With ministers away, Babus get to play

 Author: V V Balakrishna | ENS

Published Date: Jan 24, 2013 8:30 AM

Last Updated: Jan 24, 2013 8:30 AM

With ministers making a beeline for Delhi to lobby for or against bifurcation of the state, governance has been left to babulog in recent weeks. Over the last one week, the usual hustle bustle has been missing in Secretariat.
On Wednesday, the administrative hub of the state was deserted with even chief minister N Kiran Kumar Reddy away in Medak. When he returned, it was to his camp office in Begumpet. His deputy Damodar Rajanarasimha was away visiting the temple in Yadagirigutta. Kanna Lakshminarayana returned from a trip to Shirdi and was off to Delhi. Secondary education minister Parthasarathi was available in Secretariat but only to release a college lecturers’ diary. The absenteeism has affected the pre-budget exercise launched by finance minister Anam Ramanarayana Reddy on Jan. 17.
Meetings were held with the higher education and agriculture departments but then further proceedings had to be put off as ministers rushed away to Delhi, sources said.
According to sources, 10 Telangana ministers and 20 of their Seemandhra counterparts have stayed away from work in the past week. Many ministers have been skipping work on and off in the past few months on the ruse that they have to visit Delhi or participate in the Telangana maneouvres.
“An enormous amount of time and money is being spent on the Telangana issue by these ministers. Things will continue like this until the Centre takes a decision on Telangana. In the absence of ministers, decision making has become difficult. Some bureaucrats are in touch with their ministers on the phone while some have decided to keep matters pending till the return of the minister,’’ an IAS officer told Express.
With the ministers away and the babulog taking it easy, it was leisure time for secretarial staff. Some employees were seen coming to work 11.30 am and then proceeding to engage colleagues in gossip.

ends

Power Tariff Proposals Have Little Whammies Too

Hyderabad: A hefty hike in tariff and a non-telescopic rate card are not the only whammies contained in the power discoms' tariff proposals, which are very likely to be given the green signal with effect from April 1. Several other hard-hitting decisions have been included in the Aggregate Revenue Requirement (ARR) submitted by the discoms to the AP Electricity Regulation Commission (APERC).  The commission placed the ARR in the public domain on Wednesday.
For instance, the penalty for late payment of bills will be hiked from Rs 25 to 45 from April onwards.
Similarly, the cost to serve (CoS) is likely to be increased considerably. In the tariff order for 2012-13, the average CoS approved by APERC was Rs 4.44 per unit. For the ensuing year, it has been estimated to spurt to Rs 5.61 per unit. The discoms' ARR states that "there has been a significant increase in the average CoS during the year and the licensee expects the trend to continue in the ensuing year. The licensee estimates the state-level CoS for 2013-14 to be at Rs 5.61 per unit."
In increasing the tariff burden on the consumer, the discoms cited the usual suspects: power purchase costs and network costs. The ARR says,  "he increase in CoS is due to an increase in both the power purchase cost and the network cost. The power purchase cost approved by APERC for 2012-13 was 3.10 per unit, whereas the licensee estimates the power purchase cost for 2013-14 will be Rs 4.07 per unit."
Interestingly, the discoms kept a door open to appease farmers in the runup to the next general election. In reference to the promise of nine hourse of free power supply to farmers, the discoms said, "The licensee would like to continue with the existing seven hours of power supply to agricultural consumers in 2013-14. The deficit situation is expected to continue in 2013-14 as per current estimates. However, the licensee may submit a supplementary filing to increase the number of hours of supply to agricultural consumers to nine hours during the course of 2013-14 as and when the power situation in the state improves."
The ARR packages the decision to introduce a non-telescopic system of billing as a device to encourage consumers to save power. The discoms said that "a non-telescopic tariff structure will encourage the consumer to consume less to avoid higher tariffs. In addition, the non-telescopic tariff structure would encourage consumers to adopt energy conservation."

