In an interview with Power Line, Praveen Verma, Chief Executive Officer, TP Western Odisha Distribution Limited (TPWODL) – a joint venture between Tata Power and the Government of Odisha – discussed the company’s key achievements, network strengthening and digitalisation initiatives, plans for smart metering and advanced distribution management, key challenges facing the distribution sector, and its priorities for the next five years. Edited excerpts…
What have been TPWODL’s noteworthy achievements over the past three to four years?
Since commencing operations in 2021, TPWODL has focused on four key priorities: improving reliability of power supply, reducing aggregate technical and commercial (AT&C) losses, developing human capital, and strengthening customer centricity.
In rural areas, where households earlier received 12-18 hours of supply depending on the location, availability has increased to 21-24 hours. In cities, supply availability is now more than 23 hours. The utility has also improved its reliability indices, with the system average interruption duration index improving by around 40 per cent and system average interruption frequency index by around 60 per cent over the past four to five years.
AT&C losses have also declined significantly, from 29.67 per cent when TPWODL began operations to 14.59 per cent in five years. This reduction has been supported by improvements in billing, collection and revenue-cycle processes, greater use of technology and community engagement.
The utility has also invested significantly in network modernisation. The grid has been made supervisory control and data acquisition (SCADA)-ready, substations have been automated, geographic information system (GIS) has been implemented, and technologies such as auto reclosers, sectionalisers and fault passage indicators have been deployed. TPWODL has also moved towards scientific network planning and N-1 redundancy in urban areas. On the customer service side, the utility has introduced multiple channels, including customer care centres, missed call services, WhatsApp and online platforms. Billing accuracy has improved from around 52 per cent actual reading bills at the beginning of operations to more than 96 per cent at present.
What are TPWODL’s other key focus areas for the next four to five years and how do you plan to achieve these goals?
The focus for the next five years is to move from the turnaround phase towards a higher level of operational and customer service performance. One of the key goals is to reduce AT&C losses from around 14.6 per cent to 8 per cent. On customer service, TPWODL aims to increase its customer satisfaction index from 86 per cent to 96 per cent. In cities, the objective is to ensure minimal disruption in supply, while in rural areas the target is to increase supply availability from around 22 hours to more than 23 hours.
Employee engagement is another focus area. The utility currently has an employee engagement score of around 70 and aims to take this beyond 90. It also intends to expand the reach of its CSR initiatives from around 600,000 beneficiaries annually to 1,500,000 beneficiaries. Sustainability will also remain an important area. Under the PM Surya Ghar and PM-KUSUM schemes, TPWODL has more than 50,000 installations and is targeting 100,000 installations during the year, followed by around 200,000 rooftop installations annually.
Technology will play a central role in improving network visibility and reliability. TPWODL is planning to implement an advanced distribution management system (ADMS), which will integrate smart meters, GIS, enterprise resource planning (ERP) and call centre systems. TPWODL is encouraging customers to use digital billing, understand their consumption patterns and avail of available rebates and schemes.
What progress has been made under the RDSS, particularly in smart metering and network strengthening?
As a public-private partnership utility, TPWODL is not eligible for funding under the RDSS, which is applicable to government utilities. However, the utility has continued to invest in smart metering and network strengthening through its own resources and other funding sources.
Around 950,000 smart meters have been installed against a live customer base of approximately 2,200,000, with the objective of converting all meters into smart meters by 2030.
TPWODL has invested around Rs 21 billion in capital expenditure over the past five years, while the Odisha government has provided around Rs 12 billion through grants under different schemes. The combined investment of approximately Rs 33 billion has supported 33/11 kV substations, 33 kV lines, refurbishment of substations, transformers, low tension lines and automation.
What are the key challenges in the power distribution segment?
Electricity theft and non-payment remain important challenges. Another major challenge is the increasing penetration of renewable energy. Traditionally, the electricity network operated largely in one direction, from generation to transmission, distribution and consumers. With distributed renewable generation, the network is increasingly becoming bidirectional. This makes network planning more complex. Utilities need to understand where generation and consumption are located, how much electricity customers may consume and produce, and how the network needs to operate under changing conditions. Integrating increasing amounts of renewable energy while maintaining power quality will therefore be a significant challenge.
Safety is another concern, particularly because reverse power flows can create new risks for frontline workers. At the same time, customer expectations are continuously increasing, requiring utilities to keep raising their service standards.
What are TPWODL’s capex plans for the next three years and the main areas of expenditure?
TPWODL has planned a capex of close to Rs 20 billion for the next three to four years. Technology is one of the key areas of investment, along with smart metering and ADMS.
The utility also plans to strengthen grid substations and 11 kV lines, and convert bare conductors into covered conductors. Underground cabling is not considered feasible across the region because of the extensive geographical spread of the network and the very high investment requirement.
What new technologies have you adopted or are planning to deploy?
TPWODL has already deployed GIS, SCADA, distribution automation, numerical relays, upgraded switchgear, LTE protection systems and drone technology. The next stage is to integrate these systems and use them to make the network more proactive.
ADMS is one of the key planned technologies. It will integrate smart metering, GIS, ERP and customer service systems to provide greater visibility of the distribution network and enable proactive outage communication.
The utility is also implementing dynamic QR codes below meters. Customers can scan the code to access their latest bills and make payments. Its in-house application enables customers to view consumption behaviour and identify opportunities for conservation. TPWODL is also exploring multi-relay meters to provide greater flexibility in managing loads during network stress.
Electric vehicles (EV) charging infrastructure is being implemented in collaboration with Tata Power and Tata Motors. In the longer term, TPWODL is exploring the possibility of using energy stored in EVs to support the grid during periods of adversity. Field force automation is another area, with plans for automated despatch of the nearest available crew in response to customer complaints.
How have people in Odisha benefited, directly or indirectly, from Tata Power’s takeover of the distribution business?
The most direct benefit has been the improvement in electricity availability and reliability. Rural households that earlier received 12-18 hours of supply are now receiving around 21-24 hours, while urban areas have more than 23 hours of supply.
TPWODL, through its prudent management practices, has ensured that there has been no adverse impact on the tariff over the last five years despite increases in power purchase cost and capital infusion.
Customers have also benefited from improved billing accuracy, digital payment options and multiple channels for accessing utility services. Actual reading billing has increased from around 52 per cent to more than 96 per cent. Customers can receive bills digitally and access rebates for timely and digital payments.
The benefits extend to rural communities through initiatives in education, employability, vocational training, adult literacy and agriculture. TPWODL has worked with farmers to promote alternate wetting and drying practices in paddy cultivation, helping conserve water and reduce methane emissions. The state of Odisha is already rich of natural resources. The availability of reliable and affordable power will act as a catalyst for enhanced economic growth of the state.
What is the outlook for Odisha’s distribution sector?
The outlook is positive, particularly with industrialisation progressing rapidly across the state.
The distribution sector has already seen a shift in customer expectations. When TPWODL began operations, customers were sceptical whether private participation would result in sustained investment and service improvement. Over time, improved supply reliability, network investment and customer services have helped build greater confidence.
Going forward, for TPWODL, the focus will remain on improving reliability, reducing losses, strengthening infrastructure, deploying digital technologies and building stronger relationships with customers and communities.
