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Potential of IT in the Power Distribution Business

Before we discuss IT based interventions in the power sector we would like you to understand what IT is.

What is Information Technology?

Information Technology is a term encompassing all forms of technology used to Generate, Collect, Transmit, Process, Analyse, Store and Present information to help users in taking well informed decisions.IT includes signal processing and data acquisition, collection,onward transmission to other locations, storing in data servers,processing of data by applying user friendly applications stored in application servers and finally presenting the result of data processing to the personnel in the form of graphs, charts, tables, etc.Thus, IT can be used for the betterment of the utility and provide competitive edge over the other market forces.

Key Areas of IT Interventions in the Distribution Business

For successful penetration of IT backbone in distribution network, the key areas of IT interventions in distribution business are listed in Box .

Box : Key Areas of IT Interventions in the Distribution Business
• Consumer Indexing

• Metering, Billing and Collection

• Energy Audit and Accounting

• Material and Asset Management

• Network Management

• Financial Management

• Sub-division Computerisation

• Substation Automation

• Project Management

• Customer Relationship Management

We now briefly explain the potential role of IT in some of these areas.• Consumer Indexing: Utilities need to maintain the database of their consumers and keep a track of addition of new consumers, increase in consumer loads or disconnection of consumers. Though tagging of consumers with concerned feeder had started in Indian distribution utilities with the start of Energy Audit, yet consumer indexing in detailed fashion using GPS technology has started only in the recent past. A large number of cities and towns have been taken up for consumer indexing.

Some utilities have preferred GPS based indexing system, while many others have adopted a simpler system. One of the direct benefits of the indexing has been capturing large number of unauthorised users of electricity. It has also resulted in better planning like shifting of transformers to the load centres, re-conductoring leading to better tail-end voltages and better fault management system. The real benefit of the consumer indexing would, however, be reaped when it is integrated with the fault management system in a comprehensive way. Many utilities have gone in for consumer indexing as a one time exercise and have not been able to update the database thereafter. This has led to the situation where benefit of the indexing has not been utilised in full.The need of the hour, therefore, is to have consumer indexing done in such a way that it gets integrated on a real time basis with the business operations. Utilities would need to suitably re-orient their business operations such as addition of a new consumer, increase of load of a consumer or disconnection of the consumer with the database, which has come up as a result of consumer indexing to make it really useful for all times to come. The efforts in this direction have been only limited and require clear understanding of the issues involved in addition to the will of the management to change to business operations taking cutting edge staff on board. Some utilities have also taken up this work beyond urban locations and have used existing available maps at a reasonably lower cost.

Metering, Billing and Collection: Some utilities are trying out better technologies for metering such as AMR and RMR.The experience of remote meter reading has been mixed. While some utilities have been successful in RMR, many of them are still not finding it very easy. Some utilities have also been able to integrate Remote Meter Reading with the billing process which has further streamlined their operations. While the potential to read the meters remotely for the HT consumes has been attempted by many Indian distribution utilities, the same has not happened with respect to the consumers of other categories.Technology is available today which not only allows meter reading of relatively low paying consumers remotely but also offers broadband services to them. Cost of using such technologies is also not prohibitive and the days are not far off when Indian distribution utilities start working significantly in this area looking for convergence with sectors like telecom and other service providers.

In fact, the attempt is already on to develop low cost meters which would act as relays or would use a network of meters to provide a last mile reading. This, when successful, would significantly reduce cost significantly. With the use of such technology, consumers can be offered broadband service including telephone in addition to many other services.There have already been many successful pilots in this area in South East Asia and Western World in the recent past.With increased focus on metering at various levels, metering of Distribution Transformers has also been taken up by a large number of utilities. Distribution transformer metering has helped utilities identify the loss making areas much more clearly and thus is extremely crucial in controlling T&D losses. The first pre-requisite to DT metering is to ensure that all consumers are tagged with a distribution transformer clearly and accurately. The various models available for DT metering vary from conventional LT CT based metering to smarter built in CT type meters.Different technologies are available in the market to read such meters which include RF and GSM. Utilities need to clearly understand the merits and demerits of various options and the cost involved while making a selection for a particular technology. We shall take up the details of IT applications for this purpose in the next unit.


