Electricity consumers resolve to continue the struggle against the anti-consumer policies of privatisation of power sector and installation of smart meters

 

Report of Convention of electricity consumers of South zone organized by All India Electricity Consumers Association

 

In a unified display of opposition of consumers to current electricity reform policies, the All India Electricity Consumers’ Association (AIECA) organized the South Zone Electricity Consumers Convention on October 26, 2025. Held at Gandhi Bhavan, Bangalore, the convention was part of the ongoing all-India protest movement. The primary demands highlighted were the immediate withdrawal of the draconian draft Electricity Amendment Bill 2025, to stop the privatisation of electricity and to halt installation of Smart meters. More than 300 consumer delegates across southern states of Andhra Pradesh, Telangana, Kerala, Karnataka, Puducherry, and Tamil Nadu participated in the convention.

The convention was inaugurated by Shri. Swapan Ghosh, President of AIECA, who participated through audio speech as he was unable to attend physically due to ill health. In his inaugural address, Shri Ghosh highlighted critical concerns regarding the shift of electricity from a public service to a commodity designed for profit-driven corporations. He strongly contended that the power sector, initially built using public money, has been “destroyed and handed over to corporates for profit.” Shri Ghosh attributed the roots of this privatization drive to the globalization and liberalization policies of the early 1990s, accelerated by the Electricity Act 2003. He also highlighted recent privatization attempts, specifically the proposed Electricity (Amendment) Bill, 2025, and the “backdoor” administrative means seen in Union Territories like Chandigarh and Puducherry.

Shri M.G. Devasahayam, Author, Former IAS Officer and Former Chairman of Haryana Electricity Board, sharply criticized the privatization of the power sector. He said privatisation in electricity sector started in the name of reform 30 years back. It was carried out on the order of World Bank with the aim of attracting foreign investment. He warned that the draft Electricity (Amendment) Bill 2025 imposes cost-reflective tariffs which essentially will eliminate essential cross-subsidies currently benefiting farmers and residential users. According to him, the use of Smart Meters serves as a coercive mechanism designed to increase prices. Shri Devasahayam concluded that the Central Government is mandating the sale of public utility stakes to private entities, fundamentally transforming electricity from a “public good for public welfare” into a “private good for private welfare” dictated by market forces.

Shri S. Gandhi, President of the Tamil Nadu Power Engineers Society and Advisor to AIECA, asserted that electricity is a shared national resource that must not be privatized for profit. He noted that the Union Government has brought the amendment bill for sixth time. He raised alarms over the push for smart meter which imposes a massive financial burden on states (citing a Rs. 4320 Crore expenditure in Tamil Nadu with an 18% Union share) that will ultimately devastate the 70 lakh low-income consumers using less than 100 units per month.

Shri Samar Sinha, Working President of the AIECA, opened by tracing the power sector’s shift from state control to private generation entry after 2003. He said now the private operators are pressurising the government to hand over the distribution of electricity. He emphasised how the Electricity (Amendment) Bill, 2025 is drafted to benefit corporations. The proposed Bill mandates Electricity Regulatory Commissions to determine the cost-reflective tariffs, which simply means guaranteeing the maximum profit for the private owners.

Despite failed experiments of in different states and abroad, the government remains keen to proceed to satisfy corporate “desire.” He concluded by calling for sustained, united movements and local conventions to organize resistance.

Shri K. Somashekar, AIECA Vice President, strongly condemned the continuous transformation of electricity from a public service into a commodity. Somashekar condemned both the proposed 2025 Bill and “backdoor” privatization via administrative orders. He warned that the rollout of Pre-paid Smart Meters will enable dynamic pricing, solely benefiting capitalists. He asserted that this convention as the launch of a vital people’s movement to resist this corporate capture.

Shri Vaddde Sobhanadreeswara Rao, Convener of Samyukta Kisan Morcha (SKM), Andhra Pradesh, Former Member of Parliament, Former Agriculture Minister could not attend the Convention due to ill health. His written speech read out and circulated among the delegates.

Shri. B. Dileepan, State Vice President of the Janakeeya Prathirodha Samithi (JPS), Kerala, strongly condemned the political consensus surrounding energy sector exploitation, alleging that ruling parties are uniting to allow corporations to dictate power usage.

Shri K Venugopal Bhat, General Secretary AIECA presided over the Convention. In his concluding speech he said the need of the hour is to build up sustained movement against both the central and state governments, as they are making the power sector a hunting ground for monopoly capitalists.

Shri Ajay Chatterjee, Treasurer AIECA, Smt. Deepa, All India Kishan and Khet Majdoor Sangathan (AIKKMS), Shri V Gnanamurthy from Karnataka, Shri P Mohan from Tamilnadu, Shri K Surendran from Kerala, Shri Subbareddy from Andhra Pradesh and Shri Sivakumar from Pondicherry also spoke on the occasion.

The convention concluded with a collective resolve to continue the struggle against the anti-consumer policies and build up consumer organisation in grassroot level in different states.

 

 

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