The Union power ministry has written a letter to the chief secretary and the additional chief secretary (energy) of Uttar Pradesh on the issue of the power distribution networkThe 33 kv system power distribution network in Uttar Pradesh, like in other states, may soon be merged with the transmission network under a joint venture (JV) with POWERGRID, a Central government entity, with a view to curtailing high distribution losses and improving services, a senior official aware of the issue said.“The Union power ministry has written a letter to the chief secretary and the additional chief secretary (energy) asking them to take steps to ensure that the discoms hand over the 33 kv system to the state transmission utility (STU),” the official said.

The 33 kv substation systems are distribution substations that take electricity from transmission substations and then supply the same to the end consumers after stepping down the high voltage to a safe level.

The letter written by joint secretary (transmission) Mritunjay Kumar Narayan on August 2 says that while the sub-transmission system plays an important role as in interface between the distribution and the transmission systems and is critical for reliable power supply, sub-transmission system (distribution network) is beset with the problem of higher losses and inefficient performance.The letter refers to a high-level committee constituted under the chairman and managing director, POWERGRID, sometime back. The committee, according to it, recommended, among other things, bringing 33 kv distribution system under the state transmission utility for improvement of performance of 33 kv networks, including robust planning.

The state governments, as per the letter, have been asked to facilitate handing over of 33 kv substations to state transmission utility (STU) in a phased manner, provide financial assistance to the state transmission utility for upgrading and modernising their 33 kv assets.

“In the event, the state government is not in a position to provide financial assistance to the STU, then the STU can be asked to form a JV (joint venture) with the POWERGRID on 50:50 equity basis for moblising their financial resources,” the letter said.

Power employees have claimed the move is nothing, but part of the larger design aimed to hand over the distribution system to private players.

“Bringing the 33 kv system under transmission and forming a joint venture company with POWERGRID is encroachment of the Central government on a state subject and the move is aimed to finish government discoms to facilitate private suppliers,” said Shailendra Dubey, chairman of the All India Power Engineers’ Federation.

Forming JV with POWERGRID, he claimed, would be the beginning of end of both state transmission utilities as well state discoms.

“Electricity (Amendment) Bill 2021 has a provision that seeks to de-license the power distribution activity and allow multiple private companies to supply electricity in any area using the network of government discoms. After formation of JV company, this network will also be snatched from the state discoms,” he said.