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

National Report (Vol.-II)
Study on ‘Impact of Restructuring of SEBs’
(d) In respect of sub-stations feeding an industrial area, the meter readings of
all high tension (HT) consumers, high voltage (HV) feeders, distribution
transformers and low tension (LT) consumers should be taken at a round
hour and in a short period on either side of this round hour for obtaining
realistic figures of loss of energy.
(e) The energy loss should be computed in kWh lost (and money lost on
applicable tariff). Each site-in-charge should be responsible to reduce the
kWh loss and this should be one of the important parameters for appraisal
of his/her performance.
6.22 Reducing Cross-Subsidies
6.22.5 The obligations of the States to provide subsidy to the agricultural sector
remains unabated, and keeps increasing. On the other hand, the fiscal inability
of the State Governments to provide the subsidy will seriously jeopardise the
entire reform process, which aims to rationalise the tariff structure and achieve
commercial viability in the sector.
6.22.6 There is no denying that the success of the power sector reforms is highly
dependent on arriving at an acceptable solution to tackle the issue of free and
highly subsidised electricity supply to the agricultural sector.
(a) The State Governments, along with the concerned Electricity Regulatory
Commissions, should review the existing policy of flat rate tariff for
agricultural consumers, since these consumers have the freedom to
consume unlimited quantity of power as compared to the consumers
whose pumpsets are subjected to metering.
(b) A connected issue is the serious problem of lack of proper water
conservation and inefficient use of pumpsets used for irrigation by
farmers for crops, which are highly water intensive. As a result, the watertable
is gradually going down. It is, therefore, necessary to adopt a
multidisciplinary approach to sensitise the farmers about the measures for
water conservation and efficient use of irrigation pumpsets and
machinery.
(c) The NEP affirms that over the last few decades, cross-subsidies have
increased to unsustainable levels. Cross-subsidies hide inefficiencies and
losses in operations. There is a need to correct this imbalance without
giving tariff shock to consumers. The existing cross-subsidies would need
to be reduced progressively and gradually. This directive has to be
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