Power central Аsia utility support approach

4/1/2022
DISCLAIMER
This document was prepared by the Power Central Asia Energy Program based on the input provided by Dushanbe City Electricity Networks and Ferdowsi Electricity Networks management team. The views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

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ABBREVIATIONS

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TABLE OF CONTENTS
Context and Background
Turnaround Plan
Approach
Key Projects
Action Plan

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Since January 2022, the Power Central Asia (PCA) has mobilized three advisors in Dushanbe, on implementation of utility strengthening objective, with main focus in loss reduction activities in the Ferdowsi Electricity Networks District.
The aim of this support is to provide commercialization and loss reduction assistance to Ferdowsi Electricity Networks District, which will focus on management support to address losses and assistance with the required performance turnaround.
This document consolidates initiatives, which aim to improve performance with more effective and efficient operational improvements at Ferdowsi District initially, and which can then be applied throughout DISCO, while not requiring significant investment and using existing in-house resources.
The initiatives have been developed and assessed based on the specifics and characteristics of the Ferdowsi district, based on a detailed diagnostic report and actual field engagement by the Power Central Asia utility specialists.
CONTEXT AND BACKGROUND

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TABLE OF CONTENTS
Context and Background
Turnaround Plan
Approach
Key Projects
Action Plan

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APPROACH
A number of shortfalls were identified during the diagnostic exercise conducted during January - March 2022. A set of solutions to the problems have been identified. Solutions have been grouped into several initiatives and under each initiative, several projects have been identified.
The initiatives are categorized into three main pillars – Effective Management and Governance Improvements, Operational Improvements, and Internal Control.
For each project, a plan has been prepared with objectives, timelines, deliverables, dependencies, as well as potential risks, that need to be mitigated.

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TABLE OF CONTENTS
Context and Background
Turnaround Plan
Approach
Key Projects
Action Plan

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KEY PROJECTS
Effective Management and
Governance Improvements
Operational
Improvements
Internal Control

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EFFECTIVE MANAGEMENT AND GOVERNANCE IMPROVEMENTS
STRENGTHENING MANAGEMENT EFFECTIVENESS

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EFFECTIVE MANAGEMENT AND GOVERNANCE IMPROVEMENTS
TALENT MANAGEMENT

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EFFECTIVE MANAGEMENT AND GOVERNANCE IMPROVEMENTS
COMMERCIAL OPERATIONS IMPROVEMENTS

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EFFECTIVE MANAGEMENT AND GOVERNANCE IMPROVEMENTS
COMMERCIAL OPERATIONS IMPROVEMENTS

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EFFECTIVE MANAGEMENT AND GOVERNANCE IMPROVEMENTS
COMMERCIAL OPERATIONS IMPROVEMENTS

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EFFECTIVE MANAGEMENT AND GOVERNANCE IMPROVEMENTS
TECHNICAL OPERATIONS IMPROVEMENTS

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EFFECTIVE MANAGEMENT AND GOVERNANCE IMPROVEMENTS
TECHNICAL OPERATIONS IMPROVEMENTS

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EFFECTIVE MANAGEMENT AND GOVERNANCE IMPROVEMENTS
INTERNAL CONTROL

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TABLE OF CONTENTS
Context and Background
Turnaround Plan
Approach
Key Projects
Action Plan

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Strengthening Management Effectiveness
Operationalized Structure
Initiative 1: Regional Structure
Initiative 2: District Structure
Effective Management and
Governance Improvements

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STRENGTHENING MANAGEMENT EFFECTIVENESS
OPERATIONALIZED STRUCTURE
DCEN Regional Structure
Ferdowsi District Structure
The organizational structure will not go through many changes, it will just be supported with improvements in administrative and commercial performance functions:
Newly established Revenue Protection unit should be organized, to be more effective in loss preventive, detection and loss recovery
Clarify and define roles and responsibilities of Revenue Protection and HQ Inspection Division, to prevent conflict and duplication of roles
Propose reporting line from Commercial Manager to Divisions who are responsible for commercial performance at District level
Create support functions division under Regional Manager
Redefine commercial / technical responsibilities and reporting lines at Region/District level
Optimized Revenue Collection/Revenue Protection organizational structure on a District level
Clear definition of job for technical and commercial staff
1
2

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: OPERATIONALIZED STRUCTURE
1

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: OPERATIONALIZED STRUCTURE
2

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: OPERATIONALIZED STRUCTURE
3

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: OPERATIONALIZED STRUCTURE
Administration
(Support Services)

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: OPERATIONALIZED STRUCTURE
1

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: OPERATIONALIZED STRUCTURE
Zone Manager
Electricians
Commercial Manager
District Manager
Point of accountability for the electricity supply, receiving and distributing of electricity to customers within district, including revenue collection, revenue protection activities, and network maintenance operations.
Point of accountability for Revenue protection and revenue collection activities, including loss reduction, debt management, etc.
Point of accountability for: loss reduction, reading quality, revenue collection, revenue protection, debt management, customer response-rate by feeder-lines or by transformers. Medium and large commercial customers management, and technical maintenance of network at 0.4kV level. Technical engineering skills are required grade N-5
Technician/Controllers
Meter Reading
Bill Delivery monitoring
Disconnection - meter
Reconnection – meter
Network control/Inspections
Theft detection
Revenue collection/debt management
Loss reduction
Energy balance by DTs
Customer enumeration
Overhead disconnections
Overhead reconnections
Minor repairs 0.4KV Network
Targets – monthly, quarterly
Targets – daily, weekly, monthly
Operational Targets – daily, weekly, monthly
Optimized Revenue Collection/Revenue Protection Organizational Structure
(Commercial Team at District Level)

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Strengthening Management Effectiveness
Reviewing and Redesigning Processes
(Process review and redesign, draft new processes, draft Standard Operating Procedures)
Initiative 1: Revenue Protection - Process Review and Redesign
Initiative 2: Meter Reading and Billing - Process Review and Redesign
Initiative 3: Disconnection - Process Review and Redesign
Initiative 4: Standard Operating Procedures (SOP)
Effective Management and
Governance Improvements

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STRENGTHENING MANAGEMENT EFFECTIVENESS
REVIEWING AND REDESIGNING PROCESSES
1
2
Process Review and Redesign
Draft New Processes
Review and redesign existing processes in the commercial and technical operations, ensuring that they are in line with organogram and company strategy to decrease losses.
For the operations that doesn’t have process in commercial operations the process will be drafted, to ensure proper functionality of operations to achieve company goals in the loss reduction.
Standard Operating Procedures
With purpose to ensure proper understanding during implementation of processes, in some of key commercial operations, the Standard Operating Procedures and Executive Orders to support implementation will be drafted.
3

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: REVIEWING AND REDESIGNING PROCESSES
1
PCA Team
Regional Management
Revenue Protection
2022 - Q2,3,4
Increase productivity and effectiveness in the work
Improve internal control and decrease risk
Revenue Protection - Process Review and Redesign
New process for revenue protection will be drafted.
This will define Interactions of Revenue Protection with other commercial and technical operation. Will describe documents flow, reviews and approvals from different levels, proceeding the electricity theft cases and responsibility for loss recovery calculation.
Will establish Internal control points to ensure that risk will be mitigated and managed in proper way and in proper time.
Meter Reading and Billing - Process Review and Redesign
New process will contains details for effective planning of meter readings, better coverage, reading accuracy and reporting of metering conditions.
Will define to do actions in cases when meter can’t be read, no access, not existing, demolished, abandoned, etc. Establish internal control to ensure accurate readings.
Exception list with criteria on overbilled or underbilled customers, customers billed with estimation and zero for periods longer than three months, etc. Rebilling and adjustments. Bill delivery ratio.
PCA Team
Regional Management
District Management
District Staff
2022 - Q1,2,3,4
Improve accuracy of meter readings
Ensure efficient coverage
Improve accuracy of meter readings
Control of estimate bills and zero consumption
2

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: REVIEWING AND REDESIGNING PROCESSES
3
4
Standard Operating Procedures (SOP)
For main operations, the SOP will be drafted to ensure uniform implementation of operations by increasing efficiency and effectiveness during operations. SOP’s will be harmonized with the local legislation and tailored for the DCEN.
PCA Team
Regional Management
District Management
District Staff
Human Resource
Labor Union
2022 - Q1,2,3,4
Improve working methodology, effectivity and efficiency of operations.
Increase internal control and monitoring mechanism
Disconnection - Process Review and Redesign
Disconnection process will be revised and updated with details.
Proper analytical and planning measures will be added to ensure increase of response ratio and improvements in collection amounts.
The details on disconnection and re-connection responsibilities and special treatment for problematic customers will be introduced.
PCA Team
Regional Management
District Management
District Staff
2022 - Q1,2,3,4
Improves effectiveness and efficiency of commercial and technical operations

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: REVIEWING AND REDESIGNING PROCESSES
4
Standard Operating Procedures (SOP)
Trainings on SOP’s will be provided for Ferdowsi District staff. Also, SOP’s will be communicated and workshops organized with regulatory office representatives to ensure efficient SOPs, which would be the best for customers, as well as for utility company’s revenue.
Strict execution of standard operating procedures.
SOP for Revenue Protection
SOP for Meter Reading and Billing
SOP for Disconnection
SOP for Revenue Collection
SOP for Customer Alignment with Network
SOP for Debt Recovery Management
SOP for Human Resources (Employment Manual)
PCA Team
Regional Management
District Management
District Staff
Human Resource
Labor Union
2022 - Q1,2,3,4
Improve working methodology, effectivity and efficiency of operations.
Increase internal control and monitoring mechanism

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Strengthening Management Effectiveness
Recruitment, Employment and
Gender Equality
Initiative 1: Re-design the Employment Agreement template
Initiative 2: Recruitment Process
Initiative 3: Gender Equality
Effective Management and
Governance Improvements

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STRENGTHENING MANAGEMENT EFFECTIVENESS
RECRUITMENT, EMPLOYMENT AND GENDER EQUALITY
1
2
Re-design the Employment Agreement
Re-design the existing Employment Agreement template and content for district field employees, Chief Inspector and Controller, with additional required details for responsibilities, accountabilities, qualifications, working experiences and with special attentions to Key Performance Indicators.
3
Recruitment Process
Companies’ executive management should ensure that the recruitment and selection of all employees are fair, open, and transparent and conforms to all statutory regulations and agreed best practices. We believe that people from diverse background – be it education, experience, gender, social background, geography, exposure, etc. – build a culture fit for innovation, engagement, and progress.
Gender Equality
Company should ensure that women and men have an equal chance of choosing an occupation, developing the requisite skills and knowledge, being fairly paid, enjoying equal treatment and advancing in a career.

