dissertation on indian environmental laws and global issues by rohit
INFORMATION TECHNOLOGY IMPLEMENTATION IN INDIAN … rohit... · “Information Technology...
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SUMMER INTERNSHIP REPORT INFORMATION TECHNOLOGY IMPLEMENTATION IN INDIAN POWER DISTRIBUTION – PRESENT AND FUTURE PERSPECTIVES UNDER THE GUIDANCE OF Mr. K P Singh Parmar, Assistant Director, MS, NPTI & Mr. Sarabjeet Bhatia, GM (Energy & Utilities) HCL Infosystems Ltd At HCL Infosystems Ltd – Energy & Utilities Division, Noida Submitted By Rohit Kanth Roll No 1120812259 MBA – Power Management Affiliated to AUGUST 2012
Transcript of INFORMATION TECHNOLOGY IMPLEMENTATION IN INDIAN … rohit... · “Information Technology...
SUMMER INTERNSHIP REPORT
INFORMATION TECHNOLOGY
IMPLEMENTATION IN INDIAN POWER
DISTRIBUTION – PRESENT AND FUTURE
PERSPECTIVES
UNDER THE GUIDANCE OF
Mr. K P Singh Parmar, Assistant Director, MS, NPTI
&
Mr. Sarabjeet Bhatia, GM (Energy & Utilities) HCL Infosystems Ltd
At
HCL Infosystems Ltd – Energy & Utilities Division, Noida
Submitted By
Rohit Kanth Roll No 1120812259
MBA – Power Management
Affiliated to
AUGUST 2012
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DECLARATION
I, Rohit Kanth, Roll No 1120812259 student of MBA (POWER MANAGEMENT) 2011-13
batch of the National Power Training Institute, Faridabad hereby declare that the Summer Training
Report entitled -
“Information Technology Implementation in Indian Power Distribution – Present & Future
Perspectives” 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 Aug 31, 2012 and the suggestions as
approved by the faculty were duly incorporated.
Presentation In charge Project Guide Signature of the Candidate
(Faculty) (Internal) (Rohit Kanth)
Countersigned
Director/Principal of the Institute
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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 “Information Technology Implementation in Indian Power
Distribution – Present and Future Perspectives”.
I first thank my Project Convener Mr Sarabjeet Bhatia, General Manager, Energy & Utilities,
HCL Infosystems Ltd. who gave me this opportunity to work on a project of such vast
dimensions.
I also thank Mr Rahul Das, Manager, Business Development – Energy & Utilities division,
HCL Infosystems Ltd. For his constant support & encouragement. The extent of clarity of
thought that a person should have while performing his duties is what I think that I imbibe from
him.
I am indebted to my project guide Mr. K P Singh Parmar, Assistant Director, NPTI Faridabad
and Ms Sree Lata Neelesh who were keen with me in developing this project. Their continuous
support both in technical and moral terms led me to pave the way through the challenges faced
during the arduous course of this task.
I am also helpful to the helping hands at BRPL, BYPL and NDPL who helped me to carry on this
inter-organisational study.
I also thank our Program Director Mr S K Chaudhary, Director NPTI, Mr J.S.S. Rao and Intern
Co-ordinator Ms Manju Mam, for their support and guidance throughout this project.
A special acknowledgement to my friend Rohitash and my seniors who helped me as and when
required.
Rohit Kanth
Summer Interns
NPTI, Faridabad
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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.
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.
