Ndpl

5 years of Sustained Efforts Towards Business Excellence FICCI 25 July, 2007 Sunil Wadhwa Chief Executive Officer NDPL

NDPL Consulting North Delhi Power Limited

Structure of Presentation

• NDPL profile • Initiatives towards consumer affection ¾ Network Reliability Improvement ¾ Reduction in AT&C Losses ¾ Consumer care initiatives

• Team NDPL – Change Management Initiatives

5 years of Sustained Efforts towards Business Excellence

Geographic Description

Joint Venture of TATA Group with Delhi Govt. NDPL 51:49% BSES Yamuna BSES Rajdhani

MES

NDMC

5 years of Sustained Efforts towards Business Excellence

NDPL Profile Turnover (FY 2006-07)

Rs. 2052 Cr (enhanced from Rs 1100 in FY 03)

Peak Load

1055 MW

Annual energy requirement (FY 2006-07)

5950 Mn. Units

Total registered consumers (0.743 Mn on T/o)

0.91 Mn. (Actual estimated 1 Mn.)

Number of employees

3700 (5600 in July 2002)

Area

510 Sq Kms

Population serviced in Network area (approx)

4.5 Mn.

Per Capita Consumption (Units)

1245 (National Average of 500, Mumbai – close to 850)

Number of consumers per Sq.Km

1784 (Only Registered)

Employees per Mn. Unit input

0.62

Load / Energy Growth

07% / 05%

5 years of Sustained Efforts towards Business Excellence

Strategic Roadmap – pillars for 2002-07 Strategy for 2002-07 AT&C Losses <25%

>50%

Consumer service & IT Interface to be comparable with world standards

1,00,000 backlog complaints

System Reliability to be comparable with best utilities in India.

No planned exp. on infrastructure improvement past 3yrs

Performance Orientation through Change Management

5400 erstwhile DVB staff with Unfavorable working conditions

What NDPL had inherited AT&C Losses >50%

No concept of consumer service & IT Interface

Electricity Supply system on the verge of collapse

5 years of Sustained Efforts towards Business Excellence

Lack of Performance Orientation

Structure of Presentation

• NDPL profile • Initiatives towards consumer affection ¾ Network Reliability Improvement ¾ Reduction in AT&C Losses ¾ Consumer care initiatives

• Team NDPL – Change Management Initiatives

5 years of Sustained Efforts towards Business Excellence

Initial Challenges in July 2002 – Power Supply • NDPL inherited an old dilapidated Network, which was characterized by the following attributes:

¾ Transformers’ failure w.r.t. installed capacity was as high as 11%

ƒ Reduced to insignificant level of 0.76% at present ¾ 48% Streetlights Functional ƒIncreased to 99%

5 years of Sustained Efforts towards Business Excellence

Power Supply Improvement - Initiatives • Interventions undertaken as a comprehensive integrated plan of: ¾

Run-Repair-Replace Options – CAPEX Plan prepared till FY08

¾

Roadmap for Network Reliability & N-1 Redundancy (66 & 33 kV Network is on N-1) Automation & IT Roadmap (formulated in association with M/s KEMA, USA)

¾

Revamped Substations

5 years of Sustained Efforts towards Business Excellence

Breakthrough Initiatives • Unmanned Automated 66 kV, 33 kV Grid Stations. • State of the art SCADA center • High Voltage Distribution system. • Arc-proof Package Units at 11kV Network • Remote operated GSM based Street Lighting switches. • 24x7 Operational Stores, material delivery at site.

NDPL’ NDPL’s SCADA Center

5 years of Sustained Efforts towards Business Excellence

Delhi’ Delhi’s first unmanned grid

Delhi’ Delhi’s first packaged station

Network Augmentation Particulars

Transformation Capacity

Level

Unit

On takeover Jul 2002

2007

% Change

66 kV

MVA

860

1450

69

33 kV

MVA

791

1500

90

11 kV

MVA

1703

2837

67

MVA

3354

5787

73

66 kV

km

176

274

40

33 kV

km

156

291

87

11 kV

km

2245

3232

44

km

2578

3771

46

Total Transmission Lines

Total

Capital works of over Rs 1350 Crores commissioned in just 5 years

NDPL has met highest ever demand of 1055 MW this Summer!! 5 years of Sustained Efforts towards Business Excellence

GIS – Salient Features • Complete Geography mapped. • Accurate Land base to the extent of 1 meter accuracy • Network at all voltage level mapped • Grid and Substation Internal Equipment Mapped • More than 0.8 Mn Consumers mapped 5 years of Sustained Efforts towards Business Excellence

