Power Sector SCENARIO in Rajasthan

Presented By:Deepak Saxena

CUTS Centre for Consumer Action, Research & Training (CART)

Legislations Relating to Electricity

Year Act/Policy Main Features

1910 Indian Electricity Act

Governed the relations between the consumer and the licensees

1948 Electricity (Supply) Act

Governed the constitution of the Central Electricity Authority, State Electricity Boards, Generating Companies, Consultative Councils and local Advisory Committees.The Act  empowered the State to make rules providing for management and accounts of the State Electricity Boards.

1956 The Indian Electricity Rules,

To regulate the supply, transmission, generation, and use of electricity.

1998 Electricity Regulatory Commission Act

For the establishment of a Central Electricity Regulatory Commission and State Electricity Regulatory Commissions,

2003 Electricity Act 2003

To consolidate the laws relating to generation, transmission, distribution, trading and use of electricity

2004-05

National Electricity Policy

It aims at laying guidelines for accelerated development of the power sector.

2007 Electricity Amendment Act

Specifying Anti-theft measures to reduce the T&D Losses. Putting the theft of power in the categories of non- bailable offence, so as to curb the evil ;ab-initio;.

The Beginning..

• In 1993, the Government of Rajasthan decided to reform its power sector

• This was followed by a Broad Reform Policy Statement, issued in Sept. 1995

• The policy statement was further revised in 1997 and 1998 and finally adopted in May 1999.

POLICY STATEMENT

The main objectives of the statement:

• To bring about comprehensive reforms

• To facilitate and attract investments

• To bring improvements in the efficiency of delivery system

• To create an environment for growth in the power sector

Rajasthan Power Sector Reforms Act, 1999

• Approved on September 25, 1999

• Presidential Assent on December 28, 1999

• Published in the official gazette on January 10, 2000.

• Came into force on June 1, 2000.

Important Features

The main components of the Reform Programme:

• Unbundling of erstwhile Rajasthan State Electricity Board (RSEB)

• Ensuring private participation in the distribution companies in a phased manner through conversion into joint venture companies.

• Ensuring improvements in the transmission and distribution network through World Bank assisted project .

Rajasthan Electricity Regulatory Commission

• Established on 2nd January, 2000 under the ERC Act, 1998.

• The important regulations issued by the Commission include

> Metering Code for Rajasthan Grid

> General and Planning Code

> System Operation and load Dispatch Code

> Standards of Performance

> Safety Standards Code

> Open Access Code

Functions of RERC

• Determining the tariff for generation, transmission and distribution of electricity

• Regulating electricity purchase and procurement process • Issuing licences• Promoting cogeneration and generation of electricity from

renewable sources of energy • Adjudicating upon the disputes between the licensees, and

generating companies and to refer any dispute for arbitration• Specifying or enforcing standards with respect to quality, continuity

and reliability of service by licensees• To advise the State Government on the following matters: • (i) Promotion of competition, efficiency and economy and

investment in electricity industry• (ii) Reorganization and restructuring of electricity industry • (iii) Matters concerning generation, transmission, distribution and

trading of electricity

Reforms Journey so far.....

• Private partnership in the unbundled power distribution companies is on the anvil.

• Actively encouraging the use of non-conventional energy sources, such as solar and wind-based energy.

• The Government formulated the Captive Power Plants Policy whereby any industrial unit or units can set up a power plant with a capacity of 166 MW or less for captive use of the industries in that area.

• With the notification of the Rajasthan Power Sector Reforms Transfer Scheme 2000, on 19th July 2000 the assets, liabilities and personnel of the RSEB have been transferred to the newly formed 5 companies namely:

• 1 generation company (RVUN),• 1 transmission company (RVPN) • 3 distribution companies, viz. Jaipur VVNL, Ajmer VVNL and Jodhpur

VVNL

Milestones

• 1st State in the country to have completely separated all the three functions in a single stage

• 1st state in India that adopted the International Competitive Bidding process for seeking private sector participation in creating additional capacity for generation of power.

Shyama Prasad Mukherjee Feeder Renovation Programme

objectives

• Ensuring speedy and time bound implementation of Loss Reduction Programmes with both urban and rural focus.

• Ensuring sustained and effective vigilance efforts

• ensuring greater responsiveness to consumer grievances

• Effective use of automation and IT enabled services

Shyama Prasad Mukherjee Feeder Renovation Programme

essential features

• Segregation of urban/industrial feeders from rural feeders

• Use of AB Cables of LT lines

• Temper proof consumer metering (push type)

• Services line through armoured cable

• Sustained support through vigilance activities

• Providing better quality of domestic supply in rural area.

Category wise and company wise number of consumers as on

31-03-2004SN Category

Jaipur Discom

Ajmer Discom

Jodhpur Discom

Total

1 Domestic 1546844 1532226 1347276 426346

2 Commercial 293897 234860 201321 730078

3 Industrial56337 56271

33998 146606

  Low & Medium

 4 High Voltage 1023 1079 497 2599

5 Public Lighting 2622 3243 1924 7789

6 Railway Traction 8 0 0 8

7 Agriculture 269456 282072 138364 689892

8 Public Water Works 7090 10517 9783 27390

9 Miscellaneous 4370 4582 2216 11168

10  Total 2181647 2124850 1735379 6041876

Per Capita Consumption of Electricity

Year Consumption (kWh)

2006-07 6002005-06 5832004-05 5402003-04 5662002-03 517

Consumption Scenario as on December 2007

Category MU Percentage

Domestic 3376 19%Commercial 1089 6%Industrial 6311 36%Public Services 632 4%Agriculture 5178 30%Others 780 4%--------------------------------------------------------------------------Total 17366 100%

Financial Losses

Losses (Year wise)

Name of the Nigam 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Jaipur Vidyut Vitran Nigam

432.96 52.91 524.80 615.02 339.52 434.09

Ajmer Vidyut Vitran Nigam

427.85 535.74 673.13 716.44 617.93 741.76

Jodhpur Vidyut Vitran Nigam

430.30 524.18 535.47 682.52 671.24 564.67

OUTCOMES

Positive• Some improvement in the quality of service and technical losses,

especially in urban areas.

• Measures taken for better consumer participation and to protect consumer interests

Negative

• Continuous rise of financial losses of companies

Conclusions

• The reform process was a must

• After reforms there is increase in per capita consumption

• After constitution of RERC, public participation has increased

• Distribution companies made significant progress in reducing the losses

Recommendations

• Need to create more awareness

• Demystify reform process to ensure and facilitate better consumer participation and monitoring

• Need to develop strong consumer protection mechanism

• Empower RERC for proper implementation of its orders/ directions

Thank You