PROBLEM IN POWER SECTOR
LOK SABHA
State Electricity
Boards (SEBs)/Power Utilities, have been suffering from serious
problems due to loss incurred in their operation because of gap
in cost of supply and revenue collection. The major factors responsible
for such losses inter alia include theft of power, high technical
losses, over staffing in utilities, poor metering, billing and
collection, irrational tariff and non-payment of subsidies by
the Government.
This information
was given in the Lok Sabha today in a written reply by the Minister
of State in the Ministry of Power Shrimati Jayawanti Mehta.
She told the House
that the government has initiated various steps to revive the
poor financial health of SEBs/Power Utilities. The Ministry of
Power has signed Memorandum of Understanding/Memorandum of agreement
with States on power sector reforms envisaging support of Central
Government subject to States’ progressing satisfactorily on agreed
reform agenda. Under the Accelerated Power Development and Reforms
Programme (APDRP), Government is providing financial assistance
for specific projects aimed at reducing Aggregate Transmission
and Commercial Losses. This has been combined with a provision
of a grant to the States linked to the actual reduction in losses.
Past dues of SEBs due to Central Public Sector Undertakings have
been securitized under tripartite agreements.
Earlier some States
had enacted their Electricity Reforms Acts. To provide a national
level legal framework for liberalization and reform of electricity
industry, the Electricity Act, 2003 has been enacted. Under the
Electricity Act, 2003, retail tariff is to be determined by the
State Electricity Regulatory Commissions.
These steps have
started showing definite signs of improvement in the functioning
of SEBs/power utilities. In 2001-02 four States - Gujarat, Maharashtra,
Haryana and Rajasthan have shown aggrregate cash loss reduction.
In addition, 10 States - Andhra Pradesh, Assam, Gujarat, Madhya
Pradesh, Maharashtra, Tamil Nadu, Uttar Pradesh, Himachal Pradesh,
Kerala and West Bengal have reported deduction in overall losses
during 2002-03.
