Trim 6 Project - Aniket Wagh

8/12/2019 Trim 6 Project - Aniket Wagh

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WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

SPECIALISATION PROJECT

ON

BILLING AND COLLECTION

A PERENNIAL PROBLEM FOR ELECTRICITY SERVICE PROVIDERS

AN EMPIRICAL STUDY

BY

ANIKET WAGH

PGDM 201214 (OPERATIONS SPECIALISATION)

ROLL NO:- 178

PROJECT FACULTY GUIDE

PROF. _NITIN CHIKHALE


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SYNOPSIS

1. Name of the Student : _ANIKET RAMESH WAGH ___________________________

2. Program & Year :_PGDM 2012-14_______________________________________

3. Area of Project Research : EFFECTIVE BILLING AND COLLECTION SYSTEM IN

ELECTRICITY SERVICE PROVIDERS

4. Name of the Faculty Guide: PROF. NITIN CHIKHALE _

5. Title of the Project : BILLING AND COLLECTION _

A PERENNIAL PROBLEM FOR ELECTRICITY SERVICE_

PROVIDERSAN EMPIRICAL STUDY _

6. Project Details

(A) Objective of study :1. To understand the various domains of Electricity companies such as GENCO,

TRANSCO & DISCOM.

2. To know and understand the AS-IS billing and collection practices followed by variousElectricity companies.

3. To find out different techniques used for generation of bills and payment method used forcollection.

4. To identify issues involved in billing and collection system.5. To identify IT companies which have created IT System for Billing and Collection.6. To understand use of IT System for efficient tracking, monitoring and controlling.7. To recommend improvement areas in billing and collection activities which in turn

encourage commercial and operational efficiencies for aiding the expansion and deliveryof improved, reliable and sustainable services.

(B) Research Methodology:Step I: Collection of primary data (using questionnaire, personal visits & surveys) and

secondary data (through library study publications, Journals etc.)Step II: Tabulation and presentation of data collected.Step III: Analysis of above tabulated data, using statistical & financial tools.Step IV: Drawing conclusions and giving suggestions

Faculty Guide: Student:

Name: _PROF. NITIN CHIKHALE __________ Name: ANIKET RAMESH WAGH

Contact No: +91-9833644522

Signature: _____________________________ Signature:___________________

Date: _________________________________ Date: 06/02/2014


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Record of interactive sessions with Faculty Guide during preparation of Specialization

Project

Interactive Session No. Date Signature of Faculty Guide

1.

2.

3.


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PROJECT COMPLETION CERTIFICATE

This is to certify that project titled BILLING AND COLLECTIONA PERENNIAL

PROBLEM FOR ELECTRICITY SERVICE PROVIDERSAN EMPIRICAL STUDY

is successfully done by Mr. ANIKET RAMESH WAGHin partial fulfillment of his / her two

years full time course Post Graduation Diploma in Management recognized by AICTE through

the Print. L. N. Welingkar Institute of Management Development & Research, Matunga,

Mumbai.

This project in general is done under my guidance.

___________________________(Signature of Faculty Guide)

Name: Prof. Nitin Chikhale

Date:


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ACKNOWLEDGEMENT

The success and final outcome of this project required a lot of guidance and assistance from

many people and I am extremely fortunate to have got this all along the completion of my project

work. Whatever I have done is only due to such guidance and assistance and I would not forget

to thank them.

I owe my profound gratitude to my mentor Prof. Nitin Chikhale, who took keen interest on my

project work and guided me all along, till the completion. I am thankful to him for his endeavour

towards providing continuous guidance to help build an understanding of the practical aspects of

the work, gain knowledge & valuable experiences. I am grateful to him for his outreaching

support and helping to build a motivating work environment and inculcating a feeling of

constantly striving to achieve higher goals.

ANIKET WAGH

Welingkar Institute of Management Development and Research, Mumbai


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Contents

1. Overview ................................................................................................................................. 8

1.1 Electricity Generation ......................................................................................................... 10

1.2 Electricity Transmission ...................................................................................................... 11

1.3 Electricity Distribution ........................................................................................................ 12

2. History and Present Scenario of Power Companies in India ................................................. 13

2.2 Public Sector Units in Power Sector: .................................................................................. 14

2.3 Private Company in Power Sector: ..................................................................................... 15

2.4 State Electricity Board in Power Sector: ............................................................................. 15

3. Electricity Sector in India ...................................................................................................... 16

3.1 Demand Trends of Electricity in India ........................................................................... 17

4. Maharashtra State Electricity Board ...................................................................................... 20

4.1 Maharashtra State Power Generation Company Limited .................................................... 20

A Power Generating Utility ................................................................................................... 21

Salient Features...................................................................................................................... 21

MahaGenco Capacity ............................................................................................................ 22

4.2 Maharashtra State Electricity Transmission Company Limited ......................................... 23

Innovations at MahaTransco ................................................................................................. 25

4.3 Maharashtra State Electricity Distribution Company Limited ............................................ 25MahaDiscom Important Project ............................................................................................. 26

Loss Reduction Plans............................................................................................................. 27

Zero Load Shedding Model ................................................................................................... 28

5. R-APDRP .............................................................................................................................. 29

6. ELECTRICITY METERING, BILLING AND COLLECTION .......................................... 30

Metering Of Electricity: ............................................................................................................ 30

Billing & Collection: ................................................................................................................. 33

Issues involved in Billing & Collection: ................................................................................... 36

7. IT Solution offered for billing and collection ........................................................................ 37

Proposed Model......................................................................................................................... 39

Meter Reading Service by SAP ................................................................................................. 40

Improved Customer Care .......................................................................................................... 41


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Bill preparation and invoicing ................................................................................................... 41

Receivables and collections management ................................................................................. 42

SAPs answer to Customer pain points..................................................................................... 43

8. Appendix ............................................................................................................................... 44

9. Abbreviations......................................................................................................................... 45


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1. OverviewThe power sectorin India is mainly governed by the Ministry of Power. There are three majorpillars of power sector these are Generation, Transmission, and Distribution. As far as generation

is concerned it is mainly divided into three sectors these are Central Sector, State Sector, andPrivate Sector.

Central Sector or Public Sector Undertakings (PSUs), constitute 29.78% (62826.63MW) oftotal installed capacity i.e, 210951.72 MW (as on 31/12/2012) in India. Major PSUs involved inthe generation of electricity includeNHPC Ltd., NTPC Ltd.,, andNuclear Power Corporation ofIndia (NPCIL).

Besides PSUs, several state-level corporationsare there which accounts for about 41.10%ofoverall generation , such as Jharkhand State Electricity Board (JSEB), Maharashtra StateElectricity Board (MSEB), Kerala State Electricity Board (KSEB), in Gujarat (MGVCL,

PGVCL, DGVCL, UGVCL four distribution Companies and one controlling body GUVNL, andone generation company GSEC), are also involved in the generation and intra-state distributionof electricity.

Other than PSUs and state level corporations, private sector enterprisesalso play a major rolein generation, transmission and distribution, about 29.11%(61409.24MW) of total installedcapacity is generated by private sector.

The PowerGrid Corporation of India is responsible for the inter-state transmission ofelectricity and the development of national grid.

