ARANASI: All India Power Engineers’ Federation (AIPEF) has demanded review of energy policy with the aim of integrating unbundled power utilities and restoration of old pension scheme. 

The Federal Executive of the AIPEF was held today  in Varanasi and was attended by the representatives of 20 states. The meeting was addressed by Shalinder Dubey Chairman , Padamjit Singh Chief Patron , K Ashok Rao, Rathnakar Rao  and others. 

V K Gupta Spokesperson of Federation informed that AIPEF has  resolved that high-powered committee with representatives’ of all stakeholders including common consumers and power engineers/employees be set up    to review the present situation. This is very critical since a new Government would be taking over shortly and it would be prudent to resolve some of the long standing problems. The most critical of these is the review of the impact of the Electricity Act, 2003 and attempt to further amend it with the intention to facilitate privatisation of power supply by segregating carriage & content. 

Shaliender Dubey Chairman said that  the power supply industry, which is vital for the survival of all other sectors of the economy, is in deep crisis. On the one hand is the indiscriminate change of legislation and policy resulting in the entry of private sector in both power sector and coal mining, opened the floodgates to indiscriminate privatization. This has resulted in the present problem of stranded assets in both the sectors. Sixty five percent of investment in the private thermal power plant has resulted in becoming stressed assets. There is serious danger of about 3 to 4 lakh of Rupees of public funds in the form of bank NPAs the loans being jeopardised and its deleterious impact on country’s financial institutions. 

Padamjit singh said that in order to resolve this crisis, Discoms  are being forced to enter into power purchase agreements (PPAs) that in turn will result in huge losses. The net result would be that the losses and stress will be shifted from the private to the public sector.  All this would result in increase in consumer tariffs. Even at present, the lack of purchasing capacity is restraining universal electrification.  Cost of electricity needs to be rationalized through reducing the cost of electricity not merely through increased subsidies. Cost reduction should be brought through standardization, higher productivity, energy efficiency and reducing the intermediary organisations between production and consumption

Rathnakar Rao Secretary General said that another critical area is the evaluation of the consequences of unbundling creating multiple organisations resulting in needless and avoidable confusion, increase in costs and litigation. Another area of concern is the removal or diluting regulatory functions of the Central Electricity Authority (CEA). 

While there is a need to give thrust to renewable energy particularly due to reduction in the cost of generation and concerns of climate change. However the thrust and tempo of new and renewable energy should ensure that solar energy does not result in grid instability and wasteful investment in transmission. Further, the lack of hydro power to match the  solar power plants would make ensuring grid stability a serious problem.