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REFORMSAND
RESTRUCTURING
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REFORMS AND RESTRUCTURING
POLICY PRODUCT CULTURESYSTEM STRUCTURE PROCESS
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WHY REFORMS AND RESTRUCTURING(PRE REFORM ERA)
T & D LOSSES VERY HIGH 30-40% (IT IS THEFT & DACOITY)
SHORTAGE OF POWER IN MOST OF THE REGION
WIDE INDISCIPLINE IN GRID OPERATION. FREQUENCY FLUCTUATESFROM 47.5 50.5 HTZ
WIDE VARIATION IN VOLTAGE
FREQUENT BLACK OUTS AND BROWN OUTS
SEBS WERE RUNNING IN LOSS- 2003-03 LOSS FIGURE AROUNDRS.33,000 CR.
STATE SYSTEM HAS NOT BEEN UPGRADED SPECIALLY DISTRIBUTIONNETWORK
SURPLUS MANPOWER BUT NOT OF GOOD QUALITY
POOR DEVELOPMENT OF RURAL INDIA
MORE THAT 1,55 ,000 VILLAGES ARE YET TO BE ELECTRIFIED
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WHY REFORMS AND RESTRUCTURING(PRE REFORM ERA)
EXCESSIVE LOCAL FALIURESAND FAULTS
INEFFICIENT USE OF ELECTRICITY BY THE END CONSUMER
NO ATTENTION TO PERFORMANCE STANDARDS
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NEED OF DISTRIBUTION REFORMS
LOW PRIORITY TO DISTRIBUTOR AS COMPARED TO
GENERATION AND TRANSMISSION
55% ENERGY BILLED
41%ENERGY REALISED
HIGH T&D LOSSES
HIGH SUBSIDY & CROSS SUBSIDY
(7450 CRORES IN 1991-92 & 43060 CRORES IN 2001-02)
LACK OF ACCOUNTABILITY IN DISTRIBUTION SECTOR
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SYSTEMS
AUTONOMY
REGULATORS
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STRUCTURE
GOVERNMENT
JOINT VENTURE
CORPORATISATION
LOCAL BODIES/PANCHAYATS/FRANCHISEES
PRIVATISATION
UNBUNDLING
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POLICYNATIONAL ELECTRICITY POLICY
DISTRIBUTION POLICY
SIX LEVEL INTERVENTION STRATEGY
DSM POLICY
DIRECT CENTRAL GOVT INVESTMENT
TARIFF POLICY
SIGNING OF MOU/MOA/TPA
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PROCESSES
100 % METERING
ENERGY ACCOUNTING AND AUDIT
SEGREGATION OF LOSSES
CREATING PROFIT CENTERS
HVDS
CAPACITORS INSTALLATIONS
SYSTEM AUGMENTATION
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PRODUCTS
ENHANCING CUSTOMER RELATIONSHIP
BIJLEE SUVIDHA KENDRA
DISTRIBUTION AUTOMATION
ERP
SCADA
PRICING
MIS
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CULTURE
ACCOUNTABILITY
PENALISATION
PROFESSIONALISM
INCENTIVES
CAPACITY BUILDING
NO WORK NO PAY
TRANSPARENCY
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GOAL OF REFORMSElectricity available to all households in next five
years.
Meet the demand fully.
Improve reliability and quality of power to
specified standards.
Raise the per capita availability of electricity to
1,000 units.
Ensure minimum life line consumption of 1 unit
per household per day by year 2012.
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REFORMS FROM THE EYES OF LEGISLATION
Introduced in Lok Sabha on 30th August,
2001.Referred to the Standing Committee on
Energy.
Standing Committee submitted its report on
19th December, 2002.
Passed by Lok Sabha on 9th April, 2003.
Passed by Rajya Sabha on 5th May, 2003.
Received the assent of the President on26.5.2003.
Published in the Gazette on 2.6.2003.
