The system will help reduce the huge power pilferage, which is estimated at 22% to 27%, and tackle consumers’ complaints.
The proposal is seen as an attempt by the government to improve revenue realization and provide more stable power supply to consumers.
Senior energy department official said “We are studying the Delhi and Mumbai models where private parties have been given franchises to distribute power. We propose to adopt such a model as part of power sector reforms. Once it’s implemented, consumers will get uninterrupted power and it’ll also lead to quicker repair of faults.”
Energy department sources have stated that more than 24 private companies including Torrent, Essar, Reliance and Tata are expressing interest in the proposal. The department will shortly conduct a meeting with their representatives.
In Bangalore, initially pilot projects could be introduced. Depending on the results, projects will be executed in other key rural and urban areas.
In an attempt to mitigate the fears of government power employees, a senior energy official stated that even though the government planned to involve private companies, the concerned Escoms would retain management control, with its employees concentrating on distribution. But, the government will permit private firms to use their managerial teams to handle the operation.
The professional approach adopted by potential private firms would aid in lowering losses in transmission and distribution. According to the proposal, KERC would fix the power rates, and Escoms and private companies would share incremental earnings.