GIS-Application & Usage • Technical Feasibility & all new and augmentation Scheme Preparation • Fault Management • Premises location for Revenue Recovery • Map for Right of Way Approval • Project Monitoring • Other commercial applications- New connections, metering, dues checking etc NDPL has won the “PC Quest Best Information Technology Implementation Award 2007” under the category of “Most Challenging Project” for Successful Implementation of GIS 5 years of Sustained Efforts towards Business Excellence

Results – Transformer failure rate 12% 10%

11%

8%

6.43%

6%

5.04%

4%

3.52%

2%

0.89%

0% Takeover

2002-03

2003-04

2004-05

2005-06

Transformer failure rate reduced to insignificant levels

5 years of Sustained Efforts towards Business Excellence

0.76% 2006-07

Reaching out to consumers.. Call Received at Call Centre

SMS Sent to concerned crew

K.R. Kalra 32B Rohini No Current 15mins

Complaint attended & Call Centre informed

Consumer informed & Call closed

SMS based Fault Management System significantly improved the fault Restoration time

Advance Intimation to consumers -

load shedding schedule in event of Grid Shortages

5 years of Sustained Efforts towards Business Excellence

Dilapidated Condition of Poles

Revamped –Project Last Mile

5 years of Sustained Efforts towards Business Excellence

Structure of Presentation

• NDPL profile • Initiatives towards consumer affection ¾ Network Reliability Improvement ¾ Reduction in AT&C Losses ¾ Consumer care initiatives

• Team NDPL – Change Management Initiatives

5 years of Sustained Efforts towards Business Excellence

Comparison of AT&C Target & Actual VICTORY CURVE

55 Percentage AT&C Losses

53

50 45

47.79

AT&C Loss Trend PrePrivatisation

44.86

AT&C Loss Trend Pre-privatisation

40

40.85 35.35

35

33.79

31.1

30 26.52 23.7

25 20 Pre

Pre

Opening FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07

Year Target Loss Level Bid Loss Levels

Actual Loss Level

5 years of Sustained Efforts towards Business Excellence

Comparison of Tariff Envisaged & Actual Tariff % Cumulative Increase in Tariff 50%

% C u m u lative In crease

45% 39%

40%

43%

33%

35% 30% 25%

21%

20% 15%

18.00%

10%

14.00%

10% 5% 0%

18.00%

5% 0%

2002-03

2003-04

2004-05

2005-06

2006-07

FY % Cumulative Increase in Tariff envisaged

% Cumulative Increase in Actual Tariff

5 years of Sustained Efforts towards Business Excellence

Saving to Government Power Sector Reforms Through Privatisation Transitional Support Vs Continuing With Financial Loss 67%

Scenario I: Losses growing at same trend as in pre-privatisation Scenario II: Losses maintained at the same level as of privatisation. Scenario III: Losses lowered post privatisation.

Scenario I

62% Scenario II

AT&C Loss (%)

57%

53.40%

Rs. 400 Cr

52%

Rs. 550 Cr 51.09%

Rs. 600 Cr

Rs. 570 Cr

Rs. 625 Cr

Scenario II Cumulative Saving Rs. 2745 Cr

Rs.170 Cr. Rs.93 Cr.

47%

44.84% Rs.354 Cr.

42% Rs.549 Cr. 37% Rs.307 Cr

Rs. 380 Cr

Rs. 116 Cr

33.79%

Rs.625 Cr.

32% Pre-privatisation 27% losses burgeoning 22%

Apr 01

Post-privatisation: Low ering Losses leading to reduced subsidy Jul 02

Mar 03

26.52%

Rs. 51 Cr Scenario III Mar 04

Mar 05

Mar 06

23.7% Mar 07

In 2002, Power Theft was about Rs 4 crores per day in NDPL area- Now it is at 1.6 Cr./day Increase in NDPL paying capacity reduced Transcos dependence on Govt. to NIL Domestic Tariff continues to be same since July 2004 5 years of Sustained Efforts towards Business Excellence

AT&C Losses – Initial Challenges • Deficiencies/Inadequacies in Metering systems/Technology – major cause of Revenue leakages • Erroneous consumer database – discrepancies resulting in non delivery of Bills/disconnection notices etc. • Collection inefficiencies – absence of consumer friendly payment avenues • Organized Theft of Power – ineffective process to deal with defaulters Worsening the situation was the fact that the processes were prone to manipulation and hence resulted in unethical practices 5 years of Sustained Efforts towards Business Excellence

Metering Systems – plugging the Revenue leakages • Meter Repository System - each Meter is issued against a specific K No. based on a random selection through a customized application. ¾ this eliminates the probability of misuse &

installation at misdirected place – institutional check on manipulation.

