Interview with Power Secretary: ‘Prepaid metering solution for bane of billing and collection … good for discoms, consumers’

Prepaid sensible meters can play an necessary function in addressing the difficulty of billing and assortment in energy distribution, stated Power Secretary Alok Kumar. In an interview to Karunjit Singh, he additionally stated the ministries of energy, coal and railways have been actively working in the direction of boosting coal provide, and that energy era firms, or gencos, have been unlikely to face the difficulty of low coal stock publish monsoon in 2022.  Edited excerpts:
Dues of state authorities to discoms and discoms to gencos have been key points within the sector. Are these dues coming down?
Dues haven’t come down in case you see general, however dues for the CPSUs (central public sector utilities) have come down as a result of they’re very immediate in regulation. IPPs (unbiased energy producers) should not so immediate in regulation. So they must implement the PPA (energy buy settlement) cost safety mechanism. We totally help (that) and we have now additionally instructed CPSUs that if some IPP is regulating for need of cost, the CPSU won’t refill that hole, and provide extra (energy) to that state.
In the discom half, the money circulate scenario is broadly an issue on three accounts — well timed revision of tariffs, cost of subsidies and authorities dues by the state governments, and the gathering of billing and assortment by the discom. The well timed cost by states is a part of the pre-qualification below new schemes. Tariff dedication can be part of the pre-qualification. So these two issues will redressed. They are the situations each for our RDSS (Revemped Distribution Sector Scheme) in addition to the extra 0.5 per cent borrowing by the Ministry of Finance.

For the gathering half, we’re pushing for pay as you go, sensible metering. The complete bane of the billing and assortment is that these meter readers should not there. [Distribution companies, or discoms] have outsourced it. They minimize corners, the payments should not given in time. Sometimes incorrect payments are given on time, and customers don’t pay. Then, you see the variety of households who’re related to the grid coming into crores in some states, like UP, Maharashtra and all. No firm or no huge enterprise and by no means the federal government can gather cash from such customers and disconnect them one after the other. So pay as you go metering is the answer as a result of this has been proved in telecom additionally, in our DISH TV (sector) additionally.
So, if in case you have a pay as you go connection, the patron can even know the way a lot I’ve to pay, how a lot I can devour. He can pay and he won’t be bothered by not receiving a invoice well timed or receiving a improper invoice and getting it corrected or receiving a invoice after six months which you’ll be able to’t pay at one go. So my take is that pay as you go metering is sweet for discoms. And this I’d say even higher for customers for transparency and for the comfort and for the benefit.
Are you assured thermal vegetation will be capable of meet coal stocking targets and keep away from a scarcity previous the monsoon?
I’ll say coal provide this 12 months has had a great development during the last 12 months and former years additionally, however our demand has grown even additional. So wanting on the demand of energy, it’s going to be a process which wants steady consideration from Ministry of Power, Ministry of Coal, and Railways.
Coal manufacturing has began growing now and we have now had detailed discussions with Railways additionally and so they’ve elevated the rakes (being shipped). The rakes per day that have been there on January 10 or so, now (as on February 4) it’s 20 rakes per day extra, however we want extra rakes. So Railways has made a plan for inducting new wagons additionally. They’ve additionally recognized sure crucial and tremendous crucial railway works which should be accomplished the earliest to extend the monitor capability. We are working very carefully, however it will be an enormous and tough process. But I’m positive that with the collective efforts of all of us, that scenario (low coal inventories) won’t come publish monsoon.
The Centre has known as for decrease cross subsidy surcharge additional time. How are states responding to this proposal?

You might have very ambitiously excessive cross subsidy proportion, (as excessive as) 140 per cent. But see the expansion of commercial consumption in your state. It is meagre or it’s coming down. So the quantity of cross subsidy collected is much much less. Have an inexpensive cross subsidy surcharge and attempt to get extra of commercial load in order that your general cross subsidy by way of crore rupees is bigger. That is goal. Cross subsidy is to subsidise the opposite poor customers.
… As we solarise agricultural consumption, the subsidy burden of agricultural provide will come down as a result of solar energy is cheaper. So as you solarise the agriculture consumption and also you deliver down that subsidy quantity, you should have some area out there to deliver down cross subsidies.
You see the states who’re wiser, they’ve moderated their cross subsidy ranges and elevated their industrial consumption and their cross subsidy quantity has elevated. We have suggested them, we have now made a tariff coverage and I feel states will study from the success of different states.