Electricity Amendment Bill to be introduced in Parliament today: Why power sector employees are opposing it?

The Centre will introduce the Electricity Amendment Bill or the Energy Conservation (Amendment) Bill, 2022 in the Parliament’s ongoing Monsoon Session on Monday. 

The bill aims to ensure the entry of private companies into the electricity distribution sector and seeks to enable power consumers to choose from multiple service providers as in the case with telecom services. 

The bill also seeks to amend section 62 of the Electricity Act so as to make provisions regarding graded revision in tariff over a year and for mandatory fixing of the maximum ceiling as well as minimum tariff by the appropriate (electricity regulatory) commission. 

It proposes that a discom can use other power distribution licensee's network. The bill also seeks to strengthen payment security mechanism and give more powers to regulators. 

Why are power engineers and employees opposition the bill?

All India Power Engineers’ Federation (AIPEF) has urged Prime Minister Narendra Modi that the Electricity (Amendment) Bill 2022 should be referred to Parliament’s standing committee (PAC) on energy for detailed discussion with all the stakeholders. 

“Power engineers and employees from all over the country will stop the work immediately and protest on August 8 if the bill is tabled in Parliament,” AIPEF spokesperson VK Gupta said.
AIPEF Chairman Shailendra Dubey said that the claim of providing a choice of multiple service providers to power consumers in the Bill is 'misleading' and will make state-run discoms loss making entities.

"As per the bill, only government discoms will have universal power supply obligation therefore private licensees will prefer to supply the electricity in profit making areas only i.e.industrial and commercial consumers," he told PTI.

“Thus profit making areas will be snatched from government discoms and government discoms by default will become loss making companies and in the coming days will not have money to purchase electricity from generators,” he further said.  

SKM warns Centre against passing Electricity Amendment Bill 2022 

Farmers' body Samyukta Kisan Morcha (SKM) has warned the Centre against tabling and passing the Electricity (Amendment) Bill in the Monsoon Session of the Parliament.  

The SKM in a statement said, "Withdrawal of this Bill was one of the main demands of the year-long farmers' struggle." The SKM also gave a call for immediate massive nationwide protests if the Electricity (Amendment) Bill 2022 is tabled/passed.

(With inputs from agencies)

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