4.4
Transmission
and
Distribution
Losses
4.4.1
Almost
all
the
respondents
have
very
vehemently
contended
that
the
high
T&D
losses
indicate
the
callous
negligence
and
inefficiency
of
the
Board
and
its
utter
failure
to
check
theft
and
pilferage,
being
caused
partially
due
to
the
abetment
and
involvement
of
its
own
staff.
Ujjain
Power-Loom
Cloth
Association
represented
that
with
additional
revenue
generated
by
curbing
theft,
the
increase
in
tariff
will
not
be
required.
Similar
views
were
expressed
by
Shri
Pratap
Verma
and
Shri
N.K.
Janglwa
of
MP
Chamber
of
Commerce
and
Industry,
Indore,
Shri
Kailash
Vijayavargiya
(Mayor
Indore)
and
Shri
Lodha,
Chartered
Accountant,
for
M.P.
Chamber
of
Commerce
and
Industry,
Gwalior.
Public
participation
in
checking
thefts
was
emphasized
by
Shri
N.K.
Janglwa
by
citing
example
of
Bangladesh.
Shri
P.L.
Nene
proposed
installation
of
capacitors
to
reduce
T&D
losses.
4.4.2
Realising
the
importance
of
correct
assessment
of
T&D
losses,
the
Commission
got
a
sample
survey
conducted
which
confirmed
the
high
level
of
T&D
losses
of
about
50
percent
in
the
existing
system
of
the
Board.
The
Commission
has
directed
the
Board
to
take
appropriate
steps
to
reduce
these
losses
progressively.
4.5
Operational
Norms
for
Thermal
and
Hydroelectric
Power
Stations
4.5.1
A
number
of
individuals
and
organizations
including
Shri
Ajit
Verma
of
Jailok
Study
Circle
Jabalpur
pointed
out
that
the
expenditure
of
the
Board
can
be
reduced
significantly
by
improving
operational
parameters
to
feasible
limits.
They
pointed
out
irregularities
in
transport
of
coal
and
payment
thereof
without
considering
the
grades
of
coal
actually
received.
Reduction
in
auxiliary
consumption,
coal
consumption
and
fuel
oil
consumption
was
also
suggested.
4.5.2
The
Commission
got
a
detailed
study
conducted
on
operational
norms
taking
into
consideration
the
efficiencies
achieved
by
the
Board’s
plants
in
earlier
years,
by
similar
plants
working
in
other
states
and
by
Central
undertakings
and
also
the
norms
suggested
by
the
Central
Electricity
Authority
/
Ministry
of
Power
Government
of
India.
The
Commission
has
not
allowed
the
figures
of
expenditure
projected
by
the
Board
in
the
petition
and
has
reduced
it
on
relevant
items
on
the
basis
of
norms,
worked
out
on
the
above
basis
which
also
conforms
to
the
prudent
commercial
practice.
4.6
O&M
Expenditure
4.6.1
It
has
been
pointed
out
that
O&M
Expenses
of
the
Board
are
higher
than
the
norms
fixed
by
the
Central
Electricity
Authority.
Expenditure
on
employees
can
also
be
curtailed.
4.6.2
The
Commission
got
a
study
conducted
for
expenditure
on
repairs
and
maintenance
as
also
the
expenditure
on
employees,
considering
various
norms
and
the
performance
of
other
utilities.
The
Commission
has
accordingly
curtailed
the
O&M
expenditure
indicated
by
the
Board
in
its
petition.
4.7
Outstanding
Dues
of
Board
4.7.1
Sri
P.L.
Nene
(Indore)
and
others
were
critical
of
the
Board
for
the
high
level
of
its
revenue
arrears.
Sri
Bharat
Bhushan
Bhargava
(Gwalior)
doubted
as
to
how
the
figures
of
bad
debts
(which
were
very
high)
could
be
the
same
for
different
years
and
how
much
of
these
had
been
written
off.
They
were
also
critical
of
the
non-realization
of
arrears
from
large
industries.
4.7.2
The
Commission
has
taken
serious
note
of
the
unacceptable
high
level
of
arrears
and
the
lack
of
determination
shown
by
the
Board
in
liquidating
it.
The
Commission
has
directed
the
Board
to
ensure
dis-connection
of
defaulting
consumers
and
realization
of
arrears
in
a
determined
manner.
