EFFECTIVE REVENUE BILLING AND

COLLECTION SYSTEM(PPP MODEL)

(100% cost recovery)

22nd June , 2011,

HMWSSB

-K. Ashok ReddyExecutive Director

Water Supply Sewerage

Water Works Department,Govt. of Andhra Pradesh

Municipal Corporation of Hyderabad

Hyderabad Metropolitan

Water Supply and Sewerage Board

1987

1 November 1989

Transferred with staff

HMWSSB-Evolution

Constituted on 1 Nov 1989

under the Hyderabad

Metropolitan Water Supply

& Sewerage Act 1989

HMWSSB

Services of

Hyderabad Metro Water Supply and Sewerage Board

(HMWSSB)

Supply potable drinking water

Sewage disposal & treatment

Planning, Designing and execution of water supply and sewerage works

HMWSSB

SERVICE AREA - 688.20 Sq.kms

Erstwhile MCH area - 169.30 Sq.kms

Peripheral & adj. Municipal areas - 518.90 Sq.Kms

MCH & Peripheral Areas

HMWSSB At a Glance

SNAP SHOT DETAILS OF WATER SUPPLY

Population served : 85.00 Lakhs Total Quantity Available : 340 MGD No of Connections : 7.43 Lakhs

(5.83 + 1.60) Monthly Revenue : Rs.32 Crores Total No of Employees : 5300

Length of Raw Water Mains : 84 Km

Length of Treated Water Mains : 318 Km

Length of Distribution Network/ : 3500 Km

Pipe material : RCC/CI/DI/PSC/MS

Installed Capacity of

Treatment System : 1568 Mld

HMWSSB

SOURCES OF WATER SUPPLYThe main surface sources of water supply for the city from five impoundments on the four rivers:

Osmansagar on River Musi

Himayatsagar on River Esi

Manjira Barrage & Singur Dam on River Manjira

Nagarjunasagar on River Krishna

Source Name River Year

Distance

from city

“Km”

Capacity

Drawls

( Mgd)Installed

(Mgd)

Storag

e

(TMC)

Osmansagar Musi 192015

(Gravity)

27 3.90 18

Himayatsagar Esi 19279.6

(Gravity)

18 2.967 17

Manjira –

Phase I & IIManjira

1965 &

1981

58

(Pumping)

45

(15+30)1.500

45

Manjira –

Phase III & IVManjira

1991 &

1994

80

(Pumping)

75

(37 + 38)30.00

75

Krishna Ph-I Krishna 2004/05

116

(Pumping /

Gravity)

90

1.50

90

Krishna Ph-II Krishna 2006-08

116

(Pumping /

Gravity)

90

90

Total 346 39.816 338

OSMANSAGAR

HIMAYATSAGAR

MANJIRA

SINGURKDWSP Phase-I & II

6

DEMAND Vs SUPPLY (in MGD)

78 87119 130

405430

588

650

335 335 335 335

0

100

200

300

400

500

600

700

2009 2011 2021 2031

Horizon Years

Su

pp

ly in

MG

D

Population (Lakhs) Demand (Mgd) Supply (Mgd)