GRAPHIC: Customer Charges
The discoms propose to hike the customer charges too

Slab (units)                       Customer Charge (Rs per month)
0-50                                    25
0-100                                  30
0-200                                  35
0-300                                  40
0-500                                  45
0- >500                              45

ends

Expensive LPG, Power Distress Housewives

  By Express News Service - HYDERABAD

07th January 2013 02:42 PM

Hyderabad: Cooking has never been so difficult for the urban middle-class housewives who are living on a knife-edge between LPG cylinders and induction stoves in their kitchenettes.
After the central government's decision to limit the supply of  subsidised gas refills to six in a year, the urban middle-class has to pay the market price of  Rs 950 for each additional gas refill from April.
With the news of withdrawal of subsidy on gas refills, the housewives pinned their hopes on an alternative energy and rushed to their nearest home appliances shop to purchase the latest gadgets like induction cook-tops or electric rice-cookers.
Some of them spent as much as Rs 5,000 on buying induction cook-tops and the vessels used for induction stoves. But, their happiness was short-lived. The state power utilities announced that the non-telescopic billing system would be enforced from April. With this, women are now hesitant to enter kitchens and are in a dilemma whether to use gas or power to cook food, as both are expensive and their supply is unpredictable.
The 2,000 watt induction stove costs anywhere between Rs 4,000 and Rs 5,000. Though some companies lured the public by providing special vessels free of cost, the sale has come down after the power utilities burdened the public with fuel surcharge adjustment (FSA).
"There was a demand for induction stoves some months back. After the hefty power bills, their sales have come down," a dealer in home appliances said.

=====
Discoms to Incur Losses Despite Rs 25,000 Cr Addl Income

Hyderabad: Discoms are all set to impose a burden of  Rs 25,000 on power consumers in the coming year - Rs 13,000 in the form of new tariff and Rs 12,000 as earlier dues of fuel surcharge adjustment (FSA).
However, despite imposing the burden, Discoms are expected to incur huge losses, according to official sources.

PUNCH WITHOUT POWER

Fuel Surcharge Adjustments - Breakdown of `12,000 cr
2008-09  - Rs 1,690 cr
2009-10  - Rs 1,481 cr
2010-11  - Rs 3,957 cr
2011-12  - Rs 2,014 cr
2012-13  - Rs 2,782 cr (two quarters)


Despite the implementation of new tariff from April, Discoms will suffer huge losses.
Projected Revenue Deficit (2013-14):
CPDCL  -  Rs 487 cr
SPDCL  - Rs 2,442 cr
NPDCL -  Rs 1,134 cr
EPDCL -     Rs 51 cr

How Will it Incur Losses? (In crores)
Annual Revenue Requirement (2013-14)            Rs 49,189
Expected Income from Present Tariff             Rs 30,582
Subsidy from Government                          Rs 5,882
Revenue Deficit (Collected Through New Tariff) Rs 12,725

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Increasing Domestic Consumption Leaves Industries Power-starved

Hyderabad: Though power generation across the state has increased, most of the electricity is consumed by the domestic sector, leaving the industries power starved.
This has forced the manufacturing units to purchase power under the Expensive Power Purchase Scheme (EPPS) at `9 or more a unit.
From 2007-08 to 2011-12, the total power generation increased from 62,135 million units to 85,868 million units. For the same period, demand for electricity shot up from 63,135 to 91,663 million units.
Despite the increase in supply, which was not matched by the rise in demand, industries face severe power cuts, due to which most are on the verge of closure.
According to officials, in 2012, domestic consumers used around 18,000 million units of power and the industries, 20,000 million units.
Though a number of industrialists showed an inclination to invest in the state, the grim power situation and EPSS was forcing them to look elsewhere.
Discoms estimate that for 2013-14, the power requirement will be around 1,06,061 million units.
Filling out the Aggregate Revenue Requirement (ARR), the Discoms informed APERC that they would be able to supply around 1,03,535 million units, pinning the deficit at 2,526 million units.
However, experts refute the claim and say the deficit would be a lot more due to non-availability of water, gas and late completion of AP Generation Corporation power plants.



