Government's proposal to allow multiple power suppliers is "anti-people" and would help private palyers earn "creamy profit", a federation of power engineers has said.
All India Power Engineers Federation (AIPEF) would soon make a written submission before a Parliamentary Panel demanding immediate withdrawl of the Electricity (Amendment) Bill 2014, and launch a nationwide agitation.
"AIPEF has decided to oppose the Electricity (Amendment) Bill 2014 and a written submission will be made before the standing committee on energy to whom the bill has been referred by the Lok Sabha Speaker," the Federation said in a statement.
Kirit Somaiya, who is the chairman of the Parliamentary Standing Committee on Energy, has invited representations on the amendment bill through a letter issued on January 14.
The Federation has decided to request the Government for a detailed deliberation with power employees and consumers before going for such a major amendment.
"Based on the experience gained over the years, splitting of power distribution has not yielded desired returns. If the bill is passed, it would allow multiple power suppliers which in turn will lead to total privatization of power supply in country.
"This is aimed to facilitate private houses which will get creamy profit while common consumers will be left at the mercy of loss making Govt utility and face power shedding," a federation spokesperson said.
He said that the concept of multiple supply licensees has been proposed in the bill by segregating the carriage from content in the distribution sector and determination of tariff based on market principles while continuing with the distribution network as a regulated activity.
He said that it was not clear as to how the proposed amendment will tackle the problems of state utility losses, rising tariffs and fuel availability which are the main challenges being faced by power sector of India.
Noting that India is a energy-starved nation, he termed the proposal of reducing price of power through competition as "impractical".
He said multiple licensee system will help only "cherry picking" and the deterioration of the incumbent public sector licensee, which will be only responsible for supplying electricity to the unprivileged common.
"This simply means nationalizing the losses and privatizing the profits," he said.
The government has said amendments proposed in the Bill would usher in much needed further reforms in power sector.
Among others, the Bill has proposed measures to enhance safety and security of electricity grids, separation of carriage and content in the distribution sector and promotion of renewable energy.
