Strategic Interventions for a Customer-driven Distribution Utility

EXECUTIVE SUMMARY
The Electricity Act has given way for introduction of competition in the retail markets in many forms a licensee developing parallel distribution infrastructure in an area, customers having a choice in selection of their distributors under open access provisions etc. This in turn requires distribution utility processes to undergo major changes to evolve as a more customer friendly organisation. And the business model would also have to change from being an asset and engineering intensive business to a commercially driven customer oriented businesses which derive their value from their ability to attract and retain customers. In order to achieve tangible improvements in the customer service, it is essential to identify the typical steps that each customer will go through, which can be termed as customer life cycle management process. The process starts with a new customer seeking service. The next step is service provision, which includes the basic service of providing reliable and quality power at affordable tariffs to meet the demand, and the various ancillary services such as fault repairs, changes in connected load, connection shifting etc. along with the value added services such as cost reduction through DSM, energy audit services etc. For this a proactive approach by the utility is important.

The next part of lifecycle covers the charges for the services given and the collection of dues. This forms the most critical area of reforms and major

Strategic Interventions for a Customer-driven Distribution Utility dissatisfaction arouses out of this reason. Any inefficiency in the billing and collection processes results in swift exit of customers. Relationships in electricity business, not being time bound; so it is necessarily required that instead of transactional relationship with the customers, the utilities focus on process approach such as process reorientation towards customer satisfaction identifying the touch points with customers. simplified entry procedures advance planning of networks to ease subscription to consumers use of integrated IT & MIS in improving customer relationships electronic presentation, payment and reminder of bills, billing and payment history, online resolution of simple bill disputes, online fault booking etc. value addition by providing ancillary services innovative and customer friendly measures call centres, drop boxes at their convenience The project aims to bring forth such areas in which strategic actions when taken can lead a utility to empower its customers and thus enhance its own value

Customer Issues The concept of customer service is almost non-existent in most distribution companies. In fact, there is a lack of a formal organization construct, unlike say

Strategic Interventions for a Customer-driven Distribution Utility the telecom industry, to address customer needs. This means that customers need to interact with multiple entities for any service request. The result is that customers frequently face long delays in resolving technical and commercial complaints, encounter uncooperative attitude of staff and need to make unofficial payments to resolve their issues. Major issues by which a customer is not satisfied with the service of utility are: Poor availability and quality of power Multiple contact points Tedious processes and bribery Limited payment modes Poor customer service

A survey was done amongst domestic consumers to reveal the level of satisfaction they have from the distribution utility processes, procedures and service standards which revealed the following facts: There is no provision to regularly monitor whether the time limits are adhered to or not in case of non conformance to standards. Reporting mechanisms are not strictly followed Analysis of the survey's results clearly reflected the dissatisfaction, and wide gap between expectations and services delivered.

Strategic Interventions for a Customer-driven Distribution Utility

To the consumer the two most important aspects that emerged were grievance handling and metering and billing.

Based on the above observations, following recommendations were made Frequent interaction with the consumer forums must be done by the distribution utility to yield areas of customer dissatisfaction and to act upon such issues so as to increase overall effectiveness of the utility. Distribution utilities in the state must arrange wider publicity to Complaint Handling Procedure, drawing the attention of the consumers. Procedures to be adopted for the complaints regarding interruption or failure of power supply, voltage complaints, load shedding, scheduled outages, problems in metering and billing, disconnection and reconnection of power supply, delay in providing new connections must be provided by the utility through any means like print advertising, direct mail, sales literature, public relations, utilities website, etc. All the distribution utilities must define Customer Service Standards consisting of: Overall Standards, i.e. the ability to restore supply after a failure of the distribution system, management of voltage complaints, actual meter reading, billing and response to customers petitions; and Guaranteed Standards, involving the supply quality, time to connect new customers, time to respond to customers requests and compliance to the service conditions, and reconnection of supply in case of having 4

Strategic Interventions for a Customer-driven Distribution Utility been disconnected. For the guaranteed standards, penalization in terms of fine can be established. The utilities will have to compensate affected customers in case the guaranteed standards cannot be met. There is a need to streamline the grievance redressal procedure, as a consumer usually has to approach to various levels within a utility. Thus, the process of grievance redressal is time consuming and cumbersome Updation of customer information system with databases of customers, regular updates of mapping system so that all of the customer's account information is available when a customer calls in to 24-hour call center. Another area which needs improvement is metering systems. Automated meter reading system or AMR must be introduced in phases. This system will automatically read meters so the utilities don't have to send their employees into the customers' homes and backyards. Automated meter reading will improve the quality of meter reading, help the utilities gain operational efficiencies, and provide customers with timely energy information. Work management system of the utility must be made effective. This system helps manage work at a company level. It gives a high-level view of workload and helps offices communicate effectively to ensure that the utility meets the customers' needs. Customer Relationship management systems must be designed in such a way that employees get information about customers' accounts when they are out in the field meeting with customers.

Strategic Interventions for a Customer-driven Distribution Utility

A step further in customer services area can be achieved by the utility by centralizing a number of their field functions. This doesnt mean closing field offices, but rather shifting the emphasis from addressing walk-in customers' needs to more of an operationally focused field office.

Bill payment systems can be extended to forms like on-line payments, payments directly from customers' bank accounts, or payment at pay stations, etc.

Creation of an on-line access for the larger customers to provide them with energy information tailored to their business environment can also be a way to enhance customer service.

Strategic Interventions for a Customer-driven Distribution Utility

INDEX
1. 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2. Introduction Objective Significance of the Problem Review of the Literature Conceptualization Operationalisation of the Concept Focus of the study Limitations Research Methodology 2.1 Research Design 2.2 2.3 2.4 2.5 3. 4. 5. 6. 7. Universe and Survey Population Sample Size and Technique Data Collection Data Analysis Strategic Interventions for Distribution Utility Statistical Analysis Summary Recommendations Conclusion 22 23 24 25 27 28 48 56 57 60 1 5 6 8 13 14 20 21

Annexure-I Annexure- II Bibliography 7

Strategic Interventions for a Customer-driven Distribution Utility

1.

INTRODUCTION

The distribution system in India is often characterised by inefficiency, low productivity, frequent interruption in supply and poor voltage. Evidently, some fundamental changes are imperative in the working of the power sector entities to realise the vision of reliable, affordable and quality power for all by 2012. The reform process is in progress in several states under the overall guidance of MoP. It is aimed at bringing about sustainable improvements in the operations of the utilities and making them viable businesses. The reforms have brought about various improvements in operational structure, commercial orientation, transparency in operation and overall customer orientation in several states. However, there has been limited success in institutionalising these changes and sustaining these improvements over a period of time. Therefore, the need of the hour is to institutionalise the changes and bring about sustainable, pervasive improvements.

