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| India Infoline Sector Reports | Wed, 18-Feb-2004 16:50:28 IST (GMT+5:30) | |
| Power | ||
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Performance Indicators Plant Load Factor (PLF) : expressed as a percentage of actual production hours in the year is the most commonly used indicator to report standards of generation performance in thermal stations. The actual all India PLF of thermal power utilities during 1997-98 was 64.7% While a high PLF is indicative of high standards of the plant's maintainance and operational efficiency, a low PLF is not necessarily reflective of the opposite. Factors like age of the generating plant, quality of coal and its timely and adequate availability, shortcomings in energy evacuation and equipment deficiencies could influence the PLF level. Transmission And Distribution Losses (T&D) :Technical losses in T&D of 8-10% of the energy fed into the system are deemed to be normal. All India figures of T&D losses are alarmingly high - in excess of 22%. Lack of adequate investment in T&D systems and systematic distribution planning are major reasons contributing to technical factors for the high level of T&D losses. Defective metering, unmetered supply and pilferage are the main non-technical factors. Commercial Performance : The annual losses of SEBs have more than doubled since the sector was opened in 1991-92 and stood at Rs11.82bn. Scope for improvement is underlined by the highly uneven standards in different SEBs. The outstandings/revenue arrears of SEBs are low in the state of Tamil Nadu and high in Bihar where state and local Government offices and establishments are prominent among defaulters. Interference from outside (political/governmental) in the SEB's commercial functioning and no firm policy on disconnections are the causes for SEB's inefficiencies. Financial Performance : The Electricity (Supply) Act, 1948, enjoins SEBs to ensure a minimum return of 3% of the value of fixed assets in use. During 1995-96, out of 17 SEBs, all except those of Bihar, Assam and Meghalaya achieved the minimum prescribed 3% or more. These 3 SEBs had a negative rate of return during 1995-96. Reflective of the grim state of SEB finances is the position of outstanding dues to central PSUs. Prices And Tariffs : Apart from the inability of SEBs to raise investments, is the uneconomic pricing of electricity. The depressed average tariffs are due to subsidised prices charged to the domestic and agricultural segments. Agricultural consumption is subsidised in all states without exception, although there is wide variation in the subsidy extended. Absence of cost-based economic principles in consumer category-wise tariff setting, uneconomic levels of cross-subsidies, reliance on historical rather than marginal costs and inability to recover the costs incurred are serious weaknesses in the tariff policy of SEBs. Quality Of Power : The quality of power is also poor with the domestic sector voltage dropping to as low as 150 volts (as against 220 volts) and that in the EHV segment sometimes dropping to as low as 300kv (as against 400kv which is seldom available). Distribution of power after generation is equally important, as power generated cannot be stored. Fortunately, implementation of the transmission programme in the Eighth Plan has been near to satisfaction. In the area of transmission, India now has a distinct advantage of putting up an 800KV transmission line for the first time, a right step forward for a country of India's size and a move in the direction of establishing a national grid. Very few countries can boast of having an 800KV transmission line, capable of transmitting bulk power from one region to another, to optimize a nation's installed capacity.
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