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A PRESENTATION ON ELECTRICITY DISTRIBUTION FRANCHISE ON 5 TH NOVEMBER 2008 IN THE ROUND TABLE CONFERENCE ORGANISED BY I

A PRESENTATION ON ELECTRICITY DISTRIBUTION FRANCHISE ON 5 TH NOVEMBER 2008 IN THE ROUND TABLE CONFERENCE ORGANISED BY INFRALINE ENERGY . Presented By B C Jena Director, O&M Solutions Ex Member, OERC Ex CMD, GridCo, Orissa Ex Managing Director , OPGC.

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A PRESENTATION ON ELECTRICITY DISTRIBUTION FRANCHISE ON 5 TH NOVEMBER 2008 IN THE ROUND TABLE CONFERENCE ORGANISED BY I

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  1. A PRESENTATION ON ELECTRICITY DISTRIBUTION FRANCHISE ON 5TH NOVEMBER 2008 IN THE ROUND TABLE CONFERENCE ORGANISED BY INFRALINE ENERGY Presented By B C Jena Director, O&M Solutions Ex Member, OERC Ex CMD, GridCo, Orissa Ex Managing Director , OPGC

  2. OBSERVATIONS OF THE COMMISSION DURING ITS TOUR TO BANGLADESH ON 21st, 22nd, AND 23rd JULY, 2002 TILL 12.00 NOON

  3. A. DHAKA PALLI BIDYUT SAMITY – 1 • Area covered - 1412 Sq. Km • No. of villages - 1111 • Date of energization - 02.06.1980 (take over of the lines and substations from REB) • No. of villages energized - 700 • No. of population - 1,535,000 • No. of population benefited by electricity - 1,048,000 • No. of household - 287,000 • No. of family benefited by electricity - 209,750 • Per capita consumption - 249 KWH

  4. DHAKA PALLI BIDYUT SAMITY – 1 • Directors - 11 • Lady Advisors - 03 • Village Advisors - 591 • Energized line (Km) - 3007 • No. of substation - 14 (33/11 KV) • Total No. of consumers - 1,32,650 (a) Domestic - 1,13,790 (b) Commercial - 12,282 (c) Industry - 3,182 (d) Irrigation Pump - 2,131 (e) Others - 1,265

  5. DHAKA PALLI BIDYUT SAMITY – 1 • System Loss (FY 2001-02) - 9.68% • Bill Collection (FY 2001-02) - 99% • Margin (FY 2001-02) - 580 Million Tk. • No. of employee - 504 • Employee consumer ratio - 1:263 9Desa 1:70) • Maximum Demand - 98 MW

  6. Functional Chart of a PBS - Annexure - I • annexure-1.jpg

  7. Functional Chart of a Zonal Office- Annexxure – II • annexure-2.jpg

  8. Formation of a PBS Board • Board comprises up to 15 members each representing an area of the PBS • Tenure of term is three years rotating elections to maintain continuity • Election conducted by REB officers • One member gets one vote • Women’s interest in PBS management confirmed through use of Lady Advisors – they also can be elected as Directors • Board meets monthly – sets policy

  9. Functions of a PBS Board Establish and maintain legal entity • Registration and Bylaws • Make legal contracts • Defend, protect legal rights Act as trustee of member’s interest with respect to • Soundness of investments • Security of assets • Continuity of enterprise • Quality of service • Prestige and goodwill • Character & personality of the organisation

  10. Functions of a PBS Board Pan with respect • Viewpoints • Objectives • Goals • Policies • Maor Facilities • Resources • Board & annual meeting Provide operating requirements • A qualified general manager • Adequate authority for general manager • Financial resources-cash or credit • Member support • Community support • Productive Board meeting

  11. Functions of a PBS Board Measure and Control • Prevent unauthorized actions • Receive, review adequate reports • Set strategic points for warning signals • Establish standards • Arrange for audit and consulting service as needed; and • Provide reports to members on Board accountability

  12. Steps of electric Connection - Annexure III • annexure-3.jpg

  13. Meter Reading & Billing • One meter reader collects 1700 readings • One billing assistant prepares 1400 bills • One messenger distributes 1700 bills • Ledger posting and aging report 1400 bills per month Electricity Use (2001-2002) • Industry - 71% • Domestic and Others - 24% • Irrigation - 3% • Commercial - 2%

