It is the Project which show how IT has improved the power Distribution in BSES

1. INFORMATION TECHNOLOGY IMPLEMENTATION IN INDIAN POWER DISTRIBUTION
COMPANY: BSES (BOMBAY SUB-URBAN ELECTRICITY SUPPLY COMPANY), DELHI
SUBMITTED TO
Submitted By
Dhrubaji Mandal
Professor - Mahadeo Jaiswal
Information Management (MDI)
Chairperson - Process Renovation Project

2. ACKNOWLEDGEMENT
The satisfaction, which accompanies the successful completion of the project, is incomplete without the
mention of a few names. We take this opportunity to acknowledge the efforts of all those who have been
a helping hand in completing this project.
We would like to express our heartfelt appreciation and gratitude to our project head Mr.PANKAJ
GANHOTRA, Assistant Manager IT BSES .This project is a result of his teaching, encouragement and
inputs in the numerous meetings he had with me, despite his busy schedule. He made sure that my stay in
the office was a learning experience.
I would also like to thank Prof. Shri Mahadeo Jaiswal. Professor, Information Management,
Chairperson - Process Renovation Projects at MDI for his constant support, continued encouragement
guidance and indescribable help throughout this project.
Nevertheless with all due regards and respect to the contributions made by various persons at each
stage of the project, we take this as an opportunity to thank all those who have been instrumental in
completion of project “Information Technology Implementation in Indian Power Distribution –BSES”.
Finally, we would like to thank Our Institute, Management Development Institute for making this
experience to work on this project. The learning from this experience has been immense and would be
cherished throughout our life.

3. PREFACE
This project is a scientific and systematic study of real issues on a problem with the Electric power
distribution system. Electric power utilities worldwide are increasingly adopting the computer aided
monitoring, control and management of electric power distribution system to provide better services to
electric consumers.
Therefore, research and development activities worldwide are being carried out to automate the electric
power distribution system utilizing recent advancement in the area of IT and data communication system.
At present, power utilities have realized the need for full scale distribution automation to achieve on-line
system information and remote control system. The main motivation for accepting the distribution
automation in developing countries such as India is to improve operating efficiency of distribution
system.
The main idea behind this project is to find business for IT implementation and automation in the field of
power distribution. The study can deal with small or big issues in any division of an organization. It can
be case study where a problem has been dealt with, through the process of management. The essential
equipment of a project is that, it should contain scientific collection of data, analysis and interpretation of
data leading to a valid conclusion.
Working on Project is an essential part in MIBA curriculum. It enables the student to share the real
experience in the corporate world. Our Project is Regarding the Information Technology Implementation
in Indian Power Distribution -BSES
We hope this study will contribute to the organization.

4. INDEX
Serial
Number
Content
1
RESEARCH METHODOLOGY
2
Introduction
3
AT&C (Aggregate Technical and Commercial) loss
4
AT&C (Aggregate Technical and Commercial) loss and Recovery
5
Need of IT and ERP Implementation IN BSES
6
Information Technology Roadmap
7
Challenges in implementing IT & ERP solutions
8
State of Information Technology in BSES
9
IT STRATEGY AND PLANS
10
INTEGRATED BILLING SYSTEM FOR LARGE C&I CUSTOMERS
11
Meter Reading System
a.Touch based AMR
b.Wireless Technologies
12
Other IT enabled Practices at BSES
13
ENTERPRISE RESOURCE PLANNING
14
System Analysis and Program Development (SAP –AG)
15
Objectives for ERP Implementation
16
Implementation Benefits of ERP
17
Conclusions and lessons learned
18
References

5. RESEARCH METHODOLOGY
The research work carried out for this project was more of descriptive in nature. Since this
project is a study project, hence in this project the major task was collection of data, and
analyzing this data and also studying impact of Information Technology in Distribution Sector.
Collecting Voice
Of customer
Understanding
Current Status
•Study & Analysis of IT
Implementation of Discoms
•Search for Data Available
•Visit to Discoms to Get Their
Real Working
•Proper Sorting And
Alignment of Appropriate
Data
•Study Of Present Structure
Of IT Implementation
•Comprehensive Analysis Of
IT Implementation Issues In
Discoms
•Analysis Of Development &
Gap Analysis
WAY FORWARD
Operating Issues
•Analyses Areas of Weakness
•Analyses The Areas Of Strength
And Improvement
•Suggest Improvement Areas
And Perimeters

