AIPEF will vehemently oppose any move to introduce Shared Distribution Networks, Multiple Distribution Licensees and Other Anti-Public Provisions in the New National Electricity Policy
AIPEF will vehemently oppose any move to introduce Shared Distribution Networks, Multiple Distribution Licensees and Other Anti-Public Provisions in the New National Electricity Policy
New Delhi, July 15
Shailendra Dubey, Chairman, All India Power Engineers Federation (AIPEF), reacting to media reports that the Ministry of Power is likely to place the draft National Electricity Policy before the Union Cabinet next month, has strongly opposed the proposed policy changes and warned that AIPEF, along with electricity employees, engineers and workers across the country, will vehemently resist any attempt to implement these anti-consumer and anti-public sector reforms.
Shailendra Dubey stated that the reported proposals—including shared distribution networks, multiple distribution licensees, creation of a Distribution System Operator (DSO), exemption of large consumers from universal service obligations, reduction of cross-subsidies, and automatic tariff revision linked to inflation—are nothing but an indirect attempt to privatize the electricity distribution sector and weaken State-owned power utilities.
He said that allowing multiple distribution licensees to use the same network would enable private companies to cherry-pick profitable consumers while leaving State DISCOMs with the responsibility of supplying electricity to rural areas, agricultural consumers and economically weaker sections. This would seriously undermine the financial viability of public distribution companies and ultimately increase the burden on ordinary consumers.
Dubey further stated that linking electricity tariffs to inflation and providing for automatic annual tariff revisions would result in regular increases in electricity bills without adequate regulatory scrutiny, making power unaffordable for millions of domestic and small commercial consumers.
He also expressed serious concern over the proposal to reduce cross-subsidies and exempt large industries, railways and metro systems from cross-subsidy surcharge. Such measures, he said, would shift the financial burden onto domestic consumers, farmers and small businesses, defeating the very objective of providing affordable electricity to all sections of society.
The AIPEF Chairman reiterated that the proposal for a Distribution System Operator is designed to facilitate multiple distribution licensees and accelerate privatization. He said that these proposals are similar to the controversial provisions contained in the Electricity (Amendment) Bill, which have consistently been opposed by electricity employees, engineers, trade unions and several State Governments.
Shailendra Dubey appealed to the Central Government to withdraw all such proposals from the draft National Electricity Policy and instead focus on strengthening public sector power utilities, improving operational efficiency, reducing technical and commercial losses through investment, and ensuring affordable, reliable and universal electricity supply.
He warned that if the Central Government proceeds with these proposals, AIPEF will launch a nationwide movement in coordination with electricity employees, engineers, workers, trade unions and consumer organizations to defeat these anti-public and anti-consumer measures.
“The electricity sector is a public service, not a business opportunity for private5 profiteering. AIPEF will oppose every attempt to dismantle the public electricity distribution system and will continue its struggle to protect the interests of consumers, employees and the n