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REFORMS FROM THE EYES OF LEGISLATION
It extends to the whole of India except the State of Jammu
and Kashmir. The Central Government shall, from
time to time, prepare the National Electr ic i ty Pol icyand Tariff Polic y, in consultation with the State
Governments and the Authority for development of
the power system based on optimal utilisation of
resources such as coal, natural gas, nuclearsubstances or materials, hydro and renewable
sources of energy.3(1)
The Authority shall prepare a National Electr ici ty Planin
accordance with the National Electricity Policy and notify
such plan once in five years.3(4)
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REFORMS FROM THE EYES OF LEGISLATION
The Central Government shall, after consultation with the
State Governments, prepare and notify a national policy,
permitting stand alone systems(including those based onrenewable sources of energy and non-conventional sources
of energy ) for rural areas.(4)
The Central Government shall also formulate a national
policy, in consultation with the State Governments and the
State Commissions, for rur al electr i f icationand for bulk
purchase of power and management of local distribution in
rural areas through Panchayat Institutions, users
associations, co-operative societies, non-Governmentalorganisations or franchisees.(5)
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REFORMS FROM THE EYES OF LEGISLATION
Any generating company may establish, operate and
maintain a generating station without obta in ing a l icence
under th is A ct i f i t compl ies w i th the technica l standards
relat ing to con nect ivi ty w ith the gr id referred to in clause (b)
of Section 73.(7)
Notwithstanding anything contained in section 7, anygenerating company intending to set-up a hydro-generat ing
stat ionshall prepare and submit to the Authority for its
concurrence, a scheme estimated to involve a capital
expenditure exceeding such sum, as may be fixed by the
Central Government, from time to time, by notification.8(1)
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REFORMS FROM THE EYES OF LEGISLATION
CAPTIVE GENERATION
Notwithstanding anything contained in this
Act, a person may construct, maintain or
operate a captive generating plant and
dedicated transmission lines:
Provided that the supply of electricity from
the captive generating plant through the
grid shall be regulated in the same manner
as the generating station of a generatingcompany.9(1)
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REFORMS FROM THE EYES OF LEGISLATION
DUTIES OF DISTRIBUTION LICENSEE AND OPEN ACCESS
The State Commission shall in t roduce open access in suc h
phases and su bject to such cond i t ions, (including the crosssubsidies, and other operational constraints) as may be specifiedwithin one year of the appointed date by it and in specifying theextent of open access in successive phases and in determiningthe charges for wheeling, it shall have due regard to all relevantfactors including such cross subsidies, and other operational
constraints:
Provided that such open access may be allowed before the crosssubsidies are eliminated on payment of a surcharge in addition tothe charges for wheeling as may be determined by the State
Commission :
REFORMS FROM THE EYES OF LEGISLATION
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REFORMS FROM THE EYES OF LEGISLATION
LICENSING
No person shall
(a) transmit electricity; or(b) distribute electricity; or
(c) undertake trading in electricity,
unless he is authorized to do so by a license issued under
section 14, or is exempt under section 13.9.(12)
The Appropriate Commission may, on the recommendations, of
the Appropriate Government, in accordance with the national
policy formulated under section 5 and in public interest, direct, by
notification that subject to such conditions and restrictions, if any,
and for such period or periods, as may be specified in thenotification, the provisions of section 12 shall not apply to any
local authority, Panchayat Institution, users association, co-
operat ive societ ies, non -gov ernmental organizat ions , or
franchisees.(13)
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REFORMS FROM THE EYES OF LEGISLATION
FUNCTIONS AND DUTIES OF AUTHORITY
(c) specify the safety requirements for construction, operationand maintenance of electrical plants and electric lines;
(d) specify the Grid Standards for operation and maintenance
of transmission lines;
(e) specify the conditions for installation of meters fortransmission and supply of electricity;
(f) promote and assist in the timely completion of schemes
and projects for improving and augmenting the electricity
system;
(g) promote measures for advancing the skill of personsengaged in the electricity industry;
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REFORMS FROM THE EYES OF LEGISLATION
FUNCTIONS AND DUTIES OF AUTHORITY
(h) advise the Central Government on any matter on which itsadvice is sought or make recommendation to that Government
on any matter if, in the opinion of the Authority, the
recommendation would help in improving the generation,
transmission, trading, distribution and utilisation of electricity;(i) collect and record the data concerning the generation,
transmission, trading, distribution and utilisation of electricity
and carry out studies relating to cost, efficiency,
competitiveness and such like matters;
(j) make public from time to time information secured underthis Act, and provide for the publication of reports and
investigations.
