Patna: Power distribution companies across the country would have to pay a fine to consumers for load-shedding from the next fiscal, according to the Centre's draft tariff policy which is set to take effect from April 2019.

"Imposition of fine on distribution companies has been incorporated in the draft policy and we have left it to the state electricity regulatory authorities to decide the quantum of fine," union minister of state (independent charge) for power and new & renewable energy Raj Kumar Singh said during a video interaction with the media on Tuesday.

At present, there is no provision of a fine for load-shedding for power distribution companies in Bihar.

Singh also said that power companies would not be allowed to claim more than 15 per cent AT&C losses while making tariff demands before the state electricity regulatory commissions. "In case the loss percentage is more, the power companies concerned would have to bear its load," the minister said.

This provision, if incorporated in the final policy, would pose a big challenge for power distribution companies of Bihar. The state has suffered AT&C losses to the tune of 34 per cent in 2017-18 and these companies are aiming to bring it down by another five per cent by the end of the 2018-19 financial year.

Singh said states having AT&C losses of more than 15 per cent would be asked to submit plans for lowering the loss percentage to the desired level. The power ministry would keep tabs on whether the plans were being executed properly or not, he said. "In case of non-adherence to the plan, the power companies would face trouble on the funding front," the minister said.

Power industry watchers, when asked about the fine-for-load-shedding clause, said Singh was ambivalent on the definition of the term "load-shedding" - which is very often used loosely to describe any prolonged power outage.

Power outages, they said, can arise because of:

(a) A fault in the power line. It may take time to identify and rectify which can lead to a prolonged blackout

(b) A sharp fluctuation in voltage which can make it necessary to turn off power supply to protect equipment and power transformers

(c) A total blackout when a power station trips - a situation from which a quick recovery is not possible.

Load-shedding is, however, a deliberately planned event to shed power demand by ordering a pre-notified blackout in a particular area at a particular time in order to stop the breakdown of the power system that is unable to cope with that demand.

If the power ministry and the Central Electricity Authority (the power regulator) defines "load-shedding" in very precise terms, one is not entirely certain how big the fine will be and whether individual consumers will benefit at all.

The real beneficiaries could be industry (predominantly high tension - HT - consumers of power) who have precise contracts for power supply with the utility. Often, load-shedding can be resorted to when the utility decides to restrict supply and protect its power system for a blackout. It will then pre-notify hours when power will not be supplied. Such pre-notified load-shedding may lead to a fine.

Additional reporting by our business bureau