Minutes of Performance Review of CESU

from April, 11 to September, 2011 held in OERC on 27.12.2011.

Date of Review : 27.12.2011 at 04.00 PM

Period of Review : From April, 2011 to September, 2011

Representative of CESU, GRIDCO and OPTCL present during the review:

(i)  Shri B C Jena, Chairman Cum CEO, CESU

(ii)  Shri B K Lenka, COO, CESU

(iii)  Shri Manoj Ku. Singh, GM, CESU

(iv)  Shri P K Dash, Sr. GM (Com.), CESU

(v)  Shri R. Kamilla, GM, EHT (O&M), OPTCL

(vi)  Shri M R Mohanty, AGM (Elec.), OPTCL

(vii)  Shri P K Mohapatra, AGM (Elect.), OPTCL

(viii)  Shri P K Pradhan, Director (Com), GRIDCO

(ix)  Shri S. Pradhan, Dy. Secretary, DoE, GoO

1.  Shri M K Singh, GM, CESU made a presentation before the Commission about the performance of CESU during the period from April, 2011 to Sept., 2011 as per the agenda items indicated by the Commission. Commission’s Observations on Licensee’s Performance in brief are as follows:

(A)  PERFORMANCE OF CESU

2.  Sales Analysis of CESU

The Commission noted that during the period under review the energy purchased by the licensee was found to be 3811.29 MU compared to the prorated target of the Commission at 3895.50 MU for FY 1st half of FY 2011-12. The represents increase of 1.96 % compared to the purchase during the same period of FY 2010-11. At the same time, the net sale by the licensee has been increased by 1.98 % compared to the sales corresponding to same period for FY 2010-11. The increase in sale is contributed by increase in EHT and LT sale by 0.1% and 2.61% respectively in comparison to the sales corresponding to the same period for FY 2010-11. While there is an increase in EHT and LT sales the HT sales has been decreased by 0.58% compared to the previous years. During the period under review the licensee has achieved 86.43%, 82.95%, 69.53% of the collection target set by the Commission in EHT, HT and LT sector.

SALES ANALYSIS OF CESU-FY-2011-12 (Up to September)
INPUT (MU) / TOTAL SALES
(MU) / EHT
(MU) / % to Total Sales / HT
(MU) / % to Total Sales / LT
(MU) / % to Total Sales
TARGET proportionated to half year / 3895.50 / 2960.58 / 762.90 / 25.77% / 538.55 / 18.19% / 1659.14 / 56.04%
ACHIEVEMENT / 3811.29 / 2353.03 / 704.58 / 29.94% / 446.14 / 18.96% / 1202.31 / 51.10%
% Achieved / 97.84% / 79.48% / 92.36% / 82.84% / 72.47%
Achieved Last Year / 7069.31 / 4361.44 / 1397.23 / 32.04% / 852.22 / 19.54% / 2111.99 / 48.42%
Proportionated to half year / 3534.66 / 2180.72 / 698.62 / 426.11 / 1056.00
Change Compared to Last Year / 1.96% / 1.98% / 0.21% / -2.09% / 1.18% / -0.58% / 3.46% / 2.67%
COLLECTION (Rs. in Cr.)
TARGET / 1192.40 / 384.20 / 286.96 / 521.25
ACHIEVEMENT / 932.51 / 332.08 / 238.02 / 362.41
% Achieved / 78.20% / 86.43% / 82.95% / 69.53%

3.  Loss Analysis of the CESU

While analyzing the performance regarding the reduction of loss achieved by the licensee it is noticed that the overall distribution loss achieved by the licensee is 38.26% compared to 38.30% during FY 2010-11 resulting in a decrease of overall loss by 0.04%. It is observed that LT distribution loss has reduced from 51.67% during FY 2010-11 to 50.15% during the 1st half of FY 2011-12 a decline of 1.52%. However, CESU is still far away from the target of the Commission to achieve LT distribution loss of 29.20% for FY 2011-12. With regard to the performance in achieving AT&C loss it is observed that CESU has achieved an overall AT&C loss of 41.79% compared to 41.00% during FY 2010-11 resulting in a net increase of 0.79% compared to the last financial year. The overall increase in AT&C loss by 0.79 % was due to lower collection efficiency in EHT sector by 4.42% by the licensee compared to FY 2010-11. While there is a marginal improvement in billing efficiency the collection efficiency of licensee has decreased in both EHT and LT sector by 4.42% and 2.71% respectively. In terms of all the parameters discussed above CESU has not been able to meet OERC targets, though not declined unlike other three DISCOMs.

