Single Point Supply for the society vs Individual SEB Supply for the residents

Many of the societies have single point supply for the whole of society from the SEB and then they are responsible for the distribution and billing to individual residents. The more traditional option is that the residents in a society have individual connections from the SEB. Which one of them is better for the residents and the society.

 

The bulk supply (single point) supply option is very convenient to the SEB and many of them consider it to be the best option. They get assured payment from the bulk consumers and have an overall lower transaction costs as they need to deal with one bulk consumer rather than 500 individual consumers. There are also costs associated with losses and maintenance which get transferred to the society and there is significant saving for the society.

From the residents and RWA point of view, if the electricity supply from the SEB is reliable (centralized full DG back-up is not required) and the SEB operations are efficient, the model of individual SEB supply of the residents is an ideal model.

If the residents need significant back-up, the individual SEB supply is not a good option. The reason is that in a bulk supply option, only one distribution network is needed to deliver and bill the electricity (whether SEB or DG). While in the scenario of individual SEB connection, a parallel infrastructure is needed for supply and billing of the DG power. Thus the overall capital and maintenance costs are much higher.

The bulk supply option provides the society an option to implement a protection system which may not be provided by the SEB.

The bulk supply may also provide some savings to the residents as the bulk supply rates are lower than individual supply rates.

The bulk supply option does provide the society and the residents additional flexibility but at the cost of additional responsibility. They are not dependent on the SEB for the individual resident infrastructure and the processes such as meter replacement, fuse replacement, billing complaints; payment convenience etc. can be handled at the society level.

Bulk supply also provides flexibility of buying power on open access, renewable power etc. Many societies are considering these options.

To summarize, in an ideal scenario, individual SEB connections are better but in practical scenario bulk connections are better. The bulk connections do provide more responsibilities to the society. The society does need to have a system such as SmartCommunity.in to manage the distribution of electricity.

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