IT has played significant role in breaking this barrier in many utilities. The payments through Internet, SMS and over phone have already been attempted by some Indian utilities. There are already a good number of agencies in the market which are providing such services to the utilities at a very reasonable cost.It, therefore, appears appropriate that utilities do not unnecessarily spend money on creating infrastructure at their own level but outsource such services which would not only give the consumers quality services but would also help utilities save avoidable expenditure. Utilities may also try due collection of other public utilities services such as telephone, cell phone, drinking water supply department, etc. through their counters which would help their customers in depositing all their dues at one point. This would also help distribution utilities to increase the revenue and get shorter payback period on the investment made in this area.

•Energy Audit and Accounting: The importance of putting meters at all possible points in the network and carrying out energy audit exercise needs no emphasis. Most utilities have taken up this quite seriously and have been able to identify problem areas. Some utilities are carrying out energy audit using their own staff, while some have outsourced this operation. One of the common problems many utilities face while conducting energy audits is wrong indexing and tagging of the consumers to the appropriate feeder which leads to feeder-wise losses to either sub-zero level or a level beyond 100%. The utilities, therefore, need to be very serious about proper coding, indexing and tagging of the consumers if full benefit of the energy audit is to be availed. Till such time as the utilities are able to do this with a high level of accuracy, it would be difficult for them to fix responsibility on the feeder managers having high losses.

Some utilities have made substantial efforts in using the energy audit results to plan future investments and take up works like laying HVDSAerial Bunched Cables and conducting vigilance raids, which have helped them reduce losses significantly. In view of the ever-increasing demand of more supply from agriculture sectors and heavy losses involved, there is always a tussle between the utility and the consumers on the issue.Although utilities claim that they are supplying power for announced number of hours to the agricultural sector, they face constant accusation that the same is not happening.Since energy audit results are obtained by reading feeder meters, power supply duration (in hours) for each feeder may also be obtained regularly by the utilities. It is, therefore, logical that utilities make this data for all 11 kV feeders available to the public on a regular basis. Some utilities have tried to host this data on their website which has helped them lower the criticism significantly. It has also been helpful in checking unauthorised supply to loss making areas and has helped in improving the financial situation. The data downloaded for energy audit may also be used for working out reliability indices for important towns and cities and may help the top management focus on the problem area much more objectively.

•Material and Asset Management: Most Indian utilities procure a large variety of items on a regular basis and despite that continuously face a problem of matching material in field. IT can play a significant role in not only timely procurement of items but also help utilities track various items in the field. While some utilities have been able to computerize their stores and have been able to network the same, it is yet to happen in most Indian utilities.

The need of the hour, therefore, is to ensure that the stores are computerized and networked so that the field level officers can check the availability of materials at various locations and get the required material in time. This would also help in ensuring timely procurement of items in addition to lesser lock-in period of the capital. While some Indian utilities have been able to track transformers in a limited way, most other items being procured remain untracked. This results in a situation wherein an item that failed within the guarantee period is not sent to the concerned firm within due time. Procurement, inventory management and asset tracking systems, if properly computerised, would help utilities significantly. Such measures would also lead to better financial management in the utilities.

At present, most utilities have a system of asset tracking and monitoring of each major asset, i.e., transformer, switch gears, etc. History cards are issued along with first time issue of all the new equipment with details.However, currently, this system is not being practiced fully because of increased number of assets, consumers and larger administrative areas.There are gaps and the subsequent history is not being followed. Wherever the card system is being followed, it is difficult to retrieve these cards.

•Network Management: Most Indian utilities have large networks in place. There is also an urgent need not only to improve the existing network but also to increase its size to provide better coverage to the citizens. Every Indian utility erects large number of substations and draws substantial length of line every year. Despite the presence of IT in the distribution sector for quite some time, most such important investment decisions are taken without an IT-based decision support system. A good decision support system may help decide the locations of new substations and plan things such as lengths to be re-conductored, locations of installation of capacitors, etc. which would have much smaller paybackperiod and better rate of return. This would lead to better network
management.

