VIJAYAWADA: Even as the Telangana government has been vehemently voicing its concerns over the proposed Electricity (Amendment) Bill, 2020, and has even decided to oppose the “draconian bill”, the Andhra Pradesh government is yet to take a stand on the issue.

While the bill has received mixed response with States like Telangana and Tamil Nadu opposing it, and a few credit rating agencies and independent power bodies supporting it, it is learnt that Chief Minister YS Jagan Mohan Reddy is studying the matter as some of the proposed amendments appear to usurp states’ authority,  given that power is in the concurrent list of subjects.

In a recent review meeting, the Chief Minister was briefed about the key amendments proposed in the bill and how they would impact the State.

While the officials remained tight-lipped, it is reliably learnt that a critical view of some amendments, especially introduction of an electricity contract enforcement authority (ECEA), centralisation of state electricity regulatory commissions’ powers, national load despatch centre (NLDC) having control over regional transmission networks, distribution sub-license and franchise, deemed adoption of tariff within 60 days and others were presented before the CM as they appear to be against the federal structure of the constitution.

The State, it is learnt, is of the view that Direct Benefit Transfer (DBT), although progressive, will be difficult to implement as State will have to pay the consumers the subsidy benefit up front. 

Especially with provision of free power to farming community being one of the flagship programmes of the state government, it may be difficult to implement DBT.

The State government extends subsidies worth Rs 11,311 crore to various sectors annually with agriculture and domestic subsidies accounting for Rs 8,354 crore and Rs 1,707 crore respectively.

The proposal that NLDC will have control over state transmission networks would also override the state’s authority and is against the spirit of concurrent list.

The provisions like centralisation of SERCs, ECEA, giving franchise or sub-licensing of existing distribution licenses to private players will not only make it difficult for the States to participate in dispute resolution, but also result in accountability issues.

Regarding the proposed national renewable energy policy, the general view is that there is no need for a redundant section as the national electricity policy already provides the same policy making on renewable energy.

CM YS Jagan Mohan Reddy is seized of the matter and is said to be examining it personally before taking a decision on whether or not the state’s views have to be represented to the Centre, officials in the know of things told TNIE.

However, the Andhra Pradesh Power Employees Joint Action Committee (APPEJAC) wants the state government to oppose the bill.  The committee has written to Energy Secretary Nagulapalli Srikant requesting the government to oppose the bill.