November 2010 Presentation on Standard of Performance So

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November 2010 Presentation on Standard of Performance (So. P) Regulations for Distribution Licensees By

November 2010 Presentation on Standard of Performance (So. P) Regulations for Distribution Licensees By Palaniappan M. , Director, ABPS Infrastructure Advisory Private Limited 24 -Nov-20 Page 1

Contents 1. About ABPS Infra 2. Related Provisions of Electricity Act, 2003. 3. Salient

Contents 1. About ABPS Infra 2. Related Provisions of Electricity Act, 2003. 3. Salient features of Draft MERC (Standard of Performance of Distribution Licensees, Period of Giving Supply and Determination of Compensation) Regulations, 2010. 4. Comparison of Standards of Performance specified by different SERCs. 24 -Nov-20 Page 2

An introduction to ABPS Infra § Set up in Sep 2005 as start-up Consulting

An introduction to ABPS Infra § Set up in Sep 2005 as start-up Consulting Organisation by professionals, having wide range of experience (~ 40 Man-years) in the energy sector. § Promoted by Ajit Pandit, Balawant Joshi, Palaniappan M & Suresh Gehani. § Experience spans commercial, financial, regulatory and technical spheres of the energy sector. Govt – MOP / MNRE Experience spans across spectrum covering all stake-holders Developers FI / Banks SEBs / Utilities / Private Utilities Regulatory Commissions 24 -Nov-20 Page 3

We work in entire value chain of electricity sector Coal / FO/HFO/LSHS / Natural

We work in entire value chain of electricity sector Coal / FO/HFO/LSHS / Natural Gas / LNG Renewable Energy Wind / Biomass / Small Hydel / Co-gen / Solar Distribution Tariffs / Reforms / T&D losses / Market Develop. Transmission Open Access / Capacity / Planning - CTU / STU / JV Generation Thermal / Hydel / Nuclear - State / Central / Private s In As dust so ry cia tio n Ba FI nks s & & velo In pe ve rs sto rs De ate St & Go (C vt. en tra l Ut (S ilitie tat s e& Pv t) Re Co gula mm to iss ry ion s ) Fuel 24 -Nov-20 Page 4

Contents 1. About ABPS Infra 2. Related Provisions of Electricity Act, 2003 3. Salient

Contents 1. About ABPS Infra 2. Related Provisions of Electricity Act, 2003 3. Salient features of Draft MERC (Standard of Performance of Distribution Licensees, Period of Giving Supply and Determination of Compensation) Regulations, 2010. 4. Comparison of Standards of Performance specified by different SERCs. 24 -Nov-20 Page 5

Related Provisions of EA, 2003. . . 1/2 § Section-57 of EA 2003 states

Related Provisions of EA, 2003. . . 1/2 § Section-57 of EA 2003 states as under “(1)The Appropriate Commission may, after consultation with the licensees and persons likely to be affected, specify standards of performance of a licensee or a class of licensees. ” (2) If a licensee fails to meet the standards specified under sub-section (1), without prejudice to any penalty which may be imposed or prosecution be initiated, he shall be liable to pay such compensation to the person affected as may be determined by the Appropriate Commission: …” § Section-58 of EA 2003 states as under “ The appropriate Commission may specify different standards under subsection (1) of section 57 for a class or classes of licensee. ” - 24 -Nov-20 Page 6

Related sections of EA 2003. . . 2/2 § Section-59 of EA 2003 states

Related sections of EA 2003. . . 2/2 § Section-59 of EA 2003 states as under “(1)Every licensee shall, within the period specified by the Appropriate Commission, furnish to the Commission the following information, namely: a) The level of performance achieved under sub-section (1) of the section 57; b) The number of cases in which compensation was made under sub-section (2) of section 57 and the aggregate amount of the compensation. (2) The Appropriate Commission shall at least once in every year arrange for the publication, in such form and manner as it considers appropriate, of such of the information furnished to it under sub-section (1). “ § Section-86 (1) (i) of EA 2003 states as under “ (1) The State Commission shall discharge following functions namely: … (i) specify or enforce standards with respect to quality, continuity and reliability of service by licensees; ” 24 -Nov-20 Page 7

Contents 1. About ABPS Infra 2. Related Provisions of Electricity Act, 2003 3. Salient

Contents 1. About ABPS Infra 2. Related Provisions of Electricity Act, 2003 3. Salient features of Draft MERC (Standard of Performance of Distribution Licensees, Period of Giving Supply and Determination of Compensation) Regulations, 2010. 4. Comparison of Standards of Performance specified by different SERCs. 24 -Nov-20 Page 8

Salient Features- Introduction. . . 1/2 • • Performance Standards specified by the Commission

Salient Features- Introduction. . . 1/2 • • Performance Standards specified by the Commission act as guidelines for efficient, reliable, coordinated and economical system of electricity distribution by the Distribution Licensee, so that consumer’s installations can function properly. The Standards specified are the Guaranteed Standards of Performance, being the minimum standards of service that a Licensee shall achieve. Any failure by the Distribution Licensee to maintain the guaranteed standards of performance specified in So. P Regulations shall render the Distribution Licensee liable to pay compensation to an affected person claiming such compensation. MERC has also specified the Overall Standards of Performance, which the Distribution Licensee should seek to achieve during discharge of his obligation. The compensation paid by the Distribution Licensee for respective parameter, may be allowed to be recovered partly or fully in the Aggregate Revenue Requirement (ARR) of Licensee, keeping in view the extent to which the licensee is able to achieve the Overall Standards of Performance. 24 -Nov-20 Page 9

Salient Features- Introduction. . . 2/2 The objective of Standard of Performance Regulations are:

Salient Features- Introduction. . . 2/2 The objective of Standard of Performance Regulations are: • • • To lay down the Performance Standards for Distribution Licensees. To specify the maximum time limits to be adhered by the Distribution Licensee for performing the activities specified in So. P Regulations. To specify the amount of compensation payable by the Distribution Licensee to consumers in the event of a default. To specify the procedures to be followed by the Distribution Licensee for handling consumer complaints. To specify the Reliability Indices and their computation methodology to measure performance of Distribution Licensee. To specify data/information requirements of the Commission to be submitted by the Distribution Licensee periodically in standardized formats. 24 -Nov-20 Page 10

New Connection (Procedure) Application by the owner or occupier of any premises for supply

