AT&C LossAT&C Loss

Status & Way Forward

Mumbai

5th August 2006

Chief Engineer’s Review Meet

AT&C Losses

Drivers for AT&C losses

AT&C losses Comparison

AT&C loss targets

Distribution Losses

Zone/Circle-wise Status

MahaVitaran Action Plan & Achievements

MahaVitaran Future Plan

Commercial Losses

Zone/Circle-wise Status

MahaVitaran Action Plan & Achievements

MahaVitaran Future Plan

AGENDA

AT&C Loss

AT&C Loss(%) = (Energy Input – Energy Realised) x 100 Energy Input

Clearest measure of overall efficiency of the distribution business as it measures technical as well as commercial losses

Energy Realised = Energy Billed X Collection Efficiency Collection Efficiency (%) = Amount Realised X 100

Amount Billed

Drivers for AT&C Losses

TECHNICAL LOSSES COMMERCIAL LOSSES

Overloading of existing lines & substation equipments

Absence of up gradation of old lines and equipments

Low HT: LT ratio

Poor R&M of equipments

Non-installation of sufficient capacitors

Low metering/billing/collection efficiency

Theft, Pilferage and tampering of meters

Low accountability of employees

Absence of Energy Accounting & Auditing

MahaVitaran’s Losses – A Snapshot

Parameter 2003-04 2004-05 2005-06

Energy Input (MUs) 65,928 67,289 69,275

Energy Sales (MUs) 40,744 43,550 46,705

T&D Losses (%) 38.20% 35.28% 32.58%

Distribution Losses (%) 33.12% 31.14% 27.98%

Collection Efficiency (%) 96.34% 106.11% 102.01%

AT&C Losses (%) 35.57% 26.93% 26.53%

AT&C Losses

ZONE FY 2004-05 FY 2005-06KALYAN 15.86% 17.19%

NAGPUR 20.74% 20.42%

PUNE 19.28% 21.90%

KOKAN 20.55% 23.23%

NAGPUR (U) 25.94% 25.23%

BHANDUP (U) 29.23% 29.54%

KOLHAPUR 22.83% 30.86%

NASIK 31.17% 41.07%

AMRAVATI 39.45% 41.08%

AURANGABAD 44.67% 45.39%LATUR 61.08% 63.71%

Circle-wise AT&C Losses

AT&C Loss Targets

ZONE FY 2006-07 FY 2007-08 FY 2008-09LATUR 54 44 34

AURANGABAD 40 35 30

AMRAVATI 35 30 25

NASIK 35 30 25

KOLHAPUR 27 23 19

BHANDUP (U) 27 23 19

NAGPUR (U) 22 19 16

KOKAN 20 17 15

PUNE 19 17 15

NAGPUR 18 16 15

KALYAN 16 15 14

Circle-wise AT&C Loss Targets

Distribution Losses

ZONE FY 2003-04 FY 2004-05 FY 2005-06KALYAN 21.27% 19.52% 17.54%

NAGPUR 22.38% 22.96% 19.53%

KOKAN 22.69% 17.85% 19.78%PUNE 23.03% 19.70% 20.69%

BHANDUP (U) 27.70% 23.55% 24.11%

NAGPUR (U) 34.01% 26.64% 24.63%

KOLHAPUR 24.28% 22.07% 25.53%

AMRAVATI 38.18% 38.39% 36.19%

NASIK 32.93% 30.29% 36.55%

AURANGABAD 41.62% 40.22% 38.47%

LATUR 51.96% 55.74% 52.93%

Circle-wise Distribution Losses

Distribution LossesAction Taken & Achievements

•Energy accounting and fixing of responsibility at all levels - 80% Feeders’ EA Completed,

- 50,000 DTCs (about 49%) Metered & EA Completed

•Theft reduction drive including abetment & action against employees:- FIR Against 22 Employees

- Disciplinary Action Against 389 Employees

- 110 Flying Squads Deployed

- 26572 Thefts detected

•Outsourcing of Meter Reading, Bill Distribution and Collection

•Bhiwandi Franchisee Finalized

•HVDS

•Centre of Excellence - DRUM Project at Aurangabad : Tenders Invited

•Commercial Intelligence Wing Set UpLOSSES REDUCED BY 3.15% TO 27.9% IN 2005-06

•Distribution Losses to be reduced to 19 % by 2008-09. [with 3% reduction each year]

•Energy Audit of the remaining 2830 feeders to be completed during this year

•Metering of 1.5 Lakh DTCs to be completed by March 2007 & EA started

•6 police stations to be set up

•Bhiwandi to be handed over to Franchisee

•High Loss feeders (Losses above 50%) to be franchised out (Feeder Franchisee

Scheme)

•High Loss DTCs to be franchised out (Micro Franchisee Scheme)

•16.65 Lakh Ag connections to be metered by the year 2007-08.

•20,000 HT consumers will get AMR

•Ludhiana Pattern to be introduced on large scale.

FUTURE PLANS

Collection Efficiency

ZONE FY 2003-04 FY 2004-05 FY 2005-06

KALYAN 102.78% 104.05% 99.85%

NAGPUR (U) 98.55% 100.31% 98.57%

PUNE 91.98% 100.06% 98.00%

NAGPUR 97.97% 101.36% 97.12%

KOKAN 92.84% 96.11% 95.18%

KOLHAPUR 76.81% 98.91% 92.72%

BHANDUP (U) 88.39% 92.30% 92.50%

NASIK 85.79% 98.40% 92.38%

AMRAVATI 91.32% 98.08% 92.14%

AURANGABAD 83.72% 91.84% 88.06%

LATUR 67.29% 87.93% 77.02%

Circle-wise Collection Efficiency

Collection efficiencyAction Taken & Achievements

•After Company formation Monthly repatriation has increased from Rs. 932 Cr. to Rs. 1426 Cr.

•Collection Efficiency has reached 95.32% in 2005-06.

•Elimination of average billing: Normal Billing Increased to 84.2% in 2005-06 from

77.44% in 2004-05.

•100 % disconnection of consumers with arrears above Rs.5000/-

•Reduction of arrears (RCI Arrears which were Rs.1465.23 Cr in Mar’05 reduced to Rs.1360.74 Cr in Mar’06, have however increased to Rs. 1399 Cr in May’06 )

•E-billing (all Bills), Spot billing (20 Cities), ATM Cash Collection Centres (50), Drop Boxes, E-payment Introduced.

•Special PD Arrears Recovery Team Set Up: Rs. 8.28 Crs Recovered.

RCI connections pending

Consumer Grievance

Progress of Call Centres

Progress of CFC

FUTURE PLANS

Outsourced Spot Billing and ATMs at all circles

Outsourced Mobile Collection Centers

Increasing the scope of e-payment

Collection Efficiency to be increased by 2% every year

Bhiwandi Franchised out

Our AIM

FY 2005-06AT&C Loss 26.5%26.5%

FY 2008-09AT&C Loss 17%17%

Feeder EA

DTC Audit

Normal Billing

RCI Arrears

To undertake higher feeder accountingTo concentrate on feeders with loss >25%

To increase % of circles with normal billingmore or equal to MahaVitaran’s Average

To undertake higher DTC accountingTo concentrate on DTC’s with loss >25%

To substantially reduce RCI ArrearsTo reduce the number of connections pending (especially Commercial)

THANK YOU