Consumer Service Rating of DISCOMs for FY2022 launched by Minister R K Singh

NEW DELHI- The Hon'ble Minister of Power and New & Renewable Energy, Shri R K Singh, launched several reports of FY2022 during the Review Planning & Monitoring (RPM) meeting in New Delhi. These initiatives include the 11th Annual Integrated Rating and Ranking of Power Distribution Utilities, which evaluates the performance of power distribution companies based on various parameters.

The Consumer Service Rating of DISCOMs for FY2022 was also launched, which assesses the quality of services provided by power distribution companies to their consumers.

Additionally, the State Energy Efficiency Index (SEEI) of FY2022 was also launched, which assesses and ranks the energy efficiency initiatives and outcomes of states and union territories in India. These initiatives are aimed at promoting transparency, accountability, and efficiency in the power sector, and improving the overall quality of services provided to consumers.

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Shri R. K. Singh emphasized the importance of a viable and modern Power Sector in the overall economic growth of the country. He stressed that 24 x 7 quality, reliable and affordable power supply to all the electricity consumers in the country is necessary for India to become a developed nation.  It was highlighted that most of the DISCOMs have started implementing the reform measures prescribed by Ministry of Power under its various initiatives like the Revamped Distribution Sector Scheme (RDSS), Additional Prudential Norms and Late Payment Surcharge (LPS) Rules 2022. 

It was informed that this year large number of Electricity Regulatory Commissions have issued the tariff orders well in time and have also implemented the Fuel and Power Purchase Cost Adjustment (FPPCA). It was stressed that tariff should be cost reflective and practical loss reduction trajectories should be adopted by Regulatory commissions for DISCOMs to be viable. He mentioned that the DISCOMs as well as GENCOs have been benefitted from the Late Payment Surcharge Rules 2022, notified by the Ministry in June 2022. The Minister also emphasised the importance of correct subsidy accounting. He reiterated that Smart prepaid metering is the only solution to overcome the issues of delayed billing and inadequate payments.

Shri R. K. Singh emphasised the importance of a viable and modern Power Sector in the overall economic growth of the country. He stressed that 24 x 7 quality, reliable and affordable power supply to all the electricity consumers in the country is necessary for India to become a developed nation.  It was highlighted that most of the DISCOMs have started implementing the reform measures prescribed by Ministry of Power under its various initiatives like the Revamped Distribution Sector Scheme (RDSS), Additional Prudential Norms and Late Payment Surcharge (LPS) Rules 2022.

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It was informed that this year large number of Electricity Regulatory Commissions have issued the tariff orders well in time and have also implemented the Fuel and Power Purchase Cost Adjustment (FPPCA). It was stressed that tariff should be cost-reflective and practical loss reduction trajectories should be adopted by Regulatory commissions for DISCOMs to be viable. He mentioned that the DISCOMs as well as GENCOs have benefitted from the Late Payment Surcharge Rules 2022, notified by the Ministry in June 2022. The Minister also emphasized the importance of correct subsidy accounting.

He reiterated that Smart prepaid metering is the only solution to overcome the issues of delayed billing and inadequate payments.

The status of progress in the States under the RDSS was reviewed. The scheme aims at enhancing operational efficiency and to ensure financial viability of the distribution sector. The Minister also reviewed performance of DISCOMs with respect to Pre-Qualification Criteria under RDSS and other key elements including subsidy and energy accounting etc.. The states have been advised to expedite the implementation of scheme. The states have been further advised to ensure that no penalty be levied on any consumer for higher load discovered after installation of prepaid smart meter and billing may be done on an actual load basis along with recovery of past arrears (if any) in phased manner.

The Minister stressed on the need to ensure Resource adequacy in terms of availability of Generation capacity to meet the increasing demand for electricity. He also advised to take up planned maintenance during lean period of demand. He stated that investments in the electricity generation was necessary to meet the increasing demand for electricity in the country. He reiterated the importance of viability in power sector to attract investment in the sector.

The collective effort from all the stakeholders including state/central government, utilities and industry will ensure seamless transition towards an economically viable and environmentally sustainable Power Sector in the country.

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