7

IT Applications Status

S.No Name of Module Status Purpose

1 Single Window Cell Working New connections Management

2 Revenue Billing System Working Revenue, Billing & Collection

3 Metro Customer Care Working Customer Complaints handling

4 Automatic Vehicle Tracing

System

Working Tracing the trips of water tanker

5 Online Billing& Collection

System

Working Billing & collection through epos

6 Water Quality Monitoring

System

Working Pollution samples entry and monitoring

7 SCADA System Working Water audit, accountability and monitoring

reservoir levels, flow and chlorine levels

8 SMS alerts to customers Working Bill, collection, Payment reminder SMS

alerts to Customers

9 Inventory management

System

working Stores management

10 Tankers collection

automation

working Tankers accountability

11. Pay Role working Pay role for all employees

CASE STUDY OF HMWSSB

100 % Cost Recovery

Initiation

Demand Vs Collection

167.1

8

200.9

7

225.9

271.7

4

326.4

4

393.1

1

410

378.6

338.27

240.31

231.45

215.96

171.33

161.4

7

0

50

100

150

200

250

300

350

400

450

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Finincial Year

Rs

in

Cro

res

Demand Collection

Collection

167.18

200.97

225.9

271.74

326.44

393.11

161.47

0

50

100

150

200

250

300

350

400

450

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Finincial Year

Rs in

Cro

res

Collection

2010-11

Financial Year Average

Monthly

Demand

Average

Monthly

Collection

2005-06 20.25 18.70

2006-07 23.91 20.85

2007-08 26.60 24.21

2008-09 28.84 23.29

2009-10 31.92 27.23

2010-11 34.86 31.00

Average Demand Vs Collection in the Year 2005 to Mar 2011

Docket Wise - Quality of Billing

D

iv Sec Docket Meter Reader

CAN

s

Bille

d

UnBille

d

Non-

working

(from last

month)

Non-

workin

g (New)

Mete

r

Fixed

Metere

d

Hous

e

Lock

ed

Un-

metered

6 611 0611-D01 M. Dhan Singh 1887 1879 8 340 3 0 0 1 1535

6 611 0611-D02 Bhavani & Co 1413 1344 69 37 1 0 0 89 1217

6 611 0611-D03 K.Srinivas 816 773 43 136 40 1 352 230 14

6 611 0611-D04 Hema Reddy 1454 1172 282 230 18 0 444 470 10

6 611 0611-D05 Bhavani & Co 1190 1103 87 88 11 6 610 386 2

6 611 0611-D06 Bhavani & Co 934 924 10 110 46 2 434 329 3

6 611 0611-D07 Bhavani & Co 993 960 33 121 15 0 335 486 3

6 611 0611-D08 Bhavani & Co 1039 844 195 159 25 6 465 170 19

9726 8999 727 1221 159 15 2640 2161 2803

Pipe Size and Meter Status Wise Billing Analysis

DIV SECTION SECT Pipe Size (mm)

METER

STATUS No of CANs

Average Charged

Qnty (KL)

6 JUBILEE HILLS 0611 15 L 1437 51.28

6 JUBILEE HILLS 0611 15 M 2573 96.90

6 JUBILEE HILLS 0611 15 R 1386 28.22

6 JUBILEE HILLS 0611 15 U 2938 13.91

6 JUBILEE HILLS 0611 20 L 208 114.46

6 JUBILEE HILLS 0611 20 M 694 162.08

6 JUBILEE HILLS 0611 20 R 207 60.83

6 JUBILEE HILLS 0611 20 U 12 36.42

6 JUBILEE HILLS 0611 25 M 62 110.74

6 JUBILEE HILLS 0611 25 R 15 46.53

Revenue Billing system

• Historical Background – Erstwhile Water

Works Department.

• Deficiencies in the Old System.

• Introduction of New System i.e. ERP –

Impact and improvements.

Erstwhile Water Works Department

• Tariff determined by the Government and heavily subsidized.

• No relevance to cost recovery.

• Deficits financed by the Government through non-plan grants.

• No setting of targets for raising demands and collection.

• No monitoring of demands and collections.

Cont…

• No performance evaluation of Meter Readers

• Manual maintenance of customer ledgers, issuing of Bills and receipts

• Tampering of records and delayed action on misappropriations/manipulations

• No follow up of arrears

• No analysis of any data for taking corrective action

Cont…

• Periodical review of arrears and matter

taken up with Government for additional

budgetary allocation to various.

• departments for clearing the dues.

• Drastic improvement in the collection

efficiency.

Innovative Initiative steps taken by HMWSSB

as a part of Management Development

concepts

Significant achievements are as follows:

• Restructured the Organization staffing

pattern on scientific basis

• Rationalization and simplification of tariff

structure

Cont…

• Identified training needs for all levels of

personnel and drawn a comprehensive

training action plan.

