AT&C Loss Status & Way Forward Mumbai 5 th August 2006 Chief Engineers 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 AGENDAAGENDA

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 LOSSESCOMMERCIAL 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

MahaVitarans Losses – A Snapshot Parameter Energy Input (MUs)65,92867,28969,275 Energy Sales (MUs)40,74443,55046,705 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 ZONEFY FY KALYAN15.86%17.19% NAGPUR20.74%20.42% PUNE19.28%21.90% KOKAN20.55%23.23% NAGPUR (U)25.94%25.23% BHANDUP (U)29.23%29.54% KOLHAPUR22.83%30.86% NASIK31.17%41.07% AMRAVATI39.45%41.08% AURANGABAD44.67%45.39% LATUR61.08%63.71% Circle-wise AT&C Losses

AT&C Loss Targets ZONEFY FY FY LATUR AURANGABAD AMRAVATI NASIK KOLHAPUR BHANDUP (U) NAGPUR (U) KOKAN PUNE NAGPUR KALYAN Circle-wise AT&C Loss Targets

Distribution Losses ZONEFY FY FY KALYAN21.27%19.52%17.54% NAGPUR22.38%22.96%19.53% KOKAN22.69%17.85%19.78% PUNE23.03%19.70%20.69% BHANDUP (U)27.70%23.55%24.11% NAGPUR (U)34.01%26.64%24.63% KOLHAPUR24.28%22.07%25.53% AMRAVATI38.18%38.39%36.19% NASIK32.93%30.29%36.55% AURANGABAD41.62%40.22%38.47% LATUR51.96%55.74%52.93% Circle-wise Distribution Losses

Distribution Losses Action Taken & Achievements Energy accounting and fixing of responsibility at all levels -80% Feeders EA Completed, -50,000 DTCs (about 49%) Metered & EA Completed50,000 DTCs (about 49%) Metered Theft reduction drive including abetment & action against employees: - FIR Against 22 Employees - Disciplinary Action Against 389 Employees Flying Squads Deployed Thefts detected26572 Thefts detected Outsourcing of Meter Reading, Bill Distribution and Collection Bhiwandi Franchisee Finalized HVDS Centre of Excellence - DRUM Project at Aurangabad : Tenders InvitedDRUM Project Commercial Intelligence Wing Set Up LOSSES REDUCED BY 3.15% TO 27.9% IN

Distribution Losses to be reduced to 19 % by [with 3% reduction each year]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) Lakh Ag connections to be metered by the year ,000 HT consumers will get AMR Ludhiana Pattern to be introduced on large scale. FUTURE PLANS

Collection Efficiency ZONEFY FY FY KALYAN102.78%104.05%99.85% NAGPUR (U)98.55%100.31%98.57% PUNE91.98%100.06%98.00% NAGPUR97.97%101.36%97.12% KOKAN92.84%96.11%95.18% KOLHAPUR76.81%98.91%92.72% BHANDUP (U)88.39%92.30%92.50% NASIK85.79%98.40%92.38% AMRAVATI91.32%98.08%92.14% AURANGABAD83.72%91.84%88.06% LATUR67.29%87.93%77.02% Circle-wise Collection Efficiency

Collection efficiency Action Taken & Achievements After Company formation Monthly repatriation has increased from Rs. 932 Cr. to Rs Cr. Collection Efficiency has reached 95.32% in Elimination of average billing: Normal Billing Increased to 84.2% in fromNormal Billing 77.44% in % disconnection of consumers with arrears above Rs.5000/- Reduction of arrears (RCI Arrears which were Rs Cr in Mar05 reduced to Rs Cr in Mar06, have however increased to Rs Cr in May06 ) Reduction of arrears 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 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 % AT&C Loss 26.5% FY % AT&C Loss 17% Feeder EA DTC Audit Normal Billing RCI Arrears To undertake higher feeder accounting To concentrate on feeders with loss >25% To increase % of circles with normal billing more or equal to MahaVitarans Average To undertake higher DTC accounting To concentrate on DTCs with loss >25% To substantially reduce RCI Arrears To reduce the number of connections pending (especially Commercial)

