Partnerships in power franchisees
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Partnerships in Power Franchisees. Shuvendu Patnaik. Key Result Areas for Franchisees. Franchisees deal with almost every activity, like a licensee There are many KRAs Key for survival Loss reduction Revenue realization Managing cash flow. O&M. Meter reading. Grievances & public dealing.

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Partnerships in Power Franchisees

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Partnerships in power franchisees

Partnerships in Power Franchisees

Shuvendu Patnaik

Key result areas for franchisees

Key Result Areas for Franchisees

  • Franchisees deal with almost every activity, like a licensee

  • There are many KRAs

  • Key for survival

    • Loss reduction

    • Revenue realization

    • Managing cash flow


Meter reading

Grievances & public dealing



These are easier said than done

IUKAN 2013/Session 3/12th February 2013

Partnerships in power franchisees

Technical Loss

Non Technical loss

No load loss

All energy


Theft or pilferage

33/11 kV S/S




33 kV line loss

CT tampering

CT/PT nameplate error

Load loss

Meter Burnt

Meter Tampering

11 kV line loss

Wiring Error

No load loss

PT Error

Meters bypassed

DT loss

Not sealed

Metering System Errors

Load loss

LT line loss

Meters Not read (provisional reading)

Meter Error

CT Error

Unmatched CT ratio

AT&C Loss



Distribution loss

… but he is not entirely to be blamed

Is never paid for fully

Meter sl no not matched

Commercial loss

Collusion of meter readers with consumers

Avoidable commercial loss (large)

Coffee shop readings

Consumer does not desire to pay

Bills delivered

In wrong address

Consumer refused access

Meters at height

Meters damaged

There are too many contributing factors

Delay in Meter Reading


Late issue of Notice

Bills illegible/


Meter box locked

Billing not found

Inadvertent reading error

Display Errors

Billing dispute

Errors in bill processing & billing

Premises locked

Digits not visible

Bills not


Display off

Mismatch in meter & account no. in bill

Temporarily locked

Late distribution

Of bills

Consumers never pay for everything they consume

Unavoidable technical loss (small)

Permanently locked

Billing & Bill Distribution errors

Meter reading errors

Delayed Payment/

Non payment

IUKAN 2013/Session 3/12th February 2013

What causes loss

What causes loss

What is it which franchisees are not doing, or can be done differently?

Lack of reliable measurements

  • There are only two factors

    • Technical

    • Administrative

What is it we can contribute, which could be different or unique?

Lack of trustworthy information

‘Where’ a higher loss is taken place


This is where collaboration could be possible

Administration and enforcement

‘What’ intervention is needed

Returns (Technical possibilities due to investment)

Technical factor

This is where partnerships can help

Need for administrative teeth

What complimentary skills can be brought on the table?

How much Capex would be involved


This is not the domain of technical partners

Risk arising from legal complications

These are the areas where reliable results can be actually delivered

How long will the the payback be

This is where the skills of franchisee’s management should lie

Risk (Technical risk if investments do not deliver expected results)

Dealing with local goons

What would be the ROI

Franchisee business and administrative risks


Political interference

IUKAN 2013/Session 3/12th February 2013

Partnerships in power franchisees

Complete range of metering products

But these in isolation can never address the problems

What would be different about this?

Secure deals with

Something more is needed, which we could provide


Revenue protection

Revenue completeness

Intellectual capital

Wide range of utility services

In-depth field experience in India

IUKAN 2013/Session 3/12th February 2013

Partnerships in power franchisees

Revenue protection & revenue completeness cover a wide range of individual activities

What would be different about this?

Choice of meters (specs)

Energy & loss accounting

Sound Installation practices

Consumer indexing

What is needed is integration

They are all well known individually

Seals & seal management

This is where we could become a technical partner

Tamper analysis

Intellectual capital

Installation audits and field testing (CTs, PTs, meters)

Data validation

Consumer meter reading

Data acquisition from DT & feeder meters

IUKAN 2013/Session 3/12th February 2013

Partnerships in power franchisees

Technical partnerships

Capex and Opex sharing can be discussed and linked to two-way SLAs and reliable measurements


Risk to partner


Supplier, Contractor

Business Partner

Franchisee decides what is needed

Partner decides what is needed

It is possible to have a partnership anywhere along this band

Implements whatever is needed

Supplies only what is ordered

Modifies decisions, as time goes by

Responsible for timely & quality deliveries

Not accountable for results

Fully accountable for results

IUKAN 2013/Session 3/12th February 2013

A common problem

A common problem

  • A number of problems are often due to

    • Meter reading and billing errors, integrity issues, delays, etc.

    • Consumers’ bill-related grievances

    • Meter reading & billing infrastructure costs, etc.

    • Poor collection efficiency, perennial defaulters

    • Need for notices before disconnection, and related social issues

    • Poor cash flow, long cash cycle, need for Working Capital

This is where a technical partner can help in many ways

IUKAN 2013/Session 3/12th February 2013

Partnerships in power franchisees


Energy billed (Sale)

Actual Consumption

Remote display

(1 phase)

Energy realized

Measured Consumption

(3 phase)

Prepayment addresses these problems

Technical Loss

Energy accounting would be needed to know if things are fine

Input Energy


Reading errors

Delays, non payment etc.

Electrical infrastructure

Tamper & fraud

But energy accounting is tricky and needs special techniques

Metering errors

Delivered Energy


Energy input to Franchisee

Billed Energy

IUKAN 2013/Session 3/12th February 2013

Thank you

Technical partnerships can become a great enabler for franchisees

Thank you

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