The toolkit is an initiative created by the Inter-American Development Bank to strengthen transformation and continuous improvement of electricity distribution companies. The toolkit is based on international available benchmarks and best practices. These practices are grouped in 4 areas and 16 activities that are common to most electricity utility.Know more
Technical and Operations
Environment, Social and Resilience
Finance, Organization and Corporate Governance
Number of activities:
Electricity Loss Reduction
Assesses the degree of productivity and efficiency of the transmission and distribution systems and it is analyzed to design a plan to improve the technical and non-technical (commercial) losses.
Quality of the technical service
Measures the reliability, continuity of supply, and the voltage quality of the electric system using a set of standard metrics. Overall, it relates to the ability of the electric system to perform its functions.
Management of O&M cost
This activity considers how the utility manage its Operation and Maintenance (O&M) activities and includes best practices. It also includes the main accounting and financial practices that improves the efficiency and transparency of the utility on its financial management activities.
Attention to the client
Assesses the interaction between the service provider (distribution company) and the user on services such as responsiveness to customers, billing information, and handling complains. Main objective is to provide best service to the customers.
Access to service
Describes how the utility is supporting national electricity plans to achieve universal electricity coverage. It also includes affordability of the electricity service to less vulnerable parts of society.
Efficiency and execution of the investment plan and asset management
Reviews the utility’s methodology and process of its investment plans and the prioritization and flexibility to deal with unforeseen events. Also includes the activities of maintenance of existing assets.
Modernization and vision of the future
Reviews how the utilities are modernizing their activities and considering new business models focused on services to meet future needs of customers and technology disruptions. Also includes the activities of electromobility.
Technology, digitalization, and cybersecurity
Reviews the initiatives utilities are undertaking to introduce new technologies and increase digitalization of its network and infrastructure. Also includes cybersecurity activities and controls to mitigate its exposure to risks.
Considers the level of readiness of innovation culture in the utility, including a review of the internal processes, behavior, and resources dedicated to innovation. Also includes the partnerships (and the results) the utility has established with leading organizations to foster innovation.
Financial management and sustainability
Analyzes the financial health and sustainability of the utility and to what extend its revenues cover the costs. Also includes assessment of the balance sheet and remuneration to the capital.
Assesses the commercial management practices and processes of an electricity utility in activities such as billing, collection, and debt management. Also includes management of customer registers and databases.
Autonomy, decision making, controls, and transparency
Reviews the main activities of corporate governance of a utility in activities such as accountability, autonomy and transparency and control. Reviews the roles and responsibilities among the Board of Directors, Management, and the other stakeholders.
Strategic planning, organizational structure and Human Resources
Assesses that a performance management is in place to monitor the utility’s performance and the aspects of people management. Also reviews the topics related to gender equality, diversity, and inclusion.
Climate change mitigation
Reviews activities distribution companies have introduced to mitigate climate change with a focus on energy efficiency measures. Also reviews their commitments and activities towards distributed generation with renewable energy and electromobility.
Environmental and social aspects
Reviews the environmental and social standards practices of the utility, and their adherence to local legislation and international best practices. Reviews also utility’s contribution to the Sustainable Development goals.
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