Energy crisis: Engineers blame 'overdependence' on private sector

Say power tariffs would remain low only when the govt utilities accounted for 70% of the total power generation

A national-level power engineers’ body has blamed faulty policies and “overdependence” on the private sector for the deteriorating state of power sector. In a meeting at Noida, Northern India Power Engineers Federation (NIPEF) warned that overdependence on the private sector had not augured well for the country and there was a need for a “balanced approach.” There has been constant deterioration in the financial health of the power sector and the government was now forced to subsidise even private power distribution companies (discoms), it added.

The federation further suggested power tariffs would remain low only when the central and state government utilities together accounted for 70 per cent of the total power generation. In its resolution, the federation has demanded the Narendra Modi government introduce an energy policy to meet the growing challenges and negate over emphasis on privatisation.

The federation said  two decades of power reforms have failed to ensure adequate supply of electricity, decrease aggregate technical and commercial (AT&C) losses, make the sector profitable, introduce benefits of competition in power generation and distribution by way of reduced tariff and better consumer services. AT&C losses is the total technical loss, commercial loss and shortage due to the non-realisation of total billed amount. Electricity Act (2003) was aimed at reducing losses, improving financial health of the sector and reducing subsidy. However, the financial health of power sector has deteriorated, All India Power Engineers Federation (AIPEF) chairman Shailendra Dubey said. He said while discoms had resorted to loans to meet operational deficits, the state power utilities were caught in a debt trap and the UP Power Corporation Limited (UPPCL) had accumulated losses of over Rs 25,000 crore.

The Federation has  called for a review of the ultra mega power projects (UMPP) and coal allocation policies.