AP to seek changes in Electricity Act T SUNIL REDDY

TIMES NEWS NETWORK[ THURSDAY, SEPTEMBER 11, 2003 01:44:04 AM ]

HYDERABAD: The state government will shortly write the Centre seeking amendments to certain provisions the Electricity Act, 2003.

A cabinet sub-committee, constituted to discuss the implications of the new Act, held several rounds of discussions and found that at least two provisions — one on captive generation and another on allowing private players to distribute power — will harm the interests of state government. The subcommittee will meet here on Thursday to finalise AP's stand on the issue. According to sources in the energy department, the new Act allows an association of members to generate captive power. Currently, either an individual or an organisation is allowed to generate power for their own consumption. The sources said ‘association of members' is a vague term,which can be exploited by scrupulous elements later. As per the new Act, the members can form a society and purchase power from a generating unit and, in turn, will get certain waivers on the surcharge being charged by the government.

The cabinet committee was of the opinion that it would be difficult to prevent big consumers from forming a society to get tax benefits once the Act comes into force from December 9 this year. The state government will request the Centre to amend the Act suitably to prevent the loss to the exchequer. The new Act allows more than one player in a given area to distribute power and the consumer will have a choice to purchase electricity. The committee feels that the competition between distributors would result in neglecting the poor and agriculture sector, as both contribute very little revenue and it would burden the government further. As of know, the state government is charging the industries and big domestic consumers more, and crosssubsidising the small consumers and agriculture users.