INFORMATION TECHNOLOGY IMPLEMENTATION IN INDIAN POWER DISTRIBUTION

COMPANY: BSES (BOMBAY SUB-URBAN ELECTRICITY SUPPLY COMPANY), DELHI

SUBMITTED TO Submitted By

Dhrubaji Mandal Professor - Mahadeo Jaiswal Information Management (MDI) Chairperson - Process Renovation Project

ACKNOWLEDGEMENT

The satisfaction, which accompanies the successful completion of the project, is incomplete without the

mention of a few names. We take this opportunity to acknowledge the efforts of all those who have been

a helping hand in completing this project.

We would like to express our heartfelt appreciation and gratitude to our project head Mr.PANKAJ

GANHOTRA, Assistant Manager IT BSES .This project is a result of his teaching, encouragement and

inputs in the numerous meetings he had with me, despite his busy schedule. He made sure that my stay in

the office was a learning experience.

I would also like to thank Prof. Shri Mahadeo Jaiswal. Professor, Information Management,

Chairperson - Process Renovation Projects at MDI for his constant support, continued encouragement

guidance and indescribable help throughout this project.

Nevertheless with all due regards and respect to the contributions made by various persons at each

stage of the project, we take this as an opportunity to thank all those who have been instrumental in

completion of project “Information Technology Implementation in Indian Power Distribution –BSES”.

Finally, we would like to thank Our Institute, Management Development Institute for making this

experience to work on this project. The learning from this experience has been immense and would be

cherished throughout our life.

PREFACE

This project is a scientific and systematic study of real issues on a problem with the Electric power

distribution system. Electric power utilities worldwide are increasingly adopting the computer aided

monitoring, control and management of electric power distribution system to provide better services to

electric consumers.

Therefore, research and development activities worldwide are being carried out to automate the electric

power distribution system utilizing recent advancement in the area of IT and data communication system.

At present, power utilities have realized the need for full scale distribution automation to achieve on-line

system information and remote control system. The main motivation for accepting the distribution

automation in developing countries such as India is to improve operating efficiency of distribution

system.

The main idea behind this project is to find business for IT implementation and automation in the field of

power distribution. The study can deal with small or big issues in any division of an organization. It can

be case study where a problem has been dealt with, through the process of management. The essential

equipment of a project is that, it should contain scientific collection of data, analysis and interpretation of

data leading to a valid conclusion.

Working on Project is an essential part in MIBA curriculum. It enables the student to share the real

experience in the corporate world. Our Project is Regarding the Information Technology Implementation

in Indian Power Distribution -BSES

We hope this study will contribute to the organization.

INDEX

Serial Number Content

1 RESEARCH METHODOLOGY

2 Introduction

3 AT&C (Aggregate Technical and Commercial) loss

4 AT&C (Aggregate Technical and Commercial) loss and Recovery

5 Need of IT and ERP Implementation IN BSES

6 Information Technology Roadmap

7 Challenges in implementing IT & ERP solutions

8 State of Information Technology in BSES

9 IT STRATEGY AND PLANS

10 INTEGRATED BILLING SYSTEM FOR LARGE C&I CUSTOMERS

11 Meter Reading System

a.Touch based AMR

b.Wireless Technologies

12 Other IT enabled Practices at BSES

13 ENTERPRISE RESOURCE PLANNING

14 System Analysis and Program Development (SAP –AG)

15 Objectives for ERP Implementation

16 Implementation Benefits of ERP

17 Conclusions and lessons learned

18 References

RESEARCH METHODOLOGY

The research work carried out for this project was more of descriptive in nature. Since this

project is a study project, hence in this project the major task was collection of data, and

analyzing this data and also studying impact of Information Technology in Distribution Sector.

Collecting Voice

Of customer

•Study & Analysis of IT Implementation of Discoms

•Search for Data Available •Visit to Discoms to Get Their

Real Working •Proper Sorting And

Alignment of Appropriate Data

•Study Of Present Structure

Understanding Of IT Implementation

•Comprehensive Analysis Of

Current Status

IT Implementation Issues In

Discoms

•Analysis Of Development &

Gap Analysis WAY FORWARD Operating Issues

•Analyses Areas of Weakness

•Analyses The Areas Of Strength And Improvement

•Suggest Improvement Areas And Perimeters

Introduction BSES Power Limited came into existence in the year 2002, with the task of providing reliable & quality

electricity supply to the consumers of South & West Delhi. Panning a geographical area of 950 sq. km, it

is the largest electrical licensee in the national capital, catering to over 3.20 million consumers.