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LIST OF ACRONYMS AC Alternating Current
AMI Automated Metering Infrastructure
AMR Automated Meter Reading
APDRP Accelerated Power Development & Reforms Program
ATM Automatic Teller Machine
BI Business Intelligence
BPL Broadband over Power Lines
BRPL BSES Rajdhani Power Limited
BSES Bombay Sub-Urban Electricity Supply Company
BYPL BSES Yamuna Power Limited
CDMA Code Division Multiple Access
CEA Central Electricity Authority
CERC Central Electricity Regulatory Commission
CIS Consumer Information System
CRM Consumer Relationship Management
CRN Customer Reference Number
CTI Computer Telephony Integration
DA Distribution Automation
DAS Distribution Automation System
DC Direct Current
DISCOMs Distribution Company
EAM Enterprise Access Management
EBPP Electronic Bill Presentment & Payment
EDM Energy Data Management
ERP Enterprise Resource Planning
FI-CO Financial Accounting – Controlling
FLC Fuzzy Logic Control
FY Financial Year
GIS Geographic Information System
GPRS General Packet Radio Service
GSM Global System for Mobile Communications
GUI Graphic User Interface
HMI Human Machine Interface
HVDS High Voltage Distribution
ICS Industrial Control Systems
ICT Information and Communication Technology
IED Intelligent Equipment Devices
IIT Indian Institute of Technology
IT Information Technology
IUT Intelligent Universal Transformer
IVRS Interactive Voice Response System
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IWF Interworking Function
LCD Liquid crystal display
LT Low Tension
MDM Meter Data Management
MIS Management Information System
MRI Meter Reading Instrument
NCT National Capital Territory of Delhi
NHPC National Hydro-Electric Power Corporation
NTPC National Thermal Power Corporation
OLAP On-Line Analytical Processing
OTS Optical Tracking System
PAD Packet Assembly Disassembly
PDSL Power Line Digital Subscriber Line
PLN Power Line Networking
PLT Power Line Telecom
PN Pseudo Random
RF Radio Frequency
RTU Remote Terminal Units
SCADA Supervisory Control and Data Acquisition
SCM Supply Chain Management
SFA Sales Force Automation
SIM Subscriber Identity Module
SOA Service-Oriented Architecture
TOD Time of day
TPDDL Tata Power Delhi Distribution Ltd
WMS Warehouse Management System
XML Extensible Markup Language
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LIST OF FIGURES
Figure 1 – HCL Offerings to Power .......................................................................................................... 6
Figure 2 – Integrated Package ................................................................................................................... 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
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TABLE OF CONTENTS
DECLARATION ............................................................................................................................................... i
ACKNOWLEDGEMENT ................................................................................................................................. iii
EXECUTIVE SUMMARY ............................................................................................................................... iv
State of Information Technology ............................................................................................................. iv
Information Technology Roadmap .......................................................................................................... iv
LIST OF ACRONYMS ..................................................................................................................................... v
LIST OF FIGURES ........................................................................................................................................ vii
TABLE OF CONTENTS ................................................................................................................................ viii
CHAPTER - 1
INTRODUCTION
1.1. INTRODUCTION................................................................................................................................. 2
1.2. PROBLEM STATEMENT..................................................................................................................... 2
1.3. OBJECTIVE OF THE PROJECT ........................................................................................................... 3
1.4. SIGNIFICANCE OF THE PROJECT ...................................................................................................... 4
1.5. COMPANY PROFILE .......................................................................................................................... 5
1.5.1. HCLI – Energy & Utility Division ......................................................................................... 5
1.5.2. Field / Subdivision Automation ............................................................................................. 6
1.5.2.1. Major Modules .................................................................................................................. 6
CHAPTER - 2
PROJECT STRUCTURE
2.1. REVIEW OF LITERATURE ................................................................................................................. 8
2.2. RESEARCH METHODOLOGY .......................................................................................................... 17
CHAPTER - 3
IT INFRASTRUCTURE IN INDIAN POWER DISTRIBUTION BUSINESS
3.1. INDIAN POWER SECTOR OVERVIEW ............................................................................................. 19
3.2. ELECTRICITY DISTRIBUTION IN INDIA ......................................................................................... 20
3.3. HOW DOES POWER REACH US? ..................................................................................................... 20
3.4. BOTTLENECKS IN ENSURING RELIABLE POWER .......................................................................... 21
3.5. PRESENT STATUS OF POWER DISTRIBUTION BUSINESS .................................................................. 23
3.6. AUTOMATION IN POWER DISTRIBUTION ...................................................................................... 26
3.7. NEED TO AUTOMATE ..................................................................................................................... 26
3.8. DISTRIBUTION AUTOMATION SYSTEM ......................................................................................... 27
3.9. METERING & BILLING SYSTEM .................................................................................................... 28
3.10. SCADA ....................................................................................................................................... 29
3.11. GIS .............................................................................................................................................. 30
3.12. THE SMART GRID VISION OF INDIA .......................................................................................... 31
3.13. DRIVERS IN INDIA ....................................................................................................................... 32
3.13.1. Supply shortfalls ................................................................................................................. 32
3.13.2. Loss reduction ..................................................................................................................... 32
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3.13.3. Managing the “human element” in system operations ........................................................ 33
3.13.4. Peak load management ........................................................................................................ 33
3.13.5. Renewable energy ............................................................................................................... 33
3.13.6. Technological leapfrogging ................................................................................................ 33