The Ministry of Poweris the apex body responsible for the development of electrical energy inIndia. This ministry started functioning independently from 2 July 1992; earlier, it was known asthe Ministry of Energy. The Union Minister of Power at present is Sushilkumar Shinde andMinister of State for Power is K.C Venugopal.
http://indianpowersector.com/home/wp-content/uploads/2010/09/power-minister-conf1.jpg


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India is worlds 6th largest energy consumer, accounting for 3.4% of global energyconsumption, with Maharashtra as the leading electricity generator among Indian states. Due toIndiaseconomic rise, the demand for energy has grown at an average of 3.6% per annum overthe past 30 years. At the end of December 2012, the installed power generation capacity of Indiastood at 210951.72MW, while the per capita energy consumption stood at 733.54 KWh

(2008-09). The Indian government has set an ambitious target to add approximately 78,000 MWof installed generation capacity by 2012. The total demandfor electricity in India is expected tocross 950,000 MW by 2030.

India is the sixth largest in terms of power generation. About 65%of the electricity consumedin India is generated by thermal power plants, 22% by hydroelectric power plants, 3% bynuclear power plants and rest by 10%from other alternate sources like solar, wind, biomass etc.53.7% of Indias commercial energy demand is met through the countrys vast coalreserves. The country has also invested heavily in recent years on renewable sources of energysuch as wind energy. As of March 2011, Indias installed wind power generation capacity stoodat about 12000 MW. Additionally, India has committed massive amount of funds for theconstruction of various nuclear reactors which would generate at least 30,000 MW. In July 2009,India unveiled a $19 billion plan to produce 20,000 MW of solar power by 2020 under

National Solar Mission.

The per capita power consumption in India is 733.54KWh/yr, which is very minimal ascompared to global averageof 2340KWh/yr.

Electricity losses in India during transmission and distribution are extremely high, about28.44% (2008-09). India needs to tide over a peak power shortfall of 13% between 5pm and11pmby reducing losses due to theft and pilferage. Due to shortage of electricity, power cuts are
http://indianpowersector.com/home/wp-content/uploads/2010/09/NTPC-ltd1.jpg


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common throughout India and this has adversely effected the countrys economic growth. Theftof electricity, common in most parts of urban India, amounts to 1.5% of Indias GDP. Thecondition of uti li ties are not good either, cumulative loss of 110 power uti li ties are estimated as

Rs 86,136 crore which i s expected to to r ise to Rs 1,16,089 crore by 2014-15. Despite anambitious rural electrification program, some 400 million Indians lose electricity access during

blackouts. While 84.9% of Indian villages have at least an electricity line, just 46 percent ofrural households have access to electricity.

1.1 Electricity Generation

(Data Sour ce CEA, as on 31/12/2012)

The data below are in MW

Captive Genrating capacity connected to the Grid (MW) = 34444.12 The state of Maharashtra is the largest producer of thermal power in the country. India was one of the pioneering countries in establishing hydro-electric power plants. The

power plant at Darjeeling and Shimsha (Shivanasamudra) was established in 1898 and1902 respectively and is one of the first in Asia.

R.E.S. INCLUDES :- SHP 2900 MW , WIND 12000 MW,B.P. & B.G. 2313.33MW, U&I & SOLAR114.74 MW

(SHP SMALL HYDRO POWER, B.P. BIOMASS POWER, B.G.- BIOMASSGASIFIER, U&IURBAN & INDUSTRIAL WASTE)

COAL GAS

DIESE

L

NUCLE

AR HYDRORES TOTAL

PERCE

NTAGE(

%)

STATE

SECTOR 49933.00 5215.32 602.61 0.00 27395.0 3569.9286715.8

5 41.10%

CENTRAL

SECTOR 41995.00 6702.23 0.00 4780.00 9349.4 0.0062826.6

3 29.78%

PRIVATE

SECTOR 28945.38 6985.50 597.14 0.00 2595.0 22286.2261409.2

4 29.11%

TOTAL 120873.3818903.051199.75 4780.00 39339.4 25856.14210951.

72

PERCENTAG

E(%) 57.29% 08.96% 0.57% 2.27% 18.65% 12.26% 100.00%


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1.2 Electricity Transmission

A power transmission cable operated by BEST in Mumbai, India.

Transmission of electricity is defined as bulk transfer of power over a long distance at highvoltage, generally of 132kV and above. In India bulk transmission has increased from 3,708 ckmin 1950 to more than 166000ckm, out of which 75556ckm is transmitted by Power GridCorporation of India (as on 30 Sep. 2010). The entire country has been divided into fiveregions for transmission systems, namely, Northern Region, North Eastern Region, EasternRegion, Southern Region and Western Region. The Interconnected transmission systemwithin each region is also called the regional grid.

The transmission system planning in the country, in the past, had traditionally been linked togeneration projects as part of the evacuation system. Ability of the power system to safelywithstand a contingency without generation rescheduling or load-shedding was the main criteriafor planning the transmission system. However, due to various reasons such as spatialdevelopment of load in the network, non-commissioning of load center generating unitsoriginally planned and deficit in reactive compensation, certain pockets in the power systemcould not safely operate even under normal conditions. This had necessitated backing down ofgeneration and operating at a lower load generation balance in the past. Transmission planninghas therefore moved away from the earlier generation evacuation system planning to integratesystem planning.


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While the predominant technology for electricity transmission and distribution has beenAlternating Current (AC) technology, High Voltage Di rect Cur rent (HVDC) technology hasalso been used for in terconnection of all regional grids across the country and for bulk

transmission of power over long distances.

Certain provisions in the Electricity Act 2003 such as open access to the transmission anddistribution network, recognition of power trading as a distinct activity, the liberal definition of acaptive generating plant and provision for supply in rural areas are expected to introduce andencourage competition in the electricity sector. It is expected that all the above measures on thegeneration, transmission and distribution front would result in formation of a robust electricitygrid in the country.

1.3 Electricity Distribution

The total installed generating capacity in the country is 210951.72MW,and the totalnumber of consumers is over 146 million. Apart from an extensive transmission system networkat 500kV HVDC, 400kV, 220kV, 132kV and 66kV which has developed to transmit the powerfrom generating station to the grid substations, a vast network of sub transmission in distribution

system has also come up for utilization of the power by the ultimate consumers.

However, due to lack of adequate investment on transmission and distribution (T&D) works, the

T&D losses have been consistently on higher side, and reached to the level of 28.44% in the

year 2008-09.The reduction of these losses was essential to bring economic viability to the State

Utilities.


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As the T&D loss was not able to capture all the losses in the net work, concept of Aggregate

Technical and Commercial (AT&C) loss was introduced. AT&C loss captures technical as

well as commercial losses in the network and is a true indicator of total losses in the system.

High technical losses in the system are primarily due to inadequate investments over the years

for system improvement works, which has resulted in unplanned extensions of the distributionlines, overloading of the system elements like transformers and conductors, and lack of adequate

reactive power support.

The commercial losses are mainly due to low metering efficiency, theft & pilferages. This may

be eliminated by improving metering efficiency, proper energy accounting & auditing and

improved billing & collection efficiency. Fixing of accountability of the personnel / feeder

managers may help considerably in reduction of AT&C loss.

With the initiative of the Government of India and of the States, the Accelerated Power

Development & Reform Programme (APDRP) was launched in 2001. APDRP meant to

upgrade the distribution system, minimize transmission and distribution losses, improve meteringand assign responsibility for the realization of user charges has not been able to bring down

losses to 15% by the end of 2007, as originally targeted in 2000-01.

