Urban & Rural customer segmentation in revised Distribution Franchisee bids at MP

Our previous blog Key comparison of revised RFPs for MP Distribution Franchisee compare new and old RFPs for Sagar, Gwalior and Ujjain regions across key DF decision parameters. Here we want to study and compare the customer segmentation closely to better understand the dynamics that played key role for design of new RFPs and separation of urban and rural.

Consumer Segmentation in new and old DF RFPs at MP (Source: pManifold)

Some key observations made from above table are:

1. Sagar and Ujjain towns had 70%+ less number of consumers as compared to respective districts. The new town level geographic area is on average only 2% of the area of the entire district.
2. Sagar town has significant drop (greater than 70%) in terms of most valued electricity consumers namely HT, Industrial, Domestic and Others
3. 99% of irrigation customers falls outside the new revised RFP's town boundaries. This indicate a significant presence of agri customers outside city/town limit. 

The remaining so called Rural area for each region has following characteristics: 

1. Occupy on average 98% of the district geographic area
2. Has on average 60% of input energy consumption and also consumer base
3. Has almost same level of distribution and AT&C losses as town levels
4. Has on average 77% of DTCs
5. Has high mix of consumer base with on average 51% HT, 52% Industrial, 38% Commercial, 59% Domestic, 97% Irrigation and 78% Others. 

This separation of urban and rural,  in revised RFP could again raise DF viability issues from bidders. The coming pre-bid conference on 15th October at Bhopal will soon answer this question. 

Post by Rahul Bagdia @ pManifold