AIPEF seeks rejection of parallel licence for Gurugram and Nuh
CHANDIGARH: The All India Power Engineers Federation (AIPEF) has sought rejection of an application by Eleven Power Private Limited for grant of a distribution licence for Gurugram and Nuh. The grant of a parallel licence in revenue-rich areas is contrary to public interest and detrimental to the financial viability of DHBVNL.
Shailendra Dubey Chairman AIPEF has written a letter to Haryana Electricity Regulatory Commission (HERC) on Friday submitting its objections against the proposal for grant of a parallel distribution licence in the revenue districts of Gurugram and Nuh.
The letter mentions that the applicant has no track record in electricity distribution and operational capability. No credible evidence has been produced regarding distribution network readiness, consumer service infrastructure, SCADA and control systems ,substation development plans, emergency response systems and disaster management arrangements.
V K Gupta media advisor AIPEF said that parallel licensing leads to duplication of infrastructure, consumer service systems, metering arrangements , increased administrative expenditure, right-of-way disputes , operational complexities.
The proposal is clearly aimed at attracting high-paying industrial, commercial and premium consumers concentrated in Gurugram and adjoining areas. The proposed licence area contributes approximately 27.54% of DHBVNL's total revenue. Gurugram supplied 7794 million units worth Rs.6386 crores. Granting a parallel licence in such a lucrative area would enable migration of high paying consumers and severely erode DHBVNL's revenue base.
DHBVNL and Haryana Power Purchase Centre (HPPC) have entered into long-term power purchase agreements based on the demand of the entire licensed area. If high-value consumers migrate, existing contracted power may become surplus, capacity charges will continue to be payable, transmission commitments will remain and consumers remaining with DHBVNL will bear stranded costs.
The petitioner proposes substantial dependence on renewable market purchases and external procurement arrangements. However, no comprehensive transmission access plan has been established, no adequate proof of network access availability has been demonstrated , gid security implications have not been fully assessed, and impact on load flow and system stability remains unexamined.
Moreover, critical issues remain unresolved, such as security deposits, outstanding arrears, metering arrangements, supplier of last resort obligations, consumer grievance redressal, network access arrangements and insolvency or exit of a private licensee.
Experience from various states demonstrates that privatization and parallel licensing do not automatically result in lower tariffs or improved consumer welfare.
AIPEF has prayed to HERC that no parallel licence application be considered until a comprehensive consumer migration and multi-licensee regulatory framework is notified. HERC should order an independent technical and financial impact assessment regarding grid security, stranded power purchase liabilities, transmission commitments and tariff impact and to safeguard employee interests.
What's Your Reaction?
Like
0
Dislike
0
Love
0
Funny
0
Angry
0
Sad
0
Wow
0
