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11
P r a b h a k a r Ta n d o nH e a d B u s i n e s s D e v e l o p m e n t
S e c u r e M e t e r s L i m i t e d
P r a b h a k a r . t a n d o n @ s e c u r e t o g e t h e r . c o m
Distribution Reform-A different Approach
22
Some Known Facts
India has per capita consumption of 1015 units which is among the lowest levels in the world.
Average business connection days in India is very high as compared to global standards.
About 300 million citizens in India live without electricity.
Business operation of most of the small scale industries suffer because of the electricity as a major constraint.
Agricultural consumption is largely unmetered and charged estimated rates, losses in other segments are often included in agricultural consumption numbers.
Power outage is a concern in most of the cities
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Reform Actions by Government in last 10years
APDRP
RAPDRP
FRP
Model State Electricity Distribution Reform Management Bill
Proposed amendment in Electricity Act & Tariff Policy
IPDS
DDUGJY
Smart Grid and Smart Metering program
UDAY-Ujjawal Discom Assurance Yojana
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Issues
Organizational Governance
Customer dis-satisfaction
Increased debts
Unaccountable business processes
Poor maintenance of distribution assets
Timely implementation of large scale programs
Inadequate purchase processes
Lack of service culture
High Operating Expenses
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Present focusShift in focus
Utilities
Investments
RegulationGovernment
Customer
Utility
RegulationGovernment
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Customer Centric
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Results
People
Technology
Process
How to achieve?
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.
People
Process
Technology
Utility
replace metering prepay
systemssimple
& IT supporte
d processes
simplify billeasy to
understand
QA process
24x7 call center
updated & correct database
electronic reading
only
energy accounting
customer education
public relation
focus high value
customers
transparencyservice levels
solid team
multiple payment options
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Prime Focus Areas
Achieve Customer Service
Excellence
Reduce Aggregate AT&C
loss
Improve Power Purchase
Reduce Cost to Serve
Precise Government and
Regulatory intervention
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Achieve Customer Service Excellence
Door step services for release of new connections.
Urban Outages to be fixed within 30minutes of reporting.
All Billing and Payment related queries to be handled by Contact center.
Safety related compensation to be settled in one day.
Participation of Private sector contractors
Effective long term contracts with incentive and penalties on published SLAs.
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customer service
engaging & building trust
customer centric
IT driven solutions
customer education
transparent service levels
simplify processes
customer contact centers
multiple payment options
Solutions
(process)
(technology)
Improvement
How?
customer service culture
effective processes
(people)
Happy end users
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Reduce Aggregate AT&C Loss
Deliver timely, accurate and verifiable bills to high value customers
100% High value customers have functioning metering systems
Urban domestic consumers have pre-payment metering system with multiple vending options
100% Agricultural consumers have pre-payment metering system with subsidy disbursement regime
Regular system asset maintenance
Holding people accountable for losses
Outsourcing of MBC
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reduce losses
solid team, trained accountable staff
reliable & accurate meters
leverage experience
management quality
energy accounting
credit meters
prepayment meters
Solutions
(Process)
(Technology)
Improvement
How?
metering, billing, collection
(People)
DT metering
Happy end users will guarantee
financially strong Discoms
adopt best practice
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Reduce Cost to Serve
Development of strategic plan
Reduction in expenses of maintenance and replacement of assets
Improvement in procurement processes of discoms
Reduction in opex through accountable IT enabled business processes
Focus on timely delivery of services
Buying practices should factor the life time cost of buying decision
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Government and Regulatory intervention
Long tenure leaderships
Independent functioning of Regulator
Regulatory watch and control on the quality of assets procured by discom
Regulatory initiative and monitoring to adopt SLA based business processes by discoms along with relevant consumer compensations
Agricultural metering and subsidy transfer through DBT scheme
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The roadmap
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Case Studies
Results
People
Technology
Processes
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West Bengal, India
Results
People
Technology
ProcessesWest Bengal
WB achieved a swing of $300m USD per year in their balance sheets by investing in energy accounting and then
holding staff accountable for results.
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New Delhi, India
Results
People
Technology
Processes
New DelhiNo one in the world has reduced as much losses (from
53% down to 15%), or as fast as the three Delhi discoms. Underlying that success is a solid focus on processes &
people.
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Results
People
Technology
ProcessesManipur
With the Chief Minister and MD taking personal interest, Manipur changed its processes to adopt prepayment
metering with spectacular success of revenue realization.
Manipur, India
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Government and Regulatory intervention
Metering customer and network helps determine the facts against which individuals can be held to account
Reducing cost to serve will directly contributes to health of Discom.
Outsourcing of MBC to reliable contractor may bring drastic improvement in revenue and processes.
Asset based funding should be done with asset provider responsible for maintaining the asset for minimum 10 years
Stringent SLAs with asset provider will help improving the quality of assets and services.
Asset purchase should be done through Quality and Cost Based Selection Process
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Conclusion
Metering customer and network helps determine the facts against which individuals can be held to account
All meters should be read electronically
Reducing cost to serve will directly contributes to health of Discom
Outsourcing of MBC to reliable contractor may bring drastic improvement in revenue and processes
Asset based funding should be done with asset provider responsible for maintaining the asset for minimum 10 years
There is need for review of performance management System of Discom
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Thank you
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