The APDRP programme is being restructured by the Government of India, so that the desired

level of 15% AT&C loss could be achieved by the end of 11th plan.(estimated plan cost

Rs50000 crore)

The main objective of the programme was to bring Aggregate Technical & Commercial (AT&C)

losses below 15%in five years in urban and in high-density areas. The programme, along with

other initiatives of the Government of India and of the States, has led to reduction in the overall

AT&C loss from 38.86% in 2001-02 to 28.44% in 2008-09.

RGGVY, which had a target of providing electricity to 125,000 villages and connecting 23

million below-poverty-line householdsacross the country by 31 March, has also been faltering.

2. History and Present Scenario of Power Companies in IndiaWhen India became independent in 1947, the country had a power generating capacity of 1,362MW. Generation and distribution of electrical power was carried out primarily by private utilitycompanies. Notable amongst them and still in existence is Calcutta Electric. Power was available

only in a few urban centers; rural areas and villages did not have electricity.

After 1947, all new power generation, transmission and distribution in the rural sector and theurban centers (which was not served by private utilities) came under the purview of State andCentral government agencies. State Electricity Boards (SEBs) were formed in all the states.

National Thermal Power Corporation (NTPC), National Hydro-electric Power Corporation(NHPC) and Power Grid Corporation Limited (PGCL) were formed by the government to assist


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Nuclear Power Corporation of India Limited NHPC Limited NTPC Limited

2.3 Private Company in Power Sector:

Adani Tata Power Company Ltd. Suzlon Reliance Power Limited

2.4 State Electricity Board in Power Sector:

West Bengal State Electricity Board Tamil Nadu Electricity Board Uttarakhand Electricity Board UP Electricity Board Rajasthan Electricity Board Punjab State Electricity Board Orissa Electricity Board Maharashtra Electri city Board Madhya Pradesh Electricity Board Kerala State Electricity Board Karnataka State Electricity Board Jharkhand State Electricity Board Jammu & Kashmir Electricity Board Himachal Pradesh Electricity Board Haryana Electricity Board Gujarat Electricity Board Goa Electricity Board Delhi Electricity Board Chattissgarh Electricity Board


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Assam Electricity Board Arunachal Pradesh Electricity Board Andhra Pradesh Electricity Board

3. Electricity Sector in IndiaThe electricity sector in India had an installed capacity of 233.929 GW as of December 2013, theworld's fourth largest. Captive power plants generate an additional 34.444 GW. Non RenewablePower Plants constitute 87.55% of the installed capacity, and Renewable Power Plants constitutethe remaining 12.45% of total installed Capacity. India generated around 911 BU (911,652 MUi.e. 911 TWh) of electricity (excluding electricity generated from renewable and captive powerplants) during the 201213 fiscal. The total annual generation of electricity from all types ofsources was 1053.9 TeraWatt-hours (TWh) in 2012.

In terms of fuel, coal-fired plants account for 59% of India's installed electricity capacity,compared to South Africa's 92%; China's 77%; and Australia's 76%. After coal, renewablehydropower accounts for 17%, renewable energy for 12% and natural gas for about 9%.

In December 2011, over 300 million Indian citizens had no access to frequent electricity. Overone third of India's rural population lacked electricity, as did 6% of the urban population. Ofthose who did have access to electricity in India, the supply was intermittent and unreliable. In2010, blackouts and power shedding interrupted irrigation and manufacturing across the country.States such as Gujarat, Madhya Pradesh and others provide continuous power supply.

The per capita average annual domestic electricity consumption in India in 2009 was 96 kWh in

rural areas and 288 kWh in urban areas for those with access to electricity, in contrast to theworldwide per capita annual average of 2600 kWh and 6200 kWh in the European Union. India'stotal domestic, agricultural and industrial per capita energy consumption estimate variesdepending on the source. Two sources place it between 400 to 700 kWh in 20082009. As ofJanuary 2012, one report found the per capita total consumption in India to be 778 kWh.

India currently suffers from a major shortage of electricity generation capacity, even though it isthe world's fourth largest energy consumer after United States, China and Russia.

The International Energy Agency estimates India will add between 600 GW to 1200 GW ofadditional new power generation capacity before 2050. This added new capacity is equivalent to

the 740 GW of total power generation capacity of European Union (EU-27) in 2005. Thetechnologies and fuel sources India adopts, as it adds this electricity generation capacity, maymake significant impact to global resource usage and environmental issues.

India's electricity sector is amongst the world's most active players in renewable energyutilization, especially wind energy. As of December 2013, India had an installed capacity ofabout 29.5 GW of renewal technologies-based electricity, exceeding the total installed electricitycapacity in Austria by all technologies.


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According to some ambitious estimates, India has 10,600 MW of potential in the geothermalprovinces but it still needs to be exploited.

India's network technical losses is 23.65% in 2013, compared to world average of less than 15%.

The Government has pegged the national T&D losses at around 24% for the year 2011 & has seta target of reducing them to 17.1% by 2017 & to 14.1% by 2022. A high proportion of non-technical losses are caused by illegal tapping of lines, and faulty electric meters thatunderestimate actual consumption also contribute to reduced payment collection. A case study inKerala estimated that replacing faulty meters could reduce distribution losses from 34% to 29%.

Key implementation challenges for India's electricity sector include new project managementand execution, ensuring availability of fuel quantities and qualities, lack of initiative to developlarge coal and natural gas resources present in India, land acquisition, environmental clearancesat state and central government level, and training of skilled manpower to prevent talentshortages for operating latest technology plants.

3.1Demand Trends of Electricity in IndiaIn a May 2011 report, India's Central Electricity Authority anticipated, for 201112-year, a baseload energy deficit and peaking shortage to be 10.3% and 12.9% respectively. The peakingshortage would prevail in all regions of the country, varying from 5.9% in the North-Easternregion to 14.5% in the Southern Region. India also expects all regions to face energy shortagevarying from 0.3% in the North-Eastern region to 11.0% in the Western region. India's CentralElectricity Authority expects a surplus output in some of the states of Northern India, those withpredominantly hydropower capacity, but only during the monsoon months. In these states,


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shortage conditions would prevail during winter season. According to this report, the five stateswith largest power demand and availability, as of May 2011, were Maharashtra, Andhra Pradesh,Tamil Nadu, Uttar Pradesh and Gujarat.

In late 2011 newspaper articles, Gujarat was declared a power surplus state, with about 23 GW

more power available than its internal demand. The state was expecting more capacity to becomeavailable. It was expecting to find customers, sell excess capacity to meet power demand in otherstates of India, thereby generate revenues for the state.

Despite an ambitious rural electrification program, some 400 million Indians lose electricityaccess during blackouts. While 80% of Indian villages have at least an electricity line, just 52.5%of rural households have access to electricity. In urban areas, the access to electricity is 93.1% in2008. The overall electrification rate in India is 64.5% while 35.5% of the population still livewithout access to electricity.

According to a sample of 97,882 households in 2002, electricity was the main source of lighting

for 53% of rural households compared to 36% in 1993.

The 17th electric power survey of India report claims:

Over 201011, India's industrial demand accounted for 35% of electrical powerrequirement, domestic household use accounted for 28%, agriculture 21%, commercial9%, public lighting and other miscellaneous applications accounted for the rest.

The electrical energy demand for 201617 is expected to be at least 1392 Tera WattHours, with a peak electric demand of 218 GW.

The electrical energy demand for 202122 is expected to be at least 1915 Tera WattHours, with a peak electric demand of 298 GW.

If current average transmission and distribution average losses remain same (32%), India needsto add about 135 GW of power generation capacity, before 2017, to satisfy the projected demandafter losses.

