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

Madhya Pradesh
is felt that the intention to provide lower tariffs for domestic and agricultural
consumers on socio-political grounds should not prevent the Commission to attempt
“rebalancing” of tariffs to translate efficiency gains into better pricing for industrial
and, commercial categories of consumers.
9. Conclusions
9.1 ESTABLISHED REGULATORY FRAMEWORK
The above analysis and evaluation shows that the enabling environment for the power
sector reform in the State is positive. The regulatory framework is fairly well
developed and a number of initiatives of the Commission have ensured better cost of
service recovery and prudent investments, Open Access, MYT, etc., are aimed at
creating a predictable regulatory regime.
9.2 SUPPORT FROM THE STATE GOVERNMENT
There is a strong commitment of the State to continue the reforms and for that purpose
the measures like financial support to the sector through FRP and setting up of the
special courts for speedy trial of cases of electricity theft would contribute to the
implementation of the reforms in the State. Proper Government and legislative support
is in place to make the reforms a success. Relatively, the involvement of the
DISCOMs which earlier functioned as franchisees of MPSEB will under go
qualitative change with the full assumption of their responsibility and control as
independent corporate entities under the direct over sight of MPERC.
9.3 STRUCTURAL ISSUES
There are structural issues relating to the role of MPSEB and TRADECO, which may
create conflict of interests and impact on the autonomy of the Utilities. This needs to
be addressed. Better understanding of the respective roles and responsibilities by the
various organisations will provide conditions for the reforms to move in the positive
direction.
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