Running a power distribution company is no walk in the park.
Every single day, you're juggling challenges, rising costs, customer issues, and ensuring you're on the right side of regulatory requirements.
It feels like you're constantly in a battle, trying to keep up and meet expectations.
How do you know if your effort is paying off?
Without the Right Metrics, you're Blind-Folded
Without the right metrics, you're essentially flying blind.
Think about it... You can work as hard as you want, put in the hours, and push through challenges. However, if you’re not measuring the right things, you might as well be throwing darts in the dark, hoping you hit the target.
The key to success in this field is tracking the numbers that truly matter. The ones that give you insight into where you're losing money, where your biggest problems lie, and where you should focus your efforts.
I learnt that these metrics can make or break your business. The right data saves you from costly mistakes, helps you spot issues before they become major problems, and most importantly, enables you to serve your customers better.
Not all metrics are created equal. Some will give you clarity. Others will offer peace of mind. But only a select few will really drive your success and move your company forward.
I know it can be overwhelming when there are so many metrics to track, and it’s easy to get lost in the noise. But trust me, you can’t afford to ignore the ones that will truly impact your performance.
The Essential Metrics you should not Ignore
Here are the metrics that really matter and that you absolutely need to track:
1.Total Energy Delivered (GWh)
- How much electricity are you supplying to customers?
- The more you deliver, the better your service reliability
- Tracking this helps you see if you’re meeting demand consistently.
2. Service-Based Tariff Feeder Availability (%)
- How often are your feeders available based on the service tariffs?
- Higher availability means better service, and that’s exactly what your customers want
- Keep an eye on this one.
3. Billing Efficiency (%)
- How much of the energy you’ve supplied actually gets billed?
- The higher this number, the more revenue you’re capturing
- If it’s low, you might have billing leaks to fix.
4. Revenue Collection Efficiency (RCE)
- How much of your billed revenue actually makes it to the bank?
- The higher the RCE, the healthier your cash flow, and the better you’re able to reinvest in your business.
5. Aggregate Technical, Commercial & Collection (ATC&C) Loss (%)
- This metric combines energy losses, theft, and collection gaps
- The lower the number, the healthier your financials
- Addressing losses across board can significantly improve your bottom line.
6. Customer Satisfaction Score (CSAT)
- How happy are your customers with your service?
- A high CSAT means loyal, paying customers
- A low score could signal service issues that need immediate attention.
7. Cost per KWh (KiloWatt-Hour Supplied)
- How much does it cost you to supply each unit of electricity?
- Tracking this helps you find opportunities to reduce costs and improve profitability without sacrificing service quality.
8. Customer Average Interruption Duration Index (CAIDI)
- How long are your power outages lasting?
- The shorter, the better
- Customers want quick fixes, and this metric helps you assess how well you’re responding to outages.
9. System Average Interruption Frequency Index (SAIFI)
- How often are outages happening?
- Frequent outages lead to unhappy customers
- This metric tells you where your grid might need some attention to improve reliability.
10. Fault Resolution Time
- How quickly do you resolve technical issues?
- The faster the fix, the happier your customers will be
- Tracking this helps you improve efficiency and reduce downtime.
I know this may sound like a lot to digest. Believe me, once you start tracking the right numbers, things become clearer.
You’ll start to notice patterns, identify opportunities for improvement, and see where your efforts are really paying off. Soon, you’ll be able to make smarter decisions that drive growth, profitability, and customer satisfaction.
The best part is, you’ll finally stop feeling like you're working blindly, have the data to back up your decisions, and lead with confidence.
Conclusion
If you’re serious about taking your power distribution business to the next level, don’t ignore these metrics. Start tracking them today and your company'll thrive.
That’s all for this week.
See you next week!✌
Iyetule Abobare
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