CERS Objects To Method Of Rating Electricity Companies
- Posted by CERC India
- Posted in Electrical Appliances
Consumer Education and Research Society (CERS), Ahmedabad, has objected before the Union Ministry of Power to the method of evaluating electricity companies. The new method has been adopted, according to CERS, to help electricity companies to hide their inefficiencies and increase Government intervention.
Consumer Education and Research Society (CERS), Ahmedabad, has objected before the Union Ministry of Power to the method of evaluating electricity companies. The new method has been adopted, according to CERS, to help electricity companies to hide their inefficiencies and increase Government intervention.
Before the implementation of the Electricity Act 2003, the performance of all State Electricity Boards (SEBs) was evaluated on the basis of technical parameters such as the plant availability factor (PAF), plant load factor (PLF), transmission and distribution losses (T&D), auxiliary consumption and specific fuel oil consumption, etc.
With the setting up of the State Electricity Regulatory Commissions (SERCs), the method of evaluating the performance of electricity companies changed gradually. The Union Ministry of Power entrusted the task to the Investment Information Credit Rating Agency (ICRA) and the Credit Rating Investment Services India Limited (CRISIL) and included several non-technical parameters.
The present method of evaluation and rating of electricity companies, introduced in 2004, consists of seven parameters : T & D losses (21 points), financial risk (20), State Government (17), commercial viability (16), SERCs (15), generation (6) and quality of performance (5). It is evident from this that T&D losses, generation and quality of performance cover only 32 points and the remaining 68 points for evaluation and rating are non-technical — and political. It is intriguing why the performance/contribution of the State Government and the SERC should be included while evaluating the performance of electricity companies.
This method of rating electricity companies has affected their performance and consumers are the worst sufferers.
CERS, in its appeal, has requested the Ministry to revert to the earlier method of evaluation and ranking to ascertain the actual performance of electricity companies. Many State Governments may take solace by securing the top or the second or the third rank but, in fact, the performance can be judged only by technical parameters. The States with power shortage throughout the year cannot be ranked among the top five. The system is unjustified and ridiculous and not in the interests of electricity consumers in India in general and the States in particular.
Date : 30/05/2007 Pritee Shah
Place: Ahmedabad Editor Insight-The Consumer Magazine
Opinions, test results and research findings issued through this Press Release cannot be used in any form directly or indirectly for advertising, promotional or commercial purpose.
CONSUMER EDUCATION AND RESEARCH CENTRE
“Suraksha Sankoolâ€, Thaltej, Ahmedabad-Gandhinagar Highway,
Ahmedabad-380 054 (INDIA)
Phone : 079 – 7489945-46, Fax : 079 – 7489947,
E-mail: cerc@cercindia.org, cercindia@gmail.com, Web Site: http://www.cercindia.org
