Power department incurs revenue loss of about INR 300 crore annually
KOHIMA — To address the annual 50 per cent loss of revenue in the power sector, Nagaland State Assembly on Thursday deliberated on power sector reforms by reviewing the communitisation of electricity management in urban and rural areas under the Nagaland Communitisation of Public Institution and Services Act, 2002.
Nagaland Chief Minister, Neiphiu Rio, observed there is an urgent need to revisit the communisation of electricity management and pointed out that the state has to mend its ways to improve not only in power sector but in many other sectors.
The Power department was reported to be incurring annual revenue loss of about INR 300 crore. The reasons attributed by the department included power theft, pilferages shortage of manpower like meter readers and shortage of operations and maintenance (OM) staff.
Absence of meter reading led to under-billing as nearly 50% of the monthly billing is based on minimum average.
Communitisation of electricity management in villages is based on average minimum bills and single point metering as consumer metering is non-existent in all villages, Rio said.
He stated that the state cabinet has decided to introduce compulsory pre-paid and smart metering in the urban areas and surrounding villages and to cut off connection if the consumers do not cooperate.
"Due to faster urbanisation, there is not much difference in lifestyle and usage of energy-intensive appliances between urban and rural areas. If the present trend of increased power demand/consumption continues, the communitised villages will be one of the major contributors for huge accumulated losses to the state in terms of revenue," Rio said.
The chief minister also pointed out that desired progress could not be made in the installation of smart meters in Dimapur, the commercial hub, due to resistance from various NGOs, GBs and chairmen of wards and colonies.
“The biggest challenge now arises for 100% smart metering coverage across the state under the RDSS scheme. Although the state cabinet has approved the RDSS Action Plan in totality, implementing of smart metering is becoming a challenge to the department due to resistance by GBs and chairmen,” he added.
Rio further informed that compulsory pre-paid and smart metering installation in rural areas was put on hold because sensitisation among the rural areas has to be first undertaken.
To this, he appealed to the church to take the responsibility of senstising members to pay for what they use.
Payment of power bills does not only apply to urban dwellers but also includes elected members, VIPs, officers and government servants residing in government quarters. They have to pay for what they consume, the chief minister added.
Rio said the proposed reforms measures are much needed in supplying quality and uninterrupted power supply to the domestic and industrial consumers.
"It is important to help this department to recoup its operating cost/expenditures from its consumers to ensure stable, quality, affordable power supply so as to leverage all-round -economic growth and infrastructural developmental activities in the state," he insisted.
Kenye lists power reform measures
Initiating the discussion on power reform measures, Power minister, KG Kenye, has recommended for repealing in totality the communitisation of electricity management in urban areas and the model rules and the additional condition of supply for Urban Electricity Management Board (UEMB) 2004.
The minister also suggested that the SPM be replaced by smart metering of distribution transformers for online energy accounting and audit of villages: all electricity connections of the households/consumers in the villages will be converted to 100% smart metering and operated on post-paid mode.
“Billing of consumers shall be carried out by the department through the IT billing system and served to the VEMBs for bill delivery to the households/consumers and collection of revenue to be deposited to respective sub -divisional office of the department,” Kenye said.
Acute shortage of, meter readers, OM staff
The minister informed that there is shortage of meter readers with only 305 existing meter readers against a minumum requirement of 691 to cover the total consumers of INR 3.17 lakh.
Kenye also disclosed that there is acute shortage of OM staff in the department with only 3808 existing staffers against a requirement of 6186 as per OM norms.
Out of the state’s total energy consumption of 804.57 MU (2023-24), the rural villages consume nearly 25% i.e. about 201.14 MU of electricity. With proper Shock Pulse Method (SPM) metering, the department should be billing INR 112.64 crore (Appox.). Whereas, the total billed units in 1408 villages (VEMBs) is only 58 MU amounting to INR 30.1 crore, he said.
Advisors including Hekani Jakhalu, H Sethrongkyu Sangtam and NPF MLAs namely Achumbemo Kikon and Nuklutoshi, NCP (AP) MLA Picto Shohe and
BJP legislator, Tovihoto Ayemi, also participated in the discussion.