CERS seeks change in rating method of electricity companies

By Staff
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Google Oneindia News

Ahmedabad, May 30 (UNI) Raising objection over the Union Ministry of Power's move to adopt new performance-evaluation method for electricity companies, city-based Consumer Education and Research Society (CERS) today appealed to revert to the earlier method of evaluation and ranking.

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 by 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 State Electricity Regulatory Commissions (SERCs) should be included while evaluating the performance of electricity companies, CERS said in a release here.

This method of rating electricity companies has affected their performance and consumers are the worst sufferers, it said.

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), T&D, auxiliary consumption and specific fuel oil consumption, it said.

With the adoption of new method, it has helped the electricity companies to hide their inefficiencies and increase government intervention, it charged.

Therefore, it has appealed to 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 second or third rank but the performance can actually 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, it added.

UNI

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