Powermen oppose Electricity (Amendment) Bill 2014

Allege result in massive increase in power tariffs

All India Power Engineers Federation (AIPEF) has opposed the Electricity (Amendment) Bill 2014, likely to be tabled in Parliament during the forthcoming monsoon session starting July 21, alleging it would lead to substantial increase in power tariffs.

The Federation has claimed the Bill would vest unbridled power with the power distribution companies (discoms) to raise tariffs and burden consumers.

AIPEF announced to observe a day’s strike under the banner of National Coordination Committee of Electricity Employees and Engineers.

Federation chairman Shailendra Dubey told Business Standard the strike would be observed on the same day the Bill is tabled in Parliament.

The Bill has already been approved by the union cabinet after seeking opinion of the standing committee on energy matters.

“The Bill would insulate power distribution licensees from financial losses. Under the policy, the discoms would merely transmit power and issue new licenses for distributing power locally,” he informed.

For tariff determination, the existing policy states, “…safeguarding of consumers’ interest and at the same time recovery of the cost of electricity.” However, the proposed amendment proposes, “…recovery of the cost of electricity without any revenue deficit in the context of tariff determination,” he claimed.

He warned the private distribution companies could inflate costs to seek higher power tariffs.

Dubey said the policy would result in significant increase in power tariffs every year. “It is imperative to lodge protest against the Bill and stall its passage in Parliament.”

Giving an example, he said the average cost of power in Uttar Pradesh is Rs 4.34 per unit, while it inflates to Rs 7.05 per unit when it reaches the consumer end. “If profit is also added to the final cost of Rs 7.05 per unit, the power tariff to be paid by the end consumer under the proposed policy would be massive,” he explained.