Its All About Power Sector

I was recently going through a report and found these excerpts very informative and thought of sharing them. I strongly believe that a broader view and analysis on the guidelines mentioned below will lead to strengthening of power sector operational performance and give a better place for investments into the sector which in the recent times deterred. You may have your different view on any of the below guidelines and you may comment the same below the article.

1. Strengthening of institutions at the National/ Regional/State level such as National Load Despatch Centre/Regional Load Despatch Centres/State Load Despatch Centres is vital to the implementation of open access.
2. To give a clear timeline for States to expedite reassignment of the Power Purchase Agreements to Distribution Companies (DISCOMs) and for winding up the single buyer model as early as possible enabling provision may be made in this regard in the National Electricity Policy.
3. State Electricity Regulatory Commissions (SERCs) should provide long term trajectory for Renewable Purchase Obligation (RPO).
4. The Principles & guidelines evolved through consensus by the Forum of Regulators (FOR) for the RPO of Obligated entities and Renewable Electricity Certificate(REC) mechanism should be followed up for timely adoption by corresponding Regulations of SERCs in keeping with Government Policies.
5. The Consumer Grievance Redressal Forum (CGRF) should be a multi-member setup with members from all stakeholders. FOR to play an important role in ensuring consonance of guidelines/regulations pertaining to CGRF & Ombudsman in respective States and UT's.
6. Consumer Advocacy Cells may be instituted by all the Commissions to provide the required legal advice, support, and assistance to Complainants for representing their case before the Ombudsman.
7. Power procurement and allocation of power to be done in line with the tariff policy and the guidelines/ Standard Bid documents (SBD) issued by Govt, of India under the Electricity Act, by the State Government.
8. Alternative methods of calculating cross subsidy surcharge to be worked out to ensure that neither open access is throttled nor does the host DISCOM unduly suffer.
9. SERCs should impose reasonable trading margin for the intra-state sale irrespective of the final destination of the electricity. SERCs should incentivize the intra-state trading in line with Act and Policy.
10. The concerned SERC should ensure automatic pass through for any increase in power purchase cost arising out of rise in cost of fuel
11. A substantial part, say about 80-85% of the requirement needed to be sourced by DISCOMs through long/ medium term contracts so that the infrastructure is developed accordingly.
12. The provision under section 11 or 108 of Electricity Act, 2003 should not be misused to deal with shortage of power in the State as this section was meant to be invoked in extra ordinary circumstances like security of the State, public order or a natural calamity. This position may be clarified in the National Electrical Policy
13. For all 1 MW and above consumers seeking open access, Standby charges should apply only if the distribution licensees continue to have the universal service obligation for energy supply. In case the distribution companies do not have the universal service obligation, stand by charges may be decided by mutual agreement between the open access consumers and the distribution companies.
14. Definition of minimum area of supply may be modified and it may be left to the discretion of the SERCs to decide the area, however, with due consideration to the fact that the grant of second/subsequent license does not lead to "cherry picking".
15. At the state level, DISCOMs also need to create Distribution Control Centres (DCCs) and empower them so that open access at the distribution level becomes a reality.
16. The institution of Chief Electrical Inspectorate to Govt, of India (CEIG)/State Government is strengthened so that quick and timely approvals are given. Central Electricity Authority(CEA) should work out a scheme of delegation of authority of mandatory inspections, including self-certifications, which would be in consonance with liberalization of bureaucratic control without compromising system safety and suggest possible steps for strengthening of Chief Electrical Inspector institutions which may be adopted by the State Governments.
17. Suitable incentives to those states who have adopted Time Of Day (TOD) tariff. TOD for Low Tension industries and Domestic consumers should be operationalized in phases
18. Pre - paid meters to be promoted to high value consumers and to those categories of consumers who are chronic defaulters to avoid piling up of arrears.
19. 100% Spot billing, Spot collection, Semi / fully automated meter reading and Standardization of metering protocols shall be done for extensive usage of AMR.
20. The State Governments should not only clear all the outstanding dues to the Utilities, but ensure payment of subsidies as per section 65 of Electricity Act, 2003 in future. FOR to evolve principles & methodologies in this regard through consensus and further follow up the progress.
21. As the Act provides for transmission, distribution and trading activities by the State Governments under section 14 of the Act, in the interest of promoting competition and fair play; Trading by state entities should be undertaken only after meeting the power demands of its own consumers.
22. RPOs should be distributed among the states in line with the targets set under the National Action Plan on Climate Change to be done through amendment in Electricity Act 2003 and/ or Tariff Policy.
23. Long term procurement of power by the distribution licensee to be done through competitive bidding process (CBP) and Power Purchase Agreements (PPA). To start with, the provisions in the Tariff Policy may be amended suitably for phase-wise introduction of competition for the different sources of renewable energy. Renewable Power procuring state will have the following procurement options:-
    1. Long term procurement through competitive bidding.
    2. Short term procurement through Purchase of REC or at preferential tariffs.
    Source: Cerebral Business Research Pvt. Ltd.