Power engineers demand debate on franchisee system

V K Gupta

15 January, 2012

Haryana Power Engineers Association has sought public debate on privatization of power distribution in state. They have also opposed the introduction of franchise system in power distribution.

HARYANA POWER Engineers Association has demanded the public debate on franchisee system while opposing the proposed introduction of franchisee system in power distribution in best maintained and high revenue circles of state. The association commits itself to reduce the line losses to improve the financial position of utilities.
The Association in its meeting held on Saturday deliberated upon the problems being faced by engineers and utilities. The meeting was chaired by R S Dahiya President of Association and was attended by Padamjit Singh Chairman All India Power Engineers Federation.
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R S Dahiya said that the association welcomes the recommendations of Shunglu Committee on restructuring of loans by the public sector banks and annual revision of tariff. The association opposes the suggested privatization of power distribution in all the main cities of state with a population of more than 3 lakhs.

Dahiya said that Government should debate the issue of privatization of power sector with all the stake holders. The debate would also help in suggesting the ways to improve the technical and financial performance of utilities.

The franchisee system where ever introduced in country has not benefitted any of power utility of country but has only benefitted the private company. Franchisee is using power utility money to invest in infrastructure and its own day-to-day expenses. It is not even passing on the dues collected from city to utility preferring to let the bills mount
The franchisee company is not paying back even the monthly revenue committed on one pretext or other. Politicians are forcing power utilities to resort to high cost power purchase and then gives to franchisee at cheap rates.

The restructuring of Discoms, which has not been undertaken even once has resulted in deficient consumer services. In absence of regular staff the day to day working is largely affected. The restructuring of Discoms will help in reducing line losses and utilities will earn more for the same quantum of power supply.

The association, criticized the working of finance wing of utilities, which are not implementing the office orders of state regarding grant of increment at the time of promotion. The extension to superannuated senior engineers at the level of Director and Chief Engineers was also opposed. The association demanded the revival of posts of Engineers-in –Chief.