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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
it was mentioned that the process would be implemented in a time-bound manner
(details of which were not included in it), for all purposes and intent, the DPS was a
blueprint for reform.
REGULATORY COMMISSION
The Karnataka Electricity Regulatory Commission (KERC) has been playing a major
role in the reform process of the power sector in the State. The KERA deals
extensively with the duties, powers and procedures regarding the Commission. The
Commission has so far issued three Tariff Orders. In fact, the close regulatory role
played by the KERC has invited complaints from KPTCL; its managing director wrote
to the KERC in 2003 that ‘the Commission held 80 meetings in the previous calendar
year and that there was an increasing attempt to get involved in day-to-day micro
management of transmission and distribution sectors. The frequent meetings and
public hearings called by the KERC were affecting the normal functioning of the
Corporation!’ 14 In turn, KERC clarified by the issue of a notice to the MD, KPTCL
that the list furnished by the latter included several public hearings on tariff proposals
etc., which, indeed, cannot be considered ‘unnecessary’.
The incident highlights the involvement shown by the KERC to straighten the affairs
of the sector to make it competitive and more self-sustaining, among others.
It may be seen that the relations between KERC and the utilities have not always been
smooth, in the past. Quoting from Shri S.L. Rao, “in Karnataka, the Government
instructed the KPTCL to hold up implementation of a KERC order on tariffs, without
any intimation to KERC, and entirely against the letter of the law. The KPTCL has
objected to the need of its officials to appear before KERC as often as they have done.
Clearly, they would not have done so without the encouragement of their owners- the
State Government” 15 .
ESTABLISHING CESCO
As mentioned earlier, the Karnataka Electricity Reform Amendment Rules, 2002
provided for only four DISCOMs in the State. They started functioning from June
2002. Recently, however, in 2004-05, the Government established one more
distribution company, named as Chamundeswari Electricity Supply Company
(CESCO). This company has Mysore as its headquarters, and covers five
neighbouring districts carved out from MESCOM. The working results of this
14 S.L.Rao: Governing Power; page 184.
15 S.L. Rao: Governing Power; page 174.
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