•Sub-division Computerisation: Sub-division is the most important unit where most of the activities in distribution utilities take place. While there have been significant IT-based interventions in Indian utilities in areas like billing, network analysis, customer relationship management and distribution automation like Supervisory Control and Data Acquisition(SCADA), the efforts to capture various activities at the sub-divisional level have been very limited.Very few utilities have been able to computerise activities at the level of sub-division. Since this involves large scale training of the utility staff and procurement of substantial amount of hardware, the same needs to be taken up after thoroughly understanding the issues involved. It would,therefore, be appropriate that the utilities take up pilot projects at the earliest in a few sub-divisions and develop software which can thereafter be used at a larger scale. Since many operations at the sub-division level are utility specific, development of a good software would call for constant interaction between the utility staff and the team developing the software. This requires cent percent involvement and backing of the top management.

•Substation Automation: Substation is one of the most important places in the distribution utilities from where supply controls are exercised. In most Indian utilities, staff posted at the substations is not very qualified especially in rural areas. It is, therefore, extremely important that substation automation is taken up by the distribution utilities not only in urban areas but also in the rural areas. While in the urban areas,substation automation has been attempted by a good number of Indian utilities and has been integrated with SCADA, it is yet to take place in most utilities in the rural areas.

•Customer Relationship Management: With an increased focus on Customer Relationship Management (CRM), most utilities are trying to establish customer care services at least in the urban areas. While these will be discussed in detail in the next block, we would like to mention the example of call centres and the use of Internet by utilities. Some of the call centres have integrated GPS based consumer indexing database while some are using billing database to identify the calling customers.Many utilities have also started taking complaints over SMS and the Internet.

Infrastructure for Effective IT Use in the Distribution Business
You may also like to know: What kind of infrastructure is required for effective use of IT in the power distribution business? This aspect may be viewed from different dimensions such as the following:

• Supporting Reduction of AT&C Losses.

• Improving Efficiency.

• Revenue Generation.

• Creating Organisational Synergy.We now briefly discuss the type of IT infrastructure required to serve these purposes.

•Supporting Reduction of AT&C Losses

This needs the placement of the supporting IT-enabled devices at various nodes.

At customer site: In the form of Electronic Meters/IT enabled conventional meters. Each meter must be capable of storing and
interfacing with the utility data loggers for billing purposes.

At DTRs and Pole tops: Placement of Remote Terminal Units (Fig.) for polling/transmitting DTR loading and energy data to the
substation for performance monitoring as well as energy accounting.

At substations: Placement of RTUs for database creation, cumulative energy accounting and fault monitoring.

At the master control centre: Placement of database servers and application servers for processing the various data collected.

Placement of RF/Mobile network devices for integration with the mobile network besides the utility specific network. This will enable
proper accounting of the energy supplied and prompt realization of bills avoiding delays and loss.
Remote Terminal Unit
Remote Terminal Unit
•Efficiency Improvement

This may be brought about by the ways discussed in Block 1 of this course. The DTR level monitoring of energy account leads to localization of the problem and thus fixing of accountability and responsibility.Moreover, the placement of RTUs generates the necessary information for control (SCADA) so as to isolate the faulty areas promptly and thus prevent fault propagation and loss of power to large areas(which would mean revenue loss).

•Revenue Generation
You have learnt in the previous sections how IT can be used for distribution loss reduction through proper metering, billing and collection and corresponding increase in revenue. Customer interface may be provided through call centres and websites.The bill collection system is built on a hierarchical basis, with local bill collection centres converging to a master billing centre and thereafter connecting to the administrative setup for decision making. The customers can dialup through Public Switched Telephone Network (PSTN) or log in through the World Wide Web (WWW)/Internet and pay his/her bills or register complaints.

