwar

25.60
19.20 28.93

18.20
19.27 34.04

19.04
18.30 18.00 17.76

Mysore
Kapra Yellandu Dhanbad

21.17
21.60 30.00 17.00

19.90
20.80 16.00

17.53
17.50 15.20 15.00
42

OUTAGE DURATION PER FEEDER (IN MIN.)

Sl.
1. 2. 3. 3. 4. 5. 6.

Town
Mumbai (BSES) Kolkata Thane Thiruvanthapuram Surat Jabalpur Mulund

No. of 11kV feeders

590 1138 43 53 309 65 27

Outage Duration Per Feeder

5.88 19.19 22.44 27.28 27.35 30.35 33.51

Mar 2005

7.
8. 9. 10. 11. 12. 13. 14.

Ahmedabad
Trichy Coimbatore Bhandup Chennai Madurai Vishakapatnam Amritsar

664
32 50 39 665 39 73 115

40.57
41.06 46.28 64.98 67.74 67.75 76.37 162.53

15.

Hyderabad

464

163.41

43

TOTAL No. of TRIPPINGS Best 15 towns

March 2005
No. of 11kV feeders 73 309 53 43 39 32 27 39 1138 590 664 65 65 50 548 63 Sl.
1. 2. 3. 3. 4. 5. 6. 7. 8. 9.

Town
Vishakapatnam Surat Trivandurm Thane Bhandup Trichy

No. of Trippings 47 48 62 64 72 88 93 107 146 185 224 273 307 339 606 44 744

Mulund
Madurai Kolkata Mumbai (sub)

10.
11. 12. 13. 14. 15.

Ahmedabad
Raipur Jabalpur Coimbatore Delhi Vijaywada

45