Report Description

Power Distribution Franchise (DF) is a public-private partnership in the power distribution sector and it works as an intermediary between distribution utility and the end consumers. The concept of franchise model in electricity distribution was introduced to reduce the financial losses incurred by state discom due to huge Aggregate Technical & Commercial (AT&C) losses. Distribution Franchise model has been implemented in various Indian cities for supplying electricity to the consumers, and was able to bring down the AT&C losses by more than 20% during its period of operation. Over the years, government of India has continuously been voicing intentions of implementing distribution franchise model in 200 cities based on the success of distribution franchisees in the cities of Maharashtra, Uttar Pradesh and Odisha. In Varanasi, AT&C losses were over 30% in 2014, resulting in inadequate power supply, thereby calling for the implementation of distribution franchise model in the district. 

According to TechSci Research report Varanasi Power Distribution Franchise Model, 2015, Varanasi district faced huge distribution losses of over 20% in 2014, which led to financial distress of the Poorvanchal Vidyut Vitaran Nigam Limited (Varanasi discom). The report underlines that AT&C losses in Varanasi district occur due to electricity theft, low metering efficiency, improper meter reading, faulty meters, inefficient billing and low collection efficiency. The report also reveals that Input and Investment based Franchise Model is the most prominent franchise model for distribution of electricity in India. Under this model, the franchisee is responsible for supply of power, metering, billing and collection of revenues as well as for up gradation and expansion of distribution infrastructure. Currently, prominent companies that are operating as power distribution franchisees in the country are Torrent Power, SPML Infra, Essel Utilities, Feedback Energy Distribution Company and CESC Limited. Varanasi Power Distribution Franchise Model, 2015 discusses the following aspects related to Power Distribution Franchise Market in Varanasi District:
  • Varanasi District Power Sector Outlook
  • Analysis of parameters like AT&C Losses, Consumer Load data, Energy Sales data, etc.
  • Policy & Regulatory Landscape
  • Changing Market Trends & Emerging Opportunities
  • Competitive Landscape & Strategic Recommendations
Why You Should Buy This Report?
  • To gain an in-depth understanding of Power Distribution Franchise Model and Power Sector of Varanasi district
  • To identify the on-going trends and anticipated growth in the next five years
  • To help industry consultants and power distribution franchisees to align their market-centric strategies
  • To obtain research-based business decisions and add weight to presentations and marketing material
  • To gain competitive knowledge of leading market players
  • To avail 10% customization in the report without any extra charges and get research data or trends added in the report as per the buyer’s specific needs
Report Methodology 

The information contained in this report is based upon both primary and secondary sources. Primary research included interviews with discoms and industry experts. Secondary research included an exhaustive search of relevant publications like company annual reports, financial reports and other proprietary databases.

Table of content

1.     Research Methodology

2.     Analyst Views

3.     Product Overview

4.     India Power Sector Outlook

4.1.   Installed Capacity

4.1.1. By Source ( Thermal, Hydro, Renewable, Nuclear)

4.1.2. By Sector (Private, State, Central)

4.1.3. By Fuel (Coal, Hydro, Gas, Wind, Others)

4.2.   Regional Snapshot

4.2.1. Power Supply Position

4.2.2. Peak Demand

4.2.3. AT&C Losses

4.3.   Institutional Framework

5.     Uttar Pradesh Power Sector Outlook

5.1.   Installed Capacity

5.1.1. By Source ( Thermal, Hydro, Renewable, Nuclear)

5.1.2. By Sector (Private, State, Central)

5.2.   Distribution Companies Energy Outlook

5.2.1. By Input Energy

5.2.2. By Energy Sold

5.2.3. Distribution Losses

5.2.4. AT&C Losses

5.3.   Electricity  Share

5.3.1. By End User Segment

5.4.   Revenue Assessment Share

5.4.1. By End User Segment

6.     Purvanchal Vidyut Vitaran Nigam Limited Outlook

6.1.   Market Size

6.1.1. By Consumer

6.1.2. By Connected Load

6.1.3. By Distribution Losses

6.1.4. By AT&C Losses

6.1.5. By Power Purchase

6.1.6. By Power Sold

7.     Distribution Franchisee Models

7.1.   By Type

7.2.   Bidding Overview

7.2.1. Power Distribution Franchisee Selection Process

7.2.2. Formats for Bid Submission

7.2.3. Financial Capability

7.2.4. Pre-Qualification Criteria

8.     Varanasi District Power Sector Overview

9.     Varanasi District Power Sector Outlook

9.1.   Power Consumption

9.1.1. By Consumer

9.2.   By Division (Electricity Portfolio)

9.3.    Market Size & Forecast

9.3.1. Number of Consumer

9.3.2. Connected Load

9.3.3. Energy Input & Sold

9.3.4. Distribution Losses

9.3.5. Collection Efficiency

9.3.6. AT&C Losses

10.  Market Dynamics

10.1.Drivers

10.2.Challenges

11.  Market Trends and Developments

11.1.Privatization of Distribution Sector.

