Distribution Automation &

Distribution Management System

Cost/Benefit Analysis
Dr Nenad Katic, Elena Boskov, DMS Group Novi Sad1

Distribution Automation (DA) includes different activities for efficient control and management of electricity
distribution networks (SCADA/DMS SW&HW, communication solutions, RTUs in substations and MV network,
new power equipment, etc.).
Distribution Management System Software (DMS) provides tools for dynamic visualization, monitoring and
control of electricity distribution network, together with wide set of power applications for network operation
analysis, planning and optimization.
In this paper, benefits of DA/DMS implementation are investigated and evaluated (reduction of power losses,
reduction of network outage costs and network development costs, improvement of power quality). In the
same time, necessary investments in installation and application of DA/DMS are considered. In the end,
comparison of benefits and costs is made and relevant conclusions are presented to manifest high
profitability of DA/DMS.

1. INTRODUCTION

Distribution Management System (DMS) is the 21st-century software and management system for performing all
technical tasks in distribution utilities in an efficient and optimal way. This modern software tool enables distribution
utility personnel to:
• Dynamically monitor and control distribution network,
• Achieve a high-quality knowledge about their distribution network,
• Efficiently utilize, design and develop distribution facilities,
• Reduce losses and operation costs,
• Raise the profit (revenue) of the utility,
• Improve the quality and quantity of supply of electrical energy to consumers

DMS provides tools for dynamic visualization, monitoring and control of electricity distribution network,
together with wide set of power applications for operation analysis, planning and optimization. System is built
on open standard solutions and powerful technical database. Together with complete integration with SCADA
and GIS, DMS Software is the ultimate technical solution for electrical utilities.
DMS Analytical Functions System is the "brain" of DMS - the full set of sophisticated software and
algorithms that enables optimal operation, decision making and efficient design of the whole equipment
installed in the MV distribution network. DMS Analytical Functions System can be grouped in following
way, as presented on Figure 1:
1. Network Operation Functions,
2. Network Operation Planning and Optimization,
3. Network Operation Analysis
4. Network Development Planning,
5. Training.

In following sections, benefits from application of DA/DMS are investigated and evaluated, as well as
investment and operation costs. In the end, comparison of benefits and costs is made and relevant
conclusions presented to prove high profitability of DMS

1
DMS Group Novi Sad, Sremska 4, Republic of Serbia, contact nenad.katic@dmsgroup.co.yu
 NETWORK MODEL ENERGY LOSSES

TOPOLOGY ANALYZER RELIABILITY

LOAD FLOW ANALYSIS

STATE ESTIMATION FAULT CALCULATION

PERFORMANCE INDICES RELAY PROTECTION

FAULT MANAGEMENT DMS BREAKERS/FUSES

SUPPLY RESTORATION AN ALYTICAL FUNCTIONS CAPACITY

SYSTEM
LARGE AREA RESTORATION MAINTENANCE

SWITCHING SEQUENCE MANAGEMENT

MANAGEMENT Network Operation SECURITY

Functions
UNDER-LOAD SWITCHING ASSESSMENT
Network Operation
Planning and
LOAD SHEDDING Optimization MOTOR START

TEMPORARY ELEMENTS OPERATION

Network Operation IMPROVEMENT
THERMAL MONITORING Analysis

WORK ORDER MANAGEMENT LONG TERM LOAD

Network Development
Planning FORECASTING
TROUBLE CALL MANAGEMENT
NETWORK DEVELOPMENT
Training
OUTAGE MANAGEMENT SYSTEM PLANNING

