Power distribution reforms

Abstract

Purpose Distribution and retail supply of electricity is the most important cog in the power sector value chain. Despite several reforms, most of the Discoms are facing huge financial losses and resorting to a tariff hike which may not be a viable solution. The purpose of this paper is to analyze a case study of Tata Power Delhi Distribution Ltd (Tata Power-DDL) which inoculated itself against the financial ills, and demonstrates how a utility can nurture itself and manage the key stakeholder expectation with innovation, ethics, safety, transparency and agility being its cornerstone. Design/methodology/approach The study analyses the situation for Tata Power-DDL which needs to realign its strategy to meet emerging sustainability challenges. The case covers the aspect of strategic management, strategy formulation and change management system deployment using tools such as strength, weakness, opportunities, threat (SWOT), political economical social technological legal environment (PESTLE), critical success factor and key performance indicator cascade. It touches upon the emerging need for distribution utilities to look beyond economic signals and take social and environmental impacts into the strategy planning process. Findings It viewed the distribution business beyond its conventional responsibility of making power available to consumers and to provide quality service. A well thought out adaption and adoption of upgraded technology can be a game changer even for a market which is highly regulated and dominated by players in their respective defined territories. Research limitations/implications Since the sector is regulated and each utility has a pre-defined set of area of operation with no competition within its licensed area, hence, there is a limited application of applied strategy tools such as SWOT and PESTLE. Practical implications Since the sector is regulated and each utility has a pre-defined set of area of operation with no competition within its licensed area, hence, there is a limited application of applied strategy tools such as SWOT and PESTLE. Originality/value India as a market is evolving in energy space and utilities are still struggling to have a fundamental structure to meet the agenda of “power to all.” The paper provides the valuable insights into the process of environmental scanning and formulation of organizational strategy to meet the needs of existing and future energy markets.

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