– Orientation module implemented for all

categories of employees including literacy

programme.

– Core Module partly implemented, balance

underway.

Reasons for poor cost recovery

Poor database maintenance.

Poor willingness to charge

Poor willingness to pay.

No scientific analysis.

No monitoring between supply of water and

revenue generation.

Can we afford to have the status quo?

Increasing pressure on infrastructure

Service demands of growing population

Deteriorating financial position

Need to tap capital markets for funds

Insufficient resource mobilization / utilization

Lack of information access /evaluation

Self-reliance & self-governance

Revenue MIS

Analysis of nearly 725 thousand customer accounts is possible and is beingdone

Gives the management information on which division/section is slacking in

Bill generation

Collection

Never paid cases

No of customers paying and

A host of other information which otherwise is not possible obtain manually

Meter reader performance (every transaction) online & offline

Performance Reports

www.hyderabadwater.gov.in

Introducing of AMR (Automatic Meter Reading)

www.hyderabadwater.gov.in

Upgradation and Introduction of ERP

computerized Revenue Billing System

• Consultants appointed for ERP software

development including advise on hardware

configuration.

• All collection counters are fully on-line (46

counters)

• By creating dockets, monitoring becomes

simple and effective at meter reader level.

Cont…

• The new Computerized billing system focuses

on MIS for taking corrective steps for eg.

– Meter Reader performance : to review coverage

and working meters in the areas covered by each

Meter Reader

– Water consumption : based on consumption

recorded in the bill; this would be reconciled with

bulk meters once linking is complete.

Cont…

– Based on water reconciliation facilitates

identification of areas of maximum UFW

– Meter status : working & non-working meter

analysis

– Collection efficiency & analysis of outstanding

– Billing and collection pattern

– Both billing & collection with the same

machine( Off-line & On-line)

Extent of Non-revenue

Water

Quantity of Water Billed

MonthBilled

Can‟s

Daily

Consumed

Qty. (LKL)

Daily

Consumed

Qty (MGD)

Daily

Charged Qty

(LKL)

Daily Qty

(MGD)

November – 2010 722967 6.1269 134.79 6.90 151.86

December - 2010 721511 6.20 136.57 6.85 150.52

January - 2011 724622 6.58 144.70 7.28 160.36

Let us take up strategies

Why should we have a strategy

To have clarity of thought

To have clarity on process

To have clarity on goals

To have clarity on outcomes

What are the strategies

Balancing Income Vs Expenditure

Mobilize resources for Capital works

Mobilize resources for ageing assets

Tap capital markets

Improve credit worthiness

Improve service levels

Balancing Income Vs Expenditure

Income

Increase resource base ( No. of people

paying tax)

Identifying additional avenues of income

Levy of full user charges

Periodical increase in tariff to meet

incremental expenditure

Improve service levels

Ensure reliability of service

Ensure quality of service

Ensure value for money

Create demand

Set-up bench marks

Adopt best practices

….. all these lead to higher willingness to pay

Planning for a better billing system )

Sound Metering system

Replace unused & inaccurate meters

100% metering

Bulk flow meters for reconciliation

Computerization

Procurement of Hardware and software

Conversion of manual ledgers to

computer media

Operational training

Planning for a better billing system

Resource Planning

Organize meter readers and inspectors

Meter Reader‟s Plan, built in checks for

readings

MIS

Continuous monitoring using statistical

data

Interventions

Computerized Revenue MIS

Daily Reviews

Section / Docket wise Targets for revenueCollection

Never paid cases – incentives

OTS & VDCS

„Pajaa vani‟ Program

Conclusions - specific to billing

• Fix quality meters for accurate reading -increase consumer confidence

• Provide built in checks with the system for cross verification of readings

• Reduce or eliminate collusion

• Use statistical data for analysis and diagnose the problematic areas

• ashok_korem@rediffmail.com

• ashok.korem@gmail.com,