Keep proposed amendments to Electricity Act in abeyance, CM tells PM

Tamil Nadu Chief Minister K

Palaniswami on Saturday urged Prime Minister Narendra Modi to put the proposed amendments to the Electricity Act on hold till these were thoroughly discussed with state governments after the Coronavirus pandemic subsides.

Recalling his earlier objections to the amendments, the Chief Minister said the proposed amendment bill sought to take away the power of the state government in deciding the constitution of the State Electricity Regulatory Commission, which is against the federal principles of the Constitution.

In a letter to Modi, a copy of which was made available to the media, Palaniswami said the proposed amendments for which the Ministry of Power has invited comments from state governments, require detailed consultations with them and otherstakeholders.

 

"You are aware that all states are currently pre-occupied with fighting the Coronavirus pandemic and will, therefore, require some time to give their detailed response to the proposed amendments.

At the same time any hasty amendments to the Electricity Act may create hardship to the State power utilities, which are going through a severe financial crisis because of the present pandemic.

As some of the provisions of the draftamendment bill are also likely to put the public to hardship, particularly during this crisis period, I am of the view that this may not be an appropriate time to bring in such sweeping amendments to theElectricity Act," he said in the letter.

Hence, under the present circumstances, the PM should prevail upon the Power Ministry to put the proposed amendments to the Electricity Act 'in abeyance' till these are thoroughly discussed with the state governments after the pandemic subside.

Recalling his letter dated November 12, 2018, the CM said he had pointed out that the proposedElectricity Amendment Bill will take away certain powers of the state government and at the same time seeks to bring significant changes in the existing Electricity Act.

The changes include separating carriage and content in the distribution sector, which would make the power utilities in the public sector totally unviable.

The proposed new draft bill seeks to privatise not just the supply of power to the end consumer through franchisees but to also privatise the entire distribution network, which would be highlydetrimental to the state utilities and against public interest, Palaniswami said.

Further, despite the State's strong reservations, the new draft Bill continues to have provisions for the Direct Benefit Transfer of subsidyto consumers, particularly in the agricultural and domestic sector, he added.

Implementing DBT in the electricity sector would work against the interest of farmers and domestic consumers and moreover, it has been the consistent policy of the government that the farmers shouldreceive free power.

Hence the state government should be allowed to decide the mode of payment of such subsidy.

Also, the proposed amendment bill seeks to take away the power of the State Government in deciding the constitution of the State Electricity Regulatory Commission, which is against the federal principles of the Constitution, Palaniswami said.

Further, the move to set up a parallel authority, namely Electricity ContractEnforcement Authority at the Central level to handle all contractual issues would unnecessarily dilute the authority of the Central and State Electricity Regulatory Commissions and needs to be deleted, he added.