A bill on the revamp of Andhra Pradesh State Electricity Board (APSEB) will come up in the winter session of the state assembly commencing on November 17.
It is understood that the Andhra Pradesh Electricity Reform Bill has been vetted by the Centre and also by a World Bank team. The World Bank has indicated a $2 billion assistance to the state if restructuring of the board is undertaken on the lines it had indicated in its Agenda for Economic Reforms.
Provision has been made in the bill for protecting the service conditions of existing 74,000 employees of the board. However, the main union of the board has rejected the proposal and has threatened to go on a indefinite strike the moment the restructuring package is announced.
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An implication of the reforms package is that all the generation and distribution companies will have access to the grid on an equitable basis, government sources said.
This would mean that an independent power producer (IPP) putting up a generating plant without the power purchase agreement (PPA) will be able to sell the power to any of the numerous distribution companies through the transmission company which will wheel the power.
It will be for the independent regulator, to be set up under the reforms enactment, to ensure such accessibility to the grid.
The bill provides for the setting up, within three months of the legislation coming into force, an independent regulatory commission to promote efficiency and economy in generation, transmission and distribution of electricity and oversee the entire gamut of the power sector.
It also envisages setting up, within sixty days of the act coming into force, a power transmission company, APTRANSCO, whose main function will be to procure, transmit and supply power, through a number of subsidiary or associated companies. APTRANSCO will be the successor to the existing Andhra Pradesh State Electricity Board.
The commission will be an all pervading body issuing licenses for generation, transmission and supply of power, regulating the purchase, distribution, supply and utilisation of electricity, the quality of service, the tariff and charges payable keeping in view the interests of the consumers; promote competitiveness and progressively involving the participation of the private sector.
It also provides for the setting up of a commission advisory committee of between 15 and 21 members drawn from different sections of the society to advise the commission on major policy questions and on the quality of service provided by the utilities.
APTRANSCO, a company licensed by the regulatory commission will be the principal body to undertake all planning and coordination in regard to transmission.
A feature of the bill is the ban it imposes on a licensee or generating company from acquiring by purchase or otherwise or associating with another power utility licensee without the permission of the regulatory commission.
The bill also lays down the procedure for distribution of the assets and liabilities of the Andhra Pradesh State Electricity Board in the wake of its restructuring.
World Bank, Centre clear proposals in the bill but the main SEB union threatens strike.