State Level Power Sector Reforms in India : A Case Study of Odisha (original) (raw)
Related papers
World Review of Science, Technology and Sustainable Development, 2016
In Indian electricity supply industry, the state electricity regulatory commissions presently follow rate-of-return regulation for setting the retail tariff for distribution utilities. However, the current approach of tariff determination does not guarantee any incentives to the utilities to reduce their operating costs and often leads to arbitrary decision making. Accordingly, a performance-based regulatory mechanism has been recognised as an alternative approach to the traditional rate-of-return regulation and most of the state electricity regulatory authorities are now in the process of implementing performance-based regulation regime for setting the distribution tariff. This paper analyses the cost efficiency of 58 Indian electricity distribution utilities during the period 2008/09-2011/12. The estimated 'best' practice frontier could be used by Indian state electricity regulatory authorities as a benchmark to control utility's cost and further could be served to provide preliminary base for implementing performance based regulation in Indian electricity supply industry.
Journal of Advances in Management Research, 2020
PurposeThe objective of the present study is to evaluate and analyse the performance of Indian electricity distribution utilities post the implementation of landmark Electricity Act 2003.Design/methodology/approachStochastic frontier analysis (SFA) that incorporates exogenous influences on operational efficiency is adopted in the present study. Specifically, a stochastic frontier production function model with a technical inefficiency effects model (Battese and Coelli, 1995) is chosen as a preferred model. In this model, the function that explains the inefficiency scores is estimated in a single stage with the production technology. This avoids the problem of inconsistency which is possible in the two-stage approach.FindingsThe sample involved 52 Indian electricity distribution utilities for seven-year period from 2006 to 2013. Major findings of SFA show that Indian electricity distribution utilities post the implementation of Electricity Act (2003) had, on average, experienced effi...
Future of Indian Power Sector Reforms: Electricity Amendment Bill 2014
Energy Policy, 2017
India had its first act on Power Sector in 1910. Till 1991, lack of significant structural changes and achievements has labeled these 80 years as nascent stage for Indian Power Sector. In 1991, various reforms were initiated by the Government to deal with the shortage of power and to attract private investment. Though further reforms initiated by Electricity Act 2003 attempted to address many issues of the Indian power sector; losses and bad financial health of distribution sector is still an area of concern. To manage the distribution segment in more efficient way there is a need of third generation reforms. This paper critically evaluates the salient features of Electricity Act 2003, present scenario of Indian Power Sector with special emphasis on distribution losses and the concern areas which are plaguing the sector. The review also foresees the role of Electricity Amendment Bill 2014 in the introduction of retail in India by separating distribution business from supply business.
A Performance Analysis of Power Distribution Utilities of Haryana
Asian Basic and Applied Research Journal, 2020
In this paper, a discussion has been made about the installed generation capacity, power availability and power sold the number of electricity consumers, sector-wise electricity consumed, pending electricity bills, credit rating and settlement of pending electricity bills in the Haryana. The one reason behind the pending electricity bills may be the promises made by political parties at the time of elections to waive-off the electricity bills. This provides protection to consumers, especially in political sensitive districts. So, the Haryana Power Utilities (HPUs) are required to be changed adequately from substantial losses to the sound profit-making units by taking legitimate actions. The accessibility and availability of moderate and subjective power offer fuel to the motor of monetary development.
Performance evaluation and improvement directions for an Indian electric utility
Energy Policy, 2011
This study evaluates the performance of 29 Electricity Distribution Divisions (EDDs) of an Indian state -Uttarakhand -deploying Input oriented Data Envelopment Analysis (DEA). The results indicate that the performance of several EDDs is sub-optimal, suggesting the potential for cost reductions and possible reduction in employees number. In the DEA method more than one unit are identified as efficient. Therefore, this study suggests a method for ranking the efficient units by their importance as benchmarks for the inefficient units through benchmark share measure. The bigger the benchmark share, the more important an efficient division is in benchmarking for inefficient ones. Result reveals that plain area divisions are relatively efficient and have higher potential to influence the performance of inefficient EDDs. This study is envisaged to be instrumental to policy makers and managers to increase the operational efficiency of inefficient EDDs and thereby increase the competitiveness in the face of restructuring and liberalization of Indian electricity sector.