New Connection (Procedure) Application by the owner or occupier of any premises for supply of electricity to the Distribution Licensee Inspection of the premises related to an application for supply of electricity by the Distribution Licensee as per the time limit specified in Regulations Intimation of charges to be borne by the applicant for supply of electricity by the Distribution Licensee as per the time limit specified in Regulations Supply of electricity to such premises of applicant by Distribution Licensee as per the time limit specified in Regulations 24 -Nov-20 Page 11

New Connection… 1/2 • The Distribution Licensee shall provide new connection to any consumer

New Connection… 1/2 • The Distribution Licensee shall provide new connection to any consumer upon receipt of a complete application, as per MERC (Electricity Supply Code and Other Conditions of Supply) Regulations, 2005. • Distribution Licensee shall complete the inspection of the premises related to an application for supply of electricity not later than seven (7) days from the date of submission of application for new connection in case of Urban areas and within ten (10) days in case of Rural areas. • Intimation of charges to be borne by the applicant by the Distribution Licensee: In Case: Time Limit from the date of receipt of application Supply is to be given from existing network 15 days for Urban areas and 20 days for Rural areas Supply is to be given by extension or augmentation of distributing main or commissioning of a new sub-station 30 days The applicant seeks dedicated distribution facilities to his premises 30 days 24 -Nov-20 Page 12

New Connection… 2/2 The Distribution Licensee shall provide electricity supply to the applicant: In

New Connection… 2/2 The Distribution Licensee shall provide electricity supply to the applicant: In Case: Time Limit after receipt of application and payment of charges Supply is to be given from existing network 1 Month Supply is to be given by extension or augmentation of distributing main 3 Months Supply is to be given by commissioning of new sub-station 1 Year 24 -Nov-20 Page 13

Temporary Connection… 1/2 • The Distribution Licensee shall provide temporary supply of electricity upon

Temporary Connection… 1/2 • The Distribution Licensee shall provide temporary supply of electricity upon application within the time limit, given below: Up to 10 KVA 5 days Up to 25 KVA 10 days Up to 50 KVA 20 days Over 50 KVA 30 days • Distribution Licensee shall release supply subject to the condition that distribution system exists for supply to the premises, the connection meets safety requirements and is technically feasible. 24 -Nov-20 Page 14

Temporary Connection… 2/2 • However, no connection up to 10 KW shall be rejected

Temporary Connection… 2/2 • However, no connection up to 10 KW shall be rejected on technical ground. • If there are dues on the premises of the applicant , temporary connection can be refused by the Distribution Licensee till the dues are paid by the applicant. • Distribution Licensee shall repay / refund balance deposit, if any, within one month by adjusting dues from the date of dismantling temporary supply. • Temporary connection shall be granted for a maximum period of one year at a time, which can be further extended depending upon the requirements. • The grant of temporary connection does not give right to the applicant for claiming permanent connection. 24 -Nov-20 Page 15

Shifting of Meters/Service Lines, Reduction in Load § § Wherever the consumer’s requests for

Shifting of Meters/Service Lines, Reduction in Load § § Wherever the consumer’s requests for shifting the service connection in the existing premises or for the deviation for the existing lines at their own cost, licensee shall inspect and inform the estimated cost to the consumer within the following time period: Type of location Time limit (On receipt of application) Urban Areas 7 days Rural Areas 10 days The Distribution Licensee shall give effect of reduction in load of the consumer upon receipt of an application within second billing cycle. However, the consumer should have completed compulsory period for availing of supply as per existing agreement and provisions of Supply Code and should have executed fresh agreement for revised load. 24 -Nov-20 Page 16

Reconnection of supply § • If the Distribution Licensee has disconnected supply to a

Reconnection of supply § • If the Distribution Licensee has disconnected supply to a consumer for a period of not more than six months, it shall restore power supply to the consumer, if such consumer pays all amounts due and payable by him to the satisfaction of the Distribution Licensee or in case of a dispute, pays such amounts under protest. The time limits are: Type of Location Prescribed Time Limit Urban Areas 24 Hours Rural Areas 48 Hours If the period of disconnection exceeds six months, an application for reconnection of supply shall be treated as a fresh application for supply of electricity under the provisions of the Act, after either payment of amounts due or upon settlement of dispute. 24 -Nov-20 Page 17

Transfer of ownership and change of category • Distribution Licensee shall give effect to

Transfer of ownership and change of category • Distribution Licensee shall give effect to transfer of ownership and change of category upon receipt of an application within the following time lines: Transfer of ownership Within second billing cycle on receipt of application and payment of necessary charges Change of category Within second billing cycle on receipt of application Conversion from single phase to three phase and vice-versa for Low Tension Within second billing cycle on receipt of application and payment of necessary charges Conversion from Low tension to High tension & vice-versa. Within third billing cycle on receipt of application and payment of necessary charges • Distribution Licensee shall examine the technical feasibility upon receipt of such application and inform the consumer the feasibility within seven days of receipt of application. 24 -Nov-20 Page 18

Quality of Supply • The Distribution Licensee shall keep the voltage at the point

Quality of Supply • The Distribution Licensee shall keep the voltage at the point of supply to vary from the declared voltage, as per the table below: Voltage Level Prescribed Range Low or Medium Voltage + 10 % to – 10 % High Voltage + 6 % to – 9 % Extra High Voltage + 10 % to – 12. 5 % • The voltage of neutral shall not exceed 2% of phase voltage value and the imbalance in voltage of phases shall not be more than 3%. • The Distribution licensee shall control the power factor of system of supply at level above 0. 90. • The Distribution Licensee shall control the harmonics level at the point of supply in accordance with that prescribed by the IEEE STD 519 -1992. • The Distribution Licensee shall give supply of energy on the following systems: Voltage Level Specifications Low Voltage Two wires Direct current or Alternating current, single phase, 50 cycles Medium Voltage Three or Four wires, Alternating current, three phases, 50 cycles High Voltage Alternating current, three phases, 50 cycles 24 -Nov-20 Page 19

Classification of Installations AC System Installations Specifications Two wires, Single phase 240 Volts, Maximum