PERFORMANCE OF CESU-LOSS
2010-11 / Actual FY-2011-12 (Apr-Sept) / Target 2011-12 / Deviation from the Target / Change over 2010-11
DISTRIBUTION LOSS (%)
LT / 51.67% / 50.15% / 29.20% / 20.95% / -1.52%
OVERALL / 38.30% / 38.26% / 24.00% / 14.26% / -0.04%
BILLING EFFECIENCY (%)
LT / 48.33% / 49.85% / 70.80% / -20.95% / 1.52%
OVERALL / 61.70% / 61.74% / 76.00% / -14.26% / 0.04%
COLLECTION EFFICIENCY (%)
EHT / 101.00% / 96.58% / 99.00% / -2.42% / -4.42%
HT / 98.00% / 103.47% / 99.00% / 4.47% / 5.47%
LT / 90.00% / 87.29% / 99.00% / -11.71% / -2.71%
OVERALL / 95.60% / 94.28% / 99.00% / -4.72% / -1.32%
AT & C LOSS (%)
LT / 56.55% / 56.49% / 29.91% / 26.58% / -0.06%
OVERALL / 41.00% / 41.79% / 24.78% / 17.01% / 0.79%

4.  Performance of Divisions:

The division-wise performance sheet of CESU shows that overall LT Realization to input for all divisions taken together has increased from 143.88 Paise to 150 paise during the period under review. The increase in realization per input is 4.43% compared to the overall RST rise of 17.23% during FY FY 2011-12. The most efficient division in terms of reduction of AT&C – LT loss is found to be CDD-I which has reduced AT&C-LT loss by 3.66%. The reduction of AT&C-LT loss is 2.02% and 2.01% in BCDDE-I and BED respectfully. The worst performing divisions are TED, NED and KED-I where AT&C – LT loss has increased by 8.44%, 6.30% and 3.61% respectfully. The Commission expressed their anguish for the fact that even after repeated instructions the loss level of divisions like NED-Nimapada), SED (Salepur) and KED-1 & 2 has remained at about 70 %. The CEO must initiate stern action against the non-performing divisional heads as directed by the Commission in its letter No. DIR(T)-336/08/2544 dtd.13.01.2012.

Concrete action taken in this regard against the non-performing and poor performing official and staff should be reported to the Commission by 30.04.2011.

