May 2009

Taking a cue from its counterparts in Delhi and Mumbai, the state government is toying with the idea of handing over distribution of
power to private parties on a franchise basis. Currently, electricity supply companies (escoms like Bescom in Bangalore) do it.

"We are studying the Delhi and Mumbai models where private parties have been given franchises to distribute power. We propose to adopt such a model as part of power sector reforms,'' a senior energy department official said.

The move is seen as a bid to ensure better power supply at the consumer end and better revenue realization. "Once it's implemented, consumers will get uninterrupted power and it'll also lead to quicker repair of faults," the official claimed.

According to sources in the energy sector, the franchisee will purchase power from the state government (Karnataka Power Corporation) and sell it to consumers and will strengthen and maintain the distribution network. This system will not only address consumers' grievances but will also cut down the massive power pilferage, pegged at 22-27%.