CHANDIGARH: All India Power Engineers Federation (AIPEF) has demanded discussion on proposed changes in the Electricity (amendment) bill before putting it in Parliament for discussion.

Union Power Minister has informed on June 18 that the draft Electricity Act is likely to be circulated for comments this week, provides for separation of distribution infrastructure ownership from power supply licenses and penalties for load shedding.
As per available information the amended draft bill has not been received in any state. The draft bill must be put on Power Ministry’ website so that fruitful discussion can take place.
V K Gupta Spokesperson AIPEF said that basically, the government will lay down the wires that carry the electricity up to the consumer, while private companies will sell the electricity. This is intended to separate out the more profitable aspects of distribution that can then easily be taken over by the private players.
Gupta further said that under the proposed amendments, the financial condition of incumbent state licensee as well as the government-owned intermediary company would become unsustainable from the very beginning and the purpose of the Bill will be defeated. The transmission and distribution losses are high; most of the Discoms are facing acute financial losses and reeling under loans. The government should conduct a detailed study on the aftermath of the implementation of the Electricity Act, 2003

Power Sector is facing an uphill task in ensuring financial viability to the Discoms as surplus base load capacity is leading to payment of fixed charges running into thousand of cores of rupees by the distribution companies.

Once the bill is passed the Discoms will be stranded with excess capacities and huge losses and sufferers of this fallout will be mostly small and rural consumers with serious implications for state level politics. These consumers will have to pay higher tariffs and poor supply quality.