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

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State <strong>Report</strong>s (Vol.-III)<br />

Study on `Impact <strong>of</strong> Restructuring <strong>of</strong> SEBs’<br />

be funded, among other things, by electricity duty @ 5 paise per unit and a<br />

special charge on the bulk supply tariff/transmission tariff subject to approval<br />

<strong>of</strong> the Regulatory Commission. If there was any shortfall, it would be made<br />

good by the Government <strong>of</strong> Assam. The Scheme, therefore, assured the<br />

employees that their future pensionary and other benefits would not be affected<br />

by their employment with the new entities. The Government <strong>of</strong> Assam<br />

constituted an independent Selection Committee for appointment <strong>of</strong> managing<br />

directors and part-time directors <strong>of</strong> APGCL, AEGCL and DISCOMs. As per<br />

the recommendations <strong>of</strong> the Selection Committee, the names <strong>of</strong> managing<br />

directors <strong>of</strong> the company were notified in February 2005 and those <strong>of</strong> part-time<br />

directors in May 2005. On 31 May 2005, ASEB transferred the existing<br />

employees who had opted for the five new companies.<br />

3.8 A novel feature <strong>of</strong> the restructuring <strong>of</strong> the power sector in Assam is that the<br />

ASEB has been retained to carry out the function <strong>of</strong> bulk purchase <strong>of</strong> electricity<br />

from the generating companies including APGCL and supplying electricity in<br />

bulk to the DISCOMs. The implementation and coordination <strong>of</strong> the projects<br />

supported by ADB and through APDRP also continue to be with ASEB. The<br />

investments made in the new entities also vest with ASEB. It functions like a<br />

holding company and Chairman <strong>of</strong> ASEB is also the chairman <strong>of</strong> the new<br />

entities. Under Section 172(a) <strong>of</strong> the EA, 2003, the Government <strong>of</strong> Assam<br />

authorised ASEB to continue as a trading licensee for a further period <strong>of</strong> six<br />

months from 9 December 2005 to 9 June 2006 to enable the Board to continue<br />

with the bulk purchase and bulk supply <strong>of</strong> electricity. The Government <strong>of</strong><br />

Assam, vide Order dated 16 August 2005, also issued formal orders to give<br />

effect to the reorganisation <strong>of</strong> ASEB and the finalisation <strong>of</strong> the provisional<br />

transfer.<br />

4 ELECTRICITY REGULATORY COMMISSION<br />

The Assam Electricity Regulatory Commission was established in September<br />

2001 with a single Member. The State Government constituted the AERC as a<br />

multi-member Commission with a Chairperson and two Members in February<br />

2005. The Commission has issued tariff orders for the periods 2002-03, 2003-<br />

04, 2004-05 and 2005-06. The Commission has notified 16 Regulations as per<br />

the EA, 2003. Utilities have already filed Tariff Petitions before the<br />

Commission for 2006-07.<br />

8.8

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