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SUMMER INTERNSHIP REPORT

IMPLEMENTATION OF INFORMATION TECHNOLOGY-THE FUTURE OF


INDIAN POWER DISTRIBUTION SECTOR
&

PREPARATION OF
DETAILED PROJECT REPORT FOR STRENGTHENING OF
EXISTING DISTRIBUTION NETWORK OF BIHAR STATE
{UNDER BRGF SCHEME PHASE II }
TO MEET THE PROSPECTIVE LOAD DEMAND FOR XIITH 5 YEAR
PLAN (2012-17)

UNDER THE GUIDANCE OF


Ms. MANJU MAM, DIRECTOR (NPTI)
&
Mr. RAVI DESHMUKH (MD) (PPS ENERGY SOLUTIONS LTD.)

Submitted by
AMIT SINGH
ROLL NO: 10
MBA Power Management

Affiliated to

AUGUST 2013

DECLARATION
I, Amit Singh, Roll No 10, student of MBA-Power Management (2012-14) at National Power
Training Institute, Faridabad hereby declare that the Summer Training Report entitled
IMPLEMENTATION OF INFORMATION TECHNOLOGY-THE FUTURE OF
INDIAN POWER DISTRIBUTION SECTOR is an original work and the same has not
been submitted to any other Institute for the award of any other degree. A Seminar
presentation of the Training Report was made on _____________ and the suggestions as
approved by the faculty were duly incorporated.

Presentation In-Charge

Signature of the Candidate

Counter signed
Director/Principal of the Institute

ACKNOWLEDGEMENT

To acknowledge here, all those who have been a helping hand in completing this project,
shall be an endeavour in itself.

Nevertheless with all due regards and respect to the contributions made by various persons at
each stage of the project, I take this as an opportunity to thank all those who have been
instrumental in completion of my project IMPLEMENTATION OF INFORMATION
TECHNOLOGY-THE

FUTURE

SECTOR&PREPARATION

OF

OF

INDIAN

DETAILED

POWER
PROJECT

DISTRIBUTION
REPORT

FOR

STRENGTHENING OF EXISTING DISTRIBUTION NETWORK OF BIHAR


STATE{UNDER BRGF SCHEME PHASE II }TO MEET THE PROSPECTIVE
LOAD DEMAND FOR XIITH 5 YEAR PLAN (2012-17).

I thank to Mr. Ravi Deshmukh, Managing Director, PPS ENERGY SOLUTIONS LIMITED
for giving me the opportunity to execute my Summer Internship Project.
I would also like to thank my Project In-charge Ms. Manju Mam, Director, NPTI who always
assisted me in every possible manner.
I feel deep sense of gratitude towards Mr. J. S. S. RAO, Principal Director Corporate
Planning, NPTI, Mr. S. K. Chaudhary, Principal Director, Dept. of Management Studies and
Ms. Indu Maheshwari, Dy. Director, NPTI for arranging my internship at PPS Energy
Solutions Ltd. and being a constant source of motivation and guidance throughout the
course of my internship.
I also extend my thanks to all the faculties and my batch mates in Dept. of Management
Studies (NPTI), for their support and guidance throughout the course of internship.
Thank you all for being there for me always.

AMIT SINGH

ii

EXECUTIVE SUMMARY
Electric power distribution system is an important part of electrical power systems in delivery
of electricity to consumers. Electric power utilities worldwide are increasingly adopting the
computer aided monitoring, control and management of electric power distribution system to
provide better services to their consumers. Therefore, research and development activities
worldwide are being carried out to automate the electric power distribution system utilizing
recent advancement in the area of IT (Information Technology) and data communication &
control system. This report presents the current and past status of the research and
development activities in the area of electric power distribution automation in India. This
report also discusses the future perspectives, in Indian power sector context, available to the
distribution utilities for further advancements in their process automation. The information
given in this paper is useful to electric power distribution utilities in the area of power
distribution automation.
State of Information Technology
It has been observed by the IT Task Force that the approach of the various distribution
utilities towards IT has been piecemeal with standalone applications deployed for a limited
operational requirement. In other words, IT has been used as a tool to address a specific issue
or two at a time and not as a long-term, holistic strategy. While Indian IT sector has helped
numerous organizations around the globe derive substantial benefits from application of IT,
there is plenty of room for IT application within the power sector in India. There is a need to
look at the global practices in IT adoption in the power sector so that India can benefit from
it. The IT task force is of the view that the gap in IT adoption globally and in the Indian
power sector is apparent and glaring and even the rate of overall technology adoption in India
is on the lower side. Globally IT is being used to enable operations at a transaction level thus
providing advantages like in-built process controls, workflow enabled transactions, single
point of data capture and support for timely strategic decision making. On the other hand, in
India, the core operations are still manual and therefore face issues like ad-hoc decision
making, poor data quality, long decision making cycles and underutilization of IT
investments. In order to reap the benefits of IT, the wide gap between India and global best
has to be bridged.

iii

INFORMATION TECHNOLOGY ROADMAP

Globally, IT is approached in a very systematic and well thought out manner using the
concept of an IT blueprint. The IT task force, therefore, recommends the creation of a
comprehensive IT blueprint for the Indian power sector that incorporates the global best
practices. This report is a step forward in this direction and provides a framework for the
creation of a blueprint regarding present condition of automation in Indian Power Sector and
the scope of further development to automate the distribution process.

iv

LIST OF ACRONYMS

AC
AMI
AMR
APDRP
ATM
BI
BPL
BRPL
BSES
BYPL
CDMA
CEA
CERC
CIS
CRM
CRN
CTI
DA
DAS
DC
DISCOMs
EAM
EBPP
EDM
ERP
FI-CO
FLC
FY
GIS
GPRS
GSM
GUI
HMI
HVDS
ICS
ICT
IED
IIT
IT
IUT
IVRS

Alternating Current
Automated Metering Infrastructure
Automated Meter Reading
Accelerated Power Development & Reforms Program
Automatic Teller Machine
Business Intelligence
Broadband over Power Lines
BSES Rajdhani Power Limited
Bombay Sub-Urban Electricity Supply Company
BSES Yamuna Power Limited
Code Division Multiple Access
Central Electricity Authority
Central Electricity Regulatory Commission
Consumer Information System
Consumer Relationship Management
Customer Reference Number
Computer Telephony Integration
Distribution Automation
Distribution Automation System
Direct Current
Distribution Company
Enterprise Access Management
Electronic Bill Presentment & Payment
Energy Data Management
Enterprise Resource Planning
Financial Accounting Controlling
Fuzzy Logic Control
Financial Year
Geographic Information System
General Packet Radio Service
Global System for Mobile Communications
Graphic User Interface
Human Machine Interface
High Voltage Distribution
Industrial Control Systems
Information and Communication Technology
Intelligent Equipment Devices
Indian Institute of Technology
Information Technology
Intelligent Universal Transformer
Interactive Voice Response System

IWF
LCD
LT
MDM
MIS
MRI
NCT

NHPC
NTPC
OLAP
OTS
PAD
PDSL
PLN
PLT
PN
RF
RTU

SCADA
SCM
SFA
SIM
SOA
TOD
TPDDL
WMS
XML

Interworking Function
Liquid crystal display
Low Tension
Meter Data Management
Management Information System
Meter Reading Instrument
National Capital Territory of Delhi
National Hydro-Electric Power
Corporation
National Thermal Power Corporation
On-Line Analytical Processing
Optical Tracking System
Packet Assembly Disassembly
Power Line Digital Subscriber Line
Power Line Networking
Power Line Telecom
Pseudo Random
Radio Frequency
Remote Terminal Units
Supervisory Control and Data
Acquisition
Supply Chain Management
Sales Force Automation
Subscriber Identity Module
Service-Oriented Architecture
Time of day
Tata Power Delhi Distribution Ltd
Warehouse Management System
Extensible Markup Language

vi

LIST OF FIGURES
Figure 1 Organization Setup ..................................................................................................... 6
Figure 2 Organization Services................................................................................................. 6
Figure 3 Typical Power Transmission and Distribution Scenario with DA components ..22
Figure 4 A Graphic of the Components Involved in AMI ....................................................29
Figure 5 Distributed micro-grid Power System .....................................................................32
Figure 6 Benefits of Information Flow across the Organization ..........................................35
Figure 7 Distribution Business Value Chain and Typical IT Applications .........................36
Figure 8 Indicative Roadmap for Applications under the Four Categories........................38
Figure 9 Current Billing System ..............................................................................................40
Figure 10 Integrated Billing System ........................................................................................40
Figure 11 Energy accounting System ......................................................................................41
Figure 12 Extended Business Interaction System ..................................................................41
Figure 13 IS-U/CCS as a component in the ERP solution ....................................................43
Figure 14 Functional Scope of SAP IS-U ................................................................................43
Figure 15 IS-U/CCS as an integrated component of the SAP enterprise information
system ............................................................................................................................................44
Figure 16 Integration with other SAP and non-SAP Solutions (An example) ....................44
Figure 17 The Oracle Solution Footprint for Utilities ...........................................................45
Figure 18 Layer Interaction in Service-Oriented Architecture ............................................46
Figure 19 Delivery Channels for ERP System .......................................................................47
Figure 20 AMR Architecture ...................................................................................................48
Figure 21 Wireless AMR ..........................................................................................................49
Figure 22 GSM Bases AMR .....................................................................................................50
Figure 23 Data Transfer over CDMA .....................................................................................51
Figure 24 Power Line Communication Network ...................................................................52
Figure 25 Objectives for ERP implementation by discoms ..................................................55
Figure 26 A Typical BSES AMR Screen ................................................................................62
Figure 27 BSES Bill Payment System .....................................................................................63
Figure 28 A handy illustration to calculate the power consumption ...................................64
Figure 29 BSES IVRS Service .................................................................................................65
Figure 30 BYPL - AT&C Loss Reduction ..............................................................................66
Figure 31 TPDDL SAPISU Login screen................................................................................71
Figure 32 TPDDL - Power at your Fingertips........................................................................72
Figure 33 Business Intelligence Solution Architecture ..........................................................77

vii

TABLE OF CONTENTS

Table of Contents
DECLARATION ..................................................................................................................................... i
ACKNOWLEDGEMENT ...................................................................................................................... ii
EXECUTIVE SUMMARY ................................................................................................................... iii
State of Information Technology .................................................................................................... iii
INFORMATION TECHNOLOGY ROADMAP ....................................................................................... iv
LIST OF ACRONYMS .......................................................................................................................... v
LIST OF FIGURES .............................................................................................................................. vii
1.1 INTRODUCTION ............................................................................................................................ 2
1.2 PROBLEM STATEMENT ............................................................................................................... 2
1.3 OBJECTIVE OF THE PROJECT..................................................................................................... 2
1.4 SIGNIFICANCE OF THE PROJECT .............................................................................................. 3
1.5 COMPANY PROFILE ..................................................................................................................... 4
1.5.1 About the organization ............................................................................................................... 4
1.5.2 ORGANIZATION SERVICES ................................................................................................. 6
1.5.2.1

Energy Management ....................................................................................................... 6

1.5.2.2

Consultancy..................................................................................................................... 7

1.5.2.3

Infrastructure Development & Maintenance ................................................................... 7

1.5.2.4

Project Management ....................................................................................................... 7

1.5.2.5

Critical Assessment of PPS Energy Solution Ltd. .......................................................... 7

1.5.3 SWOT ANALYSIS ................................................................................................................... 8


1.5.2.6

Strengths ......................................................................................................................... 8

1.5.2.7

Weakness ........................................................................................................................ 8

1.5.2.8

Opportunities................................................................................................................... 8

1.5.2.9

Threats............................................................................................................................. 8

2.1

REVIEW OF LITERATURE ................................................................................................... 10

2.2

RESEARCH METHODOLOGY .............................................................................................. 19

3.1

INDIAN POWER SECTOR OVERVIEW ............................................................................... 21

3.2

ELECTRICITY DISTRIBUTION IN INDIA .......................................................................... 22

3.3

HOW DOES POWER REACH US? ........................................................................................ 22

3.4

BOTTLENECKS IN ENSURING RELIABLE POWER......................................................... 23

3.5

PRESENT STATUS OF POWER DISTRIBUTION BUSINESS ........................................... 25

3.6

AUTOMATION IN POWER DISTRIBUTION ...................................................................... 28

3.7

NEED TO AUTOMATE .......................................................................................................... 29

3.8

DISTRIBUTION AUTOMATION SYSTEM .......................................................................... 29

3.9

METERING& BILLING SYSTEM ......................................................................................... 30

3.10

SCADA ..................................................................................................................................... 31

3.11

GIS ............................................................................................................................................ 32

3.12

THE SMART GRID VISION OF INDIA ................................................................................ 33

3.13

DRIVERS IN INDIA ................................................................................................................ 34


3.13.1

Supply shortfalls ........................................................................................................... 34

3.13.2

Loss reduction ............................................................................................................... 34

3.13.3

Managing the human element in system operations .................................................. 35

3.13.4

Peak load management.................................................................................................. 35

3.13.5

Renewable energy ......................................................................................................... 35

3.13.6

Technological leapfrogging .......................................................................................... 35

3.14

WHAT,EXACTLY, IS A SMART GRID? .............................................................................. 36

3.15

SOLUTIONS FOR DISTRIBUTION UTILITIES ................................................................... 37

3.16

IT STRATEGY AND PLANS .................................................................................................. 40


3.16.1. Advanced applications ...................................................................................................... 42

3.17

INTEGRATED BILLING SYSTEM FOR LARGE C&I ........................................................ 43

3.18

ENTERPRISE RESOURCE PLANNING ................................................................................ 44


3.18.1. SAP Utilities .................................................................................................................... 45
3.18.2. ERPModelling of Distribution Business .......................................................................... 47
3.18.3. Oracle ERP....................................................................................................................... 48
3.18.4. Service-oriented architecture ........................................................................................... 49

3.19

AUTOMATED METER READING ........................................................................................ 51


3.19.1. Touch Technology ........................................................................................................... 52
3.19.2. Wireless Technologies ..................................................................................................... 52
GSM Based Technology ............................................................................................................... 53
Transmission Protocols ................................................................................................................. 54
Communication Terminology ........................................................................................................ 54
CDMA Based Technology ............................................................................................................. 54
3.19.3. Power Line Communication System (PLC) ..................................................................... 55

4.1

IT IN POWER........................................................................................................................... 58

4.1.1

Objectives for ERP Implementation ............................................................................. 58

4.1.2

Challenges during ERP Implementation: ...................................................................... 59

Process Mapping: .......................................................................................................................... 60


Data Migration: ............................................................................................................................. 60
Change Management: ................................................................................................................... 61
Customisation: .............................................................................................................................. 61
Outsourcing Issues: ....................................................................................................................... 61
Costing and Pay Back Period: ....................................................................................................... 62
Project Scheduling: ....................................................................................................................... 62
4.2

A SURVEY OF DISCOMS (DELHI) ...................................................................................... 62

4.3

BSES (BOMBAY SUB-URBAN ELECTRICITY SUPPLY COMPANY), DELHI .............. 63


4.3.1

Company Profile ........................................................................................................... 63

BSES Yamuna Power Limited (BYPL) ........................................................................................ 63


BSES Rajdhani Power Limited (BRPL) ....................................................................................... 64
4.3.2

System Setup at BSES .................................................................................................. 64

Metering system ............................................................................................................................ 64


Billing System ............................................................................................................................... 66
Collection System ......................................................................................................................... 66
4.3.3

Other IT enabled Practices at BSES.............................................................................. 66

Availing SMS services on 5-54-54-64 .......................................................................................... 67


Electricity Calculator .................................................................................................................... 68
IVRS Service ................................................................................................................................ 69
4.3.4
4.4

Implementation Benefits of ERP .................................................................................. 69

TPDDL (Tata Power Delhi DistributionLtd) ............................................................................ 71


4.4.1

Company Profile ........................................................................................................... 71

4.4.2

Pioneering Technology Initiatives ................................................................................ 72

4.4.3

Automation Initiatives & GIS ....................................................................................... 72

Complaint Management System ................................................................................................... 72


Introduced online connection management by consumers ........................................................... 73
Consumer Relationship Management ........................................................................................... 73
Automated Bill Payment Kiosks for consumer convenience ........................................................ 73
4.4.4

System Setup at TPDDL ............................................................................................... 73

Data Collection Mechanism .......................................................................................................... 74


Metering System ........................................................................................................................... 74

Billing System ............................................................................................................................... 74


Collection System ......................................................................................................................... 75
4.4.5

Advantages of Using SAP ISU to TPDDL and Customers .......................................... 75

4.4.6

TPDDL SAP ISU Login for Consumers ....................................................................... 75

5.1

CONCLUSION ......................................................................................................................... 78

5.2

THE WAY FORWARD ERP WITH BI................................................................................ 80


5.2.1

Business Intelligence..................................................................................................... 80

Introduction About State ..................................................................................................................... 85


Power Scenario in the State .............................................................................................................. 85
Background of erstwhile BSEB ........................................................................................................ 87
Unbundling of erstwhile BSEB......................................................................................................... 87
Operationalization of New Entities ................................................................................................... 88
Constitution of Distribution Companies ........................................................................................... 89
Status of power sector in the state..................................................................................................... 92
Demand Projections .......................................................................................................................... 95
Ongoing Scheme in State ...................................................................................................................... 96
Rajiv Gandhi GrameenVidyutikaran ................................................................................................ 96
R-APDRP .......................................................................................................................................... 96
Feeder Segregation............................................................................................................................ 96
BRGF- Phase-1 ................................................................................................................................. 97
BRGF Phase II .................................................................................................................................. 97
Estimated yield from the Project and Economic Implications: ............................................................. 98
Program Schedule ................................................................................................................................. 99
2.4.Expenditure Involved .................................................................................................................... 100
Reliability of Cost Estimates and other parameters: ....................................................................... 100
Operational capabilities ...................................................................................................................... 102
Viability .............................................................................................................................................. 103
ANNEXURE 1.................................................................................................................................... 105
ANNEXURE 2.................................................................................................................................... 113
BIBLIOGRAPHY ............................................................................................................................... 114

CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION
Reeling under an average AT&C (Aggregate Technical & Commercial) losses of around
33%, (over Rs.35000 Crores of cash loss), it is quite impossible for power distribution sector
to keep up the desired economic pace without major reforms in the power sector, especially
in Distribution. It is an acknowledged fact that the issues involved are complex and no quickfix is possible. Technology will have to play a leading role to shorten the reform gestation
period as well as eliminate issue related to "human interference".

