Energy Audit methodology to control losses in Power Distribution Utilities

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Energy Audit methodology to control losses in
Power Distribution Utilities

• Arindam Ghosh
• Vice President Advisory Services

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Agenda
2
Losses and Energy Accounting
3
Energy Accounting- Prerequisites
4
Loss reduction Framework
5
Case Studies

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Progress in power distribution reforms in the
country.
Collection Efficiency
ATC Losses
Billing Efficiency
Source MoP Annual Report 2007-08
Source MoP Annual Report 2007-08
Source MoP Annual Report 2007-08

• As evident there is marginal improvement across
  all the parameters in past
• Large scale investments in generation and
  transmission can be jeopardized if the problems
  surrounding the weakest link in the entire value
  chain of power are not addressed

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Barring three, all the discoms in the country
have losses more than 15
ATC Losses in different states in India
Source Infraline

• The current level of losses are unsustainable and
  seek urgent attention on part of stakeholders

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Root Cause of ATC Losses
Total Losses
Technical Losses
Commercial Losses
Collection Efficiency

• I2R Losses in HT and LT lines
• Transformation losses at different voltage levels

• Meter Reading related
• Metering related issues
• Direct tapping

• Non- Collection of billed units of energy

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Energy Accounting can be done at different level
within a distribution company...
Typical structure of Indian Power Distribution
utility

• In most of distribution companies in India,
  energy accounting is either restricted at
  regional or circle
• Energy Accounting below this level has been not
  been possible due multiple complexities.
• Loss reduction cannot be a targeted activity
  unless loss figures are computed till DTR level

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Energy Accounting- Key Challenges

• Arbitrary assessment of unmetered agriculture and
  domestic consumers makes the figures reported at
  company and regional level unreliable

• Import/Export of energy between circle,
  divisions, sub-divisions
• Metering at Import/Export points of circles

• 11 kV and DTR Metering
• Consumer Indexing
• Segregation of Tech Comml Losses

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Energy Accounting at Office Level
No unmetered connections to domestic consumers
Unmetered Domestic Consumers
Unmetered Agriculture consumers
Option1- Metering of all Agricultural consumers
Option2 -Clear guidelines for assessment of
agriculture consumption
Export/Import of Energy
Installation of import/export meters at interface
points between circles, divisions, sub-divisions
and zones Third party meter reading of
import/export points
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Pre-requisites for Energy Accounting at 11 kV
feeder and DTR level
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Institutionalizing the energy accounting process-
Creation/ Strengthening of Energy Accounting Cell

• All the data collection and computation for
  energy should be carried out centrally at
  corporate office with as much automation as
  possible

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After the establishment of baseline losses,
affirmative actions can be planned using this
framework
Business Issue identified from Indicators
Major Business Issues on the Feeder
Feeder
List of
Value of
Indicators

Indicators


Diagnostic




Business Issues Mapped to the Proposed
Interventions
Intervention
Investment
Funding

Investment
required on the
Plan

Implementation

Requirement

Feeder

• The business issues can be identified with
  analysis in terms of meter reading , metering and
  theft through combination of data analysis backed
  with field experience and actions can be
  prioritized accordingly

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Illustrative Indicators of loss diagnosis
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More Illustrative Indicators of loss diagnosis
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Identification of business issues can be followed
with the interventions.
Business Issue
High Investment
Intervention
Medium Investment
Low Investment
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Suggested Interventions Meter Reading
(Illustrative)
Low Investment Interventions
1

• Performance based contract with adequate
  monitoring mechanism
• To improve quality of meter reading with use of
  external agency
• To develop robust monitoring mechanism and
  penalty system in case of default

Medium Investment Interventions
2

• Handheld device for meter reading
• To digitalize meter reading information at the
  consumer premises
• To avoid coffee shop reading, in case of usage of
  RFID, Bar Code
• To generate, print and distribute bill all at the
  same time using printer attached with the
  handheld machine (Spot Billing)

High Investment Interventions
3

• Usage of AMR or MRI compatible meters
• To reduce possibility of error occurring due to
  human intervention
• To eliminate the chances of zero meter reading
• To monitor consumption pattern of high value
  consumers

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Interventions Metering Related Issues
(Illustrative)
Low Investment Interventions
1

• Bringing existing meters outside premises
• To reduce house lock cases
• To de-motivate consumers to tamper meter through
  easily visible techniques like magnet, shunt wire
  etc.

• Use of boxes to isolate meters
• To prevent consumers form direct meter tampering

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High Investment Interventions
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• Use of tamper proof metering technologies with
  tamper recording capabilities
• To reduce meter tampering related losses
• To record events of tampering and use them as
  proof of mischief

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• Usage of AMR based pole mounted group meters with
  display at consumer premises
• To prevent meter bypassing and tampering by
  placing the meter before the service line
• To make consumers accountable for poor quality of
  service lines

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Interventions Improving Collection Efficiency
Low Investment Interventions
Information on website bills, due dates
etc. Objective 24x7 availability of billing
information i.e. billed amount, previous payment,
due date etc. Decreased dependency on postal
system or other medium of bill distribution
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Medium Investment Interventions
Increase Drop-boxes or collaboration with
collection agencies/institutions Objectives To
increase avenues for consumers to pay their bill
and hence enable easy payment process To reduce
working capital requirement of the utility
2
Facilities like ECS, payment through credit card
and payment on internet Objectives To provide
broad range of payment mechanisms to the
consumers as per their convenience.
3
High Investment Interventions
Installation of ATP (Any Time bill Payment)
Objectives To provide more payment avenues,
open 24x7, to consumers To provide an avenue
where consumer gets receipt of the payment
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Andhra Pradesh- Case Study

• AP Distribution Companies were carrying out the
  energy audit for all Towns and industrial feeders
  at the circle office. This was done at the circle
  office by DE (operation) by capturing the energy
  input and sales from a single source i.e. the
  operation division.
• KPMG had proposed an independent feeder wise
  energy audit and also proposed a mechanism to
  monitor the losses and subsequent implementation
  of loss reduction measures.
• This method involves capturing the feeder wise
  energy input with MRI by operation staff,
  category wise sales (excl. agriculture sales) by
  revenue wing to avoid any manual intervention.

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The recommended Energy Audit Process
Energy Audit Team from Corporate Office follows
this method and reports to CMD
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Proforma to Capture the baseline information -
One time
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Proforma to capture feeder wise information for
continuous monitoring- Monthly
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Benefits to the Utility

• Streamlined energy audit process
• Dependable Energy Audit results
• Transparent monitoring mechanism
• Actions based on these trust worthy feeder loss
  numbers
• Significant improvement in losses post actions
  taken on individual feeders
• Sustainable loss reduction program

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Presenters contact detailsName Arindam
GhoshKPMG Advisory Services Pvt. Ltd.Phone
91-9903709000Email arindamghosh_at_kpmg.comwww.in
.kpmg.com