Classification of Installations AC System Installations Specifications Two wires, Single phase 240 Volts, Maximum 40 Amps Four wires, Three phase 240 volts between phase wires and neutralgeneral supply exceeding 40 amperes and sanctioned load not exceeding 80 k. W/ 100 k. VA (107 HP) in all areas, except in Municipal Corporation areas where such limit would be 150 k. W/ 187 k. VA (201 HP) 11 k. V/ 22 k. V, for all installations with contract demand above 80 k. W/ 100 k. VA (107 HP) in all areas, except in Municipal Corporation areas where such limit would be 150 k. W/ 187 k. VA (201 HP) and up to 1, 500 k. VA. Three phase 22 KV , Contract Demand up to 3000 KVA Three phase 33 KV , Contract Demand up to 5000 KVA Three phase Extra high voltage , Contract Demand above 5000 KVA DC System Installations Specifications i. General supply not exceeding 10 amperes ii. Motive power installations upto 1 BHP in aggregate Three wire, 460 volts between Motive power installations of outers over 1 BHP Two wires, 130 Volts 24 -Nov-20 Page 20

Classification of Installations • The classification of installations shall be as follows: Installations Specifications

Classification of Installations • The classification of installations shall be as follows: Installations Specifications Two wires, Single phase 230 Volts, Maximum 40 Amps Four / Three wires, Three phase • 230 Volts between phase wire and neutral or 400 Volts between the phases / lines. General supply exceeding 40 Amperes and Contract Demand not exceeding 80 KW/ 100 KVA (107 HP) in all areas, except in Municipal Corporation areas, the limit would be 150 KW/ 187 KVA (201 HP). • In case of multiple consumers with contract demand more than 150 KW / 187 KVA (201 HP), in the same building / premises as single point supply in the municipal corporation area, the limit would be 480 KW / 600 KVA / 643 HP. • For single point supply if the bus system (conventional / sandwich) is provided on secondary side of transformer four wire (three phase and neutral) with earth bus, the limit would be 1200 KW /1500 KVA (1607 HP). Three phase 11 KV , Contract Demand up to 5000 KVA Three phase 22 KV , Contract Demand up to 10000 KVA Three phase 33 KV , Contract Demand up to 20000 KVA Three phase Extra high voltage , Contract Demand above 20000 KVA 24 -Nov-20 Page 21

Restoration of Power Supply • The Distribution Licensee shall restore power supply in case

Restoration of Power Supply • The Distribution Licensee shall restore power supply in case of failure as per the following time limits: Type of Failure Urban Area Rural Area Fuse-off calls 4 Hours 24 Hours 6 Hours 24 Hours 48 Hours 12 Hours 48 Hours Overhead line breakdowns Distribution transformer failures Underground cable faults • The period of interruption as a result of any scheduled outage shall be specified in a public notice of such scheduled outage. • Such scheduled outage shall not normally exceed twelve (12) hours on any day and supply should preferably be restored by 18 -00 Hours. 24 -Nov-20 Page 22

Disconnection of Supply • The Distribution Licensee upon receipt of request for disconnection from

Disconnection of Supply • The Distribution Licensee upon receipt of request for disconnection from a consumer, shall intimate the consumer any amount outstanding and disconnect the supply as per the following time limit: Particulars Urban Area Rural Area Disconnect the supply 7 days 12 days Intimate the consumer about amount outstanding 7 days 12 days • Refund of security deposit along with issuance of “No- Dues certificate” should be made by licensee within thirty (30) days from the date of clearance/adjustment of all dues outstanding from the consumer in Urban Areas, and within forty five (45) days from the date of clearance of all dues outstanding from the consumer in Rural Areas. 24 -Nov-20 Page 23

Reconnection of supply following disconnection due to non-payment of bills • The Distribution Licensee

Reconnection of supply following disconnection due to non-payment of bills • The Distribution Licensee shall restore power supply to a consumer, whose supply has been disconnected due to non-payment of electricity bills, as per the following time limits, after production of proof of payment by the consumer: Urban Area Rural Area 4 Hours 12 Hours 24 -Nov-20 Page 24

Meter Related Standards • The Distribution Licensee shall, in the case of a burnt

Meter Related Standards • The Distribution Licensee shall, in the case of a burnt meter, restore supply within the following time limits, after the receipt of a complaint. Urban Area Rural Area 24 Hours 48 Hours 24 -Nov-20 Page 25

Meter Related Standards • The Distribution Licensee shall perform the following meter related activities

Meter Related Standards • The Distribution Licensee shall perform the following meter related activities subject to the provisions provided in the Supply Code and other associated regulations and codes. Activity Meter Reading Replacing faulty / non working meter * Replacing burnt meter# Urban Area Rural Area At least once in every 2 At least once in every 3 months Within 5 days Within 10 days * Cost of inspection shall be borne by the Distribution Licensee. # If the burning of meter is due to causes attributable to Distribution Licensee. If the meter is burnt due to causes attributable to the consumer the Distribution Licensee shall serve a notice to the consumer for recovery of cost of the meter within seven days of detection and shall replace the meter within fifteen days on receiving the payment. 24 -Nov-20 Page 26

Testing & Calibration of Meter • The Licensee shall carry out periodical testing and

Testing & Calibration of Meter • The Licensee shall carry out periodical testing and calibration of consumer’s meter along with CT / PT and accessories, as per table below: Type of Meter Duration Electro mechanical, Single phase, LT At least once in 5 years Electro mechanical, Three phase, LT At least once in 3 years Electro mechanical, Three phase, HT At least once in each year Electronic meter To be decided on type and specifications of meter 24 -Nov-20 Page 27

Complaint Registration and Complaint Handling… 1/6 Establishment of Call Centre(s) • The Distribution Licensee

Complaint Registration and Complaint Handling… 1/6 Establishment of Call Centre(s) • The Distribution Licensee shall establish call centre(s) for redressal of complaints of its consumers and such call centre(s) shall be accessible to its consumers round the clock during all days of the week, within the following time limits, from the date of commencement of MERC (Standard of Performance, Period of Giving Supply and Determination of Compensation) Regulations: Urban Area Rural Area 24 Months Within appropriate time period to be specified by the Commission on case to case basis 24 -Nov-20 Page 28

Complaint Registration and Complaint Handling… 2/6 • Every Licensee shall employ sufficient number of