McKinsey claims that India's demand for electricity may cross 300 GW, earlier than mostestimates. To explain their estimates, they point to four reasons:

India's manufacturing sector is likely to grow faster than in the past Domestic demand will increase more rapidly as the quality of life for more Indians

improve

About 125,000 villages are likely to get connected to India's electricity grid Currently blackouts and load shedding artificially suppresses demand; this demand will

be sought as revenue potential by power distribution companies

A demand of 300 GW will require about 400 GW of installed capacity, McKinsey notes. Theextra capacity is necessary to account for plant availability, infrastructure maintenance, spinningreserve and losses.


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In 2010, electricity losses in India during transmission and distribution were about 24%, whilelosses because of consumer theft or billing deficiencies added another 1015%.

According to two studies published in 2004, theft of electricity in India, amounted to anationwide loss of $4.5 billion. This led several states of India to enact and implement regulatory

and institutional framework; develop a new industry and market structure; and privatizedistribution. The state of Andhra Pradesh, for example, enacted an electricity reform law;unbundled the utility into one generation, one transmission, and four distribution and supplycompanies; and established an independent regulatory commission responsible for licensing,setting tariffs, and promoting efficiency and competition. Some state governments amended theIndian Electricity Act of 1910 to make electricity theft a cognizable offence and impose stringentpenalties. A separate law, unprecedented in India, provided for mandatory imprisonment andpenalties for offenders, allowed constitution of special courts and tribunals for speedy trial, andrecognized collusion by utility staff as a criminal offence. The state government made advancepreparations and constituted special courts and appellate tribunals as soon as the new law cameinto force. High quality metering and enhanced audit information flow was implemented. Such

campaigns have made a big difference in the Indian utilities bottom line. Monthly billing hasincreased substantially, and the collection rate reached more than 98%. Transmission anddistribution losses were reduced by 8%.


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4. Maharashtra State Electricity BoardMaharashtra State Electricity Board (or MSEB) is a state-owned electricity regulation boardoperating within the state of Maharashtra in India. The MSEB was formed on June 20, 1960under Section 5 of the Electricity (Supply) Act, 1948. As of 1998, it was the second largest

electricity generating utility in India after National Thermal Power Corporation.

The company's predecessor was the Bombay Electricity Board which was formed on November6, 1954 and operated up to March 31, 1957 when it was renamed to Bombay State ElectricityBoard which operated until June 19, 1960. The result of an collaboration between the MSEB andEnron was the Ratnagiri power plant. In accordance with Electricity Act 2003 of Government ofIndia (Maharashtra State Govt.vide G.R.No. ELA-1003/P.K.8588/Bhag-2/Urja-5 Dated 24-01-2005), the Maharashtra State Electricity Board was restructured into 4 companies w.e.f. 6 June2005. These companies were registered with Company Registrar, Mumbai on 31 May 2005 asfollows:

4.1 Maharashtra State Power Generation Company Limited

Maharashtra State Power Generation Co Ltd. (hereinafter referred to as The Company) hasbeen incorporated under Indian Companies Act 1956 pursuant to decision of Govt. ofMaharashtra to reorganize Erstwhile Maharashtra State Electricity Board (herein afterreferred to as MSEB). The said reorganization of the MSEB has been done by Govt. ofMaharashtra pursuant to Part XIII read with section 131 of The Electricity Act 2003. Mahagencohas been incorporated on 31.5.2005 with The Registrar of Companies, Maharashtra, Mumbai and


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has obtained Certificate of Commencement of Business on 15.09.2005. Mahagenco is engaged inthe business of generation and supply of Electricity and has been vested with generation assets,interest in property, rights and liabilities of MSEB as per Gazette Notification dated 4th June2005 issued by Industry, Energy and Labour Dept of Govt of Maharashtra pursuant to section131 of Electricity Act 2003.

A Power Generating Utility

Mahagencohas the highest overall generation capacity and the highest thermal installedcapacity amongst all the state power generation utilities in india. In terms of installedcapacity, it is the second highest generation company after NTPC.

Mahagenco having generation capacity of 10737 MW comprising 7480 MW thermal,2585 MW hydel and 672 MW gas turbine; was established by government ofmaharashtra under the central electricity act-2003 with the principal objective ofengaging in the business of generation of electricity, & mahagenco produces cheapestpower for consumers in state.

Mahagencois committed to expanding the generation capacity to meet the ever-growingpower supply need of maharashtra. The company is implementing a huge capacityaddition programme.

Mahagencogenerates power for more than 1,50,00,000 end consumers in Maharashtra ateconomical and affordable rates.

Mahagencobelieves in quality management. All major thermal, hydel and gas turbinepower stations have adopted the ISO 9001:2000 certification.

Mahagencois an eco-friendly power generating company and has received certificationunder ISO:14001 and ISO:18001 for its major power stations at Chandrapur, Koradi,Khaperkheda, Nasik, Parli and at Koyna and Uran power stations also.

Mahagenco has a gross fixed asset base of Rs. 16,504 crores (March 2012) with anannual turn over of about Rs. 12,742 crores. (March 2012).

Mahagencois powered by a dedicated and committed highly skilled work force of morethan 15000.

Mahagenco is one of the major state utilities which have been allotted a captive coalmine at Macchakata (Orissa), Chendipada (Talcher Coal Field) and Mahajanwadi(Kamptee Coal Field) for meeting its own power generation needs in future.

Salient Features

Mahagenco is the only State Utility having a very well balanced generation portfolioinvolving thermal, hydel and gas stations. The first 500 MW plant to be installed in any

State Utility belongs to Maharashtra. Mahagencohas introduced latest technologies at its on going power projects. Mahagenco is implementing R&M work of, some of its 210 MW old units at

Chandrapur, Koradi, Bhusawal, Parli & Nasik. Mahagencobelieves in conservation of natural resources. Towards this purpose, it has

Ash Water Recovery System, Effluent Treatment Plant, which functions to internationalstandards.


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Mahagenco as a part of its commitment to the greener and cleaner world, has plantedgreen belt all over available land in and around all power stations and power projectspremises as well.

Mahagenco is a pioneer in utilization of Fly Ash. We alongwith Tifac run Fly AshUtility awareness programme on a regular basis. The Fly Ash from our plants is used for

a wide range of activities spanning agriculture to cement manufacture. Also use of FlyAsh for mine stoving is under trial. At present, our Fly Ash Utilization is about 58% andwill reach to 100% within next few years.

Mahagenco strongly believes in continuous training and skill upgradation of itsemployees. We run training centres at Koradi and Nasik. Similarly, training sub-centreshave been established at all major power stations. Mahagencohas pioneered the use ofPC based Simulator for training generation engineers, both Within and outside thecompany.

Mahagencohas a strong commitment to community development. The company have itsown policy for Corporate Social Responsibility (CSR) and necessary funding is beingprovided for various development work in the vicinity of our all projects and in line with

needs of local community. The company conducts and operate Recreation and WelfareCentres and also has its own Dispensary to ensure better health conditions of itsemployees.

Mahagencohave established its first of its kind centralized generation control room atcorporate office for monitoring on-line real time parameters for economical loaddispatch.

Mahagencohave recently introduced SAP-ERP system in its overall working.MahaGenco Capacity

Mahagenco has an installed capacity of 10737 MW, of which nearly 70% comprises of Thermalcapacity (7480 MW), one gas based generating station at Uran installed capacity of 672 MW.The Hydro Electric Projects in the State of Maharashtra were designed, erected andcommissioned through the Water Resource Department (WRD) of GoM. After commissioning,the hydro projects were handed over on long term lease to Mahagenco for purpose of Operationand Maintenance. Presently there are 27 hydel projects having a capacity of 2585 MW.