• 60% of the Revenue gets generated through Automated Meter Reading (all high end consumers > 15

MRS Screen shot

kW)

• Pre paid Metering – enables consumers to track and monitor their consumption.

Prepaid meter

5 years of Sustained Efforts towards Business Excellence

GSM Modem with meter

Power Theft Control – Initiatives •

Electrification on HVDS and LT ABC network – To prevent tapping in theft prone areas and reduce technical losses

•

New Connection Camps in slums

•

DT wise Energy Accounting for calculation of Transformer wise AT&C Losses

HVDS at Basaidarpur

Removal of Hookings & New Connection camps for slum dwellers

5 years of Sustained Efforts towards Business Excellence

Structure of Presentation

• NDPL profile • Initiatives towards consumer affection ¾ Network Reliability Improvement ¾ Reduction in AT&C Losses ¾ Consumer care initiatives

• Team NDPL – Change Management Initiatives

5 years of Sustained Efforts towards Business Excellence

Business Process Reengineering Consumers

CCG Call Center

CMG

Customer care Center

MMG

Website

MRG

letters

E ail

RBG

RCG

RRG

Drop boxes

RDG

RAG Policy Regulatory Advocacy Compliance

Bench Marking

Data Revenue Analysis Protection

Infrastructure Support

User& System Administration

SAMBANDH – Integrated Commercial Package software- Industry First!! 5 years of Sustained Efforts towards Business Excellence

Consumer Feedback - IMRB Quarterly Survey

70.25

75.00

75.50

76.50

HRB

KCG

Xpresss

63.00

NDPL

HCB

Consumer Feedback is Key to our Improvement Initiatives 5 years of Sustained Efforts towards Business Excellence

New Connections - Home Delivery •

Field Service Executive (FSE) visits the consumers’ premises and completes all formalities for new connections.

New Connection at Door step

• Meter Installation through VAN Model – initiative towards enhanced output, each Van installs about 7-8 meters per day. Meter Installation Van Initiatives towards expediting energization period of new connections 5 years of Sustained Efforts towards Business Excellence

Average Energization period of New connections 70 60

days

50

58.3 51.8 41.68 36.5

40

33.9 26.4

30 20

14.8 9.5

10

13.9 9

0 2002-03

2003-04

2004-05

from date of application

2005-06

2006-07

from date of payment

Attribute changes done within 48 hours

5 years of Sustained Efforts towards Business Excellence

IT Enablement – ushering in an era of transparency

• SUGAM – Billing database of 100% of consumers on website – first time in India, institutionalized transparency from the very beginning. SUGAM enables consumers to: View Bill ƒ View Consumption Graph ƒ Print Duplicate Bill. ƒ

Screen shot from SUGAM

5 years of Sustained Efforts towards Business Excellence

Payment Avenues – Consumer convenience • Payment avenues increased from 20 at the time of takeover to 1100+ now. • State of the art Collection centers instituted with all civic amenities.

• Consumer comfort redefined with Automatic Cash/Cheque Collection machines • Payment of Energy Bills through website also – by credit cards – website certified as secure by ‘Verisign’.

5 years of Sustained Efforts towards Business Excellence

Consumer Relationship - Segment wise approaches Structured Approach to Consumer Relationship – CROs, Client A/c Managers, Eminent Citizens, RWA & IWA Interactions

RWA meetings in progress

Public Hearing Forums- Concerns addressed at Door step of Consumer ‘Meet the Public Representative ‘ scheme launched

5 years of Sustained Efforts towards Business Excellence

Structure of Presentation

• NDPL profile • Initiatives towards consumer affection ¾ Network Reliability Improvement ¾ Reduction in AT&C Losses ¾ Consumer care initiatives

• Team NDPL – Change Management Initiatives

5 years of Sustained Efforts towards Business Excellence

Initial Challenges in July 2002 - (Admin. & HR)

Inherited a huge workforce of 5638 employees – apprehensive with regard to their future in the changed scenario. Training – privy to only the privileged few – seen as paid vacations. No effective Corporate Structure – No clear Roles & Responsibilities with reference to JDs & KRAs. Employee grievances – took long to resolve Poor Working Conditions and unhygienic Building environment The foremost priority was to earn the Right to Govern by developing a sense of assurance in their combined ability.

