7Stakeholders and Their Roles & Responsibilities

7/29/2019 7Stakeholders and Their Roles & Responsibilities

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Stakeholders and theirRoles & Responsibilities


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Stakeholders and their Roles & Responsibilities

Roles and Responsibilities of Franchisee

Roles and Responsibilities of Franchiser

Roles and Responsibilities of Government& Regulators

Stakeholders

Roles and Responsibilities of Consumers


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Stakeholders In Franchise System

Utility

Central Govt.

Regulator

State Govt.

Consumers

PRIs

Franchisee


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Stakeholders.

Franchisee

Franchiser

Consumers

Regulator

Government


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Roles of FranchiseeConsumer Management

New connection

Bill correction, revision and similar complaints

Installation and replacement of meters

Collection of deposits/ fees and depositing with the franchiser

Compliance with the standards and specifications of the franchiser

Revenue Management

Meter Reading;Bill Preparation & Distribution; Revenue Collection

Recovery of arrears including past arrears of the utility

Disconnection/Reconnection


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Roles of Franchisee (Contd.)

Billing Process

Separate accounting for current bills and arrears

Hand held machines Integration with main billing systemoperated centrally

Assess status of meters; Install additional meters; Replacedefective meters

Receive in instalments

Recovery of Arrears

Vigilance and Enforcement Activities


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Roles of Franchisee (Contd.)

Additional Scope: Input based Franchisee Models (C & D)

Payment of input energy to the franchiser at the contracted BulkSupply Tariff (BST)

Energy Accounting at 11 kV and DT level subject to availability ofmeters

Fault identification and resolution including supply break down

Enforcement activities

Survey of the Fixed/Current Assets, Preparation & updation ofAssets Register

Providing MIS to the franchiser in the prescribed formats


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Operation and Maintenance

Operation and Maintenance

Operation of sub-stations (excluding substations at transmission levelin case of unbundled utilities)

Augmentation of the distribution system from 66/11KV or 33/11 sub-station upto the consumer level

Repair and maintenance of all lines and sub-stations falling under thefranchised area including conductors, cables, transformers, etc

Replacement of defective conductors or cables, defectivetransformers, defective pole and cross-arms, etc. and for that purposemaintaining rolling stock of transformers and other necessarymaterial

Demand Side Management (DSM) Activities

The Franchiser may include of these activities fully/partially in the Franchisee modelduring the model designing stage


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Investments

In a large scale urban franchise, generally the franchisee is alsoexpected to provide his investment plan and make investments inthe franchised area in a phased manner.

Such a franchise agreement should be for at least 7 years to ensurespreading of the cost over a reasonably long period.

The assets so created also belong to the franchiser subject toallowing pass through of the interest, depreciation and repaymentsfrom the revenue expected from the franchised area.

The franchisee hands over the assets created by him at the time ofhand over of the system at the end of the contract period subject to

payment of depreciated cost of the assets, if any.


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Role of the Franchiser

Utility must provide information including a list of all consumers withconnection nos., names and addresses to the franchisee at thecommencement of his operation.

Irrespective of the model, the franchiser should provide allinformation relevant to the area, namely law & order problems,payment/theft history, system fault/breakdown related information,assets, etc. to enable the franchisee plan his operations in astructured and efficient manner

The franchiser should monitor MIS reports at regular intervals

Utility should also assign a nodal officer as a point of contact for the

franchisee to resolve day to day operational issues.


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Role of the Franchiser (Contd.)

Awareness among the ConsumersAnnouncements in the Franchisee area or publishing in the newspaper

Availability of ElectricityNo discrimination in supply of power to franchised area both suringscheduled and unscheduled power cuts

As far as possible, the utility will give program for power cuts/shutdowns to the franchisee to enable him to inform the consumer well intime and as far as possible carry out major repairs and improvement

works involving shut down during that time.

Operation and MaintenanceDepending on the model, all the activities other than those within thepurview of the franchisee

Depending on the model, network breakdowns (cables, transformers)

should be taken care of by the franchiser (except in full service O&Mmodels)


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Support to the Franchisee System

Franchiser needs to provide all necessary help to integrate the Franchisee intoits existing system with clear cut demarcation of the roles and responsibilitiesof each.

Billing, Collection, New Connections/Disconnections and Enforcement relatedactivities

Franchisers Staff needs to facilitate in efficient working of the Franchisee

(important in the initial phase for proper taking over)

Metering and Billing of the Franchisee

The Franchiser needs to jointly read the input energy meter and timely raisethe invoice

Utility shall install meters at the input points of supply at the 11 kV lines orthe desired points and also provide metering at DT level for proper energyaccounting by the franchisee.

Franchiser/utility shall also ensure proper working of the meters at 33KV,11KV and DT Meters at all times


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Vigilance support :

Franchiser shall assist the franchisee wherever required toprevent or detect unauthorised drawal of power (i.e. pilferage ofenergy) and arrange police assistance, if required.

Provide support to the franchisee in legal proceedings against aconsumer involved in unlawful use of electricity

The franchiser shall also facilitate the authorization of thefranchisee under Sections 126, 135(2) and 152 of the ElectricityAct, 2003 for taking necessary action to prevent theft/pilferageof electricity in the franchised area.


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Role of Government and Regulator

Governments role Critical

Policy and advocacy of franchisee

Administrative support;

Subsidizing those who need electricity but dont have the ability to pay;

Timely payment of subsidies and other dues;

Regular and timely payment of government connections;

Authorized and metered government connections;

Special courts for speedy trial of electricity theft related offences; and

Setting up of special police stations


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Government and Regulator.

Regulator

Regulator needs to examine the proposed Franchiseemodels and its advantages to the franchiser vis--vis thepresent scenario.

Regulator needs to protect the interest of all thestakeholders involved in the Franchisee system includingconsumers, franchisee, franchiser and the government.

The incentive structure in case of Collection Based Model

and Bulk Supply Rate in case of Input Based Model needsto be examined keeping in mind the profitability andsustainability of both the parties involved


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Role of Consumers

The ultimate ownership and success of any Franchisee System liesin its acceptability and support by the consumers.

Consumers needs to give support towards:

Legal and Proper connections;

Correct Metering;

Timely payment of bills and dues; and

Cooperating in the process of franchising to ensure its

success and thereby the viability of supplying power in thefranchised area.


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Thank You

Documents

7Stakeholders and Their Roles & Responsibilities