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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
Distribution losses in the State have ranged between 37.66 and 42 per cent.
More significantly, the losses in 2001-02 (37.66%) increased to 39.83 per cent
in 2002-03 and further to 41.5 per cent in 2003-04. The State Electricity
Regulatory Commission has, from time to time, expressed its strong
displeasure over virtually no progress being achieved on this front despite huge
investments for system improvement. A firm determination to tackle the
politically sensitive issue of electricity theft appears to be lacking. The
vertically integrated Electricity Boards had the advantage of having very senior
officials as their Chairmen. After restructuring, comparatively junior level
officers are posted as MDs of the DISCOMs. Inevitably the Government
influence increases in their working and very often they are unable to resist
undue Government pressure.
6.2 COMMERCIAL
Table 6.2: Consumer Metering Status (%)
Years Before Restructuring Years After Restructuring
Particulars 1995 1996 1997 1998 1999- 2000 2001 2002 2003
-96 -97 -98 -99 2000 -01 -02 -03 -04
Agriculture 29.2 30.1 31.56 32.22 35.3 36.54 51.06 53.27 61.32
Other 100 100 100 100 100 100 100 100 100
Even during the pre-restructuring period, all the categories except agricultural
had 100 per cent metering. That trend continues even now. Rajasthan was
amongst the first States in the country to introduce electronic meters in the prerestructuring
period even for domestic consumers in a big way. For the last
many years, only electronic meters have been purchased by the RSEB and later
by the DISCOMs. In the agricultural sector, by 2003-04, only 61 per cent
metering has been achieved. A large number of agricultural consumers have
not allowed the meters to function properly in the past.
Mere symbolic installation of meters for agricultural consumers is not enough.
The entire chain needs to be reviewed. So long as, non-operational meters are
considered a ‘paying proposition’ by such consumers, they would not allow
installation of foolproof meters. The SERC may explore the possibility of
fixing the minimum charges, etc., in such a way that the agricultural consumers
themselves start insisting for meters. (The minimum charges in respect of
defective/non-functional meters may be higher than the average consumption
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