‘Keep power boards as integrated companies’
Tribune News Service

Ropar, March 2
The All-India Power Engineers’ Federation (AIPEF) has demanded to keep the state electricity boards as vertically integrated companies, and to take only the trading part out its preview to meet legal requirements of the Electricity Act, 2003.

Padamjit Singh, chairman of the federation, said private companies were doing business in generation transmission and distribution in power sector, while state electricity boards were being forced to get unbundled under the same Act.

He said as per legal opinion, a state electricity board could continue to function in the present form, and to meet the law requirement, a separate trading company needed to be established. He appreciated the stand taken by the Kerala government in keeping the Kerala State Electricity Board (KSEB) as a single company.

According to the spokesperson of the AIPEF, the federation, in a resolution, strongly condemned new backdoor method of privatisation of power sector by way of franchisee system in urban areas.

The Uttar Pradesh government had last week decided to give distribution of power in two major industrial towns on franchisee basis to a private company for a period of 20 years. This was indirect privatisation of power sector without any responsibility of the franchisee. The same experiment was also being tried in Maharashtra and Madhya Pradesh.

Padamjit said due to the financial meltdown, private companies were postponing their commitments of investing in new power plants. There was general distrust and suspicion towards private sector and now there was more trust towards public sector. “The private companies are increasing their profits by hook and crook.

The Delhi Regulatory Commission, in its affidavit before the Appellate Tribunal, had said Reliance companies in Delhi had submitted fake papers to seek higher tariff,” he said.

The AIPEF, in another resolution, condemned the DVC management of victimising AK Jain, chief engineer of the corporation, because he dared to expose corruption in high places by seeking information under the Right to Information Act.

The AIPEF meeting was attended by delegates of 13 states.

The AIPEF also requested the Chhatisgarh government to expedite review of unbundling of state electricity board in five companies. The state government appointed a 10-member committee to review the issue.