5 years of Sustained Efforts towards Business Excellence

Organization Structure & Manpower

• Organization Structure with clear Manpower Planning for each department • Induction of New Talent – ETs & MTs as catalysts for the Change Management.

Corporate set up in place – focus on Roles & Responsibilities through specific JDs & KRAs of individuals 5 years of Sustained Efforts towards Business Excellence

Employee Competency Development • Training Need Identification through the

Performance Appraisal system itself.

• Institution of CENPEID – in association with

USAID to cater to the training needs of its own and other SEB’s employees.

• Training Policy formulated – 6 days for

executives and 2 days for non executives.

• Initiation of CFT approach – for

handling critical concerns cutting across departments.

5 years of Sustained Efforts towards Business Excellence

Employee Communication • Joint Interaction Forums constituted for effective two way communication. • LGIE in association with ACCORD – participation across all levels of employees. • Introduced Town Hall Meetings – unstructured reviews aimed at two way communication. • SURKHIYAN – monthly news bulletin for employees. • SARTHI – forum for resolution of Grievances instituted. Policies on Ethics, Harassment & standardization of Employee rules

5 years of Sustained Efforts towards Business Excellence

Corporate Social Responsibility

5 years of Sustained Efforts towards Business Excellence

Corporate Social Responsibility - Energy Clubs

Energy Conservation Camps implemented in schools with 15000 children participation

Urja Melas are regularly organized where competitions are held between participating schools. Energy Club is now a nation wide phenomenon as NDPL has partnered with CII to replicate the success of this model in neighboring states also. 5 years of Sustained Efforts towards Business Excellence

Corporate Social Responsibility - Glimpses of few initiatives

SoS, an NGO has adopted Bawana as one of the 131 villages across India, in association with NDPL.

Organization of free Health camps for Industrial workers in NDPL areas such as Bawana, Narela, Wazirpur etc.

Active support to MSSI patients in NDPL area NDPL is a signatory to the UN’s Global Compact Charter covering Corruption, Human Rights, Environment & Labor Standards 5 years of Sustained Efforts towards Business Excellence

Corporate Social Responsibility - Glimpses of few initiatives

• Blood Donation Camps: Regular Blood Donation camps organized in association with Red Cross Society.

NDPL PROJECT MEGAWATT SMILE

Initiative towards improvement of quality of life of Slum dwellers in N-NW Delhi 5 years of Sustained Efforts towards Business Excellence

Awards & Recognitions.. to name a few • NDPL has been conferred with the National Award for Meritorious Performance for two consecutive years 2004-2005 & 2005-2006.

Hon’ble PM presenting the award

• NDPL created history by being the first TATA Group organization to have surpassed the 500 barrier in Tata Business Excellence Model (TBEM), scoring 516 in its very first attempt itself.

Mr Ratan Tata presenting the award

5 years of Sustained Efforts towards Business Excellence

Awards & Recognitions.. to name a few AWARD FOR BEST BILLING SYSTEM

Public Lok Adalat Award for the 10000 settlements in 2 ½ years

Intelligent Enterprise Award For IT initiatives

Transparency in Billing System

Award for Corporate Social Responsibility

5 years of Sustained Efforts towards Business Excellence

YOUNG NDPL … Mature achievements Settlements through DLSA

Achiever’s Award for Record Settlements (10,000 cases) in Two & half years –Award instituted by DLSA “When we studied the DLSA website, it is indeed reassuring to know the successful settlement of more than 10,000 cases pertaining to North Delhi Power Ltd, in the period Oct 2003 to July 2006, at the aegis of DLSA, prelitigation stage” Dr A.P.J Abdul Kalam, 10th November 2006 5 years of Sustained Efforts towards Business Excellence

Leveraging our Knowledge base.. • NDPL has undertaken the following Prestigious consultancy projects: ¾

Setting up of a Call Center for Paschimanchal Vidyut Vitaran Nigam Ltd (PVVNL), Noida in association with M/s CMC Ltd.

¾

Restructuring of Transmission & Distribution sector of Mauritius in association with M/s TCS Ltd.

¾

Capacity building program in Nigeria for effective management of a distribution company.

• NDPL is in the process of taking up consultancy projects in leading utilities based on the following core areas: ¾ ¾ ¾ ¾

Network & Reliability Improvement AT&C Loss Mitigation Energy Audit & Accounting Consumer care initiatives 5 years of Sustained Efforts towards Business Excellence

Thank You

5 years of Sustained Efforts towards Business Excellence