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ISSUES RELATING TO RE-ORGANIZATION OF S.E.B.s

ISSUES RELATING TO RE-ORGANIZATION OF S.E.B.s. Bhanu Bhushan. RE-ORGANIZATION OF S.E.B.s. The Electricity Act, 2003 envisages vertical unbundling of S.E.B.s : Generating Companies A State Transmission Utility (STU) Distribution companies / licensees. RE-ORGANIZATION OF S.E.B.s.

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ISSUES RELATING TO RE-ORGANIZATION OF S.E.B.s

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  1. ISSUES RELATING TO RE-ORGANIZATION OF S.E.B.s Bhanu Bhushan

  2. RE-ORGANIZATION OF S.E.B.s The Electricity Act, 2003 envisages vertical unbundling of S.E.B.s : • Generating Companies • A State Transmission Utility (STU) • Distribution companies / licensees

  3. RE-ORGANIZATION OF S.E.B.s • No stipulations regarding number of generating companies and distribution licensees. • Their ownership issue is left open. • They can be sub-divided and privatized. • STU to be a Government company, to keep away from trading, and to operate the SLDCs (till decided otherwise by the State Government).

  4. RE-ORGANIZATION OF S.E.B.s Necessary to specify which organization is responsible for : • Load forecasting, and planning for meeting the demand growth • Coordinated planning of generation and transmission within the State • Owning and operating the SLDCs (in the long run) • Coordinating (on behalf of their States) with all outside agencies, e.g. CEA, CPSUs, CERC, RPC, IPPs Logical choice: STU

  5. RE-ORGANIZATION OF S.E.B.s • The Act casts the coordination responsibility only for transmission on the STU. But STU has to take care of other coordination as well. • Coordination between the multiple organizations created in SEB unbundling • Coordinating with other intra-State organizations • Representing them collectively in CEA, CERC, RPC, CPSUs, IPPs

  6. RE-ORGANIZATION OF S.E.B.s Issue raised because of diversity and avoidable multiplicity of respondents in matters before CERC • 3 identical responses from Rajasthan • 2 responses from M.P. : MPPTC & MPPTC • HPGCL, Mahavitaran, SPPCC (Karnataka), • UPCL, GRIDCO - Transco, DTL - Discoms We should have one nodal organization representing each State

  7. RE-ORGANIZATION OF S.E.B.s The Act envisages multi-buyer model for each State : Discoms to buy power directly from suppliers, ultimately. The Act did not envisage formation of State Power Procurement / Coordination Centres and PTCs, since the intent was to avoid “single-buyer”. “Single-buyer” model should be reconciled to as a transitory step in SEB re-organization. (Example - Delhi)

  8. RE-ORGANIZATION OF S.E.B.s • M.P. Power Trading Company • Rajasthan Power Procurement Centre • GRIDCO / GUVNL • Karnataka SPPCC / APPCC are single-buyer organizations for their States and are not electricity traders. They could be clubbed with the STU. Gencos, Discoms should not be acting as the “single-buyer” for the State.

  9. RE-ORGANIZATION OF S.E.B.s • Close and continuous cooperation / interaction required between SLDC and STU • SLDCs need organizational backup • SCADA/EMS, inter-utility metering • Both have to be impartial and judicious, and therefore State Government - owned. • World-over, wherever vertical unbundling has taken place, load dispatch is clubbed with transmission.

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