                                  2007-08  2011-12
Total Power Generation     62,135    85,868 mu
Demand for Electricity     63,135    91,663 mu
That is, the demand increased by 44 per cent as against the increase in supply by 38 per cent in the last five years.

 ends

New Billing Method Aims to Curb Domestic Power Consumption

By Express News Service - HYDERABAD

07th January 2013 02:42 PM

 Non-telescopic billing will force consumer to keep an eye on the meter


Hyderabad: The power distribution companies (Discoms) in the state have decided to revert to the earlier system of non-telescopic billing system from April. This will be nothing but an indirect way of compelling the domestic power consumer to save power. In the non-telescopic billing method there will be no slabs. Thus, the consumer will pay more even if he uses one unit of power beyond a particular category.
For example, under the proposed tariff for 2013-14, the Discoms have prepared six categories of billing. The cost of a unit up to 500 units will be Rs 6.50. If a consumer uses just one unit extra then the billing will be made for 501 units. Then, the rate for consumption of more than 500 units will be Rs 7.00. In that way the consumer will end up paying Rs 3,507. If the same consumer used only 500 units he would have paid only Rs 3,250 in that month. It means that if a consumer is not alert and the consumption crosses the 500-unit mark, he has to pay Rs 257 more for usage of one additional unit of power. This will be applicable to all the consumers in all categories under the non-telescopic method.
The power utility has failed in the last six years to argument the generation capacity. On the other hand, the power demand is increasing every day, forcing it to start State-Level Energy Conservation Mission to create awareness in consumers to save power. The power utility's argument is that saving energy means generating power. Every 100 units saved is equivalent to 120 units produced, sources in the energy department said.
Though the Energy Conservation Mission is taking drastic steps to conserve energy and has even adopted a six-point formula recently, the demand for domestic power is not coming down. Though power consumption has been brought down to some extent in government offices, awareness campaigns have shown little impact on domestic consumers.
The Discoms have, therefore, decided to give shock treatment to domestic consumers by reintroducing the non-telescopic billing method. Now, it is the responsibility of every domestic consumer to watch his meter daily to know if he has crossed a particular category or not to avoid  paying a hefty power bill. "After getting one or two months of power bills after April, consumers will understand the problem inherent in the non-telescopic billing method. So, they will be judicious in using power," said the sources.
The power utility has recently wanted 25 million consumers to save energy by using solar water heaters and replacing incandescent lamps with CFL bulbs. The target is to save 10,000-15,000 million units. The hidden part of non-telescopic billing is to compel the consumers to save power.
But, in non-telescopic billing there is a danger of innocent power consumers paying more. If the Discom worker delays noting the meter reading and producing bill by even two or three days, the category of consumer will automatically change. The delay in meter reading will again burden the consumers at no fault of theirs. This may lead to  consumer-employee clashes.

Disadvantages
* Even if a single unit more is consumed beyond a category, the rate  will be higher.
* If meter-reading or bill-serving is delayed even by a couple of days, the category for billing will change. This may lead to arguments and clashes between consumers and employees.

ends

Discoms set to give power shock

By Express News Service - HYDERABAD

06th January 2013 09:34 AM

 Hyderabad: The power distribution companies (discoms) have proposed to deliver a sledgehammer blow on consumers by imposing a burden of around `13,000 crore on various categories of consumers from April 1, 2013.
The discoms have proposed to introduce a non-telescopic billing  system, which is an indirect way of raising the power bills. The present billing system is the telescoping billing system under which consumers pay the tariff as per the slab.
For example, if a consumer uses 150 units of power, they will pay `1.45 per unit for the first 50 units, `2.60 for next 50 units and `3.60 for next 50 units. But under the proposed system, there will not be such slabs and a consumer who uses 150 units, then he/she will have to pay `3.60 for the entire 150 units. Thus a consumer who uses 100 units currently and pays `202.5 as bill, will have to shell out `260 in the next financial year for the same 100 units.
The tariff hike proposal submitted by the discoms to the AP Electricity Regulatory Commission (APERC) on Saturday appears on the face of it to have spared the poor and the lower middle class. But the introduction of the non-telescopic billing methos would ensure that they too would have to spend more.
In the Aggregate Revenue Requirement (ARRs) for the year 2013-14 that was submitted to the APERC, the discom officials said that the cost to service per unit is around `5.25 per unit. The discoms are expecting a revenue deficit of `18,000 crore for the next fiscal. However, with the government subsidy to the tune of `5,000 crore, the discoms are left with a `13,000 crore deficit, which they want to impose on the consumers.
The officials of AP Transco and other discoms were in touch with chief minister N Kiran Kumar Reddy during the last three days and he is reported to have given them a go-ahead for all proposals. The state government, however, does not intend to change its policy of supplying free power to agriculture consumers.

