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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
independently. Therefore the actual performance evaluation of the DISCOMs in
respect of their operation as independent corporate entities can be done only after
certain period of time. MPERC in its tariff order dated 31 March 2006, which is the
first Annual Revenue Requirement (ARR) for determination of tariff in respect of
these DISCOMs for 2006-07 has stipulated the following programme for AT&C loss
reduction:
DISCOM
Prescribed by the Commission
Indicated by the
respective DISCOM
2005-06 2006-07 2007-08 2008-09 2005-06 2006-07
Poorv Kshetra 35.5 32.5 29.5 26.5 38.73 35.88
Paschim Kshetra 31.7 30 27.5 25 31.5 30
Madhya Kshetra 41.6 37 32 27.5 41.6 38
Source: MPERC
The target level regarding AT&C losses for 2005-06, as prescribed by MPERC, has
been achieved by Paschim Kshetra and Madhya Kshetra DISCOMs, whereas the same
has not been achieved by the Poorv Kshetra DISCOM (the gap of 3.23 per cent is yet
to be met).
For checking and prevention of theft of electricity, Madhya Pradesh Urja Adhiniyam
was notified by the State Government on 17 April, 2001. Several administrative
measures have been undertaken by the DISCOMs to check electricity theft These
include strengthening of the Vigilance Squads, replacing bare low tension (LT)
conductors by armored cables/HT lines, setting up of special courts for speedy trial of
electricity theft cases (92 special courts have been set up so far).
4.1.2.4 Multi Year Tariff Framework
MPERC has introduced Multi Year Tariff (MYT) framework under which a loss
reduction trajectory and other targets of expenditure, etc., are fixed for the control
period.
MPERC directed that the first control period for MYT will run for a period of three
years, i.e., up to 2008-09 for all the five companies. The tariff determined under its
tariff order for 2006-07, under the present order, shall be the tariff and charges
recoverable from various consumer categories during the control period. MPERC will
review the actual performance of the targets of efficiency and conduct truing up of
cost through Annual Revenue Requirement (ARR) for each year. The distribution
licensees are required to file their ARR application before the Commission every year
by 31 October.
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