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National DRUM Training Program

Power Sector Reforms and Achievements of Objectives
Example of Andhra Pradesh, India
N.V.S. Maguluri, CORE Intern ational Inc., Asia Office, India
1. INTRODUCTION

Power Sector Reforms were initiated in 1991 with initial focus on generation sector. Subsequently the thrust is shifted to distribution which is the real interface between power utilities and millions of consumers. The objectives of re forms are to provide reliable quality power at affordable rates to consumers of all categories and to improve the commercial viability of the power sector as a whole. MOP of GOI has launched a strategic scheme – APDRP (Accelerated Power Development & Reform Program) with the twin objectives of reducing (and finally eliminating) the commercial gap and simultaneously improving quality of service to consumers. A.P State Regulatory Commission has issued so far five consecutive annual retail tariff orders with no upward revision of tariffs. On the other hand there was downward revision for high end categories like industry and commerce in addition to marginal relief to other categories. Rebate in tariffs were provided for industries who consume more energy in a month compared to same month last year.

The general perception is that the revenues go down with
lowering of tariffs, but the revenues increased two fold from Rs.4881 Crores in 1999-2000 to Rs.9794 Crores in 2004- 2005. During the year 2002-03 the metered sales have gone up by 12.66%, whereas the Ex-bus energy was up by 2.5% compared to previous ye a r. This was largely due to mass regularisation (one time) of unauthorised domestic services and also improving quality of power supply. The following KPIs (Key Performance Indices) indicate the achievements:

It can clearly be seen that the following objectives enunciated in the National Power Policy are achieved:

2. POWER SUPPLY QUALITY


· All 11 KV feeders are provided with electronic meters with remote meter reading and load survey facility c ap able of storing last 35 / 60 days of data. · 11 or 33 KV feeders with industrial loads are converted into exclusive industrial express feeders by shifting other category loads to different feeders. Uninterrupted supply is being maintained and several captive plants are retired and industries have reverted back to grid supply. In 2004- 2005 the HT Sales have registered a 22% increase over 2003-2004.


· 120 number of substations in and around Hyderabad HUDA area measuring 1554 Sq. KM are covere d by SCADA. The data acquisition and controls like circuit bre a ker operation, on load tap changing and relay indications etc., are from one single master station. This system is in successful operation for the last two and a half years.


· TCMS (Trouble Cell Management system) HUDA area is integrated with SCADA.

· Round the clock Mobile Vans with GSM connectivity are employed in cities and major municipalities for faster attendance of consumer complaints.


· Consumer Care Centres (Outsourced) for receiving, attending, intimating & verifying of compliance are established in cities & major towns.


· EROs (Electricity Revenue Offices) & Cash Collection Centres are networked.


· Multiple payment options (e-seva , e-banking, credit card , drop boxes, etc.) are provided for consumers.


· KPIs (Key Performance Indices) are fixed and a PMRS (Performance Maintaining & Reporting System) is in place for rating the performance & guidance towards improvement.


3. CRISIL RATING


A.P stood first in CRISIL Rating for its performance in power sector with 57.03 points. The generating stations of APGenco (Vijaya wa d a , Rayalaseema and Kothagudem) are consistently winning

awards for highest productivity and low fuel consumption. The generation sector scored highest points 4.75 over all other states in CRISIL ratings. APERC gave specific (tariff orders) directives to be achieved by the utilities in regulating power purchase cost, reduction of loses, metering, improvement in metered sales, increase in specific revenue, reduction of meter exceptionals, etc and was conducting periodical reviews and provide guidence, to utilities towards achieving set targets. APERC has initiated action for implementing LTTP. APERC occupied top position with 12.38 points over all other state ERCs in the country for its most progressive outlook and actions. The objectives of reforms are achieved to a large extent through internal efficiency improvement and no upward revision of tariffs. Several action plans drawn-up & implemented in A.P towards improved power supply, accurate metering, prompt billing and efficient collections can perhaps be studied by other power utilities and adopted with suitable modification
to suit their specific requirements.

Energy and Development
 Archived Issues
Newsletter Jan2005
Integration of Rural Energy and Rural Development Programs
Rural Electrification Fund in Southern African Development Community (SADC) Countries
Power Sector Reforms and Achievements of Objectives - Example of Andhra Pradesh, India
The Role of Income Generation in Creating Market Access for Successful Rural Energy Supply Initiatives
Newsletter Oct 2004
Newsletter July 2004
Newsletter April 2004

 
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