Report of Indian Institute of Public Administration ... - Ministry of Power

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
(i) Distribution is a separate business, now under the control of the four
independent DISCOMs, which are required to perform better in a
competitive environment. The only link the DISCOMs have with
APTRANSCO is in utilising the transmission network and paying the
transmission charges as per the tariff orders of APERC. Under the
circumstances, it is appropriate that APTRANSCO does not exercise
control over the operations of the DISCOMs, so that their autonomy is
ensured;
(ii) The main activities of TRANSCO are: operation and maintenance of the
transmission system, carrying load flow studies, planning and executing
the network expansion and the load dispatch operations are. Experience
and in-depth knowledge of the transmission system operations should be
the main criteria for selecting persons to manage TRANSCO. This aspect
should be kept in view while appointing CMDs and other directors to the
STU.
(iii) The appointment of directors should be through an established selection
process, keeping in view job specifications, qualifications and experience.
(iv) The CMD and other directors should be initially appointed for a fixed
period of three years. Any further extension, based on merit, should be for
minimum period of two years.
(v) After the distribution function has been separated, not much vigilance
activity has been left with TRANSCO. Hence, the company does not
require a director level officer to oversee the vigilance activities. Each
DISCOM may have its own Director/Executive Director position for
effective monitoring of vigilance activity.
(vi) There is scope and need for further reduction in transmission losses.
4.3 DISTRIBUTION
Distribution is the most vital segment of the power industry, which has a direct
interface with the end users of electricity. Over the years, there has been
substantial growth in the distribution network and the number of consumers. At
the time of initiating power sector reforms, the number of electricity consumers
in the State was more than one crore. Associated with this growth, the
problems of managing the distribution system have also increased, affecting the
quality of supply. The gap between expenditure and revenue increased
gradually, due to rising input costs, failure to get the tariff adjustments carried
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