Replicate Patiala model to cut T&C losses: NIPEF

“Involvement of engineers in decision process will improve the performance of power utilities”

vk gupta,

Secretary Finance, NIPEFr
Yogindra Mohan

Patiala

The Northern India Power Engineers Federation (NIPEF) has suggested replicating the “Patiala model” for cutting the aggregate transmission and commercial (AT&C) losses.

VK Gupta, Secretary Finance, Northern India Power Engineers Federation (NIPEF), in an interview with Daily Post said in Punjab a pilot project was started at Patiala at the behest of the PSEB Engineers Association with the full support of state government and power utility. The AT&C losses in Patiala which were in range of 23 to 24 per cent have been brought down to 17 per cent in two years. As on date these losses are around 14 per cent. The in-house expenditure was minimum as compared to outsourcing to a franchisee.

He said the Patiala model can be replicated in country successfully with minor changes to suit local conditions. Professionalisation of power utility managements and involvement of engineers in decision making process can only improve the performance of power utilities.

He said the power reforms in country got a different direction under the economic reforms started in 90’s. The power sector reforms advocated unbundling of the state electricity boards (SEBs) in different companies comprising generation, distribution and transmission. Gupta said following their unbundling and induction of private sector in power generation, the private sector has now an installed capacity of 23 per cent in the grid. The states have now less than 45 per cent of the generation, a fraction that is bound to come down even further in next few years.

He said now in year 2012 another bailout package has been announced with mandatory riders. These include implementation of “Road map for involvement of private sector in state distribution sector through franchisee arrangements or any other mode of private participation to be prepared within a year by the Discoms”.The financial restructuring scheme puts a major responsibility on the state government to take over and bear the burden of accumulated short term loans and liabilities of the Discoms.

Gupta said the franchisee as proposed in bailout package is not the only way to reduce transmission and distribution losses and the same can be done departmentally with given administrative support. The losses can be better reduced within the framework of public sector functioning with a professionally qualified and technically oriented management.