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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
support (approximately Rs 1,537 crore), without proper financial restructuring plan for
the support required by the utilities, would be self-defeating.
The important lesson from the reform process is the lack of public awareness and
participation in the process. This has led to total disconnect with regard to the
objectives, transitional problems and interplay of all the stakeholders in the reform
process. Communication strategy was part of the power sector reforms when these
were initiated. However, the same was not sustained to the desired level thereafter.
However, the required communication on different phases of the reforms did not
materialise.
There have been delays in setting up special courts for trying cases of electricity theft.
The State Government is awaiting the requisite approval of the High Court. Once this
is received, other measures such as creation of special police stations and special
teams in the DISCOMs will also be needed. The State Government and the MoP may
have to take up the matter at the appropriate level to expedite the matter.
REGULATORY ISSUES
The regulatory oversight and monitoring which is one of the necessary requirements
for the sector has been less effective, partly due to the attitude of the Utilities towards
the directives issued by the Commission and inability of the Commission to enforce
compliance by the Government-owned Utilities. This inherent dichotomy can be
addressed by mutual understanding of regulatory process and cooperation with the
Commission in achieving its objectives. The Commission’s overall role and
responsibilities have also to be supported by the State Government.
The treatment of pension liabilities of the staff at the time of restructuring of the
HSEB was not pragmatic as seen from the impact of unfunded pension liabilities on
the financial health of the successor entity, i.e., HVPNL. Unlike in the case of Utilities
in other Group-1 States, the State Government did not take over the past pension and
gratuity liabilities of the employees of the erstwhile HSEB. The entire burden of past
liabilities was transferred to the restructured Utilities, which affected the financial
health of the Utilities right at the beginning
Regulatory uncertainty regarding funding of provident funds (EPF) on actuarial basis
has not given full reimbursement from the approved ARR while the Utilities are
required to provide their share as per the accounting standards prescribed under the
Companies Act, 1956.
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