GRAPHIC
Proposed tariff under non-telescopic billing system

Category: LT Domestic
0-50 units: `1.45
0-100 units: `2.60
0-200 units: `5.65
0-300 units: `6.15
0-500 units: `6.50
Above 500 units: `7.00

Category: LT Commercial
0-50 units: `5.40
51-100 units: `7.35
Above 100 units: `8.35

Category: Industry
All units: 5.37

Existing tariffs under telescopic method

Category: LT Domestic
0-50 units: `1.45
51-100 units: `2.60
101-200 units: `3.60
201-300 units: `5.75
301-500 units: `7.25

Category: Commercial
0-50 units: `3.85
51-100 units: `6.00
Above 100 units: `7.00

Category: Industry General
All units: `4.80

CBI fear drives babulog to law school

Many IAS officers are back to studies to deal better with their cases

 By VV Balakrishna -  

05th January 2013 08:41 AM

 Hyderabad: Arrest of IAS officers BP Acharya and Y Srilakshmi did throw the bureaucracy in Andhra Pradesh into a tizzy. Many were left wondering: "Who next?" and that fear continues to haunt some.
Though arrests cannot be prevented when the time comes, a sound knowledge of the nitty-gritty of law can always come in handy.
The after effects of the arrest of state's top bureaucrats has led a number of babulog to pursue law courses, and quite seriously at that.
The latest to enrol for law classes are Manmohan Singh and B Sam Bob, both of whom have been served notices by the Supreme Court for issuing controversial GOs during the tenure of YS Rajasekhara Reddy.
Government sources told Express that with the CBI going tough on babus over the last couple of years, several IAS officers decided to study law.
Though it is not uncommon for IAS officers to pursue further studies, with many choosing to go abroad for it and some opting for distance education or evening colleges, Sam Bob (principal secretary, municipal administration) and Manmohan Singh (principal secretary, animal husbandry) joined a three-year LLB course at Mahatma Gandhi Law College.
"I have been attending classes for the last one month. The classes are held from 8 am to 10 am and again from 6 pm to 8 pm," Manmohan Singh told Express.
The senior IAS officer said the course would help him understand if the counsel engaged by him was arguing his case effectively before the Supreme Court.
"Though I may not be able to defend myself in the court even if I complete my law course, it would help me understand the approach of my counsel. Even a High Court advocate engages some other lawyer while facing cases," Manmohan Singh said.
Another IAS officer, who did not wish to be quoted, said IAS officers should have a sound knowledge of law. "Iam sure had Srilakshmi or Acharya were well-versed with law, they would have been in an advantageous position," he said.
Manmohan Singh, however, explained that as an IAS officer, he had to invariably refer to legal position frequently on various issues. "This way, the law course will also be of help in discharging official duties," he said.
The general administration department has already issued orders permitting Singh and Bob to study LLB.
Among the IAS officers facing cases are: CVSK Sarma, SV Prasad, Y Srilakshmi, B Sam Bob, K Ratna Prabha, Adityanath Das, P Samuel and Manmohan Singh.
"Some more in our fraternity are also keen to pursue law studies. We may see more bureaucrats studying law shortly. Then, we will not require legal advice on every matter we deal with in the government," said a senior IAS officer.
Many feel that IAS officers should understand tender agreement rules, law of contracts and other subjects, which would be easier if one studies law.


QUOTE
If I complete my law course, it would help me understand the approach of my counsel.-- Manmohan Singh, principal secretary (animal husbandry)

BOX:

SC NOTICES
The Supreme Court had slapped notices on six ministers and eight IAS officers in the state for issuing 26 controversial GOs during YS Rajasekhara Reddy regime, which allegedly helped YS Jagan Mohan Reddy to amass disproportionate assets. Of them, Manmohan Singh and B Sam Bob are pursuing LLB. The IAS officers filed counter affidavits before the apex court recently, stating that they followed the due procedure and issued GOs without any motive to benefit any individual.