Costlier power- AIPEF demands a cap on profiteering by private power generators

Costlier power- AIPEF demands a cap on profiteering by private power generators

Kanwar Inder Singh/ royalpatiala.in

All India Power Engineers Federation (AIPEF) has demanded that a cap on profiteering by private power generators (IPPs) must be put in place by the regulators to stop exploiting shortage of electricity by raising the rate  to the range of Rs 20 per unit, said V K Gupta Spokesperson AIPEF.

AIPEF on Tuesday has written  a letter to Union Power Minister R K Singh has urged that under section 62 (a) of Electricity Act 2003 the appropriate Commission has  been empowered to fix minimum and maximum limits  or ceiling under shortage conditions. A meeting  of the Forum of Regulators  be held immediately to discuss the issue threadbare and  to stop black marketing of electricity in future.

It was necessary for state regulators as well as CERC to intervene and impose price caps to prevent excessive profiteering by IPPs and also to ensure that the  unbearable burden is not put on consumers of Discoms.

The profiteering by IPPs  goes against  the letter and spirit of Electricity Act 2003 section 61 (d) “Safeguarding of consumer interest and at the same  time recovery of the cost of electricity in a reasonable manner”
Padamjit Singh Chief Patron  AIPEF said that since coal shortage is  recognized as a major factor causing a hike in power rates, the power ministry must stress for ending future coal shortages  otherwise, the results of 2021  would repeat.

Costlier power- AIPEF demands a cap on profiteering by private power generators. Like in the  United Kingdom where Ofgem  continue to regulate the prices and quality standards of electricity  suppliers until  they consider that competition is sufficient to meet their principal statutory  objective of protecting the interests of consumers, having regard to their other duties including the protection of vulnerable groups.  On the similar lines, it is necessary for regulators  to protect consumer interest by imposing price caps.

V K Gupta  has also expressed its concern about the closure of ultra mega power plants of Tata and Adani at Mundra which are run by imported coal and have nothing to do with the present coal crisis in country and also heavy backing down of IPP’s in Rosa, Lalitpur, and Bara adding to the crisis.