VOLTAGE CONTROL NETWORK

AUTOMATION
VAR CONTROL

VOLT/VAR CONTROL CAPACITOR PLACEMENT

NETWORK RECONFIGURATION
RTU PLACEMENT

SHORT TERM LOAD FORECASTING

DISPATCHER TRAINING
SIMULATOR
LOAD MANAGEMENT

Figure 1 – DMS Analytical Functions System

2. BENEFITS FROM DMS

In this section, benefits from DMS application are investigated and evaluated. The sample of real distribution
network, as presented on Figure 2.1, is used for evaluation of benefits and costs. The sample network is
supplied from one sub-transmission substation 110/35 kV, which costs normally belong to sub-transmission
company and it will not be included in this analysis, however if substation belong to distribution company it
does not change results significantly. The sample distribution network is supplied by 4 distribution supply
substations 35/10 kV with 40 feeders on 10 kV. Distribution network is approximately 350 km long with
cable and overhead lines and there are 360 distribution consumer substations 10/0,4 kV with 90 MVA
installed power (250 kVA in average by substation). There are 25.000 customers in total.
The peak power of the network is 50 MW and annual injected energy from supply side is approximately 200
GWh. The value of the annual injected energy is approximately 8.000.000 $ with price of 40 $/MWh on the
supply side of distribution. The total losses in distribution are 10 - 15 % (technical and commercial) and the
total sold (billed) energy to customers is 170 - 180 GWh annually.
In general, benefits from DMS application can be grouped on: (1) Reduction of power losses (technical and
commercial); (2) Reduction of operation costs (improved fault management, reduced energy not supplied,
reduced number of switching); (3) Reduction of network development costs (improved utilization of
facilities and investment postponement); (4) Improved power quality (on-line and off-line regulation of
transformers tap-changers). All mentioned benefits will be investigated and evaluated in following sections.

2
 110 kV

Supply Ss HV/MV

35 kV

Supply Ss1 35 kV
MV1/MV2
10 kV

approx 40 feeders 10 kV

10 kV overhead and cable network
(approx 350 km)

approx 360 Ss 10/0.4 kV, 250 kVA average

Supply Ss2

Supply Ss4

approx 25.000 customers

Supply Ss3

Figure 2.1 – The Sample of distribution network

2.1 Reduction of power and energy losses

Electrical energy losses in distribution networks can be structured as presented on Figure 2.2.

Cause, location Improvement methods (using DMS)

(10 – 15 %)
Control of measurement devices and connections
Theft and not measured
Commercial

energy Anonymous denunciation

(3-5 %)
DMS –location of commercial losses

Meters (1 – 2%) Gauging, new meters

Billing system (1%) Improvement of reading and billing system

(5-8% )
Supply Ss HV/MV (1%) Short term
Distr.tranasform. MV/LV DMS – optimal network reconfiguration
(1 – 1.5 %) DMS – Voltage/Var control
Technical

Long term
MV network DMS – Network Development and reconstruction
(1- 3%)

LV network Very long term

(1-3%) General network redesign

Figure 2.2 – Sources and location of energy losses and improvement methods

3
Reduction of technical losses

Application of DMS Optimal Network Reconfiguration function provides reduction of technical power losses
up to 20% in MV network, with non-significant costs (change of positions of normally open switches on
20% locations, once in a winter/summer season). Since the technical energy losses in MV network
participate in total injected energy with 1-3 %, reduction of annually injected energy is from 0,2 to 0,6 %.
DMS Voltage Control improves voltages and reduce MV technical losses up to 0,2 % of annually injected
energy.
DMS Var Control and controllable MV capacitor banks reduce MV technical losses, due to number of banks,
up to 0,2 % of total injected energy.

Reduction of commercial losses

DMS Energy Balance function enables archiving of (metered) energy injection in MV feeders and archiving
of calculated technical losses on MV feeders and MV/LV transformers, so the energy balance on LV busbars
is provided. Using DMS LV Management non-technical losses in LV network are calculated and using billing
data of LV customers ”commercial” losses are located (theft, bad meters). Now, all distribution transformers
areas are ranked according to commercial losses, and available field crew is send to critical locations on
control. After control of theft or metering failures, injection of energy could be reduced, with the same or
higher sale on output side.

Total reduction of energy losses using DMS applications normally reaches 0,5 % of annually injected
energy.

2.2 Reduction of operation costs

Nowadays, in many Distribution Companies there are no many automation applied and the fault management
is executed manually, as presented on Figure 2.3.
In case of fault on MV feeder, one crew (A) is sent to Supply substation to check protection and to provide
ooperation of feeder circuit breaker. The second crew (B) is sent along the MV feeder to provide (manual)
operation of MV switches in MV network. After several operation of feeder breaker and MV switches
(normally applied method is tracing half by half of MV feeder), fault will be localized (B1 , B2, …) and
supply restoration will be realized (B3, …) to the rest of MV feeder. The whole procedure takes several
hours, sometimes much longer, and customers along the feeder suffer outage for several hours before they
are re-supplied. The risk of wrong switching and non-optimal decisions is HIGH, because Operator has
limited information about the fault and loadings in the network and relies on his experience, without
technical tools to support his decisions.
On distribution network sample, average MV feeder load is 1.25 MW and the energy not supplied is 2 - 2.5
MWh in average by fault (2 h). Failure rate of MV lines is 0,2 – 0,5 annually/km, so in network sample (360
km) there are approximately 140 faults/year, therefore annually non supplied energy (ENS) is approximately
300 MWh.

