JVVNL

Grappling with high AT&C losses

Jaipur Vidyut Vitran Nigam Limited (JVVNL) was incorporated in 2000 (along with four other successor companies) following the unbundling of the erstwhile Rajasthan State Electricity Board. The company is involved in the distribution of electricity in 12 districts of Rajasthan – Jaipur, Dausa, Alwar, Bharatpur, Dholpur, Kota, Bundi, Baran, Jhalawar, Sawai Madhopur, Tonk and Karauli.

The distribution system inherited by JVVNL post the unbundling came with several issues such as inadequate network planning, frequent breakdowns, theft and ageing infrastructure, resulting in high aggregate technical and commercial (AT&C) losses and unreliable power supply. However, the company has since adopted several measures to improve the distribution system. It has made significant progress under schemes like the Ujwal Discom Assurance Yojana, Restructured Accelerated Power Development and Reforms Programme (R-APDRP), Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and the Integrated Power Development Scheme (IPDS).

Distribution network and consumer base

JVVNL’s distribution infrastructure includes 207,977 ckt. km of distribution lines at the 11 kV, 33 kV, and low tension (LT) levels and 589,182 substations at the 33 kV and 11 kV levels, aggregating a transformer capacity of 22,013 MVA, as of March 2016. Of the total distribution line length, around 51 per cent is at the 11 kV level, 42 per cent is at the LT level and 7 per cent is at the 33 kV level.

Between 2011-12 and 2015-16, the distribution network decreased at a compound annual growth rate (CAGR) of 3.1 per cent, mainly due to a negative CAGR of 9.3 per cent reported at the LT level. However, the distribution network at the 11 kV and 33 kV levels increased at a CAGR of 2.8 per cent and 5.8 per cent respectively during the same period.

Meanwhile, of the discom’s total transformer capacity, around 63 per cent is at the 11 kV level and the remaining 37 per cent is at the 33 kV level. Compared to 2014-15, its transformer capacity increased by 5 per cent in 2015-16 and  grew at a CAGR of 9.2 per cent during the period 2011-12 to 2015-16. JVVNL owns and operates 589,182 substations, an increase of 53,869 substations over the previous year. Of these, around 99.7 per cent are at the 11 kV level and only 0.3 per cent are at the 33 kV level.

As of February 2016, JVVNL’s consumer base stood at 3.9 million. Around 76.9 per cent of the consumers came under the domestic category, followed by agricultural consumers (11.7 per cent), commercial consumers (9.1 per cent), industrial consumers (2 per cent) and others (0.3 per cent).

Operational performance

JVVNL recorded an increase in its AT&C loss levels from 22.67 per cent in 2010-11 to 32.02 per cent in 2014-15. It sold 17,494 MUs of energy to all categories of consumers during 2014-15.

The company has taken various measures to bring down its AT&C loss levels, including the implementation of supervisory control and data acquisition (SCADA) systems at 55 substations at the 33 kV level in Jaipur to enable integrated distribution automation and real-time monitoring of the distribution system. This has helped improve operational efficiency and reduce distribution losses. For theft prevention, JVVNL has replaced the existing overhead LT lines with three-phase and single-phase armoured cable to feed single/three-phase load. At present, the company is installing capacitors, gradually upgrading the primary distribution voltage from 11 kV to 33 kV and reorganising the network to bring down its distribution losses.

During 2014-15, JVVNL recorded a strong performance, surpassing its distribution infrastructure targets. A total of 76 new substations with an aggregate capacity of 254 MVA were commissioned at the 33 kV level in 2014-15 and the capacity of the existing substations was expanded to 249 MVA. Meanwhile, around 408,652 single-phase defective meters and 82,219 polyphase defective meters were replaced. In addition, around 587 km of 33 kV line length was added during the year, and 176,635 domestic and 18,460 non-domestic connections were released.

