Orissa hesitant to introduce competition in power

The Orissa said it would “think twice” before introducing competition in the electricity distribution system.

“We are not opposed to competition in the power sector. Orissa is the first state in the country to privatise power sector. However, we need to study ground situation properly before taking any decision on opening up power distribution market,” said Energy minister Atanu S. Nayak.

Nayak was replying to a proposal mooted by director general of IPPAI Harry Dhaul at the workshop. Seeking introduction of competition in the electricity distribution system, Dhaul argued that the consumers should be given a choice to select their distributors. Like any other products, the consumers need to have rights to chose the distributors instead being forced to avail power from one specific company, he said.

“When consumers are given choice in telecom, television and many other products, they should be given equal opportunity in power sector also,” Dhaul said.Asking IPPAI to enter into competition in social sector, Orissa’s Energy secretary P K Jena observed that electricity was not essentially a market product. Power is more linked with social obligations of a government and therefore should reach the poor people on priority basis.