Ordinance to curb power theft soon

By J. Venkatesan

NEW DELHI, MAY 31. The Government has planned to promulgate an ordinance shortly to prevent power theft and to make it a cognisable and non-bailable offence with deterrent punishment.

According to highly-placed sources in the Law Ministry, such an ordinance had become necessary in the context of huge power thefts estimated to be of the order of Rs. 20,000 crores in terms of loss to the State Electricity Boards.

The Centre, concerned over the large-scale power thefts resorted to by anti-social elements and industrial units in connivance with some officials in the electricity boards, decided to put an end to such power thefts. The draft ordinance to be placed before the Cabinet for approval at its next meeting also envisages strict punishment to prevent power thefts. Another ordinance relating to conservation of energy and to make the power sector viable and attractive to foreign investors would also be promulgated soon. The sources said that the object of the ordinance was to ensure that there was proper utilisation of the energy at all levels and an upper limit on the consumption of power was also proposed though it was expected that there would be stiff resistance to such a proposal.

Electricity Bill

Meanwhile, the Government is also contemplating introducing the Electricity Bill, 2001 during the monsoon session of Parliament to replace the outdated Electricity Acts of 1906, 1936 and 1948. The sources said a modern law on the power sector was needed to meet the challenges of the emerging globalisation and to de- regulate and decentralise the generation and distribution of power. The Bill seeks to dismantle government monopoly in power generation and allows merger of SEBs with a Government company which could enter into a joint venture with private companies for the purposes of power generation and distribution.

Under the new Bill, area-wise contracts for collection of revenues from power distribution would be given to private parties, who would be authorised to disconnect the supply of electricity in case of non-payment of dues.

Also, there would be no supply of electricity without installation of meters. However, in rural and hilly areas power could be supplied without the mandatory installation of meters for a maximum period of two years on a standard rate, the sources added.

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