WHO IS A CUSTOMER ? A customer is the most important visitor in our premises. He is not dependent on us. We are dependent on him. He is not an interruption on our work. He is the purpose of it. He is not an outsider on our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so. -Mahatma Gandhi

Strategic Interventions for a Customer-driven Distribution Utility

Most people in business serve three kinds of customers Final customers- People who will use your product or service in daily life and, you hope, will be delighted. Theyre also known as end users. Intermediate customers- These are often distributors or dealers who make your products and services available to the final customer. Internal customers- People within your organization who take your work after youve finished with it and carry out the next function on the way toward serving the intermediate and final customers. CUSTOMER DRIVEN ENTERPRISE A customer driven enterprise constantly challenges itself to answer four questions:

1. What are our customers needs and expectations, and which of these needs and expectations matter most to them? 2. How well are we meeting those needs and expectations? 3. How well are our competitors meeting them? 4. How can we go beyond the minimum that will satisfy our customers, to truly delight them? Ways to become a customer driven organisation Ask the customers how well you are currently serving them? Give them a chance to tell you

Strategic Interventions for a Customer-driven Distribution Utility what they want, where youre failing, where youre succeeding The companies that do so consistently and act upon their findings reap massive benefits.

Because quality of service is hard to quantify, companies often fail to learn their customers opinions about it. But a good guide is a structure described in five dimensions which can be summarized with the acronym RATER: Reliability: the ability to provide what was promised, dependably and accurately

Assurance: the knowledge and courtesy of employees, and their ability to convey trust and confidence

Tangibles: the physical facilities and equipment, and the appearance of personnel

Empathy: the degree of caring and individual attention provided to customers

Responsiveness: the willingness to help customers and provide prompt service

Customer driven organization means moving FROM TO

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Strategic Interventions for a Customer-driven Distribution Utility

motivation through fear and loyalty an attitude that says its their problem the way weve always done it

motivation through shared vision ownership of every problem that affects the customer continuous improvement

making decisions based on assumptions doing it with data and fact-based and judgment calls decisions everything begins and ends with management everything begins and ends with customers

functional stovepipes where department cross-functional cooperation base decisions solely on their own criteria being good at crisis management and recovery depending on heroics a choice between participative or scientific management doing it right the first time driving variability out of the process participative and scientific management

Building a customer-driven organization involves focusing on some key dimensions like: Information Technology End-to-end processes Behaviour Resources Orgnanisation structure

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Strategic Interventions for a Customer-driven Distribution Utility

1.1

OBJECTIVE

Since the passage of Electricity Act 2003, developments in the power sector have gained momentum. The most important and the irreversible change is the shift from the monopoly business to the competition, with the utilities gearing up to transform through internal reforms and restructuring. In this new environment, only the customer orientation and service quality offered by the utility would decide the eventual winner, i.e. the future of a successful electricity business would be based on ownership of customer rather than ownership of assets. This project aims to bring forth customer service strategies to be undertaken by the distribution utilities (put forward as a result of survey conducted amongst domestic customers) so as to evolve successfully into a business where customer is the sole arbitrator of performance.

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Strategic Interventions for a Customer-driven Distribution Utility

1.2

SIGNIFICANCE

Customers in a distribution utility are faced with problems of quality and reliability of service, power outages, billing and collection inefficiencies, improper remittance handling measures, etc. There is an inherent gap in the customer expectations of the service and the service actually delivered to him (as depicted by the figure on next page). To bridge this gap, utilities need to focus on various areas leading to customer satisfaction because it is the customer base, and the customer service and retention measures of the utility which will be of prime importance in near future of competitive electricity markets and these will help decide the utilitys future performance.

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Strategic Interventions for a Customer-driven Distribution Utility

GAP Consumer Expectations Management Perceptions of Consumer Expectation

Management Perceptions of Consumer Expectations

Intended Level of Service Quality

Intended Level of Service Quality

Service quality level experienced by consumers

Service quality level experienced by consumers

What is communicated about the service to consumers

Consumer expectations

Consumer Perceptions of Service Delivery

Principal Disparities Affecting Service Quality

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Strategic Interventions for a Customer-driven Distribution Utility

1.3

REVIEW OF THE LITERATURE

Excerpts from the Electricity Act, 2003 The Act specifies certain obligations for the distribution licensee or the utility towards customers Duties of distribution licensee 42. (5) Every distribution licensee shall, within six months from the appointed date or date of grant of licence, whichever is earlier, establish a forum for redressal of grievances of the consumers in accordance with the guidelines as may be specified by the State Commission. (6) Any consumer, who is aggrieved by non-redressal of his grievances under sub-section (5), may make a representation for the redressal of his grievance to an authority to be known as Ombudsman to be appointed or designated by the State Commission. (7) The Ombudsman shall settle the grievance of the consumer within such time and in such manner as may be specified by the State Commission. Duty to supply on request 43. (1) Every distribution licensee, shall, on an application by the owner or occupier of any premises, give supply of electricity to such premises, within one month after receipt of the application requiring such supply Provided that where such supply requires extension of distribution mains, or commissioning of new sub-stations, the distribution licensee shall supply the electricity to such premises immediately after such 15

Strategic Interventions for a Customer-driven Distribution Utility extension or commissioning or within such period as may be specified by the Appropriate Commission. (3) If a distribution licensee fails to supply the electricity within the period specified in sub-section (1), he shall be liable to a penalty which may extend to one thousand rupees for each day of default. The Electricity Supply Code 50. The State Commission shall specify an Electricity Supply Code to provide for recovery of electricity charges, intervals for billing of electricity charges disconnection of supply of electricity for nonpayment thereof; restoration of supply of electricity; tampering, distress or damage to electrical plant, electric linesor meter, entry of distribution licensee or any person acting on his behalf for disconnecting supply and removing the meter; entry for replacing, altering or maintaining electric lines or electrical plant or meter. Consumer protection: Standards of performance 57. (1) The Appropriate Commission may, after consultation with the licensees and persons likely to be affected, specify standards of performance of a licensee or a class of licensees. (2) If a licensee fails to meet the standards specified under subsection (1), without prejudice to any penalty which may be imposed or prosecution be initiated, he shall be liable to pay such compensation to

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Strategic Interventions for a Customer-driven Distribution Utility the person affected as may be determined by the Appropriate Commission Provided that before determination of compensation, the concerned licensee shall be given a reasonable opportunity of being heard. (3) The compensation determined under sub-section (2) shall be paid by the concerned licensee within ninety days of such determination.