For greater reach and easy serviceability, the company serves its customer base through four circles,

further subdivided into 19 divisions. Each of the Divisions is led by an empowered group of officials.

Since most of the venues for the 19th Commonwealth Games were in the licensed area of BSES Rajdhani

Power Limited (BRPL), the company along with BSES Yamuna Power Limited (BYPL) played its role

with great confidence in such demanding situation of power distribution

AT&C (Aggregate Technical and Commercial) loss

AT&C loss should be calculated by subtracting the energy realised from the energy input, where energy

realised should be equal to the product of energy billed and collection efficiency

High technical losses in the system are primarily due to inadequate system improvement, which has

resulted in unplanned extensions of the distribution lines, overloading of the system elements like

transformers and conductors, and lack of adequate reactive power support.

The commercial losses are mainly due to low metering efficiency, theft & pilferages. This may be

eliminated by improving metering efficiency, proper energy accounting & auditing and improved billing

& collection efficiency. Fixing of accountability of the personnel / feeder managers may help

considerably in reduction of AT&C loss.

AT&C (Aggregate Technical and Commercial) loss and Recovery

Due to lack of adequate System the losses in the system in 2002-03 were in the range of 63.16%

which has been now brought down to sub 19.8 levels in 2011

AT&C (Aggregate Technical and Commercial) loss and Recovery This achievement is unparalleled till date. This has been made possible by optimal planning of the network along with the state‐of‐the‐art technologies and use of best operational Practices by the trained, skillful and motivated manpower.

Need of IT and ERP Implementation IN BSES

For a very long time, the supply of power to Delhi was a government undertaking but after

decades of losses, in 2002, the state government decided to reduce its hold and unbundle what

was then called the Delhi Vidyut Board

BSES bid to take over the Board and about nine months later, Reliance Power bought over

BSES. That left Delhi’s power distribution in the hands of a public private partnership between

Reliance and the Delhi government.

After The Undertaking and after such losses of AT & C another problem biggest challenge was

to corporatize the creaking government enterprise as Ad-hoc business processes were the norm

and were shaped by the person currently in authority

Even after heavily subsidized power costs the utility failed to make any money because corrupt

employees—with dishonest consumers—tampered with power meters, the rampant power theft.

K.B. Singh, VP-I.T., BSES, introduced IT-driven measures to an ailing power utility Business

process improvements, Turning the Delhi-based BSES into a modern, profit-making utility and

creating a single-window business platform called the Customer Application System (CAS)

Information Technology Roadmap

It is essential to clarify that IT is not the panacea to all proble It rather plays the role of an enabler providing strategic support IT would enable sustainable changes in the Operations increasing controls at a transaction level, Improving the efficiency of the operations and increasing Transparency across the organization IT would enable the creation of reliable data at the grassroots level. This information would then flow to the managerial level for tactical decisions and further up to the strategic level..This would facilitate the change of culture towards information-based decisions sought by the reforms process.

Benefits of Information Flow across the Organization

Challenges in implementing IT & ERP solutions

Though it is not completely a technical job, a lot of planning and proper communication is very

much essential to implement IT & ERP across the organization some of which are

• It is very important, that implementation is done in stages. Trying to implement

everything at once will lead to lot of confusion and chaos.

• Appropriate training is very essential during and after the implementation. The staff

should be comfortable in using the application or else, it will backfire, with redundant

work and functional inefficiencies.

• Lack of proper analysis of requirements will lead to non-availability of certain essential

functionalities. This might affect the operations in the long run and reduce the

productivity and profitability.

• Lack of Support from Senior Management will lead to unnecessary frustrations in work

place. Also, it will cause delay in operations and ineffective decisions. So, it is essential

to ensure that the Senior Management supports the transformation.

• Compatibility Issues with ERP Modules lead to issues in integration of modules.

Companies associate different vendors to implement different ERP modules, based on

their competency. It is very essential that there is a way to handle compatibility issues

• Cost Overheads will result, if requirements are not properly discussed and decided during the

planning phase. So, before execution, a detailed plan with a complete breakdown of requirements

was to be worked out.

• Investment in Infrastructure is very essential. ERP applications modules will require good

processing speed and adequate storage. Not allocating suitable budget for infrastructure will

result in reduced application speed and other software issues. Hardware and Software Security is

also equally important.