Technology innovation can only benefit the sector and system integration has major role to
play in empowering the power supply utilities. There is a huge need for specialized,
customized and upgraded system solution for the power sector. The restructured Rs 500
billion APDRP (Accelerated Power Development & Reforms Program) initiative gives high
priority for implementation of IT (Information Technology) enabled solutions to reduce
AT&C losses.

1.2 PROBLEM STATEMENT


Electric power distribution system is an important part of electrical power systems in delivery
of electricity to consumers. Electric power utilities worldwide are increasingly adopting the
computer aided monitoring, control and management of electric power distribution system to
provide better services to electric consumers. Therefore, research and development activities
worldwide are being carried out to automate the electric power distribution system utilizing
recent advancement in the area of IT and data communication system. At present, power
utilities have realized the need for full scale distribution automation to achieve on-line system
information and remote control system. The main motivation for accepting the distribution
automation in developing countries such as India is to improve operating efficiency of
distribution system. The main idea behind this project is to find business for HCL
Infosystems for IT implementation and automation in the field of power distribution.

1.3 OBJECTIVE OF THE PROJECT


This project report on IMPLEMENTATION OF INFORMATION TECHNOLOGYTHE FUTURE OF INDIAN POWER DISTRIBUTION SECTOR studies the present

scenario of automation inpower distribution utilities in Delhi and extends the findings to the
rest of the country. Today the country is facing an energy deficit of about 12%, the Indian
discoms had faced a loss of more than 27% in FY (Financial Year) 2009-10 and the situation
are not any better for the present FY. Although there is tremendous investment being put into
the generating power, including private investment. Yet it does not seem that the loss making
distribution utilities at this rate may be able to buy this power This scenario seems to be
leading to a dark black hole in which the power sector may get pulled into, leading to and
overall power crisis.

The remedy to this situation may be the successful implementation of Information


Technology tools in the power sector. This project basically studies what is the current
situation and further what all options are available to make the scene better. Then various
case studies have been taken up to discuss the successful implementation of this tool.

The scope of the project further extends to

To study & analyze the present scenario of automation in power distribution in India

To study & analyze the development issues in Information Technology


implementation and recommendation.

To study & analyze the operational issues in Information Technology implementation


and recommendation

To study the problems faced by distribution companies in automation of processes

To analyze the various features of the solutions present in the market and their
suitability to individual organizations

1.4 SIGNIFICANCE OF THE PROJECT


It has been observed by the IT Task Force that the approach of the various distribution
utilities towards IT has been piecemeal with standalone applications deployed for a limited

operational requirement. While Indian IT sector has helped numerous organizations around
the globe derive substantial benefits from application of IT, there is plenty of room for IT
application within the power sector in India. There is a need to look at the global practices in
IT adoption in the power sector so that India can benefit from it. The task force is of the view
that the gap in IT adoption globally and in the Indian power sector is apparent and glaring
and even the rate of overall technology adoption in India is on the lower side. In India, the
core operations are still manual and therefore face issues like ad-hoc decision making, poor
data quality, long decision making cycles and underutilization of IT investments.

Electric power distribution system is an important part of electrical power systems in delivery
of electricity to consumers. This report presents the current and past status of the research and
development activities in the area of electric power distribution automation in India. This
report also discusses the future perspectives, in Indian power sector context, available to the
distribution utilities for further advancements in their process automation.

1.5 COMPANY PROFILE

1.5.1 About the organization

PPS is an ambitious company, established by enterprising engineering professionals in the


year 2004. The company offers services pertaining to Energy, Engineering and Architecture
to clients across the globe. PPS team is based in Pune, a city known for its Software and
Engineering talent in India. PPS is a rapidly growing company with a team of about 100
people which includes highly trained and experienced Techno-Managers, Analysts, and
Engineers & Detailers. In the PPS philosophy, the client always comes first.
Understanding every clients needs and requirements & to offer customized solutions is an
endeavor undertaken by each one of their employees. PPS prides itself as a technology driven
company. Company believes that use of cutting edge technology can greatly enhance output
& quality, reduce project life cycle & optimize costs in long run.

Energy
Consulting

Policy &
Regulations

Cost reduction /Process


Reengineering/Organisation Design

Regulatory Economics/ PPP


Model/Governance

Project Advisory/Bid Advisory/Financial


Restructuring/Capacity Building/Energy
Development
Efficient Building Advisory
Consulting

Figure 1- Organization setup


PPS values the natural resources and is committed to preserve them. Company promotes all
environment friendly techniques to the maximum extent. As a natural corollary of their
commitment to the environment & energy efficient structures, the company entered the
energy sector as a service provider to the various arms of the power industry under the name
of PPS Energy Solutions Pvt. Ltd.
PPS Energy Solutions is primarily formed to serve their clients to meet numerous challenges
created by a rapidly growing energy market. They are focused on pro- viding affordable
energy solutions for our clients in energy & power sector.

1.5.2 ORGANIZATION SERVICES

Energy
management

Infrastructure
Development
&
Maintenance

PPS
Energy

Project
Management

Consultancy

Figure 2- Organization Services


1.5.2.1 Energy Management
Energy Audits PPS Team offer Energy Audits for:

Process Industries Steel, cement, chemical, etc.

Power Distribution Sub stations, switching stations, distribution feeders, etc.

Commercial Buildings Malls, operating plants, offices, hospitals, colleges, etc.

Generation Units Mini / micro generation utilities

Energy Planning & Optimization

PPS do Energy Efficiency studies and provide solutions regarding green building &
lighting simulations.

1.5.2.2 Consultancy
Power Distribution End to end support in distribution loss reduction, asset management,
formulation of various schemes, DPR & claims for various power utilities Renewable Energy
Complete support to clients for establishing renewable power generation units Rural
Electrification Formulation of DPR& schemes for rural electrification.Also supporting clients
for developing rural electrification infrastructure.Power Regulation Offer regulatory support
to power utility companies, transmission companies, generation units, utility consumers,
industries & power market etc for filing petitions & sorting out the problems thereof. Power
Generation Formulation of feasibility report, project report, tariff proposals, power purchase
agreementsand fund arrangements for Mini and Micro projects.
1.5.2.3 Infrastructure Development & Maintenance
We offer Engineering, Procurement, Commissioning & Maintenance services in Power
Sector Power Distribution Provide end to end solutions in erection of distribution substations
and allied works. Power Transmission provide end to end solutions in erection of EHV lines
& allied works.Power Generation Provide end to end solutions in Micro and Mini power
generation units.
1.5.2.4 Project Management
Schedule and budget evaluations Value engineering Constructability reviews Accuracy
checks on cost estimates Monitoring and coordinating daily construction activities Technical
Audits Contract Negotiation and Administration Project Controls and Scheduling Regulatory
Agency Coordination and Negotiation Risk Management.
1.5.2.5 Critical Assessment of PPS Energy Solution Ltd.
Through the process of carrying out several assignments over the past many years, PPS
Energy Solution has accumulated considerable analytical and consulting expertise, backed by
the following organizational capabilities:

An extensive and organized database on power sectors.

Knowledge of key factors of success in different projects and program.

An ability to research emerging global trends, both in specific countries as well as in


energy sectors, based on primary and secondary data.

Performance benchmarking & Quantitative and financial modeling

Ability to identify the various types of risks in energy area and suggest appropriate
strategies to mitigate the same.

Ability to work in different geographies on its own and through affiliate partners

1.5.3 SWOT ANALYSIS


1.5.2.6 Strengths

Core team of expert professionals & excellent work culture.

Targeting untapped markets with best management skills and corporate strategy

Time bound targeted goals & promotion of all environment friendly techniques to
the maximum extent.

PPS is certified energy auditing firm for carrying all types of energy audit.

1.5.2.7 Weakness

Company is in the initial stage of growth.

Small team to handle multiple projects.

1.5.2.8 Opportunities

Vast and growing market for energy conservation and energy audits.

Company can grab lots of government projects.

Create awareness among industries regarding energy efficiency.

1.5.2.9 Threats

Number of players has started entering this section of power sector.

Growing competition.

CHAPTER 2
PROJECT STRUCTURE

2.1

REVIEW OF LITERATURE

Jayant Sinha (Associate Vice President, Spanco Ltd.) states IT has the potential to contribute
significantly in the power reforms process, particularly in the areas of business process
automation, revenue and commercial management, distribution system automation, CRM
(Consumer Relationship Management) and AT&C (Aggregate Technical & Commercial) loss
reduction. The power distribution utilities in India have initiating major reforms using IT as
the key enabler for improving revenue collection, minimizing AT&C losses, proper energy
accounting and efficient consumer services.

Jimmy C. Huang et al [2000] identifies that the growing number of firms adopting ERP
systems demonstrates not only the increasing dependency of organizations on new
technology, but also an emerging need to evaluate it and to ensure the success of
implementation. Focusing on processes of knowledge sharing and knowledge integration, this
study explores the dynamics of ERP implementation and appropriation based on the
empirical findings from two longitudinal cases. The research findings suggest the need to
take into account how ERP systems change supplier relationships, and also indicate the
importance of clearly defined information and project ownership. Additionally, overcoming
resistance, whether it is created by lack of commitment or time, from the end users is equally
important as well as continuously obtaining support from top management. The research
findings not only extend previous studies related to technology implementation and
appropriation, but also support the usefulness of employing a knowledge-focused perspective
as an effective lens with which to explore the dynamics of technology implementation.

Jacobs and Whybark give an excellent treatise on ERP (Jacobs and Whybark, 2001).
Summary of important issues highlighted by them are given below:
ERP leads to information integration for the various functions of the business like
Accounts, Finance, Marketing, Sales, Production, Vendors, and Distribution etc. It
provides the benefit of single data entry, immediate access, and common data. Data
are updated in real time, meaning that when data is entered into the system, the

10

changes are immediately available to everyone.


Prevailing Business processes are replaced by best practices.
Organizations with multi-plants located all around the globe are benefited the most.
If information is available quickly and accurately, then resources are put to better and
more efficient use.
ERP implementation is not an easy task. There are horror stories of implementation
failures. It assumes all people problems are solved and people cooperate. 'Roles' of
some people change significantly due to ERP. This brings in resistance to change
which needs to be handled properly.
Do not implement everything on ERP, most critical areas where information
integration is essential, could be put on ERP first.

Manish Agarwalet al [2003] discusses the privatization of the distribution operations of the
Delhi Vidyut Board, in July 2002. The state owned utility that served the 14 million people of
metropolitan Delhi, may represent the dawn of a new era for India. The Government of New
Delhi (Delhi Government) was able to sell majority stakes in three distribution utilities
covering the entire metropolitan area even though the total operational and commercial losses
were close to 50%. How was the Delhi Government able to complete this transaction?
Several key economic and regulatory factors were identified in their paper, which includes:
A willingness to set a clear subsidy system in place to support a transition path to full
commercial activity;
A willingness to establish companies with a sustainable level of liabilities even
though this required leaving around 85% of the existing liabilities with a state-owned
holding company; and
The establishment of key elements of a multi- year tariff regime.

In addition, Delhi opted for the novel approach of requiring that the bidders bid on the basis
11

of a trajectory of commercial and technical loss improvements for the first five years of
private sector operation. This allowed bidders to demonstrate what they felt would be
achievable while also providing consumers with a transparent measure by which the success
of the privatization could be assessed. This is quite different from the standard bidding
approach of requiring that private companies bid a price for an equity interest. In any country
like India where the starting point are tariffs that do not cover costs and unconscionable
levels of technical and commercial losses, any privatization will ultimately be a race to
achieve economic viability before any government provided subsidies run out.

J. Simpandeet al [2003] present their views on integrating the Internet and enterprise resource
planning (ERP) systems in electricity utility companies. As the Internet is a relatively new
development and the electricity industry is in the process of transformation. One key benefit
of implementing ERP systems is to standardize, streamline and organize information shared
across the entire organization. The Internet makes it easier to share and communicate
information across the entire organization. There is also a need for organizations to exchange
information with suppliers and customers to meet information requirements (Deise et al.
2000:65). The key question addressed in their research was: What are the requirements for
integrating the Internet and ERP systems in South African electricity utility companies? In
considering this question, the definition of integration by Goodhue, Wybo and Kirsch
(1992:300) was adopted. They define integration as being able to share information across an
organization to meet information needs of individual business units. The Internet and ERP
systems are part of information systems that organizations depend on when conducting
business. The Internet and ERP systems offer useful functionality in the smooth running of an
organization. It would be very beneficial to integrate or combine the functionality derived
from the Internet and ERP systems to serve the customer better. Integrating the Internet and
ERP systems could only make sense with top-end customers such as companies, institutions
and municipalities because Internet usage among individual household customers is low. The
South African government should provide a white paper to legislate the use of the Internet as
a business tool.

T.J. Smith [2003] says that the business case for AMR (Automated Meter Reading) is solid.
Though expensive to install, AMR systems lower operational costs of utilities and the
potential to lower prices for end customers. Although AMR has been around for a decade,
only 14% of the meters in the US can be read automatically. The other 86% of the meters are
12

still read by meter readers with ongoing personnel and operational costs to match. Similarly,
CIS (Consumer Information System) systems have changed radically from the 1970s
version. Modern CIS systems are n-tier, web enabled, business rule object oriented, and
relational database proven technologies. Rather than hard-coding business rules, modern
systems allow for system configuration and add-ins to adjust the business rules without
rewriting software. Yet, today,

70% to 75% of the CIS systems are 10 to 15 years. Like other corporate initiatives,
businesses can fail to manage the change properly. If the system implementation and
organization changes are not properly managed, the business will not capture the potential
value of AMR or modern CIS systems. Many utilities, especially smaller ones, may be aware
of managerial shortfalls and thus hesitant to embark upon such a large change. A portion of
the slow pace of adoption for AMR and modern CIS is due to the fear executive possess that
their management team cannot effectively manage the change.

Ram Prakash Gupta et al [2004] describes the indigenous development and implementation
of a Power Distribution Automation system at pilot level in IIT (Indian Institute of
Technology) Kanpur, India. Electric Power DA (Distribution Automation) system is being
increasingly adopted by the electric utilities to reduce the operational problems of distribution
networks. The DA system not only provides system wide status and health monitoring but
also helps in coordinated controls required to enhance quality and reliability of the supply.

R.P. Gupta et al [2005] states electric power distribution system is an important part of
electrical power systems in delivery of electricity to consumers. Electric power utilities
worldwide are increasingly adopting the computer aided monitoring, control and
management of electric power distribution system to provide better services to electric
consumers. Therefore, research and development activities worldwide are being carried out to
automate the electric power distribution system utilizing recent advancement in the area of IT
(Information Technology) and data communication system. This paper reports the present
and past status of the research and development activities in the area of electric power
distribution automation both in developed as well as in developing countries. The information
given in this paper is useful to electric power distribution utilities and academicians involved
in research and development activities in the area of power distribution automation. At that
time in North America, power utilities have realized the need for full scale distribution
13

automation to achieve on-line system information and remote control system. This is required
in order to fully accomplish the restructuring of GENCOs (Generation Companies),
TRANSCOs (Transmission Companies), DISCOs (Distribution Companies) and ESCOs
(Energy Service Companies) of the power system to the level of retail wheeling. On the other
hand, the main motivation for accepting the distribution automation in

developing countries such as India is to improve operating efficiency of distribution system.


This indicates worldwide interest for distribution automation at present. Looking at the
interest of power utilities for distribution automation, academic institutions are now taking
interest to introduce courses and R&D (Research & Development) activities in the field of
distribution automation in the regular academic curriculum. A list of possible research areas
and activities for future is also proposed for power distribution automation.

Sharma, R.R.K. et al [2005] evaluates the use of ERP (Enterprise Resource Planning)
systems in the organizations for information integration and aligning & streamlining their
processes for delivering high value to the customers. Through its very use, it influences
manager's jobs and the organization structure as well. Their paper seeks to evaluate the
impact of ERP on organizations, and examines the ways manager's job and organization
structures have changed. They had investigated effect of ERP implementation on five
dimensions of Manager's job (autonomy, use of power, delegation, people skills and
privileged information), five dimensions of organizational structure (specialization,
formalization, centralization, standardization and complexity of work flow) and on the
flexibility of organization. They carried out a study in the three plants of a leading motor
company in India. It was found that use of power significantly increased in all the three
plants. This was thought to be related to the 'change management' associated with ERP
implementation in the firm. This could also be due to strategic shift in the firm's position
(firm had now become a 'prospector" from its earlier state of 'defender' (in the framework of
Miles and Snow et al (1978)) which led to increased 'decentralization' and 'delegation' which
increased 'autonomy' of the managers. Managers at the middle level felt that there was
significant increase in the amount of 'privileged information' available with them. Need for
maintaining informal relations for discharging official duties also remains nearly same for
14

senior and middle level managers; however, lower level managers felt that the need for
maintaining informal relations to discharge official duties has decreased. It was also found
that in all three plants that the specialization, formalization and standardization had
significantly gone up. Using this empirical finding and the theoretical ideas of Frederickson
(1986) they propose that if a 'defender" implemented ERP then it will lead to erosion of
'autonomy' of its managers. Thus this pilot study brings out that ERP implementation has
significant effect on manager's job and organization structure.