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: RECRUITMENT, EMPLOYMENT AND GENDER EQUALITY
1
2
PCA Team
Human Resources
Respective Functions where position is operating
2022 - Q1,3
Increase productivity and effectiveness in the work
Improves effectiveness and efficiency of commercial operations to achieve goals set with company targets
Increase accountability and responsibility
Introduce new Employment Agreement template for Chief Inspector and Controller and add additional information about KPI’s
The existing Employment Agreement will be extended with additional information related to the objectives and responsibilities.
Strategically important position of Chief Inspector and Controller should be full time employees of the company with fixed salary.
Incentives should be calculated according to the performance appraisal, based on the KPI’s.
Company employees should have freedom to choose to become or not a member of the Labor Union.
PCA Team
Human Resources
2022 - Q1,3
Employee Manual will be drafted to determine clear process on fair and transparent recruitment. DCEN should be equal opportunity employer and believe in diversity and inclusion. Only candidates who possess the necessary qualifications and experience for identified vacancies and pass the selection process should be recruited.
HR processes should be digitized to automate repetitive and time-consuming tasks, including employee recruitment, onboarding administration, timekeeping, benefits administration, notifications and reminders.
Increase productivity and effectiveness in the work
Improves effectiveness and efficiency of HR operations
Fair opportunity for employment

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: RECRUITMENT, EMPLOYMENT AND GENDER EQUALITY
3
PCA Team
Human Resources
PR
2022 - Q3,4
Substantially higher average household incomes
Greater financial independence for women
Preservation of high living standards
Improve work environment
Engaging more women in management functions, administration, and operations would be taking one step closer to becoming a successful company. Specifically, DCEN needs to encourage and recruit women as Controllers in the field.
Promote gender-aware human resources management to effectively support both female and male health workers in equitable work environments.
Conduct “gender audits” of workplace to identify gender discrimination in hiring, training, promotion, and pay.
Develop and enforce equal opportunity employment policy to eliminate discrimination on the basis of marriage, pregnancy and family responsibilities and promote equal remuneration and equal opportunity for career advancement.
Recruit men and women into nontraditional jobs and promote equitable task-sharing among staff.

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Strengthening Management Effectiveness
Effective Job Description
Initiative 1: Re-design the Job Description template
Initiative 2: Review and Redesign Existing Job Description
Initiative 3: Draft New Job Descriptions
Effective Management and
Governance Improvements

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STRENGTHENING MANAGEMENT EFFECTIVENESS
JOB DESCRIPTION
1
2
Re-design the Job Description template
Redesign Existing Job Description
Re-design the existing Job Description template and content, with additional required details for responsibilities, qualifications, working experiences and with special attentions to Key Performance Indicators.
Reviewing and re-designing the existing Job Descriptions for all Commercial Functions to ensure that they are in line with `talent management strategy and with the company strategy to improve performance and decrease losses.
Draft New Job Descriptions
Draft Job Descriptions for the positions and functions in the commercial operations who doesn’t have yet job description.
3

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: JOB DESCRIPTION
1
2
PCA Team
Human Resources
2022 - Q1,3
Increase productivity and effectiveness in the work
Re-design the Job Description template
Introduce new Job Description template
Add additional information about KPI
Process to ensure that all employees have received JD
Review and Redesign Existing Job Description
The existing Job Descriptions will be extended with additional information relate to the objective and responsibilities
Will define reporting and KPI based on the changes in organogram and process flows to ensure alignment with company strategy to achieve commercial goals.
PCA Team
Human Resources
Respective Functions where position is operating
2022 - Q1,3
Improves effectiveness and efficiency of commercial and technical operations to achieve goals set with company strategy
Draft New Job Descriptions
Assistance will be given to draft new job description for all missing positions and functions.
Special attention to Revenue Protection and other important commercial positions.
PCA Team
Human Resources
Respective Functions where position is operating
2022 - Q1,3
Improve effective and efficiency of work
Increase accountability and responsibility
3

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Strengthening Management Effectiveness
Key Performance Indicators and Targets
Initiative 1: Review and re-define KPI
Initiative 2: Operational KPI
Initiative 3: Financial KPI
Effective Management and
Governance Improvements

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STRENGTHENING MANAGEMENT EFFECTIVENESS
KEY PERFORMANCE INDICATORS (KPI) AND TARGETS
1
2
Review and re-define KPI
Operational KPI
Review and re-define new KPI based on the company goals to achieve in operations.
Ensure that KPI set are achievable and will bring values to the company performance.
Ensure that KPI will be subject of evaluation in periodical times.
Re-define operational Key Performance Indicators in all commercial and technical operations.
Define Daily KPI
Weekly KPI
Monthly KPI
Financial KPI
Re-define operational Key Performance Indicators in all commercial and technical operations.
Define Daily KPI
Weekly KPI
Monthly KPI
3

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: KEY PERFORMANCE INDICATORS (KPI) AND TARGETS
1
2
3
Commercial and Technical Operations
Labor Union
2022 – Q4
2023 - Q1,2,3,4
Increase productivity and effectiveness in the work.
Review and Re-define KPI
Introduce KPI which are achievable and based on proper analyses. The KPI will be attached to the company strategy to ensure that goals are achieved based on timeline.
Operational Key Performance Indicators and Targets
Daily, weekly, monthly, quarterly and annual KPI and Targets
Daily – to ensure effective and efficient daily work
Weekly – to ensure that team work is bringing results
Monthly Target– to differentiate best performing
Quarterly and Annual KPI and Targets to ensure that operations are bringing value to the company performance in implementation of company strategy to achieve assigned goals.
Regional Managers
Function Managers
Human Resources
Labor Union
2023 - Q1,2,3,4
Improves effectiveness and efficiency of daily, weekly and monthly activities.
Enables management in time to realize obstacles to achieve company goals in time.
Financial Key Performance Indicators
Introducing financial target that will be linked to the operational targets. This will show the results of the implemented KPI in commercial and technical operations.
Commercial and Technical Operations
Labor Union
2023 - Q1,2,3,4
Improve financial incomes as result of operational work.

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Strengthening Management Effectiveness
Periodical Performance Evaluation and
Skill Assessment
Initiative 1: Daily monitoring and performance
Initiative 2: Monthly performance review
Initiative 3: Quarterly performance review
Initiative 4: Skill Assessment
Effective Management and
Governance Improvements

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STRENGTHENING MANAGEMENT EFFECTIVENESS
PERIODICAL PERFORMANCE EVALUATION AND SKILL ASSESSMENT
1
2
Daily Monitoring of Performance
Monthly Performance Review
Monitoring the daily performance through reporting and side visits, about quality and effectiveness of implementation of Key Performance Indicators set by company in each operations.
Based on the KPI and Targets set by company to ensure achieving the company objectives, the monthly performance review will be commenced to ensure that company is going in right or wrong direction to achieve company objectives. During monthly performance review, the recommendations for improvements will be given and noted to respective functions, teams, etc.
Quarterly Performance Evaluation
Based on the monthly review and quarterly KPI and Targets achievement, the detailed and fear performance evaluation will be an asset to remind underperforming teams / function that they have to do better, or, to be proceeded based on the disciplinary code on underperformance.
3
Skill Assessment
Comprehensive and regular skill assessment exercise are required to regularly control qualification of utility employees and to tailor most efficient trainings sessions based on the identified gaps in skills.
4

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STRENGTHENING MANAGEMENT EFFECTIVENESS
INITIATIVES: PERIODICAL PERFORMANCE EVALUATION AND SKILL ASSESSMENT
1
2
3
Revenue Protection
Commercial and Technical Management
2022 – Q2,3,4
2023 - Q1,2,3,4
Increase quality and effectiveness of work
Improve working discipline and also increase responsibility and accountability
Daily Monitoring of Performance
Mandatory Reporting Templates will be introduced
Field side visits / monitoring will be introduced
Cooperation with Revenue Protection to audit work efficiency based on the daily KPI and Targets
Monthly Performance Review
Defining baseline as minimum achievement. Performance review by teams and team leads. Identify obstacles and teams that need improvements. Take official notes on evaluation and recommendations for improvements.
Act based on disciplinary code in cases of underperformance under the baseline.
Regional Managers
Function Managers
Human Resources
Labor Union
2022 – Q2,3,4
2023 - Q1,2,3,4
Improves effectiveness and efficiency of daily, weekly and monthly activities.
Quarterly and Annual Performance Evaluation
Detailed performance evaluation for District Manager, District Commercial Manager, District Chief Engineer and Field staff.
Regional Management
District Management
Human Resources
Labor Union
Human Resources
2022 – Q2,3,4
2023 - Q1,2,3,4
Improves effectiveness and efficiency of commercial activities.
Skill Assessment
Skill Assessment for Revenue Protection and all Commercial and field staff in the District. Skill assessment is done as written tests and one on one interviews in basics of utility technical and commercial operations).
Regional Management
District Management
Human Resources
Labor Union
Human Resources
2022 – Q2,3,4
2023 - Q1,2,3,4
Improves effectiveness and efficiency of operational staff in their activities.
4

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Talent Management
Enhance Talent Management in Line with DCEN Strategy and Goals
Initiative 1: Number of Employees in Operations
Initiative 2: Employee / Customer Ratio
Effective Management and
Governance Improvements

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TALENT MANAGEMENT
ENHANCE TALENT MANAGEMENT IN LINE WITH DCEN STRATEGY AND GOALS
Number of Employees in Operations
Employee / Customer Ratio
To ensure achievement of company objectives, the planning of required number of employees and allocation of employees in right operations is one of the primary tasks for talent management in the successful company.
Key Performance Indicators are the measures that help company to understand whether company is achieving objectives or not. Achievable KPI are linked with quality and effectiveness of work. In this regards, based on the achievable KPI and number of customers, the employee / customer ration should be defined.
Customer ratio to cover operations, should be counted based on the field employee who perform operations, to ensure effective coverage of customers. In customer ratio for effective operations, the staff in offices should not be considered in all cases.
1
2

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TALENT MANAGEMENT
INITIATIVES: ENHANCE TALENT MANAGEMENT IN LINE WITH DCEN STRATEGY AND GOALS
1
2
Human Resources
Regional Management
2022 - Q2,3,4
Improve effectiveness and efficiency of Operations
Number of Employees in Operations
Analyze employee alignment in organogram
Interview of key roles personnel to ensure they have the knowledge capacity and professionalism to work in the key roles.
Identify overstaff and understaffed units
Evaluate and propose staff movements to empower operations
Instill process of regular rotation of all commercial employees by geo-location within district and between districts once in a year
To avoid operations failure caused by lack of manpower, launch of internship processes as one of the best practices is most important to maintain uninterrupted business operations.
Employee / Customer Ratio
Analyze employee ratio in each operations
Identify overstaffed and understaffed operations
Identify overstaffed and understaffed office staff
Plan employee ration based on operations KPI and targets to achieve company objectives.
Human Resources
Regional Management
2022 - Q2,3,4
Improve effectiveness and efficiency of Operations
Helps company to achieve its objectives

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TALENT MANAGEMENT
INITIATIVES: ENHANCE TALENT MANAGEMENT IN LINE WITH DCEN STRATEGY AND GOALS
2
Human Resources
Regional Management
2022 - Q2,3,4
Improve effectiveness and efficiency of Operations
Helps company to achieve its objectives
Employee / Customer Ratio
Manpower Calculation Criteria: To arrive at quantity of manpower needed in a function/department – across various levels/hierarchy – the following factors must be considered to analyze and finalize the numbers:
Demand of processes: Various activities / jobs undertaken by the department;
Work volume: Determined by (1) number of stakeholders covered by the departmental processes, and (2) frequency of occurrence of events/process-steps;
Spread of team over geo-locations: If the department is decentralized, it would need manpower spread over defined geo-locations, vaster areas and length of power network, will determine requirement of more workforce;
Technology and automation: Higher level of technology and automation (including IT-enablement) should help in reducing manpower requirements to manage the same number of processes and work volume with less operational expenses;
Competency level of workforce: The competency level of employees in a team may undergo change due to continuous learning and development efforts.

