6th June, 2016
Mr Arvind Kejriwal,
CM Delhi
Subject : ELECTRICITY, DERC, DISCOMs :
Dear Sir,
Our system has forced us to bear the Monopolistic practices of DISCOMs, as we don’t have any choice. We are forced to have a connection only from a specific service provider, at any RATE ( power tariff & regulatory assets ) they want, at any QUALITY ( fluctuations & low voltages ) they offer and at any QUANTITY ( outages ) they could give to the consumers and that too, in the absence of any CAG or RTI.
Please go through the Electricity Act as below and see, at how many places it talks about the competition as well promotion of competition :
THE ELECTRICITY ACT, 2003 [No.36 of 2003] [26th May, 2003] An Act to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto.
Section 23. (Directions to licensees): If the Appropriate Commission is of the opinion that it is necessary or expedient so to do for maintaining the efficient supply, securing the equitable distribution of electricity and promoting competition, it may, byorder, provide for regulating supply, distribution, consumption or use thereof.
Section 60. (Market domination): The Appropriate Commission may issue such directions as it considers appropriate to a licensee or a generating company if such licensee or generating company enters into any agreement or abuses its dominant position or enters into a combination which is likely to cause or causes an adverse effect on competition in electricity industry.
Section 61. ( Tariff Regulations ) : (c) the factors which would encourage competition, efficiency, economical use of the resources, good performance and optimum investments;
Section 62. (Determination of tariff): Provided that in case of distribution of electricity in the same area by two or more distribution licensees, the Appropriate Commission may, for promoting competition among distribution licensees, fix only maximum ceiling of tariff for retail sale of electricity.
Section 79. (Functions of Central Commission): 2 (ii) promotion of competition, efficiency and economy in activities of the electricity industry;
Section 86. (Functions of State Commission): 2 (i) promotion of competition, efficiency and economy in activities of the electricity industry;
Section 131. (Vesting of property of Board in State Government): (5) A transfer scheme under this section may- (a) provide for the formation of subsidiaries, joint venture companies or other schemes of division, amalgamation, merger, reconstruction or arrangements which shall promote the profitability and viability of the resulting entity, ensure economic efficiency, encourage competition and protect consumer interests;
But in reality, there is no competition at all. The truth is that, our system has forced us to bear the Monopolistic practices of DISCOMs, as we don’t have any choice. We are forced to have a connection only from a specific service provider, at any RATE they want, at any QUALITY they offer and at any QUANTITY they could give to the consumers and that too, in the absence of any CAG or RTI.
May i request you to please look into the above issue & do the needful for the benefit of Delhiites ?
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