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

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4.2.6 Implementation <strong>of</strong> Present Issues Under the EA, 2003<br />

Open Access<br />

Synopsis <strong>of</strong> State <strong>Report</strong>s (Vol.-IV)<br />

Study on `Impact <strong>of</strong> Restructuring <strong>of</strong> SEBs’<br />

Open Access regulation has been notified by MPERC on 24 June 2005. Open<br />

Access to users <strong>of</strong> non-conventional energy sources and captive generating<br />

plants <strong>of</strong> conventional energy is provided with immediate effect. Accordingly,<br />

Open Access to users, other than non-conventional energy sources and captive<br />

generating plants <strong>of</strong> conventional energy, has been provided as per the load<br />

pr<strong>of</strong>ile <strong>of</strong> consumers effective from October 2005. For non-discriminatory<br />

Open Access, applicable surcharge has not been fixed as yet.<br />

MYT and ‘Open Access’<br />

The SERC has notified the Open Access regulations in the State and has<br />

introduced the MYT framework. Following the directives <strong>of</strong> MPERC, GENCO<br />

and TRANSCO have submitted their ARR for MYT in 2006-07. The MYT<br />

framework is envisaged for a control period <strong>of</strong> three years starting from 1 April<br />

2006.<br />

4.3 RECOMMENDATIONS<br />

(a) The DISCOMs are carrying a sizeable component <strong>of</strong> generic loan<br />

liabilities <strong>of</strong> pre- reform period. Amounts <strong>of</strong> Rs 252 crore, Rs 494 crore<br />

and Rs 316 crore has been shown against the DISCOMs <strong>of</strong> Poorv Kshetra,<br />

Paschim Kshetra and Madhya Kshetra respectively. In regard to these<br />

generic loans shown in the opening balance sheet <strong>of</strong> DISCOMs, the<br />

Commission has said that unless full details are provided to the<br />

Commission and it is proved that these loans have been utilised towards<br />

creating assets, the Commission will consider them as working capital<br />

loans and will allow interest to the extent <strong>of</strong> normative working capital<br />

requirements. Unless there is a clear understanding about the rationale for<br />

these loan liabilities, the legitimate claim for expenses, etc., <strong>of</strong> the<br />

DISCOMs may defy a practical solution.<br />

(b) There are outstanding issues relating to transfer <strong>of</strong> assets, liabilities and<br />

staff, which have not been resolved as yet. It is not easy for the Madhya<br />

Pradesh Government to come to a settlement unless there is equally a<br />

positive response from the Chhattisgarh Government. Since these are<br />

post-reorganisation matters between the two States, it would require<br />

47

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