• It was a transformational time On the technology front, he was creating a database of 17 lakh

consumers from scratch, which needed to be cleansed and modeled without halting

• However K.B. Singh, VP-IT at BSES, recalling the big business process improvements he and his

team drove in 2003

• As the project progressed, Accenture was roped in. Based on the data the team analyzed, they

found real instances of meter tampering, multiple meters being used on a single power line

• Cost Overheads will result, if requirements are not properly discussed and decided during

the planning phase. So, before execution, a detailed plan with a complete breakdown of

requirements should be worked out

State of Information Technology in BSES

Needed to revamp processes to create an efficient organization, build a roadmap that aligned business and

IT, orient a large and diverse work force to be more productive, centralize the control of all applications,

and improve customer care services. The mission was to achieve self-sufficiency by reducing losses

• After an exhaustive study of the existing state Singh crafted a broad roadmap for process improvements

• Much-needed, basic IT foundation was being laid

• BSES customers were segmented into four categories.

• Different teams were allotted to these segments and were tasked with collating and auditing the data

needed for BSES to gain visibility into its consumer base

• For this CAS app was being implemented and other business critical apps—on multiple platforms—

were being integrated on single client-server architecture

• While all business centers were connected to the core datacenter, various technical components to

ensure connectivity, the consistent flow of information, strengthened security, and data mining were put

in place. An Oracle database was deployed to support the CAS. This was further integrated with

A call center, payment counters and gateways

IT STRATEGY AND PLANS

A structured and comprehensive IT strategy and

plan will help the distribution utilities to derive the

benefits from information technology

• Application architecture

• Data architecture

• Infrastructure requirements – hardware and

network

• IT organization, processes, policies and standards

• List of business–IT initiatives or projects and

implementation plan for the applications to be used

by the organization over a period of time

• Investment requirements and their Phasing

The IT applications have been divided into the following four categories:

• Prerequisites – To be established first to allow implementation of subsequent IT applications

• Short-term – Quick wins

• Medium-term – High return

• Advanced applications

Advanced applications

The advanced applications can be built only after establishing a strong foundation in the preceding phases

E-business solutions such as customer self-service and e-procurement require the CIS, SCM (Supply

Chain Management), etc.

INTEGRATED BILLING SYSTEM FOR LARGE C&I CUSTOMERS

The objective is to integrate meter reading, billing, payment and collection for (commercial and

industrial) C&I customers to eliminate scope for tampering and manipulation and thus improve collection

Old Billing System – Before Integration

INTEGRATED BILLING SYSTEM

After Integration meter reading, billing, payment and collection for (commercial and industrial) customers

who contribute approx. 70 %, increased dramatically

After the meter is connected/energized a K. No. is allotted based on the location and a nearby consumer

number? This determines a consumer’s Cycle Number and Book Number. Based on Cycle Number,

readings are taken by BSES Meter

Reader every month or bimonthly. After readings are taken and verified, the data is sent to company’s

Computer Division for generation of the bill. The divisional office then distributes the printed bills

through Bill Distributor.

Meter Reading System

1. Touch based AMR

2. Wireless Technologies

-GSM Technology

-CDMA Technology

Touch Based AMR

With touch based AMR, a meter reader carries a handheld computer or data collection device

The device automatically collects the readings from a meter by touching or placing it near meter

When a button is pressed, the probe sends an interrogate signal to the touch module to collect the meter

reading The software in the device matches the serial number to one in the route database, and saves the

meter reading for later download to a billing or data collection computer

Since the meter reader still has to go to the site of the meter, this is sometimes referred to as "on-site"

AMR

Wireless Technologies for Meter Reading

The wireless meter reading technologies are generally based on radio frequencies. The readings can be

monitored on real time basis. Popular technologies in this category includes GSM / GPRS based and

CDMA based technologies.

1. GSM Based Technology

2. CDMA Based Technology

GSM and CDMA Based Technology

GSM : Global System of Mobile Communication

CDMA : Code Division Multiple access

With Wireless based Automatic meter reading

technology ,

Automatically collected data from energy meter are

transferred to a central database for billing and / or

analyzing.

The Transmitter circuit is connected to the meter

which counts the Pulses from it and displays it over

the LCD (Liquid crystal display) display.

