THIRUVANANTHAPURAM :  Electricity Minister M M Mani on Wednesday called for a concerted effort to oppose the Draft Electricity (Amendment) Act, 2018, which, he said, was inimical to the larger interests of the public and would lead to a hike in power tariffs. Inaugurating a workshop on the draft organised by the Kerala State Electricity Board (KSEB), he said that the Left Government would strongly object to the provisions of the proposed amendments. “On the whole, the Draft Electricity (Amendment) Act, 2018, signals exploitation. The Act, essentially, is beneficial to the high-end consumers and displays no concern for the poor,” he said. 

Former chairman of the KSEB and the State Electricity Regulatory Commission T M Manoharan urged the state to consider framing a piece of legislation which does not conflict with Central laws to protect its interests. He also advised the KSEB to enhance its efficiency to take on the competition from private players. 

“The idea should be to develop the KSEB as a successful model,” he said. Manoharan said the draft presented has both pros and cons, but it would be undesirable to allow the power sector to go from the public sector to the private sector. The KSEB organised the workshop in the wake of the Centre seeking the opinion of the state on the Draft Electricity (Amendment) Act, 2018. 

It is a proposed amendment to the Electricity Act, 2003. The Electricity (Amendment) Bill, 2014, was introduced in Parliament in December 2014. It was referred to the standing committee on energy which submitted its report in May 2015. Thereafter the Centre decided on further consultation with the states. 

As opposed to the amendments proposed in 2014, the latest proposals do recommend separation of carriage and content in power distribution but has deleted the mandatory clause. It addresses the possibility of ‘cherry-picking’ by private players to an extent.

It recommends the elimination of cross-subsidy within three years but states that the Central or state governments can subsidise poorer consumer sections through direct benefit transfer (DBT). Sops to the consumers include assured 24x7 power supply, compensation from underperforming licensees and reduction in the time limit for getting power connections.KSEB chairman and managing director N S Pillai presided over the function.

Elimination of cross subsidy
It recommends the elimination of cross-subsidy within three years but states that the Central or state governments can subsidise poorer consumer sections through direct benefit transfer (DBT).