Utility fault management costs

Direct Utility costs relating to fault management in MV network (network sample) are:
• Revenue lost (ENS=300 MWh x 40 $/MWh) = 12.000 $ annually
• One Breaker failure annually (400 switching on fault) ≈ 5000 $ annually
• 4 switches failures (800 switching) ≈ 16000 $ annually
• Field crew switching costs (800 x 20 $/switching) ≈ 16.000 $ annually

Total Utility Fault Management costs ≈ 50.000 $ annually

4
 Present fault management situation
Control Radio
: SB
A Ss HV/MV Centre Comm.

CB CB

Ss MV/LV
CB – circuit breaker

B2 SB – switch board
Fault
B1

B3

Field crew

Figure 2.3 Fault Management in Distribution Company without automation

Customer costs
On the customer side, costs or damages due to power outages are considered 5 times the price of delivered
kWh for residential customers and up to 100 times for sensitive industrial customers. On network sample
there are 80 % residential and 20 % industrial customers, therefore real cost of non-delivered kWh is 1,6
$/kWh, which is in average is 20 times higher than the price of delivered kWh (8 c$/kWh). Total annual
damage to all customers on network sample is 480.000 $ (300 MWh x 1600 $/MWh). This value is not paid
by the Distribution Company directly, but presents the level of real (social) damage because of outages.

Penalties paid by Utility

Deregulation and liberalization of electrical sector introduce penalties paid by Utility to customers because
of outages. For example, in Holland is regulated that Utilities are paying compensation of 30 Eur to every
customer in case of outages longer than 4 h. If we assume on our network sample that only 10% of outages
are managed longer than 4 h, we would have 14 feeder outages annually to pay compensation. Since there
are 700 customers in average by the feeder, Utility would pay 450.000 $ (14x700x30 Eur = 300.000 Eur)
annually for compensation to customers. This figure is close to the real customer damage costs and proves
that individual compensation is calculated realistically.

Network automation and DMS system

Automation of distribution network could improve this situation significantly, as presented on Figure 2.4.
Distribution automation includes SCADA/DMS system applied in Operation Control Centre, remote control
of Supply substations with RTUs, remote controlled MV switches and fault detectors in the part of
distribution network (10 – 20% of all distribution points).

5
 Distribution
SCADA DMS
Automation
Control
Centre
SCADA
RTU Ss HV/MV

CB + FR CB + FR

Ss MV/LV
Fault
A
FD
RTU RTU
Legend: RMU RMU
FD
RTU - Remote Terminal Unit
RMU - Ring Main Unit
FD - Fault Detector
FR - Fault Recorder
CB - Circuit Breaker RTU RMU
FD

Figure 2.4 – Fault Management after Distribution Automation

In case of distribution automation, fault management is significantly improved:

• Supply substations is remotely controlled (SCADA) and all information and remote control are
available to operator in Control Centre, so there is no need for crew A to go there any more, control
and actions are very fast,
• The important points in distribution MV network are remotely controlled and fault information are
available, therefore the location of fault is better known, without operating of feeder breaker and
switches along the MV feeder,
• If necessary, one crew (A) will go along the feeder to provide switching of non-remotely controlled
switches and to help restoration of supply,
• Operators has DMS software tools for estimation of network power flows, for simulation of every
switching action and for optimization of fault management and supply restoration procedure, with
very LOW RISK to make wrong decisions or switching.
• Outage duration is 5 times shorter, 15 – 20 minutes (if there are more RTUs in the MV network, this
time will be even shorter), therefore ENS is 5 times decreased,
• Operation costs are reduced, because of lower number of switching and less failures of equipment on
the field.

Applied on the network sample, costs of network operation are reduced:

• Revenue lost (ENS = 60 MWh x 40 $/MWh) ≈ 2.400 $ annually

• Breakers failures once in 2 years (200 switching on fault) ≈ 2.500 $ annually
• One switch in failure (300 switching) ≈ 4.000 $ annually
• Filed crews switching costs (300 x 20 $/switching) ≈ 6.000 $ annually.
• Total Utility Fault Management costs ≈ 15.000 $ annually

Customer damages costs will be 5 times decreased due to reduced outage time (96.000 $ annually) as well as
penalties paid to customers (90.000 $ annually).

