Discoms continues to be the weakest link in the electricity chain although they enjoy the regulated rate of return. What are the reasons for stress in the Discoms and suggest the measures to make them self-sustaining. 10 marks

Mentor’s comment-

https://www.thehindu.com/opinion/lead/indias-discom-stress-is-more-than-the-sum-of-its-past/article32957608.ece
In the intro, mention the important role played by the discoms by retailing the power to consumers.
In the body, elaborate on the various factors that have been impacting the discoms- high AT and T losses, long term PPAs at higher rates, lack of cost-reflective tariffs by the regulators, challenge of payables to discoms by consumers as well as States, challenge from renewables etc. Next, suggest the measures-Reducing AT and T losses, regulatory overhaul, regulation of cross-subsidies, etc.
Conclude by mentioning the important role discoms play in the economy and implementation of steps to overhaul them.

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Rohan Sable

4 years ago

intro – what are discoms
they are electrical distribution companies associated with distribution of electricity to end consumers from the power generator and transmission companies

BODY-the stress in discoms can be widely viewed into 3 broad categories
generation,transmission and distributions

generation – power generation sector is also facing stress due to decreased demand as shown in the index of core industries report by DEPARTMENT OF TRADE AND INDUSTRIAL PROMOTION
-ALSO, coal which is the main source of energy is getting expensive ,the coal industries also face problem of land availibilty and enviormental impact assesment

TRANSMISSION-there is always the problem of at&c losses plus the industries are getting away from the consumers , power lines in village are not welcomed

DISTRIBUTION-basically it can be broadly devided into 3 main issues
1. subsidies to agriculture sector
2.issues in regular payment of dues by states to discoms in case of subsides
3.tarrif issues in discoms and cross subsidies
4. renewable techologies in some way also affect distrubution by casuing disparities

all these are areas of major concern
so the way forward would be as the govt has done in case of stimulas package but it is not enough
as the dues in real seem to be more than projected
there should real or true tariff system also losses on dues of consumers should be reduced
smart metering is a good way but will require time
some short term should based on quick payment of dues
,increasing demand and stability reforms in the sector