•Creating Organisational Synergy
IT infrastructure brings about the integration of geographically dispersed units of the utility on a virtual platform at a central location, say the Central Office. The customers are interfaced through the Web or the PSTN or RF links and the personnel in various units are interconnected through the Mobile network or other telecom systems. This leads to the instant availability of information for decision-making and thus prevents any delays.The MIS (Management Information System) or ERP (Enterprise Resource Planning) software binds the whole physical infrastructure, human resource and the IT hardware into a single entity exchanging information and ideas, thereby leading to synergistic progress of the organisation.

Enterprise Resource Planning (ERP) or Systems, Applications and Products in Data Processing (SAP) enables effective and efficient project management, financial management and human resource management. This leads to optimal utilization of the assets and minimum blocking of funds thus eliminating wastage of resources. Such optimal utilization is extremely necessary for the utility to survive in the emerging highly competitive market scenario, which the utility has to face. The Cash Flows and Fund Flows are managed through the software packages integrated with the ERP/SAP. Several Enterprise Resource Planning (ERP) packages are available for use,like Energise, PrimeVera, mySAP,Siebel, Synergee to name a few.The conceptual IT overlay network for the electricity distribution system could be as shown in Fig.
Conceptual IT Network for the Distribution System
Conceptual IT Network for the Distribution System
Case Studies of Successful IT Interventions by Utilities
Power distribution utilities are discovering the pleasure of serving their customers through websites, call centres, remote meters, GIS and SCADA. IT is also helping them in the upkeep of equipment including transformers and switchgears. You have learnt about the IT usage of a few utilities in the previous section. Here, we present a brief description of IT initiatives of some other utilities.

Andhra Pradesh Eastern Power Distribution Company Limited APEPDCL, the distribution company of AP Transco, is responsible for undertaking distribution and bulk supply of power in five districts and 17 divisions of coastal Andhra Pradesh. A wide area network project has been established at APEPDCL. Consumer indexing is being done through GIS, and ERP is being implemented through SAP modules and billing applications.The utility has a website which displays bill details of all HT and LT consumers and offers online payment facility. Complaints can also be registered online. It has call centres where all complaints are monitored. A separate IT department initiates, develops and implements the IT applications. The IT Department is headed by a general manager; it is supported by a 30-strong team, including outsourced workforce. In 2005-06, the IT expenditure was about Rs.20 million and the same amount is planned for 2006-07.

BSES Delhi


BSES is responsible for distribution of electricity in two-thirds of the city of Delhi and serves 1.19 million customers. IT is the backbone of the company and supports all its critical operations. To improve performance and become more customer-oriented, BSES is using IT in areas including operations and maintenance, service management, vigilance, administration, human resources, finance, project automation, metering, billing and commercial issues.Through IT intervention, it aims to increase customer service, ensure the desired levels of asset reliability at lowest possible cost of ownership, make critical decisions based on real-time energy usage information, optimise operations and reduce risks. Focusing on these, BSES has conceived and implemented many IT initiatives over the past few years including a wide range of services offered based on the technology. The company leverages its IT power for several unique initiatives and has developed focused applications targeted at the consumer. For example, an online cash collection system has
been introduced. To ensure customer convenience, it has also started running mobile vans for cash collection.

BSES’s website is used to extend many services – information on bills and their payment is possible through it. Also, customers can register complaints and check the status. They can also post feedback on the services. A host of bill payment options have also been launched. They can be paid via the Internet through credit or debit cards, ITz cards and electronic clearing service. Easy-to-use bill outlets have also been opened in various parts in Delhi. It is also possible to get bill details through SMS. BSES also operates call centres to address complaints related to metering, billing connection and electricity-related faults.

The utility is effectively utilising IT to improve its key operations. It has deployed SAP modules such as HR, MM, PNM, PS and FICO. It has also implemented SCADA. All administrative activities are computerised. BSES uses Lotus Notes as a messaging media, an electronic document management system for consumer documents and integrated electronic faxes. In future, it hopes to enhance data security, leverage middleware technology, develop a learning management system and integrate GIS, SCADA, AMR and billing.

