1

Quality supply & Distribution

loss reduction Plan of Meerut
Discom
Dr. Krishna Kumar Singh Tomar
Executive Engineer
UPPCL
 2
Paschimanchal Vidyut Vitran Nigam
Limited (PVVNL – Meerut Discom)
 PVVNL came into existence in July 2003 as a subsidiary company of
UPPCL

 It is responsible for power distribution in Discom covering its jurisdiction

area of districts Meerut, Baghpat, Ghaziabad, Gautambudh Nagar,
Bulandshahar, Hapur, Muzaffarnagar, Saharanpur, Shamli, Bijnor,
Moradabad, Sambhal, J.P. Nagar and Rampur.
3 Paschimanchal Vidyut Vitran Nigam
Limited (PVVNL)

12th Annual Integrated Rating

and Ranking of Power
Distribution Utilities March 2024
 Key Concerns of utilities
4

 Improving Billing efficiency

 RDSS implementation and capitalization approval from UPERC
 Distribution loss guidance by UPERC in line with UDAY (Partially)
 provisions relating to sharing of distribution loss and AT&C loss does not exist in the
UPERC MYT Regulations, 2019
 Denial of OPEX Model of smart metering
 Huge capex requirement and Project work prospect in view system improvement,
smart metering
 Corporate governance practices
 Managerial reforms and HR interventions and capacity building
 SAIDI SAIFI Indices

*As Per CEA Yearly Report on SAIDI , SAIFI 2021-22

Supply Restoration -
The current position of PVVNL on distribution transformer restoration rate is with 100%
5 restoration of transformers, i.e all the transformers are restored within 36 hours of
damage/complaint received by the Utility.

8/16/2024
 HT to LT Ratio
6

 The size of the distribution network has been constantly expanding to meet the increasing
demand due to load growth. As a result of increase in the length of LT lines, high losses and
excessive voltage drops have become more frequent.

 Ratio for PVVNL is 0.41

 Therefore, by increasing the HT lines i.e. by upgrading the existing distribution network to the
HVDS system, technical losses can be reduced. Further, wherever feasible, the Discom
should setup substation and/or distribution transformers closer to the consumption hub for
minimizing the LT length.

8/16/2024
 7 Accidents
 Electrical accidents can result in serious injuries to both human beings and animals and
sometimes even lead to death.
 Accidents also cost collateral damage to property.
 Many accidents occur due to lack of operational safety and not following standard
operating procedures during operation and maintenance of electrical network.
 The best source of data on accidents of the Discoms is the information provided on their
Website (FY 2015-16) and Crime Bureau Statistics of India (State level Data for FY 2014-15).

8/16/2024
8
9 Approved trajectory of Distribution
losses
 Hon’ble Commission has approved the Distribution losses in accordance
with the trajectory as per the UDAY MoU, the Hon’ble Commission has not
adopted the collection efficiency as per the UDAY agreement and has
been issuing Tariff Orders on 100% collection efficiency, thereby partially
adopting the UDAY agreement.

 In view of the above, the approved trajectory of distribution losses in

Business Plan Order dated 27.10.2020 is neither achievable nor based on the
adoption of UDAY agreement in totality.
10
11

Present Distribution and Commercial losses status

 Distribution losses % = 12.72% FY 23-24

 Collection efficiency %= 101.42% FY 23-24

 A T&C Losses = 11.49% FY 23-24

 Billing Efficiency improved from 82.3% in FY22 to 85.6% in FY23

 Collection Efficiency improved from 94.8% in FY22 to 96.9% in FY23

T&D Losses 2022-23
12

Total Loss in 220 KV 0.47%

Total Loss in 132 KV 0.02%
Total Loss in 33 KV 0.08%
Total Loss in 11 KV & LT 16.27%
Total T&D 14.36%

