Stakeholders - Legal Requirements for Distribution licensees

There have to be consultations among several stakeholders such as the licensees, the governments, consumers, generating companies, and regulatory bodies about all these matters. All stakeholders will have to meet certain primary requirements for these reforms to move full steam ahead. We spell them out briefly before ending this section.

The licensee should

1. Recover the cost of the organization and make reasonable profit; and
2. Make adequate investments for meeting the existing and projected demand.

The government should

1. See to it that the tariffs are reasonable and easily acceptable; and
2. Provide minimum subsidy.

The generating company should ensure

1. Mutually agreed PPA with cost plus recovery; and
2. Schedule management

The consumers should

1. Accept reasonable tariff; and
2. Demand improved quality of service with minimum impact on the current prices.

The regulatory staff has to

1. Encourage efficient use of resources through the licensee so that maximum benefit is made available to the consumer; and
2. Ensure long word financial viability of utility. The advisory committee should
3. Protect the interest of every category of consumer; and
4. Ensure quality of supply and standard of performance.

We now present a few case studies to help you appreciate the impact of the distribution reforms on the power sector.