The Hindu Business Line : Cabinet nod for Electricity Bill 2005 timely

The Union Cabinet nod on Monday for making requisite official amendments in the Electricity (Amendment) Bill 2005 in order to exercise effective control over theft of electricity has not come a day too soon as the country could ill-afford leakages and wastages in the system, gobbling up Rs 28,000 crore a year.

As the Eleventh Five-Year Plan, beginning from fiscal 2007 sets an average 9 per cent GDP growth rate for the next quinquennium, the role of power sector in keeping the wheels of the economy on an accelerated speed can hardly be gainsaid.

Based on the recommendations of the Standing Committee of Parliament as also of the Group of Ministers and taking on board the advise of the Department of Legal Affairs, the Electricity (Amendment) Bill, 2005 containing amendments to the Electricity Act 2003, renders theft of electricity a cognisable offence.

This also automatically provides for taking cognisance of the offences and also for determination of civil liability by the competent Court with charges for unauthorised use of power being fixed within 30 days. Amendment to Section 151 is being made to clarify the position that the police would be able to probe the cognisable offences under the Act.

In fine, the official amendments to the Bill provide, among others, that all offences pertaining to theft of electricity would be non-bailable, that the licensee could disconnect supply in case of theft of electricity and debar large consumers convicted for second time from getting supply of electricity for a specified period.

Tracking Consumers

It is also made clear that an assessing officer could make assessment of the charges payable by any person found to be indulging in unauthorised use of electricity. The assessing officer could be from State Government or Board or licensee (discom) designated as such by the State Government. The amendment would facilitate power companies to track and crack consumers who tap power clandestinely and illegally.

Discom companies, stymied from being able to do much to control theft so far, would be able to do much to stem the power haemorrhage by even getting police action swiftly. Already, Delhi discom, a privatised part of the earlier Delhi Vidyut Board, has gone about utilising Central Industrial Security Forces to unearth power pilferage by industrial units.

Graded Reduction

As a result, the aggregate technical and commercial losses (AT&C) have come down from 50 per cent in 2002 when the distribution was privatised to about 35 per cent in March 2006 with the discom companies having scored the target for loss reduction.

Power Finance Corporation estimates AT&C losses of the State power distribution utilities at national level for the year 2004-05 at 33.82 per cent. But considering the record of Delhi, which is still slightly above the national average, the transformation from a level of 50 per cent just four years ago to 35 per cent was no mean achievement.

A Task Force headed by the former Secretary (Power), Mr P. Abraham, suggested graded reduction of AT&C losses by the discom companies from a level of 1 per cent to 4 per cent a year depending on AT&C losses ranging from 20 per cent to above 40 per cent. Armed with the power to prosecute the frequent filcher of electricity, the discom companies would hopefully spare no effort to ensure that precious electricity is not lost for a song by unscrupulous users.