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PRIVATE DISTRIBUTION COMPANIES IN INDIA
BEST
REL
DISCHERGARH
TATA POWER
TATA TEA
BSES RPL
BSES YPL
NDPLCESC
TORRENT AEC
TORRENT SEC
NPCL
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INITIATIVES BY GOVERNMENTNDC Committee under the chairmanship of Shri Sharad
Pawar, the then Chief Minister of Maharashtra(1993)
The industry should be reoriented to be accountable to
the consumers.
Foremost reform needed in the state power sector is to
restore the autonomy of the state power utilities.
The State Government must distance itself from the
management of the State Electricity Board (SEB) to enablethe latter to have necessary technical, managerial and
financial autonomy.
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INITIATIVES BY GOVERNMENTNDC Committee
SEBs should function as corporate bodies which will enhance the
commercial viability of their operation.
Minimum tariff should gradually be increased so that it is not less than
50% of the average cost of the generation and distribution of electricity
during a year.
Constitute independent professional Tariff Boards. In the long run,these should be converted into statutory bodies.
Private sector participation in the power sector should be to attract
domestic and foreign investment in a competitive environment so that
the consumer of the retail may get the power so generated at the least
cost.
Stringent penalties should be imposed in case of unauthorized use of
electricity or theft.
Metering facilities should be installed not only for measuring the
electricity sold to the consumers but also for monitoring the energy
consumption at different voltages.
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ONE TIME SETTLEMENT OF OUTSTANDING DUES OF SEBS
Montek Singh Alhuwalia Expert
group,Member(P):Report
For the state participating in the scheme, 60% of interest /
surcharge on the delayed payments as on 30th September
2001 would be waived off.
The rest of the dues amounting to the full principle amount
as well as the remaining 40% of the interest/surcharge
would be securitised through bonds issued by the respective
State Governments.
The bonds would be issued through RBI at a tax free
interest rate of 8.5% per annum.
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ONE TIME SETTLEMENT OF OUTSTANDING DUES OF SEBS
For ensuring timely payment of current dues in future,
defaults in current payments for power / fuel would attract agraded reduction in the supply of power from central power
stations and in coal supplies. Where such defaults exceed
90 days from the date of billing, the Ministry of Finance shall
recover these dues through adjustment against releasesdue to them from the centre.
CPSUs shall offer incentives to SEBs for compiling with
the schemes.
Outstanding dues as on 30th September 2001 would form
the basis of the one time settlement.
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EXPERT COMMITTEE ON STATE SPECIFIC REFORMS
Sh Deepakh Parikh ,chairman ,IDFC limiteds
REPORT
The Government should ex-ante commit to a level of fundingthat would be made available for APDRP over the future and
agree to transfer it through a define annual allocation.
Access to assistance under APDRP should be made
contingent on a state signing off on the SEB dues settlement
scheme.
There would be two streams of support from the APDRP fund-
one for investment and other for incentive.
Efforts under investment component under APDRP be
directed towards concentrated zones.
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EXPERT COMMITTEE ON SATAE SPECIFIC
REFORMS
Sh Deepakh Parikh ,chairman ,IDFC limiteds
REPORTAPDRP funds should be made available to the utilities and
should also be accessible for private distribution utilities
subject to adequate safeguards to ensure that these utilities
pass on the benefits arising out of such investment to the
end consumers.
SERCs may consider taking such steps as necessary to
make the adoption of multi-year approaches as soon as
possible.Privatisation of concentrated zones and the introduction of
private participations in the other areas, so as to enable
harnessing of the private sectors focus of operational and
investment efficiency and viability of enterprise.
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EXPERT COMMITTEE ON SATAE SPECIFIC
REFORMS
Sh Deepakh Parikh ,chairman ,IDFC limiteds
REPORTState Government should take over all liabilities of SEBs
and write off its own loans to the SEB to enhance the
credibility of the restructuring process.
