These were the common views expressed by industry experts, representatives of various electricity regulatory commissions, and government officials at a seminar on `SEB Reforms' organised by the Independent Power Producers Associations of India (IPPAI) here on Monday.

Addressing the gathering, Maharashtra State Electricity Regulatory Commission (MSERC) chaiorman P Subramanyam said the tariff-determination process shouls be transparent. He called for an open discussion on the proposed increase in the power tariff by the Maharashtra State Electricity Board (MSEB). Subramnayam said political will was necessary to implement reforms.

Corroborating this, MSERC member (finance) Venkat A Chary said it is important to know the cost of generation. Chary said the regulatory mechanism should be temporary and, subsequently, the tariff should be determined directly by market forces.

IPPAI director general Harry Dhaul said an honest intention to implement the reforms was important. The aim should be to provide quality power at the cheapest cost to the consumers.

On the reforms process, BSES--the Mumbai-based power utility--chairman and managing director RV Shahi said each state should develop a model to suit its own need, consumer base, and the industry's problems.

"While Orissa has set an excellent example of power-sector reforms, the fruits of which would be seen in the years to come, it may not be an ideal pattern for another state which has a different consumer profile and geographical and resource bindings," he said. Joint secretary, energy and petrochemicals department, Gujarat, Sanjay Gupta said there are still some gray areas in policies concerning the energy sector and also some issues which need to be sorted out. In many states, power policy and the policies which may affect the development of the sector, like fuel policy and guidelines for investment and returns, are still being evolved, said Gupta.

Unless there are firm policies and regulations for the sector, private investment will not come, he added. Absence of these would also increase the investment risk, Gupta said.Sharing the experience of Haryana, Haryana State Electricity Commission chairman VS Ailawadi said if the role of the commissions is to offer sufficient and good quality of power at a competitive price, they should be allowed to address all the issues which may help in achieving the objective.

"If a commission feels that the SEB buys expansive power in spite of cheaper power being available, it should have the right to examine the situation in order to rectify the problem," he said. If required, the commission should even be allowed to review the deals committed by the SEBs, Ailawadi said. Without this, the commission will have limitation in setting up the right tariff, he added.

Speaking on the high cost of electricity, CITU (Maharashtra)--a non-government organisation--secretary Vivek C Monteiro said being a basic requirement for domestic and industrial consumers, electricity is a sensitive commodity. Hence, its pricing needs additional cau-tion.

Citing the example of Dabhol Power Company set up by Enron Corporation of the US, he said the power company has been committed a higher price of power by MSEB for a 20-year period, which has put the electricity board in severe financial difficulties. According to him, the states should also conduct unbiased examination of the demand and supply situation.