Analysis of Restructed Power System: A Case Study of Punjab State

Abstract

country's development is measured in terms of per capita consumption of electricity which in turn depends on electricity generated. In India per capita energy consumption is quite low and for the year 2007 it was only a measure 665 KWH per annum in comparison to about 12000 KWh for USA and 34000 in Norway, which indicates fairly low level of industrialization in the country. The current per capita power consumption is about 734 kWh per year while the world average is 2,782 kWh. As a result, regulators, worldwide are now implementing new regulatory schemes and organizational reforms in an effort to improve the incentives for efficient operation of electricity utilities. All these reforms are consistent with the view that competition should be introduced into the electricity supply industry, wherever, it is technologically feasible and India is not exception to these reforms. In this thesis, a case study of restructured power sector of Punjab, which is in the Northern Part of India, has been carried out. With enactment of Electricity Act 2003, there has been tremendous improvement in power sector of this state. There is significant improvement in the areas of transmission and distribution, tariff rationalization and in availability of power supply. The Electricity supply is traditionally viewed as a natural monopoly. There is growing dissatisfaction with limited incentives for efficient operation of a cost-of-service regulated or government owned electric utility. As a consequence, regulators, worldwide, are now implementing new regulatory schemes and organizational reforms in an effort to improve the incentives for efficient operation of electricity utilities. All these reforms are consistent with the view that competition should be introduced into the electricity supply industry wherever it is technologically feasible. Recently Indian Electricity Act, 2003 was enacted to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and largely for taking measures conducive to development of electricity industry, promoting competition, protecting interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficiency and environmentally benign policies. In this thesis various reformations made to the power system of Punjab state after restructuring are discussed. Transmission and Distribution losses, Commercial losses are discussed and the effect of restructuring is analyzed