Electricity today is a critical input for the socio-economic development of the country. The infrastructure would need the availability of assured and quality power at affordable price through reliable and adequate generation, transmission and distribution facilities.
The paper provides the main approach to benchmarking method for performance monitoring of various power sector utility/state electricity board using scorecard technique. The aim of benchmarking is to reveal performance variations amongst the regulated utilities. Benchmarking is used for identifying the most efficient firm in the sector and for measuring the relative performance of less efficient firms.
The methodology involves assigning weights to indicators in conjunction with their scores on a devise scale, and evaluates performance scores by employing a balanced scorecard. The proposed Balanced Score Card (BSC) methodology identifies a few key indicators and uses certain groups to arrange the indicators appropriately, using Delphi methodology. This methodology has been applied on the state distribution utilities in India to ensure the electricity supply services demonstrating sustainable operational performances.
The evolved scorecard can rate state owned electric utilities in twenty nine states/utilities in India in terms of the parameters and their associated indicator, and can also provide a single utility performance scores. These results may be utilized by the decision makers and utility managers to identify the areas of shortcomings and flaws in the operation of the utility and to convey the non-specialists and the user community the results of the performance in a comprehensive numeric form. The results are then compared with the performance report of CRISIL & ICRA for year 2006.
benchmarking, indicators, performance,scorecard, weight
