- Programmes to reduce Power Losses below 15% by March 2019 in all States on track
- Mandatory installation of Prepaid/Smart Meters to prevent corruption and increase compliance in Bill payments
- States to ensure Cross Subsidization in Power Sector remains below 20%
- Separation of Carriage & Content in Power Distribution to be brought about through an amendment to Electricity Act
Intro: Government of India is providing funds to the States under ongoing Central Government schemes of over Rs. 85000 crores, for strengthening their power infrastructure. As the Country is power surplus presently, States are now in a position to provide 24×7 power for all, which should be a primary obligation of the State Utilities, provided that the consumer pays for the power consumed, Reports Aruna Sharma in Governance Democracy&Politics (GDP), December Issue
Union Minister of State (IC) for Power and New & Renewable Energy, Raj Kumar Singh, chaired a Conference of Power and Energy Ministers of States/ Union Territories (UTs) recently. 17 States and 1 UT attended the Conference and deliberated on a host of issues including progress on Government flagship schemes at State level and reform measures that need to be brought about at both Union and State levels to ensure 24×7 Affordable and Quality Power for All.
Shri Singh clearly laid out Union Government’s Vision behind holding this Conference. Minister made very clear that 24×7 Power is a Fundamental Right of every citizen of the country and all States will have to ensure that by March 2019. The States have arrived at consensus-based roadmap to bring down losses in State Utilities/ DISCOMS to below 15% by then and any gratuitous load shedding by them after that deadline would attract penalties. “There can be no justification to pass on the burden of our inefficiency to the consumer and this shall not be allowed post March 2019. It is for the Power Utilities to devise strategy to reduce their losses, the consumer must not be burdened with high power tariffs irrationally”, the Minister added.
“Without power there can be no development; We are on our way towards becoming a developed country and power reforms are top priority. Industrialization and job creation is not possible without affordable and quality power for all. We are about to add 40 million new consumers by December 2018 and expected economic growth of 8 to 9% in the next 5 years, power demand would increase manifold”, Minister said.
Government of India is providing funds to the States under ongoing Central Government schemes of over Rs. 85000 crores, for strengthening their power infrastructure. As the Country is power surplus presently, States are now in a position to provide 24×7 power for all, which should be a primary obligation of the State Utilities, provided that the consumer pays for the power consumed, Shri Singh said.
Proposing a slew of reforms, Shri Singh said that in order to decrease the losses of the DISCOMs and make them viable, the Union Government is proposing to do away with human interface in meter reading and billing of consumers for power consumption. Mandatory installation of prepaid meters for small consumers and smart meters for large ones, with every connection in the future in each State, would prevent corruption and increase compliance in bill payments, the Minister stated.
“This will be a pro poor step as it will give the poor consumers flexibility to recharge that prepaid meters online through mobile phones, as and when they want, with a small amount at any given point of time. This would also do away with the human element in meter reading, billing and recovery of the amount from consumer and hence the corruption involved at the lowest level,” said Shri Singh. Giving an example of a successful implementation of prepaid meters, the Minister said that Manipur has been able to reduce its losses by over 50% by installing prepaid meter in all its urban areas.
Shri Singh emphatically stated that if losses continue, no matter how much funds are injected into the Power Utilities, the Non-Performing Assets (NPAs) would start building up again and the DISCOMs would ultimately become unviable in the near future. “This is an unacceptable situation and we have to make the losses a thing of the past”, he added. The Minister also requested all State Energy Ministers to take continuous review of DISCOM losses with senior officials of the State electricity department and ensure that the leakages are plugged and 24×7 power for all is mandatorily ensured by all States.
Minister said that it is proposed through an amendment in the electricity act to segregate the carriage from content in the distribution sector. It is planned to introduce multiple supply licensees in the content, based on market principles, and continue with the carriage as a regulated activity. Shri Singh further said that it is also proposed to set in place special police stations and courts to settle cases in the power sector at the earliest.
