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

Madhya Pradesh
Due intelligence and vigilance should be exercised well in time so that the legal
disputes get minimised and consumers have full faith in the working of the power
utility. It is understood that a lot of manpower and resources are employed to prepare,
present and defend cases in courts of law from the Utility side also. Thus along with
the technological innovation, human resources to tackle the consumer and commercial
affairs should be developed. Measures such as Meter Reading Instrument (MRI) based
billing for high value consumers, introduction of spot billing, collection of bills by
cheque, introduction of mobile vans for collection of bills, periodic inspection of
feeders to identify the feeders having high T&D losses, etc., initiated by the
DISCOMs should be speeded up.
5. Regulatory Framework
MPERC was established in August 1998 and started functioning from January 1999.
Since its inception, MPERC has issued five tariff orders with a view to gradually
reduce the cross subsidy. Besides, the Commission has also issued the Supply Code
for ensuring better and quality service to consumers.
5.1 TARIFF REVISION
MPERC has been quite effective in rationalisation of tariff in the State and in meeting
the stipulations of MP Vidyut Sudhar Adhiniyam, i.e., to eliminate cross-subsidisation
in the tariff. The provision stipulates that the tariff to any class of consumer should
reflect a level at least 75 per cent the cost of supply to that particular class of
consumer with in the next five years. It has been seen that a gap exists between ACS
and ARR. This gap prevails primarily for agricultural pumpset consumers and is
nearing the cost to supply for the domestic category. The realisation attained for the
domestic consumers is at 86 per cent of the average cost to serve and for the rest of the
categories the revenue realised is more than the ACS.
5.2 IMPLEMENTATION OF CURRENT ISSUES UNDER THE EA, 2003
5.2.1 Open Access
Open Access regulation has been notified by MPERC on 24 June 2005. Open Access
to users of non-conventional energy sources and captive generating plants of
conventional energy was provided with immediate effect. Accordingly, Open Access
to users other than non-conventional energy source and captive generating plants of
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