The Himachal Pradesh government has reversed its earlier decision to transfer electricity sales and purchases to a newly formed energy management wing, following directives from the Electricity Regulatory Commission (ERC). The Electricity Board of Himachal Pradesh will now handle its own electricity sale and procurement, especially during the critical winter months when the state faces increased demand.
The Electricity Regulatory Commission found that the newly created Himachal Pradesh Energy Management Cell lacked the necessary powers under the Electricity Act of 2003 to handle the sale and purchase of electricity. The commission clarified that the board’s decision to transfer the office of Chief Engineer System Operation to this new wing was not compliant with the act. As a result, the office will now be reintegrated into the Electricity Board for the current financial year.
The government has instructed the creation of a task force to review the provisions of the Electricity Act 2003 and ensure the proper functioning of the new energy management cell in the future. By the next financial year, the task force is expected to make the necessary changes to ensure that the office of the Chief Engineer System Operation can be transferred to the energy cell with full compliance.
The controversy first emerged when the government shifted the office of the Chief Engineer System Operations, along with its staff, to the newly formed Energy Management Center. This move was met with strong opposition from the power staff and engineers, leading to a joint protest and a petition filed in the High Court. Although the court’s decision is still pending, the Electricity Regulatory Commission’s findings have already halted the operations of the energy center due to legal shortcomings.
The Chief Engineer System Operation’s office, which was established years ago, plays a critical role in managing electricity during winter when Himachal Pradesh needs to procure additional power from neighbouring states. The board uses a banking system to provide electricity to these states, retrieving it in the winter months when demand spikes. Agreements with other states for power procurement are crucial to preventing electricity shortages in the state.
Secretary of Electricity, Rakesh Kanwar, issued orders confirming that agreements for electricity procurement in winter must be made through the appropriate office, with the necessary powers in place. This decision will ensure the state has adequate electricity during the colder months and maintains a smooth power supply.
Employees of the Electricity Board, who had opposed the initial decision to transfer 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 moved the power purchasing authority to the new agency with World Bank support, now aims to rectify the situation, ensuring the board remains the primary body for managing the state’s electricity needs.
