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Consumer-centricity: An introduction to access to information within the electricity sector (Part 2)

The previous issue outlined the key features of a consumer-centric approach, including understanding consumers and providing personalised solutions, in both the private and public sectors. This issue will focus on the consumer-centric approach that an electricity utility company can use to improve customer satisfaction. It will also highlight the importance of effective communication in establishing a strong relationship with consumers.

What is an electricity utility:
In India, an electricity utility refers to a company responsible for generating, transmitting, and distributing electricity. These utilities play a crucial role in ensuring that power reaches the end consumer. India’s electricity sector comprises central, state, and private utilities.  Companies like Tamil Nadu Generation and Distribution Corporation (TANGEDCO), Tripura State Electricity Corporation Limited (TSECL), and Chhattisgarh State Power Distribution Company Limited (CSPDCL) are state utilities which operate across various segments, including: 

  1. Generation: The utilities generate electricity from various sources, including thermal plants, hydroelectric projects, and renewables.
  2. Transmission: They manage the national grid, ensuring power movement across long distances.
  3. Distribution: Utilities deliver power to homes, businesses, and industries, maintaining infrastructure like substations and power lines.

Distribution companies (DISCOM) are the public facing unit of a power company 

An electricity distribution company plays a crucial role in the electricity supply chain and is particularly important to consumers. Consumers directly engage with DISCOMs for services such as electricity service connection, metering, billing, customer support, and addressing power grievances. These interactions are frequent and often urgent needs. 

On the other hand, generation and transmission companies are not involved in interacting with consumers. They focus on electricity generation, such as operating power plants, and long-distance transmission through substations. Although these functions are essential for ensuring overall electricity supply, their limited interaction with the public places a different set of demands on their working. 

Why should DISCOM have a consumer-centric approach?

In India, most Distribution Companies (DISCOMs) operate as monopolies primarily focusing on achieving financial stability. Monopolies place a high emphasis on compounding profits, often prioritising financial gains over other considerations. Not many recognise the importance of maintaining a strong consumer focus to support their financial objectives, though it is well-known that DISCOMs with higher customer satisfaction levels perform better financially. 

Ways for DISCOM to prioritise consumer-centric initiatives:

A consumer-centred  DISCOM actively engages  with consumers, and works to serve with excellence. 

  1. Service Quality: Consumers value reliable electricity supply. DISCOMs are required to ensure consistent voltage levels and continuous power supply,  timely meter readings, prompt response to outages and transparent reporting on service reliability  as these are highly valued by  consumers.
     
  2. Flexible and Transparent Billing: Offering a transparent bill structure and flexible payment options can enhance consumer satisfaction. Providing detailed breakdown of charges and usage patterns in plain language and in a clear and uncomplicated manner can help consumers better manage their energy consumption and expenses, while also building accountability. 
  3. Complaint Resolution: Establishing a responsive customer support system that resolves issues promptly and courteously is crucial. This includes training staff to handle consumer inquiries effectively and providing clear escalation paths for complaints. When customers ask questions, it's important to respond quickly and provide specific timelines for resolution. Keeping customers informed about the progress of their inquiries can help mitigate dissatisfaction. 
  4. Enhanced consumer engagement: Utilities have been lagging when it comes to customer engagement compared to other sectors. DISCOM communication strategy can lead to effective engagement with consumers. For example, regular updates on service interruptions, billing transparency, and proactive communication about maintenance schedules will keep consumers engaged.
  1. Making sure consumers are well-informed about the information provided by DISCOMs requires using different communication channels -  telephone calls, sending emails, using SMS, and leveraging social media must all be employed to reach out to consumers. 
  1. Tailor communication messages to address specific consumer needs and preferences. For example, if a consumer’s energy consumption is increasing sending him/her energy efficiency and conservation tips might reduce their consumption  
  1. Adaptation to changing consumer needs: Constantly collecting feedback and adjusting services according to consumer preferences is crucial for DISCOMs. To enhance customer satisfaction , the DISCOMs must train employees to actively listen to customer concerns, and understand and address them proactively. Enabling direct communication channels for consumers to seek assistance, and provide feedback will help to promptly address their needs.  

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