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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
activities should be outsourced so that there is no permanent liability on the power
companies. This would lead to greater efficiency, since the continuation of the
contractual staff would primarily depend on their meeting the set performance levels.
Regulators
Creation of fund
For ensuring independence of the Commissions, Section 103, of the EA, 2003 lays
down the requirement of creating a separate fund. Even after so many years, such a
fund has not been created as yet in Rajasthan. This leads to too much of dependence
of the Regulatory Commission on the State Government. A time limit needs to be
fixed for creation of such a fund.
Borrowings to meet Revenue Deficit
To meet the revenue deficit, the DISCOMs partly receive subsidy from the
Government. They also have to borrow from the market to meet their increasing
liabilities towards the suppliers. The borrowings are not reflected in the annual
revenue requirements and deficits as worked out in the Commission’s orders. Thus
while these figures are not reflected in the tariff petition, the financial health of
the DISCOMs is getting adversely affected and their escrow capacity is also
significantly reduced.
Capital Subsidy
As mentioned in the responses from DISCOMs to IIPA questionnaire, the charges
determined under Sections 46, 47 and 50 of the EA, 2003 should also be included for
claiming capital subsidy.
Staffing of Regulatory Commission
The Government has laid down that the Commission will have its staff on deputation
from the power companies. During the initial period, such an arrangement may work
but if periodically the staff is to be sent back to the power companies, firstly their
loyalties can get divided and secondly whatever specialisation is acquired is lost when
the concerned person is transferred back to the parent department at the end of the
deputation period. From a long-term perspective, the Commission should have its own
independent staff. It may like to give preference to such staff from the power
companies who opt for permanent absorption in the Commission.
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