3.14. WHAT, EXACTLY, IS A SMART GRID? .......................................................................................... 34
3.15. SOLUTIONS FOR DISTRIBUTION UTILITIES ............................................................................... 35
3.16. IT STRATEGY AND PLANS ........................................................................................................... 37
3.16.1. Advanced applications ........................................................................................................ 39
3.17. INTEGRATED BILLING SYSTEM FOR LARGE C&I CUSTOMERS ................................................... 40
3.18. ENTERPRISE RESOURCE PLANNING ............................................................................................. 42
3.18.1. SAP Utilities ....................................................................................................................... 42
3.18.2. ERP Modelling of Distribution Business ............................................................................ 44
3.18.3. Oracle ERP .......................................................................................................................... 45
3.18.4. Service-oriented architecture .............................................................................................. 46
3.19. AUTOMATED METER READING ................................................................................................... 48
3.19.1. Touch Technology .............................................................................................................. 49
3.19.2. Wireless Technologies ........................................................................................................ 49
3.19.2.1. GSM Based Technology ................................................................................................. 50
3.19.2.2. CDMA Based Technology .............................................................................................. 51
3.19.3. Power Line Communication System (PLC) ........................................................................ 52
CHAPTER - 4
IT IMPLEMENTATION IN INDIAN DISCOMS - A SURVEY IN DELHI
4.1. IT IN POWER ................................................................................................................................... 54
4.1.1. Objectives for ERP Implementation ....................................................................................... 55
4.1.2. Challenges during ERP Implementation: ................................................................................ 56
4.1.2.1. Process Mapping: ............................................................................................................ 56
4.1.2.2. Data Migration: ............................................................................................................... 56
4.1.2.3. Change Management: ..................................................................................................... 57
4.1.2.4. Customisation: ................................................................................................................ 57
4.1.2.5. Outsourcing Issues: ......................................................................................................... 57
4.1.2.6. Costing and Pay Back Period: ......................................................................................... 58
4.1.2.7. Project Scheduling: ......................................................................................................... 58
4.2. A SURVEY OF DISCOMS (DELHI) .................................................................................................. 59
4.3. BSES (BOMBAY SUB-URBAN ELECTRICITY SUPPLY COMPANY), DELHI ...................................... 59
4.3.1. Company Profile ..................................................................................................................... 59
4.3.1.1. BSES Yamuna Power Limited (BYPL) .......................................................................... 60
4.3.1.2. BSES Rajdhani Power Limited (BRPL) ......................................................................... 60
4.3.2. System Setup at BSES ............................................................................................................ 60
4.3.2.1. Metering system .............................................................................................................. 60
4.3.2.2. Billing System ................................................................................................................. 62
4.3.2.3. Collection System ........................................................................................................... 63
4.3.3. Other IT enabled Practices at BSES ....................................................................................... 63
4.3.3.1. Availing SMS services on 5-54-54-64 ............................................................................ 63
4.3.3.2. Electricity Calculator ...................................................................................................... 64
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4.3.3.3. BSES IVRS Service ........................................................................................................ 65
4.3.4. Implementation Benefits of ERP ............................................................................................ 66
4.4. TPDDL (Tata Power Delhi Distribution Ltd) ............................................................................. 67
4.4.1. Company Profile ..................................................................................................................... 67
4.4.2. Pioneering Technology Initiatives .......................................................................................... 68
4.4.2.1. Automation Initiatives & GIS ......................................................................................... 68
4.4.2.2. Complaint Management System ..................................................................................... 68
4.4.2.3. Introduced online connection management by consumers ............................................. 69
4.4.2.4. Consumer Relationship Management ............................................................................. 69
4.4.2.5. Automated Bill Payment Kiosks for consumer convenience .......................................... 69
4.4.3. System Setup at TPDDL ......................................................................................................... 69
4.4.3.1. Data Collection Mechanism ............................................................................................ 70
4.4.3.2. Metering System ............................................................................................................. 70
4.4.3.3. Billing System ................................................................................................................. 70
4.4.3.4. Collection System ........................................................................................................... 70
4.4.4. Advantages of Using SAP ISU to TPDDL and Customers .................................................... 71
4.4.5. TPDDL SAP ISU Login for Consumers ................................................................................. 71
CHAPTER - 5
CONCLUSION & THE WAY FORWARD
5.1. CONCLUSION .................................................................................................................................. 74
5.2. THE WAY FORWARD – ERP WITH BI ........................................................................................... 75
5.2.1. Business Intelligence............................................................................................................... 76
BIBLIOGRAPHY ............................................................................................................................................ 87
1
CHAPTER – 1
INTRODUCTION
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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 quick-fix 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.
