AIPEF demands immediate meeting of Forum of Regulators to stop black marketing in energy exchange by private operators during crisis: Expert Committee needed to fix responsibility of Coal Crisis

ALL INDIA POWER ENGINEERS FEDERATION

 AIPEF demands immediate meeting of Forum of Regulators to stop black marketing in energy exchange by private operators during crisis: Expert Committee needed to fix responsibility of Coal Crisis

All India Power Engineers Federation (AIPEF) has demanded that meeting of the Forum of Regulators be held immediately to stop black marketing in energy exchange mostly by private operators during the crisis. AIPEF has also demanded that Expert Committee be constituted to fix responsibility for the Coal Crisis and to evolve ways and means to avoid such crises in future.

AIPEF Chairman Shailendra Dubey, in a letter to Union Power Minister R K Singh has urged that the subject of putting a cap on profiteering  by IPPs  may be discussed and finalized  in the Forum of Regulators  in the letter and spirit of sec 62(1)a of Electricity Act 2003 immediately at top most priority to stop black marketing in energy exchange mostly by private operators during crisis.

AIPEF letter states since coal shortage is recognized as a major factor causing a hike in power rates, the Power Ministry must stress for ending future coal shortages otherwise the results of 2021 would repeat. In particular we refer to an interview by the then Coal Secretary GOI in 2016 (Sh Anil Swarup) who stated that in 2016 he had finalized an action plan over the next 5 years for meeting coal shortages.  However, this action plan was not implemented and now the Coal Secy GOI, has retired and it is up to the end user i.e. the Ministry of Power to take up the issue of coal shortages with concerned ministries so that the crisis of 2021 does not repeat.

AIPEF demanded that one expert committee with a CEA member should be constituted immediately to enquire about the coal shortage resulting in Power crisis so that the reason for the present crisis is technically analysed and accordingly stern action is taken against those responsible for the crisis.

AIPEF letter says that in India the present case of coal shortage leading to spike in energy rates, it was necessary for state regulators as well as CERC to intervene and impose price caps to prevent excessive profiteering by IPPs and also to ensure that unbearable burden is not put on consumers of Discoms.  Discoms are constrained to purchase high-cost power in order to limit the power cuts.  This leads to a deterioration of Discom finances which are already stressed. From this angle also price caps on merchant power plants are required and the present instances of exploiting shortage by raising the rate to the range of Rs 20 per unit in energy exchange must not be allowed. As per sec 62 (1)a of Electricity Act 2003 it becomes the duty of the Regulator to impose price caps.

AIPEF has also expressed its concern on closure of ultra-mega power plants of Tata and Adani at Mundra which are run by imported coal and have nothing to do with the present coal crisis in Country and also heavy backing down of IPP’s in Rosa, Lalitpur and Bara adding to the crisis.

Shailendra Dubey

Chairman

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