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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
• The metered consumption has increased from 38 per cent in 1999-2000 to
52.4 per cent by 2004-05.
• Electronic meters have been installed in respect of all industrial and high
value services.
• Metering of all 33 kV and 11 kV feeders has been completed.
• About 36,300 DTs are provided with meters.
There is a marked improvement in the billing and collection of revenues after
the restructuring. This is evident from the figures given below:
• Billing demand has increased from Rs 4,841 crore (1999-2000) to Rs
8,817 crore (2004-05).
• The overall collection efficiency in the post-reform period is ranging from
96.52 to 102.87 per cent as compared to 92.74 per cent in 1999-2000.
The turnover of the DISCOMs has increased year by year and the companies
have achieved turn around from loss making to profit earning entities. EPDCL
is in profits from 2002-03 onwards. SPDCL and NPDCL achieved the turn
around by 2003-04, while the CPDCL has joined them in 2004-05. Thus all the
six restructured power utilities in the State are in the profit margin from 2004-
05.
1.5.4 Subsidy
Prior to reform and restructuring, no cash subsidy was being provided by the
State Government, though there were accounting adjustments like conversion
of loan into equity, etc. Consequent to restructuring, the Government has
provided revenue subsidy in cash, in compliance of the Tariff Orders of
APERC
Due to substantially better performance by the Utilities, the subsidy component
has come down gradually from Rs 1,626 crore in 2000-01 to Rs 1,303 crore in
2004-05.
The cross-subsidy component in the tariff structure has also gradually come
down from 24.35 per cent in 2000-01 to 16.39 per cent in 2004-05. There has
also been a reduction in the retail tariffs in respect of the subsidising categories
of consumers (i.e. industrial and commercial) over the years.
1.6