Identified Discoms significant lapses in operational performance: TGERC

The Discom’s failure to adhere to certain stipulated time frame for filing the petitions which not only undermine public trust but also risk the financial viability of the power distribution system, impacting consumers who depend on a stable supply of electricity, according to TGERC Chairman T Sriranga Rao at the 8^th State Advisory Committee meeting conducted here on Saturday.

Having noticed that there had been instances where licensees and regulated generating companies had failed in filing the petitions within the stipulated timelines in terms of principal regulations, the Commission had notified amendment regulations for levy of penalties for delay in filing the petitions.

The licensees and TGGENCO have not filed petitions for determination of ARR and tariffs within stipulated time as per regulations. In order to inculcate discipline in the licensees and generating companies and also not to burden the consumers without any fault of theirs, the Commission has levied penalties on the licensees and TGGENCO in terms of regulations.

“It is important to understand that the penalty serves a dual purpose—first, it acts as a corrective measure intended to motivate the Discoms to rectify their shortcomings and improve their performance. Secondly, it emphasizes the Commission's role as a vigilant guardian of public interest, ensuring that electricity consumers receive the quality of service they rightfully deserve,” he explained.

Some stakeholders have opined that the time given for filing submissions on all the petitions is up to October 11, 2024 which is not sufficient to study all the petitions, prepare meaningful and purposeful submissions and submit the same to the Commission.

TGERC has scheduled the public hearings on these petitions from October 21 to 25, 2024 thereby having only 12 days' time for the licensees to send their responses to the objectors. As such sufficient time is not there for the objector to study the responses and make submissions in the public hearing.

Failure to issue these orders before the transition could expose the Discoms to considerable financial instability in the future. “If these regulatory measures are postponed, we risk allowing the systemic inefficiencies to persist, leading to aggravated losses for the Discoms and harming the overall sustainability of the electricity supply in the State. Therefore, it becomes imperative that we act decisively to protect the interests of both the Discoms and the consumers they serve,” he said.

Though a few objectors have requested to extend the last date for submission of objections, the Commission has not extended the timelines. It is crucial that these orders are finalized and communicated promptly.

However, recognizing the contribution of the submissions of knowledgeable and interested stakeholders, the Commission has communicated that the stakeholders can submit their objections or comments in the scheduled public hearings and the same will be considered.