Identify the Key Performance Indicators for supply availability, reliability, consumer service, cost and profitability.

For electricity sector, a variety of measurable KPIs should be identified; defined with a Vision of transforming the Distribution segment so that the wholesome objective of electricity sector reform is achieved. The main properties of these KPIs are stipulated in this section.

1 Measurability and Measurement Unit

The KPIs can be useful if it is clearly defined and it is measurable. It can be expressed in physical, monetary or qualitative terms. However the properties of some issues make them inherently difficult to measure, e.g. the degree of a regulator’s independence, so in the beginning to select KPIs, these Indicators should be avoided and introduced at a later stage, when the system becomes

more mature.

Technical aspects should be measured in generally acceptable convention of measurement unit e.g. Voltage in kV. The system level should be defined without any ambiguity in the beginning and responsibilities assigned particularly at cut-off points or where the responsibility changes e.g. Voltage cut-off points in between transmission and distribution. Qualitative aspects of the steps are, however, often the crucial factor in determining the success or failure of reform, but representation of qualitative indicators

tends to involve a degree of subjective evaluation and judgement.

2 Comparability and Consistency

The KPIs should be consistent in definition, measurement method and data assembly. When KPIs are measured over a period of time, they should reveal the progress of the program and brought some insight of the system for MIS purpose so that corrective action can be initiated the management.

The monetary indicators can be compared cross-sectoral but for the consistency purpose, care has to be taken that accounting system should be same across all utilities. The consistency means that all the data of all the units __________ ___ _________ _________ ____.
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