Mahagenco also is implementing capacity additions programmes of about 17040 MW. Projectexecution works of 3730 MW projects are in full swing and 8850 MW project are in advancedstages of planning. Further Mahagenco identified land for 3960 MW projects in various locationof Maharashtra.

Mahagenco is aware of next green power scenario of power generation from nonconventionalenergy resources and have clear vision for Green Power for the people in Maharashtra.Accordingly to fulfill Renewable Power Obligation of distribution companies in Maharashtra,Mahagenco has planned to setup about 650 MWp solar power projects in various locations ofMaharashtra.


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INSTALLED CAPACITY OF MAHAGENCO:

SR.NO.

POWER STATION UNITS & SIZE(MW)INSTALLED

CAP.(MW)

A THERMAL POWER STATIONS

1 KORADI 5 TO 7 1x200 + 2x210 6202 NASIK 3 TO 5 3x210 630

3 BHUSAWAL 2 TO 4 2x210 + 1x500 920

4 PARAS 3 & 4 2x250 500

5 PARLI 3 TO 7 3x210+ 2x250 1130

6 K'KHEDA 1 to 5 4x210 + 1x500 MW 1340

7 CHANDRAPUR 1 TO 7 4x210 + 3x500 2340

MAHAGENCO THERMAL 7480

BGAS TURBINE POWER

STATION

URAN G.T. 4x108 432W.H.R. 1&2 2x120 240

MAHAGENCO GAS 672

C HYDRO POWER STATIONS

KOYNA HYDROSt I&II- 4x70 + 4x80, St III- 4x80,St. IV-4x250 & Koyna Dam foot-

2x181956

SMALL HYDRO 379

GHATGHAR PUMP STORAGE 2x125 250

MAHAGENCO HYDRO 2585

MAHAGENCO TOTAL (A+B+C) 10737

4.2 Maharashtra State Electricity Transmission Company Limited

Maharashtra State Electricity Transmission Company limited, a wholly owned corporate entityunder the Maharashtra Government, was incorporated under the Companies Act, in June, 2005after restructuring the erstwhile Maharashtra State Electricity Board to transmit electricity fromits point of Generation to its point of Distribution.

It owns and operates most of Maharashtras Electric Power Transmission System. MSETCL

operates a transmission network of 39871 Circuit KM of transmission lines and 559 EHVSubstations with 89178 MVA transformation capacity. This infrastructure constitutes most of theinter-regional as well as intra-regional electric power transmission system in the State. Today,MSETCL is the largest state transmission utility in the country.

The company also has the distinction of being the only power utility in the state sector to ownHVDC lines. The Company operates a 752 km long, 1500 MW, 500 KV bi-polar HVDC linefrom Chandrapur to Padghe. This has been marked as a major success as electric power is


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generated in east Maharashtra, due to easy availability of coal, whereas the bulk use of power isin the western part of Maharashtra in and around cities such as Mumbai, Pune and Nashik. Thepower losses are very low in the HVDC line. As a result, the power received at Padghe ispractically the same as what is injected at Chandrapur.

The load dispatch center is the nerve center for the operation, monitoring and control of thepower system. The SLDC Kalwa near Mumbai is fully computerized and has ultra-modernfacilities. Mahatransco also has a Load Dispatch center at Ambazari near Nagpur. To keep upwith the increase in Power generation in the next 5 years, Mahatransco also has planned toestablish a robust transmission network. It is implementing an ambitious expansion plan over theperiod 2011-12 to 2015-16, to meet the evacuation and grid strengthening needs of the future.The adoption of predictive maintenance practices has helped the company to reduce interruptionsand improve the networks availability to 99.70%.

At MSETCL, thrust is given on innovation for value creation and cost optimization. It hasinstalled ABT metering at 530 Sub-stations for energy accounting purposes and implementation

of FBSM. The ERP system is fully integrated and being put into use, where functions of keydepartments are on line. To set up a comprehensive communication network by utilizing existinginfrastructure, an Optic Fiber communication system of about 2801 Km is being installed. It hasalso experimented with unmanned remotely controlled substations at two locations and GISsubstations at Bhandup and Hinjewadi. To raise funds from the market for equity capital/ capexschemes and to reduce its interest burden, MSETCL is readying itself for the launch of an IPO. Ithas undertaken an ambitious task of establishment of a 765 KV substation at Aurangabad. TheState Load Dispatch Centre (SLDC) at Kalwa and Ambazari are being renovated andmodernized with 140 Nos. of SCADARTU.

Besides continual technical up-gradation, the company lays emphasis on imbibing required skills

in its people and therefore it has invested in creating training infrastructure. The Company hasadopted the National Training Policy and has established fully equipped Training Centres at 7different locations which are attached to respective Zonal offices. These centres impart trainingon Technical, Safety and Soft skills which are guided and monitored by the HR/TrainingDepartment. It has recently established a Technical Training Centre - the Power System LearningCentre - at Aurangabad where employees are trained on various power system protection andequipment testing. Recently the Company has bagged Special Commendation National Award

2011 for Innovative Training Practices from the Indian Society for Training and Development,

New Delhi.

The largest electric power transmission utility in state sector in India 584 EHV substations 41390 Ckt. kms of Transmission lines 99716 MVA Transformation capacity Infrastructure plan of about Rs 10456 Crore Transmission system capable of handling about 21000 MW of power


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Transmitted 115172 MUs. in the year 2012-13 Staff strength of around 13128 employees all across Maharashtra

Innovations at MahaTransco

ERPMIS project with IBM IndiaEnterprise Resource Planning(ERP) by integratingall the functions of MSETCL departments on line to achieve performance excellence in

business, Fully go live since 01.01.2012.

Unmanned remotely controlled substations in operation at Rajur and Chandwad . GIS substations at Bhandup, Rashtapeth comissioned and 400KV Hinjewadi in progress. Establishment of 765 KV substation at Aurangabad by MSETCL ABT metering at 530 Sub-stationsfor energy accounting purposes and implementation

of FBSM. Bills issued from Aug 11.

Renovation and Modernization of State Load Dispatch Centre (SLDC) at Kalwa andAmbazari, -140 Nos. of SCADARTU

Effective utilization of Hot-line Maintenance Techniques through Hot line Maintenanceunits (HLUs).

MSETCL Smart Grid pilot project - To enhance Operation, Monitoring capability andobservability of Grid.

Setting up of Training Centres at 7 locations and Power System Learning Centre atAurangabad to create skilled manpower; KRA/KPI based Performance Management

System.

4.3 Maharashtra State Electricity Distribution Company Limited

Mahavitaran () or MahaDiscom (Maharashtra State Electricity Distribution Company

Limited or MSEDCL) is a public sector undertaking (PSU) controlled by the Government of

Maharashtra. It is the second largest electricity distribution utility in the world after State GridCorporation of China. MahaDiscom distributes electricity to the entire state except Mumbai cityand most parts of its suburban region, where BEST Undertaking, Tata Power and RelianceEnergy are distributors.

MSEDCL supplies electricity to a staggering 2.21 crore consumers across the categories all overMaharashtra excluding the island city of Mumbai. There are about 1.34 crore residential, 30 lakh


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agricultural, 13.46 lakh commercial and 2.5 lakh industrial consumers in MSEDCL area whichfetch an annual revenue of about Rs. 45,000 crore.

