The power sector, especially its distribution part, has undergone certain amount of transformation from the legacy of the OSEB regime. The distribution companies appear to be financially ill, which is a major concern and this is clearly evident from the existing dilapidated infrastructure and inefficiencies which lies at different service level activities, say power sector observers.
Apart from this, the inherent practice of corruption by some of the distribution companies’ employees has also been creating an additional financial burden to consumers for paying more money illegally. This practice of corruption is making the distribution company employees less accountable to their responsibilities and they are least bothered to make the companies financially viable.
The observers point out that in order to get rid of this perennial problem of poor financial health, lack of investment in infrastructure, corruption at every level of service provided to consumers and carefree attitude of employees, the central distribution company CESU has deployed a noble concept of public-private partnership (PPP) in distribution. This would be in terms of distribution franchisee with an objective to infuse capital for infrastructure investment, voltage supply level improvement, consumer service-level improvement and complete eradication of malpractices and corruption from this sector.
The CESU has deployed this model of distribution franchisee for most number of its loss-making divisions as per the instruction of the OERC. In fact, it is a most welcome move for this kind of ailing sector as well as for the consumers.
The deployment of distribution franchisee is also within the framework of the Electricity Act 2003, in compliance with the Sunglu Committee and Chaturvedi Committee and also in conformity with the 13th Finance Commission recommendations.
Of late, it is seen that this initiative deployed by the CESU is getting opposition from a handful of people citing baseless reasons or no reasons at all. One can draw inference that these handful of people probably are not aware of the distribution sector or the franchisee arrangements.
Probably, they are the defaulters of electricity bills, having huge arrears. It may be the fact that some of them might be stealing power. These are a few facts which highlight the monetary benefits this handful of people get from the electricity sector. With the implementation of the franchisee system, these benefits would be no more available to them.
As implementation of franchisee is a tool to revive the distribution sector, the State Government needs to take a note of the situation and appropriate stringent action should be taken against this handful of people who are causing hindrances to the revival of the sector, the observers suggest.