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1.3. OBJECTIVE OF THE PROJECT This project report on “Information Technology Implementation in Indian Power
Distribution – Present and Future Perspectives” studies the present scenario of automation in
power 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 then
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 & analyse the present scenario of automation in power distribution in India
To study & analyse the development issues in Information Technology implementation
and recommendation.
To study & analyse the operational issues in Information Technology implementation and
recommendation
To study the problems faced by distribution companies in automation of processes
To analyse the various features of the solutions present in the market and their suitability
to individual organizations
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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.
5
1.5. COMPANY PROFILE HCL began an exciting journey more than three decades ago with a dream to give India its very
own microcomputer. The sheer clarity of vision and hard work led to a revolution and laid a
foundation for the Indian IT industry, which has today acquired a distinct position amongst major
economies in the world. Today HCL is a USD 6.2 billion global enterprise.
HCL Infosystems, the flagship company of the HCL enterprise, had a turnover of Rs. 400.6 crores
(USD 85 million) in 1994 which underwent tremendous growth to become Rs. 10,901 crores
(USD$ 2.4 billion) today. Employing - 7762 people, the company has today emerged not only as
the country’s information-enabling powerhouse but a great place to work with industry accolades
and awards received year after year.
Today HCL Infosystems has become one of the leading System Integration Company in the
country, implementing several turnkey Systems and Networking Integration projects nationwide
and across most of the vertical business segments. HCL Infosystems is uniquely poised today in
the market making it the only company with India as its primary focus, offering state of the art
technology solutions to empower a host of Defence, Homeland Security frameworks, social
sectors and government schemes for Nation building. HCL Infosystems has being powering
numerous projects across sectors like Defence, Homeland Security, Airport & Railways Intelligent
Infrastructure, Telecom, Banking, Public Distribution System, E-governance, Education, NREGA
etc. With global expansion and sharing best practices with the world and in particular developing
markets, the company is today strategically expanding in markets like Middle East, Southeast Asia
and Africa. The company has developed more than 30 IP products to serve different segments of
the markets backed by various hardware and software services.
1.5.1. HCLI – Energy & Utility Division
HCLI is working closely in Power distribution sector to address AT & C loss reduction, bring
transparency, improve customer satisfaction and increase employee productivity through right
convergence of IT & Automation.
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1.5.2. Field / Subdivision Automation
HCLI’s India-specific application system developed "in field", "for field" and "by field people" to
meet all commercial, technical & operational functions has been implemented in 2-large Discoms.
As field offices are responsible for over 80-90% data generation in power distribution, it becomes
absolutely imperative for IT automation to begin in the field offices first providing multi-fold
benefits.
1.5.2.1. Major Modules ˉ Billing and collection
ˉ New Connection / Disconnection
/ Load Extension
ˉ Electrical System Augmentation
ˉ Power Network Control
ˉ Store & Inventory
ˉ Meter Management
ˉ Vigilance & Enforcement
ˉ Revenue Section
ˉ Energy Audit
ˉ Consumer
ˉ Grievance
Figure 1 – HCL Offerings to Power
Figure 2 – Integrated Package
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CHAPTER – 2
PROJECT STRUCTURE
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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 changes are
immediately available to everyone.
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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 Agarwal et 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 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
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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. Simpande et 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 still read by meter
readers with ongoing personnel and operational costs to match. Similarly, CIS (Consumer
Information System) systems have changed radically from the 1970’s 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
11
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 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
12
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 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.
13
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 utility’s 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 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.
14
Abhijit Arvind Bhure [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/shouldn’t 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 utility’s 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, it’s 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 hardware and
software model utilising the latest embedded technology innovation for SCADA Power
Distribution Automation Systems for reliable performance of power system. This is vividly
15
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. Sadeghi et 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 Lotfy Zadeh) 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.
16
Alauddin Al-Omary et 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.
17
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.
•Study & Analysis Of IT Implementation Of Discoms
•Search For Data Available
•Visit To Discoms To Get Their Real Working
•Proper Sorting And Alignment Of Appropriate Data
Collecting Voice of customer
•Study Of Present Structure Of IT Implementation
•Comprehensive Analysis Of IT Implementation Issues In Discoms
Understanding Current Status
•Analysis Of Development & Operating Issues
•Analyse Areas of WeeknessGap Analysis
•Analyse The Areas Of Strength And Improvement
•Suggest Improvement Areas And Perimeters
Way Forward
18
CHAPTER – 3
INFORMATION TECHNOLOGY
INFRASTRUCTURE IN INDIAN
POWER DISTRIBUTION BUSINESS
19
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 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 for
20
electricity, 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 (15-18%). 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.
