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The objective of the present study is to evaluate and analyse the performance of Indian electricity distribution utilities post the implementation of landmark Electricity Act 2003.

Stochastic frontier analysis (SFA) that incorporates exogenous influences on operational efficiency is adopted in the present study. Specifically, a stochastic frontier production function model with a technical inefficiency effects model (Battese and Coelli, 1995) is chosen as a preferred model. In this model, the function that explains the inefficiency scores is estimated in a single stage with the production technology. This avoids the problem of inconsistency which is possible in the two-stage approach.

The sample involved 52 Indian electricity distribution utilities for seven-year period from 2006 to 2013. Major findings of SFA show that Indian electricity distribution utilities post the implementation of Electricity Act (2003) had, on average, experienced efficiency improvement during the observed period. The overall mean technical effciency score is estimated as 78.5% which indicates that there exist wide scope for effciency improvement in the sector. Further, the empirical findings also indicate that publicly owned distribution utilities obtain average technical efficiencies of 71.3%, which is lower than privately owned distribution utilities, which achieve average technical efficiencies of 85.7%.

Power supply quality indicators such as SAIFI, SAIDI, CAIFI, etc. and unobserved heterogeneity also influence the efficiency analysis of electricity distribution utilities. Hence, these parameters as explanatory variables can be incorporated in the future work.

The results obtained from this empirical study would likely be helpful for utility managers and policymakers to know how well they are performing, and how a better corporate strategy a particular utility can formulate to improve its operational efficiency and also its position in the marketplace.

This paper is amongst the first significant attempts that implement SFA approach to the panel dataset over a longer period of time – 2006 to 2013, so, as to evaluate and analyse the operational efficiency of Indian electricity distribution utilities in a single framework after the enactment of Electricity Act (2003). Unlike previous studies, this study investigates the degree to which various exogenous (or environmental) factors influence efficiency levels in these utilities.

The purpose of this paper is to evaluate the utility-level productivity changes in Indian electricity sector during a period that witnessed structural reforms through several landmark regulatory changes.

A transformed fixed-effect stochastic frontier panel approach accounting for time-invariant unobserved heterogeneity is employed to evaluate the productivity changes, and the inefficiency level in 98 utilities spanning over the years 2001–2010. A flexible translog production model is modeled and estimated, and decomposition of productivity into components of changes in efficiency, scale technology and price effect is computed.

The empirical findings obtained from the present study suggest that the utility-level productivity in Indian electricity sector has generally declined during the observed period of 2001–2010 specifically after the implementation of Electricity Act 2003. Also, it is estimated that the state-level un-bundling of the electricity sector is not significantly associated with utility-level efficiency change. Furthermore, efficiency improvements attributable to increased competition are observed only in the case of smaller gas-based generating utilities.

Earlier studies on the productivity evaluation of Indian electricity industry have applied the non-parametric data envelopment analysis approach, which has several limitations. The novelty of the paper lies in the fact that this paper is one of the first attempts that implement transformed fixed-effect stochastic frontier panel approach and thus disentangle unobserved heterogeneity from inefficiency. Furthermore, it is the only paper that analyzes 98 utilities (51 generating utilities, 38 transmission and distribution licensees and 9 vertically integrated utilities) in a single framework during the period 2001–2010.

This paper aims to explain transitions in a socio-technical system characterized by non-economic entities that influence economic activity, i.e. embeddedness and coalitions. The selected socio-technical system is an Indian electric network with an interventionist policy. Its embeddedness and coalitions drive the transition. The insights from such analysis expand socio-technical transition theory and provide valuable insights to practitioners in their policymaking.

The authors need to observe the effects of non-economic institutions in their setting. Moreover, in India, the regional policies influence decision-making; therefore, selected two Indian states. The two Indian states, along with their non-economic entities, provided diverse analytic and heuristic views.

The findings show that coalitions, with their embeddedness in the absence of any mediating policy systems, act as external pressures and influence innovation and the socio-technical system’s transition trajectory. Their coalitions’ embeddedness follows a shaping, not selection logic. Thereby influence innovations in cumulating as stable designs. Such an approach provides benefits in the short-term but not in the long-term.

The study selected two states and examined two of the four trajectories. By considering other states, the authors can obtain more renewable energy investments and further insights into the transformational trajectory.

The study highlights the coalition dynamics specific to the Indian electric power network and its transition trajectories. The non-economic entities influenced transition trajectories, innovation and policymaking of the socio-technical system.

