Correct Option
The correct option is 1 and 3 only.
Explanation
State Electricity Boards (SEBs) were originally constituted under the Electricity (Supply) Act, 1948, to manage the generation, transmission, and distribution of electricity within states. Following the Electricity Act, 2003, many SEBs were unbundled into separate generation, transmission, and distribution companies (DISCOMs), though they remain the primary entities responsible for power delivery to end consumers.
Statement-wise Analysis
- Statement 1 is Correct: SEBs (or their successor DISCOMs) are the principal agencies responsible for the distribution of electricity to residential, commercial, agricultural, and industrial consumers. They act as the interface between the power sector and the end-user.
- Statement 2 is Incorrect: The financial health of SEBs has been a critical concern in the Indian power sector. Instead of recording consistent surplus profits, most SEBs have suffered from chronic financial deficits and accumulated heavy debts. This financial distress necessitated major reform schemes like the Ujwal DISCOM Assurance Yojana (UDAY) to address their liabilities.
- Statement 3 is Correct: A significant portion of the financial losses incurred by SEBs is attributed to Aggregate Technical and Commercial (AT&C) losses. Commercial losses specifically include electricity theft (pilferage), metering inefficiencies, and non-recovery of billed amounts. Theft remains a major challenge affecting the revenue sustainability of these boards.
Key Takeaway
Key Takeaway: The distribution segment, managed by SEBs/DISCOMs, is the weakest link in the Indian power sector value chain, primarily due to high AT&C losses caused by electricity theft, tariff gaps, and operational inefficiencies.