Torrent power presentation

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Torrent power a Distribution Franchise …prsented by : Arpit Saran

Transcript of Torrent power presentation

Page 1: Torrent power presentation

Torrent power a Distribution Franchise

…prsented by : Arpit Saran

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Integrated Power Company

Torrent Power – At a glance

Part of Rs. 8200 Crore Torrent Group• Pharma (Turnover ~ Rs. 1916 Crores)• Power (Turnover – Rs. 5958 Crores)

• Licensee in Ahmedabad, Gandhinagar & Surat• Franchisee in Bhiwandi, Agra & Kanpur* Distribution

1647.5 MW Capacity • 500 MW at Ahmedabad• 1147.5 MW near Surat

Generation

• JV with PowerGrid for 400 KV network Transmission

* - yet to takeover operations

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Present Distribution – Drawbacks! Before Torrent

High AT&C losses Frequent power failures due to very old and dilapidated network Massive load shedding Low customer satisfaction

• Customer service standards are poor• Lengthy and tedious mechanisms for resolving consumer

grievances Uninspiring work culture Old and obsolete technologies still being used Unacceptable safety standards

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India Russia China Brazil World

23.2

10.66.7

16.4

8.5

Distribution losses in developing countries in 2008

Source: Think BRIC – Comparative Study of Power Sector by KPMG- Jan 2010

Present Distribution Scenario – High Distribution losses

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The power sector requires huge capital outlay to reduce the current deficit

and to sustain future GDP growth

It is not possible for the government to fund the growth of the sector on its

own

Investment are forthcoming in Generation from the private sector but it is

not sustainable if distribution reforms are not undertaken

The government has embarked on an aggressive mission – “Power for All

by 2010” and the private sector has a key role in achieving the objectives

stated in the mission

Need of the hour

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Benefits of Franchise Model

Reduction in technical losses and theft

Improvement in Metering, Billing and Revenue Collection

Capital investments in upgradation of the network

Enhancement in customer service quality

A win-win scenario for all:Consumers, DISCOM and Franchisee

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Technical Benefits

State of the art distribution system in franchise area

Lower peaking load due to better technical T&D management

Better overall grid stability due to lower system interruptions

Improvement in reliability parameters like SAIFI, SAIDI,

CAIDI, etc.

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Financial Benefits to the State

Assured returns from distribution franchisee

No investment in the franchise area by licensee

Reduction in losses

Contribution to the Government exchequer • Increase in collection of Electricity Duty as the metering and billing

becomes more accurate

• Increase in collection of other Central and State taxes pursuant to growth of economy of franchisee area

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Better services to Customers

Improved services

• Faster new connections/ load extensions

• Lower attendance time for faults

• Grievance Redressal mechanism

• Convenient bill payment facilities

Better availability and quality of power

Increased customer satisfaction

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What is a Franchisee?

As per Definitions of The Electricity Act, 2003

“franchisee” means a person authorised by a distribution licensee to distribute electricity on its behalf in a particular area within his area of supply;

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Features of Input Based Distribution Franchise

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Role of a franchisee

Generation Transmission Distribution

Energy Input Metering

Fault Restoration

O&M

Customer Care

Revenue Collection

ConstructionCAPEX

Planning

Meter Reading

State DISCOM to supply power at

EHV substationsAll Obligation and Rights of a

Distribution Licensee

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Responsibilities of Distribution franchisee

Purchase of power

From Licensee at EHV substations feeding the franchise area

Network Related

Network analysis and improvement planning

Make capital investment for renovation/ upgradation of network

Distribution asset maintenance

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Responsibilities of Distribution franchisee

Consumer Related

Metering

Meter reading

Billing as per Regulatory Commission’s approved Retail Tariff

Collection (both current revenues and arrears)

Issuing new connections

Adherence to all relevant Regulations of ERC including Supply Code

and SOPs

Attending consumer grievances

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Commercial Terms

DF

LICENSEE

Payment by LicenseeIncentive on recovery of arrears

SubsidySpecified payments upon termination / expiry

Payment by DFCharges for input energy as quoted by franchisee

Arrears collectedSecurity Deposit for new connections

Electricity Duty etc

Competitive bidding ensures that the State Discom gets the right price for input energy