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MEMORANDUM OF UNDERSTANDINGGovernment of India signed MOUs with states for
undertaking reforms and restructuring in a time boundmanner and linking the support of Government of India for
achievement of pre-determined milestones
Reform programme by State Government
Reorganisation of State Electricity Boards
100% electrification of villages and hamlets
Energy audit at all levels
Setting up of SERCs
Rationalisation of tariffs
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MEMORANDUM OF UNDERSTANDINGSupport from Government of India
Supply of additional power wherever feasible
Strengthening & improvement of transmission
network
Assistance for distribution system
Funding for 100% electrification of village and
hamlets
Concessional financing by PFC for financialrestructuring plans, etc.
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MEMORANDUM OF AGREEMENTMemorandum of Agreement (MOA) by the SEBs/Utilities with MOP
is a prerequisite for release of APDRP funds.
SEBs/Utilities have to commit to certain benchmark parameters to
be achieved by them in next three years at the state level and at the
circle level.
MOA also mentions about various steps to be taken by the
SEB/Utility on administrative, technical and commercial fronts forimproving their overall performance.
States have been asked to formulate suitable policy for handing
over parts of distribution system on management contract or on
lease to local bodies, franchises, consumer corporative, local
institutions, and users association etc to promote bulk consumers
All the states have signed MOAs
S. No. Parameters
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1 Input energy Vs metered energy sale to consumers (energy billed
on flat rate/assessed basis is not to be included) for the entire state
2 T&D losses in MU (flat rate sales and unmetered sales is not to beincluded) for entire state
3 Gap between ARR and ACS per unit of energy (ARR-ACS). ARR:
Ratio of Gross Revenue Sales in crores of Rs and Net Energy Input
in MU for entire state. ACS: Ratio of cost of supply (including
generation cost, purchase and overhead cost) in crores of Rs. And
Net Energy input in MU for entire state
4 Productivity- Ratio of Metered energy sale to consumers and total
Manpower strength in a SEB/DISCOM (executive plus supervisors
plus support staff)
5 Improvement in PLF, heat rate and auxiliary power consumption
(Weighted Average for Generation plants owned by SEB)
6 Outstanding dues to CPSUs and other agencies (Outstanding dues
are cumulative Amount in Rupees crores as on 31st Dec.01)
7 Declared financial losses (to be provided in terms of Rs. and also in
terms of percentage sales on financial year basis)
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S.
No.
Parameters
1 Input energy to circle Vs metered energy sale to consumers (energy billed on
flat rate/assessed basis is not to be included)
2 T&D losses in MU (flat rate sales and unmetered sales is not to be included)
3 Gap between ARR and ACS per unit of energy (ARR-ACS). ARR: Ratio of
Gross Revenue Sales in crores of Rs and Net Energy Input in MU for entire
state. ACS: Ratio of cost of supply (including generation cost, purchase and
overhead cost) in crores of Rs. And Net Energy input in MU for entire circle
4 Productivity- Ratio of Metered energy sale to consumers and total Manpower
strength in a SEB/DISCOM (executive plus supervisors plus support staff)
5 Billing cycle time (Period)
6 Feeder outages (Numbers)
7 Failure rate of DTs (Percentage)
8 Consumer complaints (Numbers)
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9 Complaint disposal time (Period)
10 HT/LT Ratio
11 Average Load factor on Distribution Transformers
12 Average Power Factor
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Model no 1
SEB
CORPORATISED
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Model no 2
SEB
CORPORATISED
PUBLIC LTD CO.
with govt holding less than 50%
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Model no 3
SEB
GENCO
(Govt held)
TRANSCO
(Govt held)
DISTCO
(Govt held)
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Model no 4
SEB
Generation
&
Transmission Com
(Govt held)
Pvt Distribution Companies
(Govt held)
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Model no 5
SEB
GENCO
(Pvt Sector)
TRANSCO
(Pvt Sector)
DISTCO
(Pvt Sector)
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Model no 6
SEB
Generation
&
Transmission Com
(Pvt Sector)
TRANSCO
(Govt held)
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Model no 7
SEB
ZONAL (PVT SECTOR)
(GEN +TRANSMISSION+DISTRIBUTION)
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Model no 8
CONBINATION OF MODEL
4,5,6 AND 7.
