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Home News Power Sector News AIPEF demands modification in National Electricity and Tariff Policy

AIPEF demands modification in National Electricity and Tariff Policy

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National electricity ploicyAll India Power Engineers Federation (AIPEF) today demanded that the National Electricity Policy and Tariff Policy be modified to facilitate addition of green power.
The Federation also demanded that all power utilities of the states be integrated as unbundling experiment of state electricity board(SEB) has miserably failed while at the same time giving adequate protection to the state power utilities from adverse consequences of stranded thermal power station assets.


AIPEF chairman Shailendra Dubey said here that as per decisions taken by federal executive meeting held at Jammu recently, a letter has been sent to Union Power Minister Piyush Goyal to hold detailed discussions before taking further step in deciding the policy.
He said AIPEF, along with other power workers federations, is planning for nationwide agitation against wrong energy policies of Central Government which has created a situation in which being power surplus country, still 300 million people in India have no access to electricity.
Mr Dubey said AIPEF executive demanded review of all long-term power purchase agreements (PPAs) entered with private sector companies for thermal and solar generation and expressed great concern about stranded thermal capacity in several states as these are not operated for months at a stretch on account of higher variable rate. He demanded CAG audit of all Independent Power Producers(IPPs) so that inflated bills of power may be verified and burden may not pass over to common consumers.
AIPEF acknowledging the urgent need to combat global warming and climate change said the policy should be amended to facilitate addition of green power while at the same time giving adequate protection to state power utilities from adverse consequences of stranded thermal power station assets. The government policy should include guidelines by which the state power utilities are protected/compensated for the adverse financial impact of operation of thermal stations at low plant load factor (PLF) or complete closure of station on account of surplus green power or to facilitate IPPs.
With the present situation of surplus capacity the financial condition of several state power utilities is deteriorating whereby high cost power contracted under earlier PPAs has to be availed or alternately capacity surrendered and charges paid without availing energy. Secondly, several state discoms are facing distress situation of stranded generation capacity of state thermal stations whereby fixed charges are being incurred round the year with NIL or low energy availed.
The PPAs should be amended to give the state discom the choice to surrender surplus power from IPPs and this power be at the disposal of the IPP/developer who should be free to sell power from that surrendered capacity to any purchaser and the fixed charges for that surrendered capacity should not be payable by the state discom. In case the IPP/developer does not agree to this monthly requisition procedure, the state govt. should take measures for cancellation of the PPA totally.
Instead of considering the option of retiring the plant operating at low PLF with life of 25 years or more, the alternative of setting up supercritical station/unit at the same site needs to be analysed otherwise this would lead to destroying of planned growth of the power sector and leaving it to the mercy of private player and market forces.
AIPEF is of firm view that the government has no credible vision on long-term electricity planning, as evident from its senseless pursuit of adding thousands of MW of nuclear power generation capacity, when such base-load power generation would further add to the electricity costs and compound the consumers’ woes. It is ironic that the political leaders are more interested in bailing out the bankrupt US companies.
AIPEF also demanded that the role of Central Electricity Authority (CEA) in power planning be restored instead of relying on Niti Aayog, and post of Chairman CEA, vacant since Jan 2017 be filled up soon. AIPEF said that the time and cost overrun in construction of 1200 MW Teesta 3 project in Sikkim has caused tariff to increase over 250 per cent and the policy of PPP mode in executing power projects has failed disastrously. UP is also one of the procurer state from Teesta power plant.

 

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