Different Standards of performance by licensee 58. The Appropriate Commission may specify different standards under subsection (1) of section 57 for a class or classes of licensee.

Information with respect to levels of performance 59. (1) Every licensee shall, within the period specified by the Appropriate Commission, furnish to the Commission the following information, namely:(a) the level of performance achieved under sub-section (1) of the section 57; (b) the number of cases in which compensation was made under subsection (2) of section 57 and the aggregate amount of the compensation. (2) The Appropriate Commission shall at least once in every year arrange for the publication, in such form and manner as it considers appropriate, of such of the information furnished to it under sub-section (1). 17

Strategic Interventions for a Customer-driven Distribution Utility Quality of service: role of regulators The ERC (Electricity Regulatory Commission) Act 1998 enjoins upon the central electricity regulator to seek advice from the central advisory committee on "matters relating to quality, continuity, and extent of service provided by the licensee;.energy supply and overall standards of performance by utilities". The OER (Orissa Electricity Reform) Act 1995 mandates the regulator to "regulate the purchase, distribution, supply and utilization of electricity, the quality of service,.". Similar provision exists in the Acts setting up regulatory authorities in Karnataka, Gujarat, UP, and AP. Some regulators have also taken certain initiatives to address issues of quality for improvement of customer service. In Orissa, the electricity regulator through its Distribution (conditions of supply) Code 1998, has set the service standards required to be provided to consumers by a distribution utility. These standards are backed up by provisions for imposition of penalties for violations, and penalties prescribed are very high. There are also procedures for grievance redressal by the utility and by OERC (Electricity Regulatory Commission). Similarly, overall performance standards have also been set for distribution and retail supply: for example, distribution companies have to bring down voltage variations within declared limits within fifteen working days of complaint in 60 percent of cases. Standards of service in Orissa Sl.No. Type of service 1. Low voltage Time limit for rendering the service 15 days in case of local problems and 6 months

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Strategic Interventions for a Customer-driven Distribution Utility

requiring augmentation of distribution system 2. Restoration following interruption/failure of power supply 24 hrs. in all cases except in case of major failures involving transformers and 11 KV feeders including its terminal equipments, where it shall not exceed a maximum of 7 days

3.

Duration of load shedding or Prevent such recurrence within 72 hrs. of scheduled shutdown exceeding 12 complaint hrs./day or continuing for more than 6 consecutive days Metering problems a) Meter supplied by Licensee Defect rectified within 30 days and if meter needs replacement the said replacement has to be made within 30 working days from the date of removal of the meter Engineer required to advise the consumer suitably for testing/repair/replacement within 7 working days of noticing the defect Meter testing, if so desired by the consumer in Licences testing laboratory, is to be done within 15 days of deposit of fees by the consumer Engineer will install correct meter within 14 days of handing over of the said meter by the consumer 60 days 30 days

4.

b) Meter supplied by Consumer

5. 6.

Billing errors Disconnection and reconnection of power supply

Though we see quality of service provided by the distribution utility is laid prime importance by the government and the regulators, and many states have taken initiatives in this direction also, yet there is scope for improvement.

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Strategic Interventions for a Customer-driven Distribution Utility

1.4

CONCEPTUALISATION

Utilities, for the most part, are still monopolies, albeit regulated. Distribution utilities have a 'captured' base of customers or consumers. Today customer care is a primary focus of most utilities. All utilities are looking for ways to touch their customers. Various kinds of customer satisfaction surveys are being conducted by the utilities to find the overall satisfaction of the customers from the utilities services. But, we must realize that the 80-20 rule applies here too. Eighty percent of the efforts in the customer care/customer service area are for 20 percent of the customers. And, this may even be stretching it. Utilities and municipalities who have attempted to measure these activities report that it may be fewer than 20 percent of our customers who generate over 80 percent of our customer care work. It is important that utilities continue to provide excellent customer service to rest 80 percent group because, if they do become unhappy, even if they cannot necessarily leave the utility and select another service provider, they can easily join and ultimately increase the size of that 20 percent group, resulting in either a lower level of customer service to this group, or increasing the utilities costs of serving them. Either way it is something the utility does not want. Another very important, and many times missed aspect, is to consider the other group of customers who are the utilities internal customers. A utility has to integrate its functions to work efficiently as a tool for the customer service organization and back-office organizations like billing, collections, cashiering, etc.

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Strategic Interventions for a Customer-driven Distribution Utility

1.5

OPERATIONALISATION OF THE CONCEPT

OWNERSHIP OF CUSTOMERS The electricity business is evolving from a monopoly to a competitive market and the utilities are gearing up to face the challenge through internal reforms and restructuring. Though this is certainly a step in the right direction, in this new environment, only the customer orientation and service quality offered by the utility would decide the eventual winner. The future mantra of a successful electricity business would be the ownership of customer rather than ownership of assets. New order in distribution

Developments in the power sector have gathered momentum since the passage of Electricity Act, 2003. Some major shifts in the external environment of the distribution companies have already manifested, the most important change being the irreversible move from being a monopoly business to a competitive market.

The Electricity Act has already created an enabling environment for competition in bulk and retail power markets. Retail competition can now take many forms- a parallel licensee with his own distribution infrastructure, or a consumer/ retailer leveraging existing distribution assets under the open access provisions, or a consumer setting up a captive power station without accessing a distribution network at all. In each case, the customer will be able to choose his power

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Strategic Interventions for a Customer-driven Distribution Utility supplier rather than being compelled to buy power from the distribution licensee in his area.

The inevitability of competition is now evident from the fact that various state electricity regulatory commissions (SERCs) have already issued draft guidelines for distribution-level open access. What this means for the incumbent utilities is the emergence of a new order where the customer will be the sole arbitrator of performance. Emerging business value drivers With the changing environment, the processes in the retail selling side of electricity distribution companies would undergo a major transformation. The business model itself would change from being an asset- and engineeringintensive business to a customer oriented and commercially driven business. Though this may be new to the electricity distribution business- monopolies have always experienced shifts in their value drivers when their industry has opened up to competition. Monopolies derive value from their asset base- in the case of distribution companies, this would mean infrastructure such as substations, lines, geographic reach etc. However, competitive businesses derive value from their ability to attract and retain customers. It is therefore not difficult to see that the transformations required in the business are so far-reaching that they would affect the core of the distribution business.

