Electricity plays a central role in improving the quality of life in India. Even those with access to electricity in India do not always have a reliable supply. Currently protecting electricity consumer’s interest is another challenge in India. Good quality electrical service is linked to effective end use. The performance measures of state owned power utilities (SOPUs) are very important aspect of consumer services in distribution reform. This performance benchmarking process can reveal potential areas where a particular power utilities performance is lacking and point to directions for further detailed examination to identify any underlying contributing causes or mitigating factors to the performance gap. Performance evaluation of SOPU is vital quality of electricity service throughout the world. While the forms of performance benchmarking vary in the United States, Europe, Japan, and other developed countries. The standard of performance is the necessary feature for developing country like India. Utilities use quantitative measures to compare operational performance among their distribution units to assure that they provide a uniform quality of service, anticipate problems, guide capital expenditures, and increasingly to monitor their competitiveness towards customer services. Regulators rely on cross-utility studies of service quality and cost of service for a wide variety of functions every time they consider a utility’s application to increase consumer tariffs. The paper endeavored to develop a set of matrices and evaluation methods for measuring performance efficiency of SOPUs with respect to their peer group. Best and efficient SOPUs are counted and helped for further improvement for less efficient SOPUs.
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