Industrial consumers welcome Electricity Amendment Bill

He noted that the Opposition of the State government and the SEBs is understandable as any competition to the distribution monopoly would not be in the interest of its employees.
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Representative Image Reuters

CHENNAI: Even as the political parties and trade unions strongly opposed the Electricity Amendment Bill 2022, Tamil Nadu Electricity Consumers' Association, a representative body comprising industrial consumers, welcomed the proposed amendment that allows entry of private discoms, which would ensure reliable and better quality power at lower prices.

"The Bill attempts to give a choice to the consumer in the selection of the supplier of electricity. The present Bill attempts to enable private power DISCOMs to be set up and operated. It provides for the new private companies to use the transmission and distribution infrastructure of the existing DISCOMs by paying a charge similar to what is being paid by High Tension consumers who buy power from their DISCOMs. This scheme called the segregation of provision of infrastructure and supply of power is called the separation of Carriage and Content and is in operation in other countries,” D Balasundaram, former president of TECA, in a statement.

The provisions of the Bill are very necessary for the further growth of the electricity sector which is the engine of economic growth, he said, adding that the State governments and State Electricity Boards do not have the financial capacity to invest in capacity addition for generation and distribution.

He noted that the Opposition of the State government and the SEBs is understandable as any competition to the distribution monopoly would not be in the interest of its employees.

He said that the cost of free or subsidised power is borne by the subsidising consumers like industrial and commercial, Tangeco and State government. Private distribution companies cannot be compelled to supply free or subsidised power, he said, adding that the subsidising consumers might shift to the private DISCOMs if their tariff is less.“

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