Tae-Il Choi et al [2008] says that a communication system plays an important role in DAS
(Distribution Automation System), and various communication media have been applied to
meet the utilitys objective. Distribution automation technology using CDMA (Code Division
Multiple Access) wireless communication network have been developed and shown its cost
effectiveness and durability through the field test. Several system components for CDMA
such as gateway, packet assembly disassembly and modem had been newly developed and
their interfaces are standardized. Establishing a separate control channel for interworking
function from central station, system reliability is significantly improved in the case of event
processing. CDMA network would be applied to a small-scale DAS which could have a
difficulty in constructing a communication network in an economic way, while fibre-optic
cable would be applied to a large-scale DAS which needs high speed and reliability in a big
city. Distribution automation technology using CDMA wireless communication network,
which has the widest service area all over the country, has been developed and shown its cost
effectiveness and durability through the field test. Several system components for CDMA
such as gateway, PAD (Packet Assembly Disassembly) and modem have been newly
developed and their interfaces are standardized. Demonstrating the superior reliability
compared with other communication media, CDMA network for DA is expected to replace
existing communication media for DAS. As the commercial network is used, maintenance for
the communication network is not necessary. Like other wireless network, CDMA terminals
can be installed inside the control box of automatic switch at any place in distribution line
and easily moved at any time. Establishing a separate control channel for IWF (Interworking
Function) from central station, system reliability is significantly improved in the case of event
processing. The CDMA network would be applied to a small-scale DAS which could have a
difficulty in constructing a communication network in an economic way, while fibre-optic
cable would be applied to a large-scale DAS which needs high speed and reliability in a big
city. Frequent communication errors owing to the lack of communication channels can be
15

resolved by using CDMA network without establishing an additional communication


channel. A region that requires repeated maintenance and transfer is more suitable for CDMA
network utilizing the unsolicited message from remote terminals.

AbhijitArvindBhure [2008] in his report describes AMI (Automated Metering Infrastructure)


as a subject widely talked about at various energy departments of state government,
regulatory commissions, utility companies, energy forums and among the product vendor
community. The debate whether AMI should/shouldnt be implemented is going on since
quite a few years and recently got the much required boost by way of the commencement of
Energy Policy Act 2005 in USA and department of infrastructure in Victoria State in
Australia. Utilities across the world are trying out pilots at various locations to see the
feasibility of roll out and meter vendors are trying to push their product range through the
utilitys throat. This is taking place due to the lack of clear direction and lack of consensus
among the stakeholders from the regulatory perspective. Government departments have come
out with Act/laws in various countries to promote the AMI implementation. But the clear
mandate is missing in these directions from the authorities. This article brings out the Govt.
regulatory perspective towards AMI, challenges in the implementation processes, collection
of best practices for approach to implementation. The benefits of the AMI/MDM (Meter Data
Management) system are apparent but the need is to provide the trust to the utilities to go
ahead with the systematic stepwise implementation plan. While some states have taken steps
in this direction, its the regulators job to provide that much needed push to the utilities. The
regulators need to come out with time bound guidelines for implementation and provide
necessary incentives for the utilities for implementation of AMR/MDM systems. The need is
to perceive advanced metering system not just for meter reading & billing tool but to
recognize it as a driver for enterprise wide integration tool which will communicate
with/replace other redundant IT applications in the utility. There are issues related to costs
and communication with other system, demand responsiveness and security, but utilities are
looking at it as a strategic tool to improve customer service and thereby retain /attract
customers in the competitive energy market.

Hari Kumar Naidu et al [2010] evaluates the advances in telecommunication, Information


Technology and networking which offer SCADA (Supervisory Control and Data Acquisition)
Power supply Distribution automation as a solution to improve power distribution
efficiencies. This paper also discusses the result of the indigenously developed prototype
16

hardware and software model utilizing the latest embedded technology innovation for
SCADA Power Distribution Automation Systems for reliable performance of power system.
This is vividly
evident that SCADA Power Distribution Automation Systems offer as a solution to improve
power distribution efficiencies. Also the indigenously developed sample prototype hardware
and software model utilising the latest embedded technology innovation for SCADA Power
Distribution Automation Systems will reliably perform the power system.

M. Sadeghiet al [2011] says A Novel Distribution Automation is the bonnie state of art,
comprising the new architecture based on the flexible electrical network of component
together with an open communication structure debate the Future Distribution Automation
System. IUT (Intelligent Universal Transformer) comprises from power electronic base
equipment in addition with traditional current transformer introducing as an IED (Intelligent
Equipment Devices) for ADA (Advanced Distribution Automation) in forthcoming days. In
contrast to ordinary transformer, IUT has full control compatibility as it has been considered
for intelligent device. In this regards FLC (Fuzzy Logic Control) is an advanced method
based on fuzzy logic concept (first issued by LotfyZadeh) emphasizes on fuzzy algorithms
which are formulated by linguistically rules, employing expert knowledge. Model free
system, nonlinearity, robustness and flexibility under parameter variations are the benefit
advantages resulting from the fuzzy logic controllers. In this approach four layers IUT
topology with the diverse services like DC (Direct Current) voltage option, 400 HZ utility for
communication, 120 and 240 V AC (Alternating Current) 60 HZ together with fuzzy logic
controller have been considered for evolving the stability, reducing the uncertainty and
enhancing the efficiency of whole system. They further conclude that FLC control
methodology is concerned for overcoming on ambiguous conditions, nonlinear and complex
system, enhancing the robustness for the new modern technology described as IUT. DC and
three phase output voltages are the benefits arises by using four layers IUT topology. In this
simulation four FLC controllers take the role of control and guarantee the stability and keep
out the whole system from disturbances in input output stages. It also leads to efficiency
enhancement in system performances. ADA infrastructure has been raised in terms of future
necessity will comprise the next distribution automation. It is directed towards full network
functionality. Reliability enhancement is a part of innovation could be stated using modern
adaptive solution for forthcoming projects especially for IUT in smart grid of future.

17

Alauddin Al-Omaryet al [2012] presents the design and implementation of a secure low cost
AMR (Automatic Meter Reading) system that measures and transmits the total electrical
energy consumption to main server using GPRS (General Packet Radio Service) technology
provided by GSM (Global System for Mobile Communications) networks. The proposed
AMR system consists of three main parts: Accurate digital meter, a transmission facility and
the billing server. To make affordable AMR system a low cost off-the-shelf materials are
used. Successful demonstration of the system prototype has made it possible to be
implemented in the kingdom of Bahrain and other Middle East countries on a larger scale for
meter reading applications. The AMR system consists of a meter; a GPRS based transmitter
and a billing server. The low cost was achieved using off-the-shelf available components.
The system security was achieved using the smart card that store encryption keys or use the
crypto-co-processor of the SIM (Subscriber Identity Module) card. A billing server with
meter data management system implemented using ASP.net technology.

Neha Gaur et al [2012] identifies Electrical power distribution system as an important part of
electrical system in delivery of electricity to consumers. Electric power utilities worldwide
are increasingly adopting the computer aided monitoring, control and management of electric
power distribution system to provide better services to electric consumers. Therefore,
research and development activities worldwide are being carried out to automate the electric
power distribution system utilizing recent advancements in the area of IT and data
communication system. Their paper reports the present and past status of the research and
development activities in the area of electric power distribution automation both in developed
as well as in developing countries. At present, power utilities have realized the need for full
scale distribution automation to achieve on-line system information and remote control
system. This is required in order to fully accomplish the restricting (GENCOs, TRANSCOs,
DISCOs, and ESCOs) of the power system to the level of retail wheeling. On the other hand,
the main motivation for accepting the distribution automation in developing countries such as
India is to improve operating efficiency of distribution system. This indicates worldwide
interest for distribution automation at present.

18

2.2

RESEARCH METHODOLOGY

The research work carried out for this project was more of descriptive in nature. Since this
project is a study project, hence in this project the major task was collection of data, and
analysing this data and also studying impact of Information Technology in Distribution
Sector.

19

CHAPTER 3
INFORMATION TECHNOLOGY
INFRASTRUCTURE IN INDIAN
POWER DISTRIBUTION BUSINESS

20

3.1

INDIAN POWER SECTOR OVERVIEW

The process of electrification commenced in India almost concurrently with the developed
world, in the 1880s, with the establishment of a small hydroelectric power station in
Darjeeling. However, commercial production and distribution started in 1889, in Calcutta
(now Kolkata).

When, India became independent in 1947, the country had a power generating capacity of
1,362 MW. Power was available only in a few urban centres. After independence, all new
power generation, transmission and distribution in the rural, as well as in the urban centres
(which were not served by private utilities), came under the purview of State and Central
Government agencies. SEBs (State Electricity Boards), were formed in all the states.

Under the Electricity (Supply) Act, 1948, the CEA (Central Electricity Authority) was
constituted, for power planning at the national level. The Act, also allowed private licensees
to distribute and/or generate electricity in the specified areas designated by the concerned
State Government/SEB. From the 5th five-year plan onwards, 1974-79, the GoI (Government
of India) involved itself in a big way in the generation and bulk transmission of power and
took upon itself the responsibility of setting up large power projects in order to develop the
coal and hydroelectric resources in the country. The NTPC (National Thermal Power
Corporation) and NHPC (National Hydro-Electric Power Corporation) were set up for this
purpose in 1975.

In 1995, the policy for mega power projects with a capacity of 1,000 MW or more and
supplying power to more than one state was introduced. These mega projects are set up in the
regions, having coal and hydel potential or in the coastal regions, based on imported fuel. The
GoI promulgated Electricity Regulatory Commission Act, 1998 for setting up of Independent
Regulatory Bodies, viz. The CERC (Central Electricity Regulatory Commission) and the
SERCs (State Electricity Regulatory Commissions), at the Central and the State levels,
respectively.

The main function of the CERC is to regulate the tariff of generating companies, owned or
controlled by the Central Government as well as, of those generating companies which enter

21

into or otherwise have a composite scheme for generation and sale of electricity in more than
one state. It also, regulates the inter-state transmission of energy, including tariff of the
transmission utilities and inter-state bulk sale of power. The main functions of the SERC are
to determine the tariff forelectricity, wholesale, bulk, grid or retail, to determine the tariff
payable for use by the transmission facilities and to regulate power purchase and procurement
process of transmission utilities and distribution utilities.

The policy of liberalization of the GoI announced in 1991 and consequent amendments in
Electricity (Supply) Act have opened new vistas to involve private efforts and investments in
the electricity industry.

Installed capacity of 1,362 MW in 1947, increased to 2.05 GW as of June 2012. India has
become the fifth largest producer and consumer of electricity in the world.

3.2

ELECTRICITY DISTRIBUTION IN INDIA

The demand for electrical energy is ever increasing. Today over 21% (theft apart!!) of the
total electrical energy generated in India is lost in transmission (4-6%) and distribution (1518%). The electrical power deficit in the country is currently about 18%. Clearly, reduction in
distribution losses can reduce this deficit significantly. It is possible to bring down the
distribution losses to a 6-8 % level in India with the help of newer technological options
(including information technology) in the electrical power distribution sector which will
enable better monitoring and control.

3.3

HOW DOES POWER REACH US?

Electric power is normally generated at 11-25kV in a power station. To transmit over long
distances, it is then stepped-up to 400kV, 220kV or 132kV as necessary. Power is carried
through a transmission network of high voltage lines. Usually, these lines run into hundreds
of kilometres and deliver the power into a common power pool called the grid. The grid is
connected to load centres (cities) through a sub-transmission network of normally 33kV (or
sometimes 66kV) lines. These lines terminate into a 33kV (or 66kV) substation, where the
voltage is stepped-down to 11kV for power distribution to load points through a distribution
network of lines at 11kV and lower.

22

The power network, which generally concerns the common man, is the distribution network
of 11kV lines or feeders downstream of the 33kV substation. Each 11kV feeder which
emanates from the 33kV substation branches further into several subsidiary 11kV feeders to
carry power close to the load points (localities, industrial areas, villages, etc.,). At these load
points, a transformer further reduces the voltage from 11kV to 415V to provide the last-mile
connection through 415V feeders (also called as LT (Low Tension) feeders) to individual
customers, either at 240V (as single-phase supply) or at 415V (as three-phase supply). A
feeder could be either an overhead line or an underground cable. In urban areas, owing to the
density of customers, the length of an 11kV feeder is generally up to 3 km. On the other
hand, in rural areas, the feeder length is much larger (up to 20 km). A 415V feeder should
normally be restricted to about 0.5-1.0 km. unduly long feeders lead to low voltage at the
consumer end.

3.4

BOTTLENECKS IN ENSURING RELIABLE POWER

Lack of information at the base station (33kV sub-station) on the loading and health status of
the 11kV/415V transformer and associated feeders is one primary cause of inefficient power
distribution. Due to absence of monitoring, overloading occurs, which results in low voltage
at the customer end and increases the risk of frequent breakdowns of transformers and
feeders. In fact, the transformer breakdown rate in India is as high as around 20%, in contrast
to less than 2% in some advanced countries.

In the absence of switches at different points in the distribution network, it is not possible to
isolate certain loads for load shedding as and when required. The only option available in the
present distribution network is the circuit breaker (one each for every main 11kV feeder) at
the 33kV substation. However, these circuit breakers are actually provided as a means of
protection to completely isolate the downstream network in the event of a fault. Using this as
a tool for load management is not desirable, as it disconnects the power supply to a very large
segment of consumers. Clearly, there is a need to put in place a system that can achieve a
finer resolution in load management.
In the event of a fault on any feeder section downstream, the circuit breaker at the 33kV
substation trips (opens). As a result, there is a blackout over a large section of the distribution
network. If the faulty feeder segment could be precisely identified, it would be possible to

23

substantially reducethe blackout area, by re-routing the power to the healthy feeder segments
through the operation of switches (of the same type as those for load management) placed at
strategic locations in various feeder segments.

24

Figure 3 Typical Power Transmission and Distribution Scenario with DA components

3.5

PRESENT STATUS OF POWER DISTRIBUTIONBUSINESS

In India, general consumers have no choice of electricity products. No distribution company


has bothered to design products that suit the needs of different areas or different consumers.
This, despite the fact that several private distribution companies have been in existence since
before reforms in the sector.

25

The reasons are not hard to find. There is logic for designing several products only if there
are more than one provider of a service, and they are free to compete with each other. In
India, this is not the case. Earlier, state electricity boards were the sole providers of
electricity. Now, it is private distribution companies (Discoms) or smaller government-owned
corporations who have sole responsibility of providing electricity in a distribution area.

With reforms, we have changed the ownership of some distribution companies from public
sector to private sector, but they have the same monopoly. It is not possible for a consumer
whether domestic, commercial or industrial1to buy electricity from someone other than the
distribution company in his locality.

So, we have succeeded in replacing public sector monopolies with private sector monopolies
on the distribution side of the electricity value chain. But the basic premise of the Electricity
Act, 2003, is to create competition for the benefit of consumers. Reform of the distribution of
electricity is incomplete if we do not introduce competition along with private distribution
companies. It is imperative that all enabling provisionswhether legal, regulatory or
otherwiseare put in place in such a way that the monopoly of distribution companies comes
to an end.
Distribution of electricity in India by definition includes the wire business as well as retailing.
It is the very nature of the wire business that has made distribution a non-competitive activity.
In order to bring about competition, the two activities should be bifurcated. The wire business
can bea separate activity with open access provisions. It will be very similar to the
transmission line business, only at lower voltage levels.
Retailing of electricity can be a separate business, wherein retailers could sell electricity
products to users and distribution wire providers would have to (on a first-come-first-served
basis) provide retailers access to their distribution network. Retailers, in turn, can have their
own agreements for the purchase of electricity from either the generation companies or bulk
traders. This open access to the distribution wire network will be the same as that provided by
transmission companies to generators of electricity under regulatory oversight.

As per EA 2003 The Act provides for open access of Distribution networks to all bulk
consumers. Bulk consumers are consumers with power requirement of 1MW or above.
Section 38(2)(d), 39(2)(d) and Section 42 of
the Act are relevant for open access.

26

The regulator, through a transparent process, fixes tariff for transmission and this may be
followed in the case of the distribution wire business. This will provide an enabling
framework for retailers to compete with each other and bring in more efficient distribution. It
will also lead to a situation where many products and a wider choice will be available to the
consumer.

It is not essential that the distribution wire company is a private business; it can remain a
government-owned company. Similarly, retailers can also be government-owned or private
companies. The key is that there should be more than one retailer in any area.

Consumers above 1MW may choose their source of electricity. In this scheme, a distribution
company has to be compensated for loss of business if he is asked to sell electricity produced
by a generator not having a contract with him. This is necessitated since distribution includes
the wire business as well as retail sale of electricity. This extra charge has been defined as a
surcharge and has to be paid by the consumer who opts for a generator not of the choice of
the distribution company.

This is a roundabout way of bringing about competition in distribution and that, too, only for
loads above 1MW. It excludes domestic and other small consumers. A simpler mechanism, as
described in the preceding paragraphs, would be easy to understand and implement. Pricing
of electricity by retailers can be left to market forces if there is sufficient competition in terms
of retailers. In places where there is no private retailer, a government-owned retailing
company may be required.

One advantage of making distribution wire business a separate activity is that there will be a
reasonable return on distribution network assets, as tariffs will be fixed by the regulator and
will

help in proper maintenance and upgrade of these assets, which are neglected today as this is
considered a drain on revenue and does not add to the bottom line. The Discom today tends to
give more emphasis to billing and collection.

The second advantage is that new investments will also be easier to come by, as regulated
returns will facilitate financial closure for distribution network projects. How and what needs
27

to be built or strengthened can be managed exactly in the same fashion as transmission lines
are built or strengthened today. The third advantage will be a reduction in technical losses in
distribution due to better operations and maintenance, since it will be the sole business of the
distribution network company.

This change in the current electricity distribution paradigm will bring about competition in
the distribution sector. As competition sets in, retailers of electricity will be forced to come
up with many electricity products suited to different needs of consumers.

3.6

AUTOMATION IN POWER DISTRIBUTION

Though significant generating capacities are coming up in the country, but because of
unreliable fuel supply and recent serial grid breakdowns, are giving rise to a spectre akin to
the California power crisis2.

It is thus imperative that power utilities look at increasing efficiencies in distribution


networks, which have among the highest transmission and distribution losses in the world at
upwards of 20 per cent.