Problems in Power Distribution Utilities in India
EXCEL INDIA PUBLISHERS, 2015
India is both a major energy producer and a consumer of electricity. It is the seventh largest energy producer, contributing 2.49% of the world’s total annual energy Production. Power distribution is a vital segment in power sector. These utilities are responsible for distributing power and it is a subject of state and hence these utilities are responsible for supplying electricity to both rural and urban customers. The financial health of Discoms has a direct impact on the power generation and transmission companies. Therefore there is a need to maintain sound and healthy financial position of these utilities. The main problems due to which the distribution utilities are not able to perform better are Irregularities in payments made by government owned bodies, poor financial and low credibility, inability to raise funds for short term and long term use, increasing AT&C, Increasing gap between ACS and ARR, political intervention in tariff setting etc. The study suggests that political intervention should be avoided in tariff revision, precautionary measures to avoid power theft, inadequate metering, wrong meter reading, inaccurate billing, revenue leakages due to unbilled, avoiding late receipt of Subsidies from government and different customers, reduce transmission and distribution losses and improve Efficiency in collection to improve financials of discoms. Rural electrification has been a challenge; therefore an initiative should be taken to explore alternate energy sources.
The main purpose of the present paper is to make an appraisal of the existing Power Distribution Sector in India with special focus on loss reduction and efficiency improvement of power supply. Different major aspects of technical and non-technical losses have been identified and on the basis of that a number of remedial measures have been suggested for loss reduction and to facilitate the improvement of overall efficiency of the power distribution system. This may provide further inputs to energy planners and managers.
2018
The recent phase of power sector reforms has focused on distribution reforms, under the APDRP, and Information Technology (IT) is seen as a savior for the power industry, whereby advanced technologies such as digital metering will bring in much greater efficiency, theft reduction, and collection. While somewhat true, it is important to recognize that not all IT based solutions are equal, and poor designs can hamper longterm benefits. We present some analysis and results looking at different technologies and systems in the Indian context. In particular, we highlight some non-IT issues relating to reforms and tariff design that impact on IT's potential and pitfalls. A full "smart" system will offer long-term benefits beyond simply theft reduction, and should be the focus of planners, analysts, and industry.
Political Economy of Distribution Reforms In Indian Electricity
Despite sustained efforts to reform the sector, electricity distribution in India remains amidst complex problems, manifested in the form of loss-making distribution utilities, poor quality of service, governance ambiguities, and absence of basic data. The current wave of reforms seeks to turnaround the sector’s performance by transforming the generation mix, strengthening the network infrastructure, ensuring universal access and better consumer experience, and financial revival of discoms. While policy signals from the centre appear to be promising and ambitious, given the past records, execution of these reform plans at the state level is uncertain. Against this backdrop, the paper analyses the distribution reform initiated from the centre and the role played by the central government in shaping ideas and stimulating change at the state level. Looking into various diagnoses of the challenges and subsequent reform initiatives, the paper seeks to explain the political economy of successive reform attempts and their outcomes. It also identifies gaps in the current wave of reforms and raises questions for further exploration.
Power sector development in India: performance of state electricity boards in the pre-reform period
Indian Journal of Economics and Development, 2016
The objective of this paper is to examine the financial allocations in the plan periods for the power sector and performance of State Electricity Boards before the implementation of reform process in 2003. Subsidies to the agricultural sector negatively affected the SEBs. The state governments over-stretched themselves to provide electricity at a sixth of the actual cost of generation, which means 16 paise per unit versus a production cost of 92 paise.