NCCOEEE demands CAG audit of private power sector companies
V K Gupta
February 2nd, 2014
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NCCOEEE demands CAG audit of private power sector companies
Sunday February 2 2014
New Delhi
National Co-ordination Committee of Electricity Employees & Engineers (NCCOEEE) has demanded that audit by CAG should be carried out for private sector distribution companies ,distribution franchisees and private sector generation companies.
The meeting welcomed the Delhi government’s decision to go for CAG audit of Delhi Discoms. Shaliender Dubey Secretary General All India Power Engineers Federation (AIPEF) said that Delhi Government should not succumb to blackmailing tactics of Delhi Discoms. The audit is warranted for all private sector companies in power sector since public/ consumers are directly impacted are suffering on account of high tariff.
The meeting was chaired by A B Bardhan Convener of Committee and attended by Padamjit Singh Chairman AIPEF, Shaliender Dubey Secretary General AIPEF, K O Habib, V Ashok Kumar and Chakardhar Parshad Singh and other leaders.
It was concluded in the meeting that Electricity Act 2003 has failed to achieve its objective of affordable and adequate power to all. While privatization of distribution sector has failed, de-licensing of generation has resulted in unscrupulous companies exploiting the consumers for securing undue profits; introduction of franchisee system in power distribution has resulted in widespread corruption which has adversely impacted the power consumers.
The introduction of franchisee system has introduced has resulted in scams and undue profit to franchisee companies at the cost of state Discoms and ultimately common consumer is suffering.
The proposed amendment to Electricity Act 2003 enabling private sector parties to enter as suppliers of electricity using the network and common wires of state distributing utility will further burden the consumers with higher tariffs. The financial health of state utilities will deteriorate further. The amendment to Electricity Act should be dropped and instead provision to integrate the unbundled utilities should be made.
It is strange that power capacity of 30,000 MW is stranded and fixed charges are being recovered from consumers without corresponding generation thereby increasing consumer tariff.
Power Engineers and employees of the country would be forced to stage protest dharnas on February 21 in case there were no response from Government on the letter written by convener of NCCOEEE to Prime Minister and other authorities.

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