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Strategic Interventions for a Customer-driven Distribution Utility Many reforming SEBs (and their newly created avatars- the unbundled distribution companies) have started recognizing this change and a few have also taken the first steps towards creating organizations that are customer friendly. Customer life-cycle management process In order to achieve tangible improvements in customer service, it is essential to identify the typical steps that each customer will go through, which can be termed as the customers life cycle with the organization. In electricity distribution customer relationships are not time bound and hence, should not be seen with a transactional approach but with a process approach. The typical process starts with a new customer seeking service, wither by seeking a new connection or by transfer of an existing connection to a new person. The next step is service provision, which encompasses the basic service of providing reliable and quality power at affordable tariffs to meet the demand. Along with this, utilities could also provide various ancillary services such as fault repairs, changes in connected load, connection shifting, name changes etc. as well as value-added services such as assistance in cost reduction by demand-side management, energy audit services etc. The next part of the life cycle covers the charges for services provided and collection of dues. This is often the most critical area identified for reform, with the maximum potential for causing customer dissatisfaction. It has been observed that a lacuna in billing and collection processes results in the swift exit of customers.

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Strategic Interventions for a Customer-driven Distribution Utility

Process reorientation towards customer satisfaction- the real challenge The best way to start improving customer processes is to identify the key touchpoints with customers. These are the key interfaces with the customers, such as a customer coming to obtain a new connection, sending bills to customers, receiving customer complaints, receiving payments from customers, etc. Improvements in touch-points should be the first items on the agenda and each one should be reviewed to make them simple, efficient and customer friendly. Often, in this process, utilities will fine-tune processes and get the additional benefit of saving their own time and costs. Simplified entry procedures The entry process for new customers assures prime importance in a competitive environment, as customers tend to give a lot of weightage to the ease with which they can subscribe to the services. Towards this goal, utilities need to make it easy and convenient for customers to apply for new connections. In addition, the company should also carry out advance planning of networks for reducing service commencement time. Framework to improve customer touch-points- use of information technology The companies would need to reorient the nature of management information systems, and consequently, the use of information technology (IT) to improve customer connectivity. An essential element in the customer-oriented approach is the deployment of various IT systems to provide data to customers in a friendly manner. It is important to provide facilities such as electronic presentation and

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Strategic Interventions for a Customer-driven Distribution Utility payment of bills, billing and payment history, online resolution of simple bill disputes such as arithmetical errors, online fault booking, etc. Value addition by providing ancillary services Offering ancillary services would leverage the technical expertise of the utility ina manner that would bring advantage to both the utility and the customer. For instance, by proper demand-side management it may be possible for the utilities to flatten its load curve and would lead to savings by the customer. Providing subsidized categories of customers with upgrades to more energy efficient technologies to control their drawals is another example of such a win-win situation. Customer retention- innovative efforts Many utilities have started the process of building on various customer-friendly measures with the objective to retain valuable customers by offering them maximum convenience. A number of utilities have created call centers to create a central point to receive customer complaints. A few have even centralized all customer interaction by creating kiosks that handles all the activities, such as obtaining new connections, excess billing complaints, etc. Some have started providing bills to customers in the language of their choice, which also provide a basic idea of consumption based on hours of usage of typical household gadgets. Andhra Pradesh has introduced a bill presentation and payment system called eseva. This acts as a concentration point providing citizens access to bills and

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Strategic Interventions for a Customer-driven Distribution Utility forms from various government departments, including the distribution companies. The infrastructure created for this purpose allows for online payment of electricity bills in addition to payment at any one of the e-seva kiosks, member bank ATMs, drop boxes etc. The increased convenience in bill payment leads to lower default rates. The Gold Card scheme that was in practice in Karnataka is also a good example of a customer outreach initiative. The scheme was designed to provide its large customers with express privileges. Clear and transparent eligibility criteria were developed considering past payment, annual consumption etc. Efforts were made to provide quality services to these gold customers and ensure that they are retained through a continuous feedback mechanism to identify and redress their problems on a priority basis. Though the scheme is not in operation today, it was quite popular and demonstrated an effective way of reaching out to the most critical customers and ensuring their satisfaction.

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Strategic Interventions for a Customer-driven Distribution Utility

1.5

FOCUS OF THE STUDY

A monopolistic environment causes organizations to lose their customer focus. However, the monopolies in the electricity distribution business have realized that their sector is on the cusp of a competitive era where empowered customers will be calling the shots. And like many other sectors, the winner in the new era will be the entity that owns the maximum number of customers and not necessarily the assets.

The main objective of this project is to obtain an overview of the customer focus strategies of the distribution utility and to analyze the areas for improvement. This is because for a utility, customer is regarded as a king.

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Strategic Interventions for a Customer-driven Distribution Utility

1.6

LIMITATIONS

The conceptualization of a competitive era in which customer is the main focus of the utility will actually take some time to evolve in Indian distribution sector, though to some extent, it is underway.

This report does not analyze the companys perspective, i.e. means to stop power thefts, AT&C loss reduction etc. which are the main reasons for poor quality of service to customers.

Time constraint and sample size can be considered other limitations of this project. However a fairly good sample has been analyzed within prescribed time limits.

The cost perspective for improving customer service strategies both at utilities and the consumers end have not been analyzed in great details.

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Strategic Interventions for a Customer-driven Distribution Utility

2.
2.1

RESEARCH METHODOLOGY
RESEARCH DESIGN

The research design is the conceptual structure within which research is conducted; it constitutes the blue print for the collection, measurement and analysis of data. As such the design includes an outline of what the researcher will do from writing the hypothesis and its operational implications to the final analysis of data. This research deals with the customer service strategies to evolve successfully in this competitive era. The basic purpose of the research is to see the customer services strategies in the current scenario and suggest areas of intervention (from the consumers perspective) for the same to improve the current shape. This is an analytical kind of research study. Analytical research studies are those studies, which are concerned with analyzing the characteristics of a particular individual, or of a group after discussion with the individual/group. Here I have obtained the primary data from the respondents in the form of a questionnaire and then analyzed and interpreted the same as per my perceptions to reveal the status of customer satisfaction in a distribution utility.