MSEDCLs sources of power include thermal, hydro, gas and non-conventional sources likesolar, wind, bagasse etc. apart from hydro power of the Koyna Hydroelectric Project. Thermal

power constitutes the major share which it gets from Mahagenco projects, Central Sector projectsand RGPPL.

In terms of infrastructure, MSEDCL operates a vast far flung network comprising 33 KV, 22 KV& 11 KV lines, sub-stations and distribution transformers spread over 3.08 km2 geographicalarea of Maharashtra covering 41,015 villages and 457 towns. It has 1947 sub-stations (33 kV)with 49,000 MVA of transformation capacity, 10,334 HV feeders, and several thousand circuitkm of HT and LT lines.

MahaDiscom Important Project

To overcome the power crisis and improve consumer services MSEDCL made in-depth studyinvolving sub- division wise research of distribution network and planned ambitious projects.They include :

1. Infra- Plan: MSEDCLs existing network handles a load of about 10,000 to 11,000 MW.By 2012, there will be an addition of another 10,000 MW in the system. With a view tocater future load, provide quality, reliable energy supply and reduce losses MSEDCLformulated a Rs. 11000 crore infrastructure plan. The plan envisages erection andcommissioning of 586 sub-stations, 52351 circuit kilometers of HT lines, 58,629distribution transformers besides augmentation of existing network. MSEB had erected1846 sub-stations during its lifetime, whereas MSEDCL aims to construct 586 sub

stations in just 2 years. A leap forward in the direction of infrastructure development. Theproject is being implemented on total turn-key basis and through 119 DPRs. Orders ofabout Rs. 9189 crore have already been placed on various agencies. Earlier capitalinvestment for infrastructure development was a paltry sum of Rs. 200 to 300 crore peryear. The new infrastructure with augmentation and renovation of the distributionnetwork will revolutionize the quality and reliability of supply.

2. Load Management: MSEDCL has been implementing long term Load Managementschemes to reduce load shedding. Feeder separation is one such long term scheme inwhich agriculture feeders are carved out. This not only helps load management but alsostrengthens the infrastructure and reduces technical losses. MSEDCL has also

implemented Single Phasing Scheme in some parts of Maharashtra. Currently rural areasface 8.30 to 11 hours of load shedding a day which is decided by MERC. However, theload shedding hours have been almost halved in about 24,461 villages that have beencovered so far under these schemes. The load shedding duration of these villages hascome down to 2.00 to 5.45 hours which is on par with urban areas. The project cost ofthese schemes is Rs. 3233 crore.


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5. R-APDRPIntroduction

The Govt. of India has proposed to continue R-APDRP during the XI Plan with revised termsand conditions as a Central Sector Scheme. The focus of the program shall be on actual,demonstrable performance in terms of sustained loss reduction. Establishment of reliable andautomated systems for sustained collection of accurate base line data, and the adoption ofInformation Technology in the areas of energy accounting will be essential before taking up theregular distribution strengthening projects.

Programme Coverage

It is proposed to cover urban areas - towns and cities with population of more than 30,000(10,000 in case of special category states). In addition, in certain high-load density rural areaswith significant loads, works of separation of agricultural feeders from domestic and industrialones, and of High Voltage Distribution System (11kV) will also be taken up.

Further, towns / areas for which projects have been sanctioned in X Plan R-APDRP shall beconsidered for the XI Plan only after either completion or short closure of the earlier sanctionedprojects.

Proposed Scheme

Projects under the scheme shall be taken up in Two Parts. Part-A shall include the projects forestablishment of baseline data and IT applications for energy accounting/auditing & IT basedconsumer service centres. Part-B shall include regular distribution strengthening projects. Theactivities to be covered under each part are as follows:

Part - A:


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Preparation of Base-line data for the project area covering Consumer Indexing, GIS Mapping,Metering of Distribution Transformers and Feeders, and Automatic Data Logging for allDistribution Transformers and Feeders and SCADA / DMS system (only in the project areahaving more than 4 lacs population and annual input energy of the order of 350 MU). It would

include Asset mapping of the entire distribution network at and below the 11kV transformers andinclude the Distribution Transformers and Feeders, Low Tension lines, poles and otherdistribution network equipment. It will also include adoption of IT applications for meterreading, billing & collection; energy accounting & auditing; MIS; redressal of consumergrievances; establishment of IT enabled consumer service centres etc. The base line data andrequired system shall be verified by an independent agency appointed by the Ministry of Power.The list of works is only indicative.

Part - B:

Renovation, modernization and strengthening of 11 kV level Substations,

Transformers/Transformer Centers, Re-conductoring of lines at 11kV level and below, LoadBifurcation, feeder separation, Load Balancing, HVDS (11kV), Aerial Bunched Conductoring indense areas, replacement of electromagnetic energy meters with tamper proof electronics meters,installation of capacitor banks and mobile service centres etc. In exceptional cases, where sub-transmission system is weak, strengthening at 33 kV or 66 kV levels may also be considered.

6. ELECTRICITY METERING, BILLING AND COLLECTIONThe section office in the field of a distribution utility is the primary office with multi directionalfunctional responsibilities. It is a fountain of information and all the data will have to getemanated from this focal point. It is the place where the public or the consumer gets the feel ofthe distribution utility or company. Obviously the success of the distribution utility is directlyrelated to the performance level of the section office. After release of supply a prospectiveconsumer becomes the regular consumer and he expects uninterrupted supply at proper voltageand timely bills for payment of the due energy charges.

Metering Of Electricity:

Electricity meter is a device which measures the amount of electricity a consumer uses. It is avital equipment in the electrical industry in the context of conservation of energy andconservation of resources and so the meter accuracy assumes a lot more importance.

The classical meter is an induction disc meter where disc rotation is proportional to the energyconsumed. It is termed as electro-magnetic meter in which the flux provided by currents in fixedcoils reacts with the induced eddy currents in the disk and rotate it. These meters have movingparts their accuracy is lower and are cheaper than the solid-state meters. A solid state meter isone without any moving parts. The application of electronics with integrated circuits /microprocessors to metering technology has made it possible to produce meter with a higherprecision.


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The merits:

The electronic meter has a higher accuracy (0.2, 0.5 or 1 accuracy class) on a full rangeof load.

The induction meter tends to slow down with time. The probability of tampering is more in an induction meter and is very less in an

electronic meter.

Electronic meter has a very narrow error band over a large load range and has highreproducibility of the measured quantities due to the absence of moving components in

the measuring circuit.

Advantages of Electronic Metering:

Accurate customer billinghigh precision and accuracy resulting in metering of accurateenergy consumption.

Provides tamper information. Consistency in accuracy and ensured reliability. No calibration of the meter. Lower operating costs. As there are no moving parts, no meter stuck ups and maintenance

is minimized.

Compactness. Compatible with hand held meter reading instruments, computers and remote reading

equipment.

Roles & Responsibilities of Meter Reading Personnel:

Precautions to be observed while fixing a meter to the service

To start with the meter has to be got check tested in the section office itself.o Electromagnetic meter- for rotation of the disc in all the three phases for a three

phase meter, and rotation of the disc in the case of a single phase meter.

o Electrostatic meter supply pulse to be checked in the single phase meter andfor a three phase meter push button has to be pressed and the voltages in all the

three phases to be checked.


