Electricity (Amendment) invoice launched in Lok Sabha, despatched to panel amid Opposition’s rage

Express News Service

NEW DELHI:  The controversial Electricity (Amendment) Bill, 2022, which is anticipated to escalate Centre-state confrontation, was launched within the Lok Sabha on Monday and later despatched to the Standing Committee on Energy for vetting.

The invoice mandates state electrical energy regulatory commissions (SERCs) to specify laws to progressively scale back cross-subsidy, which is subsidising one set of shoppers at the price of others. It requires SERCs to stick to the National Electricity Tariff Policy whereas figuring out cross-subsidy.

Subsidies is not going to be accounted for whereas fixing tariff; subsidies shall be offered on to customers. The invoice permits a number of distribution licences inside the identical space of provide. No applicant who fulfils all of the circumstances may be refused a licence. It additionally offers for graded revision in tariff over a yr in addition to necessary fixing of most and minimal tariff by the suitable fee.

Introducing the Bill, Union energy minister R Okay Singh known as it “pro-people and for the growth of our economy” that may permit customers to select from a number of electrical energy distributors. But consultants really feel in any other case.

According to the All India Power Engineers Federation (AIPEF), it might intrude into the powers and features of the state governments, abolish subsidies and cross-subsidies and hurt farmers and customers 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,” mentioned Shailendra Dubey, chairman of AIPEF. He additionally mentioned the world of licence has not been clearly outlined.

“This would lead to cherry-picking and eventually in privatising profits and nationalising losses.” Former Power Secretary Subash Chandra Garg advised this newspaper the sector may be reformed solely when state distribution utilities are dismantled, personal entities take over enterprise like in Delhi and states help farmers and different susceptible sections by offering direct profit transfers. “Unfortunately, this invoice has none of those provisions”, he mentioned.

ALSO READ | Electricity Bill bid to cease free energy to ryots: Senthil Balaji

NEW DELHI:  The controversial Electricity (Amendment) Bill, 2022, which is anticipated to escalate Centre-state confrontation, was launched within the Lok Sabha on Monday and later despatched to the Standing Committee on Energy for vetting.

The invoice mandates state electrical energy regulatory commissions (SERCs) to specify laws to progressively scale back cross-subsidy, which is subsidising one set of shoppers at the price of others. It requires SERCs to stick to the National Electricity Tariff Policy whereas figuring out cross-subsidy.

Subsidies is not going to be accounted for whereas fixing tariff; subsidies shall be offered on to customers. The invoice permits a number of distribution licences inside the identical space of provide. No applicant who fulfils all of the circumstances may be refused a licence. It additionally offers for graded revision in tariff over a yr in addition to necessary fixing of most and minimal tariff by the suitable fee.

Introducing the Bill, Union energy minister R Okay Singh known as it “pro-people and for the growth of our economy” that may permit customers to select from a number of electrical energy distributors. But consultants really feel in any other case.

According to the All India Power Engineers Federation (AIPEF), it might intrude into the powers and features of the state governments, abolish subsidies and cross-subsidies and hurt farmers and customers 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,” mentioned Shailendra Dubey, chairman of AIPEF. He additionally mentioned the world of licence has not been clearly outlined.

“This would lead to cherry-picking and eventually in privatising profits and nationalising losses.” Former Power Secretary Subash Chandra Garg advised this newspaper the sector may be reformed solely when state distribution utilities are dismantled, personal entities take over enterprise like in Delhi and states help farmers and different susceptible sections by offering direct profit transfers. “Unfortunately, this invoice has none of those provisions”, he mentioned.

ALSO READ | Electricity Bill bid to cease free energy to ryots: Senthil Balaji