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Circle-wise AT&C Losses CIRCLE FY FY Akola37.6%33.8% Amravati37.2%31.7% Buldhana38.9%27.1% Yavatmal40.0%37.1% Aurangabad (U)33.0%29.7% Aurangabad (R )32.9%30.8% Jalna33.4%28.8% Parbhani35.7%32.3% Bhiwandi22.9%29.7% Thane (U)24.0%23.6% Washi10.9%6.8% Kalyan I32.8%30.3% Kalyan (U)32.5%24.0% Pen9.4%8.8% Vasai18.0%16.1% Ratnagiri13.6%15.1% Sindudurg26.3%28.6% Ganeshkhind (U)13.4%11.8% Pune (R)23.4%24.8% Rastapeth (U)17.5%16.3% CIRCLE FY FY Beed38.4%38.8% Latur51.5%37.8% Nanded51.7%45.4% Osmanabad49.3%34.1% Nagpur (U)33.0%30.8% Nagpur (R )19.4%17.4% Bhandara38.4%32.4% Chandrapur12.8%10.8% Gadchiroli36.4%31.3% Gondia38.4%32.4% Wardha14.0%10.4% Anagar26.2%30.6% Dhule37.9%36.8% Jalgaon30.4%32.8% Nasik (U)17.2%16.9% Nasik (R )28.4%35.8% Kolhapur14.1%13.3% Sangli23.8%16.4% Satara17.9% Solapur26.8%32.8%

Circle-wise AT&C Loss (%) Target

Circle wise Distribution losses (%) CIRCLE FY FY Beed55.16%59.10% Latur56.66%46.70% Nanded56.15%55.80% Osmanabad53.60%48.10% Nagpur (U)33.50%31.10% Nagpur (R )20.28%19.00% Bhandara38.39%34.80% Chandrapur13.74%12.10% Gadchiroli37.16%34.70% Wardha14.18%11.10% Anagar27.45%36.40% Dhule38.89%42.20% Jalgaon32.42%38.80% Nasik (U)18.04%17.20% Nasik (R )29.92%38.80% Kolhapur15.33%14.90% Sangli24.73%17.80% Satara19.63%20.10% Solapur27.48%39.90% CIRCLE FY FY Akola39.90%37.39% Amravati39.14%34.80% Buldhana40.40%30.40% Yavatmal41.87%42.40% Aurangabad (U)34.45%31.10% Aurangabad (R )36.66%37.90% Jalna37.01%33.00% Parbhani52.12%52.50% Bhiwandi37.44%44.50% Washi11.81%7.90% Kalyan I32.82%25.10% Kalyan (U)32.82%31.50% Pen9.63%9.50% Vasai19.04%17.50% Ratnagiri15.11%16.90% Sindudurg27.35%29.50% Ganeshkhind (U)14.46%12.70% Pune (R)24.20%27.50% Rastapeth (U)18.30%17.10%

DTC Losses DTC Energy Audit

DTC Energy Audit (May 06) RankCircleE.A. Done 0-25% 1Ratnagiri154282% 2Washi212580% 3Rastapeth312473% 4Sindhudurg65071% 5Ganehkhind329665% 6Solapur155763% 7Nagpur (U)240962% 8Nashik (U)317959% TOP 8 BOTTOM 8 State Average = 49%, Out of RankCircleE.A. Done 0-25% 1Beed5158% 2Bhiwandi11149% 3Parbhani82211% 4Osmanabad34111% 5Nanded79617% 6Abad (R )83517% 7Gondia30518% 8NRC130419%

Zone Wise Feeder Energy Audit Report (May 2006) ZONE No of Feeders EA Generated LOSS RANGE Below 0%0-25%Above 25% No.% % % Amravati Aurangabad Bhandup (U) Kalyan Konkan Kolhapur Latur Nagpur (U) Nagpur Nashik Pune Total

Theft Cases Detected In Rs lakhs

Outsourcing of Meter Reading, Bill Distribution & Collection Agreement has been signed between the Dir (Opns), Mahavitaran and Director (Technical Education) in Maharashtra about the Meter Reading, Data Punching & Bill Distribution by the ITI Students. Outsourced Spot Billing has been introduced in 20 cities. It will be further extended in all the circles. Outsourced ATP machines have been installed at 50 locations. 67 More SEVAK ATMS will be installed by Oct 06 Outsourced Mobile Collection Centres will be started

High Voltage Distribution System Area Estimated Cost (Rs Crore) Pune, Rastapeth8.39 Nashik0.6 Vasai1.75 Thane, Mumbra0.7 Nagpur, Laskaribaug7.85 Jalgaon5.69 Aurangabad9.25 Nagpur, Binaki5.88 Kalyan, Kon0.98 Amravati8.24 Total49.33

DRUM Project Urban division- I, Aurangabad Selected as pilot site. Project to be implemented with the assistance of USAID, MoP. DPR preparation completed. Cost of the Scheme:- Rs. 131 Crores. Scheme submitted to PFC on 6th March for financial assistance, under APDRP scheme. Ten divisions identified as shadow Units to compete with Aurangabad. Invitation of Tenders for various works in progress at Aurangabad Zone