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Meter fixingMeter to be fixed in the consumers premises at an easily accessible safeplace at a height of about 5 feet from the ground for enabling the meter reader to

record correct readings.

After fixing of the meter in the consumers premises the meter has to be checked for itsfunctioning properly.

o Electromagnetic meters with a heater load.o Electronic meters for availability of correct voltages / voltage.

Certain Guidelines

Meter to be fixed at an easily accessible location. There shall be no joints in the incoming service wires and the wires shall be taken to the

meter in a visible way rather than through pipes embedded in the walls.

There shall be no scope for meter board tilting or meter box tilting. The cases such as sluggish meters, glass broken meters and seals tampered etc., shall be

immediately brought to the notice of the section officer for taking further follow up

action.

Once in three months three phase E.M. meters may be checked with a heater load andElectronic meters checked for availability of voltages in all three phases with push

button.

Once in three months neutral continuity may be checked in the single phase services Spot billing machine has to be operated carefully and correct billing to be issued by

pressing right numbers

While issuing spot bills ribbon to be got changed whenever it is required and the spotbilling machines to be replaced if they are serving for more than five years

Special attention has to be paid to high value services and the unusual variations inmonthly consumptions have to be got thoroughly verified so as to ensure that nosuppression of energy is involved.


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Billing & Collection:

Metering, billing and collection are very vital ingredients of the distribution system and are threediscrete sets of activities. Metering is the starting point and is a techno commercial activity.

Billing is a consumer oriented activity and it is the distribution systems duty to issue accuratebills in time to the consumer. The collection is the most difficult activity and the survival of thesystem depends upon the collection efficiency.

At the end of the metering and billing, bills are issued and distributed to the consumers. A

period of up to 14 days is given to the consumer to pay the bills.

To motivate the consumer to make payment within due date, a delayed payment charge orsurcharge is levied for late payment. If consumer fails to make payment then interest is levied onhis overdue bills. Even after this if consumer does not pay, then the last resort is to disconnectthe supply.

Sometimes notice of disconnection is issued separately and sometimes it is incorporated in

the bill itself. As a final way the consumers supply is disconnected.

In all these activities computerization has brought in many improvements by making it easier,faster and more accurate.

A bill collection system cannot exist independent of the billing system and has to be built uponthe foundation of the billing system.

In EROs the consumer accounts of billing are computerized. The particulars of the consumers

related to category, connected load, Contracted load, meter number and capacity, consumptiondeposit paid etc. are furnished into the master file. The monthly payments made by theconsumers are also fed to the computer every month. The data is processed and monthly ledger isproduced by the computer duly indicating opening balances, debits / credits and closingbalances.

The work relating to computerized billing and accounting can be classified as

Input Data:

1. Meter reading of the consumers

2. Collection data

3. Miscellaneous data:

a. Meter changes, load changes etc.

b. New services and deletions

c. Carrying out corrections on the verified outputs of previous month


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d. Adjustment bill amount, bill revisions etc.

e. Data relating to disconnection and reconnections

Output Data:

1. Consumer ledgers

2. Adjustment bills

3. Exception reports and financial reports

Notices for Termination Of Agreement:

List of UDC services for more than three months along with notices to be sent, Bills shall not bestopped till the confirmation is received from the field stating that the service is dismantledphysically.

Normal Procedure of Collection:

At the end of metering and billing, bills have to be issued to the consumers. A period of 7 days to 14 days is given to the consumer to pay. To motivate the consumer to make payment by due rate delayed payment charge is levied

for late payments.

If consumer does not pay, the remedy is to disconnect the supply. Prior to disconnectionthe consumer has to be given a notice of disconnection. It is incorporated in the bill itselfor sometimes it is issued separately.

As a last resort, the consumers supply is disconnected.Meter Reading & Bill Presentation:

A meter reading system must deliver accurate and timely bills to the consumer. The methods inuse are:

Manual Remote AMR Prepaid Load limiters Bill on line


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Electric billing

Manual:

In manual reading meter readers are employed and involve cost and time. But the manual methodis still the most cost effective for most consumers. For modern electronic meters, intelligent handheld meter reading devices can be used which are relatively cheap. The cost is soon recovered bysaving on elimination of data entry and expedited billing process. A cost benefit evaluationrevealed a payback period of one to two years in various utilities. Additionally the devicesprovide useful meter reader performance analysis features such as high and low consumptionedits notepad for recording information by the meter reader for ex: glass broken and message formeter reader ex: beware of dogs. Key required and meter location details.

Spot Billing:

In some utilities for industrial consumers, commercial consumers and domestic consumers themeter reader visits the consumer premises and issues the bill there after taking the reading. Thissaves time in issuing bills.

Annual Meter Reading:

For certain consumers meters can be read yearly but bills can be issued bimonthly, quarterly onthe basics of estimated consumption. Any discrepancy in reading is adjusted in the final billingwhen yearly reading is taken. This method can be used for agriculture and remote domesticconsumers.

Monthly, bimonthly, quarterly reading Out sourcing of billing function Meter reading and billing is entrusted to an agency on contract or franchisee. Out sourcing of only billing to an agency Self-billing: in some utilities, the small consumers domestic consumers, commercial

consumer read their own meters on monthly basis. They prepare their bills from

ready/reckoner pasted on meters.

Remote (AMR):

It is suitable for apartments, shopping complexes large commercial and industrial consumers.

Advantages: Reduced meter reading cost, improved consumer service. AMR is the remotecollection of consumption data from the consumer meter over a telephone line, radio system orpower line carrier.

AMR comprises three elements:


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1. Automatic reading of meter

2. A communication lines between the meters and central billing system

3. A centralized information data base on consumption

Prepaid Metering:

A prepaid electricity metering system allows the consumer to buy credit from utility to usespecified quantum of energy in the form of an encoded token when inserted in an appropriate slotin the meter allows the consumer to use energy at his/her credit.

Online billing: in cities electricity bills can be/delivered to consumers via the internet. InMumbai BEST Co delivers Electricity bills.

Electronic billing: consumers will be able to receive and pay electricity bills at the touchof a button. In internet based billing and payment serve the consumer can receive and pay

bills by logging on utility website.

Collections:

Collection boxes for bank draft / cheques for electricity payment may be made at strategic points

- Collection through banks- Collection on fast track- All time collection centers- Revenue office counters- Customer service centers

Issues involved in Billing & Collection:

Billing and Collection is an age old problem for Electricity Distribution companies. The problemexists because of wrong method of meter reading or mistake in dispatching the bill to correctconsumer or the delay in dispatching of the bill. Country like India also experiences issues likemeter tampering or stealing of electricity. These issues result in wrong billing which directlyaffects the collection and also has considerable impact on revenue generation.

There are flaws in collection methods where customers either dont pay on time or are unawareof different types of payment gateways available, which lead to delay in bill payment. Lack oftechnological usage and low use of MIS in handling the data related to billing and collection hascaused major problems to electricity companies.


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7. IT Solution offered for billing and collectionOver the last decade and the years before Indian Utilities have undergone a series of fundamentalchanges; right from how they operate to how they provide services to their consumers. Havingtasted the benefits on unbundling as early as 2000, many utilities are aggressively following the

path toward modernization and improving customer experience.

In this attempt many of the major utility players have partnered will global leaders in ERP billingpackages to successfully transform their businesses, in order to respond to fast-changingcustomer and market dynamics. SAP for Utilities (ISU) and Oracle Customer Care and Billing(OCCB) are leading choices to fit the bill.

