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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
Table 1.9: Revenue Subsidy
Year Subsidy (Rs crore)
2000-01 1,626
2001-02 1,561
2002-03 1,509
2003-04 1,515
2004-05 1,303
Due to the improved performance of the Utilities, the subsidy component
is gradually coming down.
The cross-subsidy component in the tariff has also gradually decreased
from 24.35 per cent in 2000-01 to 16.39 percent in 2004-05. There has
also been a reduction in the retail tariffs in respect of the subsidising
category of consumers (i.e., industrial and commercial) over the years.
(g) Financial Performance: The turnover of the DISCOMs has increased
year by year and the companies have achieved turnaround from lossmaking
to profit earning entities. EPDCL is registering profits from 2002-
03 onwards. SPDCL and NPDCL achieved turnaround by 2003-04, while
CPDCL achieved that in 2004-05. Thus all the six restructured power
Utilities in the State are registering profits since 2004-05.
(h) Consumer Service: In APSEB, adequate attention was not paid to
consumer care. APERC has not only fixed the standards of performance
but also monitored their implementation. As a result, there is a marked
improvement in consumer service. Consumer grievance redressal forums
have been established in each DISCOM to handle consumer complaints.
Ombudsman has also been appointed. Even with these measures in place,
there is scope for further improvement in the area of consumer care.
1.5 ISSUES AND WAY FORWARD
Restructuring of SEBs was an important component of power sector reforms.
However, much more needs to be done to attain the end goal of creating a
vibrant and viable power sector, which would provide quality power to the end
users at reasonable rates. To achieve this, the sector needs continued support
from the Government. In this connection, the following issues need to be
addressed:
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