In addition, the social pricing for rural and other sectors puts an increasing pressure on
utilities to improve productivity as also reduce operating and maintenance costs to remain
financially viable.

With IT courting telecom, the new millennium has leapfrogged into a revolution in
networking and communication technologies to offer automation as a solution to improve
distribution efficiencies.

Distribution automation is a tool for enterprise-wide management of an electric utility


system. In other words, an ERP along with BI (Business Intelligence) for an electric utility
that, properly applied, provides for efficient operations, enhances operational outputs and
translates into economic benefits. Some of the initiatives in distribution automation include
complete distribution automation, city power distribution automation, AMR, electric SCADA
and distribution management for electric utilities.

28

3.7

NEED TO AUTOMATE

Existing distribution systems have certain inherent inefficiencies due to their legacy. For one,
many systems are monitored manually. This results in maintenance taking place only during
breakdowns. The present system also does not ensure reliable and complete power system
and
usage information that can facilitate trend forecasting or help the utility in better analysis and
planning.
At places, the billing systems are still unreliable. While the present system has intensive
manpower requirement and over-dependence on experts, it is still a logistic nightmare to
reach remote locations. Even trouble-shooting in case of breakdowns is based on the
conventional call system through telephone answering machines.

3.8

DISTRIBUTION AUTOMATION SYSTEM

In a distribution automation (DA) system, the various quantities (e.g., voltage, current, switch
status, temperature and oil level) are recorded in the field at the distribution transformers and
feeders, using a data acquisition device called RTU (Remote Terminal Units). These system
quantities are transmitted on-line to the base station (33kV substation) through a variety of
communication media. The media could be either wireless (e.g., radio, and pager) or wired
(e.g., Dial-up telephone, RS-485 multi-drop, and Ethernet). The measured field data are
processed at the base station for display of any operator selected system quantity through
GUI (Graphic User Interface). In the event of a system quantity crossing a pre-defined
threshold, an alarm is automatically generated for operator intervention. Any control action
(for opening or closing of the switch or circuit breaker) is initiated by the operator and
transmitted from the 33kV base station through the communication channel to the remote
terminal unit associated with the corresponding switch or circuit breaker. The desired
switching action then takes place and the action is acknowledged back to operator for
information.

Also known as the Western U.S. Energy Crisis of 2000 and 2001

29

3.9

METERING& BILLING SYSTEM

For a long time, utilities employed unsophisticated meters to track their customer's usage.
These meters were read by a meter reader or by the customers themselves. Today greater
strains on the power grid, environmental concerns, liberalization of utility markets, and new
government-mandated billing systems mean that power suppliers must upgrade their metering
systems.

Meters that had to be read manually then gave way to Automated Meter Reading (AMR)
systems. These "smarter" meters either transmit data directly to the utility company or are
read by downloading meter data in a MRI3. However, this communication moved data in only
one direction: from the meter to the utility. AMR was certainly an improvement, but
unidirectional communications meant that some types of common transactions, such as
disconnection and reconnection, could not be performed automatically.
An AMI (Advanced Meter Infrastructure)4, on the other hand, provides two-way
communication between meters at the customer site and the utility company. The
communication is frequent as well.

SAP for Utilities now provides a way to communicate with an AMI through the Advanced
Meter Infrastructure ES bundle. This ES bundle provides enterprise services that allow
information to flow back and forth between the meters, the metering system platform (also
known as the AMI), and SAP back-end systems. Using these enterprise services, utility
companies can disconnect and reconnect customers, as well as uploading profile data from
the AMI into SAP ERP 6.0

The technical processes are the province of the utility companies. The SAP backend systems
communicate with SAP NetWeaver Process Integration (SAP NetWeaver PI) using the
enterprise services in this ES bundle. Depending on the metering system platform, SAP
NetWeaver Process
3

The gadget used for downloading data from meter is called Meter Reading Instrument
(MRI)
Utilipoint International, Inc. Defines an AMI as "a communication network and meters
providing interval usage (at least hourly) and collected at least daily."

30

Integration formats the XML message to transfer the data from the SAP backend systems to
the

Figure 4 A Graphic of the Components Involved in AMI


metering system platform and back again.

3.10 SCADA
SCADA (supervisory control and data acquisition) generally refers to ICS (Industrial Control
Systems): computer systems that monitor and control industrial, infrastructure, or facilitybased processes, as electrical power transmission and distribution etc.

The term SCADA usually refers to centralized systems which monitor and control entire
sites, or complexes of systems spread out over large areas (anything from an industrial plant
to a nation). Most control actions are performed automatically by RTUs or by PLCs (Power
Line Communication Systems). Host control functions are usually restricted to basic
overriding or supervisory level intervention. For example, a PLC may control the flow of
cooling water through part of an industrial process, but the SCADA system may allow
operators to change the set points for the flow, and enable alarm conditions, such as loss of
flow and high temperature, to be

31

displayed and recorded. The feedback control loop passes through the RTU or PLC, while the
SCADA system monitors the overall performance of the loop.

Data acquisition begins at the RTU or PLC level and includes meter readings and equipment
status reports that are communicated to SCADA as required. Data is then compiled and
formatted in such a way that a control room operator using the HMI (Human Machine
Interface) can make supervisory decisions to adjust or override normal RTU (PLC) controls.
Data may also be fed to a Historian, often built on a commodity Database Management
System, to allow trending and other analytical auditing.

SCADA systems typically implement a distributed database, commonly referred to as a tag


database, which contains data elements called tags or points. A point represents a single input
or output value monitored or controlled by the system. A series of value-timestamp pairs
gives the history of that point. It is also common to store additional metadata with tags, such
as the path to a field device or PLC register, design time comments, and alarm information.

SCADA systems are significantly important systems used in national infrastructures such as
electric grids, water supplies and pipelines.

3.11 GIS
GIS (Geographic Information System) integrates hardware, software, and data for capturing,
managing, analysing, and displaying all forms of geographically referenced information.

GIS allows to view, understand, question, interpret, and visualize data in many ways that
reveal relationships, patterns, and trends in the form of maps, globes, reports, and charts.

Electric utilities have a need to keep a comprehensive and accurate inventory of their physical
assets, both as a part of normal service provision (extending the network, undertaking
maintenance, etc.) and as a part of their obligation to inform third parties about their facilities.
Complexity of electrical distribution power system is a good reason for introducing new
information technology - GIS (Geographic Information System) that carries out complex

32

power system analyses (e.g., fault analysis, optimization of networks, load forecasting) in
acceptable amount of time. By using modern GIS, in conjunction with his own in-house
developed software,in less time and more accurately, the utility engineer is able to design and
to analyse electrical distribution network.The objective of the distribution network design
process can be divided into three independent parts.

Load Forecasting

Load growth of the


geographical area served
by substation
Determination of load
magnitude and its
geographic location
Customer load
characteristics

Design Of Secondary
System (Low Voltage
Distribution Network)
Optimal substation
allocation and
transformer sizing
Secondary circuitry
routing and sizing

Design of Primary
System
(Medium Voltage
Distribution Network)
Optimal substation
allocation
Primary circuitry routing
and sizing

3.12 THE SMART GRID VISION OF INDIA


The adaptation of the smart grid vision to the Indian context offers the potential to
revolutionize electricity supply and increase the probability of achieving the Government of
Indias electricity sector goals sooner and more effectively. The immediate beneficiaries
would be the people of India. The design of a sustainable smart grid model would also
provide a blueprint for developing nations.

In its broadest interpretation, the smart grid vision sees the electric industry transformed by
the introduction of two-way communications and ubiquitous metering and measurement. It
will enable much finer control of energy flows and the integration and efficient use of
renewable forms of energy, energy efficiency methodologies and technologies, as well as
many other advanced technologies, techniques and processes that wouldnt have been
practicable until now. It will also enable the creation of more reliable, more robust and more
secure electrical infrastructure, and it will help optimize the enormous investments required

33

to build and operate the physical infrastructure required.


Fortunately, computing and telecommunications key drivers of the smart grid are the
archetypes for a transformational technology that is rising in Indian power industry to mature
the operations.

Figure 5 Distributed micro-grid Power System

3.13 DRIVERS IN INDIA


Six factors will drive the adoption of information technology for the development of smart
grid in India:

3.13.1

Supply shortfalls

Demand, especially peak demand, continues to outpace Indias power supply. The increasing
affordability of household appliances is adding to the burden on the grid. Official estimates of
Indias demand shortfall is 12% for total energy and 16% for peak demand. Managing growth
and ensuring supply is a major driver for all programs of the Indian power sector.
3.13.2 Loss reduction

34

Indias aggregate technical and commercial losses are thought to be about 25-30%, but could
be higher given the substantial fraction of the population that is not metered and the lack of
transparency. While a smart grid is not the only means of reducing losses, it could make a
substantial contribution.
3.13.3 Managing the human element in system operations

Labour savings are not a prime driver for the smart grid in India, as contracts for outsourcing
are inexpensive. However, automated meter reading would lower recording and other errors
including what are known elsewhere as curbstone readings or shade tree readings
or even deliberate errors, which are thought to be significant reasons for losses.

3.13.4 Peak load management

Indias supply shortfalls are expected to persist for many years. A smart grid would allow
more intelligent load control, either through direct control or economic pricing incentives
that are communicated to customers in a dynamic manner. Such measures would help
mitigate the supply-demand gap.

3.13.5 Renewable energy

India has supported the implementation of renewable energy. Historically, much of its
support was for wind power, but the newly announced National Solar Mission and its goal to
add 20,000 MW of solar energy by 2020 should be an accelerant. Spurred by environmental
concerns and the desire to tap into all available sources of power, this move can also be a
smart grid driver.

3.13.6 Technological leapfrogging

Perhaps the most intriguing driver for India is the potential to leapfrog into a new future for
electricity, as it did with telecommunications. Also, the smart in a smart grid is ICT
(Information and Communication Technology)An area of unique capability in India.

35

Key characteristics of the


smart grid

3.14 WHAT,EXACTLY,IS ASMART GRID?


Simply put, a smart grid is the integration of information and
communications technology into electric transmission and
distribution networks. The smart grid delivers electricity to
consumers using two-way digital technology to enable the
more efficient management of consumers end uses of
electricity as well as the more efficient use of the grid to
identify

and

correct

supply

demand-imbalances

instantaneously and detect faults in a self-healing process


that improves service quality, enhances reliability, and
reduces costs.

The emerging vision of the smart grid encompasses a broad


set of applications, including software, hardware, and
technologies that enable utilities to integrate, interface with,
and intelligently control innovations.

Some of the enabling technologies that make smart grid


deployments possible include:

Meters

Storage devices

Distributed generation

Renewable energy

Energy efficiency

Home area networks

Self-healing: The grid


rapidly detects, analyses,
responds, and restores
Empowers
and
incorporates
the
consumer: Ability to
incorporate
consumer
equipment and behaviour
in grid design and
operation
Tolerant of attack: The
grid mitigates and is
resilient
to
physical/cyber-attacks
Provides power quality
needed by 21st-century
users: The grid provides
quality power consistent
with
consumer
and
industry needs
Accommodates a wide
variety of supply and
demand:
The
grid
accommodates a variety
of resources, including
demand
response,
combined
heat
and
power,
wind,
photovoltaics, and enduse efficiency
Fully enables and is
supported by competitive
electricity markets
Perfect Power, McGraw
Hill, 2009, p. 82

36

Demand response

IT and back office computing

Security

Integrated communications systems

Superconductive transmission lines

3.15 SOLUTIONS FOR DISTRIBUTION UTILITIES


Enabling the core business operations with information systems at the transaction level would
lay the foundation for sustainable reforms in India. This will ensure world-class practices and
controls at the operations level and would bring about sustainable improvements in the
overall health of the utilities. This will enhance the overall quality of data, thereby improving
the flow of information for decision support.

IT would enable sustainable changes in the operations increasing controls at a transaction


level, improving the efficiency of the operations and increasing transparency across the
organisation. The figure below depicts how IT would enable the creation of reliable data at
the grassroots level. This information would then flow to the managerial level for tactical
decisions and further up to the strategic level. This would facilitate the change of culture
towards information-based decisions sought by the reforms process.
Improved operational
efficiency Reduction
in losses

37

Figure 6 Benefits of Information Flow across the Organization


Information Technology would thus become the key enabler of the initiatives under the
reform process. In addition, it would act as a catalyst by providing an information
infrastructure essential to the reform processes and practices. Here, it is essential to clarify
that IT is not the panacea toall problems. It does not substitute the fundamental changes and
activities under the reforms process. It rather plays the role of an enabler providing strategic
support.

The global IT market for the power distribution sector provides a wide range of technologies
and solutions. These solutions address the entire business value chain in power distribution
from setting up distribution network and service connection to distribution load management,
delivery of power and customer facing processes. These IT solutions serve diverse regulatory
market models ranging from monopoly markets to highly competitive ones. The range of IT
products serves a wide range of organisation sizes from small utilities to global energy
majors. Overall, the IT products market is an evolved one, if not the most evolved as
compared to sectors such as financial services or manufacturing. There is a large share of
custom developed IT solutions also in use, primarily in business applications and very little in

38

IT infrastructure.
The following figure5 depicts the core business value chain of a distribution utility (on top)
and typical IT applications (on left) as a matrix.

Figure 7 Distribution Business Value Chain and Typical IT Applications

The multiple intersection points show that many applications address requirements across the
value chain and thus, as stated earlier, it becomes critical to plan the interfaces upfront.
Several product vendors today provide end-to-end solutions as well as point solutions. In
selecting products, compatibility with the other products in the current context as well as in
the changing context needs to be considered.

Effective deployment of information technology by distribution companies would largely


depend upon:

Sustained leadership commitment

Leveraging best practices and realigning the business processes

Ref IT Task Force Report

39

Improving the responsiveness of the structure and aligning to changed processes

Improving the overall quality of data used for implementing the systems

Securing commitments and ownership of people to the changes and making them
accountable for implementing and operating the new systems

Providing adequate training and enabling people to enhance their skills

Promoting data oriented decision making environment

3.16 IT STRATEGY AND PLANS


A structured and comprehensive IT strategy and plan will help the distribution utilities to
derive the benefits from information technology. The IT strategy and plans will need to
consider several aspects including:

The overall business strategy and needs

Potential changes to operations

Potential changes to industry structures (e.g. disaggregation of distribution business


into wires business and information technology)

Leveraging existing IT infrastructure and applications

The phasing of the investments will need to be driven by the business priorities and the return
on

investments. The IT strategy and plan will include details on:

Application architecture

Data architecture

Infrastructure requirements hardware and network

40

IT organisation, processes, policies and standards

List of businessIT initiatives or projects and implementation plan for the applications
to be used by the organisation over a period of time

Investment requirements and their phasing

The IT applications have been divided into the following four categories:

Prerequisites To be established first to allow implementation of subsequent IT


applications

Short-term Quick wins

Medium-term High return

Advanced applications

Figure 8 Indicative Roadmap for Applications under the Four Categories

The arrows indicate the direction to be followed along the two dimensions time and
extent of deployment in the geography. {Ref IT Task Force Report}

41

3.16.1. Advanced applications

The advanced applications can be built only after establishing a strong foundation in the
preceding phases. For instance, mobile field force solution can be built only after establishing
a system for management of field service orders (and customer and service databases even
earlier). E-business solutions such as customer self-service and e-procurement require the
CIS, SCM (Supply ChainManagement), etc., to be in place.

By this time, the typical application portfolio at a distribution utility would look something
like this:
Distribution

Retail / Customer Services

Customer Information System (CIS), CRM


Billing and EBPP, Complex Billing
Self Service Internet site

Meter Info. System

AMR, Prepaid metering


Call Centre / IVR / CTI

OMS / TCMS, WMS


PMS

GIS, SCADA, EMS


SFA (Sales Force Automation)

Mobile Workforce

ERP Finance & Accounts, HR, Procurement, EAM, Decision Support


Data Warehousing, Workflow Management

42

3.17 INTEGRATED BILLING SYSTEM FOR LARGE C&I

CUSTOMERS

The objective is to integrate meter reading, billing, payment and collection for C&I
customers to eliminate scope for tampering and manipulation and thus improve collection7
(C&I customers contribute more than 70% of revenue).

Figure 9 Current Billing System

Figure 10 Integrated Billing System

Integrated billing system As Proposed in IT Task force report

43

Figure 11 Energy accounting System

Figure 12 Extended Business Interaction System

3.18 ENTERPRISE RESOURCE PLANNING


Enterprise resource planning (ERP) systems integrate internal and external management
information across an entire organization, embracing finance/accounting, manufacturing,
sales and service, customer relationship management, etc. ERP systems automate this activity
with an integrated software application. The purpose of ERP is to facilitate the flow of

44

information between all business functions inside the boundaries of the organization and
manage the connections to outside stakeholders.

ERP systems can run on a variety of computer hardware and network configurations,
typically employing a database as a repository for information. The transformation of ERP
into a cloud-based model has been relatively slow, but as cloud computing makes other
inroads into the enterprise environment some functionality is being moved to the cloud.

Global Leaders in providing ERP solutions are SAP AG, Oracle & Microsoft. All the utilities
we surveyed were utilizing SAP AG solutions in their businesses.

3.18.1. SAP Utilities

In August 2002, SAP launched the Efficiency Project IS-U/CCS. The idea was conceived of
following a number of projects, in which customers expressed the desire to improve the
efficiency of certain IS-U/CCS mass dialog processes (such as Find Business Partner,
Identify Business Partner, Move-In, Move-Out, Move-In/Out, Change Bank Details, Bill
Correction). The SAP Utilities (IS-U) component is a sales and information system that
supports all business processes and utility services of a utility company. IS-U can also be
used for managing and billing residential, commercial and industrial, and prospective
customers. This component also allows to manage and bill customers who receive services,
purchase goods, or pay fees and taxes.
IS-U comprises the following modules:

Master Data and Basic Functions

Customer Services

Work Management

Device Management

Billing & Invoicing

Energy Data Management

Contract Accounts

A complete SAP for Utilities solution should also contain the following SAP products:
CRM Customer Relationship Management
BW Business Warehouse

45

The CRM solution is design to cover


all the marketing, customer
acquisition, sales and customer
services processes of a utility
company. It is fully integrated with
the IS-U: CRM works as a front end
(contracts, customer services, market
campaigns and IS-U as a backend
(billing, payment processing, work
management, etc.). For example
when using a CRM as a front end
system, a

contact created in CRM is

Figure 13 IS-U/CCS as a component in the ERP


solution

replicatedautomatically in IS-U where the


necessary master data is created automatically
using Master Data Templates.

