With ongoing operationalization of Distribution Franchisee (DF), one common question that keeps hitting again and again is ‘Why need of DF? What it can do, which utility cannot or have not?’. While answer to this is pretty subjective, I would share my opinion in 3 breakups
Key issues that are affecting profitability of distribution utility
- What are key issues with Distribution Utilities?
- How that has constrained key stakeholders potentials?
Does Distribution Franchisee has solutions to above?
- Link from Measurements (MIS) to Effective Distribution Management missing
- Lack of Incentivization
- PSU Organizational Constraints
- No Investment in skill enhancement
- Low Enforcement
- Govt. hindrance & manipulation
- Low Accountancy
Key stakeholders revenue potential constrained with missing last-mile robustness
- End consumers not getting reliable, sufficient and rightly priced power
- Generators unable to get guaranteed evacuation of all generated power
- Distributors (Utilities) themselves in losses
- Power Traders do not have predictability
- Does DF has a solution to above
- Performance benchmarking through establishing baseline
- Incentives alignment of all stakeholders