The study expands the socio-technical transition theory by including embeddedness. The embeddedness brings a shaping logic instead of a selection logic.

The twin objectives of power sector reforms in India – improving efficiency and attracting private investment – are far from being achieved. It is commonly acknowledged that competition in the sector can help achieve the objectives of the reforms, but although the Electricity Act of 2003 promised to usher in competition, even after seven years of its enactment there is very little competition in generation and absolutely no competition in retail supply. This paper seeks to find a road map for the introduction of competition in the power sector in India by discussing and drawing upon the US model of deregulating generation and retail supply whilst simultaneously keeping transmission and distribution under regulation.

The study is a historical analysis of deregulation in the US power sector and its relevance for India by drawing upon both primary and secondary resources.

The introduction of competition in the USA has brought substantial gains for the consumer and India can follow this model by mandating all distribution utilities to procure their future requirement of power through open competitive bidding. For retail competition, the system of provider of last resort (POLR) with POLR price being fixed with reference to market price can be the way forward.

This paper offers some practical and implementable suggestions for introducing competition in the power sector in India.

The Indian power sector is dominated by coal. Environmental awareness and advances in techno-economic front have led to a slow but steady shift towards greener alternatives. The distributions of both fossil fuel resources and renewable energy potential are not uniform across the states. Paper attempts to answer how the states are performing in the sector and how the renewable energy and conventional resources are affecting the dynamics.

The authors employ a two-stage data envelopment analysis (DEA) to rank the performance of Indian states in the power sector. Multi-stage analysis opens up the DEA black-box through disaggregating power sector in two logical sub-sectors. The performance is evaluated from the point-of-view of policy formulating and implementing agencies. Further, an econometric analysis using seemingly unrelated regression equations (SURE) is conducted to estimate the determinants of total and industrial per-capita electricity consumption.

Efficiency scores obtained from the first phase of analysis happens to be a significant explanatory variable for power consumption. The growth in electricity consumption, which is necessary for economic wellbeing, is positively affected by both renewable and non-renewable sources; but conventional sources have a larger impact on per-capita consumption. Yet, the share of renewables in the energy mix has positive elasticity. Hence, the findings are encouraging, because development in storage technologies, falling costs and policy interventions are poised to give further impetus to renewable sources.

The study is one of the very few where entire spectrum of the Indian power sector is evaluated from efficiency perspective. Further, the second phase analysis gives additional relevant insights on the sector.

The Indian power distribution companies are increasingly recognizing franchising for reviving their high loss-making rural pockets. The motivation for franchising has been a reduction of the franchisor's resource scarcity by bringing in operational efficiency and improved service quality to end consumers. However, there is a dearth of evidence on the influence of the franchisee's operations in addressing the resource scarcity of franchisors in predominantly rural areas. This study contributes towards filling the research gap.

A qualitative embedded multiple case study was conducted. The cases comprised two rural franchisees operating towards attaining the common goal. The study was built on archival analysis, personal observations and semi-structured interviews with the franchisors and franchisee officials across the organization's hierarchical levels. A conceptual model based on the review of prior literature formed the initial set of coding for the study. The data were presented based on within-case and across-case analysis.

The analysis revealed that the contract design impacts the requisite operational efficiency achievement. This variation could be elaborated by factors, such as system adaptation across organizational hierarchy, autonomy and independence, review and feedback systems, monitoring, a professional's attitude, bureaucracy, adaption with the local areas, risk sharing, incentives and compensation structure.

The study findings could be generalized to the extent of similar socio-economic conditions, prevailing governance mechanisms and law and orders. Additionally, since the law does not mandate the regulatory commissions to scrutinize the performance of the franchisees, the study was built on data shared by the franchisees and the discom. Further, this study considered the performance of only two performing franchisees. Matching these actualities with the discoveries of this study remains a continuing project as participation of private players is increasingly being recognized. Therefore, the insights drawn from this study could be used to improve the franchise model and can be scaled up across the nation, regions and sectors.

There is a dearth of literature on franchising in electricity distribution. This study is one of the first studies on studying the franchise system in the electricity distribution sector through the application of a well-accepted management theory.

The purpose of this paper is to develop a new model, namely service quality measurement for E_Electricity utility service in Odisha a state of India for the measurement of service quality.

