BESCOM Business Plan for2014-2018bescom.org/wp-content/uploads/2013/01/Business-plan.docx · Web...

BESCOM Business Plan for2014-2018

BUSINESS PLAN OF BESCOM

2014-2018


MISSION

The mission of BESCOM is to ensure complete customer satisfaction by providing its customers quality, reliable power at competitive rates.

BESCOM is set to achieve this mission through:

• Best practices in the construction and maintenance of distribution network

• High standards of customer service• Optimum usage of technical and human resources

Executive Summary


The dominant function of BESCOM is the distribution of Electricity in its designated area.

Power is purchased from generating companies like Karnataka Power Corporation Ltd.,

Central Generating Companies, Independent Power Producers (IPPs),at the agreed rates

and sold to different categories of consumers at the rates determined by the Karnataka

Electricity Regulatory Commission. The following chain of offices has been established to

enable BESCOM to attend to the needs of consumers in terms of servicing of installations,

collection of revenue, maintenance of11KV lines and distribution transformers, attending

consumer complaints and augmentation of infrastructure etc.:

Bangalore Electricity Supply Company Limited (BESCOM), a Govt. of Karnataka enterprise,

was founded in June 2002, with the objective to providing quality and reliable power at a

competitive price to consumers in the 8 districts under its jurisdiction. Since then, it has

harnessed technological innovations and initiated other reforms in the power sector

towards the objective of ensuring better connectivity. At

the same time it has also introduced measures such as e-Tendering, Spot Billing, Micro-

feeder Franchisees, etc., to help improve functioning in both urban and rural areas. In other

words, BESCOM has been striving to light up more lives while maintaining the highest

standards in customer service.

Sl. No Particulars Statistics

Position as on 30-09-2012 1 Area Sq.km. 410922 Districts Nos. 83 Population lakhs 2074 Zone Nos. 3

5Sub-stations (220, 110 & 66 KV) (All maintained by KPTCL)

Nos.410

6 DTCs Nos. 1699547 HT lines ckt. kms. 782628 LT lines ckt. kms 1541209 Total employees strength: A Sanctioned 16902B Working + majdoor 10574

10 Demand (FY-12)(excld. Other income) Rs. in Crs 9405

11 Collection (FY-12)(excld. Other income) Rs. in Crs 8851


Distribution Area:

BESCOM a Government of Karnataka enterprise, having Eight Districts under its

jurisdiction and has got offices at various places, which are listed below:


BESCOM Zones Circles Divisions Sub Divisions

C, O & M Sections

3 Zones 7 Circles 26 Divisions

106 Sub Divisions

432 C, O & M Sections

CEs. SEEs EEs AEEs

BESCOM Operational Structure

BESCOMBangalore Metropolitan Area ZoneNorth5 Divisions18 Sub DivisionsSouth3 Divisions12 Sub DivisionsEast3 Divisions11 Sub DivisionsBangalore Rural Area ZoneBRC4 Divisions16 Sub DivisionsKolar4 Divisions16 Sub DivisionsChitrdurga Area ZoneTumkur3 Divisions16 Sub DivisionsDavanagere4 Divisions17 Sub DivisionsCommercial

, Operation

&

Maintenanc

e Sections


Zonal Offices:

1. Bangalore Metropolitan Area Zone, Nrupathunga Road , Bangalore

2. Bangalore Rural Area Zone, Nrupathunga Road, Bangalore

3. Chitradurga Zone, Chitradurga

Circle Offices:

1. Bangalore North Circle, Nrupathunga Road, Bangalore

2. Bangalore South Circle, Nrupathunga Road, Bangalore

3. Bangalore Rural Circle, Nrupathunga Road, Bangalore

4. Bangalore East Circle, Cunningham Road, Bangalore

5. Kolar Circle, Kolar

6. Tumkur Circle, Tumkur

7. Davanagere Circle, Davanagere

Divisions: 26

Sub-divisions: 108

Sections: 432

In today's world, progress is impossible without a strong infrastructure backbone. A

growing nation has huge expectations that its basic needs will be met. There is no doubt

that in our modern world, electricity is a basic need. We can put it as food, clothing, shelter

and electricity. No exaggeration. We, at BESCOM, believe it is a huge challenge as well an

opportunity to meet the aspirations and the energy requirements of a rapidly growing part

of the dynamic state of Karnataka. BESCOM is supporting the growth story with its

endeavour to provide electricity wherever and whenever it is needed. With a vision,

strategy and action plan to ensure that our electricity needs will be met, adequately. Now,

and in the future.

