The All India Power Engineers Federation (AIPEF) has demanded that the central government should rollback the draft Electricity Amendment Bill 2021 and withdraw its decision to privatize power distribution in all the union territories. The privatization process started in Chandigarh and Dadra Nagar Haveli should also be rolled back.

VK Gupta, Spokesperson of the AIPEF, said that the real objective of the Electricity (Amendment) Bill 2021 is to privatize electricity distribution on the pretext of giving consumers the choice to choose their distributor with a view to getting cheaper and better service. The electricity distribution will become the monopoly of a particular operator selected to distribute electricity in that particular area. The push to privatisation and change in ownership won’t solve any governance or behavioral problems in the power sector.

The Electricity (Amendment) Bill 2021 has been framed as per discussion with industrial lobby and private players to facilitate the privatization of power distribution networks to sell off public assets to private business houses. He further said that the main stakeholders of the power sector namely electricity consumers and electricity employees should be given the proper opportunity to express their viewpoint on the bill before placing it in Parliament.

VK Gupta said that all the non-BJP ruled states are opposing the electricity amendment bill as this encroaches on the state’s jurisdiction and pushes the privatization of the complete power sector.

Telangana Chief Minister has demanded that Prime Minister Narendra Modi should withdraw the Electricity (Amendment) Bill. The Chief Minister asked the central government not to pass the Bill in Parliament.

Kerala Chief Minister said that the center’s move to privatize power distribution would make power unaffordable to vulnerable sections of society. He said the proposed Electricity (Amendment) Bill was an infringement on States’ rights. Power is a concurrent subject and the Centre had piloted the Bill without consulting the States.

Private players in the power sector tend to treat electricity as a commodity that would not meet their social sector obligations such as subsidised power to citizens, he added.

The AIPEF has welcomed the Punjab government’s decision to give a termination notice to GVK thermal plant, Goindwal Sahib, and to renegotiate power purchase agreements (PPAs) with NPL Nabha and TSPL Talwandi Sabo. Gupta said the Punjab assembly also passed the “White Paper on Power Sector” highlighting how the previous government gave additional benefits to private generators at the cost of the state.