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 Governed the relations between the consumer and the licensees
Electricity Act
1948 Electricity Governed the constitution of the Central Electricity Authority, State
(Supply) Act 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 To regulate the supply, transmission, generation, and use of electricity.
Electricity
Rules,
1998 Electricity For the establishment of a Central Electricity Regulatory Commission and
Regulatory State Electricity Regulatory Commissions,
Commission Act

2003 Electricity Act To consolidate the laws relating to generation, transmission, distribution,
2003 trading and use of electricity
2004- National It aims at laying guidelines for accelerated development of the power sector.
05 Electricity
Policy
2007 Electricity Specifying Anti-theft measures to reduce the T&D Losses. Putting the theft of
Amendment Act 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 31-03-2004
Jaipur Ajmer Jodhpur
SN Category Total
Discom Discom Discom
1 Domestic 1546844 1532226 1347276 426346
2 Commercial 293897 234860 201321 730078
3 Industrial 33998 146606
56337 56271
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)

2006-07 600
2005-06 583
2004-05 540
2003-04 566
2002-03 517
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%
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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 432.96 52.91 524.80 615.02 339.52 434.09

Nigam

Ajmer Vidyut Vitran 427.85 535.74 673.13 716.44 617.93 741.76

Nigam

Jodhpur Vidyut Vitran 430.30 524.18 535.47 682.52 671.24 564.67

Nigam
 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