Power Min to issue norms for ailing utilities

The Ministry of Power is working on a set of guidelines to help state electricity boards (SEBs) cut their losses, estimated at a cumulative Rs 68,000 crore. The guidelines would be ready in 2-3 months and include improvement in collection and billing efficiencies of distribution companies, long-term PPAs, where supply and price could be ensured, and power purchase planning that can help keep the costs down. In 2010-11, average rates rose 6.5 per cent, while the cost of supply increased by 16.5 per cent in the period. Cash losses of SEBs and discoms, at Rs 28,400 crore, have jumped 4.4 times in the past three years.