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6-Jun-14 Page 1 Presentation on Standard of Performance (SoP) Regulations for Distribution Licensees November 2010 By Palaniappan M., Director, ABPS Infrastructure.

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Presentation on theme: "6-Jun-14 Page 1 Presentation on Standard of Performance (SoP) Regulations for Distribution Licensees November 2010 By Palaniappan M., Director, ABPS Infrastructure."— Presentation transcript:

1 6-Jun-14 Page 1 Presentation on Standard of Performance (SoP) Regulations for Distribution Licensees November 2010 By Palaniappan M., Director, ABPS Infrastructure Advisory Private Limited

2 6-Jun-14 Page 2 Contents 1.About ABPS Infra 2.Related Provisions of Electricity Act, Salient features of Draft MERC (Standard of Performance of Distribution Licensees, Period of Giving Supply and Determination of Compensation) Regulations, Comparison of Standards of Performance specified by different SERCs.

3 6-Jun-14 Page 3 An introduction to ABPS Infra Set up in Sep 2005 as start-up Consulting Organisation by professionals, having wide range of experience (~ 40 Man-years) in the energy sector. Promoted by A jit Pandit, B alawant Joshi, P alaniappan M & S uresh Gehani. Experience spans commercial, financial, regulatory and technical spheres of the energy sector. Set up in Sep 2005 as start-up Consulting Organisation by professionals, having wide range of experience (~ 40 Man-years) in the energy sector. Promoted by A jit Pandit, B alawant Joshi, P alaniappan M & S uresh Gehani. Experience spans commercial, financial, regulatory and technical spheres of the energy sector. Regulatory Commissions Developers FI / Banks Govt – MOP / MNRE SEBs / Utilities / Private Utilities Experience spans across spectrum covering all stake-holders

4 6-Jun-14 Page 4 Regulatory Commissions Utilities (State & Pvt) Govt. (Central & State) Developers & Investors Banks & FIs Industry Associations Generation Transmission Distribution Renewable Energy Fuel Thermal / Hydel / Nuclear - State / Central / Private Open Access / Capacity / Planning - CTU / STU / JV Tariffs / Reforms / T&D losses / Market Develop. Wind / Biomass / Small Hydel / Co-gen / Solar Coal / FO/HFO/LSHS / Natural Gas / LNG We work in entire value chain of electricity sector

5 6-Jun-14 Page 5 Contents 1.About ABPS Infra 2.Related Provisions of Electricity Act, Salient features of Draft MERC (Standard of Performance of Distribution Licensees, Period of Giving Supply and Determination of Compensation) Regulations, Comparison of Standards of Performance specified by different SERCs.

6 6-Jun-14 Page 6 Related Provisions of EA, /2 Section-57 of EA 2003 states as under (1)The Appropriate Commission may, after consultation with the licensees and persons likely to be affected, specify standards of performance of a licensee or a class of licensees. (2) If a licensee fails to meet the standards specified under sub-section (1), without prejudice to any penalty which may be imposed or prosecution be initiated, he shall be liable to pay such compensation to the person affected as may be determined by the Appropriate Commission : … Section-58 of EA 2003 states as under The appropriate Commission may specify different standards under sub-section (1) of section 57 for a class or classes of licensee. -

7 6-Jun-14 Page 7 Related sections of EA /2 Section-59 of EA 2003 states as under (1)Every licensee shall, within the period specified by the Appropriate Commission, furnish to the Commission the following information, namely:- a) The level of performance achieved under sub-section (1) of the section 57; b) The number of cases in which compensation was made under sub-section (2) of section 57 and the aggregate amount of the compensation. (2) The Appropriate Commission shall at least once in every year arrange for the publication, in such form and manner as it considers appropriate, of such of the information furnished to it under sub-section (1). Section-86 (1) (i) of EA 2003 states as under (1) The State Commission shall discharge following functions namely: … (i) specify or enforce standards with respect to quality, continuity and reliability of service by licensees; -

8 6-Jun-14 Page 8 Contents 1.About ABPS Infra 2.Related Provisions of Electricity Act, Salient features of Draft MERC (Standard of Performance of Distribution Licensees, Period of Giving Supply and Determination of Compensation) Regulations, Comparison of Standards of Performance specified by different SERCs.

9 6-Jun-14 Page 9 Salient Features- Introduction... 1/2 Performance Standards specified by the Commission act as guidelines for efficient, reliable, coordinated and economical system of electricity distribution by the Distribution Licensee, so that consumers installations can function properly. The Standards specified are the Guaranteed Standards of Performance, being the minimum standards of service that a Licensee shall achieve. Any failure by the Distribution Licensee to maintain the guaranteed standards of performance specified in SoP Regulations shall render the Distribution Licensee liable to pay compensation to an affected person claiming such compensation. MERC has also specified the Overall Standards of Performance, which the Distribution Licensee should seek to achieve during discharge of his obligation. The compensation paid by the Distribution Licensee for respective parameter, may be allowed to be recovered partly or fully in the Aggregate Revenue Requirement (ARR) of Licensee, keeping in view the extent to which the licensee is able to achieve the Overall Standards of Performance.

10 6-Jun-14 Page 10 Salient Features- Introduction...2/2 The objective of Standard of Performance Regulations are: To lay down the Performance Standards for Distribution Licensees. To specify the maximum time limits to be adhered by the Distribution Licensee for performing the activities specified in SoP Regulations. To specify the amount of compensation payable by the Distribution Licensee to consumers in the event of a default. To specify the procedures to be followed by the Distribution Licensee for handling consumer complaints. To specify the Reliability Indices and their computation methodology to measure performance of Distribution Licensee. To specify data/information requirements of the Commission to be submitted by the Distribution Licensee periodically in standardized formats.

