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Extended-form Case Study

Operation strategy of an electricity distribution utility (Disco)

Published on March 30, 2023   18 min

A selection of talks on Management, Leadership & Organisation

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0:00
I'm Shahid Zaki. I'm the ex-CEO of Philips, Pakistan, and I am a visiting professor at IBA. I teach corporate strategy, and the presentation I've prepared is on operation strategy of an electric utility.
0:27
Now, as you might be aware, there are many electric utilities throughout the world, and that is where we are getting all the electricity. I've prepared it in such a way that professors, or those who are in teaching, in economics, can have the case solution right at the end, so that they can generate a lot of classroom discussion before presenting what happened.
1:02
What does an electric utility do? Let me explain that. Basically, an electric utility provides you power, but unfortunately, the power is generated elsewhere and has to be transmitted and distributed by the utility itself. Now, why the generation is elsewhere is because the hydro, thermal, nuclear, and other environmentally friendly means of generation are located, usually, at a distance from the utility. Generation takes place at some other point, whereas the distribution can be anywhere. The distribution network which is supplying a certain area is usually authorized by a regulatory authority to distribute power in that location through a network of grid station feeders and associated equipment. In the slides, I'm showing the entire network, with generators, and then the voltage has to be stepped up because it has to traverse a certain distance. And then it has got to be stepped down, and basically, that is where the power is consumed.

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