1. Partnerships in Power Franchisees
Shuvendu Patnaik

2. Key Result Areas for Franchisees
Franchisees deal with almost every activity, like a licensee
There are many KRAs
Key for survival
Loss reduction
Revenue realization
Managing cash flow
O&M
Meter reading
These are easier said than done
Grievances & public dealing
Billing
Collection
IUKAN 2013/Session 3/12th February 2013

3. … but he is not entirely to be blamed
Non Technical loss
Technical Loss
33/11 kV S/S
Transformer
loss
No load loss
Load loss
Meters Not read (provisional reading)
Theft or pilferage
Meter Tampering
CT tampering
All energy
purchased
Consumer
33 kV line loss
11 kV line loss
LT line loss
PT Error
Wiring Error
CT/PT nameplate error
Is never paid for fully
Meter Burnt
Metering System Errors
Load loss
No load loss
DT loss
Not sealed
Meters bypassed
kWh
CT Error
Meter Error
Unmatched CT ratio MF
Error
AT&C Loss
Distribution loss
Commercial loss
Meter sl no not matched
Consumer refused access
Meters at height
Collusion of meter readers with consumers
Delay in Meter Reading
Avoidable commercial loss (large)
Meter reading errors
Billing & Bill Distribution errors
Delayed Payment/
Non payment
Coffee shop readings
Display Errors
Meters damaged
Display off
Digits not visible
Meter box locked
Bills delivered
In wrong address
Errors in bill processing & billing
Bills illegible/
damaged
Mismatch in meter & account no. in bill
Consumer does not desire to pay
Billing dispute
Late issue of Notice
Bills not
delivered
Late distribution
Of bills
There are too many contributing factors
Billing not found
Premises locked
Temporarily locked
Permanently locked
Inadvertent reading error
Consumers never pay for everything they consume
Unavoidable technical loss (small)
IUKAN 2013/Session 3/12th February 2013

4. These are the areas where reliable results can be actually delivered
What is it which franchisees are not doing, or can be done differently?
What is it we can contribute, which could be different or unique?
What causes loss  
These are the areas where reliable results can be actually delivered
Lack of reliable measurements
Lack of trustworthy information
‘Where’ a higher loss is taken place
‘What’ intervention is needed
How much Capex would be involved
How long will the the payback be
What would be the ROI
Returns (Technical possibilities due to investment)
There are only two factors
Technical
Administrative x
This is not the domain of technical partners
This is where the skills of franchisee’s management should lie
Administration and enforcement
Need for administrative teeth
Risk arising from legal complications
Dealing with local goons
Political interference
This is where collaboration could be possible
Technical factor
Franchisee business and administrative risks
This is where partnerships can help
What complimentary skills can be brought on the table?
Risk (Technical risk if investments do not deliver expected results)
Partner
Franchisee
IUKAN 2013/Session 3/12th February 2013

5. But these in isolation can never address the problems
Complete range of metering products
But these in isolation can never address the problems
What would be different about this?
Intellectual capital
Secure deals with
Measurements
Revenue protection
Revenue completeness
Something more is needed, which we could provide
Wide range of utility services
In-depth field experience in India
IUKAN 2013/Session 3/12th February 2013

6. Intellectual capital
What would be different about this?
Revenue protection & revenue completeness cover a wide range of individual activities
Choice of meters (specs)
Sound Installation practices
Seals & seal management
Installation audits and field testing (CTs, PTs, meters)
Tamper analysis
Consumer indexing
Consumer meter reading
Energy & loss accounting
Data acquisition from DT & feeder meters
Data validation
What is needed is integration
This is where we could become a technical partner
They are all well known individually
IUKAN 2013/Session 3/12th February 2013

7. Technical partnerships
Assurance
Involvement
Capex and Opex sharing can be discussed and linked to two-way SLAs and reliable measurements
Risk to partner
Supplier, Contractor
Business Partner
Franchisee decides what is needed
Partner decides what is needed
It is possible to have a partnership anywhere along this band
Supplies only what is ordered
Implements whatever is needed
Responsible for timely & quality deliveries
Modifies decisions, as time goes by
Not accountable for results
Fully accountable for results
IUKAN 2013/Session 3/12th February 2013

8. This is where a technical partner can help in many ways
A common problem
A number of problems are often due to
Meter reading and billing errors, integrity issues, delays, etc.
Consumers’ bill-related grievances
Meter reading & billing infrastructure costs, etc.
Poor collection efficiency, perennial defaulters
Need for notices before disconnection, and related social issues
Poor cash flow, long cash cycle, need for Working Capital
This is where a technical partner can help in many ways
IUKAN 2013/Session 3/12th February 2013

9. Benefits Energy accounting would be needed to know if things are fine
Remote display
(3 phase)
(1 phase)
Benefits
Energy billed (Sale)
Actual Consumption
Measured Consumption
Energy realized
Prepayment addresses these problems
Technical Loss
Delivered Energy
Energy accounting would be needed to know if things are fine
Input Energy
Reading errors
Delays, non payment etc.
Revenue
Pilferage
Electrical infrastructure
But energy accounting is tricky and needs special techniques
Tamper & fraud
Metering errors
Billed Energy
Energy input to Franchisee
IUKAN 2013/Session 3/12th February 2013

10. Technical partnerships can become a great enabler for franchisees
Thank you