Complaint Registration and Complaint Handling… 2/6 • Every Licensee shall employ sufficient number of officers or employees at its Call centre(s) and establish a basic telephone or cellular mobile telephone number having sufficient lines or connections to be called as the “toll free number” or “consumer care number” or “help line number” at its call centre(s). • Call charges or SMS charges shall not be levied upon the consumers for calls made or SMS sent, to these numbers. • Every Licensee shall, immediately upon establishment of its Call centre(s), inform about the same through a public notice in newspapers and should also ensure proper circulation of information to the consumers in case of any changes in the contact numbers. • Licensee should ensure availability of electronic data base to record complaints. • The Licensee shall convey information of the name of office (s), address (es) and telephone numbers where the consumer can lodge complaints, in the form of additional information along with the electricity bills. 24 -Nov-20 Page 29

Complaint Registration and Complaint Handling… 3/6 Operation of Call Centre(s) • The Distribution Licensee

Complaint Registration and Complaint Handling… 3/6 Operation of Call Centre(s) • The Distribution Licensee shall adhere to the following time limits for operation of call centre(s): Activity Time First response against a consumer call 3 Minutes Registration of consumer call and issue of complaint number 5 Minutes after first response 24 -Nov-20 Page 30

Complaint Registration and Complaint Handling… 4/6 Process of handling complaints • The Distribution Licensee

Complaint Registration and Complaint Handling… 4/6 Process of handling complaints • The Distribution Licensee shall devise its own process at complaint handling centres/ call centre(s)/ customer care centre(s)/ service centre(s) or any other customer interface channels to handle consumer complaints. The process should include the following: a) Registration of complaints by allotting a unique identification number to be called the complaint number; b) Communication to consumer of the complaint number, date/ time of registration of the complaint and expected complaint resolution time to the consumer; c) Record details of each complaint; d)Intimate contact details of the next higher authority (including his name, telephone number and address) to the consumer in case the consumer is not satisfied with the complaint handling; d) Update and record feedback and intimate contact details of the next higher authority to the consumer in case the consumer is not satisfied with the complaint handling. 24 -Nov-20 Page 31

Complaint Registration and Complaint Handling… 5/6 Complaints about Consumer’s Bills • The Distribution Licensee

Complaint Registration and Complaint Handling… 5/6 Complaints about Consumer’s Bills • The Distribution Licensee shall perform the following related to complaints about consumer’s bills: Activity Acknowledgement of a consumer’s complaint Resolving complaints about electricity bills* Complaint made in Person Complaint made by Post Immediately Within 7 Working days On the same day On the date of acknowledgement * In case additional information is not required. In cases, where any additional information is required to be collected, the complaint shall be resolved within ten days of receipt. • In case the complaint of the consumer is genuine and revision of bill becomes necessary, the due date for payment of bill would be reckoned from the date of the revised bill. For purpose of calculating additional charges for delayed payment or for disconnection of supply, the date of revised bill shall be considered. 24 -Nov-20 Page 32

Complaint Registration and Complaint Handling… 6/6 Complaint regarding meter working and Voltage Fluctuation •

Complaint Registration and Complaint Handling… 6/6 Complaint regarding meter working and Voltage Fluctuation • If a complaint is made by the consumer about the working of the meter and he requests for replacement, it shall be inspected and replaced as per the following time limits, provided it is established through laboratory checks that the meter is not performing to required standards. Urban Area Rural Area 7 Days 12 days • The Distribution Licensee shall ensure that the voltages are brought within the specified limits after receipt of complaint regarding voltage fluctuation, as per the following: Fault is identified to a local problem 2 days No expansion / enhancement is involved 10 days Up gradation of the Distribution system is required. 120 Days 24 -Nov-20 Page 33

Consumer Charter / Service… 1/2 • • Every Authorized Representative of the Distribution Licensee

Consumer Charter / Service… 1/2 • • Every Authorized Representative of the Distribution Licensee shall display his name-tag and if required by consumer his proof of identity and authorization of the Distribution Licensee. The Distribution Licensee shall maintain at least one consumer service center which shall be open for not less than eight (8) hours a day, on all days of the week, in every town and city within the area of supply, for essential services to be provided to consumers. Manual of practice for handling consumer complaints § Every licensee shall publish a “Manual of practice for handling customer complaints” containing following information within three months from the date of commencement of these regulations: a) Channels of complaint registration-details of personnel, offices, Call centre(s); b) Process of handling complaints; c) Duties and obligations of licensee-guaranteed standards of performance and compensation details; and d) any other information which may be affecting the consumers. 24 -Nov-20 Page 34

Consumer Charter / Service… 2/2 § § § • The manual shall be prepared

Consumer Charter / Service… 2/2 § § § • The manual shall be prepared in English, Hindi and local languages and shall be available for reference of consumers at every office of licensee and downloadable from its website. A consumer shall always be entitled to approach the Grievance Redressal Forum directly in accordance with the applicable regulations of the Commission. A copy of the manual certified by licensee as “true copy” thereof shall be filed with the Commission within three months from the date of commencement of these regulations. The Distribution Licensee shall make available to a consumer a hard copy of any of the following documents on demand, subject to payment of reasonable reproduction charges. (a) Electricity Supply Code and Other Conditions of Supply; (b) Standard of Performance Regulations; (c)Terms and Conditions of Supply along with the approved Schedule of Charges and the prevailing approved tariff schedule; and (d) Manual of practice for handling consumer’s complaints. 24 -Nov-20 Page 35

Reliability Indices… 1/2 • The Distribution Licensee shall calculate the reliability of his distribution

Reliability Indices… 1/2 • The Distribution Licensee shall calculate the reliability of his distribution system on the basis of the following: a) System Average Interruption Frequency Index; b) System Average Interruption Duration Index; and c) Customer Average Interruption Duration Index. Ø System Average Interruption Duration Index (SAIDI) is the average duration of sustained interruptions per consumer determined by dividing sum of all sustained consumers interruption durations by total number of consumers. Measured in the units of time. Ø System Average Interruption Frequency Index (SAIFI) is the average frequency of sustained interruptions per consumer. Measured in the units of interruptions per consumer. Ø Customer Average Interruption Duration Index (CAIDI) is the average interruption duration of sustained interruptions for those consumers who had experienced interruptions. Measured in the units of time. 24 -Nov-20 Page 36

Reliability Indices… 2/2 SAIDI = Σ (Ri * Ni) / Nt SAIFI = Σ

Reliability Indices… 2/2 SAIDI = Σ (Ri * Ni) / Nt SAIFI = Σ (Ni/Nt) CAIDI = SAIDI/SAIFI Where: i = Number of feeders in the Distribution Licensee’s area Ri=Restoration time for each interruption event on ith feeder. Ni=Number of consumers who have experienced a sustained interruption during an interruption on ith feeder Nt=Total number of consumers of the distribution Licensee‟s area. • While calculating the above indices, the following types of interruptions shall not be taken into account: a)Scheduled outages; b)Momentary outages of duration of less than three minutes; 24 -Nov-20 c)Outages due to the failure of the grid Page 37