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Talent Management
Enhance Strategic Employee Planning
Initiative 1: Identify key roles
Initiative 2: Alignment of personnel with key roles
Initiative 3: Alignment of key roles with company strategy
Effective Management and
Governance Improvements

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TALENT MANAGEMENT
ENHANCE STRATEGIC EMPLOYEE PLANNING
1
2
Identifying Key Roles
Alignment of Personnel for Key Roles
Identifying the key roles that are important in the company to work in the loss reduction strategy, to ensure that operation strategy is in line with loss reduction strategy objectives in DCEN.
Identifying the personnel who have qualification and experience to fulfill the requirements in the key roles.
Alignment of Key Roles with Company Strategy
Establishing the working processes for the key roles to work in line with DCEN strategy on loss reduction.
3

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TALENT MANAGEMENT
INITIATIVES: ENHANCE STRATEGIC EMPLOYEE PLANNING
1
2
3
PCA team
DCEN
District
Human Resources
2022 – Q3,Q4
2023 - Q1
Improve implementation of company strategy to achieve loss reduction objectives.
Identifying Key Roles
Analyzing responsibilities and functions that have interactions with commercial and technical operations that affect directly or indirectly energy losses.
Alignment of Personnel for Key Roles
Identify the personnel who have qualifications, experience, capability and who are ready to learn with the new approaches and methodology to work in loss identification, prevention and loss recovery task.
PCA team
DCEN
District
Human Resources
2022 – Q3
Improve implementation of company strategy to achieve loss reduction objectives.
Alignment of Key Roles with Company Strategy
Each role should be aligned with the action plan in implementation of company strategy to achieve loss reduction objectives.
PCA team
DCEN
District
Human Resources
2022 – Q3
Improve implementation of company strategy to achieve loss reduction objectives.

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Talent Management
Effective Incentive Scheme
Initiative 1: Rewarding and Acknowledgment of Successful Work
Initiative 2: Measurement of KPI and Target Implementation
Effective Management and
Governance Improvements

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TALENT MANAGEMENT
EFFECTIVE INCENTIVE SCHEME
1
2
Rewarding and Acknowledgment of Successful Work
Based on the established KPI and Targets, proper alignment of employees with operations and improvements in the employee vs. customers ratio, the effectiveness and efficiency of the work will be increased and will affect in two following improvements:
will affect on decreasing the number of overtime work in one side, and
2. replacing overtime incomes with rewarding contribution to success and acknowledging the employee value to the organization by recognition of the achievement and implementation of KPI and Targets,
Measurement of KPI and Target Implementation
If the KPI and Targets will not be achieved as it is planed, the company strategy to achieve the objectives may face serious obstacles. To stop this in time, the for the underperforming employees who are not capable to do their job in timelines and based on the company KPI and Targets, the proper disciplinary measures should be introduced.

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TALENT MANAGEMENT
INITIATIVES: EFFECTIVE INCENTIVE SCHEME
1
2
Human Resources
Commercial and Technical Services
2022 - Q3,4
Increase working discipline and efficiency
Identify underperforming employees
Rewarding and Acknowledgment of Successful Work
Acknowledging the employee value to the DCEN
Establishing the incentive scheme with percentage rewards based on the results shown during KPI and Target implementation
Replacing overtime with rewarding contribution
Measurement of KPI and Target Implementation
Establish daily, weekly and monthly measuring matrix
Establish plan for underperforming employees
Establish measures to be taken for these employee category
Human Resources
Commercial and Technical Services
2022 - Q3,4
Improve implementation of company strategy to achieve loss reduction objectives.

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Talent Management
Training and Capacity Building
Initiative 1: Training for revenue protection and revenue management
Initiative 2: Training for commercial Operations
Initiative 3: Training for database Clean Up
Initiative 4: Training for analysts
Effective Management and
Governance Improvements

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TALENT MANAGEMENT
TRAINING AND CAPACITY BUILDING
1
2
In house training
Regular training conducted for the main commercial and technical operations will enable employees to be informed and prepared with approved processes, internal regulations, standard operating procedures, reporting lines, KPI and targets, before starting operations in the field.
For every changes in processes and operations, the trainings are required to prepare field work force to be in line with it.
Field training
Side visits and training by working together with employees, training them how to implement the company processes and strategies in practice is very important for the quality and effective work. PCA team will conduct professional field training to ensure that employees in operations will have all knowledge to do their job properly and successfully.

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TALENT MANAGEMENT
INITIATIVES: TRAINING AND CAPACITY BUILDING
1
2
PCA
Revenue Protection
Human Resources
2022-Q4
2023 - Q1,2,3,4
RPU teams will have knowledge on new processes working methodology and also implementation in the field
Revenue Protection Training
In house training will be conducted by PCA team for the revenue protection managers, team leads, field employees and also other departments and positions that have interactions with revenue protection.
Field training will be conducted by PCA team to ensure that all staff is well trained in detection and loss recovery operations.
Customer Enumeration Training / Data Clean Up
In house training to ensure that all staff is properly trained to planning and implementation of customer enumeration, database clean up and maintain billing database and feeder database with accurate data.
PCA
Revenue Protection
Human Resources
2023 - Q1,2,3,4
Improve accuracy of data in billing database, eliminate inexistent customers and align properly customers.
PCA
Revenue Protection
Human Resources
2023 - Q1,2,3,4
Improve revenue management, planning, implementation and improvement in operations
Commercial Operation Training
In house and also field training for commercial managers in the districts.
Mandatory and frequent trainings are required for Health, Safety and Environment (HSE).
Analytical Training
After establishing analytical department and their representatives in region and district, PCA team will organize basic and advanced training for analysts on billing and energy data.
PCA
Revenue Protection
Human Resources
2023 - Q1,2,3,4
Improve daily operations by identifying gaps in billing, reading, collection and energy losses
3
4

4/1/2022
Commercial Operations Improvements
Revenue Protection and Loss Recovery
(Loss prevention, detection and recovery infrastructure)
Initiative 1: Draft new revenue protection working process
Initiative 2: Draft standard operating procedure
Initiative 3: Performance review and evaluation
Initiative 4: Establish analytical team inside revenue protection
Initiative 5: Establish professional field teams for inspection
Initiative 6: Design new working templates (field documents and reporting templates)
Initiative 7: Establish KPI and Targets
Initiative 8: Organize in-house and field training
Initiative 9: Loss recovery infrastructure
Operational Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
REVENUE PROTECTION AND LOSS RECOVERY
1
2
Loss Preventive Infrastructure
Loss Detection Infrastructure
Drafting new process and SOP to guarantee more independence in operations
Improve internal control and cooperation with law enforcement
Increasing working discipline and customer awareness, etc.
Ensuring positive effect in decrease of energy losses, etc.
Establish effective analytical function
Implement energy balance in feeder / substation level
Quality inspections for all customer category and installations
Establish process for proper addressing the findings, etc.
Loss Recovery Infrastructure
Assessing back billing for energy losses
Ensuring reclaim losses through billing system and trough customer account
Collection of energy losses
3

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: REVENUE PROTECTION AND LOSS RECOVERY
1
2
Revenue Protection
Regional Management
2022 – Q2,Q3
Improving working efficiency and effectivity.
Increase working discipline and responsibility.
Loss Preventive Infrastructure – Working Process
New process for revenue protection should be drafted, to describe working methodology.
The process will describe actions to be taken in different cases, starting from the planning, inspections, reporting, proceeding the findings, loss calculation and collection.
Process will describe interactions with other departments and stakeholders in the loss reduction.
Loss Preventive Infrastructure – SOP
Standard Operating Procedure will be drafted, to describe functionality of revenue protection department in details.
SOP will contain reporting deadlines and reporting templates to be used officially by revenue protection teams.
Defining daily KPI for each team and function.
Loss Preventive Infrastructure – Performance Review
Considering the importance to have effective and productive revenue protection, the monthly performance evaluation will be established for each team and team leads.
Introducing quarterly performance evaluation, to ensure that three month performance is in line with approved KPI and Targets.
Revenue Protection
Regional Management
2022 – Q2,Q3
Improving working efficiency and effectivity.
Increase working discipline and responsibility.
Revenue Protection
Human Recourses
Line managers
2022 / Q2,3,4
Improving working Improve working discipline
Motivation of professionals and identifying negligent or non professional employees
3

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: REVENUE PROTECTION AND LOSS RECOVERY
4
5
Revenue Protection
Regional Management
2022 / Q3,4
Improving working efficiency and effectivity
Loss Detection Infrastructure – Analysts
Analyses team inside the revenue protection should be established and trained to do proper billing and energy analyses.
Establish regular process for customer database analyses and identify potential customers to be inspected.
Analyses based on the feeder level and where is possible also in the distribution transformer level, to Identify areas with high losses.
Energy Balance in all distribution levels independently from technical and customer services, to identify energy outflows in the system.
Loss Detection Infrastructure – RPU Field Teams
Establishing Revenue Protection teams for domestic, Small Commercial Customer and also professional team for large power users.
The team will contain minimum two people for residential and commercial customers, while teams for large power users will be designed based on customer measurement types, with minimum two employees per team.
Revenue Protection
Regional Management
2022 / Q3,4
Efficient field inspections and detection of losses