L.T.PERFORMANCE OF CESU DIVISIONS FOR FY 2011-12
Rate of Bulk supply Bill (Incl. Transmission) P/U / 2010-11 / 1.82 / 2011-12 / 2.43 / HT Loss taken @ 8 %
Sl. No. / Name of Division / LOSS (%) (Assuming HT Loss 8%) / AT & C LOSS (%) / % Increase / Overall Realization Per total Input p/u / LT Realization Per LT Input
LT / Over All / LT / TOTAL
OERC TARGET /APPROVED FOR 2011-12 / 29.2% / 24.0% / 29.9% / 24.8% / 3.03 / 2.20
ACTUAL
1 / BCDD-1 / 2011-12 (Sept,11) / 8.6% / 13.7% / 8.9% / 12.3% / -2.02% / 3.95 / 3.82
2010-11 / 8.8% / 13.9% / 9.3% / 14.4% / 3.58 / 3.60
2 / BCDD-2 / 2011-12 (Sept,11) / 25.5% / 23.0% / 30.1% / 25.1% / 2.12% / 3.25 / 2.60
2010-11 / 26.0% / 23.0% / 25.5% / 23.0% / 3.00 / 2.61
3 / BED / 2011-12 (Sept,11) / 25.5% / 27.1% / 27.3% / 27.1% / -2.01% / 2.98 / 2.78
2010-11 / 26.8% / 27.8% / 28.6% / 29.1% / 2.70 / 2.61
4 / NEDN / 2011-12 (Sept,11) / 64.2% / 66.4% / 72.4% / 73.5% / 0.26% / 0.78 / 0.79
2010-11 / 65.3% / 67.6% / 71.9% / 73.2% / 0.77 / 0.79
5 / PED / 2011-12 (Sept,11) / 55.4% / 56.4% / 64.5% / 64.3% / -1.20% / 1.30 / 1.22
2010-11 / 57.2% / 58.3% / 65.2% / 65.5% / 1.20 / 1.16
6 / NED / 2011-12 (Sept,11) / 49.8% / 53.5% / 53.8% / 57.0% / 6.30% / 1.22 / 1.28
2010-11 / 49.5% / 53.1% / 53.6% / 50.7% / 1.43 / 1.33
7 / KED / 2011-12 (Sept,11) / 54.1% / 38.9% / 61.1% / 42.9% / -1.54% / 2.51 / 1.29
2010-11 / 53.8% / 38.4% / 60.2% / 44.5% / 2.14 / 1.25
8 / BEDB / 2011-12 (Sept,11) / 51.9% / 44.2% / 61.3% / 49.7% / -0.57% / 1.89 / 1.12
2010-11 / 54.0% / 45.9% / 60.4% / 50.3% / 1.70 / 1.13
9 / CED / 2011-12 (Sept,11) / 63.7% / 50.4% / 73.3% / 53.7% / -3.28% / 1.89 / 0.86
2010-11 / 67.4% / 52.7% / 72.7% / 56.9% / 1.60 / 0.84
10 / CDD-I / 2011-12 (Sept,11) / 31.0% / 33.6% / 33.9% / 35.4% / -3.66% / 2.62 / 2.58
2010-11 / 35.1% / 37.2% / 36.9% / 39.0% / 2.32 / 2.34
11 / CDD-II / 2011-12 (Sept,11) / 40.5% / 31.6% / 46.8% / 34.8% / 0.97% / 2.94 / 2.04
2010-11 / 38.0% / 29.9% / 41.9% / 33.8% / 2.71 / 2.13
12 / AED / 2011-12 (Sept,11) / 69.6% / 35.4% / 77.4% / 34.6% / -1.70% / 2.60 / 0.65
2010-11 / 70.7% / 33.5% / 75.4% / 36.3% / 2.25 / 0.69
13 / SED / 2011-12 (Sept,11) / 56.0% / 59.4% / 69.4% / 71.9% / 1.69% / 0.79 / 0.85
2010-11 / 56.6% / 59.9% / 67.5% / 70.2% / 0.84 / 0.91
14 / KED-I / 2011-12 (Sept,11) / 49.0% / 52.8% / 62.8% / 65.2% / 3.67% / 1.07 / 1.13
2010-11 / 48.2% / 52.2% / 58.3% / 61.5% / 1.12 / 1.20
15 / KED-II / 2011-12 (Sept,11) / 60.6% / 63.2% / 68.5% / 70.3% / 0.59% / 0.87 / 0.90
2010-11 / 63.2% / 65.6% / 67.8% / 69.7% / 0.87 / 0.91
16 / PDP / 2011-12 (Sept,11) / 60.0% / 28.4% / 67.7% / 25.6% / -2.66% / 3.18 / 1.00
2010-11 / 59.6% / 26.8% / 65.2% / 28.3% / 2.75 / 1.06
17 / JED / 2011-12 (Sept,11) / 56.5% / 59.9% / 70.1% / 72.5% / 0.02% / 0.82 / 0.89
2010-11 / 59.2% / 62.5% / 70.1% / 72.5% / 0.79 / 0.86
18 / DED / 2011-12 (Sept,11) / 66.6% / 52.0% / 75.2% / 55.9% / 0.85% / 1.85 / 0.80
2010-11 / 66.5% / 50.3% / 74.2% / 55.1% / 1.69 / 0.80
19 / ANED / 2011-12 (Sept,11) / 65.4% / 54.9% / 68.3% / 60.7% / 2.44% / 2.23 / 1.14
2010-11 / 66.3% / 54.5% / 71.6% / 58.2% / 2.00 / 0.98
20 / TED / 2011-12 (Sept,11) / 69.4% / 20.1% / 74.2% / 25.2% / 8.44% / 3.50 / 0.83
2010-11 / 70.0% / 18.6% / 75.5% / 16.8% / 3.30 / 0.76
CESU TOTAL / 2011-12 (Sept,11) / 50.2% / 38.3% / 56.5% / 41.8% / 0.79% / 2.45 / 1.50
2010-11 / 51.6% / 38.3% / 56.6% / 41.0% / 2.23 / 1.44

5.  Franchise Operation by the Licensee

CESU was directed to cover atleast 3,75,500 nos. consumers by end of 2011-12 vide para 642 of RST Order of FY 2011-12. Against the above target CESU has so far covered 5,10,982 nos. of consumers till 30th Sept., 2011. There are 3 nos. of input based franchisees, 16 nos. of Macro-Franchisees and 318 nos. Micro franchisees operating in the areas of CESU as shown in table below.

