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ELE.06   :   RLPP   over   State-owned   Transmission   Companies

Pre-requiste readings : RLPP

  1. Problem in electricity transmission
  2. Solution? ELE.06
  3. Advantages of ELE.06
  4. Draft of the act to create procedure ELE.06

Problem in electricity industry

A district/state cannot have 10s of electricity transmission networks. At most, it can have 2-3 tranmssion networks. And most of the time --- tranmission is a monopoly i.e. only one netwrok can exist in a given place. In such case, IMO, it would better that electricity transmission is managed by a company owned by district or state. ELE.06 is a procedure to manage such district-owned transmission company.

Solution? ELE.06 - RLPP over electricity transmission company

  1. The District-owned electricity transmission company can be formed by an Act or Resolution in District Panchayat. The citizens may pass this Act using LM.01.

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

  3. The Chairman will decide the per unit per kilometer transmission charge for transisssion of electricity. The State Regulator may put a cap in the charge. In addition, after the approval of citizens by procedure #LM.01, the Chairman may collect a property tax from the citizens to builkd/upgrade the infrastructure.

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

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

Collecting transmission costs

The Chairman of the electricity transmission company will decide the per unit per kilometer charge for transmission. Now say a generating company is in district A and end-user is in district E, and there are districts B, C and D in-between. Each district can decide the charge per unit per kilometer basis. The State Regulator may set an upper limit. The charge can be paid by the supplier or buyer or both in some ratio.

Also, several district may form a district-group to have a COMMON transmission company. In such case the generator and distrubtors may fall within the same area.

Advantages of ELE.06

ELE.06 will reduce the cost of electricity transmission.

Draft of the act to create procedure ELE.06

To enact ELE.06, two laws need to be passed, one in Assembly and another District Panchayat. I have drafted the texts for those laws. To see the draft, please click here.

     Now citizens can ask MLAs and Panchayat Members to pass this Act. But IMO, it will be wiser for citizens to first enact procedure LM.01 and LM.02, and then use LM.01 and LM.02 to pass this ELE.06 drafts WITHOUT any help from MLAs and Panchayat Members. To know about procedure LM.01, please click here and to know about procedure LM.02, please click here.

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

Next - ELE.07 : RLPP over District-owned Electricity Generation Company