This document outlines a 12 point action plan to reduce commercial losses in the electricity distribution sector. Commercial losses are estimated to be 9-22% of total losses and are primarily due to deficiencies in metering, billing, and revenue collection processes. The 12 point plan focuses on improving performance in areas like meter reading, bill revisions, theft detection, and recovery of unpaid dues. Successful implementation of the plan through efficient collaboration between field staff and IT teams has the potential to reduce commercial losses and overall losses by 1-3% per year, helping to achieve the goal of single digit losses.

2. 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”

3. Energy input
Energy
consumption
(units)
Energy billed to
consumer
(units)
Amount billed to
consumer
(units)
Amount
recovered
(unit)
Unit
recovered
T & D Losses
BILLING GAP
(Unbilled Energy)
RECOVERY GAP
(Unpaid Energy)
AT&C LOSSES CONCEPT

4. FY20
10
FY20
11
FY20
12
FY20
13
FY20
14
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
%LOSSES
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
UNRECORDED
LOSSES

5. 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

6. 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

7. 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

8. 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
MEASURE
S
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)

9. 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,

10. 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

11. 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

12. 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

13. 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.

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 3
MONTH
53%
6-12
MONTH
22%
1 YEAR
12%
2 YEAR
13%
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

21. LIVE
ARREARS
DEMAND
COLLECTIO
N
PD arrears
IN LAKH 11571 17432 17366 36716
0
10000
20000
30000
40000
AMOUNT
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

22. 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.