Express News Service
NEW DELHI: The controversial Electricity (Amendment) Bill, 2022, which is expected to escalate Centre-state confrontation, was introduced in the Lok Sabha on Monday and later sent to the Standing Committee on Energy for vetting.
The bill mandates state electricity regulatory commissions (SERCs) to specify regulations to progressively reduce cross-subsidy, which is subsidising one set of customers at the cost of others. It requires SERCs to adhere to the National Electricity Tariff Policy while determining cross-subsidy.
Subsidies will not be accounted for while fixing tariff; subsidies will be provided directly to consumers. The bill allows multiple distribution licences within the same area of supply. No applicant who fulfils all the conditions can be refused a licence. It also provides for graded revision in tariff over a year besides mandatory fixing of maximum and minimum tariff by the appropriate commission.
Introducing the Bill, Union power minister R K Singh called it “pro-people and for the growth of our economy” that would allow consumers to choose from multiple electricity distributors. But experts feel otherwise.
According to the All India Power Engineers Federation (AIPEF), it would intrude into the powers and functions of the state governments, abolish subsidies and cross-subsidies and harm farmers and consumers alike.
“It seeks to centralise almost all functions of the DISCOMS as well as SERCs, thereby changing the entire character of the electricity supply industry and existing legislation as well as the federal structure,” said Shailendra Dubey, chairman of AIPEF. He also said the area of licence has not been clearly defined.
“This would lead to cherry-picking and eventually in privatising profits and nationalising losses.” Former Power Secretary Subash Chandra Garg told this newspaper the sector can be reformed only when state distribution utilities are dismantled, private entities take over business like in Delhi and states support farmers and other vulnerable sections by providing direct benefit transfers. “Unfortunately, this bill has none of these provisions”, he said.
ALSO READ | Electricity Bill bid to stop free power to ryots: Senthil Balaji
NEW DELHI: The controversial Electricity (Amendment) Bill, 2022, which is expected to escalate Centre-state confrontation, was introduced in the Lok Sabha on Monday and later sent to the Standing Committee on Energy for vetting.
The bill mandates state electricity regulatory commissions (SERCs) to specify regulations to progressively reduce cross-subsidy, which is subsidising one set of customers at the cost of others. It requires SERCs to adhere to the National Electricity Tariff Policy while determining cross-subsidy.
Subsidies will not be accounted for while fixing tariff; subsidies will be provided directly to consumers. The bill allows multiple distribution licences within the same area of supply. No applicant who fulfils all the conditions can be refused a licence. It also provides for graded revision in tariff over a year besides mandatory fixing of maximum and minimum tariff by the appropriate commission.
Introducing the Bill, Union power minister R K Singh called it “pro-people and for the growth of our economy” that would allow consumers to choose from multiple electricity distributors. But experts feel otherwise.
According to the All India Power Engineers Federation (AIPEF), it would intrude into the powers and functions of the state governments, abolish subsidies and cross-subsidies and harm farmers and consumers alike.
“It seeks to centralise almost all functions of the DISCOMS as well as SERCs, thereby changing the entire character of the electricity supply industry and existing legislation as well as the federal structure,” said Shailendra Dubey, chairman of AIPEF. He also said the area of licence has not been clearly defined.
“This would lead to cherry-picking and eventually in privatising profits and nationalising losses.” Former Power Secretary Subash Chandra Garg told this newspaper the sector can be reformed only when state distribution utilities are dismantled, private entities take over business like in Delhi and states support farmers and other vulnerable sections by providing direct benefit transfers. “Unfortunately, this bill has none of these provisions”, he said.
ALSO READ | Electricity Bill bid to stop free power to ryots: Senthil Balaji