The Business Warehouse solution is used for reporting. Is comes with a Business Content
which already contains a lot of predefined Info Cubs and reports.

Figure 14 Functional Scope of SAP IS-U

46

3.18.2. ERPModelling of Distribution Business

Figure 15 IS-U/CCS as an integrated component of the SAP enterprise information


system

Figure 16 Integration with other SAP and non-SAP Solutions (An example)

47

3.18.3. Oracle ERP


Oracle helps utilities worldwide meet their biggest business challenges. Todays utilities need
to increase customer satisfaction and shareholder value, provide environmentally-friendly
service, and improve efficiency and reliability. To increase their effectiveness, they also need
to turn big data into actionable insight.

Oracle provides utilities with complete solutions and complete choice. Our mission-critical
utilities software is integrated with our market-leading business intelligence tools,
middleware, hardware, and database technologies, providing proven standalone applications
or complete solutions for a utilitys entire initiative.

Figure 17 The Oracle Solution Footprint for Utilities

48

3.18.4. Service-oriented architecture

SOA (Service-Oriented Architecture) is a set of principles and methodologies for designing


and developing software in the form of interoperable services. These services are welldefined

business functionalities that are built as software

components (discrete pieces of code and/or data


structures) that can be reused for different purposes.
SOA design principles are used during the phases of
systems development and integration.

SOA generally provides a way for consumers of


services, such as web-based applications, to be aware
of available SOA-based services. SOA defines how to
integrate widely disparate applications for a Webbased environment and uses multiple implementation
platforms. Rather than defining an API, SOA defines
the interface in terms of protocols and functionality.
An endpoint is the entry point for such a SOA
implementation.

Service-orientation requires loose coupling of services


with operating systems and other technologies that
underlie applications. SOA separates functions into
distinct units, or services, which developers make
accessible over a network in order to allow users to
combine and reuse them in the production of
applications. These services and their corresponding
consumers communicate with each other by passing
data in a well-defined, shared format, or by
coordinating an activity between two or more services.

49

Figure 18 Layer Interaction


Oriented
in ServiceArchitecture

SOA can be seen in a continuum, from older concepts of distributed computing and modular
programming, through SOA, and on to current practices of mashups, SaaS, and cloud
computing.

Figure 19 Delivery Channels for ERP System

50

3.19 AUTOMATED METER READING


Apart from efforts to meet growing demand, mounting AT&C losses in distribution is another
challenge being faced by utilities. Specifically developing utilities owe to lack of proper
energy accounting from infrastructural, technological shortfalls and manual interventions in
energy billing.

In the wake of technology upgradation and automation in the Energy Distribution, AMR
(Automated Meter Reading) or Meter Data Acquisition and Management assumes importance
in enabling the utilities to gather business and operational intelligence, through collection of
base line data to analysis, monitor and manage operations in AT&C losses reduction.

Automatic meter reading, or AMR, is the technology of automatically collecting


consumption, diagnostic, and status data from water meter or energy metering devices (gas,
electric) and transferring that data to a central database for billing, troubleshooting, and
analysing.

Figure 20 AMR Architecture

This technology mainly saves utility providers the expense of periodic trips to each physical
location to read a meter. Another advantage is that billing can be based on near real-time
consumption rather than on estimates based on past or predicted consumption. This timely

51

information coupled with analysis can help both utility providers and customers having better
control the use and production of electric energy consumption.

AMR technologies include handheld, mobile and network technologies based on telephony
platforms (wired and wireless), RF (Radio Frequency), or power line transmission to read
energy consumption.

3.19.1. Touch Technology

With touch based AMR, a meter reader carries a handheld computer or data collection device
with a wand or probe. The device automatically collects the readings from a meter by
touching or placing the read probe in close proximity to a reading coil enclosed in the
touchpad. When a button is pressed, the probe sends an interrogate signal to the touch module
to collect the meter reading. The software in the device matches the serial number to one in
the route database, and saves the meter reading for later download to a billing or data
collection computer. Since the meter reader still has to go to the site of the meter, this is
sometimes referred to as "on-site" AMR. Another form of contact reader uses a standardized
infrared port to transmit data. Protocols are standardized between manufacturers by such
documents as ANSI C12.18 or IEC 61107.

3.19.2. Wireless Technologies

The wireless meter reading technologies are generally based on radio frequencies. The
readings can be monitored on real time basis. Popular technologies in this category includes
GSM / GPRS based and CDMA based technologies.

52

Figure 21 Wireless AMR

GSM Based Technology

GSM based Automatic meter reading is the


technology of automatically collecting data
from energy meter and transferring that
data to a central database for billing and /
or analysing. The Transmitter circuit is
connected to the meter which counts the
pulses from it and displays it over the LCD
(Liquid crystal display) display. The
transmitter circuit containing a GSM
modem for data transforming, which
transforms the meter reading after each
fixed interval of pulses to a particular
number through SMS.

An additional advanced service is also


available, which includes the software
operating on the computer. This software

Figure 22 GSM

shows the updated reading. User has to put

Bases AMR

the unit rate

and date of billing, and then this software automatically calculates the bill and also print
it if printer is connected to computer.

53

Transmission Protocols

Simplex
Communication flow in one direction only broadcast television or radio

Half duplex
Capable of communication in both directions but not at the same time walkie-talkies

Full duplex
Simultaneous two-way communication the telephone
Communication Terminology

Circuit-switched / connection oriented

Seeking out and establishing a physical copper path end-to-end.

Implies the need to first set up a dedicated, end-to-end path for the connection before
the information transfer takes place.

Once the connection is made the only delay is propagation time.

CDMA Based Technology

The base station transmits coded data for all receivers at the same frequency and similarly all
receivers send their information with individual code at the same frequency. Negotiating a
call, the Base station and target receiver agrees on a special code. Information pertaining to
the target receiver is encoded using special code called as PN (Pseudo Random) code.

Data pertaining to base station and that of the target meter is decoded by using the respective
PN code.

54

Figure 23 Data Transfer over CDMA

Packet switched / connectionless

Store-and-forward network where the block of transfer is a complete packet. A


packet is a variable length block of data with a tight upper bound.

No set up is needed.

Each packet contains information which allows the packet to be individually routed
hop-by-hop.

3.19.3. Power Line Communication System (PLC)

PLC is a method where electronic data is transmitted over power lines back to the substation,
then relayed to a central computer in the utility's main office. This would be considered a
type of fixed network systemthe network being the distribution network which the utility
has built and maintains to deliver electric power.

It is also known as power line carrier, PDSL (Power Line Digital Subscriber Line), mains
communication, PLT (Power Line Telecom), PLN (Power Line Networking), and BPL
(Broadband over Power Lines).

55

Figure 24 Power Line Communication Network

56

CHAPTER 4
IT IMPLEMENTATION IN
INDIAN DISCOMS A SURVEY
IN DELHI

57

4.1

IT IN POWER

Information Technology (IT) is widely acknowledged to be crucial for efficient Operation


and Management of the Power Utilities, which need to handle a large amount of information
for their efficient operation. At the same time the opening and restructuring of the Indian
power sector have changed the perception of the power utility managers in the way they have
been doing business till now.

Although there are many IT solutions (like Billing, Financial Accounting, Pay Roll, Revenue
Management System etc.) already operational in most of the Discoms nationwide but these
systems are either integrated nor they support Discoms operations and provide relevant MIS
(Management Information System) for management to assist their decision making. Most of
the applications are in batch mode and do not support online updating of the database. The
applications hardly meet the functionality requirements of critical business processes
automation. The majority of the current applications do not support data aggregation and
consolidation at the organizational level. They are therefore not capable of providing the
management an enterprise wide view of the application data.

Power Discoms need IT systems that can support their operations. It is the call of the time for
them to go for IT Integration and adopting IT solutions like ERP in their Business Processes.
However the companies we surveyed, or can say the discoms in Delhi are utilising ERP for
their businesses, but this is not the case for all the discoms nationwide, as ERP integration is
a specialized task and a thorough study of the organization processes is required.

For the discoms already implemented ERP and looking forward to move up to the next level,
the solution is Business Intelligence (BI), which further processes the data and reports and
helps decision making quicker and reliable.
4.1.1

Objectives for ERP Implementation

The prime Objective of the Discoms for adopting ERP solutions were Process Improvement,
Efficiency improvement, Cost Reduction and better Customer Services. It includes improved
Communication and Collaboration capabilities, employee self-service facility etc.

58

Figure 25 Objectives for ERP implementation by discoms

Organizations go for ERP because it is a forward looking growth oriented stateofthe art
technology infrastructure which would help them achieve:

Process Improvement

Customer Satisfaction

Cost Reduction

Cycletime reduction

Profitability Focus

Centralization

Employee Job satisfaction

Data Security

Transparency

Regulatory needs

4.1.2

Challenges during ERP Implementation:

As per the responses obtained from the ERP Team leaders of Discoms, they faced the
following challenges in ERP implementation:

Process Mapping
Customization
Project Scheduling

Data Migration
Financial justification

59

Change Management
Outsourcing issues

Process Mapping:
Process Mapping (framing & finalizing Business Process Blueprint), design and ownership
are very important because information systems are implemented in order to support business
processes. If business processes are not well designed, any integration effort will not get the
desired results.

The Power Distribution is a typical utility having large database of consumers (its consumer
base includes right from the lowest citizen to the first citizen, from jhuggi / tapra to Palaces,
from gumties to Business Houses and not limited to from agriculture to Industries) There are
some 50 to 100 Consumer categories and sub categories in revenue cycle of a distribution
utility that requires a very precise and thorough business Process Blueprint for ERP
implementation.

The process requirements of integration are that customisation or site specific configurations
should be managed, system suppliers should commit to continue supporting their product and
experienced skills from the business should be used to design processes where the integration
will be based on.

Data Migration:
In many Discoms data is kept in manual ledgers. The exceptions are billing data and those
discoms where computerization is complete. Most of the events of Discoms are remained
unrecorded due to the lack of literate staff and non-prevailing or nonfunctioning of systems.
And for ERP every material has to be numbered and coded.

There is no standard Database or Data Warehouse created or maintained in many Discoms.


Each department viz. Commercial, Works, Finance, Stores & Purchase and O&M works in
isolation. It

also happens sometimes that if consolidated information is sought (say by Electricity


Regulator) then each department submits different information / data on the same subject. All
the information of various sections remains in nonstandard format or in that format which is
suitable to that particular department. While implementing ERP all the data are to be brought
on a common operating platform.

60

Moreover it is not possible practically to capture all the data (of say last 3040 yrs.) in
computer. So the relevant data for the minimum number of past years is entered or converted
in new format to suit with ERP software requirement. The creation of data warehouse and
correct data punching is really a cumbersome job.

Change Management:
The main issues that created problems in implementation are related with Man Power
Orientation, user unawareness and their lack of Interest. One of the problems with executive
sponsorship is that Discoms Senior Executives are "technology shy" i.e. they do not want to
get involved in technology projects and they delegate all the responsibility to their IT
managers. Due to this they lack interest and remain unaware of the new solutions and
technology. This reluctance to new initiative should be removed among the user employees.

Customisation:
Customizing an ERP package can be very expensive and complicated, because many ERP
packages are not designed to support customization, so most businesses implement the best
practices embedded in the acquired ERP system.

Outsourcing Issues:
There may be debate that whether the ERP solutions to be implemented by outsiders or by in
house team. Consultants can have a real role in providing expertise but only company people
know the company well enough and have the authority to change how things are done. When
implementation responsibility is decoupled from operational responsibility, then there is
controversy regarding legitimately accountability for results. If results arent forthcoming, the
implementers can claim the users arent operating it properly, while the users can say that it
wasnt implemented correctly.
But since the Discoms core business is not ERP nor do they have competent personnel of IT
(almost all the executives of Discoms are from Electrical / Civil Engineering background) so
they should hire an external agency and use their skills and experience for ERP
implementation.

61

Costing and Pay Back Period:


Establishing the costs and benefits of an ERP project is essential. Its very difficult to keep
ERP pegged as a very high priority if the relevant costs and benefits have not been
established and bought into. If ERP doesnt carry this high priority, the chances for success
decrease.
Their financial impact can be observed by comparing the O&M expenditure of the Utilitys
profit centre (Circle or Division or a Feeder in case of Discoms) before and after
implementation of ERP systems. But this exercise has hardly been done so far in the Indian
utilities (or elsewhere abroad for Electric Power Distribution Utilities).

The benefits of ERP are largely intangible and do not reflect directly on the balance sheet.
And due to this reason it is a challenge for an IT head of Discom to get financial approval for
an ERP project.

Project Scheduling:
ERP implementations are successful in terms of providing functionality; however there is
usually an overrun in terms of budget and time. The length of time to implement an ERP
system depends on the size of the business, the scope of the change and willingness of the
discoms to take ownership for the project.

4.2

A SURVEY OF DISCOMS (DELHI)

Delhi has to be power-sufficient if it wants to be a world class capital city. It also has to
achieve this in a cost-effective and sustainable manner. The power reforms of 2003 were the
first step in this direction. As a result of those reforms private participation was introduced in
distribution for the first time in Delhi.

The reforms have largely succeeded in cutting down the AT&C losses, reducing the financial
burden of exchequer, and in increasing the amount of metered power. However, the
generation capacity has remained stagnant. Delhis model of power reform has been unique,

62

and has largely escaped unscathed from the bitter experiences of power reforms introduced in
Orissa. The success of these reforms enabled the government to make claims of power selfsufficiency.
The research was carried out by the means of questionnaire8 and personal visits to the offices
and executives of the discoms.

4.3

BSES (BOMBAY SUB-URBAN ELECTRICITY SUPPLY


COMPANY), DELHI

4.3.1

Company Profile

Following the privatisation of Delhis power sector and unbundling of the Delhi Vidyut
Board in

July 2002, the business of power distribution was transferred to BYPL (BSES Yamuna Power
Limited) and BRPL (BSES Rajdhani Power Limited). These two of the three successor
entities distribute electricity to 28.34 lakh customers in two thirds of Delhi. The Company
acquired assets, liabilities, proceedings and personnel of the Delhi Vidyut Board as per the
terms and conditions contained in the Transfer Scheme.

BSES Yamuna Power Limited (BYPL)

BYPL distributes power to an area spread over 200 sqkms with a population density of 5953
per sq km. Its 11.9lakh customers are spread over 14 districts across Central and East areas
including ChandniChowk, Daryaganj, Paharganj, Shankar Road, Patel Nagar, G T Road,
Karkardooma, Krishna Nagar, Laxmi Nagar, MayurVihar, Yamuna Vihar, NandNagri and
Karawal Nagar.

The questionnaire with responses of the discomsare in Annexure 1 at the end of the report

63

BSES Rajdhani Power Limited (BRPL)

BRPL distributes power to an area spread over 750 sq. km with a population density of 2192
per sq km. Its over 16.44 lakh customers are spread in 19 districts across South and West
areas including Alaknanda, Khanpur, VasantKunj, Saket, Nehru Place, Nizamuddin,
SaritaVihar, HauzKhas, R K Puram, Janakpuri, Najafgargh, Nangloi, Mundka, Punjabi Bagh,
Tagore Garden, VikasPuri, Palam and Dwarka.
4.3.2

System Setup at BSES

Both BSES Yamuna Power Ltd & BSES Rajdhani power Ltd have SAP IS-U implemented at
their back end as the ERP package. The system they had tailor made for their specific
operations and share a common data centre having a single database and centralised
management system.
Various modules implemented under the ERP package includes Material Management,
Maintenance Management, Preventive Management, Management Information System,
Meter Data Management, Strategic Enterprise Management, Billing, Customer Relationship
Management, Human Resource, FI-CO (Financial Accounting Controlling).

The modules and processes are integrated via SOA architecture. The company also have
implemented AMR system utilizing both GSM and CDMA which enables remote meter
reading. However this system has been implemented for recording meter data of Key
Consumers only.
Metering system
Various parameters measured and recorded by the energy meter are finally downloaded for
billing/ monitoring purpose. The downloading of parameter means transferring the
parameters from meterto the records of the service company. Downloading can be manual i.e.
by reading the LCD display recording on a notebook or using some gadgets.

At BSES, they are using AMR system. Downloading of the parameters using electronic
gadgets which are attached to the meter without manual intervention is called AMR system.
The gadget attached to the meter downloads the parameter and then automatically
communicates it to the computer of the service company. The gadget used for downloading

64

data is called MRI (Meter Reading Instrument). The biggest advantage of MRI reading is that
it avoids human error in recording/ transfer of data.

The AMR system at BSES reads and record data from the smart meters and that data is
uploaded in SAP via intranet. However, this communication moved data in only one
direction: from the meter to the utility. AMR was certainly an improvement, but
unidirectional communications meant that some types of common transactions, such as
disconnection and reconnection, could not be performed automatically.

SAP for Utilities now provides a way to communicate with an AMI through the Advanced
Meter Infrastructure ES bundle. This ES bundle provides enterprise services that allow
information to flow back and forth between the meters, the metering system platform (also
known as the AMI), and SAP back-end systems. Using these enterprise services, utility
companies can disconnect and reconnect customers, as well as uploading profile data from
the AMI into SAP ERP 6.0. BSES should switch from intranet uploading of AMR data into
ERP to AMI, which is the next step towards smart metering.

