BASICS OF 12 POINT ACTION PLAN

In AT&C Losses, technical losses are 3 to 5% while commercial losses

are 9 to 22% ( Zone wise) . This figures strongly reveals, how emerges

to focus on reduction of commercial losses.

Performance gaps are due to metering deficiency, inefficient billing &

anomalies in recovery process & theft of energy . This 12 point action

plan emphasis on these performance deficiencies anomalies & to fill up

the performance gaps by developing innovative techniques, creative

strategies, analytical exercise & intellectual skill.

To achieve dream of single digit AT&C loss, this action plan is

transformation initiative. If this program successfully

implemented with efficient & effective co-operation & co-

ordination of field staff & local IT, It have potential to reduce

1 to 3 % of AT&C loss yearly.

“Commercial losses are nothing but the Performance Gaps”

Energy input

Energy consumption

(units)

Energy billed to consumer

(units)

Amount billed to consumer

(units)

Amount recovered

(unit)

Unit recovered

T & D LossesBILLING GAP

(Unbilled Energy)

RECOVERY GAP(Unpaid Energy)

AT&C LOSSES CONCEPT

FY2010

FY2011

FY2012

FY2013

FY2014

AT&C LOSSES 21.41 18.45 18.32 18.08 17.76

TR. LOSSES 5.79 4.62 3.27 1.23 4.08

DIST. LOSSES 20.6 17.28 16.03 14.67 14

0

5

10

15

20

25

%LO

SSES

Comparison of year wise losses

AT&C Losses,

Transmission Losses &

Distribution Losses

Comparison

AT&C LOSSES

TECHNICAL LOSSES

COMMERCIAL LOSSES

UNBILLE

D

ENERGY

UNPAID

ENERGY

source: CARE report

UNRECORDEDLOSSES

Unbilled Energy Losses

• Faulty/stop/sluggish meters

• Theft

• Unbilled consumers

• Irregularity in revisions & assessment

• Irregularity in meter updation ( final reading wrong MF)

• Provisional billing, wrong readings

Unpaid Energy Losses

• Improper disconnection drive

• Part payment

• Cheque dishonor

• Proxy disconnection

• Inefficient efforts for PD recovery

• Connection released against arrears

• Defaulter consumers

• Accumulate billing

• Disputes

• Fictitious billing

• Wrong credit bills

Unrecorded Losses

• Wrong tariff codes

• Wrong load/Demand

• Misuse of category

• Unauthorized extension of load

• Wrong slot/ demand/PF billing

CLASSIFICATION OF COMMERCIAL LOSSES

12 PIN POINTS AREAS

NEW CONNECTION

METER READING

PRE AND POST VALIDATION

PD CONSUMER & ARREARS

METERING & REPLACEMENT

BILL REVISION

SECURITY DEPOSIT

THEFT & QUALITY CONTROL

CHEQUE DISHONOR

RECOVERY & COLLECTION

BILLING PROCESSES &

STATIC UPDATION

UNBILLED METER

CAUSEES

• Improper site verification, connection released against old arrears, Delay in first bill, Irregularity in feeding NSC, no cross check, improper Documentation

EFFECTS

• Non recovery of old arrears, accommodate billing, blockage of revenue, unrecorded losses due to wrong MF, tariff, load Average billing due to wrong route- sequence, improper installation

MEASURES

• Specific format for site verification, accountability for Live/PD & recovery of arrears before sanctioning, prompt tracking of NSC up to bill, multiple authority, verification of first bill, regular checking paid pending, interlinking meter reading app

RESULTS

• Recovery of PD arrears, first bill issue timely, accuracy in reading, billing & bill delivery, accountability,

1.NEW CONNECTION

CAUSEES

• Provisional billing, faulty billing, under billing, wrong reading, other billing complaints, excessive & abnormal consumption, no physical check, frequently deviations in days of readings

EFFECTS

• Raised fictitious arrears & consumer grievances, affected on image of company, no proper control over under billing, dissatisfaction of consumer, blockage of revenue, adverse effect on financial results

MEASURES

RESULTS

• Increased normal billing, enhanced consumer satisfaction, minimize fictitious billing, improvement in collection efficiency, reduction in commercial losses, enhanced image of company, get time for concentrate other areas

2.METER READING

100% reading through mobile meter reading app, add validation in

reading, eliminating frequent provisional billing, verification &

feedback, strictly following reading schedule, redesigning of PC,

auto rectifying proper route sequence, shifting of meter, rotation of reader , make provision for extra meters in app (Unbilled)

CAUSEES

EFFECTS

MEASURES

RESULTS

3.ON SITE, PRE AND POST VALIDATION

Excessive and Abnormal reading, wrong punching , provisional billing

due to wrong status, no prompt feedback, recycles of abnormality, no

refunds/ adjustment credit bills verification, no control High arrears,

High consumer grievances, inefficient billing, low collection

efficiency, fictitious billing & arrears, wrong credit bills, recycles of

abnormalities.

