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

Andhra Pradesh
out in time and delivery of power to certain categories of customers at
subsidised rates, without getting compensated though cash subsidies from the
Government. The overdue payments of APSEB to the lenders, suppliers and
contractors had crossed Rs 2,600 crore. Due to these circumstances, the State
Government has decided to undertake reform and restructuring of the power
sector.
At the time of restructuring APSEB into two corporations in 1999, the
distribution function was vested with APTRANSCO. Later in 2000, the
distribution function was separated from APTRANSCO and vested with four
area based DISCOMs, as mentioned earlier.
An analysis of the performance of DISCOMs during the last four years gives a
clear indication of the overall improvements in various fields of distribution
business.
4.3.1 Power Supply Position
The demand and supply gap in both peak demand and energy existed in
APSEB. The shortfall in the peak demand and energy prior to restructuring is
indicated in the table below:
Peak and Energy Shortfall: Prior to Restructuring of APSEB
Particulars 1994-95 1995-96 1996-97 1997-98 1998-99
Peak demand (MW) 790 1,000 1,110 850 800
Energy (MU) 1,609 2,215 2,318 1,496 560
Rostering of agricultural feeders and imposing load restrictions on the
industrial customers were some of the measures adopted to manage the
shortages. Also, there were unscheduled interruptions on account of load
shedding. The situation has improved gradually in the post-reform period
mainly because of the commissioning of the 900 MW Srisailam Left Bank
Power Station and the 1,000 MW NTPC’s Simhadri Thermal Power Station (at
Vishakapatnam). The shortfall in peak demand and energy in the post-reform
scenario are shown in the table below:
Peak and Energy Shortfall: After Restructuring of APSEB
2001-02 2002-03 2003-04 2004-05
Peak load shortage (MW) 10 4 4 113
Energy shortage (MU) 25 394 403 493
1.34