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: REVENUE PROTECTION AND LOSS RECOVERY
6
7
Revenue Protection
2022 / Q2,3,4
Improve Internal Control
Improve monitoring of daily performance
Maintain database with customer data updates
Loss Detection Infrastructure – New Templates
To improve internal control and monitoring of teams, the new format of field inspection report with serial number and carbonated copies will be established, to be used as report on each findings.
Daily report to record every visited and inspected customers, with detailed description.
Weekly and monthly reports for HQ and Regions.
Team should have high level coordination and cooperation with Regional Legal office to fast track all the findings and prosecute violations detected and registered ion the field.
Loss Detection Infrastructure – KPI and Targets
To ensure effectiveness, the combined operational and loss recovery targets will be established for revenue protection teams.
This will include daily, weekly and monthly targets for each revenue protection team and team leads.
Loss Reduction Department
Human Recourses
Line managers
2022 / Q2,3,4
Improve working discipline
Quality and effectivity of work
Internal control
Quality of work

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: REVENUE PROTECTION AND LOS RECOVERY
8
9
Revenue Protection
Human Resources
Commercial and Technical Staff
2022 / Q3,Q44
Build capacities
Proper understanding of laws, regulations, process and SOP.
Professional and effective inspections.
Loss Detection Infrastructure – Training
In house and field multi functions training for revenue protection employees and also other departments with functions and responsibilities to protect and manage revenues.
Training in Tajikistan laws and regulations for energy theft.
Training for processes, operating procedures, reporting and templates to be used.
Training on professional inspection and loss detection in different customer type.
Training on loss recovery calculation methodology.
Loss Recovery Infrastructure – Loss recovery
Introducing new methodology based on the actual laws and regulations in Tajikistan, for loss recovery calculations.
Establishing deadlines and responsible people who will have authorizations for loss recovery calculation.
Establishing process for billing and collection of reclaim losses.
Equip RPU teams with specialized toolkit to detect the theft of electricity.
Revenue Protection
Human Resources
Commercial and Technical Staff
2022 / Q1,2,3,4
Ensure proper and accurate calculation of losses
Internal control improvements
Increase integrity and decrease risk

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: REVENUE PROTECTION AND LOSS RECOVERY
Structure
Organogram
Job Description
Training
Operations
Standard Operating Procedure
Operational Targets
Loss Recovery Target
Official Field Inspection Reports
Daily, Weekly, Monthly Reporting
Loss Calculation Methodology
Working Tools and Safety Equipment's
Administration
Monthly Performance Evaluation
Quarterly Performance Evaluation
Establishing Functional Infrastructure
Preventive of Losses
Improving organizational structure
Improving Internal Control
Increasing working discipline
Education of customers
Improving process mapping
Cooperation with Law Enforcement
Detection of Losses
Loss Recovery
Analyses of customers database
Energy balance/Identify areas with high losses
Proper field inspections
Identify factors that leads to the losses
Proper addressing of the findings
Assessing back billing amount in kW/h
Capturing back bill amount in kW/h and in TJS in the Customer Account/collecting
Decrease ATC&C Losses
Collection of billed energy as result of energy losses
Revenue Protection Interactions

4/1/2022
Commercial Operations Improvements
Meter Reading Process and Efficiency
Initiative 1: Draft process to minimize reading anomalies (zero bills, etc.)
Initiative 2: Revising and redesigning meter reading itineraries
Initiative 3: Improve reading accuracy and efficiency
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
METER READING PROCESS AND EFFICIENCY
1
2
Draft process to minimize reading anomalies (zero bills, etc.)
Analyze and identify customers (by tariff group) with zero consumption; determine why they are billed with zero consumption.
Check and verify all customers with zero bills, starting with commercial customers as the highest consumption individual customers.
If there are customers with zero bills due to overbilling in prior periods, address the issue through bill corrections, not zero billings. Analyze and identify customers with high adjustments that impacts that billing cycle and collection activities as well.
Revising and redesigning meter reading itineraries
Review reading itineraries / routes DT-s, by analyzing meter reading frequency sequences and reassign readers to read feeders within one day minimize and eliminate late books.
Draft reading graphics in the district, taking into account, specific routes (Itineraries DT-s/Feeder) and available work force for each month.
Revise reading sheets to extract the prior month’s reading statistics, and introduce daily reading targets.
Conduct training of readers, in particular those who may be reassigned from other functions during the reading period

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
METER READING PROCESS AND EFFICIENCY
3
Improve reading accuracy and efficiency
Reading cycle needs to be optimized and time-bound, and still maintain a high accuracy level, less adjustments that impacts the billing figures.
Strengthen meter reading control and post-reading control; avoid sending the same readers to control themselves.
Engage zone managers in reading verification, and assign to them the reading of high profile and scattered customers.
Make sure that all the meters in the itineraries are read on time including self / common consumption of DCEN.
Proper monthly readings at energy income and outgoing points at substation.

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: METER READING PROCESS AND EFFICIENCY
1
2
Billing Department
District Commercial Staff
PCA Team
2022 / Q3,4
Identify false zero bills to increase billing and collection efficiency and reduce losses.
Meter Reading anomalies minimization
Analyze and identify customers with zero bills.
Group customers based on type and anomalies.
Address and verify each customer group.
All cases when meter readings are done manually photo should be taken of those meters as Photo-control purposes.
Meter Reading Structure
Identify all reading itineraries / routes, readers and targets.
Determine the number of readers necessary for each feeder to be read within a day, with no delays.
Assign readers in certain areas based on their potential.
Develop the reading graphic for the District.
Cluster readings by routs, DTs or by feeder-lines to ensure less interference and manipulation on billing efficiency by rescheduling reading dates and bound by time.
Reading targets must be assigned to controllers/reader by routs or DTs which should be strictly followed.
Billing Department
District Commercial Staff
PCA Team
2022 / Q2,3
Reduce late reading itineraries and cycle, improve energy balance calculations. Customer will receive bills on time and can pay on time. Overall billing and revenue management improvement.

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: METER READING PROCESS AND EFFICIENCY
3
Billing Department
District Commercial Staff
PCA Team
2022 / Q2,3,4
Improve reading and billing accuracy, and have fewer customer complaints.
Meter Reading accuracy
Identify and train employees for accurate reading, reporting statutes for control and post reading controls verifications.
Develop field inspection templates and coordinate supervision.
Monthly readings at energy income and outgoing points at substation should be done by substation duty person at 12:00 noon who also will be sharing readings with different stakeholders including billing department and chief inspectors. The chief inspector can be also attended the reading process as observer but not as an owner of collected data.

4/1/2022
Commercial Operations Improvements
Billing Process and Efficiency
Initiative 1: Draft executive order to improve bill delivery
Initiative 2: Improving billing cycle
Initiative 3: Establish Key Customer Group
Initiative 4: Billing Software
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
BILLING PROCESS AND EFFICIENCY
1
2
Draft executive order to improve bill delivery
Improving billing cycle
Purpose of this initiative is improve bill delivery especially to the 39% of the Ferdowsi District customers that don’t posses a correct phone numbers in the billing data base. Company need to give option to the customer to choose an option of how to receive bill, by text message or hard copy (printed bills). Also, need to improve customers data through billing period by collecting accurate customers information's.
Every customer that is connected in the network must be billed and bill must be generated (text message) at the same time of the in-site visit, with exception of cases with errors or other possible technical causes. Minimization of the billing errors, adjustment, estimations and identify and address bill anomalies by taking necessary actions.
Establish Key Customer Group
Establish key customer group under Ferdowsi District to monitor and manage KCG operations more efficiently.
3
Billing Software
Billing software needs some adjustments to become more efficient for everyday commercial operation. Also, access for the district employees is crucial.
3

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: BILLING PROCESS AND EFFICIENCY
1/2
Billing Department
Other parties involved
PCA Team
2022 / Q2,Q3
Improve bill delivery / Improve billing cycle
Facilitating process of bill delivery by fostering team in the field to read and bill every customer in the itinerary and capture accurate data.
Monitor billing activities to those customers that are not receiving bills if any.
Work with local billing system developers to establish online tracking tool based on HHUs.
All customer will receive bills on time.
Billing cycle will be closed on time.
Eliminate adjustment as a result of not proper billing (estimations)
Enabling energy balance and losses by feeders
Billing Department
Other parties involved
PCA Team
2022 / Q2,Q3
Establish Key Customer Group
Install new smart AMR meters at all large industrial customers, supply source spots.
Train team and to develop smart AMR meter management software for KCG division, which will be responsible for full management of key customers group under DCEN network, and also responsible for revenue collection and revenue protection operations.
All customer will receive bills on time.
Accurate billing of large customers.
Proper allocation of smart AMR meters.
Increase of revenue
3

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: BILLING PROCESS AND EFFICIENCY
4
Billing Department
Other parties involved
PCA Team
2022 / Q2,Q3
Billing Software
Billing software needs to add following functionalities:
Segregation of customers, such as disconnected, connected, suspended, etc. in the system
Track disconnections and execution of cases for non-payment
Flag any drastic change (increase/decrease) of consumption by the customers, versus the historical consumption
Set actual status for customers, so that not all accounts are considered active.
Give access to the billing system to Ferdowsi district operational staff to generate efficient reports and properly plan everyday work.
Open view only access to the billing system for Chief Inspectors and Controllers through Android devices.
Increase billing system efficiency and productivity
Increase district operations efficiency

4/1/2022
Commercial Operations Improvements
Disconnection and Collection Process
Initiative 1: Establish system based disconnection cycle
Initiative 2: Re-organizing disconnection teams
Initiative 3: Abolishing cash collection on hand
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
DISCONNECTION AND COLLECTION PROCESS
1
2
Establish system based disconnection cycle
Re-organizing disconnection teams
Planning, execution and reporting of the disconnection cycle must be system based. All disconnection orders must be generated from the disconnection cycle, which must be generated through the system on the monthly bases, and all job orders must contain customers detail data and arrears. Disconnection job orders must be generated on a daily bases. Disconnection orders must be planed based on the Feeders and DT-s,
Increase disconnection efficiency, by improving operational plans and strict disconnection of non-paying customers. Targeted number of disconnections to be performed on a daily basis by each team. Disconnection teams will be issued daily disconnection lists, whereby each disconnection team will be allocated at least the minimum number of disconnections, and separated based on feeders and transformers in the areas of their coverage. Daily/monthly, data analyses for disconnections performed by teams in districts.
Abolishing cash collection on hand
Cash collection on hand as a bill payment should be abolished. But before removing this practice, utility company should ensure massive and aggressive public awareness campaign to promote new payment methods and educate customers.
3

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: DISCONNECTION AND COLLECTION PROCESS
1
2
Regional Commercial and Technical Staff
PCA Team
2022 / Q2,3,4
Increase payment discipline and customer response. Improve collection efficiency and decrease outstanding debt.
Disconnection cycle
System Disconnection planning, and execution.
Disconnection Reconnection control.
Increasing disconnection efficiency for non paying customers.
Reorganizing disconnection
Strict disconnections of non-paying customers.
Assigning disconnection team based on the feeder.
Apply process to address the highest debtors, to increase efficiency and effectiveness.
Regional Commercial and Technical Staff
PCA Team
2022 / Q2,3
Regularizing bad debtors, through improving operational plans and strict disconnection of non-paying customers.