11 6-Jun-14 Page 11 New Connection (Procedure) Application by the owner or occupier of any premises for supply of electricity to the Distribution Licensee Inspection of the premises related to an application for supply of electricity by the Distribution Licensee as per the time limit specified in Regulations Intimation of charges to be borne by the applicant for supply of electricity by the Distribution Licensee as per the time limit specified in Regulations Supply of electricity to such premises of applicant by Distribution Licensee as per the time limit specified in Regulations

12 6-Jun-14 Page 12 New Connection…1/2 The Distribution Licensee shall provide new connection to any consumer upon receipt of a complete application, as per MERC (Electricity Supply Code and Other Conditions of Supply) Regulations, Distribution Licensee shall complete the inspection of the premises related to an application for supply of electricity not later than seven (7) days from the date of submission of application for new connection in case of Urban areas and within ten (10) days in case of Rural areas. Intimation of charges to be borne by the applicant by the Distribution Licensee : Supply is to be given from existing network Supply is to be given by extension or augmentation of distributing main or commissioning of a new sub-station The applicant seeks dedicated distribution facilities to his premises 15 days for Urban areas and 20 days for Rural areas 30 days In Case: Time Limit from the date of receipt of application

13 6-Jun-14 Page 13 New Connection…2/2 The Distribution Licensee shall provide electricity supply to the applicant: In Case: Time Limit after receipt of application and payment of charges Supply is to be given from existing network Supply is to be given by extension or augmentation of distributing main Supply is to be given by commissioning of new sub-station 1 Month 3 Months 1 Year

14 6-Jun-14 Page 14 Temporary Connection…1/2 The Distribution Licensee shall provide temporary supply of electricity upon application within the time limit, given below: Up to 10 KVA Up to 25 KVA Up to 50 KVA Over 50 KVA 5 days 10 days 20 days 30 days Distribution Licensee shall release supply subject to the condition that distribution system exists for supply to the premises, the connection meets safety requirements and is technically feasible.

15 6-Jun-14 Page 15 Temporary Connection…2/2 However, no connection up to 10 KW shall be rejected on technical ground. If there are dues on the premises of the applicant, temporary connection can be refused by the Distribution Licensee till the dues are paid by the applicant. Distribution Licensee shall repay / refund balance deposit, if any, within one month by adjusting dues from the date of dismantling temporary supply. Temporary connection shall be granted for a maximum period of one year at a time, which can be further extended depending upon the requirements. The grant of temporary connection does not give right to the applicant for claiming permanent connection.

16 6-Jun-14 Page 16 Shifting of Meters/Service Lines, Reduction in Load Wherever the consumers requests for shifting the service connection in the existing premises or for the deviation for the existing lines at their own cost, licensee shall inspect and inform the estimated cost to the consumer within the following time period: The Distribution Licensee shall give effect of reduction in load of the consumer upon receipt of an application within second billing cycle. However, the consumer should have completed compulsory period for availing of supply as per existing agreement and provisions of Supply Code and should have executed fresh agreement for revised load. Type of location Time limit (On receipt of application) Urban Areas7 days Rural Areas10 days

17 6-Jun-14 Page 17 Reconnection of supply If the Distribution Licensee has disconnected supply to a consumer for a period of not more than six months, it shall restore power supply to the consumer, if such consumer pays all amounts due and payable by him to the satisfaction of the Distribution Licensee or in case of a dispute, pays such amounts under protest. The time limits are: If the period of disconnection exceeds six months, an application for reconnection of supply shall be treated as a fresh application for supply of electricity under the provisions of the Act, after either payment of amounts due or upon settlement of dispute. Type of LocationPrescribed Time Limit Urban Areas24 Hours Rural Areas48 Hours

18 6-Jun-14 Page 18 Transfer of ownership and change of category Distribution Licensee shall give effect to transfer of ownership and change of category upon receipt of an application within the following time lines: Transfer of ownership Within second billing cycle on receipt of application and payment of necessary charges Change of category Within second billing cycle on receipt of application Conversion from single phase to three phase and vice-versa for Low Tension Within second billing cycle on receipt of application and payment of necessary charges Conversion from Low tension to High tension & vice-versa. Within third billing cycle on receipt of application and payment of necessary charges Distribution Licensee shall examine the technical feasibility upon receipt of such application and inform the consumer the feasibility within seven days of receipt of application.

19 6-Jun-14 Page 19 Quality of Supply The Distribution Licensee shall keep the voltage at the point of supply to vary from the declared voltage, as per the table below: Voltage LevelPrescribed Range Low or Medium Voltage+ 10 % to – 10 % High Voltage+ 6 % to – 9 % Extra High Voltage+ 10 % to – 12.5 % The voltage of neutral shall not exceed 2% of phase voltage value and the imbalance in voltage of phases shall not be more than 3%. The Distribution licensee shall control the power factor of system of supply at level above The Distribution Licensee shall control the harmonics level at the point of supply in accordance with that prescribed by the IEEE STD The Distribution Licensee shall give supply of energy on the following systems: Voltage LevelSpecifications Low Voltage Two wires Direct current or Alternating current, single phase, 50 cycles Medium Voltage Three or Four wires, Alternating current, three phases, 50 cycles High VoltageAlternating current, three phases, 50 cycles

