Union Minister for Power and New & Renewable Energy, Shri R.K. Singh, engaged in a discussion with regulators representing Central, State, and Joint Electricity Regulatory Commissions to deliberate on the collaborative efforts needed to ensure a thriving and sustainable power sector.
Shri Singh commended the significant progress made in various areas since their last meeting in October 2022. Notably, he praised the timely issuance of tariff orders and true-up orders for distribution companies, transmission licensees, and generating utilities. This punctuality is vital for establishing cost-reflective tariffs, thereby enhancing the financial viability of the power sector. However, the Minister expressed concern over the growing backlog of cases in certain commissions and urged them to prioritize the resolution of long-pending matters.
The Minister emphasized the importance of ensuring that tariffs accurately reflect the entire cost of service provided by distribution companies (DISCOMs). He highlighted the government’s mandate for compulsory energy audits, which will identify power leakages and theft, aiding in reducing Aggregate Technical and Commercial (AT&C) losses. Shri Singh encouraged regulators to set realistic trajectories for reducing AT&C losses.
Shri R.K. Singh underscored the rollout of prepaid meters across the country as a means to enhance billing and collection efficiency for DISCOMs, leading to improved financial health and reduced working capital requirements.
Regarding subsidies, the Minister clarified that while it is the prerogative of state governments to provide subsidies to specific consumer categories, regulators must ensure that DISCOMs receive the subsidy amounts allocated by the state government. He reiterated that power is not free and must be paid for.
The Minister emphasized that the development of the nation relies on uninterrupted power supply, advocating for 24×7 electricity access. Shri Singh pointed out that the key difference between developed and developing/underdeveloped countries is the prevalence of load shedding and blackouts in the latter category. He highlighted the penalties outlined in the Electricity (Rights of Consumers) Rules for unwarranted load shedding and emphasized the need for their implementation.
The regulatory authorities pledged to follow the Minister’s recommendations to foster a conducive regulatory environment that supports the development of a financially sustainable and environmentally responsible power sector.
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