Reform power sector with minimum damage to system
Posted On :09-Sep-2009 00:00:00 News Source: Vinod Kumar Gupta
Reform power sector with minimum damage to system-Padamjit Singh

Patiala: "Reform process in the power sector should be carried out as per ruling of Appellate Tribunal of Electricity with minimum damage to the system” said Padamjit Singh Chairman All India Power Engineers Federation.

The Appellate Tribunal has given a ruling that it is not mandatory to unbundle the state electricity board as per provisions of Electricity Act 2003 and it is possible to retain generation, transmission and distribution, under one composite company. For the purpose of trading only a separate company would be required

In an exclusive interview Padamjit Singh said reform process in Punjab State Electricity Board should also be carried out after taking in to account the judgment of Appellate Tribunal of Electricity..

Talking about PSEB Padamjit said that despite heavy odds due to faulty policies of successive Governments PSEB is still best performing board in the country. The per capita consumption of 1142 units is highest in the country and transmission losses are 19.9 percent against all India average of 28 percent. The thermal plants of the state are running at Plant load factor of 87.89 percent while all India average is 77.6 percent.

The purpose of reforms should be to improve the efficiency in the system and not to un bundle the boards in to different companies. The formation of different companies instead of keeping generation transmission and distribution under one control does not lead to improvement in system and competition.

Padamjit further said that it is not at all compulsory for a State Govt. to unbundle its vertically integrated state electricity board as per provisions of Electricity Act 2003 Unless a State Government finds signs of private capital being attracted towards the electricity sector or unless the conditions were conducive to hand over the business conducted by the Boards into the hands of Government companies it would not be wise to unbundle the State Electricity Boards. The sole aim of providing the scheme of unbundling the State Electricity Boards was to replace inefficiency by efficiency.

Discussing the financial position of the PSEB he said that board has already utilized more than Rs. 1200 Crore of employees’ provident fund for its capital works. Total financial burden on the state Govt. due to restructuring of PSEB would be huge keeping in view the present annual subsidy bill of over Rs. 3100 Crore and accumulated losses of over Rs. 8546 crore. The balance sheet of board must be clean otherwise restructuring would be meaningless and futile for new companies.

Further all the stake holders should be taken in to confidence before starting the process otherwise desired results would not be coming and consumers will be suffering further.