Electricity Reforms
in
West Bengal
Dr. Keya Ghosh
CUTS-Calcutta Resource Centre
1
Outline
• An Overview of Electricity Sector in West Bengal
• Reforms and its Impact in the Power sector
• Consumer Protection and Public Participation
• Way Forward
2
An Overview of Electricity Sector in
West Bengal
Generation Units
i WBPDCL
ii DPL
State Agencies
West Bengal Power Development Corporation Ltd
Durgapur Project Ltd
iii CESE
iv DPSC
Private Agencies
Calcutta Electricity Supply Corporation
DPSC-Dishergarh Power Supply Corporation
v NTPC
vi DVC
Central Agencies
National thermal Power Corporation
Damodor Valley Corporation
3
Total Installed Capacity as on 31-01-2008: 7616 MW
Total Installed Capacity in 31-03-1996: 5481 MW
Installed Power Sector-wise (MW)
AS ON 31/01/1999
AS ON 31/01/2008
RES
2%
Hydro
3%
Hydro
14%
Thermal
95%
RES
1%
Thermal
4
85%
• By November 2008 , the installed capacity will
go up to such an extent that there will be no
power deficit in the state due to installation of
many more new generating units (dependable
source).
• Between 2001-02 and 2006-07 (up to November
2006), the number of consumers of electricity
has increased by more than 25.5 lakhs.
5
Systems Improvement: WBSEB has been improving various
transmission and distribution works for improvement of power
distribution network essentially in rural areas .
• Japan Bank for International Cooperation (JBIC) has assisted in
West Bengal Transmission System Project.
• The Security and Loss Prevention (S & LP wings have been
strengthened by creating S & L P offices at 17 circles in addition
to the Central S & LP wing at Head Quarter.
• WBREDA implemented a massive programme in the field of
Renewable Energy Sources like Solar Energy, Wind Energy,
Biomass, Mini Micro Hydal, Tidal Power etc and it is well
known in the country for its good work.
• More than 1000 families of the State are getting electricity
through non conventional energy source.
6
West Bengal Rural Energy Development Corporation Ltd
(WBREDCL)
 A unique feature of WBREDCL's functioning is that it is largely
decentralised to the district and sub-district levels, in its planning,
execution and monitoring operations.
 At the district level, the apex body is the District Rural Energy
Committee, whose members include the Sabhadipati (chairman of
the zilla panchayat) and the District Magistrate;
 At the block level, there is the Block Rural Energy Committee,
headed by the Block Sabhadipati and the Block Development
Officer (BDO). d
 At the most basic level of this structure is the Beneficiary
Committee, comprising a gram panchayat member, a local teacher
and a local youth representative.
 After the electrification and intensification work is done, the
Beneficiary Committee takes up the role of monitoring and
protecting the transformer, and hence it is known as 7 the
Transformer Protection Committee4
Major Milestones in West Bengal
Reform
March 1999 An independent West Bengal
May, 2001
Electricity Regulatory
Commission was constituted in
1999 which is fully operational
now.
Memorandum of Understanding
signed between Ministry of
Power (MoP), GoI and Govt. of
West Bengal.
8
Intended Reforms in the MoU
Intended
Reforms
1. The
Government of
West Bengal will
complete rural
electrification to
provide
electricity to all
villages by
March 2006
Interventions
made
Latest
Status
A separate organisation viz
91.1%
West Bengal Rural Energy
coverage :
Development Corporation
was formed to undertake
Out of a total
rural electrification and
of 37,910
supply of electricity at 400
volts and below to consumers villages,
in rural sector with active
34555 (as on
involvement of Panchayat
30-09-2007)
institutions.
villages have
been
electrified . 9
Intended
Reforms
Interventions
made
2. Energy audit •100% metering has
to take place at been completed for all
all levels.
11 kV feeders
•More than 100%
To identify and metering completed for
all consumers.
reduce T&D
losses to bring •Wide spread
them to the
application of
level of 20% by Information Technology
2005.
•Transmission and
Distribution networks
have been strengthened.
Latest Status
Energy audits are
being carried out
in transmission/
sub-transmission
networks.
T/D losses have
come down to 23%
as on 2006-07.
10
Intended
Reforms
Interventions
made
•Improvement in the
by WBSEB by
revenue collection
March 2003 and performance from
get positive
M&LV, Centralized
returns
Bulk and Dethereafter.
centralized Bulk
consumers.
•Spectacular
Improvement in
respect of export of
power as well.
3. Break-even
Latest Status
•WBSEB in the 51st year
of its journey and at the
threshold of restructuring
registered first ever
commercial profit of Rs.81
crore in 2005-06
•This was also for the first
time that ARR-ACS gap
registered a positive
balance.
•Hydel Wing recorded
highest level of generation
since inception.
11
Intended
Reforms
4. All thermal
stations of
WBSEB to be
brought under
WBPDCL
Interventions
made
Bandel and
Santaldih
thermal stations
already
transferred to
WBPDCL.
Remaining
stations
are either hydel
or gas-based.
Latest Status
100%
compliance.
12
Intended
Reforms
5. West Bengal
Government will
ensure timely
filing of tariff
petitions and
implement the
orders of WBERC
fully unless
stayed by court
orders.
Interventions
made
Latest
Status
•WBSEDCL,WBSETCL,
CESC, DPL, DPSCL,
•Till now
WBERC has
WBPDCL have filed
tariff petitions within issued 53
Tariff orders
the deadline
and has
stipulated by
WBERC.
devised its
own Tariff
process which
has no scope
for ‘public
hearing’.
13
Intended
Reforms
Interventions
made
6. West Bengal
will maintain
grid discipline,
comply with the
grid code and
ABT and carry
out the
directions of
RLDC.
