Partnerships in Power Franchisees
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Transcript of Partnerships in Power Franchisees
Partnerships in Power Franchisees
Shuvendu Patnaik
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These are easier said than done
Key Result Areas for Franchisees
Franchisees deal with almost every activity, like a licensee
There are many KRAs
Key for survival– Loss reduction– Revenue realization– Managing cash flow
IUKAN 2013/Session 3/12th February 2013 © Secure Meters Ltd
O&M Meter reading
Billing
Collection
Grievances & public dealing
3IUKAN 2013/Session 3/12th February 2013 © Secure Meters Ltd
There are too many contributing factors
AT&C Loss
Technical LossNon Technical loss
Meter reading errors
Load loss
No load loss
DT loss
33 kV line loss
11 kV line loss
LT line loss
Coffee shop readings
Display Errors
Meters damaged
Display off
Digits not visible
Meter box locked
Not sealed
Meters bypassed
Distribution loss
Billing & Bill Distribution errors
Commercial loss
Delayed Payment/Non payment
Meters Not read (provisional reading)
Theft or pilferage
Meter Tampering
CT tampering
Consumer does not desire to pay
Billing dispute
Late issue of Notice
Bills notdelivered
Late distributionOf bills
Bills deliveredIn wrong address
Errors in bill processing & billing
Bills illegible/damaged
Mismatch in meter & account no. in bill
Inadvertent reading error
33/11 kV S/STransformer
loss
No load loss
Load loss
Meter sl no not matched
Consumer refused access
Meters at height
Billing not found
Premises locked
Temporarily locked
Permanently locked
Collusion of meter readers with consumers
Delay in Meter Reading
PT Error
Wiring Error
CT/PT nameplate error
CT Error
Meter Error
Unmatched CT ratio
MFError
Meter Burnt
Metering System Errors
All energy purchased
Is never paid for fully
Unavoidable technical loss (small)
Avoidable commercial loss (large)
Consumers never pay for everything they consume
kWh
… but he is not entirely to be blamed
Consumer
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These are the areas where reliable results
can be actually delivered
IUKAN 2013/Session 3/12th February 2013
xThis is not the domain of technical partners
This is where the skills of franchisee’s management should lie
Administration and enforcement
Need for administrative teeth
Risk arising from legal complications
Dealing with local goons
Political interference
Lack of reliable measurements
Lack of trustworthy information
‘Where’ a higher loss is taken place
‘What’ intervention is needed
How much Capex would be involved
How long will the the payback be
What would be the ROI
What causes loss
There are only two factors– Technical – Administrative
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Returns (Technical possibilities due to investment)
Risk (Technical risk if investments do not deliver expected results)
Technical factor
Franchisee business and administrative risks
This is where partnerships can help
This is where collaboration could be possible
What is it which franchisees are not doing, or can be done differently?
What is it we can contribute, which could be different or unique?
Partner
Franchisee
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Complete range of metering products
Wide range of utility services
In-depth field experience in India
Secure deals with
Measurements
Revenue protection
Revenue completeness
But these in isolation can never address the problems
Something more is needed, which we could provide
Intellectual capital
What would be different about this?
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Intellectual capital
What would be different about this?
Revenue protection & revenue completeness cover a wide range of individual activities
Choice of meters (specs)
Sound Installation practices
Seals & seal management
Installation audits and field testing (CTs,
PTs, meters)
Tamper analysis
Consumer indexing
Consumer meter reading
Energy & loss accounting
Data acquisition from DT & feeder meters
Data validation
They are all well known individually
What is needed is integration
This is where we could become a technical partner
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Supplier, Contractor
Business Partner
Supplies only what is ordered
Franchisee decides what is needed
Responsible for timely & quality deliveries
Not accountable for results
Partner decides what is needed
Implements whatever is needed
Modifies decisions, as time goes by
Fully accountable for results
Ass
ura
nce
Involvement
Ris
k to
p
artn
er
It is possible to have a partnership anywhere along
this band
Capex and Opex sharing can be discussed and linked to two-way SLAs and reliable measurements
Technical partnerships
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A common problem
A number of problems are often due to– Meter reading and billing errors, integrity issues, delays, etc.– Consumers’ bill-related grievances – Meter reading & billing infrastructure costs, etc.– Poor collection efficiency, perennial defaulters– Need for notices before disconnection, and related social issues– Poor cash flow, long cash cycle, need for Working Capital
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This is where a technical partner can help in many ways
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Energy input to
Franchisee
Delivered Energy Billed
Energy
Technical Loss
Electrical infrastructure
Rev
enu
e
Measured Consumption
Actual Consumption
Input Energy
Pilf
erag
e
Tam
per
& f
raud
Met
erin
g er
rors
Rea
ding
er
rors
Del
ays,
non
pa
ymen
t et
c.
Energy realized
Energy billed (Sale)
Prepayment addresses
these problems
Benefits
Remote display
(3 phase)(1 phase)
Energy accounting would be needed to know if things are fine
But energy accounting is tricky and needs special techniques
Thank you
Technical partnerships can become a great enabler for franchisees