Figure 26 A Typical BSES AMR Screen

65

Billing System
After the meter is connected/energised a K.No.is allotted based on the location and a nearby
consumer number. This determines a consumers Cycle Number and Book Number. Based on
Cycle Number, readings are taken by BSES Meter Reader every month or bimonthly. After
readings are taken and verified, the data is sent to companys Computer Division for
generation of the bill. The divisional office then distributes the printed bills through Bill
Distributors.

Collection System
At BSES they have a number of collection system available for the ease of consumers.

Figure 27 BSES Bill Payment System

4.3.3

Other IT enabled Practices at BSES

No Supply Complaint Registration through SMS

Retrieval of Billing/Payment details through SMS

Complaint Registration on IVRS (Interactive Voice Response System)


through auto recognition of telephone number

Auto call routing from the IVRS to the Customer service representative in case
CRN (Customer Reference Number)/CA number is not punched by the customer

Smart 2000 software is used for AMR data collection at BSES, Also there is an In-House

solution developed by Reliance for AMR monitoring & data collection.

66

Priority Queue on the IVRS for Fire/Shock related calls

Estimated wait time and Queue Number announcement on IVRS

Auto recognition of VIP customers on IVRS & priority service to VIP customers

100% Call Recording at the Call Centre

Caller Line Identification Computer Telephony Integration at the Call Centre

Availing SMS services on 5-54-54-64

BYPL has introduced a SMS service 5-54-54-64 for your convenience. In case of a power
outage, voltage fluctuation or an outage due to a meter issue, now you - residents of East and
Central Delhi can simply SMS and register your complaint. All you have to do is:

Type BSES <SPACE> FAUMDM

CODE <SPACE> CRN Number and SMS to 5-54-54-64

Fault Codes are:


1) NC for No Current,
2) VF for Voltage Fluctuation
3) MB for Outages on account of Meter Issues
Even Bill and Payment details are available through SMS. All you have to do is:

Type BSES <SPACE> BILL <SPACE> CRN Number and SMS to 5-54-54-64

Efforts are on to offer services such as, New Connection, Load Enhancement, Name/Address
and Category Change on this SMS services.

67

Electricity Calculator

A handy calculator to calculate the energy consumption of a consumer for his information is
also made available on the website. Any consumer can calculate their consumption by
multiplying 'a' (wattage) 'b' (No. of appliance) 'c' (consumption hours/day) 30 (days)
and divide it by 1000 to convert W to kW.10

Figure 28 A handy illustration to calculate the power consumption

10

The list and figures are indicative. Please calculate for your appliance and check
actual wattage. Ref - BYPL Citizens Charter 2010
68

IVRS Service

Figure 29 BSES IVRS Service

4.3.4

Implementation Benefits of ERP

Complete meter records and data are now maintained centrally in SAP

Validations will be performed to determine missed or faulty Meter Read data

Storage of historical data and current data facilitates the process of revision

11

Ref - BYPL Citizens Charter 2010

69

Automatic calculation of charges, Interest, Taxes & posting to Finance General


Ledger

Scope of manual error and inconsistent data processing decreased through


system validations

Maintenance notification provides the details like complaints created,


complaints resolved, duration of breakdown etc.

Task list and Maintenance plan helps to create preventive maintenance schedule and
that can be monitored online

Cases of wrong calculations of bill payments in legacy system have been detected
by ERP system thereby causing significant economic benefits

Since 2002 over 1.7 lakh cases of power theft booked

Over 10.51 lakh KW of power theft load unearthed

Brings enhanced transparency in the process flow

The automatic payment process leads to predefined system driven approach

Availability of desired information to top management in time

Figure 30 BYPL - AT&C Loss Reduction

12

BYPL Citizens Charter 2011

70

4.4

4.4.1

TPDDL (Tata Power Delhi DistributionLtd)

Company Profile

Tatapower-ddl is a joint venture between Tata Power Company and the Government of NCT
(National Capital Territory of Delhi) of Delhi with the majority stake being held by Tata
Power. It distributes electricity in North & North West parts of Delhi and serves a populace
of 50 lakh. The company started operations on July 1, 2002 post the unbundling of erstwhile
Delhi Vidyut Board. With a registered consumer base of around 12 lakh and a peak load of
around 1350 MW, the company's operations span across an area of 510 sq. Km.

Tatapower-ddl has been the frontrunner in implementing power distribution reforms in the
capital city and is acknowledged for its consumer friendly practices. Since privatisation, the
Aggregate Technical & Commercial (AT&C) losses in Tatapower-ddl areas have shown a
record decline. Today they stand at 13.2% (As on March 31, 2011) which is an
unprecedented reduction of over 75% from an opening loss level of 53%.

On the power supply front too, Tatapower-ddl areas have shown remarkable improvement.
The company has embarked upon an ambitious plan to implement high-tech automated
systems for its entire distribution network. Systems such as SCADA, GIS and OTS (Optical
Tracking System) are the cornerstone of the company's distribution automation project. To
fight the menace of power theft, modern techniques like HVDS (High Voltage Distribution)
System and LT Arial Bunch Conductor have been adopted.

Tatapower-ddl has to its credit several firsts in Delhi: SCADA controlled Grid Stations,
Automatic Meter Reading, GSM based Street Lighting system and SMS based Fault
Management System. To ensure complete transparency, the company has provided online
information on billing and payment to all its 1 million consumers. This happened in the first
year of operations itself. Tatapower-ddl believes in providing more value than just electricity
and is even rewarding its consumers for timely payment.

As a step towards captive generation, Tatapower-ddl has also established a 108MW gas based
combined cycle power generating facility at Rithala, North Delhi in its distribution area.

71

Tatapower-ddl has won several accolades for its pioneering efforts in power distribution
reforms. It has the rare distinction of being the first power distribution utility from India to
have received the prestigious honour in the international category by winning the 2008
Edison Award and again in 2009 for Policy Advocacy. Some of the other key recognitions
include international Palladium Balanced Scorecard Hall of Fame award- 2008, SAP Ace
award 2008; UPN, USA metering award; Asian Power Award 2011 (5th consecutive year),
Asia's Best Employer Brand Award 2011, Falcon Media Group- Best Performing Utility
(Urban), India Power Award- Research & Technology and the Asian Power Most
Inspirational CEO of the Year 2008 award. It is also the only distribution utility to receive the
ISO 9001, ISO 14001 and OHSAS 18001 certification.

4.4.2

Pioneering Technology Initiatives

Tatapower-ddl is credited with several pioneering initiatives and has set several benchmarks
in power distribution reforms in India.

4.4.3

Automation Initiatives & GIS

Tatapower-ddl embarked on automating all its 66 kV & 33 kV Grids and in line with the
same has already automated 34 grids with a view to operate all equipment from Central
command centre. This has expedited the resolution time for faults. The entire electrical
network has been mapped through GIS for enabling quicker fault location, speedy redressal
and the Outage Management System is being upgraded to be automated on GIS platform.

Complaint Management System

Tatapower-ddl has a unique SMS based Fault Management system using GSM which ensures
that the 'No supply' complaints lodged by a consumer gets addressed quickly and consumer
feedback is also institutionalized as part of the process.

72

Introduced online connection management by consumers

Tatapower-ddl uploaded the Billing details of all its consumers on its website
www.tatapower-ddl.com. Consumers can view their Bill, know the consumption pattern and
can even print Duplicate Bill and make online bill payments.

Consumer Relationship Management

Tatapower-ddl has institutionalized a structured approach towards Consumer Relationship


Management as it organizes regular meetings with consumer representative groups such as
RWAs, IWAs etc. on 1st Friday of every month in each district.

Automated Bill Payment Kiosks for consumer convenience

Tatapower-ddl has introduced Automated Bill Payment Kiosks, a first in Delhi and NCR
region. These unique ATM (Automatic Teller Machine) like kiosks accept both cash and
cheque payment towards electricity bills and even issue a receipt to the consumer. They are
operational 365 days a year from 8 AM- 8 PM.

4.4.4

System Setup at TPDDL

TPDDL have SAP IS-U implemented at their back end as the ERP package. The system they
had tailor made for their specific operations and have a data centre with single database and
centralised management system.
Various modules implemented under the ERP package includes Material Management,
Maintenance Management, Preventive Management, Management Information System,
Meter Data Management, Strategic Enterprise Management, Billing, Customer Relationship
Management, Human Resource, FI-CO (Financial Accounting Controlling).
The modules and processes are integrated via SOA architecture.

73

Data Collection Mechanism

Data collection mechanism in TPDDL is centralized in which data collected through various
collection centres (or points) is finally stored in a centrally connected server room. The data
collected is consolidated at MBC software using SAP PI, SAP ISU, SAP BW (Business
Warehouse) and home grown framework CFW.

Metering System

Various parameters measured and recorded by the energy meter are finally downloaded for
billing/ monitoring purpose. The downloading of parameter means transferring the
parameters from meter to the records of the service company. At TPDDL, they are using
AMR system. Downloading of the parameters using electronic gadgets which are attached to
the meter without manual intervention is called Automatic Meter Reading system. The gadget
attached to the meter downloads the parameter and then automatically communicates it to the
computer of the service company. The gadget used for downloading data is called Meter
Reading Instrument. The biggest advantage of MRI reading is that it avoids human error in
recording/ transfer of data.

Billing System

After the meter is connected/energised a K.No.is allotted based on the location and a nearby
consumer number. This determines your Cycle Number and Book Number. Based on Cycle
Number, readings are taken by our Meter Reader every month or bimonthly. After readings
are taken and verified, the data is sent to our Computer Division for generation of the bill.
The divisional office then distributes the printed bills through Bill Distributors.

74

Collection System

TPDDL provides its consumer with several modes of bill payment options
TPDDL Cash Collection Centre and Drop Boxes

Skypad Drop Boxes

Axis Bank Drop Boxes

Jeevan CSC

Oxi Cash

ATPM

Cash Collection Van

ITZ Cash

Internet

Payment through Airtel Mobile

iPay Electronic Payment


Payment by IVRS011-49165555

4.4.5

Box

Advantages of Using SAP ISU to TPDDL and Customers

New SAP based solution has empowered consumers with better real time online
facility to check their customer account details via website

It has helped the DISCOM to introduce facilities like TOD [Time of day] billing,
fuel surcharge, etc.

Single integrated solution helps in easy maintenance, scalability and better


management

4.4.6

Easy Integration with OMS (Outage Management System) & GIS

TPDDL SAP ISU Login for Consumers

75

Figure 31 TPDDL SAPISU Login screen

Figure 32 TPDDL - Power at your Fingertips

76

CHAPTER 5
CONCLUSION& THE WAY
FORWARD

77

5.1

CONCLUSION

BSES have SAP IS-U implemented at their back end as the ERP package. The system they
had tailor made for their specific operations and have a central database and centralised
management system.
Various modules implemented under the ERP package includes Material Management,
Maintenance Management, Preventive Management, Management Information System,
Meter Data Management, Strategic Enterprise Management, Billing, Customer Relationship
Management, Human Resource, FI-CO (Financial Accounting Controlling).

The modules and processes are integrated via SOA architecture.

The company also have implemented AMR system utilizing both GSM and CDMA which
enables remote meter reading. However this system has been implemented for recording
meter data of Key Consumers only.

Implementation Benefits of ERP at BSES includes:


Complete meter records and data are now maintained centrally in SAP
Validations will be performed to determine missed or faulty Meter Read data
Storage of historical data and current data facilitates the process of revision
Automatic calculation of charges, Interest, Taxes & posting to Finance General
Ledger
Scope of manual error and inconsistent data processing decreased through system
validations
Maintenance notification provides the details like complaints created, complaints
resolved, duration of breakdown etc.

78

Task list and Maintenance plan helps to create preventive maintenance schedule and
that can be monitored online
Cases of wrong calculations of bill payments in legacy system have been detected by
ERP system thereby causing significant economic benefits
Since 2002 over 1.7 lakh cases of power theft booked
Over 10.51 lakh KW of power theft load unearthed
Brings enhanced transparency in the process flow
The automatic payment process leads to predefined system driven approach
Availability of desired information to top management in time

Data collection mechanism in TPDDL is centralized in which data collected through various
collection centres (or points) is finally stored in a centrally connected server room. The data
collected is consolidated at MBC software using SAP PI, SAP ISU, SAP BW and home
grown framework CFW.

Advantages of Using SAP ISU to TPDDL and Customers:


New SAP based solution has empowered consumers with better real time online
facility to check their customer account details via website
It has helped the DISCOM to introduce facilities like TOD (Time of day) billing, fuel
surcharge, etc.
Single integrated solution helps in easy maintenance, scalability and better
management
Easy Integration with OMS & GIS

79

THE WAY FORWARD ERP WITH BI

5.2

Today the ERP along with BI is evolving to its full potential adapting to developments in
Technology and the market demands and requirements.

The major drivers which are shaping ERP & BI are:

Improvements in Integration & Flexibility.

Extension to eBusiness Applications.

Broader reach to new users.

Adoption of Web based Technologies.

The ultimate goal of ERP implementation is to enable organizations to run most of their
business processes using one Web enabled system of integrated software and databases
instead of a variety of separate e business applications.
A package of IT Solution Suite including GIS AMR / RMR ERP SCADA would provide
a Complete Digital Solution and Automation to Power Distribution Utility.

The Indian Power utilities are lagging behind mainly due to financial constraints since the
imported solutions are very expensive and not always directly suited to the Indian conditions.

There is an enormous potential for the development of indigenous technology in this area.
What is important is to visualize the power of information in the field of Energy
Management. The Power Distribution Utilities now must gear up for managing the wave of
change that is sure to hit the Power scenario in the near future.

5.2.1

Business Intelligence

Business intelligence (BI) is defined as the ability for an organization to take all its
capabilities and convert them into knowledge. This produces large amounts of information

80

which can lead to the development of new opportunities for the organization. When these
opportunities have been identified and a strategy has been effectively implemented, they can
provide an organization with a competitive advantage in the market, and stability in the long
run (within its industry).

BI technologies provide historical, current and predictive views of business operations.


Common functions of business intelligence technologies are reporting, online analytical
processing, analytics, data mining, process mining, complex event processing, business
performance management, benchmarking, text mining, predictive analytics and prescriptive
analytics.
Business intelligence aims to support better business decision-making. Thus a BI system can
be called a decision support system (DSS). Though the term business intelligence is
sometimes used as a synonym for competitive intelligence, because they both support
decision making, BI uses technologies, processes, and applications to analyse mostly internal,
structured data and business processes while competitive intelligence gathers, analyses and
disseminates information with a topical focus on company competitors. Business intelligence
understood broadly can include the subset of competitive intelligence.

Business intelligence solution is often referred to as business intelligence tools (BI tools)
representing a number of software applications that integrate to provide the means to report,
analyse and then present the data. Business intelligence software is also designed to use data
that is stored by the business in any type of data storage system or data warehouse.

The types of tools that make up a business intelligence software application solution
generally include tools for spreadsheets, operational dashboards, data mining, reporting,
search (query), OLAP (On-Line Analytical Processing), content viewer, and other
components of enterprise resource planning (ERP) systems. Often, business intelligence
software may also integrate tools designed for specific verticals, such as retail, healthcare or
education.

81

Figure 33 Business Intelligence Solution Architecture


Business intelligence software applications can be deployed in a number of ways, with the

following being the most common options:

Cloud Computing (cloud) Implementation: private cloud, hybrid cloud or a public


cloud.

On-Premise Installation: deployed in-house using owned or leased equipment.

SaaS (hosted on-demand): hosted by the application service provider (ASP).

Market has seen being dedicated to the ERP solutions alone. Emerging with new kind of

82

problems, BI solutions have slowly gained importance. During the recession towards the end
of last decade, companies have attributed their sailing through recession to BI solutions. BI
solutions have started gaining importance not only among the corporate and management but
also at operational level. But the question of the hour is has the BI solutions reached their true
potential? Even experts have been finding it difficult to define the extent to which BI can be
exploited to reach the level of maximum profitability. BI along with predictive analytics is
penetrating market at a tremendous speed. Companies are collaborating with consultants and
BI solution providers to cache-in on best of the best BI solutions. Truly, the growth of
business intelligence has been beyond imagination.

83

PREPARATION OF
DETAILED PROJECT REPORTFOR
STRENGTHENING OF EXISTING
DISTRIBUTION NETWORK OF BIHAR
STATE{UNDER BRGF SCHEME PHASE II }
TO MEET THE PROSPECTIVE LOAD DEMAND
FOR XIITH 5 YEAR PLAN (2012-17)

84

Introduction About State

The power sector in the state of Bihar is managed by the Energy Department, Government
of Bihar. The entities which run the power sector in the state of Bihar pre-unbundling of the
state electricity Board was as under:

Erstwhile Bihar State Electricity Board (BSEB) The erstwhile BSEB undertakes the
activities of power purchase, trading, generation through thermal resources,
transmission and Distribution in the state of Bihar. The Board prepares schemes on
electricity generation, transmission & distribution for which the state government
provides funds for implementation of the scheme from its plan allocation and also
obtains central allocation/funding from the Govt. of India.

Bihar State Hydroelectric Power Corporation (BSHPC) BSHPC has been established
to harness the hydroelectric potential in the State. The BSHPC conducts survey for this
purpose and prepares the schemes on hydroelectric power generation. The State Govt.
provides funds from its plan allocation and also facilitates funding, from the Central
Government and Govt. of India Financial institutions.

Bihar Renewable Energy Development Agency (BREDA) BREDA has been


established to promote development of schemes on non- conventional energy sources. It
has been nominated as nodal agency to carry out the remote village electrification
programme. The State Govt. provides plan funds to BREDA for expenditure on
subsidies for the schemes and also for the expenditures on establishment.

TenughatVidyut Nigam Limited (TVNL) - TVNL was established by the Govt. of Bihar
by 1987 for establishment of thermal power station at Lalpania in the district of Bokaro,
now in the state of Jharkhand. The registered office of the company is situated at Patna.
The TVNL has been transferred to the Govt. of Jharkhand by the Govt. of India.1

Power Scenario in the State


With the creation of Jharkhand State, the power generation capacity in State of Bihar has
been adversely affected. The major power generating stations under the state sector
at Patratu (840 MW units), Tenughat (420 MW units) and Sikidri (130 MW Hydel) are
1 The State Govt. of Bihar has raised the issue of dispute of ownership with the Govt. of India and

has also petitioned the Supreme Court under provisions of the Bihar Re-Organisation Act, 2000.