11.2.Improve Financial Status of Discom

11.3.Entry of New Players.

11.4.Input Based Franchisee with Incremental Revenue Share Model.

11.5.Government Support

12.  Policy & Regulatory Landscape

13.  India Economic Profile

14.  Competitive Landscape

14.1.Company Profiles

14.1.1.   Torrent Power Limited

14.1.2.   Essel Utilities Distribution Company Limited

14.1.3.   SPML Infra Limited

14.1.4.   Feedback Energy Distribution Company Limited

14.1.5.   CESC Limited

14.1.6.   Tata Power Corporation Limited

14.1.7.   Crompton Greaves Limited

14.1.8.   Spanco Limited

14.1.9.   Shyam Indus Power Solutions Private Limited

14.1.10.   Enzen Global Solutions Private Limited

15.  Strategic Recommendations

 

 


Figures and Tables

List of Figures

 

Figure 1: India Total Installed Power Capacity (MW), By Source of Energy, As of March 2015

Figure 2: India Total Installed Power Capacity (MW), By Sector, As of March 2015

Figure 3: India Total Installed Power Capacity (MW), By Type of Fuel, As of March 2015

Figure 4: Uttar Pradesh Total Installed Power Capacity (MW), By Source of Energy, As of March 2015

Figure 5: Uttar Pradesh Total Installed Power Capacity (MW), By Sector, As of March 2015

Figure 6:  Uttar Pradesh Electricity Sales and Revenue Assessment, By Category, 2012-13

Figure 7: PuVVNL Total Metered and Unmetered Consumers, 2010-2014 (Lakhs)

Figure 8: PuVVNL Connected Load (MW), 2010-2014

Figure 9: PuVVNL Power Purchased and Power Sold (Million KWh), 2010-2014

Figure 10: PuVVNL ACS, Avg. Revenue, Gap (without subsidy and with subsidy), 2011-2013 (INR/kwh)

Figure 11: PuVVNL Distribution Losses, 2011-2013

Figure 12: PuVVNL AT&C Losses, 2011-2013

Figure 13: Distribution Franchisee Selection Process

Figure 14: Number of Consumers in Varanasi District, 2010-2020F (Thousand)

Figure 15: Connected Load in Varanasi District, 2010-2020F (MW)

Figure 16: Varanasi District Energy Input and Energy Sold, 2010-2020F (MU)

Figure 17: Varanasi District Distribution Losses (%), 2010-2020F

Figure 18: Varanasi District Collection Efficiency (%), 2010-2020F

Figure 19: Varanasi District Aggregate Commercial and Technical Losses (%), 2010-2020F

Figure 20: Torrent Power Ltd., Financial Analysis, 2010-2014

Figure 21: Essel Utilities Distribution Company Ltd., Financial Analysis, 2010-2014

Figure 22: SPML Infra Limited, Financial Analysis, 2010-2014

Figure 23: CESC Limited, Financial Analysis, 2010-2014

Figure 24: Tata Power Corporation Ltd., Financial Analysis, 2010-2014

Figure 25: Crompton Greaves Limited (Power Business Unit India), Financial Analysis, 2010-2014

Figure 26: Spanco Ltd., Financial Analysis, 2010-2014

Figure 27: Enzen Global Solutions Private Limited., Financial Analysis, 2010-2014

 

List of Tables

 

Table 1: India Power Supply Position (MU), By Region, 2014-2015

Table 2: India Peak Demand (MW) vs Peak Met (MW), By Region, 2014-2015

Table 3: India AT&C Losses (%), By Region, 2009-2013

Table 4: Growth of Transmission and Distribution Sector in Uttar Pradesh, 2010-2013

Table 5: Uttar Pradesh T&D and AT&C Losses (%) of Power Distribution Utilities, 2012-2013

Table 6: Types of Distribution Franchise Model in India

Table 7: Distribution Franchisees Operating In India, 2014

Table 8: Pre-Qualification Criteria for Distribution Franchise

Table 9: Organization Structure of Varanasi District

Table 10: Varanasi District EHV/HV Substations, As of March 2015

Table 11: Varanasi District Transformation Capacity, As of March 2013

Table 12: Status of Rural Electrification in Varanasi District, As of March 2013

Table 13: Varanasi District Power Consumption, By Consumer Type (kwh)

Table 14: Varanasi District Electricity Portfolio, By Division, As of Jan 2014

Table 15: Difference between Public Private Partnership and Distribution Franchise in Power Sector

Table 16: Feedback Energy Distribution Company Limited, Financial Analysis, for the period 29/10/2012 to 31/03/2014


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Sakshi Bajaal

Principal Consultant
Press Release

Power Distribution Franchise Model to Cut AT&C Losses by Over 20% in Varanasi

Dec, 2015

High aggregate technical and commercial losses, distribution losses and electricity thefts in Varanasi district call for implementation of Power Distribution Franchise Model