The Lok Sabha Bulletin indicates the list of Bills to be considered in the Winter Session of Parliament, starting 29 Nov. One of the Bills is the Electricity (Amendment) Bill 2021 . All India Power Engineers Federation (AIPEF) , a body of Power Engineers of the Country , seeks to bring to your urgent attention that in formulating the Electricity ( Amendment ) Bill 2021 the Power Ministry has not complied with the provisions of Pre-Legislative Consultation Policy (PLCP) which was circulated by your ministry to all Secretaries to the Government of India through DO Letter 11(35)/2013-L.1 dated 05 Feb 2014 . The Pre Legislative Consultation Policy was based on decisions taken in the meeting of the Committee of Secretaries held on 10 Jan 2014 under the Chairmanship of Cabinet Secretary . Copy of DO as well as Decisions of 10-Jan 2014 is at Annex 1.
2. The details of how the procedure adopted for Electricity (Amendment) Bill 2021 differed with and contradicted the PLCP Policy of 05-02-2014 are summarized as under .
2.1 The PLCP requires that draft legislation should be proactively published both on the internet and by other means which was not done/implemented by the Ministry of Power. MoP issued a letter (Annex 2) dated 05 Feb 2021 . This letter , containing the proposed amendments to Electricity Act 2003 was addressed only to the Energy/Electricity departments of State Govts and UTs and was not published through the website.
2.2 Since the Bill 2021 seeks to amend the Electricity Act 2003 it affects/impacts all electricity consumers of the country including Generators, Transmission licensees , Distribution companies ( State as well as Private), Private sector IPPs, IPPs in field of renewable and non conventional energy, Distribution Franchisees, Pvt sector Transmission Licensees. The most significant stakeholders have been missed out viz electricity consumers- domestic, Agricultural, Commercial, Industrial, and captive power producers, and electricity workers and engineers in the power sector . In view of the comprehensive coverage and scope of proposed legislation it was absolutely necessary to have put the draft legislation on the website of the Power Ministry for at least 30 days .
2.3 The draft legislation as per letter of 05 Feb 2021 , required that States should give their comments within 2 weeks , which is a clear non compliance of PLCP.
2.4 The PLCP requires that the draft Bill 2021 should include brief justification, essential elements , broad financial implication , and an estimated assessment of the impact of such legislation on environment, fundamental rights, lives and livelihoods of the concerned /affected people. None of these essential parameters of PLCP ( vide para 2 of Decision dt 10-Jan 2014) have been complied with/addressed while finalizing the Electricity (Amendment) Bill 2021.
2.5 The original legislation viz Electricity Act 2003 was based on the Statement of Objects and Reasons , which is a part and parcel of the Electricity Act 2003. It is clear that when there is an amendment to be made in the original Act ie Electricity Act 2003 the amendments must be suitably explained through a Statement of Objects and Reasons. Para 2 of PLCP explains precisely what is contained in the Statement of Objects and reasons of Electricity Act 2003. There is a clear parallel between the Statement of Objects and Reasons of Electricity Act 2003 and the provisions contained in PLCP para 2 . The relevant portion of Statement of Objects and Reasons of Electricity Act 2003 is quoted
Accordingly, it became necessary to enact a new legislation for regulating the electricity supply industry in the country which would replace the existing laws, preserve its core features other than those relating to the mandatory existence of the State Electricity Board and the responsibilities of the State Government and the State Electricity Board with respect to regulating licensees. There is also a need to provide for newer concepts like power trading and open access. There is also a need to obviate the requirement of each State Government to pass its own Reforms Act. The Bill has progressive features and endeavours to strike the right balance given the current realities of the power sector in India. It gives the State enough flexibility to develop their power sector in the manner they consider appropriate. The Electricity Bill, 2001 has been finalized after extensive discussions and consultations with the States and all other stakeholders and experts.
2.6 The above quoted Statement is a part of Electricity Act 2003 i.e. it is a Statute. This Statute has given the principle
The Electricity Bill, 2001 has been finalized after extensive discussions and consultations with the States and all other stakeholders and experts.
Extensive discussions were necessary not only with States but also with
all other stakeholders particularly power employees , engineers and experts.