Performance over the years:

10 years is a long time, some say, to describe the journey of an organization. We believe

our commitment to attain our organizational objectives are amply demonstrated in the

figures that accompany. It is indeed heartening for us that there has been a constant


improvement over the years on all key operating parameters thus making us a healthy

corporation. While there

is a customer growth of 50%, the revenue side story too is impressive: a jump of over

206%. The losses area is healthy too: Distribution, AT&C and Transformer failure losses

have shown a steady decline.

Performance of BESCOM ( in last 10 years)

Particulars Units 2001-2002 2011-12Consumers Lakhs 46.57 79.66Revenue Demand in Rs Crores 2276 9213Revenue Collection in Rs Crores 2089 8915Collection Efficency (Exc. BJ/KJ) in Rs Crores 88 96.61Distribution Transformers Nos. 61429 161905HT lines Ckt. KMs 45543 75704LT lines Ckt. KMs 127658 150105Distribution Losses in percentage 25 14.46Transformer failure rates in percentage 15 5.76

HR Initiatives:

Training and Evaluation:

BESCOM has a work force of about 10,265 employees. Optimum utilization of Human

Resources contributes to the growth of the organization. Imparting training to the

employees is thus very important and BESCOM plans to conduct training for employees on

a regular basis. About 2273 officers and employees were trained on Ethical Governance

and Work- fulfillment under the "Parivarthana Dhere" programme. Achara Niranthara

Training Programmewas conducted for all employees successfully.


Sevottam workshop:

FICCI Quality Forum, New Delhi conducted a 2- day workshop for developing a Sevottam-

complaint Citizen’s Charter for BESCOM on 29th February and 1st March 2012. 25 officers

attend the workshop.

Customer service through technology focus:

In pursuit of achieving the better performance in the area of customer service, BESCOM has

taken various initiatives towards technology developments. Some of the key initiatives

taken by BESCOM are as follows:

Smart Meter

BESCOM has taken initiative to provide Smart Meters to all the categories in the LT

segment in a phased manner beginning with Commercial consumers. The Smart Meter

project follows the principles of the AMR (Automated Meter Reading) and AMI (Advanced

Metering Infrastructure).

The top level architecture of Smart Meter and Communication modes AMR-AMI system

offers services and benefits to all stakeholders of the system. The Smart Meter can be used

both for Pre-payment and Post-payment with AMR features and 2- way communication

Smart Grid

BESCOM has envisaged a Smart Grid Pilot Project in Bangalore city. Smart Grid is a means

to fulfill BESCOM's mission and realize its vision. Bangalore is the best test site for the

Smart Grid in the country because of the Distribution Automation System being

implemented here and the transmission SCADA

already in place. The presence of local IT and professional skills are added advantages for

bringing in the Smart Grid. M/s CPRI have already been appointed the national consultants

by USAID.


Bangalore Automation

For quality and reliability in power supply, as well as improved customer satisfaction

through speedy fault location and restoration, BESCOM has planned for a Distribution

Automation system in Bangalore city at a cost of around Rs. 563 crores. Project consultants

have already been appointed and their work has commenced during the year.

Power-Bill Net

Power-BillNet is a complete billing and collection software with advanced features such as

Spot Billing and Anywhere Payment Collection (of payment by third parties),Easy Bill, Bill

Desk, Any Time Payment / B1 (e-governance), etc. and role-based user access.

HANNAN

802.15.4g OFDM GPRS WiMax

Zigbee Wifi M-Bus PLM<1GHz ISM

HAN (Home Area Network): Wireless or wired network used for load control and dynamic response by utilities Electric meter communicating with T-Stats, appliances, water heaters, pool pumps, electric hybrids, etc. (Load Control) Send pricing signals to consumers for smarter energy consumption (Demand Response)

Metrology:Hardware that measures and controls flow of energy to/from building

HotWaterHeater

Thermostat

RenewableEnerg

yElectri

cCar

Broad-range Smart Energy Solutions Provider: Metrology and home gateway solutions closer to home Data aggregators, grid routers, grid protection on grid end Secure, easy-to-use wireless networks Energy savings, Reduced costs Increasing security, reliability & transparency

NAN HAN

MetrologyWAN

WAN NAN

Data Concentrator(Aggregator)

Energy Gateway

HAN

Data Concentrator (Aggregator): Sends data collected (or commands) to and from Neighbor Area Network (NAN) or Home Area Network (HAN) to utility

