The ‘Electricity Amendment Bill – 2022’ introduced by the Central Government in the Lok Sabha has been sent to the Standing Committee for scrutiny due to the opposition of the State Governments. The DMK and the government have also opposed this bill.
Regarding this, Murali Krishnan, secretary of Tamil Nadu Bharatiya Electrification Workers Organization and lawyer, said: There are private companies in power generation in India. However, power distribution is done by state governments. Thus, state governments are able to provide benefits to consumers. Also, the state governments have developed the electrical infrastructure.
‘Wheeling Charges’
The reasons for the opposition of the State Governments are as follows:
* Section 42 of the Electricity Amendment Act for use of electricity infrastructure created by the State Governments for private power distribution companies
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The question of the state governments is why they should give the power infrastructure they have created to a private company. State governments argue that the amount of ‘wheeling charges’ given by private companies is not sufficient for the use of electrical infrastructure.
* The new bill states that if a company that has a power chain structure refuses to give its structure to a newly licensed company in the same area, it can appeal to the regulatory authority and get appropriate relief.
This practice is already in place in high-voltage power applications. In the coming period, the electrical infrastructure for houses will also be brought under this procedure, says the new bill
* There is fear that the new bill will increase the electricity bill for houses. The bill does not directly say that ‘electricity charges should be increased’. But it insists that electricity tariff should be fixed by taking into account all costs from generation and distribution of electricity. If the state electricity distribution companies fix the electricity tariff in a cost-effective way and increase the electricity subsidy to the consumers, they can cope without increasing the electricity tariff.
But the question for the state governments is how the state governments, which are already in financial crisis, can cope with the additional financial burden caused by further increase in power subsidy.
* In the new Bill, the National Load Despatch Center has been given additional powers. As per the previous Electricity Amendment Act, the ‘National Load Dispatch Centre’ was the only body that regulated the distribution of electricity across the country.
But in the new Bill, the apex body of power distribution will be the ‘National Load Dispatch Centre’. All the regulations of this system are to be followed by the State Electricity Boards
* Companies including State Electricity Board buy electricity from private power producers. But, the amount is not paid properly; Loans.
This too will be monitored by the ‘National Load Dispatch Centre’. This is why the state governments are opposing the amendment bill
* There are fears that benefits including free electricity will be scrapped with the new bill. The new bill does not prohibit the provision of free electricity. However, it says that electricity should be fixed at an appropriate rate.
The regulatory authority will decide the maximum charge and minimum charge for 1 unit of electricity when private companies get electricity distribution rights. State governments to provide electricity at lower cost
Can not. Due to this, there may be problem in providing free electricity and electricity tariff concessions. That is why the state governments are opposing the new Electricity Amendment Act. But the new bill says that the government should create a fund to provide benefits including free electricity.
Hence, there is a possibility of continuation of concessions to farmers, weavers and home consumers
* Penalty amount has been increased significantly in the new bill. If the power distribution company violates the law, it can be fined up to Rs 1 crore.
But the state governments say that the penalty procedure will increase the financial burden of the state electricity boards
* Private companies will engage in electricity distribution only in profitable areas. Electricity distribution to villages and agricultural areas should be done by the government.
State governments object, saying they cannot give concessions if the profitable areas are privatized
* Through the new bill, the power of the National Electricity Regulatory Commission will be enhanced. The state governments are opposing this, saying it is a violation of state government rights.
The central government has set aside 3 lakh crore rupees to rehabilitate power boards in many states and implemented a special scheme called power board rehabilitation.
To join this program, there are several restrictions. There is an important provision to allow private participation in power distribution.
‘Smart Meter’
Also, the electricity bill used by government departments should be strictly collected; Install ‘Smart Meter’ and charge accordingly. The Tamil Nadu government has joined this project.
Politicians opposing the new Electricity Amendment Bill have already allowed private sector in many matters, including maintenance of sub-stations, through the central government scheme.
Tamil Nadu Electricity Board and Tamil Nadu Government, which accept most of the things said by the Central Government, are saying that through the new law amendment, they are going to enter the private sector in electricity distribution, it is completely false.
The Central Government’s Power Board Restructuring Scheme has provided thousands of crores of rupees to the Tamil Nadu Power Board. Based on that, the “piece” that fell in the budget of the power board has now been corrected.
The loan amount already purchased remains the same. Things like reducing the interest amount are happening on one side. If the regulations of the power board restructuring plan are properly followed, the power board can clear those debts soon.
In Tamil Nadu, DMK has signed all the schemes of the central government to save the electricity board since the inception of the government.
Cheating
But to claim that only the current new bill will have dire consequences is a complete deception.
Apart from that, electricity can be purchased from the electricity board only through a private company called ‘E Cloud’.
That being the case, the Tamil Nadu government, which has given permission to a private company, says that with the new bill, it will benefit the private sector in electricity distribution.
2,000 industrial companies with high voltage utility have gone to private sector as they can get electricity at a cheaper rate than the Tamil Nadu Electricity Board.
It is painful that the Tamil Nadu government, which is not concerned about it, is concerned about the new bill. This is what he said. – Our Correspondent —
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