AIPEF against backdoor privatisation of power distribution through parallel licensing
CHANDIGARH: All India Power Engineers Federation (AIPEF ) is strongly against backdoor privatisation of power distribution through parallel licensing . After failing repeatedly to push amendments to the Electricity Act, the proposed framework, the grant of Parallel Distribution Licences, was discussed by the Consultative Committee of the Ministry of Power , said Chairman Shailendra Dubey.
AIPEF has warned that permitting private companies to use the distribution network created and maintained by public sector DISCOMs would amount to a betrayal of public utilities and would ultimately weaken and financially cripple State-owned electricity distribution companies.
The claim that parallel licence to private companies will improve the quality of power supply is misleading. Power supply quality depends on the strength, maintenance and expansion of the distribution network. This is nothing else but backdoor privatisation in its clearest form.
“If the ownership, operation, maintenance and upgradation of the network remain entirely with the Government DISCOM, how can the mere entry of a private billing company improve the quality of electricity supply? Service quality depends on the strength and reliability of the distribution network—not on who issues the electricity bill. The claim of improved service is therefore misleading. The real objective is to allow private companies to earn profits by using public infrastructure built with public investment.
If any interruption in electricity supply occurs because of faults in the distribution network, the responsibility will continue to rest with the state Discom and not with the private parallel licensee . Public utilities will continue investing in and maintaining the network. Private companies will be free to target high-revenue consumers using the same public infrastructure. The financial viability of public DISCOMs will be undermined, ultimately threatening universal service obligations and affordable electricity for all.
V K Gupta media advisor said that it is no coincidence that the issue of parallel distribution licences has become the new battleground across the country. After strong resistance in Karnataka, the focus has now shifted to Haryana. We must remain vigilant because any such model, if implemented, will become a precedent for the entire country.
The biggest stakeholders in the electricity sector are consumers and power employees. Before taking any decision, the Ministry must hold meaningful consultations with employee and engineer federations, consumer organisations, State utilities and other stakeholders. No policy that fundamentally alters the structure of electricity distribution should be imposed without consultation
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