Appliances

Grid Power Protection, Relay/Switch Control and MonitoringGrid Power supervision, control and network protection system solutions; Protective Relays and Switches control for Power Grid

GPRS LTE Ethernet ADSL

Gas/Water


Customer-friendly Measures:

Customer Care Center:

24x7 HELP LINE for All Electricity related Complaints: Telephone Number: 080-22873333


Complaint Lodging through SMS:


Payment Modes:

• Sub -divisional cash counters

• ECS

• Bangalore–One counters

• Any Time Payment counters

• Easy Bill Payment

• Bill Junction and Bill Desk

• Micro-feeder Franchisee

• Check drop-boxes

• Anywhere Payment

• Payment through SBI and SBM ATMs

• Payment through Credit / Debit Cards


Customer Interaction Meetings (CIM):

CIM is a platform for both consumers and local BESCOM officials to interact every month.

Consumer can voice their long pending grievances, opinions and suggestions at the CIM.


Awareness Programme

A massive communication campaign is being taken up to bring awareness among the public

to adopt energy- efficient methods to save energy and to conserve energy.

• Advertisement in Newspapers, Magazines, Souvenirs, etc.

• Jingles on Doordarshan, AIR, Big FM, etc. Posters, Pamphlets, Brochures,

Car Stickers, etc.


Business Plan Projections:

Sales projections for the period from 2013-14 to 2017-18:

The sales projection is projected on the following lines:

The historical data for past years is available. The CAGR for 7yrs, 6 yrs, 5 yrs, 4 yrs, 3 yrs, 2

yrs and one year growth is computed. Accordingly, 7 scenarios of projections were

analyzed. An empherical formula is made use of.

The minima and maxima and most likely of all the CAGR years are worked out - minima is

considered as pessimistic and maxima is considered as optimistic, the average of the rest is

considered as most likely.

Statistical empirical formula is applied for all the scenarios

Average = (Optimistic+Pessimistic+4X Most Likely)/6

The Compounded Annual Growth Rate of energy Consumption computed is shown below:

Category wise sales projections in MU:

Consumer Category FY-14 FY-15 FY-16 FY-17 FY-18

Low Tension-LTDomestic 5627.05 6164.2 6753.11 7398.81 8106.78Commercial 1709.99 1942.43 2206.47 2506.4 2847.1Agriculture 6347.57 6691.83 7055.18 7438.79 7843.91Industrial 1140.84 1167.55 1194.88 1222.86 1251.49

High Tension-HTIndustrial 5711.88 6475.37 7340.93 8322.17 9434.58Commercial 3413.97 3825.81 4287.34 4804.54 5384.13Agriculture 6.18 7.29 8.6 10.15 11.99

Othersothers 1429.77 1776.63 2173.42 2629.85 3205.63

Total25387.2

528051.1

131019.9

334333.5

738085.6

1Growth in

Percentage 10.49% 10.58% 10.68% 10.93%

Demand Projections for the period from 2013-14 to 2017-18:


The projections of demand has been arrived by grossing up above consumption projections with the estimated transmission loss, distribution loss and load factor.

BESCOM has considered the transmission loss of 4.40% for FY-14 and reduction of 0.10% is proposed for each year of the succeeding years.

As per the data gathered the average load factor was around 77%. However, for future projections a load factor of 80% is considered for the succeeding years.

Considering the above assumptions, demand projections for the period from FY-14 to FY-18 is tabulated below:

Particulars FY-14 FY-15 FY-16 FY-17 FY-18Total sales 25387 28051 31020 34334 38086Distribution Loss 13.8 13.6 13.4 13.2 13.0Energy Input @ IF point 29452 32467 35820 39555 43777Transmission Loss 3.94 3.92 3.90 3.88 3.86Energy Input @ Gen point 30660 33791 37273 41151 45534Avg.MW requirement 3500 3857 4255 4698 5198Load Factor 0.80 0.80 0.80 0.80 0.80Peak MW requirement 4375 4822 5319 5872 6497

FY-06 FY-07 FY-08 FY-09 FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-1810

12

14

16

18

20

22

24

2624.2 23.73

19.99

16.6415.14

14.48 14.46 14 13.8 13.6 13.4 13.2 13

Reduction in Distribution Loss

Power Purchase plan:


BESCOM has to arrange for the power requirement of its distribution license area. In the

above paras, energy requirement and demand have been worked out. Based on these sales

and demand projections the source wise energy and the cost for the period from FY-14 to

FY-17 have been gathered from PCKL. For FY-18 based on the energy requirement the

source wise power purchase cost have been computed duly taking the average source wise

cost. The power purchase requirements have been arrived from the following sources.

