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VOICE OF ELECTRICITY WORKERS
Scrap Electricity Act 2003 -
EEFI
Electricity Act 2003 has come into force with effect from June 10th 2003. If any
state government desires, the repealed laws can be kept in force for another six
months, by using the provision of the act itself. The existing Electricity
Boards can continue only upto June 10th of 2004.
This enactment is made to provide a legal framework for the total privatization
of the Electricity Industry and as a prelude to unbundle the electricity Boards
and subsequent shift into the deregulation and market driven pricing of power.
The provision for open access to transmission system, de-licencing of
generation, allowing multiple players in transmission and distribution, removing
social control of power industry are the clear cut path of the notorious Enron
founded American model of the Power industry.
The Act leads to the following among other things:
1. The abundant water resources in the country can be exploited for minting
profit by any private investor who gets statutory clearance from the concerned
government department, which is easy for private capital in the present system.
2. The assets of electricity Boards will be handed over to private capital at a
very concessional price as we have seen in DVB privatization.
3. Further rural electrification will be in doll-drums. As this is a loss making
business, no company can take up this task. 2/3 of the households in India are
still to be electrified. (In Sonabhadra district of UP where this conference is
held and in the adjacent area of MP 7129 MW are generated which is about 7% of
the total generation of India while half of the villages in this districts are
still to be electrified where the majority of the people living are poor
agricultural workers).
4. The issue of the transmission licenses will lead to fragmented transmission
system, instead of integrated transmission system which will lead to opening up
of anarchy in transmission system and may further lead to massive power failure
as we saw in USA and Canada on August 15th.
5. There will be Regulatory Commissions both in the center and state which are
neither accountable to Parliament nor Legislative Assembly, with enormous
powers.
6. By elimination of the subsidy, cost of power will become unaffordable to
majority of Indian population, covering the lower middle class in urban and
rural areas, public utility services like schools, colleges, transport,
hospitals, sports complexes etc, agricultural sector and small-scale industry.
The cost of agricultural production including food crops will go high and
consequently the whole population will be affected. An illusion is created by
the apostles of privatization that as a result of introducing competition among
multiple players in the power generation, transmission, distribution and trade,
the tariff will come down. It is a false notion. The National and International
experience negates this propaganda. Only a small section of the people i.e., the
affluent class get the advantage of it.
7. The definition of the captive power as per the provisions of the act enables
those who can pay surcharge for providing supply, to escape from paying the
surcharge and utilize the existing transmission system for bringing power from
anywhere they like.
8. The service conditions of the employees will be affected both in public and
private sector. Utilizing this opportunity, 50% of the staff reduction proposed
by CESC management is a typical example in private sector.
9. In order to manipulate the cost of installation to fetch higher tariff
approved by the regulatory commission the private companies will be importing
plant and machinery thereby creating adverse effect on the self-reliance of the
country.
So the new enactment is to safeguard the interest of the big private capital
both Indian and Foreign contrary to the dreams and vision of the freedom
fighters and Nation builders. The Chairmen, Parliamentary Standing Committee on
Energy and a few of the chief ministers of the country brought many of the above
criticisms.
Even though in letter and spirit the intentions of Electricity Act 2003 are the
above,
there are some provisions in the act itself which can be used in the present
federal setup of the country to keep the erstwhile Electricity Board as a single
entity.
The 5th Conference of EEFI demands that the Electricity Act 2003 be
repealed/replaced and a new law should be brought to uphold the dominant role of
CEA to suit the federal set up of the country, SEBs and CPSUs in the interest of
our National objectives "Power for all, Quality Power on demand and power at
affordable rates". The Electricity Boards should be kept intact as a single
entity company/corporation till then to obviate the difficulties to the
consumers, employees and the nation. The conference also demands that sufficient
budgetary support should be provided by GOI for power development to the state
to achieve planned, balanced development of the country. This conference calls
upon all the electricity employees of the country to involve in a massive
campaigns and agitations exposing the evils of Electricity Act 2003 and fight
back joining with the people at large including the peasantry to achieve the
above goals.
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