Taking away States’ ‘power’

Electricity cannot be viewed in isolation but as part of a broader programme dealing with the States' social and economic development

The much-talked about draft Electricity (Amendment) Bill is once again hogging the limelight with many States, including Telangana, strongly opposing it terming it as a ‘draconian’ law aimed at corporatising the power sector and snatching powers from the States.

Though the Centre is yet to table the Bill in Parliament, much debate is taking place on its various provisions since drastic amendments to the Electricity Act, 2003, were proposed in it ignoring the interests of consumers and putting more burden on them.

Pre-Division Days

From frequent power cuts, irregular supply of power for the agriculture sector to industrial power holiday at least for two days in a week, Telangana has faced several problems for getting power supply uninterruptedly.

Flat owners, businessmen and industrialists used to rely on inverters and generators to meet their power supply requirements during summer. Farmers faced problems galore since they got just six hours of supply and that too in a phased manner and sometimes only at night, leaving them completely confused. In some instances, farmers got electrocuted while switching on pumpsets at night to supply water to the fields. Some lost their lives to snakebites. This was the pathetic situation of power in Telangana in united Andhra Pradesh.

Post Division

After the formation of Telangana, the situation changed completely. Chief Minister K Chandrashekhar Rao has strengthened power utilities for generation, distribution and transmission in a strategic manner, resulting in uninterrupted power supply to all sectors in the State.

For the last seven-and-a-half years, the Telangana government has created history by supplying power to all categories of consumers. It is only the TRS government which is supplying 24-hour free power to the agriculture sector in the country.

The proposed amendments will not only burden consumers with extremely high rates but also pave the way for the private sector to participate in the distribution of electricity

The Central government’s proposed move to introduce reforms in the power sector may undermine the fruits of uninterrupted power to all sectors in the State and put consumers and power utilities in trouble, says Mohammed Abdul Vazir, president of Telangana State Power Employees Union.

The Centre is contemplating introducing reforms in spite of stiff opposition from the employees, political parties and several States including Telangana, West Bengal and Kerala.

Hurting Consumers

As part of reforms, the Centre proposes to install meters to agricultural pumpsets and force the States to buy renewable energy. “It is the Central government which is insisting to install electric meters to motors in agricultural lands,” points out Vazir, alleging that the Centre’s laws and its decisions will lead to multiple problems in the States.

According to experts, the draft Bill will not only make electricity unaffordable for consumers but also take over States’ power to determine tariffs and subsidies. They also reflect a striking tendency to burden the States while providing no financial or technical support. They say electricity utilities are under severe strain and require significant support in terms of technology and finances. These amendments will not help the utilities but will only exponentially increase costs for consumers leaving them with few safeguards.

The amendments will not only burden consumers with extremely high rates but also pave the way for the private sector to participate in the distribution of electricity.

In Telangana, power bills for farmers are borne by the State government. The 24-hour free quality power supply since 2018 has played an important role in mitigating farmer suicides and also contributed to the State’s food security. By modifying tariff policies according to their specific needs, the State governments have also attracted investments in job-creating sectors. Therefore, electricity cannot be viewed in isolation, but as part of a broader programme dealing with the States’ social and economic development.

The 2003 Act

The 2003 Act permits States to provide a subsidy to any class of consumer. This enabled the State governments to set lower electricity rates for households while setting a higher price for industries. However, the draft Bill will do away with subsidised tariffs, stress experts.

Under the Renewable Power Purchase Obligation, every obligated entity should purchase from private renewable energy sources

Telangana State Electricity Assistant Engineers Association general secretary M Anil Kumar says if the cross-subsidy was abolished, then there is no chance of collecting low charges from consumers in rural areas. The State government has to face a monthly financial burden to give subsidies under the direct benefit transfer scheme proposed in the Bill, he explains. “This might also force the States to gradually reduce subsidies or withdraw them.”

A farmer, who is now getting free power supply for his agricultural land, would be forced to pay Rs 1,500 every month towards charges. Another proposal pertaining to Renewable Power Purchase Obligation (RPPO) is aimed at weakening the government-run power plants, he says, adding that under the RPPO, every obligated entity should purchase from the private renewable energy sources.

Though south India, including Andhra Pradesh, is facing power problems, the Telangana government was able to supply power continuously because of a series of steps taken in advance after the formation of the State.