Exemptions • Nothing contained in Regulations shall apply where, in the opinion of the

Exemptions • Nothing contained in Regulations shall apply where, in the opinion of the Commission, the Distribution Licensee is prevented from meeting his obligations under these Regulations by cyclone, floods, storms or other occurrences beyond the control of the Distribution Licensee. 24 -Nov-20 Page 38

Compensation Mechanism • Where the Distribution Licensee finds that it has failed to meet

Compensation Mechanism • Where the Distribution Licensee finds that it has failed to meet the Standards of Performance specified under Regulations, either by its own knowledge, or upon written claim filed by any person affected, the Distribution Licensee shall be liable to pay compensation to person(s) affected within two billing cycles from the date of failure meet to Performance Standard or the date of claim. • In case the Distribution Licensee fails to pay the compensation or if the affected person is aggrieved by non-redressal of his grievances, he may make a representation for the redressal of his grievance to the concerned Consumer Grievance Redressal Forum, in accordance with MERC (Consumer Grievances Redressal Forum and Electricity Ombudsman) Regulation, 2006. • In case the claim for compensation is upheld by the Consumer Grievances Redressal Forum, the compensation determined by the Commission will be implemented by the Forum. The Distribution Licensee shall pay within 90 days of direction issued by the Forum. • In case of appeal filed against order of the Forum before the Ombudsman by the affected person, the amount of compensation determined by Ombudsman shall be paid by the Distribution Licensee within 90 days of Order issued by the Ombudsman. 24 -Nov-20 Page 39

Compensation Mechanism • The Distribution Licensee shall be liable to pay compensation to the

Compensation Mechanism • The Distribution Licensee shall be liable to pay compensation to the affected consumer as specified by the Commission in the Regulations. Licensee fails to achieve Guaranteed So. P. Consumer shall file his claim within the period from the time the consumer is affected by failure of the Distribution Licensee to meet the So. P Maximum 60 days The Distribution Licensee shall compensate the consumer within the period from the date of his claim. Maximum 90 days The actual compensation may be decided by the Commission considering the following factors: (a)hardship caused to the consumer; and 24 -Nov-20 (b)average monthly bill of the consumer Page 40

List of Guaranteed So. P against which Compensation is Applicable… 1/2 Service Area Performance

List of Guaranteed So. P against which Compensation is Applicable… 1/2 Service Area Performance Standard Operation of Call Center First response against a consumer call, Registration of consumer call. Time period for completion of inspection, Time period for Provision of Supply intimation of charges to be borne by applicant, Time period of providing supply Fuse off call, Overhead line breakdown, Distribution Restoration of Supply transformer failure, Underground cable fault, Scheduled outage Maintenance of voltage within the specified range, Control Quality of Supply of the harmonics Meters Restoration of supply in case of burnt meter, Meter inspection and replacement Reconnection of a consumer who has been disconnected for less than six (6) months 24 -Nov-20 Page 41

List of Guaranteed So. P against which Compensation is Applicable… 2/2 Service Area Complaints

List of Guaranteed So. P against which Compensation is Applicable… 2/2 Service Area Complaints on Consumer’s Bills Consumer charter / service Other Services Performance Standard Acknowledgment of receipt, Resolution of billing complaints Visible display of name tag by authorized representative, show proof of identity Reading of consumer’s meter, Change of name, Change of tariff Category, Reduction in contract demand / sanctioned load, Closure of account 24 -Nov-20 Page 42

Overall Standards of Performance… 1/2 Service Area Fuse-off call Line Breakdowns Cable Break down

Overall Standards of Performance… 1/2 Service Area Fuse-off call Line Breakdowns Cable Break down Distribution Transformer Failure Performance Standard At least 99% calls received should be rectified within prescribed time limits in both Cities and Towns and in Rural areas At least 95% of cases resolved within prescribed time limit in both Cities and Towns and in Rural areas At least 95% of DTRs to be replaced within prescribed time limits in both Cities and Towns and in Rural areas SAIFI, SAIDI, CAIDI To be decided every year Period of Scheduled Outage At least 95% of cases resolved within time limit Frequency variations To maintain supply frequency within 49 – 50. 5 Hz as per IEGC. 24 -Nov-20 Page 43

Overall Standards of Performance… 2/2 Service Area Performance Standard Voltage Unbalance Maximum of 3%

Overall Standards of Performance… 2/2 Service Area Performance Standard Voltage Unbalance Maximum of 3% at point of commencement of supply % Billing mistakes Not exceeding 0. 1% % Faulty meters Not exceeding 3% At least 95% cases should be New / Addition to Supply, Transfer of complied within prescribed time ownership and change of Category, Temporary limits supply, Reconnection of Supply, Shifting of Meter / Service Connection • The compensation paid by the Distribution Licensee for respective parameter, may be allowed to be recovered partly or fully in the Aggregate Revenue Requirement (ARR) of Licensee, keeping in view the extent to which the licensee is able to achieve the Overall Standards of Performance. 24 -Nov-20 Page 44

Information regarding Level of Performance • The Distribution Licensee shall maintain and submit information

Information regarding Level of Performance • The Distribution Licensee shall maintain and submit information regarding a)The level of performance achieved by the Licensee during a month; b)The number of cases in which compensation was made and the aggregate amount of compensation made; to the Forum on a monthly basis and put up such information on the internet website of the Distribution Licensee, within a period of thirty (30) days from the end of the month. • It shall also submit the above information to the Commission on an annual basis, within a period of thirty (30) days from the end of the financial year. • It shall separately state the total number of cases where compensation has been paid by it without dispute and the total number of cases where compensation has been paid in compliance with an order or direction of the Forum or Ombudsman, along with the total amount of compensation in each category. 24 -Nov-20 Page 45

Audit Report § The Commission may authorize the Commission staff or any independent agency