85

now located in the state of Jharkhand. While 70% of the generation capacity of erstwhile
Bihar has been shifted to the jurisdiction of state of Jharkhand, 70% of the load is left with
the present. Installed capacity (in MW) of Bihar Sector wise (as on 30.11.2012):

Ownership
Sector

Model wise Breakup

Grand
Thermal
Total
Nuclear
Hydro RES*
Coal
Gas
Diesel
State
210.00
0
0
0
0
66.30
276.30
Private
0
0
0
0
0
29.50
29.50
Central
1414.70
0
0
0
129.43
0
1544.13
Sub-total
1624.70
0
0
0
129.43
95.80
1849.93
* RES - Renewable Energy Sources include SHP, BP, U&I, Solar and Wind Energy
There are total 82 Grids in the state across 7 Transmission Circles. The 7 Transmission
Circles are as follows:
1. Patna Transmission Circle
2. Biharsharif Transmission Circle
3. Gaya Transmission Circle
4. Dehri-on-sone Transmission Circle
5. Muzaffarpur Transmission Circle
6. Purnea Transmission Circle
7. Bhagalpur Transmission Circle
The status of Transmission lines in the state are as follows:
Sl. No.
1
2
3

Type of Line
400 kV Line
220 kV Line
132 kV Line

Length (Kms)
75.00
1141.09
4357.18

AT & C Losses in the State: AT & C losses for Bihar state was 47.38 %, 34.37 % and 43.92
% respectively for FY 2007-08, 2008-09 and 2009-10. The Peak demand of Bihar state in
FY 2012-13 was 3000 MW whereas transmission capacity is 2600 MW & distribution
capacity is 2400 MW and the peak met was 1784 MW, the deficit of 40.53 %. Bihar has the
losses (on accrual basis) of Rs 1412 Crores during the year 2009-10 (as per PFC report).
The requirement of energy during financial year 2012-13 was 15,410 MU and the
availability was 12,835 MU.The energy deficit of 16.7%, which is very high and in the top
5 in all the states of India (as per CEA report).

86

Background of erstwhile BSEB


The erstwhile Bihar State Electricity Board was constituted under section 5 of the
Electricity Supply Act, 1948 vide Bihar Government's Notification No. 2884 A/AI121/57
dated 25th March, 1958 with effect from 1st April, 1958. The Board is a deemed licensee as
per the section 14 of the Act and is engaged in the business of generation, transmission and
distribution of electricity in the State of Bihar. In terms of Section 172 of the Act, the Board
constituted under the repealed laws shall be deemed to be the State Transmission Utility
(STU) and a licensee under the provisions of the Act for a period of one year from 10th
June 2003 i.e. the appointed date. On the request of Government of Bihar from time to time
Central Government has agreed to extend the time to continue the Board to function as a
STU and Distribution licensee. Last extension granted to the Board was up to 31.12.2010.
Unbundling of erstwhile BSEB
The erstwhile State of Bihar had been reorganized as per the Bihar Re-organisation Act,
2000 (Act no. 30 of 2000) and a new State of Jharkhand had been carved out of the State of
Bihar. Consequently, the Ministry of Power (MoP), Government of India (GoI), in view of
the power conferred to it vide sub-section (3) of section 62 of the Bihar Re-organisation
Act, 2000, issued a notification dated November 4, 2004 in respect of dissolution of the
erstwhile BSEB and apportionment of its assets, rights and liabilities between the successor
Electricity Boards of Bihar and Jharkhand.
After the enactment of the Electricity Act 2003, the Government of Bihar was required to
unbundle the BSEB into successor corporate entities towards meeting the challenges
resulting from the on-going power sector reforms and to enhance the efficiency and
effectiveness as per the requirements of the Electricity Act 2003.
In view of the above, the Energy Department, Government of Bihar (GoB) vide its
Resolution No. 3006 dated August 2, 2006 (read with Energy Department, GoBs
resolution no. 218 dated 31st Jan 31, 2006, no. 733 dated 3rd March, 2006 and no. 999
dated 6th March, 2012) had decided to form the following successor corporate entities
consequent to the re-organisation of BSEB:
(1) Bihar State Power (Holding) Company Limited (Holding company);
(2) Bihar State Power Generation Company Limited;

87

(3) Bihar State Power Transmission Company Limited;


(4) South Bihar Power Distribution Company Limited;
(5) North Bihar Power Distribution Company Limited;
with effect from 1st November 2012 vide notification no: 31/ 2008-17.
Bihar State Power (Holding) Company Limited means the Company that will own
shares of newly incorporated reorganized four companies i.e. Bihar State Power
Generation Company Limited, Bihar State Power Transmission Company Limited,
South Bihar Power Distribution Company Limited, and North Bihar Power
Distribution Company Limited
Bihar State Power Generation Company Limited means the Generating Company to
which the Generating Undertakings of the Board are to be transferred in accordance
with this Scheme
Bihar State Power Transmission Company Limited means the Transmission Company
to which the Transmission Undertakings of the Board are to be transferred in
accordance with this Scheme
South Bihar Power Distribution Company Limited & North Bihar Power Distribution
Company Limited, collectively mean the Distribution Companies, to which the
Distribution Undertakings of the Board are to be transferred in accordance with this
Scheme. The four area offices of erstwhile BSEB - PESU, Patna central, Magadh and
Bhagalpur - have been regrouped to form one company, i.e. South Bihar Power
Distribution Company Limited. Consequently, PESU (East), PESU (West), Patna,
Ara, Nalanda, Gaya, Rohtas, Bhagalpur and Munger circles will constitute the South
Bihar Power Distribution Company Limited. Three area offices - Tirhut, Mithila and
Kosi - have been combined to form another company, i.e. North Bihar Power
Distribution Company Limited. Consequently, Muzaffarpur, Chhapra, Motihari,
Darbhanga, Samastipur, Saharsa and Purnia circles will come under the North Bihar
Power Distribution Company Limited.
Operationalization of New Entities
Energy Department, Govt. of Bihar vide its Notification No. PR/Board Punar no-31/2008
(Vol-I) 17 dated 30.10.2012 has issued the Bihar State Electricity Reforms Transfer
Scheme, 2012 for providing and giving effect to the transfer of properties, interests, rights,

88

assets, liabilities, obligations, proceedings and personnel of Bihar State Electricity Board to
the successor companies.
The Scheme has come into force with effect from 01.11.2012 and on the expiry of the
period of one year, the transfer of undertakings, properties, interests, rights, assets,
liabilities, personnel and proceedings made in accordance of the scheme shall become final.
All the successor entities have commenced their operation since then and the transfer of the
assets and employees is ongoing under the committees formed by Bihar State Power
(Holding) Company Limited.
Constitution of Distribution Companies
As per the notification, the Distribution assets of the erstwhile Bihar State Electricity Board
have been transferred to the two distribution companies North Bihar Power Distribution
Company Limited and South Bihar Power Distribution Company Limited.
Constitution of two distribution companies as mentioned above is based on grouping of
seven area offices. As such from area level and below there is no change from the existing
system. In the existing seven areas include 16 circles, which are shown in a tabular form
below:
Area Board

Electric Supply Circle


1. PESU East

PESU
2. PESU West
1. Patna
Patna Central

2. Bhojpur (Ara)
3. Nalanda
1. Gaya

Magadh
2. Rohtas
1. Bhagalpur
Bhagalpur
2. Munger
Tirhut

1. Muzaffarpur

89

Area Board

Electric Supply Circle


2. Chapra
3. Motihari
1. Darbhanga

Mithila
2. Samastipur
1. Saharsa
Kosi
2. Purnea
The four area offices i.e. PESU, Patna central, Magadh and Bhagalpur have been regrouped
to form one company, i.e. South Bihar Power Distribution Company Limited. PESU (East),
PESU (West), Patna, Ara, Nalanda, Gaya, Rohtas, Bhagalpur and Munger constitutes the
South Bihar Power Distribution Company Limited. The three area offices i.e. Tirhut,
Mithila and Kosi Areas are combined to form another company, i.e. North Bihar Power
Distribution Company Limited. Consequently Muzaffrapur, Chapra, Motihari, Darbhanga,
Samasthipur, Saharsa and Purnea Circles are automatically combined within the company
North Bihar Power Distribution Company Limited.
Apart from these circles there are seven pole factories and seven TRWs (Transformer
Repair Workshops) which provide the support services to the distribution system. However,
with the existing practice, Head of the pole factory and transformer repair workshop report
directly to Head-Quarter and they are not directly a part of the distribution system. The
existing TRWs and pole factories have been allocated to the Discom in the respective
jurisdiction. The final shape of the distribution companies is shown in a tabular form.
Distribution Company

Circles and other establishment


Electric Supply Area: Kosi (Saharsa)
Electric Supply Circles: Saharsa, Purnea

North Bihar Power


Distribution Company
Limited

TRW: Katihar, Saharsa


Pole Factory: Katihar
Electric Supply Areas: Tirhut (Muzaffarpur), Mithila
(Darbhanga)
Electric Supply Circles: Muzaffarpur, Motihari, Chapra,

90

Distribution Company

Circles and other establishment


Darbhanga, Samastipur
TRW: Muzaffarpur, Darbhanga
Pole Factory: Madhopur, Khabra.
Electrical Supply Area: Central (Patna), PESU (Patna)
Electric Supply Circles: PESU (East), PESU (West), Patna,
Bhojpur (Ara), Nalanda (Biharsharif)
TRW: Patna
Pole Factory: Patna and Ara

South Bihar Power


Distribution Company
Limited

Electric Supply Area: Magadh (Gaya)


Electric Supply Circles: Gaya, Rohtas (Sasaram)
TRW: Gaya
Pole Factory: Barun, Dandibagh (Gaya)
Electric Supply Area: Bhagalpur
Electric Supply Circles: Bhagalpur, Munger
TRW: Bhagalpur

The main functions and duties of both the distribution companies in their respective license
areas are as follow:(a) To undertake the activities of distribution to all consumers irrespective of the voltage,
provision, supply, wheeling, purchase, sale, import, export and trading of electricity,
introduce open access in distribution as per the Electricity Act 2003 and/or the
directions of the regulator.
(b) To plan, develop, acquire, establish, construct, erect, lay, hire, lease, buy, sell, operate,
run, manage, maintain, enlarge, alter, renovate, modernize, work and use a power
distribution system network in all its aspects including amongst others various voltage
lines and associated sub -stations, including distribution centres, cables, wires,
accumulators, plants, motors, meters, apparatus, computers and materials connected
with sub -transmission, distribution, supply of electrical energy, ancillary services,
telecommunication and telemetering equipments.

91

(c) To tender, finalise and execute Power Purchase Agreements and other agreements for
sale or purchase of electricity with generating companies, trading companies, other
distribution companies, Central and State generating authorities, departments or
companies, societies, other States, utilities, Independent Power Producers and other
Persons.
(d) To undertake Rural Electrification schemes in the licensed area.
Status of power sector in the state
The state of Bihar has been on a path of growth since the last few years. The developmental
activities in the various sector in the state has resulted in impressive growth rate of the state.
In the 11th Plan period against the all India growth rate of 7.94 percent, Bihar achieved a
growth rate of 12.08 percent at constant prices. The primary sector of the state is
experiencing a decline in the share of states gross domestic product from 37.49 percent
in 2000-01 to 18.12 percent in 2011-12 (adv). This is due to the developments in the
secondary sector. In the last six years the demand of the state has grown at a compounded
annual growth rate of about 8 percent. The gap between demand and supply was highest
during 2009-10 at 32.9 percent (720 MW)2. This gap has reduced in the year 2011-12 to
15.5% owing to the short and medium term purchases by erstwhile BSEB. In addition to
augmentation of the capacity in generation, the state is working towards increasing the
availability of transmission lines and improving the distribution network infrastructure.
Peak Demand and Peak Demand Met in
(MW) for Bihar
2500

2249
1882

2000
1500
1000

1399

2057

1659

1738

1842
1509

1243

2140

Allocations of Power for Bihar in FY


2012-13
BSEB
8%
ST/MT
17%

1333

1162

NTPC
54%

Others
3%

500

PTC
13%

0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Peak Demand (MW)
Peak demand Met (MW)

NHPC
5%

(Source: BERC Tariff Order FY 2012-13)

(Source: CEA Annual reports)

2 CEA, Annual Reports

92

There has been a steady rise (Rs 2.25 per unit at 11.1 percent CAGR) in Average Billing
Rate during FY 2005-06 to FY 2011-12. For FY 2011-12, Commercial categories of
consumers had the highest Average Billing Rate.
Growth of energy sales (MU)

Growth in Consumer numbers

100%

4,500,000
4,000,000

80%

3,500,000
60%
3,000,000
40%

2,500,000

20%

2,000,000
1,500,000

0%
1,000,000
500,000
Domestic
Public Lighting
Public Water Works
Industrial H.T.
Inter State

Commercial
Irrigation & Agriculture
Industrial L.T.
Railway

(Source: erstwhile BSEB Annual reports)

(Source: erstwhile BSEB Annual reports)

The three major categories of consumers in terms of energy sales are domestic, Industrial
HT and interstate sales. Industrial and Domestic consumers contribute to about 50% of the
total sales.
Transmission and Distribution Loss of the Board for FY 2011-12 was 44.05 percent. This
value is higher than the target fixed by the Regulatory Commission. The Board is making
efforts to reduce the losses. The Capex works planned in the MYT period from FY 2013-14
to FY 2015-16 are aimed to reduce the losses of the Board.
Issues in Distribution: The distribution system is going through a transition phase, on one
hand it is trying to meet its financial requirement along with increasing accumulated losses
and on the other hand it is investing in capital projects.

93

Figure 3: Issues in Distribution function of erstwhile BSEB

The factor responsible for the current status of power sector in Bihar can be summarized as
below:
Inadequate investment on transmission and distribution, particularly in subtransmission and distribution. While the desired investment ratio between generation
and T&D should be 1:1,
Low investment has resulted in overloading of the distribution system without
commensurate strengthening and augmentation.
Haphazard growths of sub-transmission and distribution system with the short-term
objective of extension of power supply to new areas.

Large scale rural electrification through long 11kV and LT lines.

Too many stages of transformations.

Improper load management.

Inadequate reactive compensation

Poor quality of equipment used in agricultural pumping in rural areas, cooler airconditioners and industrial loads in urban areas.

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

94

Non-installation of sufficient capacitors

Low metering/billing/collection efficiency

Demand Projections
The state is going through a rapid economic expansion phase. The power sector of the state
has to grow at a similar pace in order to cater to the growing need of the state.
Table 1 Trend of Peak Demand and Peak Demand Met (in MW)
2006-07 2007-08 2008-09 2009-10 2010-11
Peak Demand (MW)
1399
1452
1482
1509
1882
Peak demand Met
1162
813
973
769
1401
(MW)

2011-12
2192
1873

As the current supply is under constraints hence, the current peak demand will see atleast
two-fold rise in the coming years. The following targets are planned for the state of Bihar as
available form MoM of 18th EPS

Achieving per-capita electricity consumption of 770 units

Electrification of Additional 17,000 villages

Capacity addition programme of 6600 MW up 2015-16 and 14000 MW by 2016-17.


Table 2 18thEPS projections for Bihar State
18th EPS Projections
2012-13
2013-14
2014-15

2015-16

Peak Demand (MW)

2642

3194

3873

4472

Energy requirement
(MU)

16389

19478

23214

26330

2017-18
5108
(Revised
5620)
29539

Using the plan for capacity augmentation and energy availability, Peak demand and Peak
Demand met, projections for FY 2012-13 to FY 2015-16 shows that the gap between
demand and supply will reduce It can be seen that the gap will reduce and the state will be
able to meet its peak demand by 2015-16.

95

Ongoing Scheme in State


Rajiv Gandhi GrameenVidyutikaran
Yojana Rajiv Gandhi GrameenVidyutikaranYojana is aimed at building rural electricity
infrastructure and household electrification towards the National Common Minimum
Programme goal of access to electricity for all. Under the scheme, 90% capital subsidy is
provided by Government of India for overall cost of projects. In Bihar, under this scheme
total number of DPRs are forty three (43), and total amount released is Rs. 3886.7 crores.
About 30% of the target connections in rural areas including BPL households have been
achieved and the remaining work is in progress.
R-APDRP
In R-APDRP scheme it is proposed to cover urban areas - towns and cities with population
of more than 30,000 (10,000 in case of special category states). In addition, in certain highload density rural areas with significant loads, works of separation of agricultural feeders
from domestic and industrial ones, and of High Voltage Distribution System (11kV) will
also be taken up. In order to improve operational efficiency, reliability and quality of
services to be provided to their valuable consumers, BSPHCL intends to take up
distribution reforms under R-APDRP Scheme in 11th Five Year Plan launched by Ministry
of Power, Govt. of India to reduce Aggregate Technical & Commercial Losses.
The R-APDRP primarily aims at reducing Aggregate Technical and Commercial (AT&C)
losses
Feeder Segregation
Feeder Segregation Project is underway to separate agricultural Consumers from non
agricultural consumers. This will help in proper utilization of total energy available .Also; it
will enhance the per capita energy consumption of Bihar. The main objective is to provide
assured and quality supply of power for the agricultural purposes in rotational manner for
specified hours of the day. It has already started in Patna district as a pilot project.
Before finalization of this DPR all other major ongoing schemes under RGGVY, RAPDRP, ADB, FSS and other state schemes have been considered.
Integration has been done of all the schemes with load growth before finalization of the cost
estimate for this DPR.

