PRESIDENTIAL ADDRESS by Shri B K Das Chairperson, OERC 05.01.2011

1. PRESIDENTIAL ADDRESS by Shri B K Das Chairperson, OERC 05.01.2011

2. KEY INITIATIVES – REFORM PROCESS • Unbundling of integrated entities into generation, transmission and distribution • Setting up of Independent Regulatory Authorities • Campaign to enhance revenues, reduce losses, improve maintenance of networks and enhance customer services • Substantial investments to enhance quality of network • Designating Distribution Circles as Centres of Excellence under APDRP

3. West Bengal State Electricity Distribution Company Ltd. : Organizational transformation • 100% Electronic Metering followed by Energy Auditing and Accounting • Investment of about Rs.100:00 crore – enabled identification of leakages by area – and fixation of accountability on area managers • AT&C losses reduced from 34% in 2002 to current level of about 20%. Reduction monetised and about 15% - 20% paid to employees as incentives • Not investment but Organisational Transformation that is the key factor – complete metering, auditing and accounting done by employees with loyalty, sincerity without strikes or demonstrations • Such transformation possible despite average age of employees in excess of 50 years

4. Gujrat Jyoti Gram Yojana – not subsidy but direct benefit to consumer • GJGY introduced in 2003-04 for Rural areas – ensured 24X7 power supply for domestic use – 8 hrs to agriculture – with 100% electrification of all villages with in 30 months • Separation of domestic and agriculture feeders – by installation of 12,621 new transformers and 56,599 KM of new lines • Reduction in losses by 5% and reduction in transformer failure by 1.5% in 2006 • Study by CII and Institute of Rural Management indicates substantial increase in employment including self-employment and reduction in migration to urban areas by 33% • Average gain of additional work hour by six hours – due to uninterrupted supply

5. North Delhi Power Ltd. (NDPL) – Customer Centric Focus • Automated Meter Reading and Data Analysis (AMRDA) system – remotely downloads data from high value meter to central server – assists in billing, and detecting tampering and theft • SMS based fault management using GSM – ensures supply complaints attended to promptly • Walk in Consumer Care Centres – handled by Customer Care Executives supervised by Customer relations Officers • Centralised Call Centre – for all complaints and enquiries • Consumer Portals for on-line Billing Data along with on-line payment facility - complaint and request registration • Advanced Distribution SCADA system, GIS, ERP – IT application for operational efficiency

6. Andhra Pradesh Southern Power Distribution Company (APSPDC) – Enhanced IT function • CAT (Consumers Analysis Tool) – software to integrate Billing and Collection Data from Private Accounting Agencies (PAA) and consumers – Reveals exception, followed up by field officers • Generates reports in meter irregularities, collection irregularities and First Information Reports of theft cases • Consumer Billing Software – to ensure the PAA are on common platform – generates un-inform data for superior quality maintenance • Transformer Information Management system (TISM) – manages transformer information and tracks transformer life-cycle Assists Vendor analysis on transformer performance • Customer Service Centres, Call Centres Computerised Collection Centre, Spot Billing and E-Seva

7. Distribution AutomationKorean Electric Power corporation • Reduced T&D losses from 29.4% in 1961 to 3.99% • SCADA, DMS (Distribution Management System) advanced application function • Introduction of AMR and integration of AMRs and integration of SCADA, DAS, GIS & AMR • Stepping up of primary distribution and secondary distribution voltage levels • Use of low loss equipments, amorphous core transformers and capacitors • Pilferage inspection teams, disconnection and fines, reconnection only after fines • Consistent incentives/penalties • Entirely computerised Customers Relationship Management System leading to improved Meter to Cash process

8. Boulder City in Colorado USA – the first city in the USA with Smart Grid Technology • Xcel Energy is making Boulder a fully integrated smart grid city • $100 million advanced smart grid project will reach 100,000 homes with environmental, operational and financial benefits • Existing metering structure to connect to robust, dynamic electric system communication network providing real time two way communication through out the grid • Smart sub-stations capable of remote monitoring with real time data and optimised performance • Programmable in-home control devices to fully automate home energy usage based on customer needs • Integration of infrastructure to easily despatched distributed generation technologies such as small wind turbine, solar panels, battery system, etc.

9. 20 / 20 Programme of California– Demand side Management • To avoid Black outs – offered discounts to customers for reducing energy use • If consumer reduced consumption by 20% got rebate of 20% on bill • 1/3 of customers received rebate – energy use reduced by 7% and peak power demand by 10%

10. Thank U