NIPEF opposes privitisation of power distribution

NIPEF opposes privitisation of power distribution
Sunday November 16 2014

Northern India Power Engineers Federation (NIPEF) has opposed tooth & nail the proposed decision of Government of India for complete privatizing the power distribution by way of proposed concept of multiple supply licensees in power distribution system by bringing the suitable amendments in Electricity Act, 2003.

Federal executive committee meeting of Northern India Power Engineers Federation (NIPEF) was held today and was presided over by Sh R.S Dhaiya Chairman & Er. Bhupinder Singh Secretary General, NIPEF, Er Padam Jeet Sing Chief Pattern, Er Suneel Grover Sr. Vice Chairman, Er A. K. Jain and Er V.K Gupta from All India Power Engineers Federation Engineers (AIPEF), representative from HP, Punjab, Haryana, UP, Utrakhand, Rajsthan and Delhi participated in the meeting.
It was resolved to oppose the proposed amendment to Electricity Act 2003 which is being introduced in parliament shortly by which the power supply function to consumers is being separated out from the power utility meaning thereby ‘content’ & ‘carriage’ of electricity shall be by two licensees as this will hit the poor/middle income consumers & the distribution utilities the most. Under this amendment, supply licensees will use the distribution network of the state power utility to give supply directly to identified consumers. With this proposal, the creamy layer or high end consumers would be taken away from the distribution company and this would increase the financial losses of the utilities while giving huge profits to the supply licensees. The AT& C losses of power utilities will rise further giving a financial blow to power utilities. The maintenance and upkeep of the wires business and distribution network would be adversely affected which would make the quality of power supply worse. To add to worries of consumers further, he shall have to have contract with two licensees for getting electricity to his premises.

It was further decided that the development of power generation in each state should be mainly in the state sector and NIPEF strongly opposes the present trend whereby state governments are putting more emphasis on private sector generation projects. In case of Punjab the three private sector thermal stations at Rajpura, Talwandi Sabo and Goindwal Sahib would cause the domination of electricity supply by the private parties to the disadvantage of state generating stations which would have to be backed down so as to allow full load generation of private sector plants. Uttrakhand & Himachal Pradesh engineers demanded allotment of more projects to State Utilites.

Also NIPEF stressed that every State should take proactive measures to control Distribution losses and theft of electricity. In Punjab the low cost measures adopted by using pillar boxes had proved successful in reducing losses and thefts, bringing losses down from 23 % to about 17-18 %. In Himachal Pradesh also through meticulous planning & execution of task of T&D reduction by Power Engineers the losses have been brought down fear 28% in 2002-03 top about 14% by the end of March,2014. These low cost measures should be adopted in other States as per their local condition. These measures will also eliminate political interference in checking thefts.
NIPEF demands that the CAG audit of all private sector Discoms should be rigorously carried out and for efficient management of power sector the Board managements must comprise competent and upright professionals with fixed tenure.

NIPEF resolved that electricity regulators across the country need to play a proactive role as true watch dogs of consumers as well as electricity supply utilities rather than playing in the hands of State Government/ GoI or Private Players. The tariff being provided in most cases are not commensurate with Annual; Revenue Requirements (ARRs) of the utilities even to carter for their basis cost leaving these utilities with practical no funds for developmental activities.


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