  14. MYMENSINGH PALLI BIDYUT SAMITY-2 (June – 2002) • Area covered - 2568 Sq. Km • No. of villages - 978 • Date of energization - 01.09.1996 • No. of villages energized - 517 • No. of population - 2.1 million • No. of population benefited • by electricity - 0.604 million • No. of household benefited by • electricity - 0.406 million • Employee consumer ratio - 1 : 239

  15. MYMENSINGH PALLI BIDYUT SAMITY-2 (June – 2002) • Number of sub-stations - 9 • a) Constructed - 3 • b) Taken over from DESA - 6 • Allocated line - 2492 KM • Constructed line (with renovation) - 2724 KM • Energized line - 4351 KM • Total No. of connected consumers - 1,03,727 • (a) Domestic - 88,329 • (b) Commercial - 10,783 • (c) Industry - 2,746 • (d) Irrigation - 746 • (e) Others - 1,129

  16. MYMENSINGH PALLI BIDYUT SAMITY-2 (June – 2002) • Power Purchase (Fy.2001-02) - 598.56 (Million Tk.) • System Loss - 24.90% • Loss reduction achieved around 40% in a period of 18 months. • Collection - 92.61%

  17. Salient features of Palli Bidyut Samittees • The Commission analyzed the underlying key factors leading to such spectacular achievements of loss reduction in a short time turning into around from a loss making entity to a profit-making organization. These are as follows:- • Palli Bidyut Samittees (PBS) are users’ Co-operative societies managed by members themselves under the ageies of REB, Bangladesh

  18. Salient features of Palli Bidyut Samittees • The Board of Directors 12 to 15 members are elected through direct secret ballot by consumers, the Election Commission being formed the Rural Electricity Board. Eligibility criteria have been fixed for eligibility of Board of Directors whose tenure are only for three years. • The PBS is strictly apolitical body. • The PBS takes over an area with lines, substations and consumers from REB/Desa without the staff. • Some staff like meter readers and Bill Assistants are appointed by the PBS on contract basis with set targets

  19. Salient features of Palli Bidyut Samittees • When an area is taken over by the PBS the entire areas is physically mapped with respect to number of poles, consumers for each pole, eligible consumers, etc. • The eligible consumers are immediately regularized by providing meters and through deposit of a security of Rs.150/- per KW. The PBS supplies meters, service wires free of cost. Records show that per month the PBS regularizes 15-20 thousand consumers. • The non-standard lines on temporary structures are converted to permanent lines by providing poles etc.

  20. Salient features of Palli Bidyut Samittees • Monthly meter reading and billing is done and bills are served exactly by 1st of each month with 14 days time for payment failing which the lines is disconnected. • Even with manual ledger keeping PBS 1 & 2 have achieved spectacular performance in respect of reducing loss and earning profits. The major thrust by the PBS management is on 100% billing, end over for 100% collection. Extension of line is done in a very systematic way after receipt of deposits from the respective consumers. • Targets fixed for collection of meter reading, preparation of bills and posting in ledgers • Security deposit - 3 months estimated revenue.

  21. Salient features of Palli Bidyut Samittees • For every activity, a set of guidelines have been prepared. • HT to LT net work approximately 60:40 an ideal ratio for loss reduction • Adequate autonomy both administrative and financial for PBS. PBS set their tariff with REB approval. REB gets electricity at a concessional bulk supply rate for resale to PBS. The retail tariff of PBS are 40 to 60% higher than those in non-REB areas. • New PBS areas are supplied with electricity when it satisfies minimum revenue requirement standard. • Some communities may not get electricity until population and associated potential for load growth satisfies REB criteria.