Redesigning of 3 layer validation , new concept of post bill validation,

use of sorted Bill PDF for validation, improvement in feedback

mechanism concentrate on credit, average, abnormal & excessive

billing,

Normalize billing, insure accuracy & transparency improvement in

collection efficiency & consumer satisfaction, reduction in revenue

losses & arrears,

CAUSEES

EFFECTS

MEASURES

RESULTS

4.METERING & REPLACEMENT

Defective meters, Discrepancies in Mass replacement, selection of

priority & criteria, electromagnetic meters, abnormalities in updation

, delay update of replacement, no assessment as per new meter

provisional billing, under billing, lock credit, zero adjustment unit in

replacement , huge commercial losses, low assessment against

losses, dissatisfaction

Add option in reading app for faulty meters reports, Strategic

planning for mass replacement, tracking of meter replacement

prompt replacement of sluggish/faulty/no display meter, strengthen

assessment, accucheck before replacement, walk down survey

Efficient billing Minimize revenue losses, improvement in normal

billing , collection efficiency, transparency and satisfaction

CAUSEES

EFFECTS

MEASURES

RESULTS

5.BILLING PROCESS & STATIC

UPDATION

High processing time, Irregularity in static updation, low automation,

insufficient training & knowledge, miss-practices weak internal

control, no interlocking high outside dependency, errors in TOD meter

replacement

Delay & inefficiency in data updation, high potential of human errors,

Revenue losses, increase consumer grievances, adverse effect on

Sale Demand & Collection increase billing inefficiency

Online updation of static data, interlocking & reconciliation simplifying

billing processing, strengthen internal control, communication, quality

circles, workshops

Timely & efficient static updation, efficient billing, enhance consumer

satisfaction, eliminate irregularity

CAUSEES

EFFECTS

MEASURES

RESULTS

7.UNBILLED METERS

Unbilled meter due to Lock PD, reconnection paid but not live, new

connection in Paid pending and Zero SD, discrepancies while

clubbing , Proxy disconnections.

Huge commercial losses, blockage of revenue, accumulate billing,

increase disputed arrears, unrecovered PD arrears

Reconciliation of meter movement, verification of paid pending

reconnection paid, PD arrears paid before 6 months, provision for

additional meters in app analysis, zero SD list, e-connection error,

Prompt identification of unbilled consumers, increases sale &

demand, reduction in commercial losses & disputed arrears

CAUSEES

EFFECTS

MEASURES

RESULTS

6.BILL REVISION

Duplication of B-80, Inaccuracy in manual revisions, delay in

feeding, non-updation of concurrent static weak Internal control, no

periodically Reviews, pending debit B-80, low assessment count

Huge revenue losses, wrong credit billing, increasing fictitious

arrears, blockage of revenue, low collection efficiency, high

grievances

Implementation in Bill Revision Appl. & system control, interlocking,

periodically cross verification, documentation, facilate validation &

statistical report, link with static updation

Accuracy in Bill Revision, more authenticity and control, promptly

updation, improve collection efficiency, minimize grievances, control

revenue losses.

CAUSES

• Tampering, By passing of Meter/ CT, unauthorized extensions of load, change of purpose, misuse of category, multiple connections, weak performance of meters, wrong MF

EFFECTS

• Highest potential of commercial losses, huge affect on Sale & Demand, increase disputes, blockage of revenue

MEASURES

• Accucheck drives on basis of analysis, walk down survey, clubbing of meter, periodically verification of TOD consumers for category, load, MF, , inspection of excess demand consumers, checking zero consumption by Tongue tester , provision made in app for readers comments