96

BRGF- Phase-1
Backward Region Grant Fund is the scheme which is meant for development of backward
region at Panchayat and Municipal level so that it will strengthen the existing infrastructure
of this backward region. The main purpose of this scheme is to provide electricity to every
households of backward region.
Under phase I of the BRGF scheme, SBPDCL has decided to focus on the removal of
immediate distribution constraints so as to able to meet the peak load requirement of FY
2013-14 by strengthening the distribution network.
In this regard, for system strengthening & removal of distribution constraints to cater the
peak load requirement of 2013-14 of South Bihar, an scheme and DPR with project cost of
Rs. 1252.90 Cr. under Phase-I has been posed for sanction under BRGF out of which Rs.
968.86 Cr. has been recommended by CEA vide CEA Letter No. CEA/ DPD/ Bihar (DPR)
2013/ 873 dated 12th June 2013. Post implementation of this scheme, the system would
able to cater the peak demand of FY 2013-14.
BRGF Phase II
SBPDCL has planned to strengthen the distribution network to meet the peak load of FY
2016-17. Further, for strengthening of power distribution system under South Bihar to cater
the projected requirement of load growth as projected in 18th EPS which is 3500 MW
(5620 MW for entire state of Bihar) by FY 2016-17 has been worked out and a DPR with a
cost estimate of Rs. 1938.52 Cr. under phase-II has been prepared which is in addition to
the CEA recommended cost of Rs. 968.86 Cr under Phase-I making total cost of Rs.
2907.38 Cr. under Phase-I and Phase II.
The action plans for strengthening of Power Distribution system to meet the projected load
growth for FY 2016-17 has been prepared in line with the CEA recommendation. The main
features and system capacity addition covered under BRGF-II is as below:

New 33 kV lines and strengthening of existing 33 kV feeders;

Additional PSS/Augmentation of existing Power Sub Stations capacities;

Strengthening of protective systems in Power sub- stations;

Provision of capacitor Banks in selected Power Sub stations;

New 11 kV lines & strengthening of existing 11 kV feeders;

97

Sectionalisation of 33 kV & 11 kV lines and provision of fault passage indicators

(F.P.I.);

Additional D.T./ Augmentation of existing Distribution Transformer capacities;

Strengthening of L.T. lines (removal of Bans- Balla);

Use of phase separators in L.T. Lines & Guard wires in H.T. lines;

Recommendations to the North & South Bihar Power Distribution Co.Ltd.were :


New 33 kV lines and strengthening of existing 33 kV feeders;

Additional PSS/Augmentation of existing Power Sub Stations capacities;

Strengthening of protective systems in Power sub- stations;

Provision of capacitor Banks in selected Power Sub stations;

New 11 kV lines & strengthening of existing 11 kV feeders;

Sectionalisation of 33 kV & 11 kV lines and provision of fault passage indicators

(F.P.I.);

Additional D.T./ Augmentation of existing Distribution Transformer capacities;

Strengthening of L.T. lines (removal of Bans- Balla);

Use of phase separators in L.T. Lines & Guard wires in H.T. lines;

Estimated yield from the Project and Economic Implications:


This investment is designed to remove future constraints and to meet forecasted demand
growth (2016-17) through capacity augmentation and loss reduction, and a tariff regime that
recognizes actual and reasonable operating costs and encourages efficient use of capital.
Further, the investment would reap the following benefits:

AT&C loss reduction

Reliability enhancement

Meet the Load growth

Enhance the electrical Infrastructure

For each of the bundles, the benefits have been translated into electrical energy savings or
commercial savings may be allocated to the following heads:

Technical loss reduction/ savings in energy purchased from Transmission Company

98

Technical loss reduction / savings in energy purchased from Transmission Company will be
achieved through in a big way through up-gradation & strengthening of distribution system.
Increased number of 33 kV and 11 kV feeders will not only reduce the overloading of
existing feeders but also reduce the technical losses in a big way. The installation of
additional DSS in the mids of the load center will improve the HT to LT ratio thereby
reducing the major technical losses occurring in LT system.

Commercial loss reduction

Provision of full scale consumer metering with quality meter will reduce the commercial
losses taking place in meter reading. Provision of system metering and ABC in LT network
will reduce the theft in a bog way and provide a tool for reduction in commercial losses.

Increase in reliability & Safety

Enhanced capacity

Due to above measures as proposed under this scheme coupled with strong administrative
measures and changing scenario, it is expected that the project will yield good dividend both
in form of reduction in AT&C losses and providing quality and reliable power supply to the
consumer by bringing the failure rate of DTs and PTs and break downs of 33 kV, 11 kV and
LT lines.

Program Schedule

The Project programme is to study the existing system regarding constraints in the
Distribution system and to develop the infrastructure to reduce the constraints in the
Distribution of the electricity with in time frame of 2 years.
The estimate has been finalized on the basis of the discussion and the data received from
Section, Sub-Division, Division and Circles. All the distribution constraint inputs have been
taken care before finalizing the estimate cost. From this estimated cost, peak load

99

requirement of 3000MW of load for year 2012-13 and expected peak load during 2013-14
will be met for infrastructure would be laid down & in next two years the reliability issues in
distribution sector may be sorted out.
The maximum time for the execution of this work has been decided for two years from the
date of the approval of this DPR.
After the approval of DPR,BSPHCL may go for tender and after the finalization of vendor
work could be started and completion period would be two and half years.
The benefit of this scheme will come after the energization of the proposed network. This
will come in terms of revenue collected due to improvement of the system reliability index
(e.g. SAIFI and SAIDIetc), AT &C Loss reduction and capacity addition.

2.4.Expenditure Involved
Total Budget involved in this scheme is 138 crores for next two years. This fund may be
approved through BRGF.

As the Bihar government has budget constraints,hence this amount has not covered in any
state annual plan.All the cost estimates has been taken from approved BSHPCL SOR
(Schedule of Rate).

Reliability of Cost Estimates and other parameters:

The Pre-Project Investigation was carried out in details aselaboratedbelow to achieve the
objective of the project as described below:

(i) Capacity Addition

Establishing new 33/11 kV sub-stations


Providing additional Transformers in the existing 33/11kV Sub-Stations

100

Enhancing the capacities of existing 33/11 kV sub-stations


Providing additional 33kV feeders, and bifurcation of existing feeders
Providing additional 11kV feeders and bifurcation of existing feeders
Reconductoring of 11kV Lines
Reconductoring of 33Kv Lines
Providing additional DTs at overload centers

(ii) Approach and Methodology

During Proposing the

removal of distribution constraint in the system, the first and

foremost work is to study the existing system, present status and immediate action to be
taken to meet the requirement of consumers, to provide un-interrupted and quality supply to
the consumers. In present scenario, it has been noted that in distribution system is loaded
much more than their rated current carrying capacity resulting to failing of the Distribution
System and inadequate electrical Infrastructure to provide electric supply to consumers .

Following activities were performed to collect the broad base data, for study and design to
achieve the target of removing distribution constraints in two year time period

(a) Study of Existing Load Data


(b) Study of existing Load carrying capacity of the conductor
(c) Future load growth study
(d) Study of capacity met by the upcoming schemes i.e. RGGVY. R-APDRP
(e) Study of thermal capability of conductors - capacity of feeders/circuits
(f) Economic Impacts
(iii) Planning Criteria & Design Approach
(a) Survey
The survey of all the networks viz. 33kV, 11kV and 415V were carried out. All the
information in the field during survey used to be recorded in the field registers including
indicating the land marking of DTs etc.
(b) Study of Existing System and Designing of Upgradtion System

101

Based on the network created for the existing system, analysis of losses and voltage
regulations were made. The standard formulae and Calculation system is adopted for study
and improvement. The study is made for following conditions.

(c) Existing System Status with existing load demands

The voltage regulation at 33kV to LT System is calculated. To arrive at it, all DTs and all
feeders under 33/11kV substation feeding the project area is considered. This provides the
base for assessing and estimating all future improvements that are feasible both for the
present and the future. It also indicates the areas which need improvements/strengthening or
modifications.

(d) Existing System Status with horizon load demands

The horizon year is the period up to which the impact or the targets of the
improvements/strengthening and are to be felt, based on a projected 5% (approximate) load
growth per year and identifies the critical areas to be addressed. Five years period has been
taken in this project. The voltage regulations at 33kV to LT system under Existing
infrastructure with horizon load are calculated. The area which needs improvement /
Strengthening or modification is studied.

Before finalization of this cost estimate all the parameters have been taken care off. Schedule
of Rate of BSPHCL and other state utilities has been considered before finalizing this project
estimate.

Operational capabilities

The company is developing its own operational capabilities and as per requirement is taking
the services of project Management Consultant for successful execution of the project.

This project will be implemented by inviting a tender on turnkey basis, due to nonavailability of funds tender has not been floated.

102

Viability

Cost benefits for this investment justify the Capex vis--vis to the benefits accrued out of the
scheme. With new scheme there will be substantial reduction in AT&C losses and the system
performance and system utilization will be better that will contribute to revenue and project
benefits.
The prime benefits out of the scheme shall be accessed based on the following results:
a) Reduction in technical & commercial losses of the new system. Comparison of system
losses between existing & new system will be used as a parameter for benefit accrued out
of this project. The increase in revenue due to the savings by reduction in T&D losses on
the purchase of energy shall be evaluated at the energy sale rate of the utility.
b) The increase in revenue due to sale of energy by capacity addition of substation will also
contribute towards energy benefit.
c) Sale of energy due to reduction in outages due to system breakdown & system failures.
d) With the new system O&M cost will reduced and reduction in O&M cost will also
constitute to the energy benefit.

103

ANNEXURES

104

ANNEXURE1
Information Technology Implementation Questionnaire
BSES Delhi
PART-A {METERING (AMR)}
Q 1. What is the procedure of
metering?
Automat
a. Manual
b. ed
Q 2. If automated, which categories of consumers are covered?
H
Commerc
a. T
b. ial
Please
Elaborate
NA
Q 3. What type of Automated
metering it is?

c. Every consumer
(including LT)

Onlin
a. e
b. Offline
Q 4. What is the mechanism of data collection of Energy consumption & what is the
Architecture?
Centraliz
RTU (Remote Terminal
a. ed
b.Units)
Q 5. What type of Communication technology is being used?
CDM
a. A

b.

GPR
S
i.

c.
PLCC
Circuit
Switching

Packet
ii. Data
Working on PLCC Project to test the feasibility
Q 6. How you connect your consumers to data centre for gathering Energy Consumption
details?
There are AMR enabled meters with GSM / CDMA supported installed at consumer
premises. The servers at our data centre gather the real time data for billing and load
survey from the meters using the type of technology installed automatically. The data is
then transferred to SAP for billing and further analysis.
Q 7. How do you utilize the data gathered from the AMR system?
Billing & demand forecasting
Q 8. How is the data consolidated at the MBC software?
SAP PI, SAP ISU, SAP BW and in house developed solution is used.

105

Q 9. What are the major modules implemented under this solution and what features does it
have?
SAP Billing & Invoicing, Device management, Customer services, EDM, HR
Network Diagram
a. representation

f. System topological
information

Remote
b. monitoring

Report generation and


g. Printing

Alarm
c. generation

Real Time
h. monitoring

Editing
d. feature

i. Load Shedding

Customizi
e. ng
Q 10. What is the software platform used
for MBC?
a. Microsoft

b. Oracle

j. Any other feature

SA
c. P

Q 11. Have you ever used any MBC solution before the present one?
a. Yes
b. No
Q 12. If Yes, What was that, and reason to change from that?
For better integration & move with the industry standards.
Q 13. How has the new solution benefitted the DISCOM and Consumers?
It facilitated us with greater system control and monitoring
Single integrated solution helps in easy maintenance, information review and
better management
Easy Integration with GIS & SCADA
Q 14. What are the additional features and envisage in the solution?
NA
Q 15. What are the Major modules implemented under this solution?
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.

Master Data and Basic Functions


Customer Services
Work Management
Device Management
Billing & Invoicing
Energy Data Management
Contract Accounts
CRM Customer Relationship Management
BW Business Warehouse.
Any Other

106

Q 16. What type of further improvement would you like to see in this field?
NA
PART-B (BILLING)
Q 1. What is the procedure of billing?
a. Manual

b. Automated

Q 2. How can the Consumers access their bills?


a. Door delivery
b. Online
c. Mail / Post
d. Any other
i. Spot billing and mobile collection facility
ii. SMS
Q 3. What is the consumer base catered under this solution?
a. LT/HT & Key Consumers
b. SLCC Consumers
c. Government Consumers
Q 4. What type of further improvement would you like to see in Billing Solution?
AMI and Smart Grid will be the next step ahead
PART-C (COLLECTION)
Q 1. How does a consumer can pay their bills?
a. Cash Payment Counters
b. Cheque Drop Box
c. Online Payment Credit/Debit/Net-Banking
d. If Card Payment Types of Cards Accepted Master/Visa/Maestro/American
Express/Any Other
e. Direct debit from bank accounts
f. Mobile Collection Centers
g. Kiosk ATPM M/C,s
h. JEEVAN Counters
i. And Many More
Q 2. How it is integrated with other Modules?
The modules are integrated via SOA.

107

Q 3.How is the collection efficiency improved since the implementation of this system (in
%)?
Not Available
Q 4. What type of further improvement would you like to see in this field?
Not Required

108

TPDDL Delhi
PART-A {METERING (AMR)}
Q 1. What is the procedure of
metering?
Automat
a. Manual
b. ed
Q 2. If automated, which categories of consumers are covered?
H
Commerc
a. T
b. ial
Please Elaborate.

c. Every consumer
(including LT)

Connections above 10 KW are AMR enabled. Currently 50,000 AMR enabled consumers.
Q 3. What type of Automated metering it is?
a. Online

b. Offline

Q 4. What is the mechanism of data collection of Energy consumption & what is the
Architecture?
Centraliz
a. ed

b. RTU (Remote Terminal Units)

Q 5. What type of Communication technology is being used?


d. CDMA

b.

GPR
S
i. Circuit Switching

c.
PLCC

Packet
ii. Data
Q 6. How you connect your consumers to data centre for gathering Energy Consumption
details?
There are AMR enabled meters with GSM supported SIM cards placed at consumer
premises. The central communication servers present at our data centre gather the billing
and load survey details from the meters via GSM technology and capture the information
on a periodic basis which is auto scheduled. The data is then transferred from
communication server to meter data server and further to SAP ISU for billing and SAP
BW for analysis.
Q 7. How do you utilize the data gathered from the AMR system?
The Billing and load survey data gathered from AMR meters is used for Billing and
analysis [tampering etc.]

109

Q 8. How is the data consolidated at the MBC software?


SAP PI, SAP ISU, SAP BW and home grown framework CFW is used.
Q 9. What are the major modules implemented under this solution and what features does it
have?
SAP Billing & Invoicing, Device management, FICA, Customer services, UCES
f. Network Diagram representation

f. System topological
information

g. Remote monitoring

Report generation and


g. Printing

h. Alarm generation

Real Time
h. monitoring

Editing
i. feature

i. Load Shedding

Customizi
j. ng
What is the software platform used
Q 10.
for MBC?

j. Any other feature

Micros
SA
a.oft
b. Oracle
c. P
All the meter APIs provided by vendors are used in the home grown application called
CFW which is in
Microsoft platform. The billing engine, analysis and reporting is in SAP
Q 11.
a. Yes
Q 12.

Have you ever used any MBC solution before the present one?
b. No
If Yes, What was that, and reason to change from that?

The earlier solution was on home grown billing system called DEBS. But we have
migrated to SAP ISU for better integration & scalability needs.
Q 13.

How has the new solution benefitted the DISCOM and Consumers?

New SAP based solution has empowered consumers with better real time online
facility to check their customer account details via website
It has helped the DISCOM to introduce facilities like TOD [Time of day]
billing, fuel surcharge, etc.
Single integrated solution helps in easy maintenance , scalability and better
management
Easy Integration with OMS & GIS
Q 14.
What are the additional features and envisage in the solution?
UCES [Utility consumer e-services] is an additional module of SAP that has been
implemented for providing all facilities to consumer to request for new connection,
attribute change [name/address etc.] , load change and much more other than restricting
them to bill payment related activities.

110

Q 15.

What are the Major modules implemented under this solution?


e.
f.
g.
h.
i.
j.
k.
l.
m.
n.

Q 16.

Master Data and Basic Functions


Customer Services
Work Management
Device Management
Billing & Invoicing
Energy Data Management (partially)
Contract Accounts
CRM Customer Relationship Management
BW Business Warehouse.
Any Other
i. UCES for customer e-Services
What type of further improvement would you like to see in this field?

Proper Implementation of Business analytics via SAP BO [Business Objects]


Work Clearance Management
Energy Data Management.
PART-B (BILLING)
Q 17. What is the procedure of billing?
a. Manual

b. Automated

Q 18. How can the Consumers access their bills?


a. Door delivery
b. Online
c. Mail / Post
d. Any other
i. Spot billing and mobile collection facility
ii. SMS
iii. ATPM M/Cs, Touch Screen Kiosks
Q 19. What is the consumer base catered under this solution?

o. LT/HT & Key Consumers


p. SLCC Consumers
q. Government Consumers
Q 20. What type of further improvement would you like to see in Billing Solution?
Mobile application, AMI / Smart Grid

111

PART-C (COLLECTION)
Q 5. How does a consumer can pay their bills?
j. Cash Payment Counters
k. Cheque Drop Box
l. Online Payment Credit/Debit/Net-Banking
m. If Card Payment Types of Cards Accepted Master/Visa/Maestro/American
Express/Any Other
n. Direct debit from bank accounts
o. Mobile Collection Centers
p. Kiosk ATPM M/C,s
q. JEEVAN Counters
Q 6. How it is integrated with other Modules?
Built in integration between all modules of SAP with
necessary customization SAP PI is used to integrate with
external systems.
Q 7.How is the collection efficiency improved since the implementation of this system (in
%)?
The collection efficiency has been improved by _20_ % since the implementation of SAP
ISU since Apr 2011
Q 8. What type of further improvement would you like to see in this field?
Payment through smart phones, ATM counters of banks are in progress

112

ANNEXURE2
Area of Supply

13

13

Tata Power DDL was previously NDPL (North Delhi Power Limited)

113

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