Cooperative-based distribution model mooted for power supply to farmers in Rajasthan

GS Paper III

News Excerpt:

A dialogue on systemic issues of poor electricity supply faced by the farmers in Rajasthan has recommended the establishment of a farmers’ cooperative-based distribution model with the regulatory viability under the Electricity Act, 2003.

About CEEP:

  • CEEP is a Jaipur-based human-centric research  and policy advocacy institution, which has undertaken critical research and fostered democratic coalitions for low carbon transition and climate justice. 
  • It works at the intersection of energy, environment and people to enable institutional response, investments and political shift towards clean energy and sustainable practices.

More about News:

  • The dialogue was organized by the Centre for Energy, Environment and People (CEEP) as part of the ‘Vidyut Samvad’ series. 
  • The participants made an attempt to understand the complexities of electricity supply and discussed the technical and financial solutions in the power sector through a study of the Chandan area in Jaisalmer district.

Challenges faced by Farmers:

  • The Farmer’s Union president of chandan village highlighted the farmer’s challenges
    • The typical block supply duration in the rural area was barely four hours against the mandate of six hours. 
    • The voltage fluctuations often led to malfunctioning of irrigation motors and transformers, 
    • The loss of crops and increased cost of farming because of this was a major concern among the agriculturists.
  • Over 60 participants from Rajasthan and other States and a panel of experts voiced different perspectives and highlighted the ground realities as well as the technical and regulatory challenges. 

Expert Suggestion and Perspective:

  • The experts discussed the possible pathways to address the issue of poor quality of electricity supplied to the agricultural consumers.
  • CEEP’s founder said the dialogue tried to evolve consensus for resolving various issues, while considering the steps needed to bridge the gaps in the power distribution infrastructure. 
    • The panel of experts also discussed the role of solar and energy-efficient pumps for irrigation in the agricultural fields.
    • India's cooperative model has yielded success stories, such as the Anakapalle

(Case Study) Rural Electric Society in Andhra Pradesh. 

  • Founded in 1974, it took over distribution and maintenance from the state electricity board in 1976. Within 30 years, it achieved 100% electrification in its areas, became debt-free, and operated profitably.

As entrusted by the Electricity Act, 2003 the Commission has the responsibility to discharge the following functions:-

Mandatory Functions:-

  • to regulate the tariff of generating companies owned or controlled by the Central Government;.
  • to regulate the tariff of generating companies other than those owned or controlled by the Central Government specified in clause (a), if such generating companies enter into or otherwise have a composite scheme for generation and sale of electricity in more than one State;
  • to regulate the inter-State transmission of electricity ;
  • to determine tariff for inter-State transmission of electricity;
  • to issue licences to persons 
  • to function as transmission licensee and electricity trader with respect to their inter-State operations;
  • Improve access to information for all stakeholders.
  • to adjudicate upon disputes involving generating companies or transmission licensee in regard to matters connected with clauses (a) to (d) above and to refer any dispute for arbitration;
  • to levy fees for the purposes of the Act;
  • to specify Grid Code having regard to Grid Standards;to specify and enforce the standards with respect to quality, continuity and reliability of service by licensees;
  • to fix the trading margin in the inter-State trading of electricity, if considered, necessary;
  • to discharge such other functions as may be assigned under the Act.

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