No.48 -2020 / Amendments to Electricity Act 2003           13 - 06- 2020

Sri Narendra Modi

Hon'ble Prime Minister

Govt of India

New Delhi

  Sub: An appeal to Honorable Prime Minister to put Electricity (Amendment) Bill 2020 on hold   

 Respected Sir,

         The draft amendments to Electricity Act 2003 i.e Electricity (Amendment) Bill 2020 had been put up on the Ministry of Power website for comments and suggestions for which objections and comments were to be submitted by 05 June. The All India Power Engineers Federation (AIPEF) has obtained feedback that a large number of States have raised serious objections that the amendments are against the spirit of federal structure of the power sector based on constitutional provision of power being a concurrent subject. The amendments seek to erode the working of Regulatory Commissions and dictate on issues of tariff, DBT, subsidy, Electricity Tribunal ECEA, Payment security issues etc  which are clearly in purview of State policy. 

2. Under such circumstances it is requested that the highly controversial Electricity (Amendment) Bill 2020 must be withdrawn, particularly as a substantial number of States namely Tamilnadu, Telangana, Andhra Pradesh, Maharashtra, Kerala, Chhattisgarh,West Bengal, Bihar, Jharkhand & Puducherry have already expressed their strong objections. These would certainly require extended discussion and debate in both houses of Parliament which would not be possible under constraints of virtual participation.  It makes it all the more necessary and urgent that the Bill must be referred to the Standing Committee on energy so that States and Stakeholders including consumer organisations and Employee /Engineers Associations/Federations  can submit their objections in detail. It is stressed that when the Electricity Act 2003 was first discussed and debated at length with participation of all Stakeholders before enactment, then the proposed Amendments to Electricity Act 2003 surely deserve  to be similarly discussed and debated, which has not been ensured up to now.

3. AIPEF submits that the issues contained in draft amendments are far too draconian to be rushed through and certainly deserve the detailed feedback from the States who hold a concurrent Status under the Constitution. Several of the issues are clearly a tilt towards privatization, which need to be removed. While the Electricity Act 2003 was based on Electricity Bill 2001 which was finalised after extensive discussions with all States and stakeholders, the present amendments  have been summarily proposed without any discussion with States. The Amendments are further based on the agenda of privatisation which is not justified for a key infrastructure such as electricity.

4. In view of the fact that a large number of States have strongly objected to the draft amendments and pointed out the conflict with the Constitution, we suggest that the Electricity (Amendment) Bill 2020 should be withdrawn.  In case the Union government wants some changes in Electricity Act 2003, these must be extensively discussed first with States, Stakeholders including Consumers & employees/engineers so that their concerns are adequately  incorporated.  This would be in the spirit of democratic functioning within the Constitutional framework of a Federal structure. 

Thank you with regards.

Sincerely Yours

Shailendra Dubey

Chairman