Energetica India Magazine: september 2020

J aideep M ukherji : Power generation and transmission sectors are doing relatively well. A major part of the problem current- ly lies with the distribution sector. Therefore, I feel major re- forms need to be initiated in the power distribution sector to address the challenges facing the power sector. Privatization of the sector will be key to ensuring profitability and operation efficiency for the sector. The recent announcement privatiz - ing the DISCOMs in Union Territories was a significant step in this direction. Increased private sector participation in power distribution will not only help DISCOMs deal with the growing financial stress but also enhance the quality of services and foster healthy competition, giving consumers multiple options to choose the right distributor-based on performance. What will be your key suggestions to improve the financial health of the distribution companies (Discoms) in India? J aideep M ukherji : India in recent years has emerged as one of the leaders in providing access to electricity to its citizens, almost doubling the access rate in the past 20 years from 59.4% to extending grid connections to 100% households in the country. This has been made possible through a multitude of efforts, including enhancing power generation to reduce supply deficits, strengthening the backbone of the electricity supply infrastructure, and ensuring last-mile connectivity for different customer segments. However, impediments to provid- ing reliable and sustainable power supply across the country, still exist, impacting the financial viability and operational effi - ciency of Distribution companies (DISCOMs). The following reforms, I believe, can bring about improved fi - nancial performance for DISCOMs: A) Improve the organizational efficiency In order to improve reliable electricity access and create pref- erence among end users, DISCOMs first need to plug the ex - isting gaps such as inaccurate billing, and lack of awareness among customers around collection processes. For example, infrequent billing often leads to accumulation of unpaid bills. Customers find it difficult to pay the accumulated bills later. This in turn affects DISCOMs’ collection efficiency, affecting the fi - nancial performance of DISCOMs. The new electricity connec- tion process needs to be further simplified for household and non-household customers. Currently, the average time it takes to get a new connection in rural areas is 65 days. This can be brought down and be made customer- friendly with minimal documentation requirements. This will not only improve cus- tomer satisfaction but also have a positive effect on DISCOMs’ overall performance and demand for new connections. B) Strengthen customer engagement and grievance redressal It is critical to have an effective grievance redressal mecha- 22 energetica INDIA- September_2020 INTERVIEW nism to safeguard customer’s interests and provide high qual- ity services. Areas such as billing and collection, complaint redressal, and customer services need special attention from DISCOMs which, if worked upon, can dramatically increase customer satisfaction. Standardized customer interface pro- cesses, customer engagement/relations department, enforce- ment of Standards of Performance established by the State Electricity Regulatory Commission, and increased social me- dia interface can help DISCOMs improve their engagement with customers and promote adoption of new connections among rural customers C) Speed up technology upgradation The next phase of growth in the distribution sector should be led by innovative technological solutions that will not only enhance quality of services and ensure reliable power supply, but also help reduce DISCOMs’ losses. Smart Grids and Smart Meter- ing ecosystem will further introduce transparency through re- al-time monitoring of electricity supply and improve operational efficiency and bill collection processes of DISCOMs. D) Implement data-driven planning for all future investments in distribution infrastructure, with a focus on improving reliability and quality of supply New infrastructure plans should include reaching 100% cov- erage of customer and system metering. This will enable utili- ties to monitor energy consumption and losses at various volt- age-level areas. System metering would include installation of boundary meters, feeder meters, and DT meters. To improve the level of power reliability and quality they deliver, utilities must now focus on the capacity and condition of their infra- structure. Each utility should have a detailed infrastructure in- vestment plan based upon the intraday load pattern, load flow analysis of individual circuits, and infrastructure capacity. Also, utilities need to conduct a cost-benefit analysis for each com - ponent of their infrastructure investment plan. How do you see the road ahead for India’s ambitious plan for ‘One Sun, One World, One Grid’ (OSOWOG)? J aideep M ukherji : It was a great initiative by the Prime Minis- ter to connect the world to ‘One Grid’ and build an ecosystem of interconnected renewable energy resources. But recently, the Union Ministry of New and Renewable Energy (MNRE) has put requests for proposals for this initiative on hold till fur- ther notice. Under the current geopolitical circumstances and COVID-19 pandemic, the road ahead looks uncertain for the initiative despite the noble intention behind. But I feel that India should continue to lead the discussions with other like-minded countries and iron out the existing differences to see the initia- tive through.