State Load Dispatch
Center (SLDC)
established by the
Government of West
Bengal under sub
section (1) of Section
31 of the Electricity
Act 2003 on
24/04/2006
Latest Status
• All measures to
maintain grid
discipline are
being taken. No
known occurrence of
major grid
indiscipline in recent
times. (Source: ICRA
Report)
•ABT regulation has
been made and has
become operational
from 01-01-2008. 14
Intended
Reforms
7. Unbundling of
WBSEB ( as per
Electricity Act
2003)
Latest Status
West Bengal State Electricity Board
has spun off into two separate
companies West Bengal State
Electricity Distribution Company
Ltd and West Bengal State Electricity
Transmission Company Ltd with
effect from April,2007
15
Intended
Latest Status
Reforms
8. anti-theft
legislation to The most stringent Anti Theft Law in
the state came into effect on July 15,
be enacted
2003 and has again been amended by
Electricity (Amendment) Act, 2007.
16
Intended
Reforms
9. To promote
Open Access
and invite
more
competition
Latest Status
•WBREC has made the regulations
which lays down terms and conditions-schedule of charges , fees and format
for long term, short term and temporary
types of open access.
•The guidelines for phasing for open
access in distribution or/ sale of
electricity have also been laid down.
•Open access has not become
functional in the real sense due to
feasibility factors.
17
For Consumer Protection
Established Consumer Grievance Redressal
Forum Restructure in 2006
• The West Bengal Electricity Regulatory
Commission Regulations, 2006 has made provision
for redressal of grievances of consumers against
the licensees regarding supply of electricity and
related matters (such as excess billing, long security
deposit, incorrect disconnection , non receipt of meter).
18
Ombudsman & Redressal of
Grievances of Consumers
• The distribution licensees is mandated to establish an
organisational structure for redressal of grievances of consumers.
•Each licensee must have as many Grievance Redressal Officers
(GRO) as may be necessary at the rate of at least one such GRO at
each sub-district; district; regional ; zonal; head quarter levels of
each organisation.
• An aggrieved consumer is entitled to approach the Ombudsman (
placed at the WBERC Office) if he is aggrieved by any order of any
GRO at any of these levels or if he does not get any response from
GRO within a specified time.
19
So far office of Ombudsman has dealt with
the following consumer grievances up to
2005-06 since its inception in June 2004.
Grievance
against
No. of complaints
Received
WBSEB
CESC Ltd.
186
208
SHRELCOP
Total
Disposed
off
119
Pending
193
67
15
3
0
3
397
312
85
The Commission has reviewed the earlier lengthy procedure
for taking grievance of the consumers to Ombudsman and
replaced it with a simple procedure.
20
Public Hearing and Tariff Orders
• In West Bengal , ‘public hearing’ used to be an integral part of the
mechanism of passing a tariff order, but under the Electricity Act
2003, there is no specific provision of public hearing. So public
hearing is not taking place in West Bengal unlike other states. This has
been initiated by WBERC due to the lacuna of the 2003 Electricity
Act.
The procedure that is now being followed is:
 A Licensee should submit its tariff petition to the Commission at least
120 days prior to the date from which the tariff is proposed to be made
effective.
 The Tariff Petition, in question, is admitted by the Commission
 After admission of the tariff petition in question, the petitioner is
directed to publish a gist of the tariff petition, as approved by the 21
Commission, in newspapers.
• The insertions in the newspapers are meant to call upon all
interested parties and members of the public to file
objections or make comments on the petition.
• Objections / comments to / on the tariff petition, in question,
are received by the Commission up to a stipulated period of
30 days from the date of publication of the gist of the tariff
petition.
• The Commission examines these comments and comes out
with a Tariff Chapter for each petitioner. The main
points/decisions (Gist Tariff) of the Tariff Chapter are
published in the newspapers. Anybody interested can seek
to go through the detailed Tariff chapter which are kept in
22
the WBERC office or from the website of the commission.
Phase I
U/S 22(1) ERC Act 98
2000-01, 2001-02
WBSEB
Phase II
u/s 64(3) read with 62 of the
Electricity Act 2003
Phase III
u/s 64(3) (a) read
with 62(1) and
Sec 62(3)
Electricity Act
2003
2002-03, 2003-04, 2004-05
2005-06, 2006-07,
2007-08
For the
Objector who
had prayed for
and were
allowed
hearing
Objectors who
had filled
written
Objections
For the
Objector who
had prayed for
and were
allowed hearing
Objectors who
had filled
written
Objections
22
94
42
155
objection against
the tariff petition
40
WBSEDCL
20
WBSETCL
2
CESC
38
52
13
37
24
DPSC
5
3
6
9
4
DPL
11
7
4
5
3
SHRELCO
P
9
4
8
7
1
WBPDCL
6
2
11
7
3
23
Way Forward
• Governments are moving ahead fast with reforms.
• This reform offer the private sector a large role. And it is feared
that if the power sector is left to the experts, planners and
decision-makers located in capital cities, the interest of common
man might be left out.
• Public control and public participation in this sector therefore
is of great importance .
• But this can happen only when the capacities of the public are
built and enhanced so that they can ensure complete
transparency (T) direct accountability (A) and meaningful
participation. (P). TAP is the key to improver the health of this
sector.
• Here lies the relevance and importance of this project which
aims to build capacities of citizen groups.
24
Bibliography
•
•
•
•
•
•
•
•
Economic Review 2006-07 GoWB
ICRA Report 2003
WBERC Financial Report 2005-06
www.wberc.net
http://powermin.nic.in
www.cea.nic.in
www.wbsedcl.in
www.wbsetcl.in
25
THANK YOU
26