To further augment its distribution infrastructure, the company has undertaken several new technology initiatives such as automated meter reading, enterprise resource planning, feeder level energy audits and distribution transformer (DT) metering. For efficient customer service management, JVVNL has adopted measures such as total revenue management with spot billing; customer management for fault rectification, billing, new connections and meter-related problems; on-demand meter testing; and faster grievance redressal.

Key ongoing projects

JVVNL is executing various projects and programmes for augmenting its distribution infrastructure and improving its operational performance. Some of the key projects are as follows.

Feeder and substation improvement programme: JVVNL is undertaking the feeder and substation improvement programme to reduce the failure rate of DTs as well as power theft and interruptions in 11 kV feeders, thereby improving the quality of supply. The main activities under the feeder improvement programme are replacement of equipment such as damaged conductors, aerial bunched cables, three-phase and single-phase transformers, and defective meters. Meanwhile, the substation improvement programme involves the installation of circuit breakers, feeder meters, roster switches, etc.

R-APDRP: JVVNL is implementing the R-APDRP in two parts. The major activities under R-APDRP Part A are the use of IT for establishing baseline data; forecasting and auditing of electricity consumption; consumer indexing; geographic information system mapping; metering of DTs and feeders; automated data logging of SCADA on DTs and feeders; and mapping of the equipment installed on distribution systems, 11 kV transformers, LT line feeders and poles. Under Part A, the Power Finance Corporation has sanctioned Rs 538.5 million for Jaipur and

Rs 223 million for Kota for SCADA implementation works. As of May 2016, 166 subdivisions of Jaipur have been shifted to the centralised billing system and the remaining 21 will be shifted by June 2016. SCADA works have been completed and are at the testing stage. Under Part B, the major works include the relaying of LT lines and 11 kV lines on 11 kV substations and transformer load centres; load redistribution; feeder separation; load balancing; laying of aerial bunched cables; establishment of a high voltage distribution system; replacement of electromagnetic meters with tamper-proof electronic meters; installation of capacitor banks; setting up of mobile service centres; and renovation and modernisation of 11 kV substations. Under Part B, a total of Rs 4.65 billion has been sanctioned for 22 towns under the jurisdiction of JVVNL.

RGGVY: Under the RGGVY, which aims to provide electricity to rural families, the central government sanctioned Rs 4.5 billion to the company in 2014-15. Of this, Rs 3.67 billion has been granted across 14 schemes.

DDUGJY and IPDS: Under the DDUGJY, 12 JVVNL projects worth Rs 10.27 billion were sanctioned during 2014-15. Meanwhile, under the IPDS, JVVNL received in-principle approval for Rs 4.94 billion. For both the schemes, JVVNL has invited bids seeking contractors for projects and the bid process is expected to be completed by June 2016.

Domestic Efficient Lighting Programme: Under this programme, JVVNL distributed LED bulbs as a demand side management activity through Energy Efficiency Services Limited. As of March 2016, the company has distributed 4.84 million LED bulbs, which will result in savings of around 138 MUs per year.

Financials

During 2014-15, JVVNL’s total revenue stood at Rs 109.54 billion and its net losses at Rs 47.34 billion. While the company’s total revenue recorded an increase of around 25 per cent in 2014-15 over the previous year, the net losses declined by 14 per cent. JVVNL’s debt-equity ratio has declined steadily during the period 2010-15.

Future plans

To augment its distribution infrastructure, the company is planning to increase its distribution line network and transformer capacity in the coming years. Between 2015-16 and 2018-19, the company aims to increase its distribution line length to 213,784 ckt. km, with the maximum increase at the 11 kV level. In addition, it is planning to augment its transformer capacity to 28,813 MVA with an 86 per cent increase at the 11 kV level and a 14 per cent increase at the 33 kV level. To achieve this target, the company will undertake a capital expenditure of Rs 59.82 billion during the period 2015-20. Going forward, JVVNL needs to step up its efforts to bring down its AT&C losses, which are above the national R-APDRP target of 15 per cent.

Based on inputs from JVVNL

 

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