Power engineers oppose revised electricity amendment bill

Posted On : November 17, 2018

Patiala: Engineers of state electricity boards from across the country have come out against the revised draft of the Electricity Amendment Bill enabling private operators to supply power to consumers in their areas. The bill is likely to be tabled in the winter session of Parliament next month.

All India Power Engineers’ Federation (AIPEF) submitted comments on the bill to Union minister of state for power R K Singh, demanding that the revised draft be sent back to the standing committee and the Federation be given a hearing to present its viewpoint. The federation also said states should be allowed to submit their views before the committee as electricity is a concurrent subject.

Addressing the EIPEF meeting, Federation chairman Shailendra Dubey said changes have been proposed in the draft bill to pave the way for privatization of the power sector. Under the bill, he said, supply licensees will mostly be from the private sector, which will get assured profit by way of guaranteed return on capital employed and by stipulating that they will get their expenses covered without revenue gap. The changes proposed in the tariff policy are to encourage privatization and ensure guaranteed profits to private parties.

Theoretically, the bill provides for more than one service operator to supply power to a consumer in one distribution area. This, the government hopes, will give consumers the option of changing their power supply company or utility, based on their service efficiency.

Federation spokesperson V K Gupta said most state distribution companies (Discoms) in the country are facing financial distress and this is not the right time to introduce changes by separating supply and distribution functions. Gupta said this will worsen the financial crisis.

The Federation has expressed serious concern over changes proposed in the Bill as it will concentrate all power in the electricity sector with the Centre. Members fear this will lead to complete privatization of power distribution in India.

During a seminar on electricity amendment bill held in Bhopal earlier this month, speakers said complete privatization is being considered even after the failure of privatization and franchise system in the power sector. They said this not good for the country and consumers.