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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
risk-sharing role through agreement for AT&C loss reduction in a joint
endeavour and the shortfall, if any, should be shared by the Government.
Through such an arrangement, the State Government would receive benefits in
the long run, possibly by way of reduction of subsidy amount.
The growing subsidy burden may call for rethinking on the existing low tariffs
for certain categories of consumers, since this is adversely impacting the
financial health of DISCOMs.
2.6.2 Regulatory Issues
Encouraging consumer advocacy groups and dissemination of information by
the Commission would create a more conducive participative atmosphere and
lead to a better understanding of regulatory process by the civil society at large.
The role of the media, particularly the electronic media, has generally been to
downplay the serious issues in the sector. It has not attempted to highlight
performance/underperformance on various aspects of deliverables of the
Utilities.
The Commission should formulate as early as possible the MYT framework
and prescribe the control period for bringing in efficiencies in the operation of
the Utilities and also for the reduction of AT&C losses.
2.6.3 Promotion of Competition
The Electricity Act, 2003 provides for promotion of competition and
introduction of Open Access in the distribution sector. The Commission has
formulated regulations for Open Access. An enabling environment is necessary
to facilitate Open Access. Clarity regarding principles for determining
surcharge to be levied for Open Access is overdue and requires intervention by
the Ministry of Power.
HERC is expected to play a vital role in promoting competition and efficiency
across the value chain in the power sector. Its composition with personnel
having domain expertise and experience can inspire confidence in the
stakeholders. HERC is at present facing manpower shortage at different levels.
Keeping in view the key role of HERC, personnel with relevant expertise need
to be inducted into the Commission.
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