Established in 2003, Dakshin Gujarat Vij Company Limited (DGVCL) is one of the four state discoms in Gujarat and among the best-performing discoms in the country. Its transmission and distribution (T&D) losses stood at an impressive 4.98 per cent in 2022-23. DGVCL has consistently secured an A+ grade, reflecting its exceptional operational and financial performance. In the 11th Annual Integrated Rating and Ranking of Power Distribution Utilities report, it achieved the sixth rank (out of 51 utilities), with an A+ grade and integrated score of 93.8 out of 100.
Consumer base, sales and network growth
DGVCL’s area of operations, covering 23,307 square km, is spread across seven districts in the south Gujarat region – Bharuch, Narmada, Surat (excluding part of Surat city), Tapi, Dangs, Navsari and Valsad. The company is headquartered in Surat and functions in four circles, 19 divisions and 131 subdivisions.
DGVCL’s consumer base includes a mix of domestic, agricultural and industrial consumers. As of March 2023, the discom serves a total of 3.63 million consumers, of which 2.83 million are domestic consumers, 0.51 million are industrial consumers and 0.22 million are agricultural consumers.
In terms of energy sold, industrial consumers accounted for over 81 per cent of the energy sales in 2022-23, followed by residential consumers (13 per cent) and agricultural consumers (3.56 per cent). DGVCL’s energy sales increased by 15.7 per cent, from 24,748 million units (MUs) in 2021-22 to 28,635 MUs in 2022-23. Meanwhile, the average per unit cost of power procurement in 2022-23 was Rs 6.71.
As of March 2023, DGVCL’s distribution line length stood at 127,971 km. It comprises 54,899 km of high tension (HT) lines, 52,687 km of low tension (LT) lines, 3,564 km of underground cable and 16,821 km of LT aerial bunched cable. Over the past five years, the total distribution network line length has witnessed a compound annual growth rate of 2.08 per cent. Additionally, the discom has a total of 2,751 feeders in its network.
Operational and financial performance
DGVCL’s T&D losses have reduced from 7.7 per cent in 2017-18 to 4.98 per cent in 2022-23. Another notable achievement for the discom is its high collection efficiency, which reached 100.35 per cent in 2022-23.
Regarding the performance of reliability indices, DGVCL’s SAIFI (System Average Interruption Frequency Index) stood at 4.39 in 2022-23, which was a significant improvement over 10.1 in 2013-14. Similarly, its SAIDI (System Average Interruption Duration Index) stood at 352 minutes in 2022-23 compared to 820 minutes in 2013-14. Further, its distribution transformer (DT) failure rate decreased from 9.38 per cent in 2012-13 to 6.28 per cent in 2022-23.
In 2022-23, the discom’s total income stood at Rs 218.48 billion, a 25.59 per cent increase over the previous year. However, DGVCL registered a net profit of Rs 435.32 million in 2022-23, 54 per cent lower than that of Rs 947.39 million in 2021-22. In 2022-23, its return on equity and return on investment stood at 1.4 per cent and 0.83 per cent respectively.
Key programmes and interventions
DGVCL has undertaken a series of strategic initiatives aimed at organisational strengthening in response to power sector reforms.
One notable effort is feeder segregation through the Jyoti Gram Yojana (JGY), implemented at an investment of Rs 13 billion. Prior to its implementation, rural regions experienced challenges such as receiving 8 to 14 hours of three-phase power supply, 10 to 12 hours of single-phase supply and 4 to 5 hours of no power supply. Furthermore, there was a lack of segregation among feeders for agricultural, rural residential and industrial connections. However, the JGY ushered in a significant transformation. All rural feeders were segregated from agricultural connections, creating 242 new feeders within only 30 months. Special transformers were installed to provide single-phase power, specifically for agricultural needs. The objective of the JGY was to ensure a 24×7, three-phase power supply without load shedding to villages. The results have been outstanding, with notable improvements in the quality and reliability of power supply and a significant reduction in transformer and system failures, fostering the development of small-scale and cottage industries in rural areas.
To improve rural electrification, the company has ensured 24-hour power supply to rural areas. In terms of new/additional load connections, DGVCL has adopted fixed cost-based estimates, providing a transparent and standardised approach. It has established an in-house transformer repairing facility, leading to cost reduction and decreased average time for transformer repair.
Another initiative is the Kissan Hit Urja Shakti Yojana (KHUSHY), with a specific focus on irrigation pump sets. Under this initiative, 100,000 small-capacity transformers have been installed. The scheme prioritised the installation of smaller-sized DTs (1,016 kVA), leading to a reduction in LT lines. This reduction not only streamlines the distribution network but also minimises energy losses associated with the transmission process. Another noteworthy aspect of KHUSHY is the conversion of LT lines to HT lines.