The IT network is installed at more than 400 locations. BSES boasts of a state-of-the-art data centre and server technologies to support the billing database. There is telecom connectivity at 24 locations with intercom facility. It has also set up processes for monitoring IT operations. In 2005-06, BSES spent about Rs.130 million on IT. The dedicated IT team has total staff strength of 186.

Jaipur Vidyut Vitran Nigam Limited

Jaipur Vidyut Vitran Nigam Limited (JVVNL) engages in the distribution and supply of electricity in 32 districts of Rajasthan. The power supply in the utility is managed by the eight distribution circles, 37 divisions and 152 subdivisions.IT is increasingly being used at JVVNL to improve commercial and operational performance. A server with local area network (LAN) is available at the corporate office. Computerisation has been carried out up to the division level; it is under implementation at the sub-division level. The utility has established a call centre for redress and monitoring of complaints at all district headquarters. The establishment of consumer service centres up to the sub-division level is being carried out so that consumers can sort out day-to-day grievances related to new connections, billing, metering, line shifting, load extension, etc. Its performance is being monitored according to the standards laid down by the regulator through web-enabled software at all levels.

The JVVNL website provides facilities like tender enquiry, spot billing and payment services. There are plans to extend these to consumers from Jaipur and outside. They can also get queries about billing, payment status and the consumption history answered through the website. In addition, the utility has call centres at all district headquarters to track consumer complaints. A consumer service centre for redressal of grievances has also been established. Through a portal provided by the Rajasthan government,Lokmitra centres, e-banking and credit card facility are available in Jaipur and will later be offered in the rest of the state.

The utility’s IT initiatives are driven by a separate team at the corporate, circle and division levels consisting of about 30 people. The IT department at the corporate level is headed by an executive engineer and the staff is trained in software design and development, networking as well as data storage management.

It has also installed “Any Time” payment machines and hand-held spot billing terminals have been introduced in urban areas for residential, commercial and industrial consumers so that bills can be issued on the spot after taking the meter reading.To implement and integrate these systems, a data centre is being established with a high speed communication backbone.

North Delhi Power Limited

NDPL, a joint venture between Tata Power and the Delhi Government serves a customer base of about 910,000 consumers. It has been the frontrunner in implementing power distribution reforms in the city and is acknowledged for its consumer-friendly practices. There is extensive use of IT at NDPL – in metering, network management, customer interface, billing, distributed management, outage management, AMR, emergency management,SMS-enabled call centre software, energy audit, grid MIS, etc. It has implemented technologies such as SCADA and GIS, which has automated the distribution network and helps provide high quality customer services.Moreover, with the introduction of AMR facility, the metering work done by the company is at par with initiatives in the developed world.NDPL has also undertaken some noteworthy IT initiatives for achieving consumer satisfaction. Innovative applications have been developed in-house to provide end-to-end solutions to manage important functions such as new connections, billing and metering for consumers. It has launched decentralised and bulk billing systems, and prepaid metering for improving billing and collection efficiency apart from ensuring timely and accurate bills.

It has implemented SAP solutions for meeting its ERP requirements, through which most of the processes are automated. Sarathi helps in logging requests, grievances, complaints or suggestions of employees. Management reporting has been made faster through implementation of SAP-Business Warehouse and SAP-Strategic enterprise management. The company has many IT networks operating in tandem. It uses technology that supports data,intranet, e-mail, video conferencing, etc. Of these, intranet is the most important tool for bringing about increased productivity and acceptability of IT in the organisation. It covers the entire gamut of operations and functions at NDPL.There is a knowledge management portal for every employee. Computer- based training and an inbuilt help module has improved awareness and acceptability of IT. At NDPL, IT initiatives are driven by a separate team of professionals, the head of which reports to the technical services head. This person, in turn, updates the chief operating officer. The IT team has different groups, which look after domains such as Application Development and Maintenance, Facility Management, SAP and Quality and Compliance. The IT
head is part of NDPL’s management team, which defines its overall direction.All major technological decisions are approved by this team.

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