Role of StakeHolders in Distribution Reform

These challenges could be met only by comprehensive reforms in the distribution sector. Earlier, you have studied about the roles of the Central and State Governments set forth in the Electricity Act, 2003, the National Electricity Policy and the National Tariff Policy. You have studied that the major features of the distribution reforms ushered in through these Acts and Policies are:

1. setting up of CERC and SERCs for rationalization of tariff;
2. corporatisation of SEBs;
3. 100% feeder metering;
4. 100 percent consumer metering;
5. Energy accounting and auditing at all levels to promote accountability and decrease T & D losses;
6. Securitization of outstanding dues of CPSUs; and
7. Government support to SEBs/Utilities.

Therefore, these steps have not been enough to transform the State Electricity Boards within commercially viable industrial ventures. The procedure of reforms in the power sector has yet to attain the desired results.  An initiative on tariff rationalization and removal of subsidies has resulted in tariff increases without any improvement in reliability, and quality availability of power supply. This, in turn has led to increased consumer resistance. Apart from this, investments, particularly from the private sector, could not be sustained in the sector for a variety of purpose. The situation calls for concerted action through all stakeholders on problems affecting electricity distribution, particularly, those concerning the customer-utility interface.