6
The benefit of distribution automation on the network sample can be derived now, as reduction of
operational costs after automation:

• Utility direct fault management costs are reduced by 35.000 $ annually (reduction from 50.000$ to
15.000$), giving improvement of 0,4 % in relation to the value of annually injected energy (8.000.000
$).
• Penalties paid by Utility (if applied) are significantly reduced by 360.000$ annually (reduction from
450.000$ to 90.000$), giving improvement of even 4,5 % in relation to the value of annually injected
energy (8.000.000$).

2.3 Reduction of network development costs

DMS network planning and optimization tools provides better utilization of existing distribution facilities
and postponement of investments in network development (DMS functions for optimal network
reconfiguration, optimal voltage/var control, load management, load forecasting, network development
planning, network automation planning, etc.). Optimization of network operation and network planning
provides postponement of 10 – 20 % necessary investments.
Development of distribution network normally requires minimum rise of 1 % in distribution transformers
and 0,5 % in MV power lines. Applied on the network sample, annually it would be necessary to build 4 new
distribution units and 2 km of MV power lines. Investment postponement of 20% annually releases funds in
value of one distribution unit and 500 m of MV power line, or saving of at least 20.000 $ annually.
DMS Large Area Restoration function provides tools for efficient managing and planning of large outages
of supply transformers in Supply Substations (HV/MV). In that way, available resources in MV network and
neighboring supply substations can be better utilized and building of the new supply substation can be
postponed. In the network sample, very 10 years one new Supply Substation should be built (1.000.000 $
investment), therefore investment postponement releases funds of at least 50 - 100.000$ per year.
Total reduction of network development costs on the network sample is approx 80.000 $ annually or 1,0 %
in relation to the value of annually injected energy (8.000.000$).

2.4 Improved power quality

DMS Optimal voltage regulation tool provides on-line regulation of tap-changers on on-load tap-changing
HV/MV transformers and planning and settings of tap-changers on off-load tap-changing MV/LV
transformers. Voltages are maintained under technical limits and in optimal level, according to several
objectives:
• Maintaining voltages under technical constraints,
• Minimizing damages to customers due to voltage deviations,
• Reduce active and reactive losses in distribution network,

Selective improved power quality to special sensitive customers can be provided and contracted as special
service. Demand (sale) can be influenced with change of voltage level in MV network inside technical limits,
with dynamic voltage control and following market prices on open market. In such a ways, Utility Revenue
can be increased up to 1 % in relation to the value of annually injected energy.

2.5 Total benefits of DMS application

All benefits of DMS (Distribution automation) application are:

• Reduction of power losses in amount of 0,5 % of the value of annually injected energy.
• Reduction of operational costs in amount of 0,4 % of the value of annually injected energy, in case
Utility does not pay penalties for outages to customers.
• Reduction of operational costs in amount of 4,5 % of the value of annually injected energy, in case
Utility does pay penalties for outages to customers.
• Reduction of network development costs of 1,0 % of the value of annually injected energy.
• Revenue increase regarding improved power quality up to 1 % in relation to the value of annually
injected energy.

7
Total benefits from DMS application are:
• 3 % of the value of annually injected energy, if Utility does not pay penalties for outages to
customers, or up to
• 7,5 % if Utility pays penalties for outages to customers.

3. INVESTMENTS IN DISTRIBUTION AUTOMATION

Investments in DA/DMS include several areas:

• SCADA/DMS Software installation in Distribution Control Centre (DCC) including creation of
Database, network diagrams (schematic and geographic), testing of the system, commissioning and start
up of the system.
• SCADA/DMS Hardware installation in DDC with redundant servers with real-time integration bus on
LAN, workstations with two or three displays, communication facilities, time synchronization, web
access, Large Screen Display, AC interruptible power supply (UPS), system commissioning and testing,
as presented on Figure 3.1.
• Remote terminal units (RTU) panels (control boxes) with interfaces for signal conversion (transducers,
relays), galvanic isolation and signal multiplication, with ancillary equipment (power supply, relays,
cabling), all for ground substations (Supply HV/MV and part of distribution MV/LV substations) or pole
mounted MV switches, with delivery, commissioning, testing and start-up.
• Communication system (radio, fiber optic, telephone leased lines) including system design, licenses for
radio frequencies, delivery of equipment, commissioning, testing and start up of the communication
system.
Principles of MV network automation are presented on Figure 3.2, while detailed Study should be realized
for every considered distribution network. Figure 3.2 presents minimum of automation to achieve significant
improvement in fault management. If there are more RTUs in MV network, results are even better, but
investments are increasing rapidly. Therefore, DMS function Network Automation is a tool for detailed
investigation and design of optimal automation of MV networks (best results with limited budget).

