A balanced scorecard to enable electricity distribution sector reforms in India

Abstract

The performance of the State-owned electricity distribution companies (DISCOMs) that distribute 96% of the electricity in India is critical for the country’s energy security. However, the current studies are not suitable for assessing the performance of India’s DISCOMs in an integrated manner since their underlying models are fragmented. This study presents the development and application of an integrated FOBC framework which is a balanced scorecard including 32 key performance indicators related to finance, operations, business processes, and customer service. This framework is used to benchmark the performance of 40 DISCOMs in 17 States on a like-to-like basis leading to the identification of nine DISCOMs for restructuring. The FOBC framework can be used by the regulators and the government to benchmark DISCOM performance in a holistic manner. This study will be useful for policymakers to implement power distribution sector reforms to enhance energy security while decarbonizing the power sector efficiently.