The Telegraph
Since 1st March, 1999
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Sops under way for power distributors

New Delhi, Oct. 18: The distribution companies operating the 11 kilovolt feeders will get an incentive for higher billing and lower losses, which means the consumers — primarily residential customers — will get transparent billing with accounting for each unit consumed.

The committee, headed by Planning Commission member . K. Singh, is examining a proposal from a leading financial institution that offers a incentive and disincentive clause for the operators of 11 KV feeder stations. The proposal will be finally sent to various state electricity regulatory commissions (SERCs) for their comments.

“It (the financial institution) has proposed that 11 KV feeders should operate as a business unit with an aspect of higher commission and a special waiver of clearance for picking up a new feeder station. The disincentive could be as severe as total black listing of the company or its associate companies to take part in future bidding,” said a senior official in the power ministry.

“These units (11 KV) should be accountable for the quality of power supplied to the end consumer and reliability in metering, billing and collection. IT applications for remote metering at feeder stations will also help them to maintain a transparent billing system for the consumers,” the official said.

The committee, which will hold meetings with various stake holders in the power sector like state electricity boards, financial institutions, SERCs, the state governments and also non-government organisations, is likely to submit a composite report by the end of the year on the impact of Electricity Act 2003.

Officials in the power ministry said the thrust of the committee will be to attract foreign direct investment into the power sector. For this it will travel to the US, UK and European countries to showcase the renaissance of power sector in India.

“The aim is to block the leak of the basic revenue earning from the base of consumption. IT applications will be the mainstay for monitoring and collection,” sources said.

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