Distribution Asset Failure and Impact on Consumer Tariff of Jaipur Vidyut Vitran Nigam Ltd - Case Study
Efficacy of practices followed for investment in the distribution assets and in their upkeep and maintenance has far reaching implication on the financials of the utility, resulting in tariff of the Consumers. In the present times where many of the public distribution utilities are ailing with high levels of network losses and low supply quality, it is relevant to undertake a review of the investment and management practices of distribution assets. Further, an indication of the extent of its impact on the aggregate revenue requirement of the utility and tariff will enable to quantify and appreciate the need to look critically at this issue. This, in-turn, will enable the utility in taking right kind of steps to plug associated inefficiencies thereby aiding their financial turnaround.
The distribution assets such as distribution transformers (DTs), conductors, LT panels, metering equipment’s etc., serves as key element of the power distribution network. Failure of these assets leads to:
- Failure of distribution system.
- Revenue loss due to downtime.
- Financial loss in repair and replacement.
- Failure in meeting reliability indices related to quality supply to consumers.
In this context, the International Copper Association India (ICA India) has commissioned a study to review the utility investments in distribution assets and assess the extent of impact of distribution asset failure on retail tariff of the utility.
The present study is carried out in Jaipur Vidyut Vitran Nigam Limited (JVVNL) Distribution Licensee area. JVVNL is one among the three distribution utilities in the State of Rajasthan. All the required data for the study is obtained from JVVNL and public domain.