Power Sector SCENARIO in Rajasthan

1. Power Sector SCENARIO in Rajasthan Presented By: Deepak Saxena CUTS Centre for Consumer Action, Research & Training (CART)

2. Legislations Relating to Electricity

3. 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.

4. 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

5. 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.

6. 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 .

7. 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

8. 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

9. 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

10. 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.

11. Shyama Prasad Mukherjee Feeder Renovation Programmeobjectives • 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

12. Shyama Prasad Mukherjee Feeder Renovation Programmeessential 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.

13. Category wise and company wise number of consumers as on 31-03-2004

14. Per Capita Consumption of Electricity Year Consumption (kWh) 2006-07 600 2005-06 583 2004-05 540 2003-04 566 2002-03 517

15. 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% -------------------------------------------------------------------------- Total 17366 100%

16. Financial Losses

17. 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

18. 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

19. 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

20. Thank You