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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
conventional energy has been provided as per the load profile of consumers effective
from October 2005. For non-discriminatory Open Access applicable surcharge has not
been fixed as yet. The framework for competition in the choice and Open Access is in
place but the principles for determination of surcharge payable by the Open Access
consumers has not yet been formulated.
5.2.2 Directives Issued by MPERC
MPERC has so far issued about 25 final/draft regulations on several issues. The
Commission from time to time is also issuing concept papers and relevant directives.
The Commission has played a proactive role in making the process of reform a
success. However, the DISCOMs have not been able to comply fully with the
directives issued by the Commission. It is apparent that non-compliance with the
Commission’s directives is affecting the DISCOMs itself. The Commission in its
recent tariff order for distribution and retail supply for the three DISCOMs for 2006-
07 has disapproved the cost on capital expenditure and interest cost. This is on
account of the fact that the DISCOMs could not submit the business plans as also the
capex plans for the expenditure proposed to be incurred by them in the ensuing year.
6. Role of the State Government
The State Government expects the outcome of reforms as to attain the financial
viability of the power sector, better service quality for consumers, more affordable
access to electricity for consumers, improvement in Government fiscal position and
redefining the role of public sector. The State Government has shown commitment for
the reforms and is getting assistance form ADB to implement the reforms. Financial
support for the DISCOMs to meet the revenue deficit as well as subsidy for
agricultural consumers does indicate its commitment to facilitate the reform process
during the transition period.
4.50