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Strategic Interventions for a Customer-driven Distribution Utility 2.2 UNIVERSE AND SURVEY POPULATION

All items in any field of inquiry constitute a universe or population. A complete enumeration of all the items in the population is known as a census inquiry. It can be presumed that in such an inquiry, when all items are covered, no element of chance is left and the highest accuracy is obtained. But in practice this may not be true. The universe in this case includes all the customers External customers or end-users: domestic, industrial, commercial, temporary Internal customers

Due to limited time it was difficult to cover the entire universe. In this research only the analysis for the external customers has been done, that too under the category of domestic.

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Strategic Interventions for a Customer-driven Distribution Utility 2.3 SAMPLE SIZE AND TECHNIQUE

As stated above, due to the considerations of time and cost almost invariably lead to a selection of respondents i.e., selection of only a few items. The respondents selected should be as representative of the total population as possible in order to produce a miniature cross-section. The selected respondents constitute what is typically called a sample and the selection process is called sampling technique. The survey so conducted is known as sample survey. For the study, we use area-sampling technique. In area sampling the total population is divided into a number of relatively small subdivisions which are themselves clusters of still smaller units and then some of these clusters are geographically selected for inclusion in the overall sample. In other words, cluster designs, where the primary sampling unit represents a cluster of units based on geographic area, are distinguished as area sampling. Sample size: I have collected in total 25 samples. Technique: Random Sampling

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Strategic Interventions for a Customer-driven Distribution Utility 2.4 DATA COLLECTION

The task of data collection begins after a research problem has been defined and research design/plan chalked out. Data can be categorized into two types of data viz., primary and secondary.

Primary data are those, which are collected afresh and for the first time, and thus happen to be original in character. Common ways of collection of such data, depending on the need of the research are: Consumer / Customer Telephone Interviews Executive Telephone Interviews Focus Groups In-depth One-on-One Interviews Intercepts Mail Surveys Mini Groups Panel Research Email Surveys Internet Research Usability Tests

Secondary data are those which have already been collected by someone else and which have already been passed through the statistical process. The researcher would have to decide which sort of data he would be using (thus collecting) for

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Strategic Interventions for a Customer-driven Distribution Utility his study and accordingly he will have to select one or the other method of data collection. COLLECTION OF PRIMARY DATA We collect primary data during the course of doing experiments in an experimental research but in case we do research of the descriptive type as is our case, then we can obtain primary data either through observation or through direct communication with respondents in one form or another or through personal interviews (unstructured). For this project report, data was collected through questionnaires and interviews. The questionnaire and the name of persons with their age groups and profile have been attached as Annexure-I & II. COLLECTION OF SECONDARY DATA When the researcher utilizes secondary data, then he has to look into various sources from where he can obtain them. In this case secondary data from the documents and survey reports has been utilized.

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Strategic Interventions for a Customer-driven Distribution Utility 2.5 DATA ANALYSIS

The data, after collection, has to be processed and analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan. This is essential for a scientific study and for ensuring that we have all relevant data for making contemplated comparisons and analysis.

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Strategic Interventions for a Customer-driven Distribution Utility

3.

STRATEGIC INTERVENTIONS FOR A CUSTOMER DRIVEN DISTRIBUTION UTILITY

The utility industry has been on a roller coaster ride for much of the past few years. Caught in the midst of aging infrastructure, higher than ever demand, and the need to cut costs, increase operational efficiency, and return value and dividends; the utility enterprise must continue to focus on delivering the highest quality of service and care to its customers.

The utility customer service imperative is simple and straightforward. Utilities must provide reliable, affordable electric power to customers while also communicating, billing, and collecting payment from customers in a courteous, efficient, and proactive manner. Although this customer service imperative is simply stated, in the world of utility operations this easy to state mission entails complex business processes and creates multiple challenges for utility management, staff, and information technology (IT) systems.

For many years, distribution utilities have been devising new information technology strategies and spending millions on computer systems, software, and business design to streamline operations, drive down internal costs, and create new revenue opportunities. While there are many success stories and many more lessons learned from across the industry, the majority of utilities are still not fully customer service focused organizations despite their best efforts to improve customer service, many utilities still see it as a business function rather than a core business process. Truth be told, the distribution utilities still needs to understand

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Strategic Interventions for a Customer-driven Distribution Utility that customer information and customer care are among the most important functions of the utility enterprise and that customer information systems (CIS) and customer care (often called Customer Relationship Management or CRM) really do have bearing on every aspect of utility operations and utility planning and decision making.

Over the past decade, utilities have invested substantial resources in CIS, CRM, and other customer care systems and architecture. However, the distribution utilities are only now beginning to realize that effective and efficient customer service rests not only on hardware but on selection and deployment of customer care applications (software) and customer service optimized business processes. This same hardware- or systems-centric mode of investment has created an environment in which many utilities possess a critical mass of customer care technology, yet they are not realizing the level of cost savings, efficiency, or customer satisfaction expected after making investments in CIS and customer care infrastructure. This has led some utilities to the erroneous conclusion that customer information and customer care systems are not worth the large investment, and therefore, should not remain a high priority in the enterprise. On the contrary, all indications are that customer service and customer care must be the top priority in the utility enterprise. Common Areas of Investigation for Utility Organizations: 1. Customer Satisfaction Analysis 2. Awareness and Satisfaction Toward Services Offered

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Strategic Interventions for a Customer-driven Distribution Utility 3. Perceptions Towards Core Services 4. Perceptions Toward Conservation Issues 5. Perceptions Toward the Utility 6. Commercial Customer Perceptions and Issues 7. Consumer Customer Demographic Analysis 8. Communications / Advertising Issues 9. Community Involvement Issues 10. Pricing / Billing Issues 11. Budget Billing 12. Power Outage Issues (Electrical Utilities) CUSTOMER ISSUES The concept of customer service is almost non-existent in most distribution companies. In fact, there is a lack of a formal organization construct, unlike say the telecom industry, to address customer needs. This means that customers need to interact with multiple entities for any service request. The result is that customers frequently face long delays in resolving technical and commercial complaints, encounter uncooperative attitude of staff and need to make unofficial payments to resolve their issues. Major issues by which a customer is not satisfied with the service of utility are: Poor availability and quality of power Multiple contact points Tedious processes and bribery

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Strategic Interventions for a Customer-driven Distribution Utility

Limited payment modes Poor customer service

Challenges before a utility to improve their performance and enhance customer satisfaction are in the following areas Information Technology End-to-end processes Behaviour Resources Orgnanisation structure

WHAT DOES THE CUSTOMER WANT? The key needs of the customer are depicted in the figure below. These need to be the focus of the IT applications.

