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

Madhya Pradesh
8.5.2 Directives Issued by MPERC
MPERC has taken significant steps for directing the DISCOMs to initiate action in the
critical areas, such as, intra-State ABT, MYT framework, franchisee model for rural
areas, SCADA implementation, installation of high voltage distribution system
(HVDS), implementation of pre-paid meters, re-conciliation of asset registers, etc.
However, MPERC does not set any time frame to achieve the directives issued in this
regard. It is apparent that given the appropriate support in terms of financial
independence and capacity building, MPERC can play an important role in creating a
credible regulatory framework for the success of the reforms.
There was a noticeable tendency on the part of the MPSEB/DISCOMs not to comply
with the directives issued by the Commission. Since these are Government owned
companies, the MPERC finds it difficult to obtain compliance. However, it has taken
some strong position on non-compliance of its directive regarding submission of
Capex Plans for scrutiny and not obtaining its prior approval.
8.6 GENERATION SECTOR
8.6.1 Inadequate Capacity Addition
Generating capacity addition in the State sector had been lagging. A number of MoUs
were signed with the independent power producers (IPPs, 22 Nos.). However, like
other States owing to the poor paying capacity of the power Utilities, the same could
not materialise. Only 50 MW capacity additions could be achieved since 2002-03 in
the Hydro sector and thermal capacity stands at 2,147.50 MW from 2000-01 onwards.
The State must vigorously explore other avenues to bridge the demand-supply gap if
adequate power by way of capacity addition is not made available in the State.
8.6.2 Low Investment on R&M of Generating Stations
Most of the generating stations in the State are 25 years or older and require frequent
shutdown for maintenance. The generating stations need frequent overhaul and are in
urgent need of R&M interventions. However, the level of investment in R&M
activities had been at a very low level. The SERC has taken a serious note of underutilisation
of the approved funds allowed in the ARRs. The Commission has refrained
from clawing back the amount retained and not utilised for R&M purposes. R&M
activities should be given due priority so as to increase the generation as also the PLF
of the stations.
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