Power engineers demand cancellation of Delhi discoms' licences

Recent CAG report alleged overcharging of energy consumers by about Rs 8,000 cr

All India Power Engineers Federation (AIPEF) today demanded immediate cancellation of licences of three power distribution companies (discom) in Delhi following the recent CAG report alleging overcharging of energy consumers by about Rs 8,000 crore.

Further, AIPEF has demanded that following the 'revelation' about Delhi discoms, a CAG audit of all private power utilities, including urban distribution franchisees in India be ordered in the larger interests of power sector and the consumers.

The Federation pointed out that the CAG report, as published in newspapers, had clearly indicted the Delhi Electricity Regulatory Commission (DERC) as well.

The CAG report had questioned the legitimacy of huge regulatory assets created by DERC in favour of private discoms. This is possible only if the regulator had connived with discoms or was negligent, Federation chairman Shailendra Dubey said in a press communique.

In either of the cases, the DERC chairman and its members should resign and make way for a team with 'integrity' to take corrective action, he suggested.

He claimed AIPEF had in the past written several letters pointing out the irregularities by the three power companies, but its suggestions were ignored for vested interests.

Dubey noted the government also could not absolve of its responsibilities, as it held 49% stake in the three discoms, but had no control over the distribution business in these companies. The Delhi Vidyut Board (DVB) was privatised in June 2002.

As per CAG report, the discoms chose to purchase equipment and material from their sister concerns at exorbitant prices, which is being loaded on consumers by steep hike in tariffs every year.

Distribution losses are shown decreasing from 55% in 2002 to 15% in 2010, yet instead of reducing tariffs, the power bills have gone up.

He noted Delhi discoms not only manipulated consumer figures, but also bought costly power, suppressed revenue and gave undue favours to the group firms.