To practice prudent financial management and corporate governance

STRATEGIES

1. Rationalize expenditure and maximize revenue

Measure Targets Initiatives Ans.
RLIF RLIF
<0.01% by 2007		 Improve
reliability of the lines & substations		 TD
Collection
efficiency		 Establish
baseline information / average debtor age by 2007.

Achieve overall collection efficiency of 99% by
2012

 Regular
internal Audit

Improve collection of revenue

Monitor outstanding and enforce disconnections

 FAD, TD, DCSD
Cost
control		 Frame
targets and implement benchmarks for controllable
cost in 2007		 Internal
Audit

Budget monitoring and variance analysis

Productivity Mapping

Benchmark with BEA’s approved cost

 FAD
Reduction
losses		 Maintain
Global losses < 4%		 Improve/
upgrade distribution systems		 TD, DCSD
Revenues Increase
Tariffs and Miscellaneous charges by 2007		 Submit
proposal to BEA for Tariff and Miscellaneous Charges
Revision		 FAD, DCSD, EDD

2. Optimize the use of resources

Measure Targets Initiatives Ans.
Interdepartmental
Coordination		 Resource
Sharing Coordination meetings in the Dzongkhags		 The
ESD Managers to participate in all the Dzongkhag
level Meetings, Seek clarifications from the concern
Departments		 HRA, DCSD, All Departments
Judicious
use of resources		 Strengthen
existing guidelines by 2008		 Follow
the Guidelines strictly

Awareness programs for all departments/ divisions/
units

 FAD & HRA
Multitasking Establish
Service Centers by 2007

Multitasking policy by 2008

 Introduce
innovative billing & metering systems

Keep abreast with technological developments

Assessment, Training, Implementation, and Monitoring
of Multitasking

 HRA, DCSD, TD, All
Departments


3. Strengthen management control and management information
systems

Measure Targets Initiatives Ans.
Reporting
of Accounts		 Annual
Financial statements by February

MIS report by 10th of next month

 Timely
compilation of accounts Standard format for reporting

Close coordination & monitoring of field units

 FAD
Data
report from fields		 Accurate
and timely data reporting by 2007		 Proper
analysis, review and monitoring		 EDD,
All Departments
Logistics Right
goods to right users (100%) by 2008		 Proper
order handlings

Establish MSS at all units

Establish IMS at all Central and Regional Stores

Adopt MIS for proper tracking and data base management.

Establish formats and guidelines, with user departments
and suppliers

 PSD,
All Departments
Codification
for transmission lines & substation assets		 Coding
for substations by 2007

Coding for lines by 2008

 Compile
and prepare consolidated list of substation and
line items		 TD,
PSD
Communication
System		 WAN
for BPC by 2009		 NLDC
to connect all substations

OPGW to be laid by BPC or on cost sharing basis
with other agencies

Establish network of direct or lease lines between
all BPC offices

 EDD,
TD, DCSD
General
Ledger System		 Implementation
of General Ledger system by 2009		 Prepare
system requirement

Develop/ Source the software

Train users and implement

 EDD,
FAD
Budgeting
Software		 Implementation
of a Budgeting Software by 2008		 EDD,
FAD
Stores
Management System		 Implement
IMS and MSS by 2007		 Reconcile
Existing inventories Identify and Develop software,
train and implement system		 EDD,
PSD, All Departments
Management
Information System		 Implement
MIS by 2007
Internal
Auditing		 Establish
Internal Auditing Unit by 2007		 Post
Internal Auditors and support staffs

Establish Internal Audit Committee

Establish Internal Audit Procedures and Guidelines

 HRA,
FAD



4. Explore new revenue streams

Measure Targets Initiatives Ans.
Leasing
out of fiber optic infrastructure		 Complete
fiber optic leasing procedures, rates and details
by 2007		 Obtain
license for leasing out fiber optic infrastructure
from BEA/ BICMA

Structure optimal leasing mechanism

Establish pricing policies

 TD, DCSD, FAD, EDD
Diversification
of Businesses		 Undertake
feasibility for diverse business opportunities (such
as trainings and contracting services to other agencies)
by 2008		 Identify
core competencies of BPC

Identify new products and services that BPC can
offer

Prepare business plans

 HRA, All Departments
Consultancy
Services		 Establish
consultancy services guidelines and offer consultancy
services by 2008		 Develop
Engineering and Design talent within the Corporation		 EDD, All Departments
Wooden
Poles Manufacturing Unit		 Establish
WPMU by 2008		 Complete
negotiations with MOA and NEC

Explore other usage of WPMU

 CS, EDD
Communication
Business Unit		 Set
up a Separate Communications Business Unit by 2007		 Develop
Business Plan

Appoint/ recruit employees for the Communication
Business Unit

 HRA, TD, EDD

5. Outsource low-value adding activities

Measure Targets Initiatives Ans.
Outsource
Activities		 Security
Services by 2009		 Establish
baseline costs

Develop local competencies in the private sector

Establish procedures for outsourcing

Encourage BPC employees to takeover the outsourced
activities

 SSD,
HRA
Meter
Reading & Bill Delivery in select areas by 2010		 DCSD
O&M
of Mini/ Micro Hydels by 2010
Maintenance
of LV and MV lines by 2010
Maintenance
of HV lines by 2012		 TD



6. Provide best value for goods and services

Measure Targets Initiatives Ans.
Right
Quantity		 Introduce
minimum inventory requirements by 2008		 Analyze
past data and future requirements for establishing
minimum inventory requirement		 PSD
Right
Time		 Establish
minimum delivery periods for various items from
past experiences by 2008		 Establish
Re-order level

Maintain stock for critical items

Adopt staggered delivery schedule as per requirements
at site

Establish long term supply mechanism for critical
and proprietary items

 PSD
Right
Quality		 Establish
Quality Control and Inspection Cell by 2007

Prepare Quality Assurance Plans by 2008

Strengthen Vendor Appraisal and Certification Procedures
by 2007

 Establish
standard inspection checklist

Train and form a pool of expert inspectors

Analyze and establish standard MQPs

Collate past suppliers’ performance

 EDD, PSD
Standards Establish
standard specifications for equipments, materials
and works by 2008		 Compile
data on existing equipment, material and works

Study practices of other utilities

Adopt most suitable specifications for Bhutan

 EDD, TD, DCSD, RED


7. Seek tariffs to reflect true cost of business

Measure Targets Initiatives Ans.
Compliance
to BEA regulation		 Meet
BEA datelines for annual report submission		 Work
with BEA closely

Work out the details of the tariff structure and
basis

 FAD, DCSD, TD, EDD
Tariff Allowable
Rate of Return on Assets by 2012		 Tariff
increases on a regular basis for both supply and
wheeling

Controlling cost within the BEA’s allowable
cost guideline

 FAD, DCSD, EDD
Subsidies Phase
out subsidies for HV & MV customers by 2012		 Encourage
Energy Conservation Practices

Encourage change to energy efficient technologies

 DCSD