21
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 substantially reduce
22
the 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.
Figure 3 – Typical Power Transmission and Distribution Scenario with DA components
23
3.5. PRESENT STATUS OF POWER DISTRIBUTION
BUSINESS 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.
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 industrial1—to 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 provisions—whether legal, regulatory or otherwise—are 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 be
1 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.
24
a 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.
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
25
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 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.
26
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.
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
2 Also known as the Western U.S. Energy Crisis of 2000 and 2001
27
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.
DA systems are being adopted by utilities in some developed countries in a phased manner,
primarily for reliability evaluation in a field environment. In India too, a small beginning has been
made by a few state utilities (Delhi, Andhra Pradesh, Assam, Kerala and Rajasthan), which are
confining themselves initially to the automation of 33kV substations. Electronics Research and
Development Centre, Trivandrum, and Computer Maintenance Corporation, Hyderabad, were
involved in these early experiments, the main objective being the development of know-how and
a better understanding of the issues involved in implementing DA systems indigenously.
28
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) 4 Utilipoint International, Inc. Defines an AMI as "a communication network and meters providing interval usage (at
least hourly) and collected at least daily."
29
Integration formats the XML message to transfer the data from the SAP backend systems to the
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 facility-based
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
Figure 4 – A Graphic of the Components Involved in AMI
30
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 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,
31
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.
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 India’s 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 wouldn’t 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 to build and operate the physical
infrastructure required.
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
32
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.
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 India’s power supply. The increasing
affordability of household appliances is adding to the burden on the grid. Official estimates of
India’s demand shortfall are 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
India’s 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
Figure 5 – Distributed micro-grid Power System
33
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
India’s 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.
34
3.14. WHAT, EXACTLY, IS A
SMART 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:
ˉ Meters
ˉ Storage devices
ˉ Distributed generation
ˉ Renewable energy
ˉ Energy efficiency
ˉ Home area networks
ˉ Demand response
ˉ IT and back office computing
ˉ Security
ˉ Integrated communications systems
ˉ Superconductive transmission lines
Key characteristics
of the smart grid
ˉ Self-healing: The grid rapidly detects, analyses, responds, and restores
ˉ Empowers and incorporates the consumer: Ability to incorporate consumer equipment and behaviour in grid design and operation
ˉ Tolerant of attack: The grid mitigates and is resilient to physical/cyber-attacks
ˉ Provides power quality needed by 21st-century users: The grid provides quality power consistent with consumer and industry needs
ˉ 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 end-use efficiency
ˉ Fully enables and is supported by competitive electricity markets
Perfect Power, McGraw Hill, 2009, p. 82.
35
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.
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 to
Improved Profits
ˉ More revenue and improved
collection
Improved operational efficiency
ˉ Reduction in losses
ˉ Reduction in outages
Improved customer service
ˉ Better quality and reliability
of supply
ˉ Quick compliant redressal
Figure 6 – Benefits of Information Flow across the Organization
36
all 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 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.
5 Ref – IT Task Force Report
Figure 7 – Distribution Business Value Chain and Typical IT Applications
37
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:
ˉ Sustained leadership commitment
ˉ Leveraging best practices and realigning the business processes
ˉ Improving the responsiveness of the structure and aligning to changed processes
ˉ Improving the overall quality of data used for implementing the systems
ˉ Securing commitments and ownership of people to the changes and making them
accountable for implementing and operating the new systems
ˉ Providing adequate training and enabling people to enhance their skills
ˉ 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:
ˉ The overall business strategy and needs
ˉ Potential changes to operations
ˉ Potential changes to industry structures (e.g. disaggregation of distribution business into
wires business and information technology)
ˉ 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:
ˉ Application architecture
ˉ Data architecture
ˉ Infrastructure requirements – hardware and network
ˉ IT organisation, processes, policies and standards
ˉ List of business–IT initiatives or projects and implementation plan for the applications to
be used by the organisation over a period of time
ˉ Investment requirements and their phasing
38
The IT applications have been divided into the following four categories:
ˉ Prerequisites – To be established first to allow implementation of subsequent IT
applications
ˉ Short-term – Quick wins
ˉ Medium-term – High return
ˉ Advanced applications
6
6 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}
Figure 8 – Indicative Roadmap for Applications under the Four Categories
39
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 Chain
Management), 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
Meter Info. System Self Service Internet site
AMR, Prepaid metering
OMS / TCMS, WMS Call Centre / IVR / CTI
PMS GIS, SCADA, EMS
Mobile Workforce SFA (Sales Force Automation)
ERP – Finance & Accounts, HR, Procurement, EAM, Decision Support
Data Warehousing, Workflow Management
40
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).
