Addressing Last Mile Electricity Distribution Problems: Study of Performance of SHGs in Odisha

Distribution of electricity becomes inefficient when rural areas are sparse or remote. Un-metered/illegal connections, poor bill collection efficiencies are some common practices found in villages, especially remote areas. Consumers also remain unsatisfied with service provided by Distribution Utility due to long hours of supply cut, unscheduled outages, low voltage levels, and wrong meter readings. To address these problems at the last mile and to improve the performance of the electricity distribution sector, Electricity Act 2003 has introduced Distribution Franchisees (DF). DFs are contracted to manage the last mile functions of the electricity sector for a specified area. This paper presents a study of an initiative by a DF in the state of Odisha, which contracted 142 women self-help groups (SHGs) to undertake metering, billing, and revenue collection, leading to reduction in electricity losses by 30%. The objective of this study is to gain deeper understanding of different aspects of the role played by SHGs in handling these last mile governance functions. The study relies on semi-structured and unstructured interviews with different stakeholders. The study would help understand the feasibility and relevance of SHGs in addressing the governance crisis in the last mile of the electricity sector.