20 6-Jun-14 Page 20 Classification of Installations InstallationsSpecifications Two wires, Single phase240 Volts, Maximum 40 Amps Four wires, Three phase 240 volts between phase wires and neutralgeneral supply exceeding 40 amperes and sanctioned load not exceeding 80 kW/ 100 kVA (107 HP) in all areas, except in Municipal Corporation areas where such limit would be 150 kW/ 187 kVA (201 HP) Three phase 11 kV/ 22 kV, for all installations with contract demand above 80 kW/ 100 kVA (107 HP) in all areas, except in Municipal Corporation areas where such limit would be 150 kW/ 187 kVA (201 HP) and up to 1,500 kVA. Three phase22 KV, Contract Demand up to 3000 KVA Three phase33 KV, Contract Demand up to 5000 KVA Three phaseExtra high voltage, Contract Demand above 5000 KVA AC System InstallationsSpecifications Two wires, 130 Volts i. General supply not exceeding 10 amperes ii. Motive power installations upto 1 BHP in aggregate Three wire, 460 volts between outers Motive power installations of over 1 BHP DC System

21 6-Jun-14 Page 21 Classification of Installations The classification of installations shall be as follows: InstallationsSpecifications Two wires, Single phase230 Volts, Maximum 40 Amps Four / Three wires, Three phase 230 Volts between phase wire and neutral or 400 Volts between the phases / lines. General supply exceeding 40 Amperes and Contract Demand not exceeding 80 KW/ 100 KVA (107 HP) in all areas, except in Municipal Corporation areas, the limit would be 150 KW/ 187KVA (201 HP). In case of multiple consumers with contract demand more than 150 KW / 187 KVA (201 HP), in the same building / premises as single point supply in the municipal corporation area, the limit would be 480 KW / 600 KVA / 643 HP. For single point supply if the bus system (conventional / sandwich) is provided on secondary side of transformer for four wire (three phase and neutral) with earth bus, the limit would be 1200 KW /1500 KVA (1607HP). Three phase11 KV, Contract Demand up to 5000 KVA Three phase22 KV, Contract Demand up to KVA Three phase33 KV, Contract Demand up to KVA Three phaseExtra high voltage, Contract Demand above20000 KVA

22 6-Jun-14 Page 22 Restoration of Power Supply The Distribution Licensee shall restore power supply in case of failure as per the following time limits: Type of FailureUrban AreaRural Area Fuse-off calls4 Hours24 Hours Overhead line breakdowns 6 Hours24 Hours Distribution transformer failures 24 Hours48 Hours Underground cable faults12 Hours48 Hours The period of interruption as a result of any scheduled outage shall be specified in a public notice of such scheduled outage. Such scheduled outage shall not normally exceed twelve (12) hours on any day and supply should preferably be restored by Hours.

23 6-Jun-14 Page 23 Disconnection of Supply The Distribution Licensee upon receipt of request for disconnection from a consumer, shall intimate the consumer any amount outstanding and disconnect the supply as per the following time limit: ParticularsUrban AreaRural Area Disconnect the supply 7 days12 days Intimate the consumer about amount outstanding 7 days12 days Refund of security deposit along with issuance of No- Dues certificate should be made by licensee within thirty (30) days from the date of clearance/adjustment of all dues outstanding from the consumer in Urban Areas, and within forty five (45) days from the date of clearance of all dues outstanding from the consumer in Rural Areas.

24 6-Jun-14 Page 24 Reconnection of supply following disconnection due to non-payment of bills The Distribution Licensee shall restore power supply to a consumer, whose supply has been disconnected due to non-payment of electricity bills, as per the following time limits, after production of proof of payment by the consumer: Urban AreaRural Area 4 Hours12 Hours

25 6-Jun-14 Page 25 Meter Related Standards Urban AreaRural Area 24 Hours48 Hours The Distribution Licensee shall, in the case of a burnt meter, restore supply within the following time limits, after the receipt of a complaint.

26 6-Jun-14 Page 26 Meter Related Standards The Distribution Licensee shall perform the following meter related activities subject to the provisions provided in the Supply Code and other associated regulations and codes. ActivityUrban AreaRural Area Meter Reading At least once in every 2 months At least once in every 3 months Replacing faulty / non working meter * Within 5 daysWithin 10 days Replacing burnt meter#Within 5 daysWithin 10 days * Cost of inspection shall be borne by the Distribution Licensee. # If the burning of meter is due to causes attributable to Distribution Licensee. If the meter is burnt due to causes attributable to the consumer the Distribution Licensee shall serve a notice to the consumer for recovery of cost of the meter within seven days of detection and shall replace the meter within fifteen days on receiving the payment.

27 6-Jun-14 Page 27 Testing & Calibration of Meter The Licensee shall carry out periodical testing and calibration of consumers meter along with CT / PT and accessories, as per table below: Type of MeterDuration Electro mechanical, Single phase, LTAt least once in 5 years Electro mechanical, Three phase, LTAt least once in 3 years Electro mechanical, Three phase, HTAt least once in each year Electronic meter To be decided on type and specifications of meter

28 6-Jun-14 Page 28 Complaint Registration and Complaint Handling…1/6 Establishment of Call Centre(s) The Distribution Licensee shall establish call centre(s) for redressal of complaints of its consumers and such call centre(s) shall be accessible to its consumers round the clock during all days of the week, within the following time limits, from the date of commencement of MERC (Standard of Performance, Period of Giving Supply and Determination of Compensation) Regulations: Urban AreaRural Area 24 Months Within appropriate time period to be specified by the Commission on case to case basis

29 6-Jun-14 Page 29 Complaint Registration and Complaint Handling…2/6 Every Licensee shall employ sufficient number of officers or employees at its Call centre(s) and establish a basic telephone or cellular mobile telephone number having sufficient lines or connections to be called as the toll free number or consumer care number or help line number at its call centre(s). Call charges or SMS charges shall not be levied upon the consumers for calls made or SMS sent, to these numbers. Every Licensee shall, immediately upon establishment of its Call centre(s), inform about the same through a public notice in newspapers and should also ensure proper circulation of information to the consumers in case of any changes in the contact numbers. Licensee should ensure availability of electronic data base to record complaints. The Licensee shall convey information of the name of office (s), address (es) and telephone numbers where the consumer can lodge complaints, in the form of additional information along with the electricity bills.