Remote MMI

GPS time
SCADA/DMS SCADA/DMS
Sync
Server 1 Server 2

DB HIS-Archive
Server 1 DB HIS-Archive
MMI MMI MMI Server 2

Operator Operator Engineering

Workstation 1 Workstation 2 Workstation

FEP1 FEP2

Large Scale
Display
Printers WEB Server

Gateway
Multiplexer Rack Link to RDC

Link to CDDCs
IEC 870-5-104
Office PC

Modem Rack to RTUs

Figure 3.1 – SCADA/DMS system architecture in DDC

8
 Supply substation
HV/MV

busbars MV

adjacent feeder
adjacent feeder

Underground MV feeders Distribution switch MV point

Overhead MV feeders Pole mounted MV switch

Ground Substations MV/LV

kV Remote controlled switches
Pole mounted transf MV/LV with RTU and Fault Detectors

Figure 3.2 – Principles of distribution network automation

If DMS Network Automation function is applied on the sample network (Figure 2.1), following results are
obtained:
• Every Supply substation 35/10 kV should be automated (remotely controlled by SCADA/DMS system),
• Approximately 25 ground substations 10/0,4 kV (25% of all ground substations) should be automated
with ring main units (RMU), RTU and Fault Detectors. Substations are on 12 underground (10 kV)
feeders (in average 2,5 substations per underground feeder),
• Approximately 70 pole mounted switches (PMS) should be automated with RTU and Fault Detectors.
PMS are on 28 overhead feeders (in average 2,5 PMS per overhead feeder),
• All 3 Distribution switching points should be automated with RMU and RTU.

There should be approximately 100 remotely controlled points (RTU) in MV network, which has 360
distribution transformer substations (banks), what is in this case 28 % of the total number. Figure 3.3
presents graphically optimal automation of the sample network and Table 3.1 presents calculation of costs.

9
 DCC

Operation
SCADA SCADA
DMS DMS
DMS analysis and
planning

LAN

SCADA/DMS FEP HISTORY

SERVER
Network sample
SERVER
SCADA
RTU SCADA/DMS
PMS
W • 4 x Supply substations
• 25 x SS 10/0,4kV RMU + RTU
SCADA

SCADA
RTU RTU
RTU RMU RMU
• 70 x PMS + RTUs
3 Distribution point • 3 x Distr point RMU + RTU
RTU

90 PMS

RTU
25 Ss 10/0.4 kV 10 kV
• Radio communication

RTU
SCADA

Figure 3.3 – Optimal distribution automation of the network sample

Table 3.1 – Distribution Automation investments Structure for the sample network
No DA description Unit price ($) No of units Price per sample
network ($)
SCADA/DMS Software 200.000
Hardware in DDC 100.000
Supply substations 35/10 kV, RTU, 50.000 4 200.000
cabling and interfaces
Ground substation 10/0,4 kV, RTU, 5.000 25 125.000
cabling and interfaces
Pole mounted RTU and interfaces 3.000 70 210.000
Distribution point RTU and interfaces 10.000 3 30.000
Communication system - FO 1500 100 150.000
(interfaces) or radio system (equipment,
interfaces, antennas)
Total SCADA/DMS automation of the 1.015.000
sample network

Power equipment upgrade – RMU in 8.000 28 224.000

ground substations
Power equipment upgrade – PMS load 4.000 70 280.000
breakers
Total SCADA/DMS automation with 1.619.000
upgrade of power equipment in the
sample network

Normally, in the previous period every Utility has already invested in some of listed automation equipment
(e.g. SCADA, Supply substations RTUs, communication systems), but for the simplicity, we shall take into
account the value of the existing as necessary investments in the upgrade of the power equipment. Therefore,
the total investment for the sample network will be approximately 1.000.000 $.