Franchisee Activity
As on
31.03.2010 / As on 31.03.2011 / As on 30.09.2011
No of Micro-Franchisees / 19 / 207 / 318
No of Consumers Covered / 18473 / 120826 / 192799
No of Macro-Franchisees / 5 / 14 / 16
No of Consumers Covered / 86646 / 218990 / 229836
No of Input Based-Franchisees / 1 / 3
No of Consumers Covered / 25384 / 88347
Total no of consumers covered under Franchisee / 105119 / 365200 / 510982

Performance of Micro franchisees

Ø  Average billed amount during this period : Rs.7.79 cr./month

Ø  Average collection during this period : Rs.6.34 cr./month

Ø  Overall collection efficiency: 79%

Ø  Overall billing efficiency: 34%

Ø  Overall AT&C loss: 73%

Ø  No. of consumers covered 1,92,799

In comparison to Base line figure

Ø  Collection efficiency has increased by 11% from 68% (Initial Baseline) to 79% by 30.09.2011.

Ø  AT&C loss decreased by 4% from 77% (Initial Baseline) to 73% by 30.09.2011.

Performance of Input Based Macro Franchisee

M/s Enzen Global Solutions is operating in three nos. of sub-divisions in CESU area, Jagatsinghpur, Kendrapara and Marshaghai covering 88,347 nos. of consumers. During the period under review the performance of M/s Enzen Global is found to be encouraging in Jagatsinghpur and Kendrapara and where the AT&C loss has decreased from 80% (Initial Baseline) to 70% (as on 30.09.2011) and 70% (Initial Baseline) to 64% (as on 30.09.2011) respectively. The performance of M/s Enzen Global is shown in table below:

Area of Franchisee / Comparison / LT Input (in MU) / LT Billing (in MU) / % of Billing / LT Billing in (Rs.) / LT Collection
(Rs.) / Collection efficiency against billing Amount
(in %) / AT & C Loss
(in %) / No. of consumer
JAGATSINGHPUR S/D / Baseline (Aug'09 - July10) / 7.498 / 2.696 / 36% / 71.45 / 39.25 / 55% / 80%
Performance
(Aug'10 - Nov'11) / 7.640 / 3.051 / 40% / 95.93 / 64.55 / 67% / 73% / 25645
KENDRAPADA S/D / Baseline (Nov'09 - Sep'10) / 9.581 / 3.856 / 40% / 120.89 / 90.63 / 75% / 70%
Performance
(Apr'11 - Nov'11) / 9.477 / 4.488 / 47% / 165.39 / 125.22 / 76% / 64% / 35145
MARSHAGHAI S/D / Baseline (Nov'09 - Sep'10) / 3.749 / 1.517 / 40% / 41.31 / 36.77 / 89% / 64%
Performance
(Apr'11 - Nov'11) / 4.964 / 2.050 / 41% / 58.66 / 47.66 / 81% / 66% / 26663
OVERALL / Baseline Target / 20.828 / 8.069 / 39% / 233.65 / 166.65 / 71% / 72%
Performance
(Up Nov'11) / 22.081 / 9.589 / 43% / 319.98 / 237.43 / 74% / 68% / 87453

Performance of Micro Franchisees

There are 318 nos. of micro franchisees operating in the area of CESU 192,799 nos. of consumers. The brief overall performance of micro franchisees operating in the CESU area is shown in table below:

LT Performance Parameters / NAYAGARH DIVISION / ANGUL DIVISION
FY 10-11 / FY 11-12 / FY 10-11 / FY 11-12
April to Sept / April to Sept / April to Sept / April to Sept
Input (MU) / 93.61 / 101.7 / 101.136 / 110.4
Billing (MU) / 47.34 / 51.02 / 36.34 / 38.22
Billing (Rs.Cr) / 13.18 / 14.1 / 12.63 / 13.7
Collection (Rs.Cr.) / 10.92 / 12.97 / 9.75 / 12.54
Distribution Loss (%) / 49.4% / 49.8% / 64.1% / 65.4%
Collection Efficiency (%) / 82.9% / 92.0% / 77.2% / 91.5%
AT & C Loss (%) / 58.1% / 53.9% / 72.3% / 68.3%
Per Unit Realization / 1.17 / 1.28 / 0.96 / 1.14
Benefits
Net Saving (in Rs.Cr.) / 1.11 / 1.90
AT & C Loss Reduction (%) / 4.2% / 3.9%
Meter Reading has been handed over from this year. Focus on increasing billing efficiency.

Arrear Analysis