Punjab Newsline
HPSEB employees contest heavy losses claim on reorganisation of HPSEB
VINOD KUMAR GUPTA
Thursday, 03 September 2009
SHIMLA:HPSEB employees and engineers has contested the claim of bureaucracy that the reorganization of HPSEB as per model suggested by them shall lead to incurring heavy losses.

Suneel Grover convener of the Joint front of HPSEB employees and engineers said in a press conference that there is no truth in rumours being spread by vested interests that model proposed by them for reorganization of HPSEB shall lead to heavy losses .The rumors are being spread by vested interests to misguide the state government

Grover said that as per Electricity Act, 2003, Transmission licensee, State transmission undertaking and State load dispatch center (SLDC) cannot engage in trading, it has been suggested by the joint front that trading of power be separated from the proposed HPSEB Ltd. The creation of a separate trading entity shall not lead to incurring heavy losses as is being reported.

Grover clarified that there is no cap of margins on the Generators of Electricity in the Act and the State Governments can sell their share of Power in various projects available to them in the open market or to any utilities under bilateral arrangements on the prices arrived at through competitive bidding or negotiations as is being made out. The norm of CERC on Trading Margin of 4 paise is on Electricity Traders and is not applicable to Electricity Generator.

Grover further stated that the sale of 1198 million units sold by HPSEB during 2007-08 includes the power sold by HPSEB by way of Banking, Unscheduled Interchange to the tune of 611 million units and these transactions do not require any trader to whom a trading margin is required to be given. The rumor that HPSEB would have got Rs. 4.9 crore only out of the sale proceeds of the 1198 million units is not understandable. The question of any loss to the order of 1500 crore as being reported, does not arise

HPSEB is selling and purchasing a very small quantum of power from/in the open market or through Indian Energy Exchange to the order of 200 million units HPSEB can effect such sale and purchase under bilateral arrangements as the Act provides that if certain price is arrived at between the seller and the purchaser, the intervention of regulator is not at all required, which interalia means that no trading margin is involved.

Grover further reiterated that there should not be any day-to-day operational problems to HPSEB as is being reported. He resented that such reports are a result of distortion of facts ostensibly to misguide the Government of Himachal Pradesh on the issue of restructuring of the Board, at the behest of vested interests of Bureaucracy in the State.
He stated that Generation, Transmission and Distribution need to work in tandem so that the moment electricity is generated it is delivered to the consumers. Segregation of these units shall not only create chaos but shall also hamper the availability of power supply to the consumers. Thus, keeping HPSEB as a vertically integrated utility is in the best interests of the public of Himachal Pradesh.