Only climate change no criteria for shutting thermal plants - AIPEF Feb 10, 2020

Posted On : April 10, 2020

All India Power Engineers Federation ( AIPEF) demanded that the climate change
criterion should not be made the sole basis for shutting down or retiring the
state thermal unit capacity.

AIPEF in its executive meeting held on Sunday discussed the problems faced by the power sector particularly shutting down of thermal units and proposals regarding smart metering and consumer the choice to pave way for the complete prioritization of the power sector.
The meeting was chaired by Shailendra Dubey and addressed by Padamjit Singh Chief  Patron,, Rathnakar Rao  Secretary-General, Ashok Rao and other state constituents office bearers.
Padamjit Singh said that the integration of existing thermal units with the target of renewable energy capacity addition needs to be further studied in view of the enhanced target of 450 GW renewable capacity by 2030 and the commitment of India to achieve 40% capacity through renewable sources. Until and unless the revised study is carried out and completed,  based on the higher target,
 no further action for shutting down state thermal units should be taken, on the basis of the climate change norms. Since the country is well within the renewable capacity target of 40%, the climate change criterion should not be made the sole basis for shutting down or retiring the state thermal unit capacity.
The government must declare a time-bound action plan for enhancing the utilization of hydropower capacity and pumped storage power capacity presently lying unutilized.

 Shailendra Dubey termed  the energy sector proposals in the Union Budget as
 ‘anti-people’ and aimed at benefitting big industrial houses and  the
Federation would firmly oppose such a move. The proposals regarding smart metering and consumer choice should be kept on hold and more so because
electricity being a concurrent subject on such matters, the central  government cannot make proposals as if it is a central subject and these issues should be under a concurrent provision wherein the state has equal jurisdiction.
There was wrong the conception that introducing consumer choice and
competition would benefit consumers with lower energy costs.

V K Gupta Spokesperson said that there is a clear provision for 1 MW and
above consumers to select the supplier of their choice anywhere in the
country through open access. The cross-subsidy surcharge was introduced
to protect the incumbent Discom from financial loss. So, even when under
the existing act practically it has not succeeded. The government should examine that when consumer choice has not succeeded for 1 MW and above cases,
how it can be expected to succeed when extended to other consumers below 1 MW.
Ashok Rao said that the old thermal power stations provide the cheapest source of electricity. After these plants are shut, the power distribution companies
 would be compelled to procure costly electricity from private producers and
pass on the increased tariff burden to the consumers.

It was also decided that all employees  across India plan will be on protesting
 against the Budget proposals and in support of Bihar states Engineers Association  General Secretary suspension due to demonstration against privatization on January 27. on Tuesday.

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  5. All India Power Engineers Federation on Tuesday condemned the central government''s move to amend the National Electricity Policy "to facilitate privatisation". According to a statement by the AIPEF, the proposed changes require extensive discussions as such time for submission of comments should be six months. When fundamental changes are being introduced by way of privatization of the power sector, there is no basis to rush through more so under extreme distress caused by the COVID-19 pandemic, it said. "All India Power Engineers Federation (AIPEF) condemns the government of India''s move to amend the National Electricity Policy to facilitate the privatization of the power sector," the statement said. The body alleged that this is a clear attempt to introduce privatization through the backdoor and deserves to be scrapped. The purpose of the central government is not to review or revise the existing National Electricity Policy but the total replacement of existing policy with a new policy to be recommended by the expert group so as to achieve privatization, the body alleged. As per Electricity Act 2003, National Electricity Policy is to be prepared in consultation with the state governments and Central Electricity Authority (CEA), a statutory body. However, the body said that the CEA is not included in the proposed schedule of discussion. Further, only 5 states have been included in an expert group instead of all the states, it added. K Subramanian, Chief Economic Adviser, has stated that India is the only country that readily implemented a slew of reforms and used this crisis to herald a change in India''s economic thinking, it said. The strategy of government seems to be “never waste a crisis” and use the crisis of pandemic to streamroll so-called reforms by way of privatizing, it alleged. The draft proposal is of serious nature for which the present situation of a pandemic is a serious constraint, it stated. The Ministry of Power has once again found peak pandemic time as an opportunity in crisis to launch the draft amendments to National Electricity Policy, it lamented. Once the draft policy is finalised, the notified policy would have the status of “subordinate legislation”, and for this reason, the matters need to deliberate as in the case of the legislation itself or as in the case of amendment in the Act itself, it opined. Draft national electricity policy is pushing for more private participation in the power sector and launching sell out of public assets as at Chandigarh and Dadra Nagar Haveli, it noted. The preferred route being suggested are failed models like the franchisee system, transferring distribution responsibility to a private party, and separation of carriage (lines) and content (supply) business, it opined. Since the existing Policy is in force since February 2005 there was no emergency to totally replace it, while power engineers and workers as front line workers are already stressed in maintaining power continuity, it added All India Power Engineers Federation on Tuesday condemned the central government''s move to amend the National Electricity Policy "to facilitate privatisation". According to a statement by the AIPEF, the proposed changes require extensive discussions as such time for submission of comments should be six months. When fundamental changes are being introduced by way of privatization of the power sector, there is no basis to rush through more so under extreme distress caused by the COVID-19 pandemic, it said. "All India Power Engineers Federation (AIPEF) condemns the government of India''s move to amend the National Electricity Policy to facilitate the privatization of the power sector," the statement said. The body alleged that this is a clear attempt to introduce privatization through the backdoor and deserves to be scrapped. The purpose of the central government is not to review or revise the existing National Electricity Policy but the total replacement of existing policy with a new policy to be recommended by the expert group so as to achieve privatization, the body alleged. As per Electricity Act 2003, National Electricity Policy is to be prepared in consultation with the state governments and Central Electricity Authority (CEA), a statutory body. However, the body said that the CEA is not included in the proposed schedule of discussion. Further, only 5 states have been included in an expert group instead of all the states, it added. K Subramanian, Chief Economic Adviser, has stated that India is the only country that readily implemented a slew of reforms and used this crisis to herald a change in India''s economic thinking, it said. The strategy of government seems to be “never waste a crisis” and use the crisis of pandemic to streamroll so-called reforms by way of privatizing, it alleged. The draft proposal is of serious nature for which the present situation of a pandemic is a serious constraint, it stated. The Ministry of Power has once again found peak pandemic time as an opportunity in crisis to launch the draft amendments to National Electricity Policy, it lamented. Once the draft policy is finalised, the notified policy would have the status of “subordinate legislation”, and for this reason, the matters need to deliberate as in the case of the legislation itself or as in the case of amendment in the Act itself, it opined. Draft national electricity policy is pushing for more private participation in the power sector and launching sell out of public assets as at Chandigarh and Dadra Nagar Haveli, it noted. The preferred route being suggested are failed models like the franchisee system, transferring distribution responsibility to a private party, and separation of carriage (lines) and content (supply) business, it opined. Since the existing Policy is in force since February 2005 there was no emergency to totally replace it, while power engineers and workers as front line workers are already stressed in maintaining power continuity, it added