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Torrent power a Distribution Franchise …prsented by : Arpit Saran

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Bhiwandi Agra DF Improvement

Torrent power a Distribution Franchise

prsented by : Arpit Saran


Integrated Power CompanyTorrent Power At a glancePart of Rs. 8200 Crore Torrent GroupPharma (Turnover ~ Rs. 1916 Crores)Power (Turnover Rs. 5958 Crores)

Licensee in Ahmedabad, Gandhinagar & SuratFranchisee in Bhiwandi, Agra & Kanpur*


1647.5 MW Capacity 500 MW at Ahmedabad1147.5 MW near Surat


JV with PowerGrid for 400 KV network

Transmission* - yet to takeover operations


Present Distribution Drawbacks! Before Torrent High AT&C lossesFrequent power failures due to very old and dilapidated networkMassive load sheddingLow customer satisfactionCustomer service standards are poorLengthy and tedious mechanisms for resolving consumer grievancesUninspiring work cultureOld and obsolete technologies still being usedUnacceptable safety standards


Source: Think BRIC Comparative Study of Power Sector by KPMG- Jan 2010Present Distribution Scenario High Distribution losses

#The power sector requires huge capital outlay to reduce the current deficit and to sustain future GDP growthIt is not possible for the government to fund the growth of the sector on its ownInvestment are forthcoming in Generation from the private sector but it is not sustainable if distribution reforms are not undertakenThe government has embarked on an aggressive mission Power for All by 2010 and the private sector has a key role in achieving the objectives stated in the mission Need of the hour

#Benefits of Franchise ModelReduction in technical losses and theftImprovement in Metering, Billing and Revenue CollectionCapital investments in upgradation of the network Enhancement in customer service qualityA win-win scenario for all:Consumers, DISCOM and Franchisee

#Technical BenefitsState of the art distribution system in franchise areaLower peaking load due to better technical T&D managementBetter overall grid stability due to lower system interruptionsImprovement in reliability parameters like SAIFI, SAIDI, CAIDI, etc.

#Financial Benefits to the StateAssured returns from distribution franchiseeNo investment in the franchise area by licenseeReduction in lossesContribution to the Government exchequer Increase in collection of Electricity Duty as the metering and billing becomes more accurateIncrease in collection of other Central and State taxes pursuant to growth of economy of franchisee area

#Better services to CustomersImproved servicesFaster new connections/ load extensionsLower attendance time for faultsGrievance Redressal mechanismConvenient bill payment facilitiesBetter availability and quality of powerIncreased customer satisfaction

#What is a Franchisee?

As per Definitions of The Electricity Act, 2003franchisee means a person authorised by a distribution licensee to distribute electricity on its behalf in a particular area within his area of supply;

#Features of Input Based Distribution Franchise

#Role of a franchisee


Energy Input Metering

Fault Restoration


Customer Care

Revenue Collection



Meter Reading

State DISCOM to supply power at EHV substationsAll Obligation and Rights of a Distribution Licensee

#Responsibilities of Distribution franchiseePurchase of powerFrom Licensee at EHV substations feeding the franchise areaNetwork RelatedNetwork analysis and improvement planningMake capital investment for renovation/ upgradation of networkDistribution asset maintenance

#Responsibilities of Distribution franchiseeConsumer RelatedMetering Meter readingBilling as per Regulatory Commissions approved Retail TariffCollection (both current revenues and arrears)Issuing new connectionsAdherence to all relevant Regulations of ERC including Supply Code and SOPsAttending consumer grievances

#Commercial TermsDFLICENSEEPayment by LicenseeIncentive on recovery of arrearsSubsidySpecified payments upon termination / expiryPayment by DFCharges for input energy as quoted by franchiseeArrears collectedSecurity Deposit for new connectionsElectricity Duty etcCompetitive bidding ensures that the State Discom gets the right price for input energy


