Sanjay Banga Distribution Reforms- Key to Turnaround of Power Sector TPDDL …A case in point.
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Transcript of Sanjay Banga Distribution Reforms- Key to Turnaround of Power Sector TPDDL …A case in point.
Sanjay Banga
Distribution Reforms- Key to Turnaround of Power Sector TPDDL …A case in point
India : Distribution Sector
TPDDL….. A case in point
Conclusion .
Contents of the Presentation
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Growth- Generation & Transmission Sector
• Generation & Transmission sector has witnessed reform & growth in the Generation & Transmission sector.However improvements in Generation & Transmission are not to create a sustainable power sector due to problems in end of value chain i.e. power distribution sector
• Distribution reform is the key for creating Sustainable power sector in India
- Government of India plans to investment more than 70000 cr. (IPDS , DDUGY,NSGM)- “ UDAY ‘ announced to transform Distribution sector .
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Distribution Sector …
• Current per-Capita Consumption: 917 kWh • World Average per-Capita Consumption : 2300 kWh • Govt. of India target for 12th 5-year plan:1200 kWh• Electrification level within the country is 65-70%.
Distribution Sector : Overview • Few private players with different form of distribution models like PPP , Franchise • Load shedding is common and technology intervention Minimum .• High T & D Loss levels coupled with poor billing & collection efficiency .• Tariff is not cost reflective .Cross subsidy still in Existence .open access in present form not an
option
• Inadequate Interregional transmission capacity. Exchange prices vary significantly NR and SR .
Loss Level
- 10.0 20.0 30.0 40.0 50.0 60.0
SESCO
BSEB
WESCO
CESU
TSECL
UHBVNL
NESCO
WBSEDCL
CSPDCL
APCPDCL
CESCOM
MESCOM
TPDDL
APNPDCL
APSPDCL
Rinfra
DGVCL
Torrent Power
APEPDCL
Top 10 and Bottom 10 Utilities in terms of AT&C Losses
JKPDD
• AT&C losses in 2012-13 ranged from 6.5 per cent to 55.5 per cent. Of the 50 distribution utilities surveyed, 40 reported reduced AT&C losses in 2012-13.
• 16 utilities had losses below 15 per cent, while 40 had losses below 30 per cent
• High loss making utilities offer the maximum scope for implementing loss reduction measures
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Na
tio
na
l A
ve
rag
e
AT&C Losses
* Source World Bank 2014 report
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Performance..
02468
10121416
1614 14 14 13 12 11 10 10 10 10 9 9 9 8
Tariff Hike /year in last five years
Thank Imroving YouUDAY : Hoping for Improvement in operational efficiency
Activity Benefit End date
Compulsory feeder and distribution Transformer (DT) metering by states
Ability to track losses at the feeder and DT level for corrective action
Feeders-30th June 2016, DTs -30th June 2017
Consumer Indexing & GIS mapping of losses Identification of loss making
areas for corrective action 30th Sep 2018Upgrade or change transformers , meters etc.
Reduce technical Losses and minimize outages
31st Dec 2017
Smart metering of all consumers consuming 200 units/month
Smart meters will be temper proof and allow remote reading thus helping reduce theft.
Consumption >500 units/month-31st Dec 2017, Others- 31st Dec 2019
Massive Investment justified ?
India : Distribution Sector
TPDDL….. A case in point
Looking Beyond..
Contents of the Presentation
8
TPDDL – What we are !