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Feeder Meters
Improve Accountability
Reduce theft
Increase Revenue
Lower Tariff
Consumer Meters
Improve Billing
Increase Revenue
Lower Tariff
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Line Up gradation
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e Up g ada o
Reduce Outages
R
Better quality
Customer satisfaction
Increase Revenue
Lower Tariff
CConversion to HVDS
Improve Voltages
R
Better quality
Customer satisfaction
Increase Revenue
Lower Tariff
C
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Line Up gradation
I
Increase Revenue
Lower Tariff
C
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CONTROLCategory Character ist ics
A publicly owned, controlled by central governmentB publicly owned, controlled by local/state government
C privately owned, domestically controlled
D privately owned, domestically and internationally controlled
E mixed - predominance of public ownership (by which ismeant that, in a sector where there are found both public and
private ownership, the influence of the publicly owned entities is
greater than that of those which are privately owned)
F mixed - predominance of private ownership (as for E but with
privately owned entities being more influential).NO OF ALTERNATIVES=5
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PRIVATISATIONCategory Character ist ics
A no privatisation taken placeB privatisation process underway
C privatisation substantially complete
D always in private sectorNO OF ALTERNATIVES=4
STRUCTURECategory Character ist ics
A vertically integrated industryB unbundled industry
C mixed structureNO OF ALTERNATIVES=3
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TOTAL PERMUTATIONS=5X4X3X5
=300
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WESTERN EUROPEMost of countries in Western Europe are also members of
the European UnionThe 1996 European Union Directive on the Liberalisation of
the Electricity Market has had a great effect on the
development of electricity sector liberalisation.
Before the agreement on the directive the only countries tohave embarked on programmes of liberalisation were the
United Kingdom and three Scandinavian countries: Finland,
Norway and Sweden.
Largely as a result of the Directive, all countries in Western
Europe can now be considered to have liberalisationprogrammes underway
COUNTRY KEY
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CONTROL PRIVATISATIO
N
STRUCTURE PRICE RE
Austria E B C A
Belgium F A A A
Cyprus A A A A
Denmark E A/B B D
Finland E B B C
France A A A AGermany E/F B C C
Greece A A A A
Iceland E A B E
Ireland A A/B A E
Italy E B A B
Luxembourg E D C A
Netherlands B B B A
Norway E A/B C C
Portugal A B A A
COUNTRY KEY
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CONTROL PRIVATISATIO
N
STRUCTURE PRICE RE
Spain D C B D
Sweden E B B E
Switzerland E B A A
United Kingdom D C C C
CENTRAL AND EASTERN EUROPE
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CENTRAL AND EASTERN EUROPE
Central and Eastern Europe has seen considerable moves towards
electricity liberalisation since the ending of communist rule in countriesof the former Soviet bloc.
This has mirrored general moves towards the dismantling of previous
centralist regimes and the establishment of market principles.
The pace of change in many of these countries, however, remains
slow and dependent on overall economic strength and the success of
the introduction of very new frameworks to economies inexperienced in
the workings of market principles.
Most countries have seen, however, the introduction of international
independent power producers.
The countries generally demonstrate an overall commitment to
processes of economic restructuring and liberalisation but little as yet byway of specific progress towards reform of the electricity sector.
The commentary on individual countries focuses only on those
countries where particular reform of the electricity sector has been
entered into.