6. Introduction
BSES Power Limited came into existence in the year 2002, with the task of providing reliable & quality
electricity supply to the consumers of South & West Delhi. Panning a geographical area of 950 sq. km, it
is the largest electrical licensee in the national capital, catering to over 3.20 million consumers.
For greater reach and easy serviceability, the company serves its customer base through four circles,
further subdivided into 19 divisions. Each of the Divisions is led by an empowered group of officials.
Since most of the venues for the 19th Commonwealth Games were in the licensed area of BSES Rajdhani
Power Limited (BRPL), the company along with BSES Yamuna Power Limited (BYPL) played its role
with great confidence in such demanding situation of power distribution
AT&C (Aggregate Technical and Commercial) loss
AT&C loss should be calculated by subtracting the energy realised from the energy input, where energy
realised should be equal to the product of energy billed and collection efficiency
High technical losses in the system are primarily due to inadequate system improvement, which has
resulted in unplanned extensions of the distribution lines, overloading of the system elements like
transformers and conductors, and lack of adequate reactive power support.
The commercial losses are mainly due to low metering efficiency, theft & pilferages. This may be
eliminated by improving metering efficiency, proper energy accounting & auditing and improved billing
& collection efficiency. Fixing of accountability of the personnel / feeder managers may help
considerably in reduction of AT&C loss.
AT&C (Aggregate Technical and Commercial) loss and Recovery
Due to lack of adequate System the losses in the system in 2002-03 were in the range of 63.16%
which has been now brought down to sub 19.8 levels in 2011

7. AT&C (Aggregate Technical and Commercial) loss and Recovery
This achievement is unparalleled till date. This has been made possible by optimal planning of
the network along with the state‐of‐the‐art technologies and use of best operational
Practices by the trained, skillful and motivated manpower.

8. Need of IT and ERP Implementation IN BSES
For a very long time, the supply of power to Delhi was a government undertaking but after
decades of losses, in 2002, the state government decided to reduce its hold and unbundle what
was then called the Delhi Vidyut Board
BSES bid to take over the Board and about nine months later, Reliance Power bought over
BSES. That left Delhi’s power distribution in the hands of a public private partnership between
Reliance and the Delhi government.
After The Undertaking and after such losses of AT & C another problem biggest challenge was
to corporatize the creaking government enterprise as Ad-hoc business processes were the norm
and were shaped by the person currently in authority
Even after heavily subsidized power costs the utility failed to make any money because corrupt
employees—with dishonest consumers—tampered with power meters, the rampant power theft.
K.B. Singh, VP-I.T., BSES, introduced IT-driven measures to an ailing power utility Business
process improvements, Turning the Delhi-based BSES into a modern, profit-making utility and
creating a single-window business platform called the Customer Application System (CAS)
Information Technology Roadmap
It is essential to clarify that IT is not the panacea to all proble
It rather plays the role of an enabler providing strategic
support
IT would enable sustainable changes in the
Operations increasing controls at a transaction level,
Improving the efficiency of the operations and increasing
Transparency across the organization
IT would enable the creation of reliable data
at the grassroots level.
This information would then flow to the managerial level for
tactical decisions and further up to the strategic level..This
would facilitate the change of culture towards informationbased decisions sought by the reforms process.
Benefits of Information Flow across the Organization

9. Challenges in implementing IT & ERP solutions
Though it is not completely a technical job, a lot of planning and proper communication is very
much essential to implement IT & ERP across the organization some of which are
•
It is very important, that implementation is done in stages. Trying to implement
everything at once will lead to lot of confusion and chaos.
•
Appropriate training is very essential during and after the implementation. The staff
should be comfortable in using the application or else, it will backfire, with redundant
work and functional inefficiencies.
•
Lack of proper analysis of requirements will lead to non-availability of certain essential
functionalities. This might affect the operations in the long run and reduce the
productivity and profitability.
•
Lack of Support from Senior Management will lead to unnecessary frustrations in work
place. Also, it will cause delay in operations and ineffective decisions. So, it is essential
to ensure that the Senior Management supports the transformation.
•
Compatibility Issues with ERP Modules lead to issues in integration of modules.
Companies associate different vendors to implement different ERP modules, based on
their competency. It is very essential that there is a way to handle compatibility issues
•
Cost Overheads will result, if requirements are not properly discussed and decided during the
planning phase. So, before execution, a detailed plan with a complete breakdown of requirements
was to be worked out.
•
Investment in Infrastructure is very essential. ERP applications modules will require good
processing speed and adequate storage. Not allocating suitable budget for infrastructure will
result in reduced application speed and other software issues. Hardware and Software Security is
also equally important.
•
It was a transformational time On the technology front, he was creating a database of 17 lakh
consumers from scratch, which needed to be cleansed and modeled without halting
•
However K.B. Singh, VP-IT at BSES, recalling the big business process improvements he and his
team drove in 2003
•
As the project progressed, Accenture was roped in. Based on the data the team analyzed, they
found real instances of meter tampering, multiple meters being used on a single power line
•
Cost Overheads will result, if requirements are not properly discussed and decided during
the planning phase. So, before execution, a detailed plan with a complete breakdown of
requirements should be worked out

