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Imperatives of privatisation of power distribution
Written By murali772 - 28 May, 2008
Bangalore Infrastructure BESCOM Power Privatization Citizen Reports
The World Customers' Day was observed by BESCOM in its usual ritualistic style on Saturday, the 15th March by holding a workshop on 'Customer Care', in association with Public Affairs Centre (PAC), Swabhimana, Consumer Advocacy, and Karnataka Electricity Regulatory Commission (KERC). Of the audience of a 100 odd people, only some 30 were members of Civil Society groups (RWA's, etc), the rest comprising mostly of BESCOM officials. Seeing this, the chief guest, Dr Samuel Paul, Chairman, PAC, remarked that the poor turn out was perhaps an indication of the high level of satisfaction with BESCOM services.
I wish to submit here that such statements by people of the stature of Dr Paul tend to convey a totally wrong picture compared to the actual position obtaining on the ground. Granted that the services may have improved compared to what it was a few years ago. But, Bangalore today produces goods and provides services of the highest quality to its clientele right across the globe. For such a city, the interruption-ridden service of BESCOM is nowhere near good enough. And, it is not as if better level of service is not possible in the Indian context, or anything like that. Cities such as Mumbai, Ahmedabad, Surat, Kolkata, Greater Noida, enjoy far better quality of power supply. This is evidenced by the fact that, while Bangalore is currently a Rs 1500 cr market for gensets, inverters, converters, batteries, emergency lamps, candles, match-sticks, and what have you, these products have a marginal presence, if at all, in the cities listed. And, now, New Delhi is all set to join them. The reason for the same is also not too far to seek - while Bangalore is served by the government-owned BESCOM, all the other cities are served by companies in the private sector. Need one elaborate further?
The apologists would immediately go on to talk about BESCOM's social responsibility of having to cater to the needs of the rural sector. But, then is it doing any better than its counterparts in the other states in this aspect? The records do not show anything like that, either. In effect, whereas in Karnataka, the people in both the cities as well as in the rural areas have to suffer the incapacity of the government agency, people in cities like Mumbai get the benefit of quality power supplied by private sector companies even as their rural brethren may not be in such a privileged position. Perhaps that is the idea of social justice of Karnataka politicos! But, in today's competitive world, can a city afford this?
Ironically, however, in Karnataka itself, there has existed from long an excellent model for sustainable rural power distribution in the form of the Hukeri Co-op Society in Belgaum district. The Society buys power in bulk at high voltage from the Karnataka Power Transmission Corporation (KPTCL), arranges its distribution, collects money, and remits it to KPTCL on time, thus ensuring quality power supply from them, and, in the process, keeping everyone including the many farmer members totally happy. Where this model may not be feasible, particularly in geographically isolated communities, stand alone solar systems are a far more sensible option, than running kilometers of transmission lines. Very clearly, therefore, the rural sector load has been pooled in by BESCOM only to provide a convenient scapegoat to mask its poor planning and management.
Coming back to the workshop - now, if people do not turn up in sufficient numbers at such meetings, it is not because they are satisfied with the services, it is plainly because of the futility of complaining to a government agency. Those who can afford have made alternate arrangements, and those that can't are any way voiceless. One would have thought organizations like PAC, Swabhimana, Consumer Advocacy, and even the KERC would bother to speak up for the voiceless.
PS: The above is the text of a posting titled 'customer-care-less' made on 20th March, '08 on my blog http://karnataka-power-muddle.blogspot.com/. Since it brings out all aspects of the matter, I chose to retain it as it is.
Related reading: http://bangalore.praja.in/bangalore/blog/murali772/2008/05/22/precarious-supply-side-scenario
Muralidhar Rao
COMMENTS
When will we learn to accept the realities?
murali772 - 18 July, 2011 - 07:44
The supply is not up to the mark. Power exchange is semi-automatic. If the transformer is unable to take the load, we have to go for outages. Even posh areas have not been spared. If you look at some areas in East Bangalore, they have more power cuts because of system constraints. The transformers cannot take too much load. To replace one transformer of higher capacity, we need to spend at least Rs 3 to Rs 4 crore. We need to upgrade the system and for that we need finances.
Who said we have modern equipment? The transformers in some areas are rather old and need to be replaced. The government must modernise public services. We are struggling.
Only 5% of electric wires in the city are insulated. Funds is the constraint. We require Rs 1,500 crore to insulate wire of 2.5 lakh km in the city. I know there are no excuses when there is death involved. We plan to insulate wires that run over public spaces, schools, etc. This would cost us Rs 400 crore to Rs 500 crore.
Smart grid, a common feature in Europe and the US, is an intelligent network that monitors power consumption from the central control room. It would deliver electricity from suppliers to consumers using digital technology. The constraints in implementing this are manpower and investment.