7 Integrated billing system – As Proposed in IT Task force report
Figure 9 – Current Billing System
Figure 10 – Integrated Billing System
41
Figure 11 – Energy accounting System
Figure 12 – Extended Business Interaction System
42
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 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:
ˉ Master Data and Basic Functions ˉ Customer Services
ˉ Work Management ˉ Device Management
ˉ Billing & Invoicing ˉ Energy Data Management
ˉ Contract Accounts
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A complete SAP for Utilities solution should also contain the following SAP products:
ˉ CRM – Customer Relationship Management
ˉ BW – Business Warehouse
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 replicated automatically 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 13 – IS-U/CCS as a component in the ERP solution
Figure 14 – Functional Scope of SAP IS-U
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3.18.2. ERP Modelling 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)
45
3.18.3. Oracle ERP
Oracle helps utilities worldwide meet their biggest business challenges. Today’s 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 utility’s entire initiative.
Figure 17 – The Oracle Solution Footprint for Utilities
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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 well-defined
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 Web-based 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.
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 18 – Layer Interaction in Service-
Oriented Architecture
47
Figure 19 – Delivery Channels for ERP System
48
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.
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
Figure 20 – AMR Architecture
49
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.
Figure 21 – Wireless AMR
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3.19.2.1. 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 shows the updated
reading. User has to put 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.
3.19.2.1.1. Transmission Protocols
3.19.2.1.1.1. Simplex
Communication flow in one direction only – broadcast television or radio
3.19.2.1.1.2. Half duplex
Capable of communication in both directions but not at the same time – ‘walkie-talkies’
3.19.2.1.1.3. Full duplex
Simultaneous two-way communication – the telephone
Figure 22 – GSM Bases AMR
51
3.19.2.1.2. Communication Terminology
3.19.2.1.2.1. Circuit-switched / connection oriented
ˉ Seeking out and establishing a physical copper path end-to-end.
ˉ Implies the need to first set up a dedicated, end-to-end path for the connection before the
information transfer takes place.
ˉ Once the connection is made the only delay is propagation time.
3.19.2.2. 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.
3.19.2.2.1.1. Packet switched / connectionless
ˉ 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.
ˉ No set up is needed.
ˉ Each packet contains information which allows the packet to be individually routed hop-
by-hop.
Figure 23 – Data Transfer over CDMA
52
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 system—the 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).
Figure 24 – Power Line Communication Network
53
CHAPTER – 4
IT IMPLEMENTATION IN
INDIAN DISCOMS – A SURVEY
IN DELHI
54
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 Discom’s 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.
55
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.
Organizations go for ERP because it is a forward looking growth oriented state‐of‐the art
technology infrastructure which would help them achieve:
ˉ Process Improvement ˉ Customer Satisfaction
ˉ Cost Reduction ˉ Cycle‐time reduction
ˉ Profitability Focus ˉ Centralization
ˉ Employee Job satisfaction ˉ Data Security
ˉ Transparency ˉ Regulatory needs
92%
75%
83%
58%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Business ProcessImprovement
Efficiency Improvement Cost Reduction Customer Satisfaction
Dis
com
Res
po
nd
ent
(%)
Prime Objectives
Objectives for ERP implementation by discoms
Figure 25 – Objectives for ERP implementation by discoms
56
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:
ˉ Process Mapping ˉ Data Migration ˉ Change Management
ˉ Customization ˉ Financial justification ˉ Outsourcing issues
ˉ Project Scheduling
4.1.2.1. 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.
4.1.2.2. 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 non‐functioning 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
57
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.
Moreover it is not possible practically to capture all the data (of say last 30‐40 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.
4.1.2.3. 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 Discom’s 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.
4.1.2.4. 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.
4.1.2.5. 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 de‐coupled from operational responsibility, then there is
controversy regarding legitimately accountability for results. If results aren’t forthcoming, the
58
implementers can claim the users aren’t operating it properly, while the users can say that it wasn’t
implemented correctly.
But since the Discom’s 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.
4.1.2.6. Costing and Pay Back Period:
Establishing the costs and benefits of an ERP project is essential. It’s 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 doesn’t carry this high priority, the chances for success decrease.
