Indian states to be made accountable for power distribution

Localize power distribtuion.

This will be observed in India after a law will make states accountable for power distribution.

"The State Electricity Distribution Responsibility Bill is in the process of drafting," said Union Power Secretary P Uma Shankar.

"The gap between the cost of power and revenue generated by distribution cannot be left untreated,"
he said.

Shankar also said that tariff revision will no longer be a one time affair. There will be regular revision of tariff and distribution companies will have to file annual tariff plans, he said.

He added that the financial health of distribution companies, Shankar said it will improve with the debt restructuring plan approved by the Centre in September.

The plan, which proposes restructuring of Rs 1.9-lakh crore debt of state electricity boards, includes turning the past losses of electricity boards in to equity by states, reduction in transmission and distribution losses, and regular tariff revision.

"Most states were content to merely connect generation to transmission but hesitant to pay for transmission costs. This was one of the factors that affected the economics of power distribution," he said.

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