Network strengthening, theft control and quality initiatives
High-density cross-linked polyethylene coated and aerial bunched conductor technologies have been employed to enhance the durability and efficiency of the distribution network. Old or non-working meters have been replaced with precision meters, with a focus on metering at transformer centres.
The adoption of an open ring main with switch/remote monitoring units (RMUs) is another strategic move to reduce downtime in feeders. This technology involves developing an open ring main with a primary loop through a switch/RMU, which can be linked with supervisory control and data acquisition (SCADA) systems for remote operations in the future. Moreover, the introduction of HT metering cubicles for HT consumers enables the installation of RMU and load break switches along with HT metering cubicles. This set-up ensures dual power availability through the RMU, enhancing reliability and control for HT consumers. Furthermore, the utilisation of compact substations (CSSs) and compact transformer cubicles is promoted for their convenience, safety features, low maintenance requirements and aesthetic appeal. The ground-level installation of higher-capacity transformers in CSSs not only provides a safer environment but also reduces the risk of mechanical accidents.
The company has also implemented feeder-level energy accounting and targeted vigilance drives to effectively monitor and manage energy distribution. DGVCL has taken a strict stance against power theft, imposing penalties and even imprisonment for offenders.
Billing processes have been significantly improved through 100 per cent spot billing, ensuring accuracy and promptness. Revenue collection drives and disconnection for payment defaults have been prioritised, promoting financial sustainability. Intensive vigilance efforts, including extensive installation checks by separate teams, have been implemented to curb power theft. Furthermore, DGVCL has set up special police stations to address issues related to power theft, reinforcing its commitment to maintaining law and order in the power distribution sector.
DGVCL has undertaken the Power 2.0 initiative to enhance customer satisfaction through reliable power and quality services, employing a range of innovative strategies. The implementation of GeoUrja, an in-house asset mapping software, has enabled the tagging of feeders, HT and LT lines, transformers and consumers with geotags. Integrated with the outage management system, it facilitates real-time updates on power shutdowns by sending messages to consumers.
A centralised processing centre has been introduced, which is a mandatory online portal for applications with fixed prepaid charges, redesigned application forms and a simplified documentation process, reducing the overall standard operating procedure (SOP) time for new connections. The HT connection gateway implements a per kVA-based fixed cost for new HT connections, streamlining the application process through a centralised HT cell, further reducing SOP time.
As a leading renewables state, Gujarat’s state discoms are promoting open access. Open access regulations enable consumers with capacities exceeding 1 MW to procure power independently. Gujarat has successfully exchanged a substantial 1,300 MW of power through open access, comprising 850 MW from wind and 450 MW from solar sources. The Surya Urja Rooftop Yojana-Gujarat (SURYA-Gujarat) is another pioneering initiative. The scheme caters to both individual residential consumers and common facility connections of group housing societies and resident welfare associations. This funding mechanism is structured to encourage solar adoption, offering subsidies from the Gujarat government and the Government of India. Residential connections will receive a 40 per cent subsidy for the first 3 kW and a 20 per cent subsidy for capacities above 3 kW and up to 10 kW. Common facility connections for group housing societies and resident welfare associations with up to 500 kW will receive a 20 per cent subsidy. The Gujarat government supports the initiative through a dedicated corpus fund. The tariff structure incorporates net metering, allowing surplus power to be purchased at Rs 2.25 per kWh with set-offs at the end of the billing cycle. Notably, Gujarat has achieved remarkable success in solar rooftop installations, securing the top position in the country. As of July 2023, the state contributes 81 per cent to India’s total solar rooftop installations, amounting to 1,710 MW in the residential sector, as reported by the Ministry of New and Renewable Energy.
The way ahead
DGVCL is focusing on providing reliable power and quality services. As part of the central government’s Revamped Distribution Sector Scheme, DGVCL has initiated the installation of smart meters on government connections and has placed orders for 1.69 million meters for consumer installations, along with 82,336 DT meters. Installation is expected to begin by January 2024. Simultaneously, distribution infrastructure works are under way, with an allocated budget of Rs 14.84 billion, aimed at loss reduction. This includes the replacement of bare conductors with modern aerial bunched cables, underground cable installations and the integration of SCADA systems. With existing orders and work in progress, DGVCL aims to achieve a capex of Rs 5 billion by March 2024.
Overall, DGVCL’s commitment to innovation is evident through strategic interventions such as the JGY, KHUSHY and SURYA-Gujarat, promoting reliability, safety and green energy. By embracing modern technologies such as smart metering and SCADA, DGVCL is poised for a future of sustainable and customer-centric power distribution utility.