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Strategic Interventions for a Customer-driven Distribution Utility

The focus of IT applications for customer benefit The service levels to customers in the areas mentioned in the above figure could be improved by monitoring the following parameters:

Quality and reliability of supply Scheduled and unscheduled outages Communication from SEBs on possible outages and outage time

Accuracy of bills Inaccurate meter reading or no meter reading Meter reading taken but not reported No posting of collection Changed meter status Wrong calculation

Payment mechanisms

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Strategic Interventions for a Customer-driven Distribution Utility

Bill not delivered in time to make payment Waiting time for bill payment Preferred vs. available mode of payments

Complaint handling Demand vs. provision of new connections Responsiveness to bill queries Preferred vs. available facilities to log complaints

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Strategic Interventions for a Customer-driven Distribution Utility 3.1 ROLE OF INFORMATION/COMMUNICATION IN CUSTOMER SERVICE

It is important to make the contact that customers have with their utility company - previously more of a bureaucratic nature - as attractive and as simple as possible. The basis for this contact consists of efficient front-office functions in the utility company's customer information system, which provides the customer with a onestop service facility and enable the utility company to apply the "one-face-to-thecustomer" principle. Call center solutions can further increase the efficiency this brings. The ultimate in customer focus can be achieved if customers are also able to use their private Internet connection to accomplish service transactions and make requests quickly and effortlessly, at the same time having access to useful information about other services provided by their utility company.

Information to the customers from the utility can pass through following means Dissemination of press releases, articles or special reports Production of short documentaries on the distribution utilities of the state to be broadcast on TV and radio programs. Posters/ Slogans/ Phrases to be hanged/ pasted in the utilities offices Disseminating the information of planned outage through rickshaws/ jeeps etc. running in all localities to be affected by the outage. How information flow in the utility help it in achieving customer service

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Strategic Interventions for a Customer-driven Distribution Utility

Benefits of Information Flow across the Organisation

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Strategic Interventions for a Customer-driven Distribution Utility 3.2 ROLE OF TECHNOLOGY IN CUSTOMER SERVICE

Technology Issues Most distribution companies despite having to process large volumes of data are sub-optimally supported by IT systems and automation. Use of electronic meters and data loggers/ handhelds is rare. Most IT systems are homegrown packages that lack integration, parameterization and robustness. Hardware and IT security prevent issues on data integrity.

Benefits of improvement in IT technologies can enhance utilities value also. For example, the South African power distribution utility has converted a majority of its low value consumers to prepaid metering. This move has reduced their administrative costs and also dramatically reduced the collusion between meter readers and consumers at prepaid locations.

The gap in IT adoption globally and in the Indian power sector is apparent and glaring and even the rate of overall technology adoption in India is on the lower side. Globally IT is being used to enable operations at a transaction level thus providing advantages like in-built process controls, workflow enabled transactions, single point of data capture and support for timely strategic decision making. On the other hand, in India, the core operations are still manual and therefore face issues like adhoc decision making, poor data quality, long decision making cycles and under utilisation of IT investments. In order to reap the benefits of IT, the wide gap between India and global best has to be bridged. How IT can help distribution utility to cater customer services

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Strategic Interventions for a Customer-driven Distribution Utility

Benefits of IT applications to customers

Customer benefitIT applications The implementation of IT initiatives, though not an easy task, will result in improvement in reliability and quality of supply, increased productivity, reduced technical and commercial losses, customer satisfaction and a fundamental change in the work culture. The computerised system will revolutionise the way that utilities conduct their business by reducing operating cost, improving customer service and increasing employee efficiency.

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Strategic Interventions for a Customer-driven Distribution Utility 3.3 PERFORMANCE OF END-TO-END PROCESSES TO ENHANCE CUSTOMER SATISFACTION

The ultimate in customer focus can be achieved if customers are able to use their private Internet connection to accomplish business transactions and make requests quickly and effortlessly, at the same time having access to useful information about other services provided by their utility company.

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Strategic Interventions for a Customer-driven Distribution Utility 3.4 ENHANCING EFFECTIVENESS OF DISTRIBUTION COMPANIES THROUGH HRD

Customer care and service must be an inherent part of the value-added chain of the utility. Management Issues These issues become even more complicated and challenging because of the management style and work culture prevalent in these organisations. There is a complete lack of accountability and while the technical skill-set available is adequate, the availability of commercial skills and business acumen is inadequate. As a result, focus on commercial issues and performance, which is critical to shoring up the financial parameters is inadequate. Over manning and lack of cost control also have contributed to creating unsustainable cost structures. Any attempt to tighten up operations, is severely hampered by the absence of timely, accurate and reliable management information because of weak data capture and analysis. Managing performance effectively to achieve business goals inquires continual implementation and execution of the following tasks: (a) developing and maintaining high quality of leadership, (b) preparing right strategies to implement business plans, (c) developing feasible and relevant goals and pragmatic action plan to implement the same, (d) intensifying performance monitoring, measurement and follow up (e) basing rewards, penalties, promotions and transfers on performance;

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Strategic Interventions for a Customer-driven Distribution Utility (f) stimulating the most capable, helping those who have unrealized potential and terminating the incapable; (g) conducting active and focused management by managers and of managers.

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Strategic Interventions for a Customer-driven Distribution Utility 3.5 MANAGEMENT OF RESOURCES TO ENHANCE CUSTOMER SATISFACTION

The business model of distribution company should be viewed from the synergy created by various perspectives in the distribution companies such as Customer, Financials, Human Resources and Institutional Processes and Systems. Today success will depend on the ability of a company to mobilise and exploit its tangible as well as intangible assets to perform better and live up to the expectations of the stakeholders. The intangible assets include capability to provide timely quality power and services, motivated and skilled employees, distinctive internal capabilities, and satisfied and happy consumers/ customers. Intangible resources and assets enable the distribution companies to: Develop customer relationships that build trust; Increasingly serve new customer segments; Introduce innovative and services and options; Ensure customized high- quality power supply and services at low cost and with short lead times(i.e. possible to manage high value customer at off peak hours at low rates); mobilize employee skills for continuous improvements in process capabilities, quality, and response times;

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Strategic Interventions for a Customer-driven Distribution Utility 3.6 HOW TO ALIGN ORGANIZATION STRUCTURE TO ENHANCE CUSTOMER SATISFACTION

Reliable Sales Group Employees Dependable

While employees having direct contact with customers see your company as a company that is reliable/dependable.

