The All-India Power Engineer’S Federation (AIPEF) has flayed the new power tariff policy announced by the Union government earlier this week. The engineer’s body said that the power tariffs could go up, after the Cabinet gave its approval for an amendment to the Power Tariff Policy to allow producers to pass on the effect of any change in domestic duties, levies, cess and taxes.
Chairman of the AIPEF Shailendra dube said here on Thursday that due to this amendment of automatic pass-through provision it has been welcomed by the industry as a move that will remove ambiguity and uncertainty for competitively bid projects. He said the amendment to the tariff policy also allows for pass-through of the cost of sourcing coal if Coal India fails to meet its fuel supply commitments. Simultaneously, the policy allows developers to expand their plants by up to 100 per cent of their capacity through the automatic route.
The tariff policy also allows power plants to sell the surplus electricity through power exchanges. He said that most of the provisions in new tariff policy are aimed at to benefit the corporate houses which will have impact on tariff for all categories of power consumers.
Shailendra Dubey said that out of 4 Es as stated by Union Power Minister Piyush Goyal — Electricity for all, Efficiency to ensure affordable tariffs, Environment for a sustainable future, Ease of doing business to attract investments and ensure financial viability, new policy seems to be aimed at to benefit fourth E that is Ease of doing business.
He said that it is not clear in the new policy that how state regulators will ensure Electricity for all at affordable rates without any clearly defined road map. He said that without review of ongoing power policy of overdependence on private houses it is not possible to provide power to all at affordable rates. He demanded from the Union government to analyse and review the actual reasons of mounting losses of Power distribution companies (Discoms) which are now more than about Rs 4.3 lakh crore and debt of about Rs 3.8 lakh crores. He said that with more than Rs 8 lakh crore losses and debt how the DISCOMS will be able to provide cheaper electricity is a million dollar question and answer to this question has not been given by the Union government.