  22. Note on Bangladesh Energy Training Program • During the course of discussion it transpired that the overall distribution loss in Bangladesh is 15%. When I expressed my doubt of such a low loss a software programme was displayed by the Director (Tech.), Dhaka Energy Supply Company Limited bringing out the details of the monitoring the pattern of consumption of consumers as well as the load flow in the substation. In general, the distribution system in Dhaka and other towns like Chittagong, Khulana are predominantly HT based contrary to Indian system to extend LT in a larger way as compared to HT. Normally when load growth takes place in an area, a single phase 11 KV line as a SWER System (Single Ware Earth Return System) is constructed keeping provision for drawing 3 phase line at a later date when load growth takes place.

  23. Note on Bangladesh Energy Training Program • At the load point small single phase distribution transformers of 10-16 KVA capacity is installed to meet the load. By this LT line is practically eliminated. They have metered all the 11 KV feeders including the LV side of 11/0.4 KV distribution transformers as a result they are able to monitor the consumption in an area. If there is wide fluctuation in consumption pattern then load survey is taken up in the area to identify the reasons of such wide fluctuation. • PBS are basically grid connected systems,Loan tenure – 30 years at 3% interest rate with 5 years grace period both for principal and interest

  24. Note on Bangladesh Energy Training Program • Cash flow support for initial 5-6 years provided by REB • Annual performance agreement signed between REB & PBS with targets on 20 parameters with award of bonus for better performance and salary cut for lower achievement. • Regular training for employees as well as PBS members They have also formed Polly BidyutSamiti where clusters of villagers are members of the Samiti. The Samiti takes power supply at single point with bulk rate. The distribution, billing, realization, giving new service connections are taken up by the Samiti. The utility bills the Samiti based on the meter reading of the meter installed in the substation. The permitted loss in the LT side is between 6-8%.

  25. Note on Bangladesh Energy Training Program • They have problems about generation. There is wide gap between supply and demand. Tariff is also very low. They are not able to conclude any IPP projects because of the problem in Pakistan with IPPs and also the experience of Enron in India. It is really interesting to note that prior to independence, Orissa and undivided Bangladesh had the culture, but as far as electricity distribution is concerned Bangladesh is much ahead of not only Orissa but also the country.

  26. O&M Solutions – The Company • A multi-national Engineering service provider company incorporated in Mauritius, with corporate offices at Bangladesh, India & Pakistan and project offices at Nigeria, Dubai and Lebanon. • Strong belief in people and a desire to make a real difference in the world. • Specialized in development of green field power project, management of construction and commissioning and long term O&M of power plant. • Highly experienced core team/ professional management with proven track record in the power industry with “Whatever it Takes” approach.

  27. Business Activities • Project Consultancy & Development • Engineering & Design • Project Construction and commissioning Management • Operation & Maintenance of power plant • Root Cause Failure Analysis. • Risk Engineering Surveys. • Technical due diligence of operating assets. • O&M audit for lender’s requirement • Regulatory advices on Indian Electricity sector.

  28. On Going Projects Worldwide • O&M supervisory of 105 MW diesel Power Plant, Pakistan. • Balloki 235 MW CCPP (Owner’s Engineer & O&M Operator) • Muridke 235MW CCPP (Owner’s Engineer & O&M Operator)- • 235 MW CCGT Sundar Power Project at Pakistan (Owner’s Engineer) • Overall project Supervision of 30 MW CPP of M/s Indian Metal & Ferro Alloys Limited (IMFA) • Project Technical Consultancy of 600 MW thermal power plant in India, M/s KVK Nilachal Power Pvt. Ltd • Performance testing and Guarantee measurement of EPC projects , Operating plants and R&M projects in India , Sri lanka , Pakistan. • O&M Services - 130 MW Saba Power , Pakistan

  29. On Going Projects Worldwide • Maintenance of M/s Jindal Stainless Limited, 125 MW CPP , India. • O&M Advisory services of 450 MW EDL Power Plant, Lebanon. • O&M of 188 MW CCPP, Nigeria. • Project Management services, 2000 MW integrity utility, KESC, Pakistan. • Technical Consulting Services – - Owner’s Engineering Services – • 1000 MW TPP, M/s Indu Projects Limited, Andhra Pradesh. • 600 MW Thermal Power Plant, M/s Avadh Power, Orissa. - Providing Techno-commercial assistance, inputs and evaluation for BTG Proposal Finalization and placement of order for BTG Package.

  30. Thank You

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