30 6-Jun-14 Page 30 Complaint Registration and Complaint Handling…3/6 Operation of Call Centre(s) The Distribution Licensee shall adhere to the following time limits for operation of call centre(s): ActivityTime First response against a consumer call3 Minutes Registration of consumer call and issue of complaint number 5 Minutes after first response

31 6-Jun-14 Page 31 Complaint Registration and Complaint Handling…4/6 Process of handling complaints The Distribution Licensee shall devise its own process at complaint handling centres/ call centre(s)/ customer care centre(s)/ service centre(s) or any other customer interface channels to handle consumer complaints. The process should include the following: a) Registration of complaints by allotting a unique identification number to be called the complaint number; b) Communication to consumer of the complaint number, date/ time of registration of the complaint and expected complaint resolution time to the consumer; c) Record details of each complaint; d)Intimate contact details of the next higher authority (including his name, telephone number and address) to the consumer in case the consumer is not satisfied with the complaint handling; d) Update and record feedback and intimate contact details of the next higher authority to the consumer in case the consumer is not satisfied with the complaint handling.

32 6-Jun-14 Page 32 Complaint Registration and Complaint Handling…5/6 Complaints about Consumers Bills The Distribution Licensee shall perform the following related to complaints about consumers bills: Activity Complaint made in Person Complaint made by Post Acknowledgement of a consumers complaint Immediately Within 7 Working days Resolving complaints about electricity bills* On the same day On the date of acknowledgement * In case additional information is not required. In cases, where any additional information is required to be collected, the complaint shall be resolved within ten days of receipt. In case the complaint of the consumer is genuine and revision of bill becomes necessary, the due date for payment of bill would be reckoned from the date of the revised bill. For purpose of calculating additional charges for delayed payment or for disconnection of supply, the date of revised bill shall be considered.

33 6-Jun-14 Page 33 Complaint Registration and Complaint Handling…6/6 Complaint regarding meter working and Voltage Fluctuation If a complaint is made by the consumer about the working of the meter and he requests for replacement, it shall be inspected and replaced as per the following time limits, provided it is established through laboratory checks that the meter is not performing to required standards. Urban AreaRural Area 7 Days12 days The Distribution Licensee shall ensure that the voltages are brought within the specified limits after receipt of complaint regarding voltage fluctuation, as per the following: Fault is identified to a local problem2 days No expansion / enhancement is involved 10 days Up gradation of the Distribution system is required. 120 Days

34 6-Jun-14 Page 34 Consumer Charter / Service…1/2 Every Authorized Representative of the Distribution Licensee shall display his name-tag and if required by consumer his proof of identity and authorization of the Distribution Licensee. The Distribution Licensee shall maintain at least one consumer service center which shall be open for not less than eight (8) hours a day, on all days of the week, in every town and city within the area of supply, for essential services to be provided to consumers. Manual of practice for handling consumer complaints Every licensee shall publish a Manual of practice for handling customer complaints containing following information within three months from the date of commencement of these regulations: a) Channels of complaint registration-details of personnel, offices, Call centre(s); b) Process of handling complaints; c) Duties and obligations of licensee-guaranteed standards of performance and compensation details; and d) any other information which may be affecting the consumers.

35 6-Jun-14 Page 35 Consumer Charter / Service…2/2 The manual shall be prepared in English, Hindi and local languages and shall be available for reference of consumers at every office of licensee and downloadable from its website. A consumer shall always be entitled to approach the Grievance Redressal Forum directly in accordance with the applicable regulations of the Commission. A copy of the manual certified by licensee as true copy thereof shall be filed with the Commission within three months from the date of commencement of these regulations. The Distribution Licensee shall make available to a consumer a hard copy of any of the following documents on demand, subject to payment of reasonable reproduction charges. (a) Electricity Supply Code and Other Conditions of Supply; (b) Standard of Performance Regulations; (c)Terms and Conditions of Supply along with the approved Schedule of Charges and the prevailing approved tariff schedule; and (d) Manual of practice for handling consumers complaints.

36 6-Jun-14 Page 36 Reliability Indices…1/2 The Distribution Licensee shall calculate the reliability of his distribution system on the basis of the following: a)System Average Interruption Frequency Index; b)System Average Interruption Duration Index; and c)Customer Average Interruption Duration Index. System Average Interruption Duration Index (SAIDI) is the average duration of sustained interruptions per consumer determined by dividing sum of all sustained consumers interruption durations by total number of consumers. Measured in the units of time. System Average Interruption Frequency Index (SAIFI) is the average frequency of sustained interruptions per consumer. Measured in the units of interruptions per consumer. Customer Average Interruption Duration Index (CAIDI) is the average interruption duration of sustained interruptions for those consumers who had experienced interruptions. Measured in the units of time.

37 6-Jun-14 Page 37 Reliability Indices…2/2 SAIDI = Σ (Ri * Ni) / Nt SAIFI = Σ (Ni/Nt) CAIDI = SAIDI/SAIFI Where: i = Number of feeders in the Distribution Licensees area Ri=Restoration time for each interruption event on ith feeder. Ni=Number of consumers who have experienced a sustained interruption during an interruption on ith feeder Nt=Total number of consumers of the distribution Licensee s area. While calculating the above indices, the following types of interruptions shall not be taken into account: a)Scheduled outages; b)Momentary outages of duration of less than three minutes; c)Outages due to the failure of the grid

38 6-Jun-14 Page 38 Exemptions Nothing contained in Regulations shall apply where, in the opinion of the Commission, the Distribution Licensee is prevented from meeting his obligations under these Regulations by cyclone, floods, storms or other occurrences beyond the control of the Distribution Licensee.