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: DISCONNECTION AND COLLECTION PROCESS
3
Regional Commercial Staff
PCA Team
PR
Customer Care
2022 / Q2,3,4
Increase collection efficiency
Decrease fraud and misconduct cases by company employees
Increase customer response rate
Reorganizing collection
Before abolishing cash collection on hand, public awareness campaign should be promoted through all available media platforms in the country, including newspapers, TV and radio stations, SMS-es, DCEN distribution of flyers as notification, also using DCEN Customer Care and PR departments to outreach all customers and guide them on alternative methods of payment.
Such a public awareness campaign might require at least 2 to 3 month, ensuring that most of the customers are ready to switch to the different payment methods.
Downside of this initiative relates to possible decrease of collection efficiency for several months, but after the implementation of strict revenue collection activities, including disconnections of overdue customers, revenue collection trend will be increased.
Mobile cash offices can be introduced to the very rural areas.
Implementation of this project should start gradually under the pilot areas, substation by substation to ensure smooth transformation process. It is also recommended to launch this transformation during summertime to avoid temporary decrease in collection.
This approach will contribute in reducing fraud cases within the company, while having positive impact on company’s reputation.

4/1/2022
Commercial Operations Improvements
Operational Targets (KPI)
on a Regional and District levels
Initiative 1: Performance Targets and Smart KPI-s
Initiative 2: Regional Manager KPI-s
Initiative 3: Regional Commercial Manager KPI-s
Initiative 4: Revenue Protection KPI-s
Initiative 5: Customer Care KPI-s
Initiative 6: District Manager KPI-s
Initiative 7: District Commercial Manager KPI-s
Initiative 8: Zone Manager KPI-s
Initiative 9: Technician / Controller (readers, collectors) KPI-s
Initiative 10: Electricians KPI-s
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
OPERATIONAL TARGETS (KPI)
1
Performance Targets and Smart KPIs
Develop efficient performance management process and smart KPIs for field employees.
The targets should be set for each commercial team at district level including Commercial Manager, Chief Inspectors and Controllers.
KPIs should be prioritized and allocated load for each indicator as follows:
(BE)-Billing Efficiency 25%
(CE)-Collection Efficiency 20%
(RE)-Reading Errors 10%
(DRR)-Debt Recovery Rate 10%
(CRR)-Customer Response Rate 10%
(DE)-Disconnection Efficiency 15%
(LCR-R)-Loss Control and Recovery Rate 10% (Prosecuted cases of energy theft)
During the setting of targets and KPIs peculiarity of service area (Geo-location and condition of LV - power network should be considered).
Performance of each employee will be critically evaluated by reference to his/her individual actions or inactions, the work duties assigned to him/her, the targets should be set by the Regional Commercial Manager.
Note: percentages are selected only in purpose to make clear of content, those figures might be changed based on analysis.
Introducing performance management and performance evaluation process
Target setting and appraisals practices based on delivered energy, losses and collection.
Incentives and measures of discipline as per set KPIs for good/poor performing employees
Performance evaluation policy with ‘SMART’ objectives and KPIs
Targets for District employees based on ATC&C losses by DTs/feeders
Monthly collection targets for District employees circulated to all employees responsible for collection.
2

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: OPERATIONAL TARGETS (KPI)
1
Regional Commercial and Technical Staff
PCA Team
2022 / Q2,3,4
Increase employees discipline and corporate culture.
Performance evaluation process
An individual performance evaluation form for District operational staff which takes into consideration energy delivered to District / Feeder and DTs.
Introduce a process which will institutionalize target setting.
Introduce loss targets by distribution transformers (losses between distribution transformers and linked customers).
It is important to have a balance between penalizing for nonperformance and rewarding for good performance. Such a scheme should also affect all employees and not be limited to the certain level, in order to avoid discouragement of committed and over performing employees.

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: OPERATIONAL TARGETS (KPI)
Sample

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: OPERATIONAL TARGETS (KPI)
TABLE NEEDS TO BE UPDATED

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
OPERATIONAL TARGETS (KPI) ON A REGIONAL LEVEL

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
OPERATIONAL TARGETS (KPI) ON A DISTRICT LEVEL
Monitoring daily targets for each team
Prelisting Customers – working orders
Ensure proper reading
Accurate Billing and verification of exception list
Bill delivery to all customers
Monitoring response
Ordering disconnections and reconnection
Monitoring non paying customers
Monitoring and Performance Evaluation
Decision making on disciplinary measures

4/1/2022
Commercial Operations Improvements
Technical and Financial Bill Adjustments
Initiative 1: Technical and financial adjustments of the bill
Initiative 2: Authorizations and approvals for adjustments
Initiative 3: Inexcusable Adjustments
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
TECHNICAL AND FINANCIAL BILL ADJUSTMENTS
1
2
Technical and Financial Bill Adjustments
Authorizations and Approvals
Ensure Financial and Technical adjustments are done parallel and in accordance with finance department.
Establish process to define reasons for adjustments and impacts in billing and collection efficiency.
Revise / Establish procedure to define hierarchy levels of approvals and authorized persons who will be responsible for adjustments in billing database.
Establish levels of adjustments in kW and amount.
Inexcusable Adjustments
Establish accountability for every adjustment / reasons and responsible persons.
Identify source of error to be followed with adjustments.
Define level, above which every adjustment should be followed with detailed investigation.
3

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: TECHNICAL AND FINANCIAL BILL ADJUSTMENTS
1
2
3
Billing
Finance
2022 / Q,3,4
2023 / Q1
Decrease number of errors in system
Improve billing accuracy
Technical and Financial Bill Adjustments
Review / draft adjustments procedure, to ensure minimizing the errors and adjustments.
Defining errors that need adjustments,
Defining adjustments based on evidences,
Ensuring adjustments are done in kW and amount
Authorizations and Approvals
Establish limits in amount for adjustments approvals in different hierarchy positions,
Define role of finance for authorizing adjustments in billing database.
Define authorized persons who have to do approvals and adjustments.
Billing
Finance
2022 / Q,3,4
2023 / Q1
Improve Internal control and monitoring
Mitigate risk
Inexcusable Adjustments
Establish limits in amount for adjustments to be reported in HQ Inspection for further investigations
Identify suspicious errors and adjustments
Incorporate in the DCEN code of conduct as violation, by describing details
HQ Inspection
Billing
Human Recourses
2022 / Q,3,4
2023 / Q1
Improve responsibility and accountability
Educate employees to follow processes properly

4/1/2022
Commercial Operations Improvements
Customer Alignment
Initiative 1: Customer alignment process flow and Commercial operations interactions with customer alignment
Initiative 2: Planning for field operations to conduct customer alignment
Initiative 3: Planning for customers alignment
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
CUSTOMER ALIGNMENT
Customer Alignment Process
Commercial Operations Interactions with Customer Alignment
Establishing process to align properly the customers with network.
The alignment should be followed by billing department to ensure capturing the changes without delay in the system.
The customer alignment should be monitored and followed up in daily bases by all other commercial operations working directly with customers.
This will help company to maintain and update billing database with customer details and proper alignment in the system.
1
2

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: CUSTOMER ALIGNMENT
1
2
PCA team
Billing
District Commercial Staff
2022 / Q3,4
2023 / Q1,2
Ensure uniform methods for customer alignment
Improve internal control and monitoring
Process / procedure for customer alignment
Draft process and procedure for proper alignment
Development SOP related to data exchange to ensure fast track and efficient upload process of verified customers by distribution transformers as well as efficient uploading of DTs by feeder-line to keep billing database updated to ensure accurate energy balance accounting process.
Establish field templates and reporting methods
Ensure proper verification and approvals before change was effected in the billing system.
Commercial Operations Interactions with Customer Alignment
Planning for field operations to conduct customer alignment
Door to door verification and enumeration/mapping of customers by distribution transformers
Identify recourses who will do field implementation
Identify recourses for monitoring and quality check
Identify positions who will be responsible for accuracy approvals before the data are changed in the billing systems
Adopt itineraries / distribution transformers in the billing database to have possibility to capture all customers in their groups.
PCA team
Billing
District Commercial Staff
2022 / Q3,4
2023 / Q1,2
Improve quality of data collected
Increase responsibility and accountability
Identify source of supply for customers

4/1/2022
Commercial Operations Improvements
New Connections and Efficiency
Initiative 1: Customer application and technical solution
Initiative 2: Technical approval and task updated
Initiative 3: Customer contract and registration in billing database
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
NEW CONNECTIONS AND EFFICIENCY
New Connections
Rapid registration of customers, is in the interest for the company and also for the customers. Every delay to register the customer in time possibly will cost to the company with loss of revenues.
To have effective registration process in place, the existing process will be reviewed and amended to ensure effective registration of all new applications in shortest possible time.
Proper alignment of customers with network in the initial registration time, helps company to maintain the databases and align properly customers.
1

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: NEW CONNECTIONS AND EFFICIENCY
1
2
3
Network Development
New Connections
Billing
Technical Department
District Field Operations
2022 / Q3,4
Increase number of customers and demand
Increase sales and collections
Consumer Application and Technical Solution
After customer application, the deadlines for registration should be in place.
If customer needs technical solution, the deadline for completion should be set. The deadline for establishing network requirements should be given to the customer, and monitored in timelines.
Practice of customer paying for the installation and equipment should be forbidden and regulations strictly followed.
New regulation should clearly define individuals authorized to seal newly installed household meters, in order to avoid manipulation or tampering the meter, as well as encouraging fraud cases.
Technical Approval
The deadline for technical approval of new connection should be defined and measured as KPI, after the customer fulfill all required works. KPI will be completed only after the job task is closed.
Network Development
New Connections
Billing
Technical Department
District Field Operations
2022 / Q3,4
Increase number of customers and demand
Increase sales and collections
Customer Contracts
Every customer contract should contain other network information to ensure proper alignment of customers with the network.
The template to be attached in contracts will be re-designed with required details.
Network Development
New Connections
Billing
Technical Department
District Field Operations
2022 / Q3,4
Identify source of supply for customers