Commission’s Approval of PVVNL Distribution Loss Trajectory for Control Period

13
14 Smart Metering Works
 Present Smart Meter Rollout in PVVNL scheme is OPEX model and not CAPEX model.
With roll out of Smart Meters, the billing and collection efficiency of Discoms will
increase thereby reducing the commercial losses. It is expected that the overall
O&M cost of the Discoms would also decrease due to improved billing & collection
efficiency which would be compensated by the charges paid in OPEX model.
Hence the same cannot be allowed as additional O&M expense
15 Capex
 AB Cable in LT Lines - Replacement of Bare conductors with AB cables – planned in RDSS 10115 kms
 Armoured service cable (Existing Smart meter)
 LT UG-XLPE Armoured Cable
 LT UG-Armoured service cable
 Feeder Bifurcation(11KV Line) -OH
 Feeder Bifurcation(11KV Line)-UG
 Reconductoring of 11 kV line-OH
 Reconductoring of 11 kV line-UG
 Installation of capacitor bank
 In past, the Commission has approved several schemes for theft reduction and power quality
improved like replacement of LT lines with ABC conductor, whose CAPEX was allowed in the ARR
16
Capitalization

 The Commission vide letter dated April 01, 2022 directed the Petitioners to submit the
capital expenditure of each project and take prior approval for projects with cost
above Rs. 10 Crore.

 The Commission directs the Petitioners to seek approval of the Capital Investment
under this scheme and appropriate treatment shall be done at the time of True-Up.
Similarly, the Petitioners are directed also to seek approval for any other scheme /
projects as well in which the cost incurred is more than threshold limit of Rs. 10 Crore
as provided in Regulation 44 of MYT Regulations, 2019.”
17 RDSS
 Central Government has approved the RDSS

 The key objective of the scheme is to reduce AT& C losses to 12-15 percent across India, and th
ACS-ARR gap to zero.

 loss reduction using proper utilization of funds for works on Pre-Paid Smart Metering, System
Metering, and Distribution Infrastructure.

 As regards implementation of scheme in PVVNL, Sanctioned Amount in the Project for Loss
Reduction and Smart metering works is Rs. 4946.50 crore and Rs. 3403.01 crore Respectively.
18 RDSS

 Part ‘A’– Financial support for Prepaid Smart Metering & System Metering and
upgradation of the Distribution Infrastructure

 Part ‘B’ – Training & Capacity Building and other Enabling & Supporting Activities.

 Under RDSS, financial assistance would be provided for segregation of agriculture feeders
from mixed feeders where agriculture load is more than 30%. Thereafter, States/ DISCOMs
would be solarizing these segregated feeders under various other schemes like PM KUSUM.
States/DISCOMs are in the process of tendering and award of sanctioned works of
segregation of agricultural feeders under RDSS.

8/16/2024
 19 RDSS Financing and Grant
 For Prepaid Smart metering, grant of Rs 900 or 15% of the cost per consumer meter worked out
for the whole project, whichever is lower, shall be available for “Other than Special Category”
States. For “Special Category” States, the corresponding grant would be Rs 1350 or 22.5% of the
cost per consumer, whichever is lower.

 For works other than Smart metering, maximum financial assistance given to DISCOMs of
“Other than Special Category” States will be 60% of the approved cost, while for the DISCOMs
in Special Category States, the maximum financial assistance will be 90% of the approved cost.
20
 As regards implementation of scheme in PVVNL, Sanctioned Amount in the Project
for Loss Reduction and Smart metering works is Rs. 4946.50 crore and Rs. 3403.01
crore, Respectively. Details of Total Project cost of the scheme is shown in table
below:
21
Status of RPO and Opportunities Available

UPPCL to Pay Rs. 14.59 billion for unmet RPO (UPERC

directed in an order dated June 2021)

Expanding consumer retail choice via roof top solar

8/16/2024
22

Energy audit at feeder and transformer level

 High Voltage distribution system

 DTR Fencing in critical area
 System capacity enhancement and reliance
 Loading of transformers
 Identification of relative positioning with respect to
distribution losses
23
Improving Billing efficiency

 Replacement of defective meters,

 Improved vigilance in the prevention of theft.
 Segregation of agriculture feeders.
 Increasing metering (consumer, feeder, DT).
 Installing smart meters.
 Improving power factor to curb line losses.
 Reducing electricity theft
 Deploying automated or tech-driven meter reading tools, and improving billing coverage etc.
24
Improving Collection Further