39 6-Jun-14 Page 39 Compensation Mechanism Where the Distribution Licensee finds that it has failed to meet the Standards of Performance specified under Regulations, either by its own knowledge, or upon written claim filed by any person affected, the Distribution Licensee shall be liable to pay compensation to person(s) affected within two billing cycles from the date of failure meet to Performance Standard or the date of claim. In case the Distribution Licensee fails to pay the compensation or if the affected person is aggrieved by non-redressal of his grievances, he may make a representation for the redressal of his grievance to the concerned Consumer Grievance Redressal Forum, in accordance with MERC (Consumer Grievances Redressal Forum and Electricity Ombudsman) Regulation, In case the claim for compensation is upheld by the Consumer Grievances Redressal Forum, the compensation determined by the Commission will be implemented by the Forum. The Distribution Licensee shall pay within 90 days of direction issued by the Forum. In case of appeal filed against order of the Forum before the Ombudsman by the affected person, the amount of compensation determined by Ombudsman shall be paid by the Distribution Licensee within 90 days of Order issued by the Ombudsman.

40 6-Jun-14 Page 40 Compensation Mechanism Licensee fails to achieve Guaranteed SoP. Consumer shall file his claim within the period from the time the consumer is affected by failure of the Distribution Licensee to meet the SoP The Distribution Licensee shall compensate the consumer within the period from the date of his claim. The actual compensation may be decided by the Commission considering the following factors: (a)hardship caused to the consumer; and (b)average monthly bill of the consumer The actual compensation may be decided by the Commission considering the following factors: (a)hardship caused to the consumer; and (b)average monthly bill of the consumer Maximum 60 days Maximum 90 days The Distribution Licensee shall be liable to pay compensation to the affected consumer as specified by the Commission in the Regulations.

41 6-Jun-14 Page 41 List of Guaranteed SoP against which Compensation is Applicable…1/2 Service AreaPerformance Standard Operation of Call Center First response against a consumer call, Registration of consumer call. Provision of Supply Time period for completion of inspection, Time period for intimation of charges to be borne by applicant, Time period of providing supply Restoration of Supply Fuse off call, Overhead line breakdown, Distribution transformer failure, Underground cable fault, Scheduled outage Quality of Supply Maintenance of voltage within the specified range, Control of the harmonics Meters Restoration of supply in case of burnt meter, Meter inspection and replacement Reconnection Reconnection of a consumer who has been disconnected for less than six (6) months

42 6-Jun-14 Page 42 List of Guaranteed SoP against which Compensation is Applicable…2/2 Service AreaPerformance Standard Complaints on Consumers Bills Acknowledgment of receipt, Resolution of billing complaints Consumer charter / service Visible display of name tag by authorized representative, show proof of identity Other Services Reading of consumers meter, Change of name, Change of tariff Category,Reduction in contract demand / sanctioned load, Closure of account

43 6-Jun-14 Page 43 Overall Standards of Performance…1/2 Service AreaPerformance Standard Fuse-off call At least 99% calls received should be rectified within prescribed time limits in both Cities and Towns and in Rural areas Line Breakdowns At least 95% of cases resolved within prescribed time limit in both Cities and Towns and in Rural areas Cable Break down At least 95% of cases resolved within prescribed time limit in both Cities and Towns and in Rural areas Distribution Transformer Failure At least 95% of DTRs to be replaced within prescribed time limits in both Cities and Towns and in Rural areas SAIFI, SAIDI, CAIDITo be decided every year Period of Scheduled Outage At least 95% of cases resolved within time limit Frequency variations To maintain supply frequency within 49 – 50.5Hz as per IEGC.

44 6-Jun-14 Page 44 Overall Standards of Performance…2/2 Service AreaPerformance Standard Voltage Unbalance Maximum of 3% at point of commencement of supply % Billing mistakesNot exceeding 0.1% % Faulty metersNot exceeding 3% New / Addition to Supply, Transfer of ownership and change of Category, Temporary supply, Reconnection of Supply, Shifting of Meter / Service Connection At least 95% cases should be complied within prescribed time limits The compensation paid by the Distribution Licensee for respective parameter, may be allowed to be recovered partly or fully in the Aggregate Revenue Requirement (ARR) of Licensee, keeping in view the extent to which the licensee is able to achieve the Overall Standards of Performance.

45 6-Jun-14 Page 45 Information regarding Level of Performance The Distribution Licensee shall maintain and submit information regarding a)The level of performance achieved by the Licensee during a month; b)The number of cases in which compensation was made and the aggregate amount of compensation made; to the Forum on a monthly basis and put up such information on the internet website of the Distribution Licensee, within a period of thirty (30) days from the end of the month. It shall also submit the above information to the Commission on an annual basis, within a period of thirty (30) days from the end of the financial year. It shall separately state the total number of cases where compensation has been paid by it without dispute and the total number of cases where compensation has been paid in compliance with an order or direction of the Forum or Ombudsman, along with the total amount of compensation in each category.

46 6-Jun-14 Page 46 Audit Report The Commission may authorize the Commission staff or any independent agency to conduct annual checks, in order to monitor the compliance of the standards by the Licensees and submit audit report to the Commission. The audit report shall address the following specific matters: a) Adherence to procedures and formats as per Regulations; b) Assessing staff engaged in call centres/ complaint handling centres/ customer care centres for their understanding of complaint handling procedures, quality parameters, and training adequacy for their task; c) Method of data collection and management procedures and d) Review of relevant records (as per appropriate sampling procedures) for reliability and accuracy across quality parameters.

