Privatization of the Power Distribution in Delhi and the exciting challenges and how they were met, a practical experience.

1. Power Distribution - POWER FOR ALL BY 2012 By Himadri Banerji CEO EPC Distribution Reliance Energy

2. Contents 1 Sector Overview 2 Opportunities & Concerns 3 Case Study: Delhi Network Modernization

3. Indian Electricity Distribution Sector An Overview “ There is a lack of accountability in distribution, outdated rules, regulations, management structures, and practices…..unless you establish accountability at all levels, you can never improve performance”. Union Minister Source: Financial Express 18 March 2002

7. Structure Before TEA 03 (Post Reforms) No Choice to Generating Co./Consumer, Limited Competition DISTRI- BUTION CONSUMER GENERA- TION GENCOs CPSU IPPs Pvt. Licensees Excess Captive ? Discom 1 (Licensee 1) Discom 2 (Licensee 2) Discom n (Licensee n) Licence Area 1 Licence Area 2 Licence Area n TRANSCOs (eg. Delhi Transco) (Intra-State Transmission, Bulk Power Purchase for Licensees) Regulator’s Role TRANS- MISSION PGCIL TRANSCO Pvt. Utilities

8. Financial position of SEBs Tariff as a % of cost of supply There is need for a paradigm shift in the structure, conduct and performance of the sector to enable investment flows Source: Annual Report 2001-02 on the Working of SEBs & Electricity Departments, Planning Commission

10. Emerging Structure: Post TEA 03 Competitive, Flexible Structure enabling Choice to Consumer Distribution Licensee 1 Licence Area Generating Companies Own Generation Distribution Licensee 2 Captive Generation Facilities Power Traders would also be involved in some of the transactions Distribution Network (Gradual Open Access) Own Distribution System Transmission Network (Immediate Open Access) Consumers

11. New Markets Without Payment or Regulatory Risk Regulated Markets Unregulated Markets SEBs/Distribution Companies Traders Captive Power Open Access Consumers 1 2 3 4 Limited Credit Risk

12. End Goals :Key Parameters

13. Indian Electricity Distribution Sector Opportunities & Concerns

19. “ If you can’t measure it, you can’t manage it.” Indian Electricity Distribution Sector Delhi Discom: Project Management Case Study

29. SCADA/DMS - GIS , a birds’ eye view Geographical info, Schematic diagram availability at central location addresses key operational concerns This ultimately leads to improvement in System Safety, Efficiency and Customer Service (Power Quality and Reliability)

30. Project Management Project Management Planning & Scheduling SAP MIS Primavera L1,L2 & L3 Schedule Contractor’s schedule Material Control Budget Control Purchase & Invoice Project Systems

31. Project Monitoring System REL Director Level Weekly Review at site Engg/Proc/Const Weekly / Daily Interface meeting Contract Review Major Packages Weekly Other packages Fortnightly / Monthly WAR Room 24x7 Operations MIS

35. Thank you July 2006