Engineers’ body opposes unbundling of PSEB
Umesh Dewan
Tribune News Service

Patiala, February 11
The Punjab State Electricity Board (PSEB) Engineers’ Association has claimed that under the Electricity Act 2003, there is no legal obligation on any state government to unbundle the PSEB by creating separate generation, transmission and distribution companies. Leaders of the association also claimed that the PSEB could continue as a bundled utility by separating trading functions to satisfy the provisions of the Electricity Act, 2003.

Elaborating on the matter, association president HS Bedi told The Tribune, “By stating that it is mandatory to unbundle PSEB, as per the Electricity Act 2003, is a wrong interpretation of law.

The judgment of Appellate Tribunal for Electricity dated July 15, 2009, says there is no legal obligation under the Electricity Act, 2003 on any state government to create separate generation, transmission and distribution companies.”

He further said in a scenario of power shortage, the major objective was the optimum utilisation of available power generation capacity.

Bedi added that since the power generated could be stored, it was necessary to match power generation with demand on minute-to-minute basis, with the transmission system acting as the carrier.

“This could be achieved in an efficient manner only through a vertically integrated structure covering generation, transmission and distribution. With peak power shortage touching 38 per cent in Punjab, no relief is expected in the next three to four years, since no new power project is expected to get commissioned in the state,” he said.