For Circles with above 40% Distribution losses -3% reduction in every year For Circles having losses between 30% to 40% - 3% reduction in every year for first three years and 1.5% in next two years For Circles having losses between 25% to 30% - 3% in first two years and 1% in next three years For Circles having losses between 20% to 25% - 1.5% in first two years and 1% in next three years Companys Target for Loss Reduction over 3 years 28% 25% 22% 19% (FY 05-06) (FY 08-09) Reduction in Distribution Losses

Circle-wise Distribution Loss (%) & Target Loss (%)

Circle-wise Collection Efficiency (%) CIRCLE FY FY Akola Amravati Buldhana Yavatmal Aurangabad (U) Aurangabad (R ) Jalna Parbhani Bhiwandi Thane (U) Washi Kalyan I Kalyan (U) Pen Vasai Ratnagiri Sindudurg Ganeshkhind (U) Pune (R) Rastapeth (U) CIRCLE FY FY Beed Latur Nanded Osmanabad Nagpur (U) Nagpur (R ) Bhandara Chandrapur Gadchiroli Gondia Wardha Anagar Dhule Jalgaon Nasik (U) Nasik (R ) Kolhapur Sangli Satara Solapur

Normal Billing as on 31 st May 2006 Circle-wise Normal Billing ZONENormal Billing % NAGPUR (U)90.88% KOKAN89.43% KOLHAPUR89.27% BHANDUP (U)85.38% AMRAVATI84.66% PUNE83.25% KALYAN82.11% NAGPUR81.65% NASIK77.89% LATUR75.06% AURANGABAD72.02%

Circle-wise Normal Billing (%) as on 31 st May 2006 CIRCLE Normal Billing Akola81.74 Amravati88.43 Buldhana82.34 Yavatmal85.18 Aurangabad (U)80.49 Aurangabad (R )74.46 Jalna67.21 Parbhani64.47 Bhiwandi45.92 Thane (U)89.82 Washi88.34 Kalyan I80.92 Kalyan (U)79.60 Pen76.94 Vasai88.40 Ratnagiri88.23 Sindudurg91.55 Kolhapur90.80 Sangli90.25 Satara90.15 CIRCLE Normal Billing Solapur84.21 Beed60.19 Latur75.51 Nanded78.93 Osmanabad85.41 Nagpur (U)95.20 Nagpur (R )83.71 Bhandara84.45 Chandrapur83.97 Gadchiroli75.26 Gondia82.67 Wardha80.80 Anagar77.04 Dhule76.01 Jalgaon72.26 Nasik (U)85.86 Nasik (R )80.50 Ganeshkhind (U)86.89 Pune (R)79.17 Rastapeth (U)83.54

Zone-wise RCI Arrears ZONE RCI Arrears Amount (Rs.Cr) Mar04Mar05Mar06May06 NAGPUR NAGPUR (U) AMRAVATI KOKAN KOLHAPUR NASIK KALYAN PUNE LATUR AURANGABAD BHANDUP (U) Circle-wise RCI Arrears

CIRCLEMar06May06 Akola1317 Amravati1013 Buldhana48 Yavatmal57 Aurangabad (U)2122 Aurangabad (R )98 Jalna5256 Parbhani7879 Bhiwandi Thane (U) Washi21 Kalyan I1415 Kalyan (U)1821 Pen3637 Vasai2326 Ratnagiri6771 Sindudurg21 Ganeshkhind (U)3130 Pune (R)3726 Rastapeth (U)5956 CIRCLEMar06May06 Beed8789 Latur1213 Nanded26 Osmanabad3334 Nagpur (U)3436 Nagpur (R )46 Bhandara32 Chandrapur33 Gadchiroli22 Gondia55 Wardha156 Anagar2021 Dhule1415 Jalgaon2529 Nasik (U)69 Nasik (R )2021 Kolhapur49 Sangli88 Satara44 Solapur1920

No. of RCI connections pending as on 31 st May 2006 CircleRCITotal Akola Amravati Buldhana Yavatmal Aurangabad (U) Aurangabad (R ) Jalna Parbhani Bhiwandi Thane (U) Washi Kalyan I Kalyan II Pen Vasai Ratnagiri Sindudurg Kolhapur Sangli Satara CircleRCITotal Solapur Beed Latur Nanded Osmanabad Nagpur (R ) Nagpur (U) Bhandara Chandrapur Gadchiroli Gondia Wardha A'nagar Dhule Jalgaon Nasik (U) Nasik Ganeshkhind (U) Pune (R ) Rastapeth (U)

Grievances Redressed in April 2006 Received390 Redressed341

Progress of call centers (July 2006) Call Centers

PROGRESS OF CFC (July 2006) CFC