CERS for scrapping GUVNL

Ahmedabad, July 30 (UNI) The Consumer Education and Research Society (CERS) here has urged state Energy Minister Saurabhbhai Patel to scrap the Gujarat Urja Vikas Nigam Ltd (GUVNL), a holding company for six state-owned entities in the power sector which include one generation, one transmission and four distribution companies.

''Let the six entities, which have been working under the regulated framework of the Gujarat Electricity Regulatory Commission (GERC), work independently and be made accountable to the Commission. A holding company like the GUVNL has no role to play in monitoring the affairs or performance of these entities,'' the CERS has urged Mr Patel.

The CERS has pointed out that while unbundling the Gujarat Electricity Board (GEB), the Gujarat Government had assigned the following functions to the GUVNL: to carry out the residual functions of the erstwhile GEB, to co-ordinate the activities of its six entities, to determine their economic and financial objectives and targets, to review, control and guide their performance, to carry out business of purchase, procurement, sale, supply and trade of electricity, and to plan, promote and develop efficient and reliable power trading system.

The generation, transmission and distribution companies are, thus, incapable of carrying out their business independently, though headed by managing directors of the IAS cadre, the CERS has said.

There are only few states like Maharashtra, Madhya Pradesh and Uttar Pradesh which have holding companies, the CERS has said.

However, states like Andhra Pradesh, Delhi and Karnataka, which are rated among the top five companies by the Ministry of Power, function without holding companies, the CERS has pointed out.

The distribution companies sign power purchase agreements (PPAs) directly with state-owned or private generating companies and suppliers and, therefore, one fails to understand the role of the GUVNL in the power sector of Gujarat, the CERS has said.

The expenditure on GUVNL, which runs into crores of rupees, is unnecessarily being passed on to the consumers, the CERS has said.

UNI