Collection System

BSES for timely collection has made life Easy of Consumer by help of IT, providing different facilities

Now at BSES they have a number of collection systems available for the ease of consumers

1. Direct Payment through Web, (Net Banking)

2. Check by Post

Even Bill and Payment details are available through SMS. All you have to do is:

Type BSES <SPACE> BILL <SPACE> CRN Number and SMS to 5-54-54-64

Other IT enabled Practices at BSES

No Supply Complaint Registration through

SMS Retrieval of Billing/Payment details

through SMS

Complaint Registration on IVRS

(Interactive Voice Response System)

through auto recognition of telephone

number

Auto call routing from the IVRS to the

Customer service representative in case

CRN (Customer Reference Number)/CA

number is not punched by the customer

Priority Queue on the IVRS for Fire/Shock

related calls Estimated wait time and Queue

Number announcement on IVRS Auto

recognition of VIP customers on IVRS &

priority service to VIP customers

ENTERPRISE RESOURCE PLANNING

Enterprise resource planning (ERP) systems integrate

internal and external management information across an

entire organization, embracing finance/accounting,

manufacturing, sales and service, customer relationship

management, etc.

ERP systems automate this activity with an integrated

software application. The purpose of ERP is to facilitate

the flow of information between all

business functions inside the boundaries of the

organization and manage the connections to outside

stakeholders.ERP systems can run on a variety of

computer hardware and network configurations, typically

employing a database as a repository for information

The transformation of ERP into a cloud-based model has

been going on but Is relatively slow

System Analysis and Program Development (SAP –AG) Global Leaders in providing ERP solutions are SAP AG,

Oracle & Microsoft. All the utilities we surveyed were

utilizing SAP AG solutions in their businesses

SAP AG is a German multinational software corporation

that makes enterprise software to manage business

operations and customer relations

SAP is the leader in the market of enterprise applications

in terms of software and software-related service The

company's best-known software products are its

enterprise resource planning application systems and

management

Objectives for ERP Implementation

The prime Objective of the Distribution Company

(DISCOM) for adopting ERP solutions were

• Process Improvement • Efficiency improvement • Cost Reduction and better Customer Services. • Centralization • Data Security

Implementation Benefits of ERP

Complete meter records and data are now maintained centrally in SAP

• Automatic calculation of charges, Interest, Taxes & posting to Finance General Ledger • Scope of manual error and inconsistent data processing decreased through system validations • Maintenance notification provides the details like complaints created, complaints resolved, and duration Of breakdown etc. • Task list and Maintenance plan helps to create preventive maintenance schedule and that can be Monitored online • Cases of wrong calculations of bill payments in legacy system have been detected by ERP system Thereby causing significant economic benefits • Since 2002 over 1.7 lakh cases of power theft booked • Over 10.51 lakh KW of power theft load unearthed • Brings enhanced transparency in the process flow • The automatic payment process leads to predefined system driven approach • Availability of desired information to top management in time

Conclusions and lessons learned Electric power distribution system is an important part of electrical power systems in delivery of electricity to consumers. Electric power utilities worldwide are increasingly adopting the computer aided monitoring, control and management of electric power distribution system to provide better services to their consumers. Therefore, research and development activities worldwide are being carried out to automate the electric power distribution system utilizing recent advancement in the area of IT (Information Technology) and data communication & control system It has been observed by the IT Task Force that the approach of the various distribution utilities towards IT has been piecemeal with standalone applications deployed for a limited operational requirement. In other words, IT has been used as a tool to address a specific issue or two at a time and not as a long-term, holistic strategy. While Indian IT sector has helped numerous organizations around the globe derive substantial benefits from application of IT, there is plenty of room for IT application within the power sector in India. There is a need to look at the global practices in IT adoption in the power sector so that India can benefit from it. The IT task force is of the view that the gap in IT adoption globally and in the Indian power sector is apparent and glaring and even the rate of overall technology adoption in India is on the lower side. Globally IT is being used to enable operations at a transaction level thus providing advantages like in-built process controls, workflow enabled transactions, single point of data capture and support for timely strategic decision making. On the other hand, in India, the core operations are still manual and therefore face issues like ad-hoc decision making, poor data quality, long decision making cycles and underutilization of IT investments. In order to reap the benefits of IT, the wide gap between India and global best has to be bridged. References:

1. www.bsesdelhi.com/ 2. indianpowersector.com/home/2011/06/it-in-power-sector/‎

3. The Hindu News Paper

4. BSES Employee