Proposed delicensing of power distribution evokes mixed reaction in Bengal

The proposed move by the Centreon delicensing power distribution business to inducecompetition has evoked mixed reaction.

A discom official said it will impact the smallconsumers adversely and benefit the bulk users.

Former West Bengal State Electricity RegulatoryCommission chairman R N Sen on the other hand welcomed thereform mooted by the Centre in Electricity Bill (Amendment),2021 stating it will be pro-consumers.

However, implementation methodology will be crucialfor its success, he said.

A senior West Bengal government official said theauthorities will react after the meeting of the union powerministry with state power secretaries and top officers of thediscoms on Wednesday where the proposed amendments to theElectricity Act 2003 will be discussed.

But he expressed apprehension that the Centre mayhijack the power vested on the states by the Act through theamendments.

The financial losses of state-run distributionlicensees jumped 83 per cent to Rs 61,360 crore in FY19.

The delicensing of power distribution is expected tobe a key reform as it aims to provide more choices toconsumers by allowing other operators to run distributioncompanies without any restriction in a bid to induce higherefficiency in the sector.

The Bill proposes that state governments create auniversal service obligation fund in which any surplus withany operator on account of cross subsidy or cross subsidysurcharge or additional surcharge will be deposited,'' Sensaid.

The major challenge will be accounting and sharing ofAT&C losses and quality of service to the consumers of rivaloperators, he added.