The 2003 Act permits States to provide subsidy to any class of consumer, which enabled State governments to set lower rates for households while setting a higher price for industries. The draft Bill will do away with subsidised tariffs, say experts  

Powering Telangana

The TRS government dispelled doubts expressed by former Chief Minister of undivided Andhra Pradesh N Kiran Kumar that Telangana would face a complete blackout if Statehood was given to it. At a time when consumers, especially farmers, were yielding desired results with free quality power supply to them, the Centre’s decision will jeopardise the hard work put in by the State government in the power sector since 2014. “When everyone is happy with the power supply situation in the State, why is the Central government creating unnecessary problems?” he asks.

Since there has been no role of the Centre so far in the power supply issue, Telangana achieved tremendous progress in the last seven years, especially in metropolitan cities like Hyderabad where an electrical network was created similar to road and other networks.

The State government spent Rs 33,722 crore in the last seven years to ensure supply of quality power to the people. According to officials, power is supplied to 168 lakh consumers and new connections have gone up to 57 lakh while agriculture motor connections increased to 26 lakh from 19 lakh. EHT (Extra High Tension) lines were laid covering 26,915 km while electricity lines were laid covering 2,00,000 km. Around 1,000 33/11 KV sub-stations were established and an additional 2,000 power transformers were provided. Three lakh new distribution transformers were also provided and an uninterrupted power supply was ensured during the pandemic.

Officials recalled how the meters were removed following the advice from Narla Tata Rao, who was a prominent person in the power sector and former Chairman of Andhra Pradesh State Electricity Board, owing to maintenance problems coupled with several other issues that were causing difficulties to farmers.

“It is also going to be a huge burden for installing meters for 25 lakh connections with the latest technology if the Centre insists States to do so,” says Telangana State Northern Power Distribution Company Limited (TSNPDCL) Chairman and Managing Director A Gopal Rao. More than Rs 18,000 would have to be spent on installing each meter. “When electricity is generated, it should be utilised and in some areas when there is plenty of rain, there will be no demand. There will be high load demand during the day and less at night. We have to identify this difference and plan it accordingly to supply power. That was the main reason the Telangana Chief Minister accorded priority to the power sector,” says Gopal Rao.

The Centre’s proposals in the draft Bill said meters should be installed on motors and then again said these should be installed on transformers to know the amount of power consumed at each meter

Paddy production has also increased and, as a result, Telangana is now competing with Punjab in paddy. Every cent of agricultural land is being cultivated due to the availability of water from canals and the Kaleshwaram Lift Irrigation Scheme in addition to the water drawn from borewells. The continuous supply of water and round-the-clock supply of power helped in increasing paddy production.

No Clarity

However, the Centre’s proposals in the draft Bill are quite confusing. It said that meters should be installed on motors and again says that these meters should be installed on transformers to know the amount of power consumed at each meter.

“There is no clarity till now,” a senior official in the energy department says. In 2020, the Telangana legislative Assembly unanimously passed a resolution against the Electricity (Amendment) Bill and asked the Centre to withdraw it. But the Minister for Power and New and Renewable Energy RK Singh, on Feb 15, termed the Chief Minister’s recent statement that the Centre was putting pressure on  the States to meter farmers’ electric connections as false.

He clarified that the Centre was not forcing any State to buy renewable energy from any particular developer. “The States are free to hold their own bids and buy renewable energy from any developer based on those bids,” he said.

TS’ Strong Connection

• Power is supplied to 168 lakh consumers
• New connections at 57 lakh
• Agriculture motor connections increased to 26 lakh from 19 lakh
• Power is supplied to agriculture sector for 24 hours as against 6 hours before 2014
• Uninterrupted power supply ensured during pandemic
• Rs 33,722 crore spent for strengthening energy sector in Telangana
• EHT lines laid covering 26,915 km
• Electricity lines laid covering 2,00,000 km
• 1,000 33/11 KV sub-stations established
• Additional 2,000 power transformers provided
• 3,00,000 new distribution transformers also provided
• Telangana is the only State which is supplying 24X7 power to agriculture sector from January 2018
• Agriculture power consumption has increased nearly 77%
• The government is incurring Rs 75,000 for each connection

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