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1.3.2 Privately Owned DISCOMs

Оглавление

In this case, the ownership of the distribution lies with a private company. As a measure of private participation and introducing competition, the following steps were implemented:

 More than two licensees were allowed to sell power in the same area.

 Provision was made for different tariff rates based on different technical factors like load demand, voltage demand, power factor, etc.

 Licensees were allowed to do other business required for optimal utilization of assets but with prior permission.

The relative concerns with this model are:

 The private companies started running the power distribution business without bothering government norms and provisions.

 They failed to protect consumer interests.

 The tariff rate was high.

 They faced political resistance as privatization is not welcome in public services.

 The number of consumer protests increased.

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