47 6-Jun-14 Page 47 Procedure for engaging agency The following procedure shall be adopted for engaging agency: a) Audit scope and the methodology for carrying out the audit to be set by the Commission b) The Commission will identify and publish panel of approved agency c) Licensee shall nominate an agency from notified panel of agencies d) Licensee shall not engage an agency: (i) consecutively for more than two years. (ii) current statutory auditor (iii) current internal auditor (iv) current consultant

48 6-Jun-14 Page 48 Auditing Methodology Grading of the audit report on performance standard submitted by the licensee shall be done in two parts: Reliability Grading Accuracy Grading Note : If Reliability Grading of data is A then only further analysis to check accuracy will be carried out Reliability GradeAssessment of reliability grade A Based on proper records with adequate procedure BData has significant procedural deviations CUnsatisfactory data Accuracy Grade Assessed accuracy level Percentage of compensation paid to be recovered through ARR 1+/-2%100% 2+/-5%85% 3+/-10%70%

49 6-Jun-14 Page 49 Contents 1.About ABPS Infra 2.Related Provisions of Electricity Act, Salient features of Draft MERC (Standard of Performance of Distribution Licensees, Period of Giving Supply and Determination of Compensation) Regulations, Comparison of Standards of Performance specified by different SERCs.

50 6-Jun-14 Page 50 Comparison of Performance Standards Draft Maharashtra Electricity Regulatory Commission ( Standard of Performance of Distribution Licensees, Period of Giving Supply and Determination of Compensation) Regulations, Andhra Pradesh Electricity Regulatory Commission (Licensees' Standards of Performance) Regulation, Delhi Electricity Supply Code and Performance Standards Regulations, 2007, DERC. Madhya Pradesh Electricity Regulatory Commission (Distribution Performance Standards) Regulations, The Electricity Supply Code 2005, Uttar Pradesh Electricity Regulatory Commission.

51 6-Jun-14 Page 51 Compensation Schedule… New Connection StandardMERCAPERCDERCMPERCUPERC* In case connection is to be from existing network Rs 100 per week or part thereof of delay Rs.50 for each day of default Rs.10 per Rs 1000 (or part thereof) of the demand charges deposited by consumer for each day of default Rs. 100 for each day of delay for LT Rs. 200 for each day of delay for HT NA Where extension or augmentation of distributing main is required Rs 100 per week or part thereof of delay Rs.50 for each day of default in case LT network is to be augmented Rs. 250 in all other cases Rs.10 per Rs 1000 (or part thereof) of the demand charges deposited by consumer for each day of default Rs. 100 for each day of delay for LT Rs. 200 for each day of delay for HT NA Where commissioning of sub-station is required Rs 100 per week or part thereof of delay Rs.500 for each day of default 10% of the amount deposited by developer per week of default Rs. 100 for each day of delay for LT Rs. 200 for each day of delay for HT NA * Time limits for providing connection has been specified by UPERC in Supply Code Regulations, but compensation schedule for the same has not been provided.

52 6-Jun-14 Page 52 Compensation Schedule… Restoration of Power StandardMERCAPERCDERCMPERCUPERC Fuse off call Rs 50 per hour or part there of delay Rs.50 in each case of default Rs. 50 for each day of default Amount equivalent to 2%of last paid electricity bill subject to a maximum of Rs 50 in each case of default Rs. 50 in each case of default Overhead line breakdown Rs 50 per hour or part there of delay Rs.50 in each case of default Rs. 50 for each day of default Amount equivalent to 2.5%of last paid electricity bill subject to a maximum of Rs 50. to each affected consumer. Rs. 50 to each affected consumer Distribution transformer failure Rs 50 per hour or part there of delay Rs.100 in each case of default Rs. 100 for each day of default Amount equivalent to 2.5%of last paid electricity bill subject to a maximum of Rs 50. to each affected consumer Rs. 50 to each affected consumer Underground cable fault Rs 50 per hour or part there of delay Rs.50 in each case of default NA Scheduled outage Nil Rs.100 in each case of default NA Amount equivalent to 2%of last paid electricity bill subject to a maximum of Rs 100 to each affected consumer. NA

53 6-Jun-14 Page 53 Compensation Schedule… Quality of Supply StandardMERCAPERC*DERCMPERCUPERC Maintenance of voltage within the specified range of the declared voltage Rs 100 per week or part thereof for which voltage varies beyond the specified range Rs.50 for each day of default if no expansion/ enhancement is necessary Rs.100 if expansion is necessary Rs. 250 if erection of new Sub-Stn is necessary Rs. 50 for each day of default for local fault or due to Transformer tap Rs. 100 for each day of default for other causes Amount equivalent to 2%of last paid electricity bill subject to maximum of Rs.50. in each case of default if no expansion/ enhancement is necessary 1%if expansion/ enhancement is necessary Rs. 50 in each case of default if no expansion/ enhancement is necessary, Rs. 150 if expansion/ enhancement is necessary Control of the harmonics level at the point of supply. Rs. 100 per instance provided that the Commission shall separately notify the date from which such compensation shall be payable NA Amount equivalent to 0.5%of last paid electricity bill subject to maximum of Rs.50. in each case of default NA * Compensation payable to individual consumer if the event affects a single consumer. Compensation payable to individual consumer if the event affects a more than one consumer, is separately provided in Regulations by APERC

