Discoms fail to live up to power sector reforms

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The power distribution companies (Discoms) in the State have failed to bring down the T&D (transmission and distribution) losses, which are still to the high extent of 35 per cent.

Instead, the Discoms appear to be hiding their deficiencies in providing smooth power supply to the consumers on the plea of weak infrastructure.lack of efforts and investments in the strengthening of infrastructure and inability to reduce the T&D losses on the part of the Discoms has seriously undermined the State’s much-touted power sector reforms that started way back in 1999.

To revive the four discoms Cesu, Wesco, Nesco and Southco and make good their T&D losses, the State Government provided them about Rs 500 crore from the World Bank in the past.But the Discoms were neither able to reduce their losses by utilising the funds nor have returned the full amount to the Government so far.Even, three Discoms Wesco, Nesco and Southco collectively owe the State-run Gridco around Rs 2,800 crore at present towards power purchase despite the fact they have been collecting money regularly from the consumers towards power tariff, Government sources said.

Notabgly, the Reliance Energy, which acquired 51 per cent of the stakes in the Wesco, Nesco and Southco for about Rs 117 crore, has not invested a single penny for strengthening of the power sector infrastructure.Similarly, the US- based AES fled the State within a short period after taking over management control of the Cesu for Rs 42 crore without investing a rupee in infrastructure development.

The State is now experiencing frequent power cuts and low voltage problem in the summer. According to Energy Principal Secretary PK Jena, while the State requires between 3,200 and 3,800 MW of power daily, the Government is ready to provide 4,200 MW with hydropower contributing the lion’s share.There is no reason why there would be any disruption in power supply during summer, Jena said. 

Daily Pioneer
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