"Power Sector Reforms - Driving Growth"

- Lokabhimukha Guidance-- H.S. Patel IAS (Retd.)

- Regulatory Commission has power to fix electricity rates

(continued from previous)

In the previous article, the Electricity Act-1910 which was enacted during the British rule, which contained regulatory provisions and monopoly (Monopoly) elements, so that the Electricity Act of 2003 was enacted and it mainly made important provisions as part of the energy sector reforms, dissolution of the State Electricity Boards. Along with unbundling process in a corporatized manner, Generation Transmission and Distribution had to be separated, along with formation of mandatory Electricity Regulatory Commission, National Tariff Policy, Rationalization of Agriculture Tariff and also made important provisions like affordable and economical quality power supply to consumers without interruption. To ensure reliable and uninterrupted quality power is to be provided. During the most important phase of my service in the energy sector, i.e., during the transition period of the energy sector in Gujarat, I was the Secretary Gujarat Electricity Board and during this period the Electricity Act was framed and among many important provisions, special provisions related to electricity theft are important to be added. -2003 formulated and seven companies including GUVNL formed and operationalized as part of corporatization by splitting the Electricity Board also, during this period 'Jyortigram Yojana' was formulated and implemented to provide 24 x 7 power supply to every village in the state and thus across the country. Gujarat is such a state that 24 hours power supply is provided in every village of the state. This work was successfully completed in three years by the will of the state government and the team of officers of that time including us. The operation of electricity companies and the active role of consumers as the most important part (Stakeholders) in the Electricity Act-2003 because according to the provisions of the law, the powers of electricity distribution companies (including Torrent) to determine the electricity rates that are supplied to the consumers do not have. But the Gujarat Electricity Regulatory Commission has the powers to fix the tariff.

Tariffs are to be fixed by following the procedure laid down by the Electricity Regulatory Commission in the Electricity Act-2003. And accordingly, every year every power company has to submit the annual revenue (Capex Capital Expenditure) along with their performance criteria as well as the tariff proposal to the commission and accordingly the commission issues a public notice and invites objections/suggestions from the public including consumer related organizations ( e.g. Consumer Protection Union etc.) may make a representation and an opportunity of hearing is given by the Commission in which after giving an opportunity to the power companies to also present their proposals and objections, the tariff order is passed by the Commission and accordingly the power distribution companies to the customer. Charges electricity rate per unit and other charges from The commission calls for performance parameters from the concerned generation companies, transmission companies and power distribution companies and the criteria are fixed accordingly. In the context of power distribution companies and the maximum impact on consumers regarding their power rates, earlier the technical term T & D Loss (Transmission and Distribution Loss) was prevalent, now it is known as AT&C Loss (Aggregate Technical and Commercial Loss). The most important area As power distribution i.e. as the system supplied to the consumers DISCOM power distribution companies are included.At present there are four power distribution companies MGVCL, DGVCL, UGVCL and PGVCL in Gujarat. These companies provide power supply in their license area.Now moving forward in terms of Carriage and Context i.e. in many developed countries there are multiple suppliers of power distribution in any geographical area and consumers have the option to get power supply from their preferred agency as opposed to the agency / company that builds the infrastructure. As Wheeling Charges, the electricity distribution companies have to compensate Fixed Charges which are determined. In the Electricity Act-2003, all these provisions including privatization have been made as Enabling Provision. As compared to other states of the country, the efficiency has improved due to corporatization after the division of the Electricity Board under the Electricity Act of 2003. In Gujarat, the efficiency and cost-based costs of power plants owned by the Power Generation Company (GSECL) are naturally passed on to the consumers of the state as a fixed cost in Gujarat. As part of bringing coal from far, the freight cost is more and as part of reducing long-term carbon emission and fossil fuel, gas-based power plants, Dhuwaran, Utran, Hazira, Pipavav have been installed.

But since the gas plants run by the state government do not get gas in the form of subsidies, the electricity per unit is expensive in getting gas from the market and operating it, so gas-based power plants are not operated except for emergency needs, but its fixed cost has to be given to the related power generation company and the burden of which is borne by the customers through Pass through FPPPA. According to the formula, we will explain about other topics related to energy in the next article.

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