Service Center Employees

Upholding High Quality Services

Customers Forward
Innovative

thinking

..but customers perceive your company as Innovative and Forward thinking

A leader in the industry

Product Service Development Employees

Integrating Employee and Customer Perspectives

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Strategic Interventions for a Customer-driven Distribution Utility 3.7 QUALITY

Customer expectations for service quality are rising, not only in regions where they perceive more choice in the energy marketplace, but also because experiences with service providers outside the energy industry are setting new standards for performance. Infact, service that's not up to customer expectations can have a quick and negative impact on a utility's bottom line. Managing service quality cost-effectively raises difficult questions: How do physical measures of service reliability and power quality relate to customer satisfaction? What other aspects of service drive satisfaction?

Improvement in quality of service implies Stable voltage and frequency Enhanced customer experience

Quality and reliability of supply can be improved with proper system maintenance and faster action on outage complaints. For this, electric flow in the system should be monitored on a real-time basis. The real-time information ensures that the official concerned (distribution point) is aware of any breakdown / disruption at the same time as the consumer. The customers affected with any outage should be immediately identified and informed of the outage or a possible outage as well as the approximate duration. This results in prompter action and better customer relationship. Following are some of the IT applications, which can help in this:

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Strategic Interventions for a Customer-driven Distribution Utility

SCADA to start with and then progressing to distribution automation Outage and work management system including trouble call management system for faster restoration of outages

GIS (Geographical Information System) for identifying area and equipments

CIS (Customer Information System) using Internet, phones, call-centres, etc.

IVR for complaints and call back on restoration of supply

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Strategic Interventions for a Customer-driven Distribution Utility 3.8 STANDARDS OF PERFORMANCE

Customer Perceptions: Achieving strong satisfaction requires understanding how the customers perceive your companys performance

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Strategic Interventions for a Customer-driven Distribution Utility 3.9 PAYMENT MECHANISMS

Payments are currently made in person in most of the places. Only in few places, payments can be made online or through the ATM. SEBs should adopt other payment mechanisms such as: Electronic payments, including direct debit payments Prepaid metering Bar coding facility even when payment is made in person, for faster payment Multiple payment locations and not restricted to a particular division or subdivision For providing electronic payments, use of IT would be required for providing interfaces with entities like banks and building Internet-based payment processing. At present, SEBs allow only full payment and the system for providing credit facility (part payment) is quite ad hoc. SEBs could put a system in place for providing credit and monitor it. SEBs could also provide various payment options such as budget payment (average payment) and seasonal payment depending on the customers preference and credit rating. This requires credit analysis of customers and segregation of good paying customers from bad customers.

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Strategic Interventions for a Customer-driven Distribution Utility 3.10 COMPLAINT HANDLING

At present, consumers find it very difficult to log their complaints. In most cases, they have to go to the substation for supply related complaints and the concerned offices for bill related complaints. Contact centres can reduce this kind of trouble for customers. SEBs/Utilities should have: Call centres with IVR for outages and bill related complaints Call back from IVR on restoration of supply or redressal of any bill related complaint New connection is a major problem in all the SEBs. There is no suitable system in most SEBs for availability of information or monitoring of application status. SEBs must implement a system to enable the customers to know the status of their applications in a transparent manner. On the process side, regulators could set standards for SEBs in terms of timelines to provide new connections. All the basic information for new connections should be easily and publicly available to the customers either through a website or other communication channels.

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Strategic Interventions for a Customer-driven Distribution Utility

4.

STATISTICAL ANALYSIS
1. Frequency and Duration of Outages (a) Is your power supply interrupted
never rarely sometimes frequently 0 7 9 9

never 0% frequently 36%

rarely 28%

never rarely sometimes frequently

sometimes 36%

(b) If yes, what is the normal duration of such outage?

few minutes 1 hr. 2-4 hrs. >5 hrs. 6 6 10 3

>5 hrs. 12%

few minutes 24%

few minutes 1 hr. 2-4 hrs.

2-4 hrs. 40%

>5 hrs.
1 hr. 24%

(c) Are you given prior notices of such outages?

never rarely 3 11

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Strategic Interventions for a Customer-driven Distribution Utility

sometimes always
always 12% never 12%

8 3

never rarely

sometimes 32%

sometimes

rarely 44%

alw ays

Remarks: It was observed that there are frequent power cuts occurring in the customers premises occurring for generally one hour or even more. One major reason cited for this cut was the onset of summer, but there were respondents who told that such power cuts are daily occurrences and no prior notice is given of such outages. Customers have to assume such occurrences based on routine repetitions. Sometimes, newspapers and radio are used as a medium to communicate such outages. 2. Do you encounter frequent high or low voltages?
never rarely usually always 6 7 10 2

alw ays 8%

never 24%

never rarely usually always

usually 40% rarely 28%

Remarks: Frequent drop in voltages is a major occurrence in many customers premises. Due to this many are not able to use their appliances at night times in summer. But this problem was majorly observed in areas of SEBs operation. 3. Standardized billing procedure and format (a) Is the bill format
easy to understand 11

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Strategic Interventions for a Customer-driven Distribution Utility

complex difficult to understand can't say

can't say 8% difficult to understand 28% easy to understand 44%

5 7 2

easy to understand complex difficult to understand can't say

complex 20%

(b) Is your bill generally

less than expected as per expectations more than expected can't say
can't say 8%

3 10 10 2

less than expected 12%

less than expected as per expectations more than expected can't say

more than expected 40%

as per expectations 40%

(c) Do you prefer paying bill through

cash counter drop boxes online/ credit any other means 8 6 8 3

any other means 12% online/ credit 32%

cash counter 32%

cash counter drop boxes online/ credit any other means

drop boxes 24%

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Strategic Interventions for a Customer-driven Distribution Utility

(d) What is the average time taken to redress complaints related to meters and bills?
within few hrs. within 1 day 2-3 days >3 days 4 9 4 8

>3 days 32%

w ithin few hrs. 16%

w ithin few hrs. w ithin 1 day 2-3 days >3 days

2-3 days 16%

w ithin 1 day 36%

Remarks: This is one area of prime concern for the utility as well as customers. The bill format was generally understandable, though some faced difficulty. The expectations with the bill were met to a less extent. Dissatisfaction was apparent due to the use of the electronic meters which gave rise to more bill amount than expected by the customer. It was clear from the survey that the customers want to opt out of waiting in queues for bill payment and they want to opt for other options depending upon the time and the risk involved. Resolution of metering and billing disputes also raised concern in minds of customers towards the utility because such incidents consumed much of their working hours and so many people opted for not complaining if the difference is not too large. 4. Notices to consumers of their rights to seek relief at the commission At what intervals does your utility issue notices for your information to seek help of NGO, Govt., or Commission
once a month six monthly once in a year never 5 3 5 12