10. State of Information Technology in BSES
Needed to revamp processes to create an efficient organization, build a roadmap that aligned business and
IT, orient a large and diverse work force to be more productive, centralize the control of all applications,
and improve customer care services. The mission was to achieve self-sufficiency by reducing losses
• After an exhaustive study of the existing state Singh crafted a broad roadmap for process improvements
• Much-needed, basic IT foundation was being laid
• BSES customers were segmented into four categories.
• Different teams were allotted to these segments and were tasked with collating and auditing the data
needed for BSES to gain visibility into its consumer base
• For this CAS app was being implemented and other business critical apps—on multiple platforms—
were being integrated on single client-server architecture
• While all business centers were connected to the core datacenter, various technical components to
ensure connectivity, the consistent flow of information, strengthened security, and data mining were put
in place. An Oracle database was deployed to support the CAS. This was further integrated with
A call center, payment counters and gateways
IT STRATEGY AND PLANS
A structured and comprehensive IT strategy and
plan will help the distribution utilities to derive the
benefits from information technology
• Application architecture
• Data architecture
• Infrastructure requirements – hardware and
network
• IT organization, processes, policies and standards
• List of business–IT initiatives or projects and
implementation plan for the applications to be used
by the organization over a period of time
• Investment requirements and their Phasing

11. The IT applications have been divided into the following four categories:
• Prerequisites – To be established first to allow implementation of subsequent IT applications
• Short-term – Quick wins
• Medium-term – High return
• Advanced applications
Advanced applications
The advanced applications can be built only after establishing a strong foundation in the preceding phases
E-business solutions such as customer self-service and e-procurement require the CIS, SCM (Supply
Chain Management), etc.

12. INTEGRATED BILLING SYSTEM FOR LARGE C&I CUSTOMERS
The objective is to integrate meter reading, billing, payment and collection for (commercial and
industrial) C&I customers to eliminate scope for tampering and manipulation and thus improve collection
Old Billing System – Before Integration
INTEGRATED BILLING SYSTEM
After Integration meter reading, billing, payment and collection for (commercial and industrial) customers
who contribute approx. 70 %, increased dramatically
After the meter is connected/energized a K. No. is allotted based on the location and a nearby consumer
number? This determines a consumer’s Cycle Number and Book Number. Based on Cycle Number,
readings are taken by BSES Meter
Reader every month or bimonthly. After readings are taken and verified, the data is sent to company’s
Computer Division for generation of the bill. The divisional office then distributes the printed bills
through Bill Distributor.

13. Meter Reading System
1. Touch based AMR
2. Wireless Technologies
-GSM Technology
-CDMA Technology
Touch Based AMR
With touch based AMR, a meter reader carries a handheld computer or data collection device
The device automatically collects the readings from a meter by touching or placing it near meter
When a button is pressed, the probe sends an interrogate signal to the touch module to collect the meter
reading The software in the device matches the serial number to one in the route database, and saves the
meter reading for later download to a billing or data collection computer
Since the meter reader still has to go to the site of the meter, this is sometimes referred to as "on-site"
AMR
Wireless Technologies for Meter Reading
The wireless meter reading technologies are generally based on radio frequencies. The readings can be
monitored on real time basis. Popular technologies in this category includes GSM / GPRS based and
CDMA based technologies.
1. GSM Based Technology
2. CDMA Based Technology

14. GSM and CDMA Based Technology
GSM : Global System of Mobile Communication
CDMA : Code Division Multiple access
With Wireless based Automatic meter reading
technology ,
Automatically collected data from energy meter are
transferred to a central database for billing and / or
analyzing.
The Transmitter circuit is connected to the meter
which counts the Pulses from it and displays it over
the LCD (Liquid crystal display) display.
Collection System
BSES for timely collection has made life Easy of Consumer by help of IT, providing different facilities
Now at BSES they have a number of collection systems available for the ease of consumers
1. Direct Payment through Web, (Net Banking)
2. Check by Post
Even Bill and Payment details are available through SMS. All you have to do is:
Type BSES <SPACE> BILL <SPACE> CRN Number and SMS to 5-54-54-64

