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Himachal Pradesh government withdraws decision, power board will manage sale and purchase of power

Himachal Pradesh government withdraws decision, power board will manage sale and purchase of power

Shimla, September 14: The Himachal Pradesh government has withdrawn its earlier decision to transfer the sale and purchase of power to the newly formed energy management wing following directions from the Electricity Regulatory Commission (ERC). The Himachal Pradesh electricity board will now handle the sale and purchase of its own power, especially during the crucial months of winter when demand increases in the state.

The Electricity Regulatory Commission found that the newly formed Himachal Pradesh Energy Management Cell lacks the necessary powers under the Electricity Act 2003 to handle the sale and purchase of power. The commission clarified that the board’s decision to transfer the office of Chief Engineer System Operation to this new wing was not in accordance with the Act. As a result, the office will now be re-integrated into the electricity board for the current financial year.

The government has directed the formation of a task force to review the provisions of the Electricity Act 2003 and ensure proper functioning of the new energy management cell in future. By the next financial year, the task force is expected to make the necessary changes to ensure that the office of Chief Engineer System Operation can be shifted to the energy cell with full compliance.

The controversy first surfaced when the government shifted the office of Chief Engineer System Operation along with its staff to the newly formed Energy Management Centre. The move was strongly opposed by power employees and engineers, leading to a joint protest and a petition filed in the High Court. While the court’s decision is still pending, the Electricity Regulatory Commission’s findings have already halted the operation of the energy centre due to legal deficiencies.

The office of Chief Engineer System Operation, set up years ago, plays a key role in managing power during winters, when Himachal Pradesh needs to buy additional power from neighbouring states. The board uses the banking system to provide power to these states, repurchasing it in the winter months when demand increases. Agreements with other states for power purchase are crucial to prevent power shortages in the state.

Power Secretary Rakesh Kanwar has issued the order confirming that agreements for power purchase in winter should be done through the appropriate office, which has the necessary powers. This decision will ensure that the state gets adequate power during the cold months and power supply remains smooth.

Electricity board employees, who had opposed the initial decision to shift the office to the new wing, have welcomed this reversal. Many had argued that the move did not comply with the Electricity Act, and the latest development has brought them relief.

The government, which had initially shifted the power purchase authority to the new agency with the support of the World Bank, is now aiming to rectify the situation, ensuring that the board remains the primary body for managing the state’s power needs.

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