Chandigarh Power Dept in profits, will privatisation help?
Dushyant Singh Pundir
Tribune News Service
Chandigarh, July 9
Despite being in the pink of condition, the Centre is bent on giving the UT Electricity Department into the private hands. The department has been generating profit for the past five years. In 2017-18, the department had earned a record profit of Rs 258 crore with the line loss of 9.51 per cent, which is below the 15 per cent target fixed by the Ministry of Power.
The department has also been conferred with the Utility Award. Contrary to, by and large, smooth functioning of the Chandigarh Electricity Department, the Centre on May 12 last year, had decided to privatise the electricity distribution in all the Union Territories.
The UTs were told that the move would provide them an opportunity to leverage the private sector efficiency in the distribution sector for improving the quality of service and enhancing consumer satisfaction. It will also set an example for other states, the Centre had said.
However, the move is being opposed by the UT Powermen Union and Resident Welfare Association (RWA) in Chandigarh.
The decision of the government to privatise the distribution and supply of the Electricity Department by selling off its 100 per cent stake is in contravention of the provisions of the Electricity Act, 2003, said Gopal Datt Joshi, general secretary, UT Powermen Union.
In comparison to the power being supplied in Chandigarh, residents of the neighbouring district of Mohali are the worst affected as they are not only facing unscheduled power cuts amid the peak summer season, but also paying high tariff. The situation is relatively better in Panchkula. Due to continuous power cuts, people in Zirakpur and other parts of Mohali are having a harrowing time.
Zirakpur resident Aman Verma said: “We are having sleepless nights as there has been no power supply for the entire night for the past three days.” “Last night, power supply was there, but voltage was very low,” Verma added.
The electricity rate in Chandigarh is Rs 2.50 per unit up to first 150 units and no single paisa has been enhanced in the last five years. On account of being revenue surplus, the Joint Electricity Regulatory Commission (JERC) has approved a reduction in the tariff for all categories of more than 2.34 lakh electricity consumers in the UT for 2021-22.
“Even after acute shortage of men and material, the standard performance is being implemented 100 per cent and 24×7 uninterrupted power supply is being provided to the consumers. There is no reason to sale out 100 per cent share of the department to a private money monger,” said Joshi.
Expressing similar views, Mani Majra resident Manjit Singh said the tariff in Chandigarh was much lower in comparison to other parts of the country. “But once the sector is privatised, the rates can go up as the private player will try to earn as much profit as possible,” he feared.
“Privatisation is not going to give any benefit to either the Administration or the residents, but it will certainly benefit the private firm,” Manjit added.
Meanwhile, Hetesh Puri, chairman, Chandigarh Residents Associations’ Welfare Federation (Crawfed) supported the idea of privatising the power sector.
“There is a fear in the minds of the people that rates can go up after the privatisation. After the privatisation, the theft of power will stop and also, equipment and infrastructure will be upgraded, which will provide quality service to the people,” he said.
