1 PRESIDENTIAL ADDRESS by Shri B K Das Chairperson, OERC

2 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 KEY INITIATIVES – REFORM PROCESS

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 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 Automation Korean 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