 Exploring deployment of DF
 Commercial decision taking at Division level
 Random allotment for cross functional audit.
 No commercial decision at sub-division level
 Processing application for refund/ new connection
 Only supply and maintenance at sub-division level
 Tariff Rationalisation
25 DSM

Peak demand management

Load forecasting
Local and system peak management
Customer engagement and choice
26 AI/Technology Intervention

 Analyzing data generated through IT/OT devices including System Meters, prepaid Smart
meters to prepare system generated energy accounting reports every month to enable
DISCOMs to take informed decisions on loss reduction, demand forecasting, Time of Day
(ToD) tariff, Renewable Energy (RE) Integration and for other predictive analysis.

 Development of applications related to the use of Artificial Intelligence in the Distribution

sector. Promoting the development of Startups in the Distribution Sector across the country.
 27 Developing smart infrastructure
1. PVVNL is behind from National Average in terms of power quality, such as SAIDI and SAIFI
parameters.
2. Several government schemes, including R-APDRP, IPDS, and now RDSS, have allocated funds
to improve network quality.
3. Smart interventions such as implementation of SCADA, DMS, OMS, equipment health
monitoring, condition-based maintenance of transformers, GIS mapping of assets, adoption
of ERP & CRM software, comprehensive customer app etc. can significantly enhance power
quality, operational efficiency and customer experience.
4. The installation pace of smart meters at all levels, including customer, feeder, and
transformer, could be accelerated to reduce losses.

8/16/2024
28 Focus Areas

 Consumer Meters and System Meters

 Communicable AMI meters proposed for all Feeders and Distribution Transformers to enable energy accounting, leading to better
planning for loss reduction by DISCOMs
 Installing prepaid Smart Meters should help DISCOMs in improving of their operational efficiencies and strengthen DISCOMs to
provide better service to consumers
 Feeder Segregation
 Scheme also focuses on funding for feeder segregation for unsegregated feeders, which would enable solarization under KUSUM
 Solarization of feeders will lead to cheap/ free day time power for irrigation and additional income for the farmers.
 Modernization of Distribution system in urban areas
 Supervisory Control and Data Acquisition (SCADA) in all urban areas
 DMS in 100 urban centers
 Rural and Urban area System strengthening
29 Managerial Reforms

 Creating deterrence
 Regular field visit and interaction with Senior and ground staff
 Importance of communication with lineman in the field
 Clarity about purpose
 Strategy drill down
 Organisational goal in line with individual goal
 Policy for transfer and posting for developing a culture of non-discrimination
 SOPs HR Initiative
30 Audit/Benchmarking

 Energy Balance Audit

 Identification of Bottlenecks in implementing loss reduction measures
 Sanctioned load and connected load
 Exploring deployment of DF
 Commercial decision taking at Division level
 Random allotment of audit
 No commercial decision at sub-division level
 Processing application for refund/ new connection
 Only supply and maintenance at sub-division level
31 Incentives Award and recognition

Performance based incentive

Promoting a culture of celebration and
reward
32 References
1. TRUING UP OF TARIFF FOR FY 2021-22, ANNUAL PERFORMANCE REVIEW (APR) FOR FY
2022-23 AND APPROVAL OF AGGREGATE REVENUE REQUIREMENT AND TARIFF FOR FY
2023-24

2. BUSINESS PLAN ORDER FOR MYT CONTROL PERIOD (FY 2020-21 TO FY 2024-25)

3. TRUE-UP PETITION FOR FY 2022-23, APR PETITION FOR FY 2023-24 AND ARR PETITION FOR
FY 2024-25 OF THE CONTROL PERIOD FROM FY 2020-21 TO FY 2024-25

4. MODEL REGULATIONS FOR MULTI YEAR DISTRIBUTION TARIFF

5. 12th ANNUAL INTEGRATED RATING AND RANKING OF POWER DISTRIBUTION UTILITIES

33

Thank You

8/16/2024