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Consumer Education and Research Society (CERS), Ahmedabad, has
objected before the Union Ministry of Power to the method of evaluating
electricity companies. The new method has been adopted, according
to CERS, to help electricity companies to hide their inefficiencies
and increase Government intervention.
Before the implementation of the Electricity Act 2003, the performance
of all State Electricity Boards (SEBs) was evaluated on the basis
of technical parameters such as the plant availability factor (PAF),
plant load factor (PLF), transmission and distribution losses (T&D),
auxiliary consumption and specific fuel oil consumption, etc.
With the setting up of the State Electricity Regulatory Commissions
(SERCs), the method of evaluating the performance of electricity
companies changed gradually. The Union Ministry of Power entrusted
the task to the Investment Information Credit Rating Agency (ICRA)
and the Credit Rating Investment Services India Limited (CRISIL)
and included several non-technical parameters.
The present method of evaluation and rating of electricity companies,
introduced in 2004, consists of seven parameters : T & D losses
(21 points), financial risk (20), State Government (17), commercial
viability (16), SERCs (15), generation (6) and quality of performance
(5). It is evident from this that T&D losses, generation and
quality of performance cover only 32 points and the remaining 68
points for evaluation and rating are non-technical — and political.
It is intriguing why the performance/contribution of the State Government
and the SERC should be included while evaluating the performance
of electricity companies.
This method of rating electricity companies has affected their
performance and consumers are the worst sufferers.
CERS, in its appeal, has requested the Ministry to revert to the
earlier method of evaluation and ranking to ascertain the actual
performance of electricity companies. Many State Governments may
take solace by securing the top or the second or the third rank
but, in fact, the performance can be judged only by technical parameters.
The States with power shortage throughout the year cannot be ranked
among the top five. The system is unjustified and ridiculous and
not in the interests of electricity consumers in India in general
and the States in particular.
Date : 30/05/2007
Pritee Shah
Place: Ahmedabad
Editor
Insight-The
Consumer Magazine
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