Union Minister of State for Power and New & Renewable Energy, Shri Shripad Yesso Naik, chaired the 4^th meeting of Group of Ministers constituted for addressing issues related to viability of electricity distribution utilities in Vijayawada today.

Shri A. K Sharma, Energy Minister, Uttar Pradesh, Shri Gottipati Ravi Kumar, Energy Minister, Andhra Pradesh, Shri Hiralal Nagar, Minster of State for Energy, Rajasthan and Smt. Meghana Sakore Bordikar, Minister of State for Energy, Maharashtra as members of the Group attended the meeting. The meeting was also attended by senior representatives from All India DISCOM Association (AIDA), senior officials from Central Government, State Governments, State Power Utilities of Member States and Power Finance Corporation (PFC) Ltd.

Union Minister of State in his opening address welcomed Energy Ministers from the member States and thanked Energy Minister, Andhra Pradesh, for hosting the meeting. He highlighted about the deliberations held during the first three meetings of GoM regarding challenges being faced by the distribution utilities and stressed upon the need for regulatory reforms. He also mentioned about the key actionable items identified by GoM till the last held meeting including the steps that needs to be taken by the Central and the State Governments for improving efficiency of utilities.

Hon’ble Minister highlighted about the collective responsibilities of State Governments and Regulatory Commissions for making distribution sector sustainable.

In his address, Energy Minister, Andhra Pradesh thanked the Union Minister of State for having the 4th meeting of the Group of Ministers in Vijayawada.

All India DISCOMs Association (AIDA), as a special invitee, also made a presentation on the subject. It was mentioned that SERCs need to comply with Tariff Policy and Rules while finalising the Tariff petitions of the Utilities. It was also mentioned that there is a need for having a comprehensive review of the tariff policy which is in sync with the present requirements and challenges of the Utilities and its consumers.

Joint Secretary (Distribution), Ministry of Power, GoI made a presentation highlighting key areas of intervention. He presented the key parameters reflecting the present financial status of the utilities of the member States, and major regulatory disallowances in their tariff/true-up orders. It was also presented that the annual revenue increase of most of the utilities is not commensurate with the increase in debt being taken by them. The presentation also highlighted the action plan proposed to reduce the outstanding debts and losses of the distribution utilities.

The key points of discussions included role that the State Governments may play for ensuring cost reflective tariff, in ensuring timely payment of subsidies and Government department dues, expediting works ongoing under Revamped Distribution Sector Scheme including the smart metering works, increasing the use of Artificial Intelligence and Data Analytics to improve power purchase optimisation and demand forecasting, etc. The States also requested support of GoI in reforming its distribution sector through measures like distribution franchisee/privatization/ introduction of parallel licensee, etc.

It was emphasised by the Member States that the Group of Ministers may be continued beyond submission of the final report, and on a rotation basis States may be invited to brainstorm on the issues affecting the power sector as a whole. It was proposed to hold a dedicated session on measure for reducing Power Purchase costs by inviting all the stakeholders.

The Group of Ministers reiterated its commitment and expressed resolve to take necessary measures for improving the financial viability of distribution utilities.

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