National Co-ordination Committee of Electricity Employees and Engineers (NCCOEEE), an umbrella organisation of various Trade unions and Associations in the power sector, has sought meeting with power ministry to discuss proposed modifications suggested by it in Electricity (amendment ) Bill.
NCCOEEE in a letter dated February 2 to Union Power Minister, Piyush Goyal has submitted detailed clause wise modifications giving its views on various provisions of electricity bill.
NCCOEE has demanded that all provisions related to creation of an "intermediary company" may be deleted in the draft electricity (amendment) bill as per his own declaration that the state governments will have the option to implement or not to implement the provisions related to separation of distribution and supply functions.
V.K. Gupta, a spokesperson of All India Power Engineers Federation (AIPEF) said that government must issue a statement of objects and reasons for electricity (amendment) bill in line with prime minister's policy on transparency. NCCOEEE cautioned government against rushing through the bill without extensive interaction with all stakeholders.
Gupta further said that NCCOEEE completely oppose the proposal relating to separation of carriage and content by further unbundling of distribution sector in to three sectors one for line business another for supply business and third for bulk power purchase and redistribution amongst the supply licensees. The proposal aims at promoting private sector participation in supply business without any need for capital investment by private sector and allowing it to use infrastructure built by power sector to reap profit.
The period of five years suggested by power ministry in draft bill for the issue of transfer scheme is not agreed to and period should be 10 years since the infrastructure for introduction of supply system will take longer than this period.
The proposal regarding renewable generation obligation is not reasonable or logical as nature of thermal plant is completely different. The practice of bundling high cost renewable power with low cost conventional generation is not agreed to. Further the accounts of supply company must be open to audit by Government audit. The exemption of railways from cross subsidy is not agreed to.
It may be mentioned that the power ministry proposed modifications in context of separation of carriage and content mainly consists of time limit for notification of transfer scheme has been enhanced to 5 years and state governments can implement it in a phased manner in accordance with the road map to be notified by them. The provisions relating to distribution and supply and tariff in the amendment act will not be applicable until the state government implements the transfer scheme and all supply licensees will have universal supply obligation. Further tariff caps will be determined by the regulatory commissions for supply licensees.