The Independent Power Producers Association of India (IPPAI), an independent body providing forum for discussion of issues vital for the development of power sector in the country, today suggested that the states should create a fund to subsidise supply of power to the poor.
They can levy cess on export of power from the state and utilise the money so collected to subsidise the poor consumers, Harry Dhaul, director general, IPPAI, said here.
Addressing the participants of the “Captive Power Series 2009”, organised by the Independent Power Producers Association of India (IPPAI) and the Confederation of the Captive Power Plants, Orissa (CCPPO) here, he said, such a system will bring in hard cash for the state governments.
It will help in attaining a balance between the generating company, which wants profit on his investments and the poor consumer, who is unable to pay higher tariff.
Though power is a regulatory matter, fresh investment will not come to this sector unless a market for power is created through open access. In the states, where open access is allowed, the amount earned from the sale of surplus power has been invested by the industry in that state, which promotes employment.
Dhaul said, though some state governments have put restrictions under section 11, 37 and 108 of the Electricity Act, 2003, in the public interest, the connotation of public interest changes with time. He said., if the government wants the power sector to flourish, there should be independent regulator for private sector as the government can always interfere in the matters of private power sector through the existing regulatory set up.
Various industries argued trading and investment in the power sector will be impacted if open access is not allowed. Similarly, if section 11 of the Electricity Act is used indiscriminatingly, this will have long term and lasting detrimental effect on the power sector in the country.
Orissa government, however, pointed out that section 11 is used only in emergency situation when the state faces acute shortage of power. “The states have genuine expectations as the CGPs get land, water and other support on rehabilitation and re-settlement issues. So the interest of the state and the consumer who can’t pay higher price need to be looked at”, state energy secretary Pradeep Kumar Jena said.
The chairman and the managing director (CMD), Gridco C J Venugopal said, the gap between the demand and supply of power in Orissa is high. If the power tariff has to be market based, the raw material price will also have to be based on market price. One can’t seek market based power tariff while availing the benefits of regulated raw material price, he added.
State energy minister Atanu Sabyasachi Nayak stated that various conflicting interests of the consumers need to be taken care of during the transitional period. The former chief justice of India, G B Patnaik, V K Sood, managing director, NESCO and Sanjeev Das, secretary, CCPPO spoke on the occasion.
