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

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Rajasthan<br />

Category<br />

1995<br />

-96<br />

1996<br />

-97<br />

Billing and Collection Efficiency (%)<br />

1997<br />

-98<br />

1998<br />

-99<br />

6.23<br />

1999<br />

-2000<br />

Billing Efficiency (%)<br />

Domestic 100 100 100 100 100 100 100 100 100<br />

Industrial 100 100 100 100 100 100 100 100 100<br />

Agricultural 100 100 100 100 100 100 100 100 100<br />

Collection Efficiency (%)<br />

Domestic NA NA 96.5 95.9 95.2 96.9 99.3 97.7 97.1<br />

Industrial NA NA 101.2 100.8 99.7 100.1 101.1 100.6 99.8<br />

Agricultural NA NA 99.9 100.8 96.00 93.2 99.5 93.1 96.0<br />

Rajasthan has been performing very well on this front. Even during the prerestructuring<br />

period, 100 per cent billing <strong>of</strong> all the consumer categories was<br />

ensured. That system continues even now. The collection efficiency is ranging<br />

between 97 to 99 per cent in respect <strong>of</strong> domestic consumers and 99 to 100 per cent for<br />

industrial consumers. In the pre-restructuring period also, collection efficiency<br />

ranged between 99 to 101 per cent. In case <strong>of</strong> agricultural consumers, the collection<br />

efficiency has ranged from 98 to 100 per cent in the past. This percentage has<br />

somewhat declined in the post-restructuring period. Out <strong>of</strong> four years, the collection<br />

efficiency was 93 per cent in two years, 96 per cent in one year and 99 per cent in one<br />

year.<br />

The Regulatory Commission had raised the tariff <strong>of</strong> flat rate consumers in its last tariff<br />

order. However, there was a huge protest rally by the farmers and finally the<br />

Government had to yield. The DISCOMs have been directed that though the bills may<br />

be sent to the consumers on the basis <strong>of</strong> new tariff, the DISCOM should charge on the<br />

basis <strong>of</strong> old tariff from the billing month <strong>of</strong> October 2005. The estimated annual loss<br />

<strong>of</strong> revenue due to this step is likely to be more than Rs 200 crore. The Government has<br />

also issued oral directions from November 2002 for suspension <strong>of</strong> recovery <strong>of</strong><br />

minimum charges from agriculture-metered consumers. This concession is continuing<br />

since then. The financial burden on DISCOMs, due to this oral direction, is estimated<br />

to be more than Rs 300 crore annually.<br />

The EA, 2003 stipulates that if any concession is to be given by the Government to a<br />

consumers or group <strong>of</strong> consumers, it should compensate the DISCOMs but if the<br />

methodology as mentioned above becomes a precedent, it could open the<br />

floodgates for populist decisions by the Government in tariff matters, without<br />

2000<br />

-01<br />

2001<br />

-02<br />

2002<br />

-03<br />

2003<br />

-04

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