Now, average costs of a Distribution Automation Project (without power equipment) can be calculated:

10
• If the Peak Load of the sample network is 50 MW, then average cost of Total Distribution Automation is
approximately 20.000 $/MW of peak load,
• If the participation of customer load in the network peak load is 2 kW/customer, as it is in the sample
network (25.000 customers), then average automation costs can be expressed as 40 $/customer,
• If the average number of citizens per one customer is 3.3, then average automation costs can be
expressed as 12 $/citizen,
• If the annually injected energy in the sample network is 200 GWh (value of 8.000.000 $), then average
automation costs can be expressed as 12,5 % of the value of annually injected energy.

Figure 3.4 presents the Distribution Automation structure of costs (without power equipment):

15% 20%

10%

35%
20%

DCC SW DCC HW
Supply Ss MV RTUs
Communication
Figure 3.4 –Distribution Automation structure of costs

4. COST BENEFIT ANALYSIS OF DISTRIBUTION AUTOMATION

As discussed in the Section 2 of this document, annual benefit from Distribution Automation is:
• 3 % of the value of annually injected energy if Utility does not pay penalties for outages to customers,
Or, up to
• 7,5 % of the value of annually injected energy if Utility pays penalties for outages to customers

As discussed in the Section 3 of this document, total investment costs in Distribution Automation are:
• 12,5 % of the value of annually injected energy.

Cost/benefit analysis can be now calculated on the example of the one large Utility:
If some Distribution Company with 1000 MW peak load is considered, then annual injected energy will be
approximately 4000 GWh/year (1000 MW x 4000 h), with the electricity purchase value of approximately
160 Million $/year (4000 GWh x 40 $/ MWh). Total investment in DMS (12,5 %) will reach 20 Million $,
with project execution time of 2 – 3 years. Starting with the third year, benefit will reach at least 3 % of the
value of annual injected energy (4,8 Million $/year) and raise up to 5 % (8 Million $/year). During operation
of DMS, maintenance and operation cost will reach 5 % of investment costs (approximately 1
Million &/year). DMS benefit and costs are analyzed in 10 years period (life time of HW, RTU and
communication equipment) and without interest rates and actualization in time for simplicity, as presented on
Figure 4.1.

11
 10

6
Million $

5 Investment

4 Benefit

3 Operation
costs
2

0
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th
Year

Figure 4.1 – DMS benefit and costs in 10 year period

The balance of costs and benefits of Distribution Automation for the period of 10 years is:
• Total costs: investment cost of 20 Million $ + operation and maintenance costs of 8 Million $ in 10 years
= 28 Million $ in 10 years,
• Total benefit is 54,4 Million $ in 10 years

For the simplicity, actualization rate in time is not calculated, because it is not of significant influence in 10
years period. Depreciation of equipment is not calculated as costs, because it is related to new investments in
network automation.

Results of Distribution Automation (DA/DMS) cost/benefit analysis for 10 years time period (T) are:
• Cost/benefit ratio - C/B = Costs (30,5 Million $) / Benefit (54,4 Million $) = 0,51
• Profitability - B/C = Benefit / Costs = 1,94
• Payback period = C/B x T = 0,51 x 10 ≈ 5 years

If only DMS Software project is considered, which is approximately 10 % of the total Distribution
Automation investment costs (approx 1 – 2 % of the value of annual injected energy or approx 4 $ per
customer), the payback period is much shorter - between 2 and 3 years.

12
5. CONCLUSION

DMS Software provides many benefits to the distribution company:

• Dynamic monitoring and control of the entire distribution network;

• Efficient technical database with complete technical documentation and different reports for every
element and the entire network;
• Improved fault management and reduction of energy not-supplied;
• Improved voltage profile and power quality;
• Reduction of power and energy losses;
• Reduction of operation and maintenance costs;
• Efficient utilization of distribution facilities and supply reserves, with postponement of new
investments;
• Higher quality of service and customer satisfaction;
• Better education of engineering and dispatching personnel;

Finally, DMS Software is highly profitable and relatively small investment comparing to network
development, reconstruction or maintenance costs:

• Distribution Automation increases the profit of the Company every year in the range of 3 - 7 % of
the value of annually injected energy,
• Total investment in Distribution Automation is approximately 12,5 % of the value of annually
injected energy,
• Investment in DMS Software is approximately 1 - 2 % of the value of annually injected energy.
• Profitability of investment is 2 – 3 times in the period of 10 years,
• Payback period is 3 - 5 years.

13