54 6-Jun-14 Page 54 Compensation Schedule… Metering & Billing StandardMERCAPERC*DERCMPERCUPERC Restoration of supply in case of burnt meter Rs 100 per week or part thereof of delay Rs.50 for each day of default Amount equivalent to 2%of last paid electricity bill subject to a maximum of Rs 50 in each case of default Rs. 50 in each case of default Meter inspection and replacement in case of customer complaint Rs 100 per week or part thereof of delay Rs.50 in each case of default Rs. 25 for each day of default Amount equivalent to 1%of last paid electricity bill subject to a maximum of Rs 50 to each affected consumer. Rs. 50 in each case of default Resolution of billing complaints To be decided Rs.25 for each day of default NA Amount equivalent to 2%of last paid electricity bill subject to a maximum of Rs 50 for each day of default NA Reconnection of supply following disconnection due to non- payment of bills NA Rs.50 in each case of default NA Amount equivalent to 0.5%of last paid electricity bill subject to a maximum of Rs 50. Rs. 100 in each case of default * Compensation payable to individual consumer if the event affects a single consumer. Compensation payable to individual consumer if the event affects a more than one consumer, is separately provided in Regulations by APERC

55 6-Jun-14 Page 55 Compensation Schedule… Other Services StandardMERCAPERC*DERCMPERCUPERC Transfer of ownership Rs 100 per week or part thereof of delay Rs.50 for each day of default Amount equivalent to 3%of last paid electricity bill subject to a maximum of Rs 100 for each day of default Rs. 100 in each case of default Change of category Rs 100 per week or part thereof of delay Rs.50 for each day of default Amount equivalent to 3%of last paid electricity bill subject to a maximum of Rs 100 for each day of default NA Conversion from single phase to Three phase & vice-versa for low tension NA Rs.50 for each day of default NA Amount equivalent to 3%of last paid electricity bill subject to a maximum of Rs 100 for each day of default NA Conversion from low tension to High tension NA Rs.100 for each day of default NA Amount equivalent to 3%of last paid electricity bill subject to a maximum of Rs 100 for each day of default NA * Compensation payable to individual consumer if the event affects a single consumer. Compensation payable to individual consumers if the event affects a more than one consumer, is separately provided in Regulations by APERC

56 6-Jun-14 Page 56 Period for Intimation of Charges payable for New Supply MERCAPERCDERCMPERCUPERC If can be given from Existing Network 15 Days for urban areas, 20 Days for rural areas NA 3 Working days for both urban and rural areas On the spot if no erection of pole is required, 10 Days in other cases, after site inspection Where extension of distribution System is required 30 Days LT – 7 Days, HT (11 KV) – 15 Days, HT (33 KV) – 30 Days, EHT – 45 Days LT – 7 Days, HT (11 KV) – 15 Days, HT (33 KV) – 30 Days, EHT – 45 Days 15 Working days for urban area, 30 Working days for rural area 50 KW - 15 days, HT - 30 days, EHT - 60 days Note: Time Limits from the date of receipt of application for new supply.

57 6-Jun-14 Page 57 Period for New Supply…1/2 MERCAPERCDERCMPERCUPERC If can be given from Existing Network 1 Month30 Days As per Section 43 of Act ( 1 Month) LT – 10 Working Days (Urban Areas) 14 Working Days (Rural Areas) 7 Days Where extension of distribution System is required 3 Month LT - 30 Days HT, 11 KV - 60 Days, HT, 33 KV - 90 Days, EHT, Above 33 KV – 180 Days LT (up to 5 Poles) – 15 Days LT(more than 5 poles) – 60 Days, LT(new DT) – 120 Days, HT(11 KV)- 180 Days, EHT- 240 Days LT - i) All connections excluding Agriculture- 60 days, ii) Agricultural connection during season when clear access to fields is Available - 90 days, iii) Agricultural connection during season when no clear access is Available days, HT- i) If extension upto 100 meters work is involved- 30 days, ii)If extension beyond 100 meters work is involved- 90 days, EHT – 180 Days Extension of Lines- i)400 V – 45 Days ii)11 KV- 60 days iii)33 KV days iv)132 KV days DT – i)Augmentation of DT- 60 days ii)New DT- 120 days iii) Augmentation of 66/33KV S/Stn days

58 6-Jun-14 Page 58 Period for New Supply…2/2 MERCAPERCDERCMPERCUPERC Where erection of new substation is required 1 Year Within the period approved by Commission i)Un-Electrified Areas (Where augmentation from nearby existing network is possible) – 6 Months ii)Un-Electrified Areas/ Green Field Projects (Other Cases) - 12 Months* NA Note : Time Limits after the payment of charges for supply by consumer * After receipt of deposit of consumers share of necessary development charges as specified in Supply Code Regulations.

59 6-Jun-14 Page 59 Period for Reconnection of Supply following disconnection due to Non-payment of Bills MERCAPERCDERCMPERCUPERC Urban Area Rural Area Urban Area Rural Area Urban Area Rural Area Urban Area Rural Area Urban Area Rural Area 4 Hours12 Hours4 Hours 12 Hours Licensee shall reconnect the consumers installation within two days of payment of past dues along with reconnection charges and Service Line charges 4 Hours 48 Hours 24 Hours Note : Time limits after the production of proof of payment by the consumer

60 6-Jun-14 Page 60 Period for Disconnection of Supply MERCAPERCDERCMPERCUPERC 7 days in Urban Areas and 10 days in Rural Areas. Refund of security deposit along with issuance of No- Dues certificate should be made by licensee within 30 days from the date of adjustment of all dues outstanding from the consumer in Urban Areas and within 45 days in Rural Areas. NA Licensee to carry out special reading and prepare final bill, including all arrears up to the date of billing, within five days of receiving such request. NA The supply shall be disconnected permanently in following cases: (a)With the termination of the agreement. (b) If the cause for which the supply was temporarily disconnected is not removed within six months period. (c) On request of consumer after submission of an affidavit and clearing of all electricity dues. Note: Time limits after receipt of request for disconnection.

