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Home News Power Sector News OERC cautions private discoms to suspend their licenses

OERC cautions private discoms to suspend their licenses

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OrissaThe Orissa Electricity Regulatory Commission (OERC) cautioned the three private power distribution companies, Wesco, Nesco and Southco, to suspend their licenses if they did not improve their functioning at the earliest. The OERC set a deadline of September 30 for the purpose. It said by this time the transmission and distribution loss has to be reduced and that there will have to be tangible' improvement in consumer service. It also said that the problems surrounding the share-holders agreement and payment of NTPC bond dues will have to be sorted out by that time.

The OERC took the decision after taking into consideration the petition of Sarat Chandra Mohanty, January 5, 2009 SC, December 13, 2006 showcause notice of the appellate tribunal of electricity, the views of the state government and others on the matter. "In order to allow another opportunity to Wesco, Nesco and South to arrange fund for capital investment, taking effective steps or energy audit, arresting theft of electricity, improve standard of service to consumers and to take proactive steps for redressal of consumer grievances and settlement of disputes with Gridco with regard to NTPC bond and other dues, the commission at present, instead of suspending the licenses of three distribution companies would like to see an environment of effort on all sides to improve performances on various aspects.

In view of the aforesaid discussions and analysis the commission, instead of suspending licenses of Wesco, Nesco and Southco directs some demons ratable actions towards improvement of performance," the commission said in its order.

The petitioner had challenged how Reliance company continued to run the three distribution companies despite its share-holder agreement with Gridco having been expired from April 1, 2004.

The OERC also ordered that the private distribution companies would have to arrange counterpart funding for infrastructure improvement for which the state government is also providing funds. It also directed the three companies to submit before it a plan by June 30 on spot billing and payment of dues by consumers.

The OERC also put a rider on the distribution companies on reduction in purchase of power from Gridco and power cuts in their respective areas. The commission said, "It would review from time to time the progress made for complying with the stipulations."

Source- Times of India


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