Publication: Governance and Culture: A Utility’s Adoption of Technology to Improve its Performance and Efficiency - The Case of Tata Power Delhi Distribution Limited
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2024-04-04
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2024-04-04
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In 2002, following an elaborate privatization exercise, Tata Power Delhi Distribution Limited (Tata Power DDL) took over electricity service delivery in parts of New Delhi, India’s capital city. To cut losses by 35 percent over the coming five years and overcome several other challenges inherited from its predecessor, the Delhi Vidyut Board (DVB), the new utility needed to significantly improve operations. To meet the commitments in its winning bid, Tata Power DDL designed and executed a turnaround plan that focused on strengthening the distribution network and adopting technologies that would modernize grid management, asset management, and functions such as metering and billing. In introducing new technologies, the utility’s approach was systematic, before deploying technologies on a large scale, they were piloted in phases in order to determine whether or not the investment needed would be cost-effective and could be recovered through tariffs. If possible, research and piloting was carried out with funding from multilateral and other donors. Also, when relevant, software deployment was preceded by the re-engineering of business processes to understand which modules or functionalities would be necessary, and after the software was deployed, the provider conducted training for the utility’s staff. In addition, Tata Power DDL instilled a performance-driven culture in the company by introducing a performance management system that aligned the utility’s goals with individual staff members’ performance targets and compensation. Finally, having a well-executed public-private partnership (PPP), and the oversight of an independent regulator with clear, predictable rules concerning technology investments, facilitated Tata Power DDL’s performance and profitability improvements.
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“World Bank. 2024. Governance and Culture: A Utility’s Adoption of Technology to Improve its Performance and Efficiency - The Case of Tata Power Delhi Distribution Limited. © World Bank. http://hdl.handle.net/10986/41372 License: CC BY-NC 3.0 IGO.”
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