AIPEF demands review of power sector reforms
V K Gupta
June 1st, 2014

AIPEF demands review of power sector reforms
Sunday June 1, 2014

All India Power Engineers Federation (AIPEF) has requested the Prime Minister to constitute a high power technical committee of experts under his leadership to review the power sector reforms and to recommend corrective measures to make it vibrant.

AIPEF in a letter to Narinder Modi Prime Minister of India has claimed that due to wrong energy policies of UPA Government country could not achieve the target of “Power to All by 2012″ .

V K Gupta a spokesperson of federation said that the very purpose of changing Electricity Act in 2003 was to reduce the losses in power sector, improve the financial health of the sector & reduce the subsidy burden of Government .But due to faulty implementation of policies the contrary has happened. The financial health of power sector has further deteriorated & Government is now even subsidizing private Discoms. The most serious effect of wrong energy policies even banking sector may collapse under the burden of non-performing assets being generated by power Sector.
AIPEF in its letter has alleged that on the generation front the concept of achieving low tariffs through competitive bidding in Ultra Mega Power Projects (UMPP) has been completely defeated by the changes made in terms of reference after award of contract by giving various concessions to successful bidders.
The coal shortage coupled with import of coal and increase in prices of natural gas is going to push up the tariff further. The performance of thermal plants with imported equipment is not up to mark and this is especially true in case of Chinese equipment.
While there are shortages of power in southern states, state owned power plants in West & North are being shut down due to lack of load. This is in spite of the fact that physical infrastructure of power transmission exists to transfer power from one region to other.
On distribution front creation of multiple agencies is adding cost at every level which ultimately affects consumer. The franchisee experiment has not been able to give desired results as all the franchisee is committing gross financial irregularities.
Private Discoms are not being subject to any scrutiny as such these Discoms are adding cost by purchases at very high cost from their own sister concerns which is ultimately burdened on consumer.
Further autonomy & independence of Electricity Regulators has been completely eroded as it has been captured by vested interests due to interference by state Government even in case of tariff matters. Most of regulatory commissions are headed by retired bureaucrats who are enjoying all powers without any responsibility.

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