8.THEFT AND QUALITY CONTROL

RESULTS

Prompt recovery of losses, reduction in commercial losses,

minimize disputes, improve collection, improve billing efficiency

CAUSEES

EFFECTS

MEASURES

RESULTS

9.SECURITY DEPOSIT

Duplicate SD Receipt, Non-Updation of SD, Non-recovery of Addl.SD

Demand, Discrepancies in SD deletion & adjustment of against

arrears, Zero SD consumer,

Revenue losses due to wrong SD interest paid , Consumer unbilled

due to SD., low security against arrears, increase consumer

grievances

Analytical verification & deletion of duplicate SD, efforts made for

recovery of additional SD, simplification SD adjustment/ transfer

process, unavailable SD data updated from NC module,

Saving of revenue from wrong SD interest, eliminate zero SD

consumers proper security against arrears, reduce arrears by SD

adjustment

CAUSEES

EFFECTS

MEASURES

RESULTS

10.RECOVERY AND

COLLECTION

Non delivery of bills, improper recovery drives, insufficient & non-

convenience collection facility, billing & metering deficiency, part

payment, weak monitoring

Increase arrears , low collection efficiency, unrecovered demand-

revenue blockage, high NPA

Strategic area / category wise planning for Disconnection, zero

tolerance for arrears consumers, close monitor of frequent defaulters,

improve billing efficiency & delivery, proper route sequencing, mobile

counter, promotion of online payments through app. use cash card for

Cash counter agency, issue electronic consumer card & kiosk facility,

High collection efficiency, improvement in financial performance,

minimize grievances, disputes & NPA

CAUSEES

EFFECTS

MEASURES

RESULTS

11.CHEQUE DISHONOR

Negligence in Cheque acceptance process, frequently cheque

dishonors, cheque collected against DD, non prompt recovery,

irregularity in debit adjustment, no legal action in frequent cases

Unrecovered Demand, Blockage of revenue, high potential of

revenue losses, wrong credit billing

Proper verification of cheque at acceptance, verification list of

frequent cases & fixing accountability reconciliation of cheque

dishonor & Debit adjustment, prompt recovery process,

Improvement in repatriation Minimize cheque dishonor cases

Minimize revenue blockage, prompt recovery, insure proper debit

adjustments

CAUSEES

EFFECTS

MEASURES

RESULTS

12.PD CONSUMER & ARREARS

Using unauthorized supply, new connection against old arrears,

lacuna in potential recovery & legal process, improper promotion of

schemes, fictitious arrears, negative PD arrears, adj. SD against arr.

Huge revenue losses, blockage of revenue (NPA), theft of energy,

fictitious arrears,

analyzed site verification of PD consumers , fixing accountability for

arrears, promotion of schemes, drives for fictitious withdrawal,

negative arrears & SD adjustment, legal processes, cross check of

new connections & PD consumer, provision for auto PD bill with up

to date interest.

Reduction in losses, additional revenue recovery( recovery of NPA),

reduction in fictitious arrears

Following are some Innovative suggestions for improvement

performance efficiency:

Meter reconciliation module

Online Static Data updation module

Pre & Post billing validation module

Consumer complaints, compliances & survey module

Knowledge Management system

Modification in Online Bill Revision Application & Meter

reading App

3 MONTH

53%6-12

MONTH22%

1 YEAR12%

2 YEAR13%

PAID PENDING

85%

13% 1% 1%

DELAY IN FIRST BILL

3 MONTH 6-12 MONTH

1 YEAR 2 YEAR

NORMAL

FAULTY

OTHER

RNA/RNT 87%

13%

MRI STATUS

MRI NO MRI

SAMPLE PERFORMANCE ANALYSIS OF KEY FACTORS

Source: MIS report oct-2015 Thane Circle

BILLING STATUS

78%

22%

10- 20 KW

MRI NO MRI

LIVEARREARS

DEMANDCOLLECTIO

NPD arrears

IN LAKH 11571 17432 17366 36716

0

10000

20000

30000

40000

AM

OU

NT

2%5% 1%

89%

3%

BILLING PERFORMANCE

CREDIT BILL

ABNORMAL

EXCESSIVE

NORMAL

FAULTY

Source: MIS report oct-2015 Thane Circle

24%

76%

Arrears

Live arr PD arr

CONCLUSION

12 Point action plan primly focus micro areas where huge potential

of commercial losses. Strengthening the internal processes,

Developing best practices, innovative IT base solutions, automation,

learning environment & system awareness are excel the overall

qualitative performance which ultimate reduces the losses.

Special team deploy for implementing this 12 point program in urban

zones i.e. Bhandup, Pune, Kalyan & Nashik. This team reach up to

sub division level and implement 12 point program with help of local

FS/ QC/ DAMINI PATHAK Units.

Team members are selected from multi discipline i.e. experts in

Billing & accounts, IT experts, technical specially from QC, expert

member from local zone & expert computer operator for managing

the working data & information.