Joint Electricity Regulatory Commission , Government of Mizoram, India

JOINT ELECTRICITY REGULATORY COMMISSION

FOR MANIPUR AND MIZORAM

AIZAWL : : : MIZORAM

D-31, M.G.Road, Upper Khatla

Aizawl,Mizoram-796001

Tel. No. : 0389-2310623

Fax: 0389-2301299

Website: www.jerc.mizoram.gov.in

Email: jerc.mm@gmail.com

NO.H.11019/16/09-JERC Dated Aizawl, the 27^th August, 2010.

MINUTES OF THE 4^th MEETING OF THE STATE ADVISORY COMMITTEE FOR THE STATE OF MANIPUR HELD ON 18^th AUGUST, 2010

AT HOTEL CLASSIC, NORTH AOC, IMPHAL

The 4^th Meeting of the State Advisory Committee (SAC) for the State of Manipur was convened by the Joint Electricity Regulatory Commission for Manipur and Mizoram at the Classic Hotel, North AOC, Imphal on Wednesday, 18^th August, 2010. Shri H. Bihari Singh, the Chairperson of the JERC for M & M who is also the Chairman of the SAC, presided over the meeting. A list of members of the State Advisory Committee and Special Invitees who attended the meeting is given in the Annexure.

Inaugurating the important session which definitely aims at improving the performance of the service provider (Electricity Department) and also the relationship between consumers and the service provider, Shri H. Bihari Singh, Chairman of the Committee, extended a warm welcome to all the Members and Special Invitees present in the meeting and took up each of the agenda for deliberations and recommendations of the Members.

Agenda 1: Confirmation of the Minutes of the 3^rd State Advisory Committee Meeting.

After obtaining nod from the members, the Chairman declared that the minutes of the 3^rd SAC Meeting stand confirmed without any change.

Before the 2^nd Agenda was taken up for detailed discussion, the Committee considered the request of the Electricity Department and allowed it to offer to the Committee, the Power Point Presentation highlighting the facts and figures of the Department including its ongoing activities and initiatives for the development of the power sector.

In its presentation the Department made a deliberate attempt to cover all the present power scenarios and future plans. Some of the important burning issues facing by the Department in maintaining Power Supply are as given below:

1. Shortage of Staff – as a result of retirement and non-appointment against vacant posts over the last couple of years.

2. Weak Interstate Transmission line – failure to maintain Leimatak, Jiribam Transmission line.

3. High aggregate Technical and Commercial loss of 70% - lack of accountability and non-cooperation from the consumers.

4. Uncontrolled rampant theft of energy.

After giving patient hearing to the Chief Engineer (Power) who made the presentation, Shri H. Bihari Singh, Chairman, SAC expressed concern over the line constraint in the Leimatak-Jiribam 132 KV line which did not permit the State to draw power as and when required and therefore, emphasized the need for early restoration of the line at all cost. The Chairman also informed the Department to make all out efforts including Demand Side Management, to reduce the AT&C loss rate.

The Principal Secretary (Power) informed the Committee that the Consumers have apparently forgotten that the Electricity Department is a Commercial Department. He strongly advocated that the mind set of the consumers needs to be changed with a view to reducing the AT&C loss which is as high as 70%. The high AT&C loss has left the Department in a vicious circle and as a result, it has not been allowed to propose for purchase of more power from other source - the Principal Secretary added.

Shri S. Rishikumar Singh, representing the All Manipur Entrepreneurs’ Association, expressed willingness to suggest and share responsibility with the Department in finding out ways and means for realising revenues from the consumers. He suggested for one time settlement of outstanding bills for improvement of revenue collection. On his query on peak requirement for 100% household electrification by 2012 and future plan for bringing power, Chief Engineer (Power) clarified that these factors are already considered and planned.

Agenda 2: Rural Electrification

The Department was hopeful that the electrification of virgin, de-electrified, habitations and intensifications in the State numbering around 1600 would be completed by March, 2012. The villages of Chandel and Tamenglong will be electrified by December, 2010, Imphal, Thoubal, Churachandpur and Bishenpur by December, 2011 and the rest i.e. Senapati & Ukhrul by March, 2012.

However, the Chairman and other Committee members could not buy it, considering the pace of progress made on rural electrification over the last couple of years. Therefore, it was suggested that the Department should come up with monitorable schemewise construction schedules which is self explanatory and convincing in all respects.

