Billing Quality Index (BQI) is an important performance indicator used by DISCOMs to assess whether electricity bills are being generated and distributed accurately and on time.
It ensures the following:
How is BQI Calculated?
The BQI is calculated using a specific formula that rewards good practices and penalizes inefficiencies. The formula balances positive actions, like generating accurate bills on time, against negative factors, such as delays and unbilled new connections.
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BQI = {(1xB + 1xC - 0.2xD - 0.2xE - 0.4xF - 0.2xG)/A}x100
The formula of BQI
Where:
- A - Billable Consumers
- B - Actual reading base Bills generated untill 25th of the month
- C - Prev Bill was prov/incorrect but current bill is OK
- D - IDF Bill >= 3 months
- E - RDF Bill >= 3 months
- F - New Connection whose 1st Bill not generated since 2 months
- G - Billed after 25th
| Code | Description | Multiplier | Responsible |
|---|---|---|---|
| A | Billable Consumers | - | NA |
| B | Actual reading base Bills generated untill 25th of the month | 1 | Billing Agency under supervision of distribution division |
| C | Prev Bill was prov/incorrect but current bill is OK | 1 | Distribution Division |
| D | IDF Bill >= 3 months | -0.2 | Test Division and Distribution Division |
| E | RDF Bill >= 3 months | -0.2 | Distribution Division |
| F | New Connection whose 1st Bill not generated since 2 months | -0.4 | Distribution Division |
| G | Billed after 25th | -0.2 | Billing Agency under supervision of Distribution Division |
A sample BQI calculation might look like this -