61 6-Jun-14 Page 61 Period for Voltage Fluctuation & Harmonics MERCAPERCDERCMPERCUPERC LT + 10 % and -10 %+6% and -6% HT + 6% and – 9%+6% and -9% EHT + 10% and -12.5% +10% and -10%+10% and -12.5% Harm onics Licensee shall control harmonics in accordance with that prescribed by the IEEE STD KV - 3% 33KV - 8% 11KV - 8% To be specified by the Commission after conducting a detailed study NA EHT = 4% HT = 5% LT = 10%

62 6-Jun-14 Page 62 Period for Complaint Related to Voltage Fluctuation MERC*APERC*DERCMPERCUPERC 2 Days, if fault is identified to a local problem 10 days if no expansion / enhancement is involved 120 Days if up- gradation of distribution system is required 10 days if no expansion / enhancement is involved 120 Days if up-gradation of distribution system is required Local problem :4 Hours Tap of transformer:3 Days Repair of distribution line / transformer / capacitor:30 Days Installation and Up-gradation of High Tension / Low Tension System :90 Days 10 days if no expansion / enhancement is involved 180 Days if up- gradation of distribution system is required Within 24 hours in case of local problems. Within 6 months in case of inadequacy of LT distribution system. Within 12 months in case of deficiency in the HT distribution system. *Where a substation is required to be erected to resolve such complaints, the Licensee shall submit to the Commission a proposal for erection of the substation and get the same approved by the Commission.

63 6-Jun-14 Page 63 Period for Restoration of Power Supply MERCAPERCDERCMPERCUPERC Urban Area Rural Area Urban Area Rural Area Urban Area Rural Area Urban Area Rural Area Urban Area Rural Area Fuse-off calls 4 Hours 24 Hours 4 Hours 12 Hours 3 Hours 8 Hours4 Hours 24 Hours 4 Hours8 Hours Overhead line breakdowns 6 Hours 24 Hours 6 Hours 24 Hours 6 Hours 12 Hours 3 Days8 Hours 48 Hours Distribution transformer failures 24 Hours 48 Hours 24 Hours 48 Hours 48 * Hours 1 Day7 Day 24 Hours 72 Hours Undergroun d cable faults 12 Hours 48 Hours 12 Hours 48 Hours NA 24 Hours 96 Hours Period of Scheduled Outages 12 Hours NA12 HoursNA * Temporary Restoration of supply through mobile transformer or another backup source within eight hours shall be provided.

64 6-Jun-14 Page 64 Meter Related Issues Service MERCAPERCDERCMPERCUPERC Replacing faulty/ non- working meters 5 days in Urban Areas and 10 days in Rural Areas 15 Days* 15 days in Urban Areas and 30 days in Rural Areas 15 Days * Replacing burnt meters for causes attributable to Licensee 5 days in Urban Areas and within 10 days in Rural Areas 7 Days The Licensee shall restore supply within six hours upon receipt of complaint bypassing the burnt meter and new meter shall be provided within three days 7 Days The Licensee shall restore the supply immediately after by- passing the burnt meter. A new meter shall be installed by the Licensee within 3 days. Replacing burnt meters for causes attributable to Consumer Licensee shall serve a notice to the consumer for recovery of cost of the meter within 7 days of detection and shall replace the meter within 15 days on receiving the payment Licensee shall serve a notice to the consumer for recovery of cost of the meter within 7 days of detection and shall replace the meter within 7 days on receiving the payment NA Licensee shall serve a notice to the consumer for recovery of cost of the meter within 7 days of detection and shall replace the meter within 7 days on receiving the payment The cost of the meter shall be borne by the consumer. The consumer shall be assessed under section 126 of the Electricity Act 2003, and shall be punishable under section 138 of the Electricity Act * After carrying out testing of meter, the cost of which shall be borne by Licensee

65 6-Jun-14 Page 65 Complaints Related to Consumer Bills Service MERCAPERCDERCMPERCUPERC Acknowled gement of complaint Immediately if received in person, 7 working days if the complaint is received by post Immediately if received in person, 2 working days if the complaint is received by post Immediately if received in person, 3 working days if the complaint is received by post Immediately if received in person, Next working days if the complaint is received by post NA Resolving of complaint On the same day if made in person, On the day of acknowledgem ent, if complaint is made by post. Within 10 days of receipt, if additional information is required. Within 24 working hours of its receipt. Within 7 days of receipt, if additional information is required. Within 15 days of receipt, if no additional information is required. Within 30 days of receipt, in case any additional information is required. On the same day of receipt. If additional information is required, within 5 days in urban areas and 10 days in rural areas, in the following cases: (a) HT consumers, whose disputed amount less than or equal to Rs 20000/- (b) LT consumers, whose disputed amount less than or equal to Rs 20000/-, excluding cases where the disputed amount is due to arithmetical or clerical errors NA

66 6-Jun-14 Page 66 Transfer of Ownership and Change of Category Service MERCAPERCDERCMPERCUPERC Transfer of ownership Within second billing cycle Within 7 days of receipt of application Within two billing cycles Within 10 days after completion of formalities Mutation will be effected within 7 days of payment of any outstanding dues Change of category Within second billing cycle Within 7 days of receipt of application Licensee shall inspect the premises and change the category within ten days from the date of acceptance of application. Such change of category shall be effective from the date of deposit of inspection fee. Within 10 days after completion of formalities NA Conversion from single phase to Three phase & vice-versa for low tension Within second billing cycle Within 30 days of receipt of application NA Within 30 days from the date of payment of necessary charges Within 90 days, in case of extension of line is required NA Conversion from low tension to High tension Within third billing cycle Within 60 days of receipt of application NA Within 30 days from the date of payment of necessary charges Within 90 days, in case of extension of line is required NA

67 November 2010 ABPS Infrastructure Advisory ABPS Infrastructure Advisory Private Limited THANK YOU


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