4/1/2022
Commercial Operations Improvements
Enhance Analyses and Data Access
Initiative 1: Process for billing and collection analyses
Initiative 2: Process for Revenue protection analyses
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
ENHANCE ANALYSES AND DATA ACCESS
Analysts for Commercial
Analysts for Revenue Protection
Ferdowsi District need to have in place analysts, who will deal with daily, monthly and quarterly detailed analyses of billing and collection database. This will help company to improve planning and implementation of operations, by focusing recourses in the problematic areas and ensuring improvements. Proper analyses will help company to manage and maintain billing database.
The analysts n revenue protection is necessary for the DCEN to do proper energy, billing and collection analyses and to identify areas with high losses.
This will help DCEN to focus the revenue protection teams in the communities, transformers where the losses are higher. Targeting losses will help company to reduce losses.
1
2

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: ENHANCE ANALYSES AND DATA ACCESS
1
2
PCA Team
Billing
Human Recourses
IT
DCEN Commercial
2022 / Q3,4
Identify weaknesses and gaps in the commercial operations
Help planning and orientation of recourses in the areas where improvement is required
Establish one of the most important function that is missing in DCEN
Billing and Collection Analyses
The new process to conduct proper billing analyses will be drafted and established, to ensure that monthly billing analyses will contain all required information to help planning and implementation of operations and to improve billing efficiency.
The access in all necessary databases and application should be given to the people assigned in the analyses.
The new commercial operations template will be drafted and introduced to keep tracking of all activities and details, to help analyses team.
Training for employees who will be selected to work as analysts will be developed and done by PCA team.
Analysts for Revenue Protection (Losses)
Feeder energy and performance analyses will be established, to identify the directions where the energy losses leakage from the District system.
PCA Team
Billing
Human Recourses
IT
DCEN Commercial
Revenue Protection
2022 / Q3,4
Identify areas where losses are higher and focus planning and implementation of revenue protection activities.

4/1/2022
Commercial Operations Improvements
Customer Care and Public Relations
Initiative 1: Customer Complains and Feedback Efficiency
Initiative 2: Cooperation with Public Relations to improve customer awareness
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
CUSTOMER CARE AND PUBLIC RELATIONS
Customer Complains and Feedback Efficiency
Cooperation with Public Relations to improve customer awareness
The KPI on customer care department, will help company to finish in time the customer complains what reflects immediately in the improvement of customer relations with DCEN. The tracking of complains type is very important, but this information need to be shared with the departments who are responsible when the increase of complaints in specific fields is increased. The increase of complaints should be proceeded to HQ Inspection for verification of the sources.
When the customer complaints increases as results of the non proper information about company services and their obligations or because of errors in the customer side, the customer care in cooperation with public relations should increase awareness campaigns. This is important also to publish the cases of energy theft and arrests done by revenue protection and HQ Inspection department, to serve as awareness and preventive measure for losses.
1
2

4/1/2022
OPERATIONAL IMPROVEMENTS – COMMERCIAL OPERATIONS
INITIATIVES: CUSTOMER CARE AND PUBLIC RELATIONS
1
2
Customer Care
IT and Communication
2022 / Q3,4
Increase efficiency of solving complaints
Address increases to respective services to take actions, improve services and decrease customer complaints
Customer Complains and Feedback Efficiency
Flagging the increase of important complaints
Setting the KPI for customer care department
Establish mandatory weekly, monthly report for management in customer care department.
Customer Care role in Public Awareness
For every new changes, new regulations and requirements, the awareness campaign to inform customers should be in place. In this case the cooperation and coordination of Customer care and public relations is very important.
For loss reduction purposes, the public awareness for customers is very key for the further steps.
For every arrest and cases of energy theft, the publication in time will have positive effects in preventive measures.
Prompt feedback to customers’ complaints is very important to establish cooperation and trust, especially for complaints related to billing, meter readings, and faulty meters.
Customer Care
IT and Communication
2022 / Q3,4
Improves relations with communities
Help in loss preventive measures

4/1/2022
Index to Indicate Losses
Aggregated Technical, Commercial and Collection Losses
Initiative 1: Technical Losses Improvements
Initiative 2: Process for overloaded feeders and transformers
Initiative 3: Load balance management
Initiative 2: Commercial Losses Improvements
Initiative 3: Collection Losses Improvements
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – INDEX TO INDICATE LOSSES
TECHNICAL, COMMERCIAL AND COLLECTION LOSSES
1
2
Technical Losses
Commercial Losses
Implementing proper energy balance in HV, MV and LV, will give possibilities to identify energy who is losing in the network, before going to the end customer. This depend in the quality and integrity of the grid meters in all network levels. Technical losses are attributed to the aged network and poor network configuration and maintenance. Periodical process for inspection of substations and feeders will help company to identify potential overloaded feeders and transformers that need interventions to manage their load. This will help company to decrease technical losses caused by the overloaded or under loaded transformers and also will help to reduce number of damaged / burned transformers.
Commercial losses refers to the difference between the energy send to the customers and energy billed to the customers. Commercial losses are mainly attributed to the energy theft, unauthorized use of electricity, improper reading, billing and other errors in commercial operations.
Collection Losses
Collection Losses results with difference between energy amount billed to the customers versus collection amount. The amount remaining not collected in one period, is counted as collection losses. Collection losses are results of non payment of customers for their consumed energy.
3

4/1/2022
OPERATIONAL IMPROVEMENTS – INDEX TO INDICATE LOSSES
INITIATIVES: TECHNICAL, COMMERCIAL AND COLLECTION LOSSES
1
2
Network
Technical
District Management
Revenue Protection
2022 / Q2,3,4
Define Energy for district, substation and feeder
Identify technical losses in different network levels
Technical Losses Identification / Improvement
Defining energy for district
Defining energy for each substation
Defining energy for each feeder
Energy Balance in MV and LV
Improvement of metering
Overloaded Transformers and Feeders
The process for load check of feeders and transformers
The automated reading data through systems should be analyzed and identify overloaded or under loaded feeders
The deadlines for solution on overloaded or under loaded feeders and transformers should be in place.
Process to assign responsibility and accountability on the network employees in charger for any faulty / burned transformer will be established.
Network
Technical
District Management
Revenue Protection
2022 / Q3,4
Increase accountability and responsibility
Identify areas for improvements
Improve operations

4/1/2022
OPERATIONAL IMPROVEMENTS – INDEX TO INDICATE LOSSES
INITIATIVES: TECHNICAL, COMMERCIAL AND COLLECTION LOSSES
3
4
Network
Technical
Revenue Protection
2022 / Q2,3,4
Define Energy for each region, substation and feeder
Identify technical losses in different network levels
Regularize Load Balance
Process for periodical check of load balance in phases
Ensure proper technical solution for every new connection, to assure that they are connected in the right phases and network, to avoid overloading.
Commercial Losses Identification / Improvement
Energy Accounting in LV
Energy Accountability in LV
Enhance commercial analyses and operations
Establish professional Revenue Protection
Large Power Users RPU
Residential RPU
Improve planning, reporting, monitoring
Improve internal control
Improve billing and adjustments in billing
Improve customer alignment with network
Network
Technical
District Management
Revenue Protection
2022 / Q2,3,4
Increase accountability and responsibility
Identify areas for improvements
Improve operations

4/1/2022
OPERATIONAL IMPROVEMENTS – INDEX TO INDICATE LOSSES
INITIATIVES: TECHNICAL, COMMERCIAL AND COLLECTION LOSSES
5
Network
Technical
Revenue Protection
2022 / Q2,3,4
Improve Collection
Improve Billing
Collection Losses / Improvement
Establish response ratio analyses and reporting
Accurate billing of customers
Decrease zero bills
Decrease estimate billing
Improve planning, monitoring and execution of disconnections and reconnections
Introducing as performance index in Regions and Districts

4/1/2022
Technical Operations Improvements
Energy Balance
Initiative 1: MV Energy Balance
Initiative 2: LV Energy Balance
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
ENERGY BALANCE
Medium Voltage Energy Balance
Low Voltage Energy Balance
Energy balance between substations incomer energy and outgoing feeders from substation will enable DCEN to determine technical losses in the substation level.
To do this, proper alignment of network with substations should be in place, metering in incomers and outgoing from each substation and interconnection between substations should be identified.
Energy balance between feeder and distribution transformers is one of the most important energy balance in the LV for Ferdowsi District. This will enable Ferdowsi District to determine areas where the energy commercial and technical losses are high, based on the distribution transformers.
1
2

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
INITIATIVES: ENERGY BALANCE
1
2
Network
Technical
2022 / Q3,4
Define Energy for each substation;
Identify technical losses in different network levels;
MV Energy Balance
Install modems on all income meter-points to make available access in AMR (automatic meter reading) system for DISCO team, to collect data efficiently and accurately online;
Install “Revers” meters at each boundary points between substations and outgoing feeder-lines.
Re-align feeders with each substation;
Identify all interconnections between distribution substations with possible supply from other feeders;
Ensure that all transmission outgoing feeders have meters and meters are functional;
Updated energy balance database with proper alignment of network to ensure automated energy balance.
LV Energy Balance
Identify feeders with highest energy losses, to have pilot on distribution transformer level for purpose of energy balance in LV.
Ensure that all customers are enumerated and properly align with secondary substations
Network
Technical
Revenue Protection
2022 / Q3,4
Increase accountability and responsibility
Identify areas for improvements
Improve operations

4/1/2022
Technical Operations Improvements
Network Alignment, Energy Accounting and Accountability
Initiative 1: Network Alignment
Initiative 2: Regional and District Energy Accounting
Initiative 3: Improve Accountability for Energy
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
NETWORK ALIGNMENT, ENERGY ACCOUNTING AND ACCOUNTABILITY
1
2
Network Alignment
District Energy Accounting
Proper network alignment is very important for energy accounting, energy balance and identify losses. On a district level, distribution transformers, as well as feeder-line meters are not registered in the billing system, having negative impact on accurate process of calculation of energy balance, as well accurate evaluation of controllers/reader and chief inspector performance.
Proper alignment of network with districts will enable Ferdowsi District to account for the energy delivered. Knowing energy received enables districts to have better planning and implementation of commercial operations.
Improve Accountability for Energy
Defining energy for districts should go parallel with identification of key roles who will be accountable for any leakage in energy or collection based on the energy received. Missing this information, DCEN will not have chance to identify the regional performance and monitor performance efficiency of districts.
3

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
INITIATIVES: NETWORK ALIGNMENT, ENERGY ACCOUNTING AND ACCOUNTABILITY
1
Network
Technical
2022 / Q3,4
Improve and proper energy balance
Proper network mapping
Network Alignment
All technical assets including feeder-lines and distribution transformers must be verified in the field by substations and immediately must be uploaded to the billing system including meter numbers, ratio of current transformers, readings etc.
Same approach must be implemented related to individual customers, especially under area which were recently added to Ferdowsi District such as, Rudaki, Dariokanor, Obkhorez, Orion, etc.
Due diligence and verification of network by feeder-lines to identify actual quantity of distribution transformers by feeder-line.
Also would be appropriate to use GIS system analogue to map all technical assets properly.
Development of SOPs related to data exchange to ensure fast track and efficient upload process of uploading DTs by feeder-line to keep billing database updated to ensure accurate energy balance accounting process.