COUNTRY KEY
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CONTROL PRIVATISATION STRUCTURE PRICE REG
ALBANIA E B B A
ARMENIA A B B B
AMERBAIJAN A A A A
BELARUS A A A A
BOSNIA-
HERZEGOVINA
A A A A
BULGARIA A A A A
CROATIA A A A A
CZECH REPUBLIC E B C A
ESTONIA E B A A
GEORGIA E B C BHUNGARY E C B B
KAZAKHSTAN E B C A
KYRGYZSTAN A B A D
LATVIA A B A A
B
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COUNTRY KEY
CONTROL PRIVATISATION STRUCTURE PRICE RE
LITHUANIA A B B B
MACEDONIA A A A A
MOLDOVA A A A A
POLAND A B B A
ROMANIA A A A B
RUSSIA A B A A
SLOVAKIA A A C A
SLOVENIA A B B A
TAJIKSTAN A A A A
TURKEY E B C ATURKMENISTAN A A A A
UKRAINE E B B B
UZBEKISTAN A A A A
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AFRICA AND THE MIDDLE EASTLiberalisation of the electricity sector in Africa is developing slowly.
Virtually all countries are characterised by state ownership of theutilities, together with little liberalisation of the electricity sector.
Many countries have committed themselves to a programme of
liberalisation and privatisation but, with only very rare exceptions such as
the Cameroons, Egypt, the Cte dIvoire and South Africa, these planshave not yet been developed into concrete proposals for the electricity
sector.
Private involvement in generation is growing, as governments seek
capital to improve electricity facilities. In particular, independent private
power plants have been developed in some countries and legal changes
which would enable private participation in generation have been
proposed in others.
Particular developments of note in individual countries are presented
after the table.
Algeria A A A A
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Angola A A A A
Bahrain A A A A
Benin A A C A
Bissau A A A A
Botswana A A A A
Burkina Faso A A A A
Burkina Faso A A A A
Burundi A A A A
Cameroon A B A A
Central African Republic A A A A
Chad A A A A
C (D ti R bli ) A A A A
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Congo (Democratic Republic) A A A A
Cte dIvoire E B C A
Djibouti A A A A
Egypt (Arab Rep) A B B A
Equatorial Guinea A A A A
Eritrea A A A A
Ethiopia A B A A
Gabon A A A A
Gambia/Ghana A C B B
Guinea A A A A
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Iran (Islamic Rep) A A A A
Iraq A A A A
Israel A A A A
Jordan A B A A
Kenya E A B A/B
Kuwait A A A A
Lebanon A A A A
Lesotho A A A A
Liberia A A A A
Libya/GSPLAJ A A A A
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Libya/GSPLAJ A A A A
Madagascar A A A A
Malawi A A A A
Mali A A A A
Mauritania A A A A
Mauritius A A A A
Morocco A A A A
Mozambique A A A A
Namibia A A A A
Niger A A B A
Nigeria A A A A
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Oman E B A A
Qatar A B A A
Rwanda A A A A
Saudi Arabia A B A A
Senegal A A A A
Sierra Leone A A A A
Somalia A A A A
South Africa A A C A
South Yemen A A A A
Sudan A A A A
Swaziland A A A A
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Syria (Arab Rep) A A A A
Tanzania A A A A
The Gambia A A A A
Togo A B A A
Tunisia A A A A
Uganda A A A A
United Arab Emirates E B A A
Yemen A B A A
Zaire A A A A
Zambia E B A A
Zimbabwe E B C A
ASIA/AUSTRALIA
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Country Key
Control Privatisation Structure Price Regulation
Afghanistan A A A A
Australia E B C A
Bangladesh A A A A
Bhutan A A A A
Burma A A A A
Cambodia A A A A
China B A A A
Hong Kong D D A A
India B B B A
ASIA/AUSTRALIA
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SOUTH AMERICA
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Country Key
Control Privatisation Structure Price Regulation
Argentina D C B C
Bolivia F B C E
Brazil B B C A
Chile C C C C
Colombia E B C E
Ecuador A B A A
Guyana A A A A
SOUTH AMERICA
SOUTH AMERICA
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Paraguay A A A A
Peru F B C C
Surinam A A A A
Uruguay A A A A
Venezuela E B A A
SOUTH AMERICA
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APDRPD APDRP was originally started as Accelerated Power
Development Programme (APDP) in 2000-01, with
emphasis on
upgradation of sub-transmission and distribution
network and
also on renovation and modernization/ life extension/
uprating of old power plants (thermal and hydel)
Accelerated Power Development Programme
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(APDP)During 2000-01 a scheme called Accelerated Power Development
Programme (APDP) to provide systematic finance to enableSEBs/Utilities to take up distribution sector reform.