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Strategic Interventions for a Customer-driven Distribution Utility

once a month 20% once a month never 48% six monthly 12% six monthly once in a year never once in a year 20%

Remarks: The notices never get noticed to the consumers. Hardly are the customers made aware of where they can seek relief in case the utility defaults. 5. Has your utility asked you to undertake various energy efficiency programs?
always usually never can't say
can't say 8% alw ays usually alw ays 44% usually 36% never can't say

11 9 3 2

never 12%

Remarks: The energy efficient slogans and phrases find their place in consumers bills and utilities offices. Some customers opt out of choice using energy efficient lamps but many are forced to use them because of problem of drop in voltage. 6. 7. Delays in establishing new service connections (a) Do you observe delays in establishing new service connections?
yes no 20 5

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Strategic Interventions for a Customer-driven Distribution Utility

no 20%

yes no
yes 80%

(b) If yes, how many days delay was there?

1 week 2-4 weeks >1 month 2-6 months
2-6 months 16% 1 w eek 16% 1 w eek 2-4 w eeks >1 month 24% 2-4 w eeks 44% >1 month 2-6 months

4 11 6 4

Remarks: Service connection delays are very common for customers, the period ranging from 1 week to 1 month 8. What is your utilitys repair/ safety response times?
1hr. 2-6 hrs. 1 day >1 day 8 8 6 3

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Strategic Interventions for a Customer-driven Distribution Utility

>1 day 12%

1hr. 32%

1hr. 2-6 hrs. 1 day >1 day

1 day 24%

2-6 hrs. 32%

Remarks: Generally repair work is completed at the optimum time depending on the situation and the intensity of the repair. 9. At what intervals your utility conducts specific maintenance programs (of meters, service poles, service transformers)?
every month 2-3 months breakdown occurs 5 6 14

every month 20% every month breakdow n occurs 56% 2-3 months 2-3 months 24% breakdow n occurs

Remarks: The maintenance programs are generally undertaken once breakdown occurs. No regular update of service connections provisions are maintained at customers premises. Many a times, the meter checker observes the meter related problems at many locations but with outsourcing of such activities being done now, we can assume the technical capability of such a person to look for such disruptions. 10. Business office performance (a) Are the employees in the customer care center helpful and friendly?
always usually rarely never 7 13 3 2

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Strategic Interventions for a Customer-driven Distribution Utility

never rarely 8% 12%

alw ays 28%

alw ays usually rarely never

usually 52%

(b) Are your calls in the customer care centers answered promptly, ie. what is the average hold time?
30 sec 1-5 min. >5min >10 min 6 13 4 2

>10 min 8% >5min 16%

30 sec 24% 30 sec 1-5 min. >5min >10 min

1-5 min. 52%

Remarks: This is one area where the utility is functioning well. The customer care centers personnel co-operate with the employee problems and try solving them but better integration of such personnel with customer databases and records is required to reduce the hold time.

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Strategic Interventions for a Customer-driven Distribution Utility

5.

SUMMARY
There is no provision to regularly monitor whether the time limits are adhered to or not in case of non conformance to standards.

Reporting mechanisms are not strictly followed

Analysis of the survey's results clearly reflected the dissatisfaction, and wide gap between expectations and services delivered.

To the consumer the two most important aspects that emerged were grievance handling and metering and billing.

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Strategic Interventions for a Customer-driven Distribution Utility

6.

RECOMMENDATIONS
Frequent interaction with the consumer forums must be done by the distribution utility to yield areas of customer dissatisfaction and to act upon such issues so as to increase overall effectiveness of the utility. Distribution utilities in the state must arrange wider publicity to Complaint Handling Procedure, drawing the attention of the consumers. Procedures to be adopted for the complaints regarding interruption or failure of power supply, voltage complaints, load shedding, scheduled outages, problems in metering and billing, disconnection and reconnection of power supply, delay in providing new connections must be provided by the utility through any means like print advertising, direct mail, sales literature, public relations, utilities website, etc. All the distribution utilities must define Customer Service Standards consisting of: Overall Standards, i.e. the ability to restore supply after a failure of the distribution system, management of voltage complaints, actual meter reading, billing and response to customers petitions; and Guaranteed Standards, involving the supply quality, time to connect new customers, time to respond to customers requests and compliance to the service conditions, and reconnection of supply in case of having been disconnected. For the guaranteed standards, penalization in terms

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Strategic Interventions for a Customer-driven Distribution Utility of fine can be established. The utilities will have to compensate affected customers in case the guaranteed standards cannot be met. There is a need to streamline the grievance redressal procedure, as a consumer usually has to approach to various levels within a utility. Thus, the process of grievance redressal is time consuming and cumbersome Updation of customer information system with databases of customers, regular updates of mapping system so that all of the customer's account information is available when a customer calls in to 24-hour call center. Another area which needs improvement is metering systems. Automated meter reading system or AMR must be introduced in phases. This system will automatically read meters so the utilities don't have to send their employees into the customers' homes and backyards. Automated meter reading will improve the quality of meter reading, help the utilities gain operational efficiencies, and provide customers with timely energy information. Work management system of the utility must be made effective. This system helps manage work at a company level. It gives a high-level view of workload and helps offices communicate effectively to ensure that the utility meets the customers' needs. Customer Relationship management systems must be designed in such a way that employees get information about customers' accounts when they are out in the field meeting with customers. A step further in customer services area can be achieved by the utility by centralizing a number of their field functions. This doesnt mean closing 65

Strategic Interventions for a Customer-driven Distribution Utility field offices, but rather shifting the emphasis from addressing walk-in customers' needs to more of an operationally focused field office. Bill payment systems can be extended to forms like on-line payments, payments directly from customers' bank accounts, or payment at pay stations, etc. Creation of an on-line access for the larger customers to provide them with energy information tailored to their business environment can also be a way to enhance customer service.

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Strategic Interventions for a Customer-driven Distribution Utility

CONCLUSION
Every Customer Interaction Counts! Thus its very important for any distribution utility to maintain service standards and provide quality service to the customers to sustain in this competitive era.

Finally the single most important thing to remember about any enterprise is that there are no results inside its walls. The result of a business is a satisfied customer, inside an enterprise there are only cost centers. Results exist only on the outside. -Peter Drucker

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