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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
by the consumers, so that the consumers are discouraged from attempting to
damage and tamper with the meters).
After paying their bill of metered connection, they could be allowed a cash
refund on presentation of the bills. This can break the resistance of the farmers
to meters. Psychologically this can also highlight the extent of subsidy, which
the Government is providing to the agricultural consumers.
Table 6.4: Billing and Collection Efficiency (%)
Pre-Restructuring Post-Restructuring
1995 1996 1997 1998 1999 2000 2001 2002 2003
-96 -97 -98 -99 -00 -01 -02 -03 -04
Billing Efficiency
Domestic 100 100 100 100 100 100 100 100 100
Industrial 100 100 100 100 100 100 100 100 100
Agricultural 100 100 100 100 100 100 100 100 100
Collection Efficiency
Domestic NA NA 96.49 95.86 95.24 96.86 99.28 97.67 97.14
Industrial NA NA 101.17 100.84 99.66 100.06 101.08 100.63 99.76
Agricultural NA NA 99.94 100.78 96.00 93.15 99.49 93.08 96.00
Even during the pre-restructuring period, 100 per cent billing of all the
categories was ensured. That system continues even now. The collection
efficiency level is ranging between 97 to 99 per cent in respect of domestic
consumers and 99 to 100 per cent from industrial consumers. In the prerestructuring
period also, collection efficiency ranged between 99 to 101 per
cent. In the case of agricultural consumers, the collection efficiency has ranged
from 98 to 100 per cent in the past. This percentage has somewhat declined in
the post-restructuring period. Out of four years, the collection efficiency was
93 per cent in two years, 96 per cent in one year and 99 per cent in another.
This is again reflective of the soft approach of the State Government,
particularly towards the agricultural consumers.
It appears that the State Government has also issued oral directions (November
2002) for suspension of recovery of minimum charges from agriculturalmetered
consumers. This concession is continuing since then. The financial
burden on the DISCOMs due to this oral direction is estimated to be more than
Rs 300 crore annually. If such a methodology becomes a precedent, it would
open the floodgates for populist decisions by the Government in tariff matters
without any financial liability on the Government.
68