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

Anti Theft Measures
Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
For checking and prevention of theft of energy, the DISCOMs with the help of
the State Government undertook some measures. The number of preventive
raids were intensified during 2001-02 and 2002-03, but declined during 2003-
04. The drive against theft has not been maintained by the DISCOMs. Setting
up of special courts for speedy trial of electricity theft cases is delayed in the
State.
There is an urgent need for the State Government to provide support to the
DISCOMs to check theft of electricity. The DISCOMs need to undertake
concrete measures like: strengthening of the vigilance squads and replacing
bare LT conductors by armored cables/HT lines; etc.
2.5 Regulatory Process
HERC was established in August 1998. Though the regulatory process is well
developed, its effectiveness has been limited due to non-compliance of some of
its directives issued in the interest of stakeholders.
2.5.1 Tariff Revision
Since its inception, the Commission has issued seven orders on ARR for
Distribution and Retail Supply (D&RS) functions of the DISCOMs. However,
the distribution and retail supply tariff have been revised only thrice during the
last seven years. This is in spite of the increase in power purchase expenses of
the DISCOMs. In the tariff setting philosophy of the Commission, it was
envisaged that the tariff shall move towards cost to serve and cross-subsidy
shall be gradually removed. While there is no subsidy to domestic consumers,
tariff for industrial and commercial categories have remained the same.
Agricultural tariffs were reduced instead of being progressively increased
towards the cost to serve. This is a matter of concern since it is a deviation
from the basic principle of reforms and tariff rationalisation and phasing out of
cross-subsidies. The gap between ACS and ARR prevails primarily on account
of agricultural consumers. The realisation attained for the domestic consumers
is at 86 per cent of the average cost to serve and for the rest of the categories,
except the agricultural consumers, the revenue realised is more than the ACS.
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