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
INITIATIVES: NETWORK ALIGNMENT, ENERGY ACCOUNTING AND ACCOUNTABILITY
3
2
District energy accounting.
Ensure proper metering in all network levels to account energy entering and going out of districts, including boundary meters.
Establish process for shared feeders or network, by installing boundary meters or other accurate methodology to share energy.
Define accurate energy for district.
Regional Technical
District Technical
2022 / Q3,4
Define Energy for District
Improve Accountability for Energy
District Manager will be accountable for the energy received.
Billing and collection efficiency targets will be set to each manager to ensure proper billing and collection based on the energy received.
Regional Management
2022 / Q2,3,4
Improve accountability and responsibility to manage properly the energy and collection

4/1/2022
Technical Operations Improvements
Distribution Network Condition
Initiative 1: Improve Distribution Network
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
DISTRIBUTION NETWORK CONDITION
1
Improve Distribution Network
Substations are in need of proper maintenance. The low-voltage network of 0.4KV is in general in poor condition, causing high technical and commercial losses, as well as threat to health and safety. Implementing recommendations will help company to address issues, such as poor condition of conductors, imbalance between phases, overloading and lengthy lines, that can be the reason to have technical losses in the LV grid at above average. Also, distribution transformers that are not fenced and are open to access of the public and children which causes security and safety risks to the population. Existing poor network is also vulnerable to electricity theft cases from the customers. Ferdowsi LV network is in a poor condition and needs serious maintenance.

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
INITIATIVES: DISTRIBUTION NETWORK CONDITION
1
Improve Network Condition
The proper oil and temperature check sensors should be maintained and monitored. Furthermore, the standard maintenance practices should be developed explicitly for the old power transformers.
110/35/10/6kV Injection Substations should have proper size of control building that contains maintenance workshop with necessary equipment, system operation and dispatch.
Allowance of space for bigger control building, outdoor equipment spacing to IEC standards (International Electrotechnical Commission), and addresses the inadequacies of the networks.
Standby generators for emergency power supply to the Injection Substation are recommended to enable the operator carry out necessary switching in case of general power failure.
Improvements in the construction of buildings (water, dust proof) and improvement of ventilations, fire safety and cooling systems at substations.
In medium/long term, capacitor (or reactor) banks should be planned to be installed in injection substations and should be switched to improve power factor of the network, as well as the technical losses.
Regional Technical
District Technical
2022 / Q3,4
Improve network condition to manage properly the energy, decrease losses and increase safety

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
INITIATIVES: DISTRIBUTION NETWORK CONDITION
1
Improve Network Condition
Currently utility company does not have sufficient funds to replace overhead open lines with insulated ABC cables. At this point it is recommended to implement aggressive and massive revenue protection activities, including night inspections to prevent energy theft and meter bypass cases.
As a long-term critical priority, all overhead open lines should be replacement with insulated ABC cables to reduce losses. It is expensive investment, but one of the best efficient option for loss reduction.
Since it’s not possible to rehabilitate entire network in short term due to budget constraints, most problematic network areas should be selected to implement restructuring and rehabilitation activities, to start with the following projects:
Replacement of defective insulators
Replacement of poles
Replacement of defective cross-arms
Replacement of cable and conductor joints
Rehabilitation of weak and dangerous joints
Renewal of necessary aerial conductors
Fencing distribution transformers
In very critical areas to change open overhead lines with insulated ABC lines
Replace thin wire with appropriate fuses on DT feeder-pillars
Regional Technical
District Technical
Revenue Protection
2022 / Q3,4
Improve network condition to manage properly the energy, decrease losses and increase safety

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
INITIATIVES: DISTRIBUTION NETWORK CONDITION
Improve Network Condition
DCEN Technical Department possesses software “Rapid-Standard”, which can be used to identify most critical and weak points of power network and plan development and reconstruction of existing power network in the most efficient way. To implement this recommendation, technical information will be required from districts with highest losses, namely: length of LV lines, distance between transformer and customers, load rate of transformers, capacity of service lines, etc.
This low-cot budget action will contribute to the company to reduce technical losses under rural areas where most LV-grid is in very poor condition.
Regional Technical
District Technical
2022 / Q3,4
Improve network condition to manage properly the energy, decrease losses and increase safety
1

4/1/2022
Technical Operations Improvements
Meter Installation and Replacement
Initiative 1: Improve Metering Infrastructure
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
METER INSTALLATION AND REPLACEMENT
Improve Metering Infrastructure
Meters located within customer premises are exposed to tampering at any time, thus relocation of meters outside customer premises is preferred along with installation of meter enclosures and proper sealing of meters. Also, replacement of old mechanical meters, metering of street lights and locking/sealing meter boxes.
1

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
INITIATIVES: METER INSTALLATION AND REPLACEMENT
1
Network
District Technical
District Commercial
2022 / Q3,4
Accurate energy accounting
Increased and accurate billing
Increased revenue
Decrease of losses
Install meters to all street-light points to reduce losses and to prevent cases of dumping kWh by DISCO employees to unmetered consumers, in order to maintain good billing efficiency artificially.
Revalidate all meters especially installed on commercial customers, as well as all meter boxes should be locked and sealed.
Also, meters should equipped with panel covers, wherever missing.
After customers mapping (Pasportization) process is concluded, it is important to revalidate all meters and start locking and sealing of individual meters.
Also, to develop a plan for meter relocation process from inside of the premises to make meters 24/7 available for access for utility authorities.
As a low budget temporary solution, old used electronic meters can be reused instead of existing mechanical old meters. To do so, need to verify in warehouse secondhand used modern electronic meters, submit to meter-testing laboratory at DCEN regional office for revalidation and further replacement of old mechanical meters in the network, especially under those areas where losses are significantly high.

4/1/2022
Technical Operations Improvements
Improve Energy Demand
Initiative 1: Improve efficiency of new connections / registration
Initiative 2: Network expansion
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
IMPROVE ENERGY DEMAND
Improve Efficiency of new Connection
Improve Efficiency of Network Expansion
Existing new connection process need improvement to enable company to capture in the billing system in the shortest period all the new connections. By increasing number of new connections, the energy demand will be increased also.
The planning and designing of new expansion of network and bring lights to communities who doesn’t have access in the DCEN network is very important. This will help company to bring in the customer billing database more new connections, and increase demand. The update of billing database with expanded network is very important to align properly customers.
1
2

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
INITIATIVES: IMPROVE ENERGY DEMAND
1
2
Network
Technical
Revenue Protection
2022 / Q3,4
Efficient new customer registration
Loss recovery
Financial incentives
New Connection Process
Review and design new connection process and procedure for:
Large power users (KCG)
Customers who apply for new connections in residential category
Illegal consumers found in the network connected during commercial and technical operations.
Network Expansion
Establish process for network expansion for the customers who are newly applying for new connection in the new settlements.
Network
Technical
Revenue Protection
2022 / Q1,2,3,4
Improve accountability and responsibility to manage properly the energy and collection

4/1/2022
Technical Operations Improvements
Technical Loss Study
Initiative 1: Technical Loss Study
Operational
Improvements

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
TECHNICAL LOSS STUDY
1
Technical Loss Study
Technical losses is the portion of the power loss that occurs due to resistance in the distribution network. Technical losses varies substantially depending on the type and age of equipment in a network, but also based on strategic choices about the day to day operation of the network. Energy losses result in loss of revenue for the utilities. Decreasing system losses can lead to substantial savings for the utilities by reducing the amount of energy that goes unbilled.
By identifying the causes of loss on a network and determining the best method for reducing losses, detailed map of system losses will be determined and a cost effective method for reducing losses will be developed.

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
INITIATIVES: TECHNICAL LOSS STUDY
1
Network
Technical
2022 / Q3,4
Decrease technical losses
Improved quality of network and stability
Decreased outages and failures
Financial incentives
The reduction of technical losses contributes to stable, reliable and cost-effective energy supply, strengthening energy efficiency measures and consumer protection. It also betters the financial and environmental situation of a state. In this respect, PCA attempts to identify the common and specific difficulties across DCEN, in order to guide them to work towards reducing power losses via prioritized interventions in response to their power system characteristics.
Measures will be introduced to reduce the technical losses and overcome the existing deficiencies in the system to achieve the overall objectives. Technical losses can be reduced and brought down to acceptable levels but cannot be made zero. The causes of high technical losses are varied and require different remedial measures to be implemented to bring them down to acceptable levels.

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
INITIATIVES: TECHNICAL LOSS STUDY
1
Network
Technical
Revenue Protection
2022 / Q3,4
Decrease technical losses
Improved quality of network and stability
Decreased outages and failures
Financial incentives
Following short-term project studies are required for immediate improvement and reduction of losses in the system:
Network Reconfiguration
Network Reconductoring
Preventing Leakages at Insulators
Employing AVB (Automatic Voltage Booster)
Better Management of Distribution Transformers
Load Balancing and Load Management
Capacitor Installation (Shunt or Series)
Improving Joints and Connections
Laying Additional Link Lines
Increase in HT:LT Ratio
Regular Maintenance of Distribution Network
Creation of Primary Substation

4/1/2022
OPERATIONAL IMPROVEMENTS – TECHNICAL OPERATIONS
INITIATIVES: TECHNICAL LOSS STUDY
1
Network
Technical
Revenue Protection
2022 / Q3,4
Decrease technical losses
Improved quality of network and stability
Decreased outages and failures
Financial incentives
The activities for preparation of a long-term plan are listed below:
Data collection regarding existing loads, operating conditions, forecast of expected loads etc. from Grid substation up to consumer level
Mapping of existing system
Analysis of existing system. (Voltage regulation, T&D losses in existing system, Adequacy of backup system)
Load forecast
Plan for upgrading the network
Technology options including integration of features for modernization of system
Evaluation of various alternatives for least cost optimal solution
Firming up of scope of works
Preparation of cost estimates
Phasing of works and their cost
Financial analysis

4/1/2022
Controlling the Environment
Managerial Skills, Directions and
Integrity of Employees
Initiative 1: Personal managerial skills and courage to take decisions
Initiative 2: Background check in the employment history
Internal Control

