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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
this multi-buyer model, the DISCOMs are now purchasing power required
by them directly from the generating companies.
1.3 IMPACT OF ELECTRICITY REGULATORY COMMISSION
Andhra Pradesh Electricity Regulatory Commission (APERC) has played a key
role in the successful implementation of power sector reforms in the State. The
Commission has not only come up with the regular tariff orders annually on
time since 2000-01, but also notified several regulations, codes and guidelines
for effective functioning of the Utilities. The Commission has facilitated
improved performance of the Utilities in both operational and customer-care
matters. The standards of performance (SOP) are fixed and regulations framed
for implementation. Consumer grievance redressal forums have been
established in the DISCOMs and the Ombudsman appointed to deal with
appeals.
There is a gradual reduction in the T&D losses on account of the regulatory
control mechanism and the companies have started making profits since 2004-
05. The performance gains of the power Utilities have their impact on the retail
tariffs, which have not increased in the last three years. In fact, there has been a
reduction in the retail tariffs in respect of the subsidising categories of
consumers (industrial and non-domestic commercial categories).
The Commission has introduced the Multi-Year Tariff (MYT) framework. The
first control period for MYT has been fixed as three years, covering the period
from 2006-07 to 2008-09. Subsequent control periods are for five-years
duration. The tariff orders for the year 2006-07 have been issued by the
APERC under the MYT framework. The Commission has ensured regular flow
of cash subsidies to the restructured companies. The Regulatory Commission is
functioning quite independently in the State, as there is practically no
interference from the Government.
1.4 PERFORMANCE OF THE UTILITIES
All the restructured Utilities have achieved commercial viability in a span of
five years. The company-wise achievements are analysed hereunder:
1.4.1 Generation Company
At the time of restructuring, APGENCO was vested with the assets and
liabilities of the generation wing of the erstwhile APSEB. The performance of
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