P.S.E.B.: unbundling process begins?

      Punjab is one of the state, in the list of three, where electricity act-2003 has not implemented, and state government is getting extension to delay the act, courtesy sham’s, once again date is coming near of deadline that is 15th April, 2010, but it appears this time, considering the action of state government that, it is not in mood to supplication for further extension. The Bill seeks to create liberal framework of development for the power sector by distancing Government from regulation. It replaces the three existing legislations, namely, Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the Electricity Regulatory Commissions Act, 1998. The objectives of the Bill are "to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry Once electricity act-2003 comes into force then state electricity board has to be unbundled and make it into three companies –

1. Generation
2. Distribution
3. Transmission

The Electricity Bill was introduced in Lok Sabha in August, 2001 and subsequently referred to the Standing Committee on Energy for examination and report. The Committee submitted its report on 19th Dec,2002.Lok Sabha has passed the Bill on 9th April, 2003 and by Rajya Sabha on 5th May, 2003.The electricity act-2003 completely eliminates section 5 of ES act-1948, thereby abolishing the existence of SEB’s as statutory autonomous bodies, in other words the Electricity Act 2003 by totally eliminating the Section of ES Act 1948, clearly converts the SEB’s into Companies under the Company Act 1956. The Electricity Bill, 2003 passed by Parliament promises to usher in sweeping changes. The Bill seeks to provide a legal framework for enabling reforms and restructuring of the power sector. It simplifies administrative procedures by integrating the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the Electricity Regulatory Commissions Act, 1998 into a single Act. The Bill has become an Act now after the Presidential assent and notification by the Ministry of Power on June 10, 2003. The Electricity Act, 2003 is based on the principles of promoting competition, protecting consumers’ interests and providing power to all. The controversy of unbundling PSEB in three/ several companies had been going in for the last five to six years. Recently PSEB Engineers Association has suggested that it is possible to retain the board without disturbing the present set up of the PSEB to meet the legal requirements of Electricity Act 2003 .This can be done by creating a new company to “trade” power as per provisions of the Act 2003.
     Failure of reform process in different states is mainly due to political interferences in day to day working of the state power utilities. Delhi and Orissa are the best examples of failures of reforms. The performance of power sector and achievements depends a lot on Government support and policies. Gujarat is an example where the reforms have yielded results. 24 hour power supply without any cut during last one year is no mean achievement. Government is ensuring full and timely payment of subsidy besides states determination to check theft of power. Even the residences of political high ups have been checked for theft of power.However act extends to whole of India barring Jammu and Kashmir state.
     Considering the opposition, from electricity employees Union’s and supported by farmer union’s, if act comes into force,state government ask Deputy Commissioner's of all the districts to maintain law and order, in their respective areas with the help from police department. In a letter by home secretary of state, to all the D.C.’s, directing them to constitute ‘crises management group’, whose main purpose is to control the situation after Punjab State Electricity Board will become corporation, so on 15th April, 2010 it will be a day when mystery will unfold about state government decision if it implement electricity act-2003 or further delay it, and if act comes into force then what will be the mode of action of employees union’s and farmer union’s.