No.13 - 2019/Integration Of Power Utilities         29 - 05 - 2019

Chief Minister

Chhattisgarh Government

Raipur

Sub: Integration of all Power Companies in State

Respected Sir,

All India Power Engineers Federation (AIPEF) wants to draw your kind attention towards the need of the time to integrate all power companies of Chhattisgarh State into one Power Company for better management and coordination of power generation , transmission and distribution of electricity in state. In this regard i want to submit before you as following.

2. Integration of state power utilities ---

 With the enactment of Electricity Act 2003, different states including Chhattisgarh unbundled State Electricity Boards although it was not mandatory to disintegrate SEB's as per Act .  In case of Kerala  and Himachal Pradesh the integrated structure of generation, transmission and distribution was retained in one company as KSEB Ltd and HPSEB Ltd. 

 3. AIPEF wants to summarise FACTORS IN FAVOUR OF INTEGRATED STRUCTURE

i)     Every state has one SLDC where the entire state is considered as one control area. This gives SLDC a clear advantage to manage load dispatch over the state as one entity. For example if there is load crash in one portion of state (due to rain, storm etc.) SLDC can  order additional supply or loading in other areas of state to offset load crash, so that overall drawl by State remains without deviation.

ii)    With one state power company concept the state thermal and hydro generation can be optimally dispatched by SLDC in the most economic and optimum manner.

iii)   Manpower and HR functions are performed more efficiently and with uniformity with one organization as opposed to multiple companies. 

iv)In regulatory matters of state level, and dealing with SERC, it is practically effective with one power company having Distribution,  generation and transmission combined. Creation of multiple units only complicates SERC issues.  

v)    Similarly, in dealings with CERC and APTEL etc. it is practically possible and justified considering the state as one entity.

4. In Chhattisgarh APTEL has clarified in it's judgement of 15th July 2009 (Appeal No 119 of 2008 & IA No 151 of 2008) that as per  para 25 of Section 131 of Electricity Act 2003 unbundling of SEB is not mandatory and if State wants it can continue with one integrated company as supply licencee. As referred earlier Kerala and Himachal Pradesh Govt's are continuing with KSEB Ltd and HBSEB Ltd. 

5. Besides this it is learnt that Chhattisgarh Power Generation Company and Transmission Company are paying crores of Rupees as income tax while Distribution Company is running in loss. If all companies are integrated then Chhattisgarh will save crores of Rupees unnecessarily paid to income tax. Lot of money saving will come through integrated company by savingcommon nature expenditure. Ultimately all this saving will reflect in lower tariff for common consumers.

6. In view of facts narrated above AIPEF requests you to kindly integrate all power utilities of state in form of Chhattisgarh Vidyut Mandal Ltd for better coordinated functioning in larger interest of State and common consumers.

Thanking you with regards.

Yours Faithfully

Shailendra Dubey

Chairman