Their financial impact can be observed by comparing the O&M expenditure of the Utility’s 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.
4.1.2.7. 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.
59
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. Delhi’s model of power reform has been unique, 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 self-sufficiency.
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 Delhi’s 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.
8 The questionnaire with responses of the discoms are in Annexure 1 at the end of the report
60
4.3.1.1. BSES Yamuna Power Limited (BYPL)
BYPL distributes power to an area spread over 200 sq kms with a population density of 5953 per
sq km. Its 11.9lakh customers are spread over 14 districts across Central and East areas including
Chandni Chowk, Daryaganj, Paharganj, Shankar Road, Patel Nagar, G T Road, Karkardooma,
Krishna Nagar, Laxmi Nagar, Mayur Vihar, Yamuna Vihar, Nand Nagri and Karawal Nagar.
4.3.1.2. 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, Vasant Kunj, Saket, Nehru Place, Nizamuddin, Sarita Vihar, Hauz
Khas, R K Puram, Janakpuri, Najafgargh, Nangloi, Mundka, Punjabi Bagh, Tagore Garden, Vikas
Puri, 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.
4.3.2.1. 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
61
to 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 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.
62
9
4.3.2.2. 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 consumer’s 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 company’s Computer Division for generation
of the bill. The divisional office then distributes the printed bills through Bill Distributors.
9 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.
Figure 26 – A Typical BSES AMR Screen
63
4.3.2.3. Collection System At BSES they have a number of collection system available for the ease of consumers.
4.3.3. Other IT enabled Practices at BSES
ˉ No Supply Complaint Registration through SMS
ˉ Retrieval of Billing/Payment details through SMS
ˉ Complaint Registration on IVRS (Interactive Voice Response System) through auto
recognition of telephone number
ˉ 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
ˉ Priority Queue on the IVRS for Fire/Shock related calls
ˉ Estimated wait time and Queue Number announcement on IVRS
ˉ Auto recognition of VIP customers on IVRS & priority service to VIP customers
ˉ 100% Call Recording at the Call Centre
ˉ Caller Line Identification – Computer Telephony Integration at the Call Centre
4.3.3.1. 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
Figure 27 – BSES Bill Payment System
64
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.
4.3.3.2. 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
10 The list and figures are indicative. Please calculate for your appliance and check actual wattage. Ref - BYPL
Citizens Charter 2010
Figure 28 – A handy illustration to calculate the power consumption
65
4.3.3.3. BSES IVRS Service
11
11 Ref - BYPL Citizens Charter 2010
Figure 29 – BSES IVRS Service
66
4.3.4. Implementation Benefits of ERP
ˉ Complete meter records and data are now maintained centrally in SAP
ˉ Validations will be performed to determine missed or faulty Meter Read data
ˉ Storage of historical data and current data facilitates the process of revision
ˉ Automatic calculation of charges, Interest, Taxes & posting to Finance General Ledger
ˉ Scope of manual error and inconsistent data processing decreased through system
validations
ˉ Maintenance notification provides the details like complaints created, complaints
resolved, duration of breakdown etc.
ˉ Task list and Maintenance plan helps to create preventive maintenance schedule and that
can be monitored online
ˉ Cases of wrong calculations of bill payments in legacy system have been detected by
ERP system thereby causing significant economic benefits
ˉ Since 2002 over 1.7 lakh cases of power theft booked
ˉ Over 10.51 lakh KW of power theft load unearthed
ˉ Brings enhanced transparency in the process flow
ˉ The automatic payment process leads to predefined system driven approach
ˉ Availability of desired information to top management in time 12
12 BYPL Citizens Charter 2011
Figure 30 – BYPL - AT&C Loss Reduction
67
4.4. TPDDL (Tata Power Delhi Distribution Ltd)
4.4.1. 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.
68
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.
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.
4.4.2.1. 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.
4.4.2.2. 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.
Tatapower-ddl had a very rudimentary consumer care facilities in July 2002. Each of the 12
districts now has an online consumer care centre each handled by Customer Care Executives under
the supervision of Customer Relation Officers and Customer Service Officers.
69
4.4.2.3. 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.
4.4.2.4. 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.
4.4.2.5. 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.
4.4.3. 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.
The company also have implemented AMR system utilizing GSM technology which enables
remote meter reading. However this system has been implemented for recording meter data of
Key Consumers only.
70
4.4.3.1. 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.
4.4.3.2. 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.
4.4.3.3. 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.
