Employees, engineers of power utilities across India hold ceasework against privatisation

Shimla, Jan 01 (Representative) Approximately 27 lakh workers of power utilities across India on Tuesday observed a “One Hour Cease work” to protest against privatisation of the units and threatened to escalate their protest, potentially leading to indefinite strikes, if the Central and state governments did not change their policy. The cease work by employees and engineers of the power utilities is part of their agitation against privatisation, as they warned that such moves were threatening India’s energy security, sovereignty, and the welfare of millions of consumers and workers. In a memorandum addressed to President Draupadi Murmu, the protestors highlighted the serious implications of privatisation on consumers, workers and the national power sector. The memorandum, spearheaded by the National Coordination Committee of Electricity Employees and Engineers (NCCOEEE), outlines the adverse effects of privatising profitable and well-functioning public power utilities. The employees and engineers argue that privatisation threatens the country’s energy security, sovereignty and the welfare of consumers and workers.

The Chandigarh UT Power Department, a consistently profitable and efficient public utility, has become the epicentre of the privatisation debate. Despite its annual profits — ranging from Rs 225 crore in 2021 to Rs 365 crore in 2019-20 —and its low Aggregate Technical and Commercial (AT&C) loss rates, the department has been undervalued for privatization. the memorandum alleges. The base bidding price was set at Rs 174.63 crore, with crucial assets “shockingly” undervalued or ignored altogether, it claimed. The deal, which awarded the utility to Eminent Electricity Distribution Limited (EEDL), bypassed procedural safeguards like independent asset valuation by the Comptroller and Auditor General (CAG) and consultations with regulatory bodies. The memorandum alleged that this privatization will burden consumers with higher tariffs and strip workers of their public-sector benefits.

It also raises concerns about EEDL, a subsidiary of Calcutta Electricity Supply Corporation (CESC), known for some of the highest electricity tariffs in the country. According to NCCOEEE, in Uttar Pradesh, profitable utilities such as Purvanchal Vidyut Vitaran Nigam Ltd. (PVVNL) and Dakshinanchal Vidyut Vitaran Nigam Ltd. (DVVNL) are being “targeted”. Despite significant government investments under the Revamped Distribution Sector Scheme (RDSS) and uncollected dues of 66,000 crore, the utilities are being undervalued for private sale. The memorandum also highlighted Rajasthan’s move to privatise generation and battery storage projects and Telangana’s plan to hand over South Hyderabad Circle’s electricity distribution to the Adani Group. Furthermore, nationwide initiatives like private-sector smart metering and outsourcing Power Grid substations are causing widespread unrest among employees. The memorandum warned that continued disregard for the employees’ demands will force them to escalate protests, and could even lead to indefinite strikes.