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ELE.03   :   RLPP   over   District-owned   Electricity   Distribution   Company

Pre-requiste readings : RLPP

  1. ELE.03
  2. Advantages of ELE.03
  3. Draft of the act to create procedure ELE.03

ELE.03 - RLPP over District owned Electricity Distribution Companies

  1. This procedure is useful ONLY if citizens of a district decide to have a district owned electricity company, with or without private distribution company. If the citizens decide to leave the distribution fully with private players, there is NO need for this procedure.

  2. The District-owned electricity distribution company can be formed by an Act or Resolution in District Panchayat (Council). The citizens may pass this Act using LM.01.

  3. The Panchayat Members will appoint the Chairman of the company. The citizens can replace the Chairman using RLPP.

  4. After the approval of citizens by procedure #LM.01, the Chairman may collect a property tax from the citizens to setup an infrastructure. The running cost MUST be covered ONLY by per-unit surcharge on electricity distributed. The Chairman will decide the surcharge.

  5. The district-owned electricity distribution company will hire the junior employees by competitive exams only. The citizens may expel an employee by Jury Trial.

  6. For specialized personnel, the Chairman may hire contractors without competitive exams. Such appointments may be cancelled by Jurors.

Advantages of ELE.03

ELE.02 will make electricity distribution business more competitive, and thus reduce the cost of electricity distribution. Now districts of some citizens may feel that a district-owned distribution company will be more appropriate than private companies becuase
  1. there is room only for ONE distribution company.
  2. the techonology in distribution has anyway stagnated for past several years or decades, and reached the optimum level. So one powerful reason to allow private companies, that there are more innovating in improving technology does not exist in the area of electricity distribution
In such case, ELE.03 may be superior choice than ELE.02.

My personal choice would be to have BOTH, a District-owned company, and 1-2 private companies. Each house should get power from atleast 2 or perpahs 3 companies, so that in case one company is expelled, there is no shut down. Plurality is ALWAYS better than monopoly, even if plurality has higher fixed costs.

Draft of the act to create procedure ELE.03

To enact ELE.03, one law need to be passed in District Panchayat. To see the draft of that law, please click here.

     Now citizens can ask Panchayat Members to pass this Act. But IMO, it will be wiser for citizens to first enact procedure LM.01, and then use LM.01 this ELE.03 draft WITHOUT any help from Panchayat Members. To know about procedure LM.01, please click here.

If you have any other question, please mail it to Thousand thanks in advance.

Next - ELE.04 : Procedure to control electricity consumption