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Planning Commission Report Private - Participation - in - Power - Distribution 2012

The sub-group has recommended 25 years of concession period, separate tariff for regulated and open-access consumers and a billing and payment mechanism besides a pre-determined system of incentives and penalties on the key performance indicators to ensure quality and reliability of supply by the concessionaire. According to the sub-group, neither privatisation (Delhi model) nor the Franchisee model would deliver the desired outcome. Instead, a well-formulated PPP model could be the way forward. Moreover, the model would be consistent with the Electricity Act, 2003, which requires distribution to be a licensed business under the regulatory oversight of the state electricity regulatory commission (SERC) for ensuring consumer protection. The sub-group has recommended 25 years of concession period in accordance with the provisions of the Electricity Act. The concession agreement may also provide for extension of the concession agreement for a further 10 years on the terms specified in the concession agreement and subject to the approval of the SERC. The concessionaire would be given the exclusive use of the distribution assets, but the ownership of the assets would remain with the government. The nature and extent of the use of distribution assets shall be regulated in accordance with the concession agreement and the applicable laws.

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62 views

Planning Commission Report Private - Participation - in - Power - Distribution 2012

The sub-group has recommended 25 years of concession period, separate tariff for regulated and open-access consumers and a billing and payment mechanism besides a pre-determined system of incentives and penalties on the key performance indicators to ensure quality and reliability of supply by the concessionaire. According to the sub-group, neither privatisation (Delhi model) nor the Franchisee model would deliver the desired outcome. Instead, a well-formulated PPP model could be the way forward. Moreover, the model would be consistent with the Electricity Act, 2003, which requires distribution to be a licensed business under the regulatory oversight of the state electricity regulatory commission (SERC) for ensuring consumer protection. The sub-group has recommended 25 years of concession period in accordance with the provisions of the Electricity Act. The concession agreement may also provide for extension of the concession agreement for a further 10 years on the terms specified in the concession agreement and subject to the approval of the SERC. The concessionaire would be given the exclusive use of the distribution assets, but the ownership of the assets would remain with the government. The nature and extent of the use of distribution assets shall be regulated in accordance with the concession agreement and the applicable laws.

Uploaded by

Raghvendra Upadhya
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Government of India

Report of the Task Force

Private Participation in Power Distribution

Published by

Secretariat for Infrastructure Planning Commission, Government of India Yojana Bhawan, Parliament Street New Delhi - 110001

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