Karnataka Power Corporation Limited (KPCL)- Hydel

Karnataka Power Corporation Limited (KPCL)-Thermal

Central Generating Stations.

Major Independent Power Producers (Major-IPPs)

Non-Conventional Energy Sources (NCE)-Old

Non-Conventional Energy Sources (NCE)-New

Jurala- Hydel

Medium/Short term power purchase

Source wise projected Energy requirement in MUSource FY-14 FY-15 FY-16 FY-17 FY-18

KPCL-hydel 3539.77 3405.19 3405.19 3405.79 3438.99KPCL-Thermal 8156.77 9802.86 17915.81 18934.49 18934.49CGS 7351.7 7779.95 7951.17 7951.17 7951.17Major -IPPS 3691.01 3691.01 3691.01 3691.01 3691.01NCE-old 2979.46 2978.49 2978.49 2978.49 2978.73NCE-New 101.29 342.54 397.09 397.09 398.09Jurala 137.02 137.02 137.02 137.02 137.02Medium/Short Term 4702.59 5654.28 797.76 3656.09 8005.00Total 30659.61 33791.34 37273.54 41151.15 45534.50

Source wise projected Power purchase cost in Rs. Crs.Source FY-14 FY-15 FY-16 FY-17 FY-18


KPCL-hydel 252.53 257.60 258.40 263.48 266.05KPCL-Thermal 2872.46 3882.59 7636.42 8179.20 8179.20CGS 2538.46 2755.14 2869.25 2913.18 2913.18Major -IPPS 1154.19 1154.18 1154.18 1453.65 1453.65NCE-old 1047.73 1052.39 1057.43 1062.60 1062.69NCE-New 46.51 162.13 183.84 183.84 184.30Jurala 30.17 30.93 31.70 32.49 32.49Medium/Short Term 2068.00 2808.75 398.84 1553.84 3402.13

Total10010.0

512103.7

113590.0

615642.2

817493.6

8

Transmission Charges: Transmission cost :

The transmission charges towards Central Generating Stations are included in the

computation of power purchase cost for the respective years.

The transmission system in Karnataka operates as one composite net work for the purpose

of sharing of charges. The Annual Revenue Requirement of various transmission licensees

are pooled together and shared by distribution licensees in their proportion of allocation

of installed capacity to the ESCOMs as made by the Government of Karnataka. In order to

project the transmission charges BESCOM has considered the present transmission charges

as approved by the Hon’ble Commission vide Tariff Order-2012 dated 30.04.2012 and

escalated by 10% per annum.

The approved transmission Tariff for FY-13 was Rs.952.10 Crs. Per annum. The computed

transmission charges based on the above assumption is tabulated for the period from

FY-14 to FY-18 :

Year FY-14 FY-15 FY-16 FY-17 FY-18

Cost in Rs. Crs. 1316.44 1338.01 1522.061674.26

61841.692

6

Capex plan:

BESCOM comes under southern grid and the peak demand is growing at a higher

percentage compared to the energy requirement. Besides other reasons this phenomenon

can be attributed to growing urbanization, changes in life style & efficiency improvement


(In terms of reduction in losses) in the distribution system. Specially in case of BESCOM the

reduction in losses has led to suppressed increase in energy requirement, whereas the

higher penetrations of electronics appliances have led to higher increase in the peak

demand during the past two years.

BESCOM has identified the following key areas for the need based investments.

AT&C losses reduction :-

Metering:

Reconductoring of lines (HT and LT)

Evacuation of New Line/link Line for Urban / Rural Area:-

Improvement in quality of supply:

Other normal schemes

IT interventions

Capital Works envisaged from 2013-14 to 2017-18:-

BESCOM has prepared a perspective plan for capital investments totaling to

Rs.2932.00 Crores for the period from 2013-14 to 2017-18 Year on year, scheme

wise detailed proposed investment is furnished below:

Rs. in Crores

Sl. No

Schemes2013-14 2014-15 2015-16 2016-17 2017-18

PlanNon Plan

PlanNon Plan

PlanNon Plan

PlanNon Plan

PlanNon Plan

1 E&I

A11 KV Lines for New Stations 20.00 50.00 80.00 80.00 80.00

B

11 KV Other Work+ DTCs including dedicated DTCs for DWS Schemes. 15.00 40.00 70.00 70.00 70.00

C

Re- conductoring of ACSR /Rabbit to Coyote in Bangalore Urban 10.00 10.00 30.00 30.00 30.00

