Distribution and Retail Supply is the most critical link in the electricity market, which interfaces with the end-customers and provides revenue for the entire value chain. It owes to the fact of sustenance of other elements in the sector such as generation, transmission, equipment manufacturing; which depends on its operational performance and commercial viability. However, despite of its critical importance, generation segment has always been on the agenda of the government, in light of high energy deficit, necessitating need of huge capacity addition.
Lack of focus has resulted in poor operational and financial performance of the sector, thereby creating greater need of sector transformation, with high calls for private participation in terms of Private Franchising, Public-Private-Partnership (PPP) , Equipment Suppliers. As a result, tremendous opportunities lie on fore in the sector, for various stakeholders. Recent developments in the sector such as Franchisees, Smart grid, Restructured-Accelerated Power Development Reforms Programme (R-APDRP) highlights the same.
Most power distribution utilities struggle to maintain and utilize a comprehensive information system be it across their assets, commercial, customers or financials. Lack of accurate information hinders their decision making especially in arresting theft,
making investments and estimating losses, which impacts their overall performance. Consequently, both the existing and the prospective players are discouraged to invest in the distribution segment, despite availability of enormous opportunities in line with the sector poor performance.
ENINCON believes availability of key information in detail with high degree of accuracy could well be a major factor that would bridge out the gap between the potential and actual investments. With this regard, the prime objective of the fact pack is to provide macro as well as micro level of information with the perspective of key stakeholders viz. Investors, Bulk Consumers, Regulators, Equipment suppliers and Contractors. Thus, the overall scope of the fact track is to gather and present key information parameters, in form of market intelligence report.
Key queries resolved: The key queries which are addressed in this report are:
• Which distribution utility is best performing?
• What are the AT&C loss reduction trend?
• What are the investment opportunities in the sector vis-à-vis financial performance of Distribution utilities?
• What are the various regulatory and policy framework driving the growth of the sector?
• What will be the fate of distribution utilities in the near future?