Audit Report § The Commission may authorize the Commission staff or any independent agency to conduct annual checks, in order to monitor the compliance of the standards by the Licensees and submit audit report to the Commission. § The audit report shall address the following specific matters: a) Adherence to procedures and formats as per Regulations; b) Assessing staff engaged in call centres/ complaint handling centres/ customer care centres for their understanding of complaint handling procedures, quality parameters, and training adequacy for their task; c) Method of data collection and management procedures and d) Review of relevant records (as per appropriate sampling procedures) for reliability and accuracy across quality parameters. 24 -Nov-20 Page 46

Procedure for engaging agency § The following procedure shall be adopted for engaging agency:

Procedure for engaging agency § The following procedure shall be adopted for engaging agency: a) Audit scope and the methodology for carrying out the audit to be set by the Commission b) The Commission will identify and publish panel of approved agency c) Licensee shall nominate an agency from notified panel of agencies d) Licensee shall not engage an agency: (i) consecutively for more than two years. (ii) current statutory auditor (iii) current internal auditor (iv) current consultant 24 -Nov-20 Page 47

Auditing Methodology § Grading of the audit report on performance standard submitted by the

Auditing Methodology § Grading of the audit report on performance standard submitted by the licensee shall be done in two parts: Reliability Grading Reliability Grade Assessment of reliability grade A Based on proper records with adequate procedure B Data has significant procedural deviations C Unsatisfactory data Accuracy Grading Accuracy Grade Assessed accuracy level 1 +/-2% Percentage of compensation paid to be recovered through ARR 100% 2 +/-5% 85% 3 +/-10% 70% Note: If Reliability Grading of data is A then only further analysis to check accuracy will be carried out 24 -Nov-20 Page 48

Contents 1. About ABPS Infra 2. Related Provisions of Electricity Act, 2003 3. Salient

Contents 1. About ABPS Infra 2. Related Provisions of Electricity Act, 2003 3. Salient features of Draft MERC (Standard of Performance of Distribution Licensees, Period of Giving Supply and Determination of Compensation) Regulations, 2010. 4. Comparison of Standards of Performance specified by different SERCs. 24 -Nov-20 Page 49

Comparison of Performance Standards • Draft Maharashtra Electricity Regulatory Commission ( Standard of Performance

Comparison of Performance Standards • Draft Maharashtra Electricity Regulatory Commission ( Standard of Performance of Distribution Licensees, Period of Giving Supply and Determination of Compensation) Regulations, 2010. • Andhra Pradesh Electricity Regulatory Commission (Licensees' Standards of Performance) Regulation, 2004. • Delhi Electricity Supply Code and Performance Standards Regulations, 2007, DERC. • Madhya Pradesh Electricity Regulatory Commission (Distribution Performance Standards) Regulations, 2004. • The Electricity Supply Code 2005, Uttar Pradesh Electricity Regulatory Commission. 24 -Nov-20 Page 50

Compensation Schedule… New Connection Standard MERC In case Rs 100 per week connection is

Compensation Schedule… New Connection Standard MERC In case Rs 100 per week connection is to or part thereof of be from existing delay network Where extension Rs 100 per week or augmentation or part thereof of of distributing delay main is required APERC DERC MPERC Rs. 10 per Rs 1000 (or • Rs. 100 for each day part thereof) of the of delay for LT Rs. 50 for each demand charges • Rs. 200 for each day of default deposited by of delay for HT consumer for each day of default Rs. 50 for each Rs. 10 per Rs 1000 (or • Rs. 100 for each day of default in part thereof) of the of delay for LT case LT network demand charges • Rs. 200 for each day is to be deposited by augmented of delay for HT consumer for each day Rs. 250 in all of default other cases Where 10% of the amount commissioning of Rs 100 per week Rs. 500 for each deposited by sub-station is or part thereof of day of default developer week of required delay default • Rs. 100 for each day of delay for LT • Rs. 200 for each day of delay for HT * Time limits for providing connection has been specified by UPERC in Supply Code but compensation schedule for the same has not been provided. UPERC* NA NA NA Regulations, 24 -Nov-20 Page 51

Compensation Schedule… Restoration of Power Standard Fuse off call MERC APERC DERC Rs 50

Compensation Schedule… Restoration of Power Standard Fuse off call MERC APERC DERC Rs 50 per hour or Rs. 50 in each Rs. 50 for each part there of case of day of default delay default Rs 50 per hour or Rs. 50 in each Overhead line Rs. 50 for each part there of case of breakdown day of default delay default Distribution transformer failure Rs 50 per hour or Rs. 100 in Rs. 100 for each part there of each case of day of default delay default Rs 50 per hour or Rs. 50 in each Underground part there of case of cable fault delay default Scheduled outage Nil Rs. 100 in each case of default NA NA MPERC UPERC Amount equivalent to 2%of last paid electricity bill subject Rs. 50 in each to a maximum of Rs 50 in case of default each case of default Amount equivalent to 2. 5%of last paid electricity bill subject Rs. 50 to each to a maximum of Rs 50. to affected consumer each affected consumer NA NA Amount equivalent to 2%of last paid electricity bill subject to a maximum of Rs 100 to each affected consumer. NA 24 -Nov-20 Page 52

Compensation Schedule… Quality of Supply Standard Maintenance of voltage within the specified range of

Compensation Schedule… Quality of Supply Standard Maintenance of voltage within the specified range of the declared voltage Control of the harmonics level at the point of supply. MERC APERC* DERC MPERC UPERC • Rs. 50 for each • Amount equivalent to day of default if • Rs. 50 for each 2%of last paid • Rs. 50 in each no expansion/ day of default electricity bill subject case of default if enhancement is Rs 100 per week or for local fault or to maximum of Rs. 50. no expansion/ necessary part thereof for in each case of default enhancement is due to • Rs. 100 if which voltage Transformer tap if no expansion/ necessary, expansion is enhancement is • Rs. 100 for • Rs. 150 if varies beyond the necessary specified range each day of necessary expansion/ • Rs. 250 if default for • 1%if expansion/ enhancement is erection of new other causes enhancement is necessary Sub-Stn is necessary Rs. 100 per instance provided Amount equivalent to that the 0. 5%of last paid Commission shall NA NA NA separately notify electricity bill subject the date from to maximum of Rs. 50. which such in each case of default compensation shall be payable * Compensation payable to individual consumer if the event affects a single consumer. Compensation payable to individual consumer if the event affects a more than one consumer, is separately provided in Regulations by APERC 24 -Nov-20 Page 53

Compensation Schedule… Metering & Billing Standard MERC APERC* DERC Restoration of Rs 100 per