The above are excerpts from an interview with Mr Manivannan, BESCOM, MD, published in the ToI (for the full text, click here).
What is discernible from the above very clearly is that there is a perennial funds shortage. Now, even if Mr Manivannan - the task master that he is - manages to reduce the T&D losses to a respectable level, BESCOM will still, at best, be able to carry on its day to day operations, leaving very little if at all for modernisation. Manivannan suggests here that "government must modernise public services". The question that arises is that when the government is already burdened with the provisionings for more essential goods and services, should it take on this burden also, particularly when the private sector can do a better job of it all - like in Mumbai, Ahmedabad, Surat, Greater NOIDA, Kolkata, etc.
murali772 - 5 September, 2011 - 08:48
Bescom managing director P Manivannan said: “We are not able to purchase hydel power because of the government order. We have no autonomy to choose the kind of power we purchase. Other Escoms, like Gescom and Hescom, are given hydel power which is cheaper as they are facing a financial problem. We have to purchase high-cost power.”
For the full report in the ToI, click here.
Essentially it means that if you manage your finances well, you will be penalised with a higher charge on your inputs. Why would any one bother to manage the finances well - except say a Mr Manivannan?
Well, as long as these entities remain with the government, such artificialities are inevitable, and the citizens will be forced to shoulder the extra burden. The answer plainly is privatisation.
Mis managment of Power Generation like road widening
Sanjeev - 6 September, 2011 - 07:03
As the RTPS Raichure has 8 generation stations and Bellary has also has bee commissioned. Fact is both together are generating 30% of the Installed capacity ( approximat ), here also the road widening dieses has spread. These plants are owned by KPTCL and not BESCOM or HESCOM
The reason for not operating full capacity is
1. Coal is not available,
2. Poor maintenance of Plants & Machineary
3. No accountability of the KPTCL for their poor operating.
Even their was case of Diesel mafia doing work at RTPS Raichure last year.
And theri may be other factors which we are not aware of poor generation of power.
As new plant / addition of power generating capacity may have more advantage for Private player ( can make more money ) instead of getting old plants of RTPS / BELLARy to get them in full capacity
T-stir hits power supply : who should be blamed
Sanjeev - 27 September, 2011 - 09:57
Agitations in Telangana region of Andhra Pradesh has affected supply of coal, leading to unscheduled load-shedding in the State
Minister for Energy Shobha Karandlaje said transportation of coal from Singareni in Andhra Pradesh and Nagpur was halted due to the agitations. The State is now short of 1,500 MW power everyday.
Three of the eight units in the Raichur Thermal Power Station, have been already shut down. Unscheduled load-shedding is being resorted to across the State to cope with the crisis. Karandlaje told reporters in Bangalore on Monday that a decision was yet to be taken on announcing scheduled load-shedding
http://www.deccanherald.com/content/193902/t-stir-hits-power-supply.html
We are also facing a shortage of 300 MW to 350 MW of power from the Central generating stations of NTPC – Simhadri and Ramagundam. Karnataka is being supplied only about 1000 MW everyday, as opposed to 1534 MW allocated to us from the Central share,” she said.
The State has been getting only less than 100 MW from wind energy, despite the 1,000 MW generating capacity, she said.
“We have decided to purchase 630 MW of power from Jindal, Lanco and other sources to tide over the present situation,” she added.
Why Center is allocated more then the decided share to other states where Congress has govt & Karnataka is neglected on this.
Now here is Power purchase at higher price which will be passed to consumers soon.
Energy department, which is adding another 230 MW from October 1, had also called tenders for purchase of 500 MW. However, as the rates were on the higher side – Rs 4.96 per unit, the department has decided to call fresh tenders
So following factors T - stir Factor, Central Factor, in-efficiency of KPTCL to maintain all units up & generating pwoer & corruption.
murali772 - 11 January, 2011 - 14:18
Interesting excerpts from a New Indian Express report (accessible here)
The KERC has asked the state government to pay the subsidy amount for free power starting January. The state government had filed a petition with the Commission stating that the Rs 3,428.36-crore subsidy to farmers was a “huge burden”. The petition had sought that the subsidy be treated as regulatory asset and be passed on to other consumers.
“MESCOM has been misusing the subsidy by presenting inflated figures. There is 500 million unit of exaggerated figure for irrigation pumpsets,” said Shridar Prabhu, energy sector advocate. “What is disheartening is that the regulatory commission has not even uttered a word on the matter.” He said the regulatory commission has the power to probe the matter, but did not do so.
There's no solution to the power problem as long as the management of subsidies remains a problem. At least, it can be isolated to the where it originates (ie in the rural areas), and handled differently. But, then it becomes difficult to camouflage thefts as losses (as MESCOM is allegedly doing), and so, the tamasha continues.
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