2.7 The Electricity (Amendment) Bill 2021 does not adopt the principle already contained in Statute and also it fails to adopt the directions and principles contained in the PLCP. The forwarding letter of the Amendment Bill i.e. Letter dt 05 Feb 2021 (Annex 2) gives 2 weeks for States to respond ie by 19 Feb. However, the Ministry of Power ( even before expiry of 2 weeks) issued a notice on 10 Feb 2021 for a videoconference with the States on 17 Feb . Thus while giving inadequate time ( two weeks only) the MoP rushed to hold a video conference on 17 Feb i.e. 12 days after notice of 05 Feb.
2.8 Even the video conference was rushed through on 17 Feb wherein the States/UTs were given extremely limited time as the time slots in videoconference were limited.
North Zone with 10 States/UTs was given a slot of 1 hour
West Zone with 7 States was given 1 hour
South Zone with 7 States was given 1 Hour
East andNorth East with 12 States was given 1 hour.
In the above video conference , as per MoP documents the participation was limited to State/UTs while all other stakeholders were excluded.
2.9 While PLCP ( para 6) the direction is that feedback/comments must be put on the website of the Ministry . This has not been complied with, wrt Electricity (Amendment) Bill 2021. A RTI Application was submitted to the Ministry of Power on 15-11-2021 seeking a copy of comments/objections/suggestions submitted by specific stakeholders ( including States, IPPS, and Private Sector Discoms) with request to send the information by e-mail. The requisite information under RTI has not yet been received.
2.10 Vide para 10 of PLCP the summary of Electricity (Amendment ) Bill 2021 should have been placed before the Standing Committee on Energy of Parliament. Para 10 of PLCP , when applied to Electricity (Amendment) Bill 2021 , makes it mandatory that the Bill must be placed before the Standing Committee on Energy. The purpose of para 10 of PLCP is evident that broad based discussion wherein members of the Standing Committee can participate, must be ensured . Even if the Bill 2021 is tabled, the para 10 of PLCP makes it mandatory to refer the Bill to the standing Committee on Energy.
2.11 Para 8 of PLCP makes it compulsory for the Ministry of Power to refer the draft Bill to the Ministry of Law and Justice GOI, which has to ensure that the provisions of PLCP have been correctly complied with.
2.12 In a previous instance the Electricity (Amendment) Bill 2014 , Bill No 191-2014 was referred to the Standing Committee on Energy . This is a clear precedent that the (Amendment) Bill of 2021 must similarly be referred to the Standing Committee ( after ensuring that all the provisions of PLCP have been duly complied with.
2.13 The State and Central Electricity Regulatory Commissions are important Stakeholders with key roles assigned under Electricity Act 2003 . Further on major changes of Policy the SERC have a mandatory role to advise States. The draft bill dated 05 Feb 2021 has two specific points, one relating to SERCs and other related to APTEL. These important stakeholders should not have been ignored/bypassed in pre legislative consultation. Comments and suggestions were necessary to have been obtained /considered from these stakeholders dealing with Regulation and APTEL whereas MoPower does not recognize these statutory authorities as stakeholders.
Conclusion: The Electricity (Amendment) Bill 2021 in its present form does not meet the provisions and requirements of Pre legislative Consultation Policy (PLCP) on multiple counts as stated above. On this account alone the bill deserves to be withdrawn and referred back to the Ministry of Power for ensuring the true compliance, in letter and spirit of the PLCP. The present Bill is based on restricted and incomplete feedback from the majority of stakeholders who have been simply ignored from giving their inputs/comments . The most important element in pre legislative consultation process – broad based inputs and consultations from all stakeholders- has been derailed at the outset itself when MoP , vide its letter 05 Feb 2021 (annex-1) excluded the majority of stakeholders while the Electricity Act 2003 and its amendments impacts all categories of electricity stakeholders. Due to this derailment of the process occurring at the very first step the entire process has become vitiated , further as it is violative of PLCP. In fact, the PLCP mandates public participation and involvement of all stakeholders as seen in Paras 1 and 2 of PLCP. AIPEF accordingly requests the Law Ministry to intervene and assert the authority and relevance of PLCP which must not be allowed to remain on paper.
The DO Letter dated 05 Feb 2014 of Law Ministry by which the PLCP was circulated to all Secretaries to Govt of India concludes as under with the statement
The details of such legislative process are given in the Appendix to facilitate systematic compliance and adherence with the policy so laid down.It is requested that the Policy document be given wide publicity in your Ministry/Department for strict adherence.