Ajmer Vidyut Vitran Nigam Limited (AVVNL) had been facing many challenges in managing its distribution system. Owing to poor billing and collection efficiency, it could not invest further in infrastructure. To overcome the basic challenges in this segment, the utility implemented an outsourcing solution in Bhilwara district.
Ajmer Vidyut Vitran Nigam Limited (AVVNL) has come up with an innovative private partnership model in Bhilwara, Rajasthan to build an effective and efficient system of Metering, Billing, Collection and Associated Services. Under the model all metering, billing, collection and customer services are brought under a single umbrella. The major focus areas of the model are improving consumer engagement services, reducing AT
AVVNL appointed Secure Metering and services (Bhilwara) Pvt Ltd to deliver Metering, Billing, Collection (MBC) services to ~ 1,00,000 consumers across four sub-divisions of Bhilwara, in Rajasthan, on a management contract model. In addition to MBC services, the contractor - Secure has also been entitled with responsibilities pertaining to all consumer engagement services like complaints management, new connection, etc.
The MBC Agency was selected based on the lowest fixed fee charged per customer serviced. AVVNL remains the owner of assets and MBC agency works together with AVVNL who are responsible for HT network, network augmentation, and regulatory compliances. MBC agency is remunerated by AVVNL in a single monthly fee based on per consumer billed per month. The contract has been bound by a robust accountability matrix, service level agreement and incentive - penalty for change in AT
One of the challenges was human intervention in meter reading and payment collection leading to errors. The management of continuous network/consumer growth as well as the old network was another challenge. In terms of revenue management, the challenges were outstanding recovery, incorrect billing and limited payment options, and inaccurate energy accounting. Customer service issues included long queues at collection centres, non-timely response to power supply and billing issues and delayed response to customer grievances.
The MBC model resolves these challenges by adopting a service level agreement approach (SLA) to contract a private partner to take care of these issues. One of the salient features of this private participation model is end-to-end metering (feeder-Distribution Transformer - consumers) with requisite metering and maintenance of these assets for the contract period of 10 years. This helps DISCOM to use the metering assets for the desired average useful life of meters which is supposedly 10-15 years.
One of the key benefits of this model has been improved operational efficiency. The DISCOM is now releasing 350-400 new connections per month with an average turnaround time (TAT) of three days without augmentation requirement and average TAT of 25 days with augmentation requirement. This has been achieved with a consumer-friendly connection process.
Bhilwara has witnessed 100% automated meter reading, with no manual intervention due to this project. The model focuses on the right use of metering along with loss reduction activities driven by data analytics. The Model mandates for reduction of losses and there is a provision of associated incentive/penalty for target. Further through this model the agency is mandated to cater all consumer touch point services i.e. dedicated 24x7 call centre new connection, fault rectification, dispute resolution; transparency in meter reading, billing; increased collection avenues, etc
Network improvement has also been achieved by studying consumer meter data and analysing distribution transformer loading conditions and taking corrective actions Meter data analysis has helped in the reduction of losses and failure of transformers.
