All India Power Engineers Federation (AIPEF) wants to draw your attention towards a proposal to amend Electricity Act 2003 through Electricity (Amendment) Bill 2021. On 17/04/2020 the Ministry of Power had put on its website the draft Electricity (Amendment) Bill 2020 containing proposals for amendment of Electricity Act 2003. Comments were invited to be submitted within 21 days and later the date was extended to 5th June. This draft contained the statement of objects and reasons.
2. However, while the final outcome of the Electricity (Amendment) Bill 2020 is not known, now in early February 2021 a new version, Electricity (Amendment) Bill 2021 had started circulating through net / electronic media, but the authority which issued the new draft is not known, and neither is the outcome of earlier bill 2020 known.
2.1 On 6th February an article appeared in Business Standard wherein reference has been made to the Bill, which has been reviewed by Business Standard. However, the paper has not maintained the source or authority or website from which the copy of bill was obtained and reviewed.
2.2 On 10/02/2021 there was an article by Ex-Chairman CERC Dr. Pramod Deo with the opening para starting.
“The Power Ministry has circulated a draft Electricity Amendment Bill proposing Amendments to the Electricity Act………:
2.3 From newspaper reports it would appear that some Bill 2021 has been circulated to the press, while ex-Chairman Central Electricity Regulatory Commission Dr. Pramod Deo has made the categorical statement that the Power Ministry has circulated it.
3. Queries by the All India Power Engineers Federation (AIPEF) from several sources did not succeed in identifying the source or authority that issued the Bill 2021.
4. It is evident that while in case of Electricity (Amendment) Bill 2020 of 17/04/2020 the same was put on public domain the same day and Ministry invited comments/ suggestions, in case of Electricity (Amendment) Bill 2021 there is non-transparency and secrecy about the source/ authority and further there does not seem to be any statement of objects and reasons.
5. Considering that comments to Bill 2020 were sent as early as June the Ministry of Power held a power minster’s conference on 03 July 2020. Para 4 of the minutes states as under.
“4. The Hon'ble Union Minister stated that the draft Electricity (Amendment) Bill 2020has been proposed keeping in mind the best interest of the public at large. The Bill attempts to address the issues of solvency of the power sector. Maintaining sanctity of contracts, strengthening the Appellate Tribunal and promoting growth of renewable and hydro power are some of the other major objectives that the Bill seeks to achieve. He emphasized that the Bill will be finalized after consultations with all concerned. The conference was also part of the consultative process. In view of the comments received, some proposals with regard to a single selection committee for the Electricity Regulatory Commissions and DBT are proposed to be modified. He invited suggestions from the participants on the draft Bill”.
6. There is a clear commitment that the Bill 2020 will be finalized after consultation with all concerned.
7. By contrast to the procedure of Electricity (Amendment) Bill 2020, in case of Electricity (Amendment) Bill 2021 a totally contrasting procedure has been adopted.
· Bill not put on Ministry of Power website
· No statement of objects and reasons
· Comments / suggestions from stakeholders not invited.
· Procedure of selective / calculated leak of contents to press by which stakeholders do not get full or complete access to the document/bill, and only the version / reporting of press is available.
8. A number of RTI applications were filed before the power ministry relating to the earlier bill of 17/4/2020, which were refused / rejected by the Ministry. Therefore transparency is a major casualty in case of the Bill 2020, and the secrecy/non transparency prevails among stakeholders who filed objections in response to the Ministry of Power notice of 17/4/2020. In the case of the 2021 bill the Govt. of India seems to have gone one step further by not putting the bill in public domain at all.
9. Recently, a notice dated 10th February was issued by the Ministry of Power to state/ UT govt. and CMDs of Discoms regarding a video conference with subjects relating to consumer choice, member/ law in ERCs, APTEL strengthening and RPO.
There is no explanatory memorandum or statement of objects / reasons in the notice of 10th February.
The stakeholders for VC of 17the February are limited to state Govts., UTs and CMDs of Discoms only.
10. If indeed it is the intention of Govt. of India to proceed with some draft amendments then the following requirements must be ensured.
a) Transparency by putting documents on the website, with statements of objects and reasons.
b) Giving adequate opportunity for all stakeholders to submit comments / objections.
c) Giving hearing to all concerned stakeholders.
11. The present approach of the Ministry of Power is non transparent and secretive, more so with recent bad experience of RTI applications to earlier bill 2020 being stonewalled and rejected. Non transparency is a poison for open and fair governance, and a denial of principles contained in RTI Act. It also indicates that the Govt. is trying to hide / keep secret critical facts.
12. If at all Govt. of India is intending to proceed with the Electricity Amendment Bill 2020 or Electricity Amendment Bill 2021 the following matters must be ensured.
a) Putting bill on website
b) Giving all stakeholders ample opportunity to give their views / comments/ objections.
13. We consider that any exercise to Electricity Act 2003 would be futile and pointless unless all stakeholders are duly consulted. The tentative list of important stakeholder is
- All consumers, including agricultural
- All Associations/ Unions of Employees & Engineers
- NGO/Expert groups such as TERI, PRAAS,
- IITs, IIMs
- NITI AAYOG and CEA
- All regulators, CERC SERCs, APTEL
- Forum of Regulators
- Bar Councils/ Associations of Advocates
- Consumers Associations, RWAs etc.
14. As per Electricity Act 2003, CEA has statutory duty to advise the Central Govt. u/s 73 (a) which is the most important one crucial for the national economy. This function / duty of CEA must not be bypassed by Govt. of India.
15. Under Section 86 of Electricity Act 2003 the SERCs have statutory obligation to discharge the functions as listed. Therefore if the Ministry of Power / Govt. of India intends to discuss specific points will state Govts., then state Govts. Must be given time and opportunity to discuss with SERCs as required under section 86 (2).
16. Under Section 88 (i) the State Advisory Committee has to advise state govt. on major questions of policy. This Opportunity must be given.
CONCLUSION:-
To conclude, we stress that we have brought to the notice of the Govt. the important omissions and discrepancies in the approach adopted by the Ministry of Power in matters of Electricity Amendment Bill , as a part of our duty and obligations to uphold public interests. We suggest the Govt. of India may take the following steps.
a) To withdraw the Electricity (Amendment) Bill 2020 which was put on the website of the Ministry of Power on 17/04/2020.
b) To take a policy decision to adopt transparency and open functioning on any matter relating to amendment of Electricity Act.
c) That Govt. of India policy of en-mass privatisation of power distribution should be discarded.
d) The reported matters in the Electricity (Amendment) Bill 2021 are un-authenticated and deserve to be discarded, particularly as they tantamount to introducing drastic policy of separating carriage and content which was earlier
rejected by as many as 20 states.
e) The proposal to have a video conference on 17/02/2021 is a step to apply short cut and rush through amendments without due consideration or deliberation. As a first step, whatever proposal Govt. of India may have must be put on public domain and all stakeholders be given a fair opportunity to submit their views and comments. As already stated, state Govts. are not the only stakeholders.
With Regards.
Sincerely Yours
Shailendra Dubey
Chairman