Compensation Schedule… Metering & Billing Standard MERC APERC* DERC Restoration of Rs 100 per week Rs. 50 for each supply in case of or part thereof each day of default burnt meter of delay default Meter inspection Rs 100 per week Rs. 50 in Rs. 25 for each and replacement in or part thereof each case of day of default case of customer of delay default complaint Resolution of To be decided billing complaints Rs. 25 for each day of default Reconnection of supply following disconnection due to non-payment of bills Rs. 50 in each case of default NA NA NA MPERC UPERC Amount equivalent to 2%of last paid electricity bill subject Rs. 50 in each to a maximum of Rs 50 in case of default each case of default Amount equivalent to 1%of last paid electricity bill subject Rs. 50 in each to a maximum of Rs 50 to case of default each affected consumer. Amount equivalent to 2%of last paid electricity bill subject NA to a maximum of Rs 50 for each day of default Amount equivalent to 0. 5%of Rs. 100 in each last paid electricity bill subject case of default to a maximum of Rs 50. * Compensation payable to individual consumer if the event affects a single consumer. Compensation payable to individual consumer if the event affects a more than one consumer, is separately provided in Regulations by APERC 24 -Nov-20 Page 54

Compensation Schedule… Other Services Standard MERC APERC* DERC Rs 100 per week Rs. 50

Compensation Schedule… Other Services Standard MERC APERC* DERC Rs 100 per week Rs. 50 for each or part thereof each day of default of delay default Transfer of ownership Rs 100 per week Rs. 50 for each Change of category or part thereof each day of default of delay default Conversion from single phase to Three phase & vice -versa for low tension Conversion from low tension to High tension NA Rs. 50 for each day of default NA Rs. 100 for each day of default MPERC UPERC Amount equivalent to 3%of last paid electricity bill subject Rs. 100 in each to a maximum of Rs 100 for case of default each day of default Amount equivalent to 3%of last paid electricity bill subject NA to a maximum of Rs 100 for each day of default NA Amount equivalent to 3%of last paid electricity bill subject to a maximum of Rs 100 for each day of default NA * Compensation payable to individual consumer if the event affects a single consumer. Compensation payable to individual consumers if the event affects a more than one consumer, is separately provided in Regulations by APERC 24 -Nov-20 Page 55

Period for Intimation of Charges payable for New Supply MERC 15 Days for urban

Period for Intimation of Charges payable for New Supply MERC 15 Days for urban areas, If can be given from 20 Days Existing Network for rural areas Where extension of distribution System is 30 Days required APERC NA LT – 7 Days, HT (11 KV) – 15 Days, HT (33 KV) – 30 Days, EHT – 45 Days DERC NA MPERC UPERC On the spot if no erection of pole is 3 Working days required, for both urban 10 Days in other and rural areas cases, after site inspection LT – 7 Days, HT (11 KV) – 15 Working days 15 Days, 50 KW - 15 days, for urban area, HT (33 KV) HT - 30 days, 30 Working days – 30 Days, EHT - 60 days for rural area EHT – 45 Days Note: Time Limits from the date of receipt of application for new supply. 24 -Nov-20 Page 56

Period for New Supply… 1/2 MERC If can be given from Existing Network Where

Period for New Supply… 1/2 MERC If can be given from Existing Network Where extension of distribution System is required APERC 1 Month 30 Days LT - 30 Days HT, 11 KV 60 Days, HT, 33 KV 3 Month 90 Days, EHT, Above 33 KV – 180 Days DERC MPERC UPERC LT – 10 Working Days As per Section 43 (Urban Areas) 7 Days of Act ( 1 Month) 14 Working Days (Rural Areas) LT - i) All connections excluding Agriculture- 60 days, Extension of Linesii) Agricultural connection during season when clear i)400 V – 45 Days LT (up to 5 Poles) ii)11 KV- 60 days access to fields is – 15 Days Available - 90 days, iii)33 KV - 120 days LT(more than 5 iv)132 KV - 300 days iii) Agricultural connection poles) – 60 Days, DT – during season when no LT(new DT) – clear access is Available - i)Augmentation of DT 120 Days, 180 days, - 60 days HT(11 KV)- 180 HT- i) If extension upto 100 ii)New DT- 120 days Days, meters work is involved- 30 iii) Augmentation of EHT- 240 Days days, 66/33 KV S/Stn - 180 ii)If extension beyond 100 days meters work is involved 90 days, EHT – 180 Days 24 -Nov-20 Page 57

Period for New Supply… 2/2 MERC Where erection of new substation is required APERC

Period for New Supply… 2/2 MERC Where erection of new substation is required APERC DERC i)Un-Electrified Areas (Where augmentation from Within the nearby existing network is period 1 Year possible) – 6 Months approved by ii)Un-Electrified Areas/ Green Commission Field Projects (Other Cases) - 12 Months* MPERC UPERC NA NA Note : Time Limits after the payment of charges for supply by consumer * After receipt of deposit of consumers’ share of necessary development charges as specified in Supply Code Regulations. 24 -Nov-20 Page 58

Period for Reconnection of Supply following disconnection due to Non-payment of Bills MERC Urban

Period for Reconnection of Supply following disconnection due to Non-payment of Bills MERC Urban Area 4 Hours Rural Area APERC Urban Area Rural Area DERC Urban Area Rural Area MPERC Urban Area Licensee shall reconnect the consumer’s installation within 12 Hours 4 Hours 12 Hours two days of payment 4 Hours of past dues along with reconnection charges and Service Line charges Rural Area 48 Hours UPERC Urban Area Rural Area 24 Hours Note : Time limits after the production of proof of payment by the consumer 24 -Nov-20 Page 59

Period for Disconnection of Supply MERC 7 days in Urban Areas and 10 days

Period for Disconnection of Supply MERC 7 days in Urban Areas and 10 days in Rural Areas. Refund of security deposit along with issuance of “No. Dues certificate” should be made by licensee within 30 days from the date of adjustment of all dues outstanding from the consumer in Urban Areas and within 45 days in Rural Areas. APERC NA DERC Licensee to carry out special reading and prepare final bill, including all arrears up to the date of billing, within five days of receiving such request. MPERC UPERC NA The supply shall be disconnected permanently in following cases: (a)With the termination of the agreement. (b) If the cause for which the supply was temporarily disconnected is not removed within six months period. (c) On request of consumer after submission of an affidavit and clearing of all electricity dues. Note: Time limits after receipt of request for disconnection. 24 -Nov-20 Page 60