The Chhattisgarh State Electricity Board or CSEB was one of the first to implement SAP -ISU/CCS (Customer Care and Service) in 2005, and one of the few state boards that are nowelectricity surplus.

Indian utilities are now providing comprehensive services to their consumers, backed up by therobust industry specific software of the ERP packages. Some of these include:


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Quick Tariff Restructuring - Inaccuracy of tariff implementation has been a majorchallenge faced by Indian Utilities. The legacy systems were incapable of handling

frequent changes in tariff thus leading to revenue losses for the utilities, which were not

able to keep up with the ever rising cost of electricity generation and transmission. But

both SAP-ISU and OCCB have strong billing modules that support detailed tariff

customization for commercial and residential customers. The short turnaround time

ensures that utilities can react quickly to market fluctuations and adjust their tariff

accordingly to recover revenues.

Spot Billing and Automatic MeterReading- CSEB consumers have the facility of onthe spot billing and automatic meter reading. Earlier there was a gap of about eight days

between meter read and bill delivery. But the ability to spot bill eliminated the delay

resulting in reduced cycle times and early revenue realization.

Ensured Metering - Indian Utilities have had to battle electricity pilferage for a longtime and it continues to be a challenge today. This can be prevented by ensuring that

every connection is metered and read. The strategy has already been implemented by the

state of Gujarat. The government of Gujarat reached an agreement with the Asian

Development Bank to fund the installation of meters at all delivery locations. Coupled

with strong policy deterrent against theft and implementation of Oracle solution for E-

Governance, the Gujarat State Electricity Board (GSEB) was able to recover over Rs. 16crore by curbing pilferage and malpractice.

Online Customer Portals- Almost all major utilities now have online customer portalswhere users can log in, view billing history, pay bills online, lodge complaints, request

new connections etc. SAP Netweaver's seamless interoperability with J2E, .NET and

SOA make it an ideal platform for this purpose. SLA driven services and incident

resolution have truly, empowered the customer and brought in high level of visibility and

accountability that was otherwise missing.

Online bill payment facility and e-delivery of bills has significantly reduced theturnaround time of revenue collection and also cost of having to maintain manual

payment collection centers. Customer complaints of late bill delivery and incorrect meter

readings have come down and such steps also promote green initiatives by reducing

amount of paper consumed.


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Below is the snapshot of how SAP looks at the entire Electricity Companies business model:

Proposed Model


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Meter Reading Service by SAP

Meter reading services applications support all processes for entering meter reading data. Theseinclude the scheduling and preparation of meter readings, meter reading result entry, plausibilitychecks, and comprehensive monitoring for meter reading results. In addition, interfaces tovarious external systems for meter reading entry are available.

Meter reading services provide end-to-end support for automated meter management processes,

to enable time-of-usebased services and optimized management of energy peak demands. Theyensure efficiency and accuracy of meter reading data and related processes, which are keycriteria for high-quality electronic customer services.

Consumption data collection applications support the scheduling of meter reading events andthe collection of meter reading data through various channels, such as automated meter readingsystems and mobile data-entry devices, and provide flexible and powerful validation methods forfurther processing.


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Improved Customer Care

Customer service processes applications support all customer related, utility-specific processeswithin a typical call center environment. These include processes such as changing account andpayment data, performing move-in and move-out, doing meter reading entry, changing budget

billing plans, providing bill correction, processing open items, creating installment plans, andcreating processing lock. The software enables highly integrated customer service and billingprocesses and increases automation of standard processes in customer management.

Customer service processes applications give interaction center employees an immediate, single,and complete picture of a customers technical environment, recent interactions, and currentaccount situation. And the software offers utilities expanded communication channels, includingcomputer telephony, e-mail, text messaging, and Web communication.

Bill preparation and invoicing

The invoicing functionality supports the preparation and processing of billing documents thatmay originate in SAP and non-SAP billing software, termed joined invoicing. It connects andposts billing documents to contract accounts receivable and payable, integrates subledgeraccounting, processes the mass data produced by billing, and then processes the bill prints.

Invoicing helps to clear billing requests, supports reversal processes, contains automatic billchecks, provides functions for budget billing plans, and supports the determination and collectionof taxes, charges, and duties. During the bill preparation, invoicing software supports additionalfunctions from contract accounts receivable and payable, including interest calculation, dunning,booking, and account maintenance.

The invoicing processes result in bill requests and credit memos that are processed further in

contract accounts receivable and payable. The software produces print documents used as thebasis for printing bills and then sends the bill to the bill-to party.


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Receivables and collections management

It is anapplications support end-to-end processes that deliver the control and visibility neededto ensure revenue, eliminate leakage, and avoid loss. The software seamlessly integratesupstream and downstream processes, such as credit scoring, billing, cash management andforecasting, customer self-service, customer relationship management, analytics, and more.Utilities post receivables through integrated billing and invoicing or by integration of legacy orbest-of-breed processes through the SAP NetWeaver technology platform. They can postreceivables as standard invoice documents, as part of a collective bill, or as subject to the specifictreatment of a third-party bill in the deregulated market; the system will apply the appropriateprocesses to the various types of receivables. In addition, receivables may result from automatedprocesses, such as the calculation of fees and charges in interest calculation, dunning andcollections, bank returns, or any adjustment processes. Receivables and collections managementalso provides functionality for securities handling.


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SAPs answer to Customer pain points


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8. Appendix http://www.mahagenco.in/ http://www.mahatransco.in/ http://www.mahadiscom.in/ http://www.msebindia.com/ http://www.apdrp.gov.in/ http://en.wikipedia.org/wiki/Electricity_sector_in_India http://indianpowersector.com/home/electricity-board/ http://indianpowersector.com/home/about/ http://electroworlds.com/energy-scenario-in-india-and-expected-demand/ http://www.mahadiscom.in/ongoing-projects.shtm http://www.pfcindia.com/Content/R_APDRP.aspx http://www.apdrp.gov.in/Forms/Utility_AT_And_C http://www.docstoc.com/docs/70037892/Electricity-Billing-Project-Introduction-Report--

-PDF

http://www.complaintboard.in/complaints-reviews/mahadiscom-l166425.htmlhttp://en.wikipedia.org/wiki/Electricity_sector_in_India

http://www.complaintboard.in/complaints-reviews/mahadiscom-l166425.html

http://www.akosha.com/complaints/maharashtra-state-electricity-distribution-co-mahadiscom-complaints/high-electricity-bill-irregular-billing-meter-taken-away/281445

http://www.rel.co.in/HTML/home_checkAllStoryTariff.html http://www.examresultinfo.com/threads/5313-www-mahadiscom-in-Maharashtra-

Electricity-Bill-Online-Payment-via-Mahavitaran-MSEB-Bill-Calculator-Status-New-

Connection

http://www.bijlibachao.com/calculators/online-electricity-bill-calculator-for-all-states-in-india.html

http://www.indiamart.com/goldimine-electrosystems/billing-machine.html
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9. Abbreviations PSUPublic Sector Undertakings MSEBMaharashtra State Electricity Board CEACentral Electrical Authority AT&CAggregate Technical and Commercial APDRPAccelerated Power Development & Reform NTPCNational Thermal Power Corporation NHPCNational Hydroelectric Power Corporation NPCIL - Nuclear Power Corporation of India Limited T&DTransmission and Distribution GenComGeneration Company DisComDistribution Company TransCom - Transmission Company R-APDRPRestructuredAccelerated Power Development & Reforms Programme

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