4.4.3.4. Collection System
TPDDL provides its consumer with several modes of bill payment options
ˉ TPDDL Cash Collection Centre and Drop Boxes ˉ Skypad Drop Boxes
ˉ Axis Bank Drop Boxes ˉ Jeevan CSC
ˉ Oxi Cash ˉ ATPM
ˉ Cash Collection Van ˉ ITZ Cash
ˉ Payment through Airtel Mobile ˉ Internet
ˉ Payment by IVRS – 011-49165555 ˉ iPay Electronic Payment Box
ˉ Easy Bill
71
4.4.4. Advantages of Using SAP ISU to TPDDL and Customers
ˉ New SAP based solution has empowered consumers with better real time online facility
to check their customer account details via website
ˉ It has helped the DISCOM to introduce facilities like TOD [Time of day] billing, fuel
surcharge, etc.
ˉ Single integrated solution helps in easy maintenance, scalability and better management
ˉ Easy Integration with OMS (Outage Management System) & GIS
4.4.5. TPDDL SAP ISU Login for Consumers
Figure 31 – TPDDL SAPISU Login screen
72
Figure 32 – TPDDL - Power at your Fingertips
73
CHAPTER – 5
CONCLUSION & THE WAY
FORWARD
74
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.
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
75
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
5.2. THE WAY FORWARD – ERP WITH BI 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:
ˉ Improvements in Integration & Flexibility.
ˉ Extension to e‐Business Applications.
ˉ Broader reach to new users.
ˉ 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.
76
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 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.
77
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.
Figure 33 – Business Intelligence Solution Architecture
78
Business intelligence software applications can be deployed in a number of ways, with the
following being the most common options:
ˉ Cloud Computing (cloud) Implementation: private cloud, hybrid cloud or a public cloud.
ˉ On-Premise Installation: deployed in-house using owned or leased equipment.
ˉ 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 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.
79
ANNEXURES
80
ANNEXURE 1
Information Technology Implementation Questionnaire
BSES Delhi
PART-A {METERING (AMR)}
Q 1. What is the procedure of metering?
a. Manual b. Automated
Q 2. If automated, which categories of consumers are covered?
a. HT b. Commercial c. Every consumer (including LT)
Please Elaborate NA
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?
a. Centralized b. RTU (Remote Terminal Units)
Q 5. What type of Communication technology is being used?
a. CDMA b. GPRS c. PLCC
i. Circuit Switching
ii. Packet 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.
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
a. Network Diagram representation f. System topological information
b. Remote monitoring g. Report generation and Printing
c. Alarm generation h. Real Time monitoring
d. Editing feature i. Load Shedding
e. Customizing j. Any other feature
Q 10. What is the software platform used for MBC?
a. Microsoft b. Oracle c. SAP
Q 11. Have you ever used any MBC solution before the present one?
81
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. Master Data and Basic Functions
b. Customer Services
c. Work Management
d. Device Management
e. Billing & Invoicing
f. Energy Data Management
g. Contract Accounts
h. CRM – Customer Relationship Management
i. BW – Business Warehouse.
j. Any Other
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
82
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.
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
83
TPDDL Delhi
PART-A {METERING (AMR)}
Q 1. What is the procedure of metering?
a. Manual b. Automated
Q 2. If automated, which categories of consumers are covered?
a. HT b. Commercial c. Every consumer (including LT)
Please Elaborate.
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?
a. Centralized b. RTU (Remote Terminal Units)
Q 5. What type of Communication technology is being used?
d. CDMA b. GPRS c. PLCC
i. Circuit Switching
ii. Packet 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.]
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 g. Report generation and Printing
h. Alarm generation h. Real Time monitoring
i. Editing feature i. Load Shedding
j. Customizing j. Any other feature
Q 10. What is the software platform used for MBC?
a. Microsoft b. Oracle c. SAP
All the meter API’s 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
84
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?
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.
Q 15. What are the Major modules implemented under this solution?
e. Master Data and Basic Functions
f. Customer Services
g. Work Management
h. Device Management
i. Billing & Invoicing
j. Energy Data Management (partially)
k. Contract Accounts
l. CRM – Customer Relationship Management
m. BW – Business Warehouse.
n. Any Other
i. UCES for customer e-Services
Q 16. 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/C’s, Touch Screen Kiosks
Q 19. What is the consumer base catered under this solution?
85
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
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
86
ANNEXURE 2
Area of Supply
13
13 Tata Power – DDL was previously NDPL (North Delhi Power Limited)
87
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