CM Palaniswami writes to PM Modi opposing proposed changes to Electricity Act

Chief Minister Edappadi K Palaniswami on Saturday wrote to Prime Minister Narendra Modi opposing the Centre’s proposed amendments to the Electricity Act, 2003. In his letter, the CM mentioned that the proposed changes in the Act, interferes with the state’s power over the subject. He stated that certain provisions in the proposed bill are inimical to the state government and the public at large. He also added that the provision of direct payment of subsidy to domestic consumers and farmers can cause problems.

Earlier, Tamil Nadu Electricity Minister P. Thangamani said that the state government would oppose the draft Electricity Bill that has been sent to all the states for comments. Mr. Thangamani said that the bill has various provisions that include privatisation of electricity distribution through sub-distribution licenses and franchisees, creation of a new Electricity Contract Enforcement Authority to hear the dispute between an electricity generator and licensee and direct payment of subsidy to domestic consumers and farmers among others. He said that the new authority would interfere with the jurisdiction of State Electricity Regulatory Commission. He added that steps would be taken to protect the interests of domestic consumers and farmers who would be impacted by the bill.