Area : 188 SqkmsPopulation : 23 LacsCustomer base : 4.2 LacsPeak Demand : 420 MVAEnergy Input : 1800 MUInternational Tourist Place

33/11KV Substations : 38 Nos11KV OH Line : 713 KmsDTCs : 3269 NosHT Consumers : 350 NosLT Network : 1500 Kms33KV OH Line : 230 Kms

#Agra : At the time of takeoverAT&C losses : 80%Mandatory load shedding of 6 hours at the time of takeover and subsequently increased to 8 hoursFurther distress load shedding due to deficit of 300 MVA in EHV NetworkOverstressed distribution NetworkOverloadingBreakdowns / trippingsDistribution transformer failure rate of 60%Poor reliability of supplyOnly 23% of the customers have accurate metering and there are many unregistered consumers

#Overcoming the ChallengeProblem: Frequent Power FailuresMeasures:Failed DT replaced within 24 hours24 x 7 control room to ensure faster restorationAll DTs revampedIssue:2 to 3 DTs failing everydayFrequent conductor breakdownLack of adequate maintenance leading to deteriorationof networkLong restoration time in case of faults

Overloaded System

#Overcoming the ChallengeProblem: Technical LossesMeasures:Reconfigured the existing feedersAdded 29 new feeders to the existing 46 feedersAdded 125 MVA distribution transformer capacityProper termination and crimping providedInstalled capacitor banks to improve power factorIssue:Overloaded feeders leading to higher I2R lossesImproper crimping at jointsPoor power factor of the system

#Distribution System

22 KV feeders

Distribution Transformers and FSPs

#Shunt Capacitors

#Overcoming the ChallengeProblem: High Commercial lossesMeasures:Provide systematic metering for accurately measuring consumption of the customersSecuritization of the network and extensive vigilanceFiling of FIR in case of repetitive power theftStreamline processes to improve collection efficiencyUjjwal Bhiwandi Abhiyan for legalising connectionsIssue:Only 23% customers meteredRampant theft of energyNo substantial action against non payment of bills


#Overcoming the ChallengeProblem: SafetyMeasures:Lines replaced by underground cables at critical locations where clearance are issueEarthing provided for all poles, transformersRemoval of double feedFencing provided for transformersLines replaced, where necessaryPublic Safety Awareness programsIssue:Lack of adequate clearance with linesTransformers located at roadsides without any fencingDouble feed through hookingLT/HT lines in poor condition (conductor snapping)

#LT Network Revamping


#Overcoming the ChallengeProblem: Customer ServiceMeasures:Call Center started from Day OneCustomer friendly bill introduced2 Customer Service Centers OpenedCustomer Redressal Mechanism establishedMobile Van as a value added serviceIssue:No concept of customer serviceNo consumer redressal systemCustomers had lost confidence in utility

#24 x 7 Call Center

#Customer Care Centers

#The results


Major Accomplishments :Distribution Transformer Failure RateDT Failure Rate reduced by 57%



As on April 2010At the time of takeover


Major Accomplishments : Load SheddingReduction in losses has improved power reliability in the area

10 to 12hours

Less than 3 Hrs

At presentAt the time of takeover


Major Accomplishments : Accurate Metering99% of sales is based on actual reading.



At presentAt the time of takeover

#Key Requirements for DF arrangement

#Key Requirements for DF ArrangementThe required power should be made availableDespite the marked improvement brought in Bhiwandi, change not visible as load shedding continuesCustomers want quality power 24 x 7Availability of adequate upstream infrastructure (Transmission Capacity) to cater to the demand in the franchise areaDistributed Generation based Dist Franchisee is a step in the right directionFranchise should be provided with adequate power so that the benefits of the improvement are realized

#Thank you


Distribution losses in developing countries in 2008

Sheet1Distribution losses in developing countries in 2008Series 2Series 3India23.22.42Russia10.64.42China6.71.83Brazil16.42.85World8.5To resize chart data range, drag lower right corner of range.