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Agra

Area : 188 Sqkms

Population : 23 Lacs

Customer base : 4.2 Lacs

Peak Demand : 420 MVA

Energy Input : 1800 MU

International Tourist Place

33/11KV Substations : 38 Nos

11KV OH Line : 713 Kms

DTCs : 3269 Nos

HT Consumers : 350 Nos

LT Network : 1500 Kms

33KV OH Line : 230 Kms

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Agra : At the time of takeover AT&C losses : 80% Mandatory load shedding of 6 hours at the

time of takeover and subsequently increased to 8 hours

Further distress load shedding due to deficit of 300 MVA in EHV Network

Overstressed distribution Network• Overloading

• Breakdowns / trippings Distribution transformer failure rate of 60% Poor reliability of supply Only 23% of the customers have accurate

metering and there are many unregistered consumers

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Overcoming the Challenge

Problem: Frequent Power Failures

Measures: Failed DT replaced within 24 hours

24 x 7 control room to ensure faster restoration

All DTs revamped

Issue: 2 to 3 DTs failing everyday

Frequent conductor breakdown

Lack of adequate maintenance leading to deterioration

of network

Long restoration time in case of faults

Overloaded System

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Overcoming the Challenge

Problem: Technical Losses

Measures: Reconfigured the existing feeders

Added 29 new feeders to the existing 46 feeders

Added 125 MVA distribution transformer capacity

Proper termination and crimping provided

Installed capacitor banks to improve power factor

Issue: Overloaded feeders leading to higher I2R losses

Improper crimping at joints

Poor power factor of the system

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Distribution System22 KV feeders

Distribution Transformers and FSPs

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Shunt Capacitors

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Overcoming the Challenge

Problem: High Commercial losses

Measures: Provide systematic metering for accurately measuring consumption of the customers

Securitization of the network and extensive vigilance

Filing of FIR in case of repetitive power theft

Streamline processes to improve collection efficiency

“Ujjwal Bhiwandi Abhiyan” for legalising connections

Issue: Only 23% customers metered

Rampant theft of energy

No substantial action against non payment of bills

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Metering

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Overcoming the Challenge

Problem: Safety

Measures: Lines replaced by underground cables at critical locations where clearance are issue

Earthing provided for all poles, transformersRemoval of double feedFencing provided for transformersLines replaced, where necessaryPublic Safety Awareness programs

Issue: Lack of adequate clearance with linesTransformers located at roadsides without any fencingDouble feed through hookingLT/HT lines in poor condition (conductor snapping)

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LT Network Revamping

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Safety

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Overcoming the Challenge

Problem: Customer Service

Measures: Call Center started from Day OneCustomer friendly bill introduced2 Customer Service Centers OpenedCustomer Redressal Mechanism establishedMobile Van as a value added service

Issue: No concept of customer serviceNo consumer redressal systemCustomers had lost confidence in utility

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24 x 7 Call Center

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Customer Care Centers

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The results

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Major Accomplishments :Distribution Transformer Failure Rate

DT Failure Rate reduced by 57%

60% 2.8%

As on April 2010

At the time of takeover

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Major Accomplishments : Load Shedding

Reduction in losses has improved power reliability in the area

10 to 12hours

Less than 3

Hrs

At present

At the time of takeover

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Major Accomplishments : Accurate Metering

99% of sales is based on actual reading.

23% 92%

At present

At the time of takeover

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Key Requirements for DF arrangement

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Key Requirements for DF Arrangement

The required power should be made available• Despite the marked improvement brought in Bhiwandi, change not

visible as load shedding continues• Customers want quality power 24 x 7• Availability of adequate upstream infrastructure (Transmission

Capacity) to cater to the demand in the franchise area• Distributed Generation based Dist Franchisee is a step in the right

direction

Franchise should be provided with adequate power so that the benefits of the improvement are realized

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Thank you