DRe-conductoring of LT line using Rabbit conductor 5.00 5.00 20.00 20.00 20.00


E

Re- conductoring (Improvement works on 11 KV Rural Feeders) 10.00 20.00 20.00 20.00 20.00

FStrengthening of 11 KV UG cable Network with RMUs 10.00 10.00 25.00 25.00 25.00

2 NJY 370.00

3Providing infrastructure to Un authorized IP Sets 20.00 60.00 60.00 60.00 60.00

4 (A) DTC Metering Programme Non RAPDRP Area 10.00 25.00 30.00 30.00 30.00

(B) Replacing Mechnanical Meter By Electrostatic. 40.00 30.00 20.00 20.00 20.00

( C ) Smart Meter, HT- TOD Meter Replacing MNR etc . 20.00 40.00 30.00 30.00 30.00

5 RAPDRP & DAS 150.00 140.00 6 Service connections 25.00 25.00 25.00 25.00 25.00

7Replacement of failure DTCs by new ones 15.00 15.00 15.00 15.00 15.00

8 A)Civil Engineering works, DSM & Others 25.00 25.00 25.00 25.00 25.00

B)Consumer Education 1.00 1.00 1.00 1.00 1.00

9 HVDS 30.00 120.00

10Providing fault locators 5.00 1.00 1.00 1.00 1.00

11Electrification Hamlets /Villages 6.00 6.00 5.00 5.00 5.00

12Energisation of IP Sets 6.00 20.00 20.00 15.00 15.00

13T &P and Computers 5.00 10.00 10.00 10.00 10.00

14

Other works including Safety measures fund, Local Planning 20.00 20.00 20.00 20.00 20.00

15 Providing AB Cable 30.00 90.00 120.00 100.00 110.00

Total 31.00 817.00 31.00 732.00 30.00 597.00 30.00 572.00 30.00 582.00 Grand total 848.00 763.00 627.00 602.00 612.00

Annual Revenue Requirement:

The final tariff paid by the consumer comprises of (excluding the past recoveries)


(1) Power purchase cost

(2) Transmission charge

(3) Distribution net work cost.

Annual fixed charges for the distribution net work is worked out and shown below:

Particulars FY-14 FY-15 FY-16 FY-17 FY-18R&M Expense 56.30 63.70 71.60 78.76 86.64Employee Expenses 957.40 1082.70 1217.90 1339.69 1473.66A&G Expense 112.60 127.40 143.30 157.61 173.37Depreciation 143.69 157.98 167.07 178.76 191.28Interest & Finance Charges 703.85 805.96 899.06 999.06 1099.06ROE 15.5% 86.81 103.63 123.71 143.71 163.71Less : Other Income 179.74 186.75 193.96 203.96 213.96Annual Revenue Requirement 1880.91 2154.62 2428.68 2693.63 2973.75

Average Cost of Service:

BESCOM has presented the Annual Revenue Requirement arising out of the above

projections. In making the projections BESCOM restricted itself to ARR arising in that

year only and not considered the impact of the past year performance in terms of truing up

and in terms of gap arising there from. In other words ARR presented is a “Stand alone”

ARR of various years

Particulars FY-14 FY-15 FY-16 FY-17 FY-18Power purchase Cost in Rs. Crs. 10010.05 12103.71 13590.06 15642.28 17493.68Transmission Cost in Rs. 1316.44 1338.01 1522.06 1674.27 1841.69


Crs.R&M Expense 56.30 63.70 71.60 78.76 86.64Employee Expenses 957.40 1082.70 1217.90 1339.69 1473.66A&G Expense 112.60 127.40 143.30 157.61 173.37Depreciation 143.69 157.98 167.07 178.76 191.28Interest & Finance Charges 703.85 805.96 899.06 999.06 1099.06ROE 15.5% 86.81 103.63 123.71 143.71 163.71Less : Other Income 179.74 186.75 193.96 203.96 213.96Annual Revenue Requirement 13207.40 15596.34 17540.80 20010.18 22309.13Sales In MU 25387.25 28051.11 31019.93 34333.57 38085.61Average Cost of Supply in Rs./Unit 5.20 5.56 5.65 5.83 5.86

BESCOM Business Plan for2014-2018bescom.org/wp-content/uploads/2013/01/Business-plan.docx · Web...

Documents

Transcript of BESCOM Business Plan for2014-2018bescom.org/wp-content/uploads/2013/01/Business-plan.docx · Web...