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Power Firms Seek A Year To Tide Over Capital Crisis

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BUSINESS STANDARD
Last Updated : Jan 28 2013 | 12:58 AM IST

Tata Power and BSES Ltd -- the private players handling the distribution business in the Capital -- envisage a one-year time frame for bringing about visible improvements in the system. The two companies today attributed the current crisis to short supply of power against an increase in demand of over 20 per cent during July this year.

While addressing consumer grievances and attending to systemic faults was their priority at present, long-term measures being planned include regularising unauthorised colonies and providing a single-window system for bulk consumers.

Addressing a press conference organised jointly by Tata Power and BSES Ltd, Adi Engineer, chairman of the North-North West Delhi Distribution company, said: "Revamping a run-down infrastructure will be a long haul. It will take customers at least one year to experience visible changes in the distribution business."

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Engineer said the distribution system also had a gestation period like the power generation and the system could be improved only after a proper review. Even the replacement of transformers and other equipment took around six to eight months.

Jagdish Sagar, chairman of the state-owned Delhi Power Supply Company, said the power demand in the first ten days of July was around 647 million units, as compared to 596 million units and 550 units during the corresponding period of the preceding two years.

"There has been a steep growth in demand this year, and it could not have been matched with a corresponding increase in power supply," Sagar said. He, however, said the loadshedding of 23 million units during the first 10 days of July had not been unprecedented. In July 2000, the Delhi Vidyut Board had to resort to loadshedding of 24 million units while loadshedding to the tune of 39 million units was resorted to during the first 10 days of July 1999, Sagar said.

He said the private companies might not necessarily increase consumer tariffs in a big way for making the system more efficient.

Tariff setting, though, was the regulator's prerogative, he added. The regulator sets tariffs on the basis of annual revenue requirement petitions filed by the distribution companies.

Both Tata Power and BSES Ltd said a detailed roadmap would be prepared to revamp the distribution network after studying the system. According to J P Chalasani, CEO of both the distribution companies being operated by BSES, an investment of around Rs 500 crore would be required by each of the companies for upgrading the system over the next five years. But the exact quantum of investment would be ascertained only after reviewing the system, he added.

BSES has already made presentations to investment bankers for raising funds for this purpose. According to Engineer, the Tatas have estimated an approximate investment of around Rs 50 crore per year for the north-north west zone. "Over 30 per cent of the 1,500 shunt capacitors are not working. Besides, 400 kVA transformers burn down every now and then because they have to deliver double their capacity and there are numerous cable faults," he said.

According to the managing director of BSES Ltd, S S Dua, while initial measures had started making a difference in streamlining the broader problems, long-term measures like overhauling the billing system and using information technology to upgrade facilities to the standard of those being used in Mumbai, were being envisaged. "We are in the process of identifying the weak links in the system," Dua said.

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First Published: Jul 12 2002 | 12:00 AM IST

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