PUDUCHERRY: Citing Puducherry Electricity Department's (PED's) high Aggregate Technical & Commercial (AT&C) losses for the 2022-2023 fiscal, Union Minister of State Shripad Naik stressed on the necessity to privatise the UT's power distribution system, to address operational inefficiencies, financial losses and provide a better consumer service.
In a written response to a query raised by PCC president V Vaithilingam in the Lok Sabha, Naik said the PED, despite its relatively smaller area of operation, registered 17.49% Aggregate Technical & Commercial (AT&C) losses during 2022-2023 fiscal year, exceeding the national average of 15.37%.
In comparison, private-owned power distribution companies in major Indian cities operate with AT&C losses below 8%, excluding the recently privatised Odisha utilities, and as such there is substantial room for improvement in the operational parameters of the PED, he said.
The union minister said despite having a high percentage of commercial and industrial consumers, the PED's collection efficiency stood at 92.59% during the same fiscal year, considerably lower than the national average of 97.27%. Moreover, the department's financial losses have surged from Rs 23 crore during the fiscal year 2020-2021 to Rs 131 crore during the fiscal year 2022-2023, placing a strain on the Union Territory's budget.
"Privatisation is expected to bring professional management, improve operational parameters, enhance service quality, and ensure reliable power supply," said Naik, adding such a move would benefit Puducherry citizens while safeguarding all stakeholders, including PED employees.
While the centre stood by its decision on privatisation, the local leaders continued to voice out different opinions, with Chief Minister N Rangasamy and Assembly Speaker R Selvam publicly expressing that the power sector would not be privatised, while Electricity Minister A Namassivayam sided with the centre.
Vaithilingam urged the chief minister to take up the issue with Union Finance Minister Nirmala Sitharaman, who had originally announced the privatisation plans, during her upcoming visit to Puducherry. "Rangasamy should assure the people that the PED will not be privatised," he said, adding the INDIA bloc's recent bandh was organised solely in the interest of the public.