Electricity is a concurrent subject, and the distribution of electricity is handled by the states and state distribution utilities. In the Budget speech of year 2020-21, Government have informed Parliament that it would take measures to improve the viability of Distribution Companies (DISCOMs), and also that the Ministry of Power intends to promote smart metering. Decisions have also been taken in the Government to incentivize and enable states to undertake effective DISCOM reforms; and link central sector schemes to institutional reforms. However, no new scheme regarding the above has been approved yet.
While the distribution utilities in Haryana have turned around under UDAY, some utilities have not been able to adhere to the reform paths envisaged under UDAY. The reasons for the same include tariffs not being reflective of costs; inadequate budgeting of subsidies; high aggregate technical and commercial (AT&C) losses etc. States have been advised to clear their Government Department dues and ensure monthly clearance of the same; put in place a strict system of energy accounting; ensure timely payment of subsidy every month; begin a campaign to reduce AT&C losses; and conversion of all consumer meters into smart prepaid meters/prepaid meters in a period of 3 years.