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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
3.9 INTEGRATION/REDEPLOYMENT OF THE STAFF OF KEB
Even though the transfer schemes provided for permanent absorption of the
staff in the various new companies, the Government of Karnataka could not
make it effective so far because of litigation by certain interested employees.
The DISCOMs have been in operation for four years now, but the staff of the
former KEB continues to be borne on the cadre of KPTCL and are placed on
secondment to the DISCOMs on need basis. As a result of the failure to
integrate the staff with the respective DISCOM, there have been no attitudinal
changes among the employees, nor the essential build up of motivation and
morale. The DISCOM staff is yet to inculcate an appropriate corporate culture,
with little perceptible reform impact on them. Moreover, instead of being a net
contributor to the State’s treasury, the restructured companies continue to
depend heavily on Government subsidy.
3.10 REGULATORY COMMISSION
The Karnataka State Electricity Regulatory Commission (KERC) has been
playing a major role in the sector reform efforts. Apart from approving three
tariff revisions so far, KERC has also approved ‘Open Access’, though, in view
of the high surcharge, only one consumer has shown interest in availing the
facility. MYT is under consideration. Several standards and codes have been
issued, all of which have been instrumental in improving the performance of
the restructured companies.
The relations between KERC and the Utilities have not been smooth in the
State, probably because the managements of the restructured companies
consider that the Commission’s decisions are tilted more in favour of the
consumers. They also consider that the Commission at times tries to micromanage
their affairs, and, in one instance, objected that the frequent meetings
and public hearings called by the Commission affected the normal working of
the Utility. In turn, the Chairman of the Commission has termed the
restructuring of the KEB a failure, since the new companies do not have
adequate autonomy and financial independence.
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