Working Group On Power Bill Given 14 Days To Submit Recommendations

Chennai: Power sector employees have objected to the constitution of the working group and the short duration given to it to submit recommendations on the Electricity Amendment Bill, 2025.

The Ministry of Power has asked the working group to submit its report within just 14 days of its constitution. All India Power Engineers Federation (AIPEF) objects to making undue haste on a matter of far-reaching national importance.

The Federation has also strongly objected to the inclusion of the Director General of the All India Discoms Association in the Working Group. This organization is a private body registered under the Societies Act, and several of its office-bearers have been openly advocating privatization of power distribution.

The proposed Electricity Amendment Bill, 2025 has sparked strong opposition from power sector unions, who argue that it accelerates privatisation and will lead to higher tariffs and financial distress for state-run distribution companies (discoms). Shailendra Dubey, Chairman of the AIPEF contended that Clause 14 allows private distribution licensees to use existing government-owned networks without investing in infrastructure. This enables private firms to “cherry pick” lucrative industrial and commercial consumers while public discoms are left serving low-paying rural and domestic users, weakening their finances and pushing them toward bankruptcy.

Dubey warned that tariffs for households and farmers could rise by 25 per cent or more as the Bill proposes phasing out cross-subsidies within five years. Without cross-subsidisation, domestic and agricultural consumers would bear the full cost of supply. He cited examples such as Chandigarh, where tariffs are expected to rise after privatisation despite being profitable earlier and Odisha, where previous private operators allegedly failed to maintain infrastructure and were later replaced. He also pointed to high domestic tariffs in Mumbai under private operators.

The proposed central bailout package as a push for equity dilution and private management control. The Bill also introduces penalties related to renewable purchase obligations and proposes a central electricity council, which undermines states’ authority and federal principles.

The discom losses are due to tariffs set below cost, unpaid government subsidies, and over ₹1 lakh crore in dues from government departments. The federation has suggested a model to the government that can cut losses.