New Delhi: West Bengal Chief Minister Mamata Banerjee is trying to save Kolkata’s private monopoly in electricity distribution by opposing the draft. Electricity Amendment Bill According to Union Power Minister RK Singh, by 2021, or so state officials did not “properly” inform him on proposed reforms, such as providing consumers with the option to choose suppliers based on quality of service and affordable tariffs.
“At present, people have no choice, they have to stick with a distribution company (discom) even if it is disabled, has poor service and tariffs are high. For example, the private distribution company in Kolkata has the highest tariff in the country and is a monopoly. If the proposed amendments take place, that company will face competition. Why you want to protect this private company from competition is not clear,” Singh wrote to Banerjee on Monday.
Banerjee had written to the prime minister last month opposing the provision to end state or private monopolies by licensing distribution, among other issues, and the vision of several players – including state utilities – to offer consumers a choice of suppliers. was offered the same way. in mobile telephony.
“It seems that your officers have not informed you properly. The bill which is under consideration in the government… is very different from the bill which was circulated in 2020,” wrote Singh, questioning the reasons for his objection to a proposal that seeks to reduce consumer charges through competition. Is.
Singh said state utilities will continue to function once distribution licenses are obtained, but they will have to compete with others on efficiency, quality of service and tariffs.
Singh termed Banerjee’s complaint to the prime minister as “wrong” that the bill was drafted without consultation with the states. “The draft bill was circulated to all the states for their comments. After receipt of comments, sector wise detailed discussions were held with the states,” wrote the power minister.
Singh wrote that the current Electricity Act already provides for more than one discom to operate in an area and cited Mumbai as an example. “So this is nothing new. Delicensing will lower barriers to entry and increase competition, leading to lower tariffs and better services. We licensed generation in 2003. Now generation is not by license but by laws, is governed by rules and regulations. This will happen when we license the distribution,” wrote the minister.
“At present, people have no choice, they have to stick with a distribution company (discom) even if it is disabled, has poor service and tariffs are high. For example, the private distribution company in Kolkata has the highest tariff in the country and is a monopoly. If the proposed amendments take place, that company will face competition. Why you want to protect this private company from competition is not clear,” Singh wrote to Banerjee on Monday.
Banerjee had written to the prime minister last month opposing the provision to end state or private monopolies by licensing distribution, among other issues, and the vision of several players – including state utilities – to offer consumers a choice of suppliers. was offered the same way. in mobile telephony.
“It seems that your officers have not informed you properly. The bill which is under consideration in the government… is very different from the bill which was circulated in 2020,” wrote Singh, questioning the reasons for his objection to a proposal that seeks to reduce consumer charges through competition. Is.
Singh said state utilities will continue to function once distribution licenses are obtained, but they will have to compete with others on efficiency, quality of service and tariffs.
Singh termed Banerjee’s complaint to the prime minister as “wrong” that the bill was drafted without consultation with the states. “The draft bill was circulated to all the states for their comments. After receipt of comments, sector wise detailed discussions were held with the states,” wrote the power minister.
Singh wrote that the current Electricity Act already provides for more than one discom to operate in an area and cited Mumbai as an example. “So this is nothing new. Delicensing will lower barriers to entry and increase competition, leading to lower tariffs and better services. We licensed generation in 2003. Now generation is not by license but by laws, is governed by rules and regulations. This will happen when we license the distribution,” wrote the minister.
.