It has been proven since long that most state systems are by and large less efficient than those of corporates in the field of public delivery. State officials are doubtlessly masters in thinking and planning but very poor in doing things themselves. All this because of the straightjacket arrangement which nurtures bureaucratic red tape just too well. For long, essential public utilities like power and water have been kept with the state machinery to ensure the unit prices of the commodities do not shoot up. Private managers are likely to turn unscrupulous profiteers.
Lately, it became evident that due to excessive the bureaucratic red tape and lack of fear of losing jobs or salary, the state officials let go of anything that make systems to be perfectly functional. They are usually careless and lax which results in machinery degeneration or decay and damage that leads to rise in commodity price and poor upkeep of gadgets and gears. So lately, most Indian State Governments, out of disgust and helplessness, have been compelled to privatise state operations on many fronts, the last of them being power distribution. Power generation is fairly well-managed. But distribution machinery can turn ‘milch cow’. Fortunately, several enterprising corporate outfits have come up in the last decades to manage power distribution mainly because they know how to squeeze profits from difficult business only by efficient operation. Unethical government officials, particularly at lower levels, promote power pilferage, sometimes robbery to take home easily stolen money.
Fortunately around this time, efficient power distribution companies, popularly called ‘Discoms', had come up all over the world. Odisha, believed to be a power-surplus State, too was finding it difficult to manage power distribution and collection of bills from customers. And populist governments would find it difficult to hurt the public even if they stole power or did not clear power bills. Even big industrial houses too robbed the State by conniving with corrupt officials.
So, like anywhere else, the Odisha Government rolled out the red carpet for Discoms to rush to rescue and save precious money being stolen away. Odisha began the experiment in 1995 with foreign companies and has not looked back. Now, nearly the whole State has been privatised in the power distribution sector.
The conditions of contract between the Discom and the State depend upon mutual benefit-ensuring clauses. Distribution companies are normally responsible for the network of power lines, underground cables, substations, etcetera, that get electricity to your home or business.
Power generation, transmission and distribution are the three main processes involved in the sector. Discoms connect power producers to the households. They may buy power from generators and retail the same among consumers.
Under the Indian Constitution, power is a concurrent subject and the responsibility for distribution and supply of power to consumers rests with the States. Hence, Discoms used to be predominantly owned by the State Governments. Now that the state machinery has proven to be inefficient, Discoms have taken over. However, there are several issues and problems that crop up when Discoms are in charge. These private companies suffer Aggregate Technical and Commercial (AT&C) Losses. Technical loss is due to the erratic flow of power in transmission and distribution systems. Commercial loss is due to pilferage and theft of electricity and deficiencies in metering and similar other snags.
Presently, the Tata company in charge of distribution of power in Odisha has been found to be deceiving customers through pro rata billing which ensures that you don't get charged for a service you haven’t used. Customers are made to pay bill for 25-27 days instead of 30 days. Allegedly, the power company has been exploiting consumers with inflated bills and service-related discrepancies. The ordinary customer would never figure out that the company is cheating through its mysteriously complex billing which ensures that the customers don't get charged for a service they haven’t used at all. They are forced to pay a bill for 25-27 days instead of 30 days and consequently there are 13-14 bills rather than plain 12 times in a year. This results in violation of slab norms. So, a consumer may have to cough out cash for two free units when the Discom bills him for 48 free units instead of 50 units. In the second slot he would have to pay for 144 units instead of 150 units. This way, one has to make payments for extra 8 units amounting to Rs 45-50 extra.
The globally-respected Tatas for their integrity are not the same in all their operations. The Tata Power is evidently exploiting customers by violating guidelines of the Odisha Electricity Regulatory Commission. Clause 148 of OERC Distribution Conditions of Supply Code 2019 makes clear that customers would make a final payment on pro rata billing when seeking electricity power disconnection after a meter reading for a whole month.
Over 95 lakh customers are dependent on Tata Power out of which 50% are being misled routinely. By this little unseen trick, the company is earning at least Rs 12 crore illegally.
Politics of power is also on a huge scale. The government is expected to keep the Tatas on toes to keep the basic infrastructure in good shape as they handed over during the giveaway. The company now owns 51% of the joint venture with the State. There is a State monitoring inspectorate headed by the Principal Chief Engineer who is expected to be highly skilled and experienced. He is essentially the go between the State and the company. The Discom cannot avoid this State monitor. So, in case of infrastructure problems or issues, this character can take a critical call.
Recently, a summer whirlwind swept across Bhubaneswar and damaged most power supply infrastructures. For days on end, the Tatas had to bear the brunt of the enraged customers as power restoration took days which should have happened in hours or a single day at the most as the old pole-pole cabling system has been replaced by single strand overhead cables or underground connections.
The Energy Minister during a public encounter got confused mainly due to lack of knowledge and told that infrastructure was not in good shape. Further, he could not differentiate between power trip and power cut. He said the agony would not subside easily. An MP and national spokesperson of the ruling BJD too said things that point to the government failure. The Minister has meanwhile vanished from the scene and the MP has had his statement modified to not embarrass the government. It is also rumoured that the contract with the Discom has been purposefully left flawed to benefit a few unethical individuals.