Agenda 3: Household Connection

As per the records available, more than 52% of the 3.88 lakh households in the State are yet to be electrified. All the members were of the opinion that the actual number of households not yet electrified would be much less than 52%. Most of the households in the thickly populated areas of the State are already connected to electricity. The high percentage of the unelectrified households may be due to non-registration only. The members therefore suggested that the Department should take up appropriate measures to regularise maximum number of households to where electricity is already connected. In addition the Deptt shall invite for application of new household connections through wide publication in the local news papers.

Agenda 4: Generation

Shri S. Chaothoi Singh, President, Manipur Industries Union, reiterated that, all kinds of assistance – technical & Financial, would be available from the Japanese Government if a proposal is suitably made from the State Government side in this regard. A copy of the letter from the Japan International Cooperation Agency, Government of Japan addressed to Mr. S. Chaothoi intimating their willingness to help the State is enclosed. The Committee members welcomed the offer and recommended for preparation of DPR and approach for assistance through proper channel.

The Department apprised the Committee of the status of the two Hydro Electric Projects i.e. Loktak Down Stream HE Project (2x33 MW) and Tipaimukh HE (Multi) Project (6x250 MW) which would be taken up under joint venture led by NHPC with a major share in each. The Committee found that even though it is slow, both are moving in the right direction.

The Committee therefore, expressed the desire that the State Government assures all possible contributions from its end and insists both the Central Government and the NHPC on early implementation of the projects to avoid further delay.

The members recommended that Department should gear up the detailed Survey & Investigation works of other feasible sites so that DPRs can be prepared early and pose proposals to appropriate authorities for any kind of support. The State Government should also have a clear policy to produce/ generate power from the available hydro power potential.

Agenda 5: Purchase of Power

The Chairman expressed reservation on early completion of the power projects at Bongaigaon and Palatana and the associated 400 KV lines for evacuation of power, and therefore, wanted to know from the Department the arrangement being made to meet the growing demand till the above system is ready and made available to the State.

In reply, the Chief Engineer (Power) asserted that the Department is becoming a member of Indian Energy Exchange, New Delhi soon and with that, it will be permitted to purchase power directly from the Grid according to the demand of the State. The Committee recommended that State Government should move the Central Government for more allocation during the off peak hours to mitigate the immediate deficit.

Agenda 6: Metering

The Committee felt that performance of the Department in respect of Metering, which is the first and foremost step to be taken in the loss reduction programme, leaves much to be desired. All the Central Government schemes designed particularly for providing meters and introducing energy audit in the Distribution System are several years old now. However, the Department has not been making headway towards the successful completion of the project. Even, a tentative date for completion cannot be fixed because of the prevailing working atmosphere in the State. The Electricity Department however has fixed target for 100% metering by March, 2010. It would be tantamount to saying that the target fixed by the Department for metering lacks clarity and ignores the rise in AT&C loss – Committee observed.

The Chairman urged the Department to prepare a revised target taking into consideration the completion schedule of the Central and other State schemes and complete the installation of Meters at both the feeders and the consumers on priority.

Agenda 7: Un-authorised Consumers

Un-authorised consumption of electricity causes various problems for both consumers and the service provider.

The Chairman felt that more than 20% of the AT&C loss are attributed to un-metered consumption by un-authorised consumers who are already enjoying power supply through illegal means. The Chairman observed that the number of registered consumers must be much more than the present figure available with the Department and therefore, emphasized the need for early detection and subsequent registration (of un-authorised consumers) possibly with the help of clubs, voluntary organisations and womens’ organisations. Announcement in the local news papers and electronic media may also be made for voluntary declaration by unauthorised consumers for regularization of their connections without penalty.

To start with, the Committee decided to give three months time to Electrical Circle-I (Imphal) to identify the number of un-authorised consumers in its jurisdiction. Other circles also would follow the same path to identify un-authorised consumers in their jurisdiction.

Pu C. Hmingthanzuala, IAS (Retd.), Member, JERC informed the Committee that when the supply is poor because of large consumption by un-authorised consumers, the ideal consumers get annoyed. Secondly, the un-authorised consumers who do not have paying habit, discourage the ideal consumers who use to pay electricity Bills regularly. Therefore, the Member stressed the need for making all suitable efforts by the utility to see that the ideal consumers do not feel neglected but come to the utility’s side alongwith other consumers and also to ensure equitable distribution of power among the consumers. The Member also referred to the clauses laid down in this regard in the Regulations on “Citizens Charter” and “Grievance Redressal Forum” and informed the Department to publicise it in a big way for drawing awareness of more consumers.

