Revenue- Linked Supply Scheme (RLSS) Sarur Chaudhary, JPAL SA Robin Burgess, LSE and IGC Michael Greenstone, UChicago and IGC Nicholas Ryan, Yale and IGC Anant Sudarshan, UChicago 01 November, 2014 BSPHCL Founda9on Day
Reducing distribu9on losses will help to provide more electricity to consumers Transmission and Distribution (T&D) Losses and Power Supply 60% 2,400 T&D Losses (%) 55% 50% 45% 40% 35% 30% 25% 20% Steady losses 1422 1536 1800 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 Power Supply (MW) 15% 600 10% 400 5% 200 0% 0 Source: BERC, BSPHCL Financial Year
Bihar discoms have done upgrades to allow targe9ng of losses 1. Technical upgrades Transformer maintenance (>95% reduc,on in burnt DTs) Grid metering 2. Data accuracy improvements Feeder- level consumer mapping DT- level consumer mapping
Losses come more from certain areas than others Revenue Rate : A measure of payments received as a percentage of cost of total electricity supply Areas not paying their bills Areas paying all their bills
Areas with high payment not being awarded with high supply Feeder: Mela PSS: Sonpur District: Chapra Feeder: Basahi PSS: Lahlladpur District: Chapra
Why low supply for high payment? Revenue Rate Average District PSS Name Feeder Name (%) Supply (hrs) Chapra Lahlladpur Basahi 95% 12 hrs हम समय पर अपन ब ल क प र भ गत न और अपन तरफ स क श श करत ह क द र न ह इस आश म आप र त क स थ त ब हतर ह ज एग - Raja Kumar Lakesaripur Gaon, Katya Panchayat, Lahlladpur Block, Chapra`
Summary of RLSS scheme: You get what you pay for Group Rural Feeder AllocaLon Revenue Rate (%) Hours / Day 1 0-10 6 2 10-20 8 3 20-30 10 4 30-40 12 5 > 40 14 Urban/Mixed Feeder AllocaLon Revenue Rate Hours / Group (%) Day 1 0-15 12 2 15-30 15 3 30-45 18 4 45-60 21 5 > 60 24 Benefits of the scheme: I. Reward beyer paying areas with more supply II. Provide an incen9ve to increase payment rates III. Reduce u9lity losses
Scheme Piloted in Chapra and Siwan PILOT PHASE: JAN 2014 - FEB 2014 ObjecLve: To test feasibility of implementa9on on a small scale for a short 9me Champaran W Gopalganj Siwan Champaran E Sheohar Muzaffarpur Sitamarhi Darbhanga Madhubani Supaul Araria Kishanganj Total Feeders: 85 Feeders with data: 39 Kaimur Buxar Rohtas Ara Saran Jehanabad Vaishali Patna Nalanda Samastipur Begusarai Lakhisarai Shekhpura Saharsa Madhepura Khagaria Bhagalpur Munger Purnea Katihar Aurangabad Gaya Nawada Jamui Banka Feeders were randomly assigned to two groups: Ø Treatment : Supply based on revenue performance Ø Control : Supply is uniform Random assignment ensures we can be certain impact is due to the scheme only
Revenue improves dras9cally in a short period Treatment feeders show increase of Rs. 1.01 on base of Rs. 0.95 within just two months 1.20 Revenue Rate (Rs/kWh) Change + 1.01 0.80 0.40 0.00-0.40-0.02 Control Treatment
Maharashtra DCL scheme: Large drop in load- shedding within 2 years Ø MSEDCL suggests DCL scheme successful in increasing payment and consequently increasing supply LOAD- SHEDDING FREE FEEDERS Courtesy: MSEDCL
Scale up to 8 Districts star9ng October 20 th 1. Chapra 2. Siwan 3. Purnea 4. Ka9har 5. Darbhanga 6. Patna (Rural) 7. Ara (Bhojpur) 8. Buxar
Scheme has many benefits for discom opera9ons seen by early 2015 NOV 2014 Benefits of close scrulny DEC 2014 Benefits of Consumer InteracLon MAR 2015 Medium- term revenue growth JUN 2015 Medium- term supply increase JUL SEP 2015 Benefit of measuring impact Close Monitoring of Electricity Supply Compliance Report Increased Consumer Awareness & Feedback Bills, Mobile- marke9ng & Consumer helplines Improvement in Revenue performance Consequent Increase in electricity supply Measuring benefits of the scheme Survey of 18,000 respondents