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

Rajasthan
up; secondly, the Government and the State Regulatory Commission have allowed the
generation company to run on “no profit no loss basis”. Consequently, the per unit
cost to DISCOMs from GENCO is much less. Hence, the annual jump in the power
cost is much lower. While the annual rise earlier used to be in the range of 10 to 20
per cent, from 2001-02 onwards, the percentage increase has ranged between 2 to 5
per cent.
The per unit deficit has also increased significantly as could be seen from the
following Table:
GAP between ACS and ARR (paise per kWh)
1995-96 1996-97 1997-98 1998-99 1999-
2000
6.21
2000-01 2001-02 2002-03 2003-04 2004-05
32 35 42 64 100 106 87 103 116 117
However, despite the lower cost of power to the DISCOMs, the gap between the cost
of power and the cost of recovery has increased. From 1995-96 to 1998-99, the
shortfall in per unit cost ranged between 32 and 64 paise. In the post-restructuring
period, the gap has ranged between 87 and 117 paise. In percentage terms also,
while earlier the deficit used to be in the range of 15 to 16 per cent (1995-96 to
1997-98), it has risen to a range of 20 to 25 per cent during the four years of the
post restructuring period.