By Golak Bihari Sahu, PRO , CESU, Bhubaneswar ,Orissa
About electricity business :
• It is the infrastructure
• System involves in electricity business. Generation , transmission and distribution .
• The Installation cost of 1MW generation is about 5 crore . Further 5 crore each in transmission and distribution sector.
• During independence , installed capacity was 1362 MW in the country , but now it is about 1.57 lakh MW .
• Orissa has about 4081 MW installed capacity ( only hydro 2085 MW)
Scope in Electricity business
• Industrial scenario is increasing
• Various human use electrical appliances have high growth .
• The term electricity as luxury has been shifted to electricity as essential.
• The cost of electricity as fuel is less costly than any other form of fuel
• Major production of electricity is by Govt. agency.
• Power business is the gold mine now.
• Central and state government is taking steps to electrify all the villages by 2012. It is the election agenda.. RGGVY plans to electrify 1.25 lakh villages and more than 2.5 crore house hold . Other state plans like BGJY , BRGF , GGY in orissa plans to electrify all the villages and pada villages .
• During 11th plan extra 78000 MW electricity plant will be installed in the country & 13 MOU signed by Govt. for power plant in the state .
• Huge Investmentt by private players
• Central PSU are in charge of village electrification
• Employment opportunities for both the technical and non-technical category of people
Abut the organization (CESU)
• It is one electricity distribution utility . With the dawn of reform and restructuring in power sector , CESCO was established in the year 1997 and engaged in power distribution business. Renamed as CESU wef Sept/2006 in exercise of CESU Scheme 2006.
• Operating in 9 revenue districts in Orissa. Provides electricity to near about 1 crore population through 11.34 lakh consumers ( as on 01.04.2010).
• About 40,335 km of distribution lines and 23145 distribution transformers sprerading over covering 29000 sq.km area ( 1/3rd of the state ).
• 10000 dedicated work force for electricity services
• Average monthly input of 520 MU and monthly sale to consumers 315 MU which incurs billing loss of 40.5 % (Previously nit was 49% in the year 201-02) . Out of Monthly billing of 95 crore , we are able to collect monthly 92 crore .
• Present AT& C loss is 41.2% . ( previously it was 63.6% in the year 2001-02)
• 80% of the filed employees are uneducated . The pre-reform manner is still continuing . Most of the employees at the verge of retirement can not accept to change environment.
Major threats in Electricity Distribution business
• High T&D loss
• Lack of modern technology
• Lack of HVDS system
• Lack of 100% feeder/DT/Consumer metering
• Rampant Power theft ( Every year production of electricity amounting 1 lakh crore and theft/misuse / technical loss of 35000 crore in the country . Daily misuse/loss/theft of 7 crore rupees power in the state . Yearly amount is more than 2200 crore . 1200 crore loss is due to power theft
• Use of non-standard / low quality material ( conductor, substations , poles , equipment etc.)
• Treating the organization as a training Center – after getting appointment , officers / employees are gathering experience here and leaving the job)
• Lack of sufficient energy police stations and special courts.
Steps to be taken for success of business
• Technical measures for up-gradation /installation of lines etc
• Commercial measures : proper / timely supervision of commercial activities
• Govt. initiatives : proper tariff by regulators , technical guidelines formulations , acts to be amended for curbing theft , opening of sufficient courts and police stations
• Legal measures : courts and police station functioning , provision of staff , enacting rules and regulation
• DISTCO initiative to energy audit, HVDS , use of AB Cable , metering and pillar box metering , improvement of power factor and SBM
• Employees education
• Consumers education through proper PR planning
Preparedness for better customers services :
• Electricity services shifted from producers driven to consumers driven
• Consumers protection Act , 1986 protects customers
• Enactment of Electricity Act, 2003 makes transparency of information
• Regulatory commission has fixed standards of performances for DISTCO.
• Timely disposal of customers problem .
• Penal provision for non-compliances of standards .
Major achievement in electricity business
• With the implementation reform consumers service level developed
• Rationalisation of tariff : since 2001, there is no tariff hike in the state. New agro-based tariff came in 2009. Slight hike in 2010.
• Voltage standard developed
• Through consumer education , consumers are now more powerful and became right oriented
• T & D Loss in the country reduced to 31% and AT & T loss to 34.54 % . ( T&D loss in the state is 38.6% and AT&C loss is 42.7% )
• Injecting new generation in the Ddistribution sector, customers service is developing . Electricity Call center .