Recent Reform
Initiatives
States have started
undertaking SEB reforms in order to save it from financial
bankruptcy, improve operational parameters, fund fresh capacity
addition and provide better service to consumers.
Reforms As
We Understand Encompass:
- Setting up of an independent SERC
in each state which will be the ultimate deciding authority in
tariff fixation, eliminating political interference in tariff
fixation.
- Unbundling of the SEB into
generation, transmission and distribution entities
- Corporatisation of each of these
entities
- Privatisation of each of these
activities
- Making these entities leaner and
more efficient, pruning down workforce, training of personnel to
make them more consumer oriented.
- Rationalisation of tariffs, which
includes raising agricultural tariffs to reasonable levels.
- Metering of all connections to
ensure that all consumption is billed
- Toning up the collection mechanism
to ensure that all bills are collected
- Reduction of system losses through
systematic investments in good quality T&D equipment
- Investments in R&M and Life
Extension of power plant equipment so as to improve operational
efficiencies
- Improvement of metering technology
to include time-of-day metering, remote meter reading, theft proof
meters etc
At the central
level, the CERC, which is the tariff fixing authority for central
utilities, has been formed.
Most of the states
have already set up the SERC. States like Orissa, Andhra Pradesh,
Karnataka, Haryana and Uttar Pradesh have only made a beginning in
reforms. Orissa was the first state to unbundle and corporatise its
SEB into OPGC and OHPC - the state-owned generation entities,
Gridco, the state-owned transmission entity and 4 private
distribution companies.
For detailed status
on state reforms, click
here
6700622
