BHUBANESWAR: Voicing concern over some of the proposed amendments in Electricity Act, 2003, Chief Minister Naveen Patnaik on Tuesday exhorted regulators of State Electricity Regulatory Commissions to make valuable recommendations to the Centre keeping the State and consumer interest in mind.

Addressing the 65th meeting of the Forum of Regulators, a body comprising chairpersons of Central and State Electricity Regulatory Commissions, Naveen said electricity is in the concurrent list and the views of the state governments should be given due importance.

“Some of the proposed amendments in the Electricity Act, 2003 are not in conformity with the federal structure of our country. I am sure, such issues will be discussed in detail in this meeting and the forum will bring out valuable recommendations in greater public interest,” the Chief Minister said.

Several states, including Odisha, have been opposing the proposal to phase out cross subsidy, which will mean that power tariff for domestic consumers will be the same as that of commercial and industrial units.
The draft amendment proposes that cross subsidy paid to different category of consumers will be reduced progressively and eliminated within a period of three years. This is a policy matter of each state to decide, informed sources said.

Further, any subsidy payable to consumers will be through direct benefit transfer. The same will apply if the Centre decides to give subsidy under any government schemes.Sources said the tariff policy proposed in the draft amended will make CERC and SERCs subservient to policy dictates of the Centre. The regulators will no longer be independent and insulate them from intervention of state governments.

Vehemently opposing the proposed amendment, All India Power Engineers Federation (AIPEF) urged the states to raise their voices against the new law.

Noting that the power sector in Odisha has seen accelerated development in the last two decades, the Chief Minister said power generation, transmission and distribution systems have been expanded and upgraded to meet the increasing demand and sustain the accelerated economic growth.

The Chief Minister invited power regulators to visit Make in Odisha conclave to witness the socio-economic growth of the State. “The positive investment climate in Odisha provides immense opportunity for all sectors of industry including electricity. Please pay a visit to the conclave and witness the socio-economic growth taking place in the State,” he said.