Period for Voltage Fluctuation & Harmonics MERC APERC DERC MPERC UPERC LT + 10

Period for Voltage Fluctuation & Harmonics MERC APERC DERC MPERC UPERC LT + 10 % and -10 % +6% and -6% HT + 6% and – 9% +6% and -9% + 6% and -9% EHT + 10% and -12. 5% +10% and -10% Licensee shall control harmonics in Harm accordance with that onics prescribed by the IEEE STD 5191992 132 KV - 3% 33 KV - 8% 11 KV - 8% To be specified by the Commission after conducting a detailed study NA +10% and -12. 5% EHT = 4% HT = 5% LT = 10% 24 -Nov-20 Page 61

Period for Complaint Related to Voltage Fluctuation MERC* APERC* DERC MPERC • Local problem

Period for Complaint Related to Voltage Fluctuation MERC* APERC* DERC MPERC • Local problem : 4 • 2 Days, if fault is • 10 days if no Hours • 10 days if no identified to a • Tap of transformer: 3 expansion / local problem enhancement is Days • 10 days if no • Repair of distribution involved expansion / line / transformer / • 180 Days if upenhancement is • 120 Days if up capacitor: 30 Days gradation of involved -gradation of • Installation and Updistribution • 120 Days if updistribution gradation of High system is gradation of system is Tension / Low distribution required Tension System : 90 required system is required Days * UPERC • Within 24 hours in case of local problems. • Within 6 months in case of inadequacy of LT distribution system. • Within 12 months in case of deficiency in the HT distribution system. Where a substation is required to be erected to resolve such complaints, the Licensee shall submit to the Commission a proposal for erection of the substation and get the same approved by the Commission. 24 -Nov-20 Page 62

Period for Restoration of Power Supply MERC APERC DERC MPERC Urban Rural Urban Rural

Period for Restoration of Power Supply MERC APERC DERC MPERC Urban Rural Urban Rural Area Area Area 24 12 3 4 4 Hours 8 Hours 4 Hours 24 Hours 8 Hours Fuse-off calls Hours Overhead line 6 24 24 6 48 6 Hours 12 Hours 3 Days 8 Hours breakdowns Hours Distribution 24 48 48 * transformer Hours Hours failures Underground 12 48 NA NA cable faults Hours Period of Scheduled Outages 12 Hours NA 1 Day NA 7 Day 24 Hours NA 12 Hours 24 Hours 72 Hours 96 Hours NA * Temporary Restoration of supply through mobile transformer or another backup source within eight hours shall be provided. 24 -Nov-20 Page 63

Meter Related Issues Service MERC Replacing faulty/ 5 days in Urban Areas non-working and

Meter Related Issues Service MERC Replacing faulty/ 5 days in Urban Areas non-working and 10 days in Rural meters Areas Replacing burnt 5 days in Urban Areas meters for causes and within 10 days in attributable to Rural Areas Licensee shall serve a notice to the consumer Replacing burnt for recovery of cost of meters for causes the meter within 7 days attributable to of detection and shall Consumer replace the meter within 15 days on receiving the payment APERC 15 Days* 7 Days Licensee shall serve a notice to the consumer for recovery of cost of the meter within 7 days of detection and shall replace the meter within 7 days on receiving the payment DERC MPERC UPERC 15 Days* 15 days in Urban Areas and 30 days in Rural Areas 15 Days * 7 Days The Licensee shall restore the supply immediately after bypassing theburnt meter. A new meter shall be installed by the Licensee within 3 days. Licensee shall serve a notice to the consumer for recovery of cost of the meter within 7 days of detection and shall replace the meter within 7 days on receiving the payment The cost of the meter shall be borne by the consumer. The consumer shall be assessed under section 126 of the Electricity Act 2003, and shall be punishable under section 138 of the Electricity Act 2003. The Licensee shall restore supply within six hours upon receipt of complaint bypassing the burnt meter and new meter shall be provided within three days NA * After carrying out testing of meter, the cost of which shall be borne by Licensee 24 -Nov-20 Page 64

Complaints Related to Consumer Bills Service MERC • Immediately if received in Acknowledg person,

Complaints Related to Consumer Bills Service MERC • Immediately if received in Acknowledg person, ement of • 7 working days complaint if the complaint is received by post APERC • Immediately if received in person, • 2 working days if the complaint is received by post DERC MPERC • Immediately if received in person, • 3 working days if • Next working days if the complaint is received by post • On the same day • Within 15 days of if made in receipt, if no person, On the • Within 24 additional day of working hours information is acknowledgemen of its receipt. required. Resolving of t, if complaint is Within 7 days • Within 30 days of complaint made by post. of receipt, in case any Within 10 days of additional receipt, if information is additional required. information is required. On the same day of receipt. If additional information is required, within 5 days in urban areas and 10 days in rural areas, in the following cases: (a) HT consumers, whose disputed amount less than or equal to Rs 20000/(b) LT consumers, whose disputed amount less than or equal to Rs 20000/-, excluding cases where the disputed amount is due to arithmetical or clerical errors UPERC NA NA 24 -Nov-20 Page 65

Transfer of Ownership and Change of Category Service MERC APERC DERC MPERC UPERC Mutation

Transfer of Ownership and Change of Category Service MERC APERC DERC MPERC UPERC Mutation will be Within 7 days of Within 10 days after effected within 7 days receipt of Within two billing cycles completion of formalities of payment of any application outstanding dues Licensee shall inspect the premises and change the category within ten Within 7 days of days from the date of Change of Within second billing Within 10 days after NA receipt of acceptanceofapplication. category cycle completion of formalities Such change of category application shall be effective from the date of deposit of inspection fee. Conversion • Within 30 days from the date from single of payment of necessary Within second billing Within 30 days of phase to Three charges cycle receipt of NA NA phase & vice • Within 90 days, in case of application versa for low extension of line is required • Within 30 days from the date Conversion Within third billing Within 60 days of of payment of necessary from low cycle receipt of NA charges NA tension to High application • Within 90 days, in case of tension extension of line is required Transfer of ownership Within second billing cycle 24 -Nov-20 Page 66

THANK YOU ABPS Advisory Private Limited ABPSInfrastructure Advisory November 2010

THANK YOU ABPS Advisory Private Limited ABPSInfrastructure Advisory November 2010