15. Other IT enabled Practices at BSES
No Supply Complaint Registration through
SMS Retrieval of Billing/Payment details
through SMS
Complaint Registration on IVRS
(Interactive Voice Response System)
through auto recognition of telephone
number
Auto call routing from the IVRS to the
Customer service representative in case
CRN (Customer Reference Number)/CA
number is not punched by the customer
Priority Queue on the IVRS for Fire/Shock
related calls Estimated wait time and Queue
Number announcement on IVRS Auto
recognition of VIP customers on IVRS &
priority service to VIP customers
ENTERPRISE RESOURCE PLANNING
Enterprise resource planning (ERP) systems integrate
internal and external management information across an
entire organization, embracing finance/accounting,
manufacturing, sales and service, customer relationship
management, etc.
ERP systems automate this activity with an integrated
software application. The purpose of ERP is to facilitate
the flow of information between all
business functions inside the boundaries of the
organization and manage the connections to outside
stakeholders.ERP systems can run on a variety of
computer hardware and network configurations, typically
employing a database as a repository for information
The transformation of ERP into a cloud-based model has
been going on but Is relatively slow

16. System Analysis and Program Development (SAP –AG)
Global Leaders in providing ERP solutions are SAP AG,
Oracle & Microsoft. All the utilities we surveyed were
utilizing SAP AG solutions in their businesses
SAP AG is a German multinational software corporation
that makes enterprise software to manage business
operations and customer relations
SAP is the leader in the market of enterprise applications
in terms of software and software-related service The
company's best-known software products are its
enterprise resource planning application systems and
management
Objectives for ERP Implementation
The prime Objective of the Distribution Company
(DISCOM) for adopting ERP solutions were
• Process Improvement
• Efficiency improvement
• Cost Reduction and better Customer
Services.
• Centralization
• Data Security

17. Implementation Benefits of ERP
Complete meter records and data are now maintained centrally in SAP
• Automatic calculation of charges, Interest, Taxes & posting to Finance General Ledger
• Scope of manual error and inconsistent data processing decreased through system validations
• Maintenance notification provides the details like complaints created, complaints resolved, and
duration Of breakdown etc.
• Task list and Maintenance plan helps to create preventive maintenance schedule and that can be
Monitored online
• Cases of wrong calculations of bill payments in legacy system have been detected by ERP system
Thereby causing significant economic benefits
• Since 2002 over 1.7 lakh cases of power theft booked
• Over 10.51 lakh KW of power theft load unearthed
• Brings enhanced transparency in the process flow
• The automatic payment process leads to predefined system driven approach
• Availability of desired information to top management in time

18. Conclusions and lessons learned
Electric power distribution system is an important part of electrical power systems in delivery of
electricity to consumers. Electric power utilities worldwide are increasingly adopting the computer aided
monitoring, control and management of electric power distribution system to provide better services to
their consumers. Therefore, research and development activities worldwide are being carried out to
automate the electric power distribution system utilizing recent advancement in the area of IT
(Information Technology) and data communication & control system
It has been observed by the IT Task Force that the approach of the various distribution utilities towards
IT has been piecemeal with standalone applications deployed for a limited operational requirement. In
other words, IT has been used as a tool to address a specific issue or two at a time and not as a longterm, holistic strategy.
While Indian IT sector has helped numerous organizations around the globe derive substantial benefits
from application of IT, there is plenty of room for IT application within the power sector in India. There is
a need to look at the global practices in IT adoption in the power sector so that India can benefit from it.
The IT task force is of the view that the gap in IT adoption globally and in the Indian power sector is
apparent and glaring and even the rate of overall technology adoption in India is on the lower side.
Globally IT is being used to enable operations at a transaction level thus providing advantages like inbuilt process controls, workflow enabled transactions, single point of data capture and support for
timely strategic decision making.
On the other hand, in India, the core operations are still manual and therefore face issues like ad-hoc
decision making, poor data quality, long decision making cycles and underutilization of IT investments. In
order to reap the benefits of IT, the wide gap between India and global best has to be bridged.
References:
1. www.bsesdelhi.com/
2. indianpowersector.com/home/2011/06/it-in-power-sector/‎
3. The Hindu News Paper
4. BSES Employee