Budgetary allocation of Rs. 1000 Crore and Rs. 1500 Crore
respectively to the State Governments as Additional Central Assistance
in first two years respectively.
n 2000-01 projects costing Rs. 1456.78 Crore were sanctioned and the
Government released its full contribution of Rs. 786.29 Crore in one
installment. The utilities have utilized Rs. 1306.57 Crore.
In 2001-02 many of the States had not signed MOU and MOAAgreement (MOA) was under preparation, no funds were released.
Assistance under the Programme was subject to signing of
Memorandum of Understanding (MOU) by the States.
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APDRP
On the recommendations of Deepak Parekh Committeeon State specific reforms APDP was rechristened as
APDRP during 2002-03 with focus on concentrated
zones i.e. industrial and urban areas. Incentive
component was introduced in 2002-03 to encourage theutilities to reduce their cash losses.
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APDRP
The funding modalities have also been restructured
during 2005-06. Earlier, the assistance under
investment component of the programme in the form
of 25% grant and 25% loan (90% grant and 10%
loan for special category states) was being given.
The loan component has been dispensed with fromthe current financial year
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APDRPFEATURES
Reduction in Aggregate Technical and Commercial (AT&C)
losses
to bring about commercial viability
to reduce outages and interruptions
and to Increase consumer satisfaction.
The programme envisages an investment component that
covers strengthening and upgradation of sub-transmission and
distribution system with twenty five percent grant and anincentive component as grant to states/ utilities that reduce
cash losses with 2000-01 as the base year
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APDRPEXPECTED BENEFITSQuality of supply and reliable, interruption- free powerwill encourage usage of energy efficient equipments /
appliances, which will further lead to improvement in
availability of energy.
Reduction in cash losses on a permanent basis to the
tune of Rs.15,000 Crore.
Distribution reform as envisaged above will help States
to avoid heavy subsidies, which are given to SEBs /
State Utilities by State Governments. They would be
able to invest this amount for providing basic services
like Health, Education, and Drinking Water etc.
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APDRPEXPECTED BENEFITSQuality of supply and reliable, interruption- free powerwill encourage usage of energy efficient equipments /
appliances, which will further lead to improvement in
availability of energy.
Reduction in cash losses on a permanent basis to the
tune of Rs.15,000 Crore.
Distribution reform as envisaged above will help States
to avoid heavy subsidies, which are given to SEBs /
State Utilities by State Governments. They would be
able to invest this amount for providing basic services
like Health, Education, and Drinking Water etc.
Year BE RE Actual Expenditure
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2002-03 3500.00 1089.00 Investment 1755.52
Incentive 379.28
Total - 2134.80
2003-04 3500.00 3300.00 Investment 2356.51
Incentive 503.30
Total 2859.81
2004-05 3500.00 1700.00 Investment- 1428.73
Incentive 73.00
Total 1501.73
2005-06 1172.00
(Grant only)
- Investment 331.56
Incentive 515.78
Total 847.34
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Total projects sanctioned: Rs. 19182.33 Crore
Total fund released: Rs. 5872.32 Crore
Total fund utilized: Rs. 8568.44 Crore
S.No. Name of States Year Reduction in cash
l
Incentive Released
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losses
1. Andhra Pradesh 2002-03 530.22 265.11
2. Gujarat
2001-02 472.76 236.38
2002-03 296.16 148.08
3. Haryana 2001-02 210.98 105.49
4. Kerala 2002-03 129.88 64.94
4. Maharashtra 2001-02 275.78 137.89
5. Rajasthan 2001-02 275.42 137.71
6.
West Bengal
2002-03 146.00 73.00
2003-04 605.52 302.76
Total 2942.72 1471.36
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APDRPFocus on following after evaluation of 66 projects
GIS based consumer indexing and distribution transformer basedenergy auditing for increased accountability
Adoption of IT for efficiency improvement
Focused monitoring on key performance parameters.
To cover all district headquarters under the programme on priority
Establishment of consumer care centers/Bijlee Seva Kendras
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Thank You