Page 29 - Tcexpression2021 - Sept to Dec 2020

Government Policies and Regulations Current Challenges

Since independence, both Central and State Aggregate Technical & Commercial (AT&C) losses in
governments have supported electrical sector with Distribution are as high as 35%, which are much higher
various schemes and initiatives to improve the overall than those in any developed country. Increasing share
health of Discoms but with limited success. This has of renewable generations in the grid has impacted the
resulted in a resource drain on the Indian economy. traditional approach of Distribution system operation.

The Electricity Act-2003, National Electricity Policy-2005 The power generated from wind and solar plants is
and National Tariff Policy-2006 have vastly helped intermittent in nature and difficult to schedule firm
improve the Indian power sector. The key initiatives/ power. To take care of these variations, distribution
programs in Distribution sectors such as Accelerated utilities will tie-up with additional peaking generating
Power Development Reforms Program (APDRP)2002 stations with high variable cost.
and Restructured Accelerated Power Development
and Reforms Program (R-APDRP) 2008 have primarily The use of gas-based peaking generating stations for
focused on improving necessary infrastructure, and balancing purpose is uneconomical as it increases the
IT-enabled services of Discoms. power purchase cost of distribution licensees.

National Smart Grid Mission (NSGM) 2012, Deendayal The decentralised market structure provides individual
Upadhyaya Gram Jyoti Yojana (DDUGJY)2014, Pradhan distribution entities to be more responsive in
Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) 2017, complying with grid discipline rules of balancing their
Ujwal Discom Assurance Yojana) scheme – (UDAY) 2015 generation and demand. The regulation has mandated
are focused on meeting the goal of “Power to All”. All volume limits on over drawl and under-drawl of
the schemes aim to ensure availability of 24×7 power electricity.
at an affordable price and improve the financial health
and operational efficiency of Discom. Distribution utilities are severely affected due to
these grid discipline rules and pay a hefty penalty. In
In 2020, to revive the health of ailing Discoms a the coming decade, the need to modernise the grid
significant financial intervention by GOI, Rs 1,20,000 will help the utilities meet the challenge of handling
Cr would be infused through PFC and REC. The Draft projected energy needs while maintaining a robust and
Amendment Bill proposes Direct Benefit Transfer (DBT) resilient electricity delivery system.
for the economic viability of Discoms. Now, State Govt.
can directly pay to end consumer under
Direct Benefit Transfer and linking smart meters to TCE with its vast experience in
provide DBT to consumers. the power industry is all poised
to take up the challenges and
The government is continuously evolving various
policies and regulations to bring commercial viability provide solutions to Discoms to
for Discoms. As in Delhi and Orissa’s case, the Private improve the overall performance
players are encouraged through multiple models such in the areas such as Due diligence,
as Public Private Participation (PPP). AT&C loss minimisation studies,

In Maharashtra, Madhya Pradesh and Uttar Pradesh smart metering infrastructure,
input-based distribution franchisee models are digitisation, utility‑scale battery
being considered. In May 2020, GoI announced that energy storage system, renewable
the Centre would privatise the power distribution integration and IT‑enabled services
companies in Union Territories (UT). This will bring to the distribution utilities across the
private sector investment and result in improved
operational efficiency, better service to consumers and country.
financial health of Discoms in UTs.

Sept - Dec 2020 29