Shimla, Sept 15,
In a significant victory for the Himachal Pradesh State Electricity Board (HPSEB) employees and engineers, the state government has reversed its decision to transfer the administrative control of the Chief Engineer (System Operation) to the newly created Himachal Pradesh Energy Management Centre (HPEMC). The government’s notification on September 13 cited emergent conditions and public interest as reasons for reverting control back to HPSEB for the financial year 2024-25.
The reversal followed strong protests by the Joint Front of electricity employees and engineers. The board accused the government of attempting to reduce its role by shifting control to HPEMC, a company formed in early 2024 to handle power procurement, energy bill payments, and signing of Power Purchase Agreements (PPAs). The formation of HPEMC met with legal hurdles, with the Himachal Pradesh Electricity Regulatory Commission (HPERC) pointing out that the entity was not formed in compliance with the Indian Electricity Act, 2003, nor registered with HPERC.
The shift of administrative control was heavily opposed by the electricity employees, who filed a petition in the Himachal Pradesh High Court challenging the government’s creation of the new energy center. Employees argued that the government could not designate extraordinary powers to an official managing multiple roles across organizations, citing potential conflicts of interest. The Chief Managing Director, who was overseeing three key posts, became the focal point of this criticism.
Furthermore, the recent decision marks a second victory for the union, which had raised concerns about the HPEMC’s inefficacy in managing critical tasks, including securing power for the state during the winter season. As a result of regulatory setbacks and pressure from the employees’ front, the office of the Chief Engineer has been returned to HPSEB.
The board employees have also been protesting broader state government policies, including the transfer of major projects from HPSEB to private entities and newly formed companies. The state’s decision to render heavy subsidies to consumers has worsened the board’s financial situation, with pending payments totaling Rs 2000 crore. The recent hike in power tariffs for industries and the waiver of GST on the sale of power are expected to generate some relief, but tensions remain high.
The situation continues to evolve, with a High Court ruling pending on the broader legal challenge raised by the board employees.
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