4/1/2022
INTERNAL CONTROL – CONTROLLING THE ENVIRONMENT
MANAGERIAL SKILLS, DIRECTIONS AND INTEGRITY
Controlling the Environment
Interviewing the operational managers / staff to ensure that their professional and interpersonal background fits with the assigned positions and responsibilities. The interview will focus on Managerial Skills and Integrity.
The control environment enforce internal control to help DCEN to achieve its strategic objectives, operate its business efficiently and effectively, provide reliable reporting to internal and external stakeholders.
1

4/1/2022
INTERNAL CONTROL – CONTROLLING THE ENVIRONMENT
INITIATIVES: MANAGERIAL SKILLS, DIRECTIONS AND INTEGRITY
1
2
PCA Team
Human Recourses
2022 / Q3,4
Gives value to the company
Bring in managerial positions right people who can perform
Personal managerial skills and courage to take decisions
Ensuring that managers in operations have the skills to handle the scope of their work,
Managers are capable to plan, implement and monitor their daily, weekly and monthly activities.
Have enough knowledge to do their assigned job.
Have courage to take decisions based on the performance evaluation and internal DCEN procedures for the underperforming staff.
Background Checks
Ensuring that they never were involved in the corruptive affairs or misconducts; Ensuring their strong personal and interpersonal ethic.
PCA Team
Human Recourses
2022 / Q3,4
Independent in decision, without being blackmailed from employees who know their integrity

4/1/2022
Risk Assessment
Internal Risk and External Risk
Initiative 1: Improvements and mitigation of Internal Risk
Initiative 2: Improvements and mitigation of External Risk
Internal Control

4/1/2022
INTERNAL CONTROL – RISK ASSESSMENT
INTERNAL AND EXTERNAL RISK
Internal Risk
External Risk
The internal risk in DCEN is reflection of many factors, starting from the:
Weak processes that needs to go through detailed process of re-engineering,
Organogram that needs to have in place more effective re-organization and improve in internal control,
Inefficient use of internal technology,
Not integrated databases,
Poor performance evaluation,
Poor field management and field work execution,
Database clean up and improper alignment of customers with network,
Missing proper alignment of network with region and district to define energy properly,
Weak accountability and responsibility.
The external risk is not very alarming for DCEN, comparing that there is no competition in the same business. The trust and relations with customers is key and may be considered external threat when it comes to the high number of complains for incorrect meter readings and billing, what may lead customers to increase theft cases and decrease payments.
1
2

4/1/2022
INTERNAL CONTROL – RISK ASSESSMENT
INITIATIVES: INTERNAL AND EXTERNAL RISK
1
2
PCA Team
HR
Billing
District Staff
2022 / Q3, 4
Gives value to the company
Improve Internal Control
Increase efficiency and effectiveness of operations
Improvements and mitigation of Internal Risk
Draft / redesign commercial process flows and operating procedures,
Improve organogram
Improve internal control, monitoring and reporting lines
Effective use of systems and improve accuracy of data in the databases,
Intensify audits and conduct regular performance evaluation,
Improve databases with proper alignment of customers, alignment of network within districts.
Improvements and mitigation of External Risk
Improve trust and cooperation with customers, by improving services, decreasing estimation and overbilling / errors during meter readings.
Increase number of awareness campaign for the consequences of energy theft and other vandalization of measuring equipment.
PCA Team
HR
Customer Care
PR
Billing
District Staff
2022 / Q3,4
Independent in decision, without being blackmailed from employees who know their integrity.

4/1/2022
Control Activities
Planning, Reporting and Official Documents
Initiative 1: Planning and KPI
Initiative 2: Daily, Weekly, Monthly Reporting
Initiative 3: Official field templates
Internal Control

4/1/2022
INTERNAL CONTROL – CONTROL ACTIVITIES
PLANNING, REPORTING AND OFFICIAL DOCUMENTS
Planning, Reporting and official templates
To ensure effective monitoring and control in the activities as part of Internal Control, one of the most important tools is appropriate planning and ensuring that plan is implemented effectively. Implementation progress should be monitored with systematic daily, weekly, monthly and quarterly reporting. To ensure the proficient implementation of planning and also appropriate information's in the reporting, the approved official templates should be drafted / re-designed by the DCEN.
1

4/1/2022
INTERNAL CONTROL – CONTROL ACTIVITIES
INITIATIVES: PLANNING, REPORTING AND OFFICIAL DOCUMENTS
1
2
3
PCA Team
Human Resources
DCEN Management
2022 / Q2,3,4
Gives value to the company
Increase efficiency and effectiveness of operations
Planning
Ensure proper planning for commercial operations
Planning to be in line with approved KPI and Targets
Daily, Weekly and Monthly Planning
Monitoring and implementation of planed activities
Reporting
Introduce daily, weekly, monthly and quarterly reporting
Establish reporting lines and internal control
Ensure accurate reporting by verifying samples
PCA Team
Human Resources
DCEN Management
2022 / Q2,3,4
Gives value to the company
Increase efficiency and effectiveness of operations
Official documents – templates / applications
Update – re design applications used in systems;
Draft field templates
Draft Reporting templates
Draft performance evaluation templates
PCA Team
Human Resources
DCEN Management
2022 / Q2,3,4
Gives value to the company
Increase efficiency and effectiveness of operations

4/1/2022
Information and Communication
Regional and District Staff Meetings
Initiative 1: Weekly meetings
Initiative 2: Monthly meetings
Initiative 3: Quarterly meetings
Internal Control

4/1/2022
INTERNAL CONTROL – INFORMATION AND COMMUNICATION
REGULAR MEETINGS
Meetings
It is essential for any company to keep regular meetings to review progress in the operations, priorities and problems faced during implementation. Regular weekly, monthly and quarterly meetings are important to monitor the proper trends and direction of operations and to have possibility to act in time if something is going wrong. Regular meetings improves also team work and commitments to achieve goals.
1

4/1/2022
INTERNAL CONTROL – CONTROL ACTIVITIES
INITIATIVES: REGULAR MEETINGS
1
2
3
PCA Team
Human Resources
DCEN
District
2022 / Q2,3,4
Improves strategy and orientation of company
Increase efficiency and effectiveness of operations
An annual meeting to set the overall strategy
Review annual achievements
Identify gaps and areas for improvements
Improve annual working plan
Redesign company strategy
A quarterly meeting to adjust strategic plans as needed
Review quarterly achievements
Identify gaps and introduce changes for improvements to close identified gaps
Adjust strategic plans if needed in time
PCA Team
Human Resources
DCEN
District
2022 / Q2,3,4
Improves strategy and orientation of company
Increase efficiency and effectiveness of operations
AA monthly and weekly meeting to review performance and solve problems
Review monthly and weekly implementation of KPI and Targets
Review daily, weekly, monthly plans and implementation of plans
Identify challenges and other obstacles to achieve company strategy in time
Identify underperforming areas for improvement
PCA Team
Human Resources
DCEN
District
2022 / Q2,3,4
Improves control
Improves strategy and orientation of company
Increase efficiency and effectiveness of operations

4/1/2022
Monitoring Implementation
Daily, Weekly, Monthly Monitoring of Activities and Operations
Initiative 1: HQ Inspection
Initiative 2: Management
Initiative 3: First line managers
Internal Control

4/1/2022
INTERNAL CONTROL – MONITORING
DAILY, WEEKLY, MONTHLY MONITORING ACTIVITIES
Daily, Weekly, Monthly Monitoring Activities
To ensure quality and assurance in the operations, the monitoring process during implementation plays one of the most important role. Monitoring assures company that daily plans are completed effectively and quality control is in place. Some operations need to have daily monitoring activities while some others may have weekly and monthly monitoring.
DCEN need to incorporate many of the monitoring activities in the process flows for different operations. Monitoring is a process of assessing risks linked to achieving operational objectives.
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4/1/2022
INTERNAL CONTROL – CONTROL ACTIVITIES
INITIATIVES: DAILY, WEEKLY, MONTHLY MONITORING ACTIVITIES
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HQ Inspection
Monitoring implementation of company strategy
Monitoring implementation of processes in operations
Monitoring quality and assurance in the reporting data
PCA Team
HQ Inspection team
Regional Management
2022 / Q3,4
Improves internal control in DCEN
Recommend improvements
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4/1/2022
Conclusions
PCA Target
Takeaways

4/1/2022
TAKEAWAYS
CONCLUSIONS
Although Ferdowsi District reports a high collection rate for billed electricity, the high losses result from only 70% of the electricity being delivered to the region actually being billed to customers.
DCEN’s performance in the Ferdowsi District is most adversely affected by the following key factors, which combine to contribute to the high level of losses seen in the region (+30%):
Inefficient commercial operations, namely poorly implemented disconnection policy which impacts revenue collection;
Insufficient business processes that are not entirely in alignment with the needs of the organization;
Lack of loss localization initiatives to target loss reduction and revenue protection activities;
Lack of a performance management system for staff and a supporting pay/reward scheme;
Absence of some critical training needs for the staff, especially those in more technical areas of operation; and,
Lack of proper checks and balances aimed at protecting revenues and supervising field operations.
For the implementation phase, the PCA team will focus on:
Revamping commercial processes, reducing the reading period to allow more time for revenue management activities and to improve the accuracy of the electricity balance;
Exploiting the metering technology already in place on feeders and distribution transformers to localize losses and correctly account for energy;
Establishing new target setting and appraisal practices, introducing new incentives and measures to improve staff performance and discipline;
Institutionalizing control and revenue protection activities in the region, introducing stronger internal controls; and,
Providing training to staff including daily on the job supervision.
It should be noted that DCEN’s network conditions are sufficient to allow for commercial performance improvement. Metering is not as large a problem given that all customers within the region are equipped with some type of metering device, albeit it may be old or obsolete but there is a least a metering infrastructure in place.

4/1/2022
TAKEAWAYS
CONCLUSIONS
PCA is confident that the main benefits to DCEN as a result of our contribution will be in terms of loss reduction and revenue improvements, which will result from our commercial driven business approach, one which following successful demonstration in the district will be replicated elsewhere in the company.
As can be seen from the graphs below, in the last two years the Ferdowsi District faced decrease in their commercial performance. This effort will focus on putting the district on a new improved performance trajectory.

4/1/2022
TAKEAWAYS
CONCLUSIONS
Importantly, USAID has been successful in demonstrating performance improvements in utilities in far worse conditions than what is found in the Ferdowsi District, and the abovementioned improvement oriented initiatives do not require large scale additional investments from DCEN.
In the first 12 months, PCA anticipates achieving the following loss reduction and revenue improvement figures within the Ferdowsi District. Of course, replication to other regions of DCEN represents the major objective for this effort, given the impact it can have on the overall company performance.
Sample Data