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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
State budget sub-head with a clear provision that the funds provided for such purpose
shall not be diverted.
For improving the ageing network infrastructure in rural areas of Haryana, which were
created for 100 per cent rural electrification achieved as early as in 1970s, the grant
funds under the Rajiv Gandhi Grameen Vidyutikaran Yojna should be tapped. This
would help in stabilisation of retail tariffs and reduce the burden of cross-subsidisation
on other category of consumers. This may have to be taken up by the State
Government so that the benefit of this scheme gets extended to the DISCOMs in the
State.
The DISCOMs depend for support of the State machinery to curb the theft of
electricity, which is endemic. The experience of AT&C loss reduction in States like
Andhra Pradesh shows that enforcement measures with State support produces
positive results. The State should have a risk-sharing role through agreement for
AT&C losses reduction in a joint endeavour and the shortfall, if any, should be shared
by the Government. Through such an arrangement, the State Government would
receive benefits in the long run, possibly by way of subsidy reduction.
The growing subsidy burden may call for rethinking the existing low tariffs for
agricultural consumers, which continues to distort the financial health of DISCOMs.
REGULATORY ISSUES
Encouraging consumer advocacy groups and sharing of information by the
Commission would create better participative space and lead to better understanding
of regulatory process by the civil society at large.
Role of media, particularly electronic media has been to downplay the serious issues
in the sector. It has not attempted to highlight performance/underperformance on
various aspects of deliverables of the Utilities.
The regulatory certainty and predictability require that the HERC should formulate as
early as possible the MYT framework and prescribe the control period for bringing in
efficiencies in the operation of the utilities as also for the reduction of AT&C losses.
Promotion of Competition
The EA, 2003 has mandated the creation of competition and Open Access in the
distribution end of the sector. The Commission has formulated regulations for Open
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