All India Power Engineers Federation (AIPEF) has demanded that a cap on profiteering by private power generators (IPPs) must be put in place by the regulators to stop exploiting shortage of electricity by raising the rate to the range of Rs 20 per unit, said V K Gupta Spokesperson AIPEF.

Padamjit Singh Chief Patron AIPEF said that they have written a letter to Union Power Minister R K Singh has urged that under section 62 (a) of Electricity Act 2003 the appropriate Commission has been empowered to fix minimum and maximum limits or ceiling under shortage conditions. A meeting of the Forum of Regulators be held immediately to discuss the issue threadbare and to stop black marketing of electricity in future.

it was necessary for state regulators as well as CERC to intervene and impose price caps to prevent excessive profiteering by IPPs and also to ensure that the unbearable burden is not put on consumers of Discoms.

The profiteering by IPPs goes against the letter and spirit of Electricity Act 2003 section 61 (d) "Safeguarding of consumer interest and at the same time recovery of the cost of electricity in a reasonable manner” V K Gupta said that since coal shortage is recognized as a major factor causing a hike in power rates, the power ministry must stress for ending future coal shortages otherwise, the results of 2021 would repeat.

Like in the United Kingdom where Ofgem continue to regulate the prices and quality standards of electricity suppliers until they consider that competition is sufficient to meet their principal statutory objective of protecting the interests of consumers, having regard to their other duties including the protection of vulnerable groups. On the similar lines, it is necessary for regulators to protect consumer interest by imposing price caps.

AIPEF has also expressed its concern about the closure of ultra mega power plants of Tata and Adani at Mundra which are run by imported coal and have nothing to do with the present coal crisis in the country .