Agenda 8: Renewable Energy Development

The Director, MANIREDA explained briefly about the activities of the Agency in its endeavour to supply renewable energy to different kinds of consumers particularly that of remote areas in the State. The Director also narrated the Wind and Solar Power schemes of different capacities which are taken up in the State for lighting purpose with the financial assistance from MNRE, Government of India. These beneficiary schemes, even though the energy injected/ consumed cannot be metered/ measured practically, contribute largely to energy demand of the consumers.

Under a special scheme, Solar Street lighting systems, which have been well received by the consumers located at distant places where Grid Supply is very irregular, shall be installed in other small towns, nagar panchayats, public places and police outpost etc. A 50 KW Solar Power Plant is also proposed for installation at Sainik School Imphal. The Agency is also contemplating to install 400 nos. of Solar Power Plants of 1 KW each at suitable locations in the State.

The Director also informed the Committee that the R & M of Gelnel MH Plant (2x200 KW) is already completed and now ready for commercial testing and operation. Similarly, another small power plant – Chadong MH Plant (2x12.5 KW) is also ready for similar operation. However, the Agency could not operate it in the absence of transmission and distribution network to be provided by the State Electricity Department.

The Chief Engineer (Power) expressed his reservation on the re-electrification of Gelnel and its adjoining villages as a PIL is in force in the selection of the executing agencies (contractor) of approved schemes for electrification for these villages. There is also no other facility for transmission of the Gelnel power outside the area.

Participating in the discussion, Shri N. Shyamsundar Singh, Chief (Engineering), JERC drew the attention of the Committee to the fact that the Gelnel MH Plant (2x200 KW), which was originally constructed and owned by the Electricity Department was partly transferred to the MANIREDA as per the State Policy which stipulates that SHPs having capacity upto 25 MW shall be taken by MANIREDA. The agency has to enter into an agreement with buyers for purchase of power (PPA) from this project. No PPA has been signed till date, either with Electricity Department or any other third party in the State.

The Chief (Engineering) went on to add that MANIREDA has not paid a single paise to the Department at the time of temporary transfer of the Plant and the Plant is still looked after by a few staffs of the Department. Therefore, the Plant still remains a property of the Department.

Pu C. Hmingthanzuala, IAS (Retd.), Member, JERC felt that there has been lack of co-ordination between the Agency and the Department and therefore, expressed the desire to address the issues jointly in the interest of consumers keeping in view particularly the scarcity of power in the State.

The Chairman, after taking note of different pleas, advised the Chief Engineer (Power) to treat Genel as an area beyond the purview of the litigation (if village land is not involved in it) and make necessary arrangement to purchase and consume the power from this plant in the consumers interest. Possibility of making a new scheme under State plan may be examined in consultation with Government. PPA with the Electricity Department needs to be signed at the earliest.

Director, MANIREDA made it clear that the Department is not structured adequately. The Committee felt the need of strengthening MANIREDA to develop RE generations in the State and fulfil its obligation. The present level of generation from the RE sources is limited to small demonstration projects only and even a single grid grade generation has not been developed. MANIREDA should expand its performance in bigger projects and contribute its share in meeting power demand of the State.

The meeting ended at 2:00 pm with vote of thanks to the chair.

Sd/- H. Bihari Singh

Chairman, SAC

Memo No.H.11019/16/09-JERC : Dated Aizawl, the 27^th August, 2010.

Copy to:

PS to Hon’ble Minister, (Power), Govt. of Manipur, Imphal for kind information of the Hon’ble Minister.
PPS to Chief Secretary, Govt. of Manipur, Imphal for kind information of the Chief Secretary.
PS to Principal Secretary (Power), Govt. of Manipur for information and necessary action of the Principal Secretary.
All Members/Special Invitees of the State Advisory Committee of Manipur for kind information and necessary action.
Guard File.

(RICHARD ZOTHANKIMA)

Assistant Secretary

Joint Electricity Regulatory Commission

For Manipur & Mizoram.

List of Members and Invitees Present in the 4^th Meeting of the State Advisory Committee for the State of Maniupur held on 18^th August, 2010, Imphal.

A. Members: