Electricity Bill will pave the path for privatisation: AIPEF chairman Dubey

"The AIPEF is opposing the Electricity (Amendment) Bill, 2022, in the larger interest of the consumer and the power sector itself," said Dubey

The All India Power Engineers Federation (AIPEF), an umbrella body representing nearly 1.5 million public sector power employees, has threatened a massive stir on November 23 in New Delhi, against the proposed amendment to the Electricity Act. In an interview, AIPEF Chairman Shailendra Dubey tells Virendra Singh Rawat the broad contours of the union’s stand. Edited excerpts:

Why is the AIPEF on the warpath over the proposed amendments to the Electricity Act?

The AIPEF is opposing the Electricity (Amendment) Bill, 2022, in the larger interest of the consumer and the power sector itself.

The Bill would enable the central government to intrude into the powers of state governments, and ‘centralise’ almost all functions of discoms, as well as the state regulatory commissions. This shall radically alter the character of the electricity supply industry, as well as the federal structure given in the Constitution. In the name of giving choice to consumers, multiple distribution licences will be given to private operators, at the cost of existing discoms.

Though the AIPEF has alleged the amendment is akin to privatisation of the energy/electricity sector, the Union power ministry has not suggested the same…

The Bill will pave the path for ‘total privatisation’ of power distribution. Private licensees will prefer to supply electricity only to profit-making industrial and commercial consumers. This is cherry-picking. This will lead to the financial bankruptcy of government discoms. Ultimately, the entire network of discoms will be handed over to private companies at throw-away prices.

Power is the basic infrastructure for socioeconomic development. Will not the participation of the private sector spur competition and foster customer service?

The Bill accords a great emphasis on “choice to consumers”, which is highly misleading because in India, the number of consumers who cannot pay the ‘cost to serve’ is humongous. For example, almost 82 per cent of domestic consumers, as well as nearly all agricultural consumers do not pay the cost to serve. How can competition be introduced in such a market without privatising profits and nationalising losses?  Competition is possible only in profit-making areas and not in loss-making areas.

The AIPEF has announced a countrywide agitation, culminating in a show of strength in New Delhi on November 23. Kindly elaborate.

Agitation steps announced by the AIPEF are for mass awareness, and will not impact the power supply of consumers. Bijli Kranti Yatras will start from all four regions of the country and culminate in a massive rally in Delhi on November 23 during the Winter session of Parliament to draw the attention of the central government.

Have confabulations with the Centre broken down or has the federation failed to convince the Centre about its views on this contentious issue?

Time and again, the AIPEF has been writing letters to the prime minister and the power minister, but unfortunately, the power ministry has yet not held any official meeting with the federation on this important Bill.

In fact, the Electricity (Amendment) Bill, 2022, was not on the list of 34 Bills to be introduced in the monsoon session of Parliament. However, how the central government introduced the Bill on August 8 was shocking and undemocratic.

Last year, the Centre had in writing to the Sanyukt Kisan Morcha affirmed that the Bill will not be introduced in Parliament without detailed discussions with farmers and other stakeholders. So far, the Centre has not held any discussion either with farmers and domestic consumers or with power employees who are the biggest stakeholders.

Is the AIPEF reaching out to the opposition parties for a broader consensus on this matter?

Yes, the AIPEF has written letters to all chief ministers and the presidents of all political parties, alarming them against this anti-people and draconian Bill. We have to bear in mind that electricity is a concurrent subject wherein both the central and state governments have equal rights to frame laws. However, the Centre is blatantly violating the federal spirit.

We are getting support from almost all political parties. Kerala and Telangana Assemblies have unanimously passed a resolution against the Bill, 2022, urging the Centre to withdraw it. The Tamil Nadu, Bihar, Jharkhand, West Bengal, Delhi, Punjab, Rajasthan and Chhattisgarh governments have opposed the Bill and asked the Centre for its withdrawal.