Service quality regulation is an important and timely issue in many industries. The question of governance of power sector is an important question before researchers, policy makers and administrators for the obvious reason of its being an important input for socio-economic development of a nation. Power sector involves complex activities like generation, transmission, distribution and final delivery of service to end-users, i.e. consumers. Initially, private sector was the main player in the power sector when the electricity came to be used in India during the pre-independence period. The trajectory of power industry, from its inception to the present, has been complex rather than being simplistic for the reason that the pendulum of industry's ownership and regulation swings between privatization and nationalization. The consumers are main sufferer in this type of situation, and the satisfaction level decreases day by day. So government has changed it's strategies by implementing e-governance to electricity sector for achieving maximum consumer satisfaction. The first step to e-governance is change management within the government, enhancing citizens' access to information and improving government-to-citizen (G2C) interactions. This work seeks to propose a theoretical scale to measure e-government service quality and validate the measured instrument for electricity utility service by structural equation modeling.

The results indicate that basically the E_electricity service has a positive and direct influence on dimensions (web site design, fulfillment, privatisation and information).

Only Odisha state is considered for measuring online service quality in electricity utility service.

As the electricity utility industry is doing monopoly business in India and all states basically in Odisha due to that the customer dissatisfaction is the most important obstacle. So the policy makers must concentrate on the dimensions and the sub-dimension before regulating new policies.

The purpose of this paper is to introduce a prospective market monitoring system (MMS) for surveillance of Indian power market using a set of new market monitoring indices.

It is necessary for the system regulators and policy makers to identify the potential market power and find ways to mitigate them to improve the market efficiency. The simple way to curb market power is the capping of bidding price to several times the average price of electricity. However, this approach is not ideal as it could mask the real market trading situation. The best way for the regulator is to identify which particular generators are exercising market power and deal with them individually.

Identification of major activities under MMS and effectiveness of new market indices have been established through quantitative analysis.

The MMS will provide in‐time warning signals and identify the suppliers taking maximum unfair advantage which needs intense scrutiny by monitoring unit.

Very few works have discussed detail market monitoring issues for the markets those are in their early stages of development like Indian electricity market. Indian Energy Exchange as a first power exchange in India became operative from June 2008, therefore, it is very important to develop an effective MMS.

The purpose of this paper is to develop an interpretive structural modeling (ISM) of barriers related to viability of Power Distribution Companies (discoms) in India.

Feedback from the Experts of Indian power sector has been taken as the basis to develop the model for barriers to viability of discoms, where major barriers have been identified through extent review of literature and through discussions with experts in the power sector keeping the viability of discoms in focus, and the hierarchical structure of barriers has been developed using ISM.

An interpretive structural model has been developed for discom-related factors (barriers) affecting its viability. The hierarchical structure portrays the impeding factors of viability and showcases that lack of regulatory effectiveness, inadequate tariffs and lack of government’s expenditures on power sector are the key barriers.

This paper has implications for both practitioners and academics. For practitioners, it provides an indicative list of major barriers affecting the viability of Indian discoms. For academics, the methodology used provides a mechanism to conduct an exploratory study by identifying the key variables of interest and emphasizing their interactions through hierarchical structures.

The proposed model for barriers to viability of discoms developed through qualitative modeling technique is a pioneering effort altogether in the context of power distribution companies in India. Understanding contextual relationships among key barriers to viability of discom’s is neglected in existing literature, and this paper makes a contribution in this regard.

Resulting from large government interventions, India could attain 99% electrification in March 2019. However, the consequences are revenue losses due to lack of real-time efforts in bringing operational efficiencies of the power distribution companies (discoms). Distribution franchisees operate as agents to the discoms for performing their contracted functions in smaller high-loss making areas under jurisdiction of a discom. This study aims to explore how rural franchisees help or hinder requisite results.

A qualitative embedded multiple-case study was conducted. The case focused on two franchisees engaged in metering, billing and collection functions of a high-loss-making rural area dominated Indian state-owned discom. Data were collected through documents, personal observations and semi-structured in-depth interviews with franchisee employees situated at different levels of the organizational hierarchy. A review of pertinent literature and government documents was utilized in forming the codes for collecting the data.

It could be argued that franchisees with strong financial capability, human resources support and monitoring and control facilities could contribute effectively in generating revenue from rural and interior electrified mass. The analysis revealed various challenges serving as hindrances in achievement of contracted targeted outcomes. The analysis resulted in highlighting factors that if implemented could result in the needed outcome.

This study could be generalized only to similar socio-economic conditions. The findings could provide policy makers with valuable insights to emphasize on creating win–win situations for all the stakeholders to encourage franchisee participation.

This study is unique, as there is a dearth of empirical evidences relating to operational efficacies of these franchisees.