Tamil Nadu Chief Minister MK Stalin on Wednesday requested Prime Minister Narendra Modi to defer the proposed amendments to the Electricity Act, 2003 considering their far-reaching detrimental implications on State Discoms.

In a letter to the Prime Minister, Stalin said the amendment Bill proposes to delicence the distribution sector of electricity by introducing a concept of ‘Distribution Company’ and deemed registration of any such distribution company after 60 days of application. This step will give unbridled access to private players to supply power to select consumers and enable them to use the already laid out distribution network of the public sector power companies. While the State PSUs carry the burden of investment in such networks, the private companies are being allowed to use the same without any investment or any responsibility to maintain it.

Selective access

Such private distribution companies will be able to selectively access all the high value customers in commercially viable areas. This would amount to granting them a right to cherry pick profitable ventures without any social obligations, while the State public sector power utilities are left with the obligation of power supply to subsidised categories of consumers and servicing the economically backward/rural areas.

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The proposed amendments to the Sections 26, 28 & 32, by giving powers to the National Load Despatch Centre such as integrated operation of the power system, optimum scheduling of electricity across different states and regions, monitoring of grid operations and giving directions to RLDC or SLDC, would amount to indirectly controlling many significant functionalities of the SLDCs/Discoms/State Governments.

High penalty

The penalty leviable under Sec.142 for contravening provisions of the Act/directions or order of the Commission is also high. In any case, it may not be appropriate to cover the non-fulfillment of Renewable Purchase Obligation (RPO) under Section 142, considering that renewable power availability is infirm by nature and hence a power utility may not be in a position to achieve its RPO due to various genuine reasons like disruptions due to natural calamities.

“I request your personal intervention to withdraw the Electricity (Amendment) Bill, 2021 and allow the State-owned Distribution Licensees to continue to supply quality power at affordable rates to the people,” Stalin said.

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