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Partnerships in Power Franchisees Shuvendu Patnaik.

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Presentation on theme: "Partnerships in Power Franchisees Shuvendu Patnaik."— Presentation transcript:

1 Partnerships in Power Franchisees Shuvendu Patnaik

2 2 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&MMeter reading Billing Collection Grievances & public dealing

3 3 IUKAN 2013/Session 3/12th February 2013© Secure Meters Ltd There are too many contributing factors AT&C Loss Technical Loss Non 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 not delivered Late distribution Of bills Bills delivered In wrong address Errors in bill processing & billing Bills illegible/ damaged Mismatch in meter & account no. in bill Inadvertent reading error 33/11 kV S/S Transformer 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 MF Error 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

4 4 These are the areas where reliable results can be actually delivered IUKAN 2013/Session 3/12th February 2013 x This is not the domain of technical partners This is where the skills of franchisees 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 © Secure Meters Ltd Returns (Technical possibilities due to investment) Risk (Technical risk if investments do not deliver expected results) 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

5 5 IUKAN 2013/Session 3/12th February 2013© Secure Meters Ltd 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?

6 6 IUKAN 2013/Session 3/12th February 2013© Secure Meters Ltd 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

7 7 IUKAN 2013/Session 3/12th February 2013© Secure Meters Ltd 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 Assurance Involvement Risk to partner 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

8 8 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 IUKAN 2013/Session 3/12th February 2013© Secure Meters Ltd This is where a technical partner can help in many ways

9 9 IUKAN 2013/Session 3/12th February 2013© Secure Meters Ltd Energy input to Franchisee Delivered Energy Billed Energy Technical Loss Electrical infrastructure Revenue Measured Consumption Actual Consumption Input Energy Pilferage Tamper & fraud Metering errors Reading errors Delays, non payment etc. 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

10 Thank you Technical partnerships can become a great enabler for franchisees

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