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

Rajasthan
In respect of distribution, besides aspect of capital addition, there are number of other
factors affecting tariff, namely: T&D loss reduction, growth of load, consumer mix,
etc. Tariff determined for the control period will have more conditionalities and may
have to be fine tuned annually.
The MYT determination will have the advantage of giving trend of expenses, revenue
and tariff for future. In cases where tariff determined for a year is high and reduction
is anticipated later, tariff can be reduced.
MYT is certainly a desirable concept, which should take roots in due course, but
particularly for DISCOMs, it is rather premature. DISCOMs are passing through a
transitional phase. The regulatory mechanism is yet to fully register with the public
representatives. Reduction of subsidies is a very sensitive subject. Publishing in
advance the reduced subsidies in future may unnecessarily scare them and the political
parties in the Opposition would highlight such increased future tariff. A tariff for
which the Government may agree soon after the elections may not be palatable to the
same Government on the eve of elections. Tariff fixation is not merely an accounting
exercise. It is also a part of long-term strategy. Therefore, the experiment of multiyear
tariff should be gradually introduced.
Power Trading
RERC has notified its Regulation on licensing of the traders. According to Regulation
3, an inter-State trader, issued license by CERC, will not be required to take license
for sale or purchase of electricity within the State. He will, however, abide by
provisions of Regulations 26 and 29 regarding submission of information and
redressal mechanism. Presently, there is little likelihood of any trader operating only
within the State of Rajasthan. At a later date, when Open Access is extended below 1
MW and traders enter into supply to retail consumers, such a situation may arise.
Performance Standards
Regulations regarding distribution licensee’s standard of performance were notified
on 29 March 2003. Provision has been made for registration of every complaint. A
time limit has been fixed for disposal of complaints. Complaint redressal meetings are
to be held on 10 th of every month at the level of Assistant Engineer and 20 th of every
month at the level of Superintending Engineer. Distribution transformers have to be
rectified or replaced within two days of complaint in the urban areas and within three
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