4.8
Government
Subsidy
4.8.1
The
State
Government
subsidises
the
Board
against
free
supply
of
electricity
to
weaker
sections
and
agriculture
consumers.
Several
individuals,
and
organizations
deplored
that
the
level
of
subsidy
provided
by
the
State
Government
to
the
Board
has
been
going
down
which
is
the
main
cause
of
financial
problems
of
the
Board.
The
level
of
subsidy
indicated
in
the
Board’s
petition
was
considered
inadequate
by
Pithampur
Audyogik
Sangthan.
Shri
Kailash
Joshi,
Member
Rajya
Sahba,
expressed
similar
views.
4.8.2
The
State
Government,
in
the
budget
for
2001-02
has
made
provision
for
subsidy
against
free
supply
to
SLP
connections
and
agriculture
connections
upto
5
HP
and
also
towards
compensation
of
rural
electrification
losses
(subsidy
against
low
agriculture
tariff)
to
the
Board.
The
Commission
has
considered
the
same
while
deciding
tariff.
However,
the
Commission
too,
feels
that
current
level
of
subsidy
is
inadequate.
4.9
Domestic
Tariff
4.9.1
Shri
Babulal
Gaur,
MLA,
Shri
Shailendra
Pradhan
(Bhopal),
Shri
Bhawani
Shanker
Ghosh
(Jabalpur),
Shri
B.N
Sharma
(Indore)
and
others
stated
that
minimum
charge
of
Rs.
180
per
month
proposed
by
the
Board
was
very
high.
Shri
G.D.
Agarwal
and
Shri
MBL
Bhatnagar
(Gwalior)
suggested
that
number
of
slabs
in
domestic
tariff
should
be
increased.
Viapari
Association,
Khargone
stated
that
abolition
of
slabs
will
place
undue
burden
on
the
middle
class.
Shri
Hemant
Khode,
President,
Abhibhashak
Sangh
Indore,
Shri
L.N.
Sharma,
Advocate
Indore
and
several
others
also
objected
to
the
high
minimum
charge
of
Rs.
180
pm
proposed
by
the
Board.
4.9.2
The
Commission
shares
these
concerns
and
has
decided
that
the
domestic
tariff
will
have
five
slabs
in
place
of
existing
three
and
not
one
alone
as
proposed
by
the
Board.
Considering
the
problems
of
small
consumers,
the
Commission
has
allowed
only
a
nominal
increase
in
minimum
charges.
4.10
Agricultural
Tariff
4.10.1
The
Commission
allowed
special
public
hearing
to
cultivator
group
on
11th
July,
2001
at
Indore.
Sarva
Shri
Amba
Ram
Mukati,
Chandra
Vallabh,
Kanhaiya
Lal
Yadav
Indore
and
others
opposed
Board’s
proposal
concerning
this
category
and
prayed
that
load
factor
for
agriculture
for
2001-02
should
be
15
percent
instead
of
18
percent
as
proposed
by
the
Board.
They
also
expressed
concern
over
poor
quality,
frequent
interruptions
and
long
spells
of
non-availability
of
power.
The
cultivators
have
also
expressed
strong
opposition
to
the
cropwise
flat
rate
tariff
proposed
by
the
Board
as
the
crop
seasons
overlap
and
the
cultivators
may
not
irrigate
their
total
land
in
any
particular
crop
season.
.
Shri.
Raj
Narayan
Bharadwaj,
Shri
Shyam
Sunder
Mishra
of
Akhil
Bhartiya
Kisan
Sabha,
(Jabalpur)
Shri
Satish
Tiwari
President,
Nagar
Panchayat
Barahi
(Jabalpur)
and
Shri
Ram
Narayan
Sharma,
Mudhyiakheda
(Morena)
submitted
that
villages
were
being
neglected
in
supply
of
Power
4.10.2
The
Commission
has
considered
these
observations.
A
study
by
the
Commission
also
indicated
a
load
factor
of
15
percent
for
2001-02
which
has
been
adopted.
The
Commission
is
in
agreement
that
the
crop
wise
tariff
proposed
by
the
Board
is
not
amenable
to
fair
assessment
and
has
thus
retained
the
present
horse-power-wise
classification
of
agricultural
pump
sets
for
tariff
determination,
on
the
basis
of
monthly
slab
rate
per
HP
per
month.
Commission
has
given
directions
to
the
Board
for
improvement
of
quality
and
reliability
of
power
for
the
agricultural
sector.
