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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
low. The investment significantly increased to Rs 130 crore in 2003-04 and to
Rs 264 crore in 2004-05 from Rs 27 crore in 2001-02.
4.2.3 Distribution
Under Operation and Management Agreement with MPSEB, the three
DISCOMs were to manage the distribution assets, planning and maintenance
operation within their respective areas. The DISCOMs have started their
independent operations from 1 June 2005. Hence, for the purpose of analysis of
distribution sector in Madhya Pradesh, consolidated data for MPSEB has been
considered up to 2004-05 and, thereafter, individual DISCOM-wise data has
been analysed.
Key Concerns
Power and Energy Shortages: The State has been facing acute peak demand as
well as energy shortages. The peak power deficit and energy shortages have
been as high as 28 and 23 per cent respectively in April 2006. The scenario
indicates that the State is likely to face a shortfall of around 20 per cent for
peak demand and energy requirements by the end of the Tenth Plan.
DTs Failure: The failure rate of DTs in the MPSEB system has increased by
4.75 percentage points (from about 18.13 per cent in 2001-02 to 22.88 per cent
in 2004-05). The failure rate of DTs for the individual DISCOMs also reveals a
similar trend with the failure rate as high as 22 per cent for Poorv Kshetra and
16 per cent for Paschim Kshetra.
Consumer Metering: There is a significant increase in percentage of metered
agriculture consumers from less than 1 per cent in 2000-01 to 30 per cent in
2004-05. However, the percentage of metered domestic consumers has come
down from 84 per cent in 2000-01 to 81 per cent in 2004-05, which is a
disturbing trend. A huge backlog of unmetered domestic and agricultural
consumers in the system is indicative of high quantum of losses being suffered
by the Utilities and warrants serious attention.
Collection Efficiency: The collection efficiency in respect of agricultural and
domestic consumer categories has suffered after the restructuring. In the case of
agricultural consumers, the collection efficiency has deteriorated progressively
from 88 per cent in 2000-01 to as low as 21 per cent in 2004-05. It is equally
poor for the domestic consumers and have come down from as high as 95 per
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