IIMS Journal of Management Science
  • Year: 2015
  • Volume: 6
  • Issue: 1

Benchmarking of Quality of Supply in Electricity Distribution Utilities – A Case Study of Private Franchisee in Karond Area of Bhopal City

JEL classification: H-11 H-32, H-59, G-32, R19

Abstract

The process of benchmarking helps in revealing areas where a particular utility's performance is lacking and gives directions for further improvement of processes. It gives detailed examination to identify any causes that are bringing down performance. It gives a clear assessment of strengths and weaknesses, and hence a utility can formulate a better corporate strategy to improve its performance. The purpose of benchmarking is to help in improving the effectiveness of process and delivery of services.

The benchmarks aim to bring improvements in electricity distribution by providing performance measures that will (1) help utility managers to better understand their company's strengths and weaknesses and direct improvement efforts and (2) help public officials, investors, lending institutions, etc. India's private and public utilities, which are undergoing structural reform, offer many success stories in performance enhancement. Mumbai has been served by private utilities and enjoys international standards of reliability and low technical losses. There is progress in other utilities and states also such as Ahmedabad Electricity Company, Calcutta Electric Supply, the states of Orissa, Kerala, Karnataka and Maharashtra. In the Karond area of Bhopal in MP, Agrawal Power Pvt. Ltd. (APPL), who took over distribution franchise of the area in Oct, 2007, has also made substantial progress in reducing losses and increasing the collection efficiency.

Keywords

Benchmarking, Utility, Performance, Efficiency, Consumer service, Metering, Billing, Collection