• License Area: North and North West Delhi (510 sq km)
• Annual Turnover: 1.11 Billion US Dollar
• Consumer Base: 1.4 Million
• Population Served : 6.0 Million
• Peak Load Served: 1704 MW
• CAPEX Investment of 5000 cr. in network , Technology , consumer services
Joint Venture of Tata Power Company and Govt. of Delhi (51:49)
TPDDL
Financial Performance
Consistently Loss Reduction Exceeding Targets
• Saved over USD 2.1 Billion for Govt. in 12 years; facilitated development of other infrastructure; lower taxes
• Repaid USD 100 Million loan to Govt.• Paid Dividends to Govt. and Tata Power ( FY 2013-14- Dividend 12% )• Amongst lowest Tariffs in the country with highest availability and reliability of power • 1:2 Bonus Shares Issued in FY ‘09
AT & C Loss reduction in TPDDL
• The first step - Focus on who had the capacity to pay but did not. AMR , enforcement and other efforts began, AT&C losses were reduced to 15% in FY 2009 in most areas.
• The second step - Loss levels were as high as 89% in slum areas .In the slums, people were stealing electricity primarily due to inability to pay, and also because legitimate electrical connections were not available due to lack of proof of residential ownership, lack of electrification of the area, and political intervention, among other reasons. It became clear early on that giving these consumers a skill set was key to improving their capacity to pay .
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Loss reduction in slum area :
• Enhancing capacity to pay electricity bills through various initiatives
Tata Power Delhi Distribution Ltd. started activities in JJ clusters to improve residents’ socioeconomic conditions. These activities included insurance schemes, medical facilities, drug rehabilitation centers, women’s literacy centers vocational training. There were also programs to support children’s education through scholarships for college and professional institutions, tutors, and similar initiatives.
• Legitimate electricity connections affordable at residents’ doorsteps
Reducing new connection charges to one-third of the current connection fee. The new connections were made available on the same day by holding Instant Camps (whereby a new connection is released to a slum dweller immediately). To do this, we waived outstanding dues, reduced the requirement of proof of identification, and promoted free accident insurance cover of $1500 on metered connections
• Involving the people of JJ clusters in sustaining the electricity connection.
We created entrepreneurship, self-help groups, and brand ambassadors within JJ clusters. The residents chosen for these groups took on jobs including metering, meter reading, and bill collection in JJ clusters.
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Result
• Metered connections in JJ clusters
increased from 40,000 in FY 2008-09
to 175,000 in FY 2014-15.
• AT&C loss level was reduced from 68% in
FY 2008-09 to 15 %
• Billed demand increased from $2 million
in FY 2008-09 to $20 million in FY 2014-15.
Improvements in the living conditions of 1 million underprivileged people (0.2 million families) in slums in the capital of India.
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Key Recognitions
“National Award for Meritorious Performance”(2004-05, 05-06, 07-08, 08-09, 13)
“Utility of the Year”Asian Power Awards
(2007-2013))
”Utility of the Year”India Power Awards (2008, 2010, 2011)
“Innovative Implementation of GIS”
Edison Electric Institute, USA (2008)
”Innovative Technology”India Power Awards
(2009 – 2011)
“IPPAI POWER AWARDS”(2012)
”Technology Award (OMS) ”Asian Power Awards
(2012)
“Best Performing Utility- Urban”Enertia Power Awards
(2012)
”IT Innovation Award (OMS)”NASCOM & CNBC TV 18
(2012)
“Best Performing Private Discom”Power Line Awards
(2013)
“Best Companies to Work for”(2013)
Marico Innovation Award
(2013)
“Safety Innovation Award”Institution of Engineers
(2010, 2011, 2012)
“Policy Advocacy Award”Edison Electric Institute, USA
(2009)
SAP Ace Award(2013)
Conclusion : What is Needed most
• Professionally driven performance based Business environment , Private or Public no matters , driven by KPI , rewards and recognition ..NTPC, PGCIL are shining example .
• Political Insulation , Self driven mechanism , Vibrant Regulatory environment .
• Invest in resources first to have core competency then in Technology. Technology is effective enabler but not a solution .
• Future business model is going to change the way we operate . Recent discovered solar prices , Ev penetration in future will change Tesla Edison grid which was never designed for two way power flows .
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Let’s make a difference
Smart Green Life
Thank You