The Central Electricity Authority (CEA) has released new “Guidelines for Benchmarking of Operation & Maintenance (O&M) Norms for Distribution Utilities.” These guidelines were published on January 30, 2025.
The guidelines have been developed after extensive consultation with stakeholders. They aim to improve the performance and efficiency of power distribution utilities across India.
This initiative follows the Ministry of Power’s notification of the Electricity (Second Amendment) Rules, 2023, which mandates that State Commissions determine O&M norms for distribution licensees based on CEA guidelines.
Focus on Benchmarking and Best Practices
The guidelines emphasize benchmarking as a crucial tool for utilities to identify areas for improvement and adopt best practices. Benchmarking involves comparing a utility’s processes against leading organizations to identify strengths and weaknesses and drive continuous improvement. The guidelines outline a step-by-step benchmarking process, including:
- Identifying key maintenance performance variables
- Selecting information sources
- Collecting and measuring data
- Normalizing and adjusting data
- Analyzing data against top performers
- Implementing changes and improvements
Comprehensive O&M Framework
The guidelines provide a comprehensive framework for O&M practices, covering various aspects of distribution utility operations. Key areas addressed include:
I. Maintenance Practices
The guidelines detail different maintenance strategies, including preventive, predictive (condition-based), and reactive (breakdown) maintenance. They stress the importance of planned maintenance activities to minimize unplanned outages and equipment failures.
II. Equipment-Specific O&M
Detailed O&M benchmarks are provided for major equipment in 33/11 kV substations, distribution transformers, overhead lines, and cables. This includes specific maintenance activities, inspection schedules, and performance indicators for each type of equipment.
III. Asset and Inventory Management
The guidelines highlight the importance of effective asset management and inventory control for optimizing O&M activities and minimizing costs. They also touch on the role of Enterprise Resource Planning (ERP) systems in streamlining these processes.
IV. Safety Management
Safety is paramount, and the guidelines include a dedicated section on safety management practices for O&M personnel.
V. Roles and Responsibilities
Clear roles and responsibilities are defined for various levels of O&M staff, from field linemen to senior management, ensuring accountability and effective execution of maintenance activities.
VI. O&M Expenses
The guidelines offer principles for managing O&M expenses, including cost optimization strategies and regulatory considerations.
