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Standard bidding document for discoms not to reform power sector

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The All India Energy Engineers Federation (AIPEF) on Friday stated the draft normal bidding doc for discoms circulated by the ability ministry is to not reform the sector however to privatise it throughout the nation.

In September, the Ministry of Energy got here out with a draft Customary Bidding Doc (SBD) for privatisation of distribution licensees and sought public feedback on it until October 5.

It offers tips for states who need to supply their electrical energy distribution utilities to personal gamers to enhance operational effectivity and funds.

“The intention of the Ministry of Energy in dashing by means of SBD is to not reform the ability sector however to thrust privatization of the ability sector throughout the nation,” AIPEF spokesperson V Okay Gupta stated in a press release.

AIPEF in its submission of feedback has written that earlier than contemplating the SBD proposal, the basic situation of privatization of disocms itself isn’t agreed to since it’s the prerogative of the respective state authorities.

“It seems that the central authorities has taken the choice concerning privatization of distribution utilities(discoms) throughout the nation,” the assertion stated.

AIPEF has additionally included the feedback of former energy secretary EAS Sarma on SBD in its reply.

Sarma talked about that energy distribution community is of strategic significance and will probably be prudent to display the international traders earlier than permitting them to bid immediately or by means of sponsored bidders.

“Rental for the land at a nominal charge in SBD implies an invisible subsidy to the personal firm. This implies an incremental hidden revenue to the personal participant, which must be quantified,” AIPEF identified.

Whereas the workers are assured the identical service advantages as on the date of switch to the personal firm, the possible statutory situation stays considerably unsure in view of the adoption of intensive revisions within the labour legal guidelines, it added.

Densely populated city clusters are those that generate revenues for discoms who in flip deploy the identical for cross-subsidization of client teams in sparsely populated areas the place the unit value exceeds the unit income, it stated.

By transferring such revenue-rich clusters to personal gamers with 100 per cent fairness share, the federal government will damage the pursuits of discoms, it alleged.

Additional AT&C (combination technical & business) losses usually are not a dependable parameter for bidding, it identified.

The bidding format ought to encourage personal gamers to make optimum investments to scale back technical losses and enhance the standard of the ability provided, it instructed.

AIPEF stated discoms are already underneath monetary stress and the tariffs nonetheless have a niche between the typical value of provide and common income.

On this situation, for revenue seekers to function is not going to remedy the monetary crunch however somewhat deteriorate it, the physique added.

On this situation, for revenue seekers to function is not going to remedy the monetary crunch however somewhat deteriorate it, the physique added.

Part 63 of the electrical energy Act 2003 doesn’t lengthen to the analysis of distribution utility or its bidding/dedication, it added saying that almost all discoms shouldn’t have or haven’t maintained a hard and fast asset register.

First Revealed on Oct 9, 2020 07:05 pm

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