Privatisation of Power Dept to enhance efficiency, consumer satisfaction: UT

On privatisation of the Electricity Department, the UT Administration reiterated its commitment to ensuring a seamless transition that prioritises consumer satisfaction, employee welfare and sustainable growth. By leveraging private sector efficiency, Chandigarh is set to emerge as a model for power distribution reforms in India, stated the Administration.

In a statement issued today, it has said that privatisation is a major structural reform. “This initiative aims to improve service quality, operational efficiency and the financial health of the power sector, while ensuring affordable electricity for all consumers,” it stated. Through this reform, the Administration seeks to align Chandigarh’s power sector with global benchmarks and initiate drive for sustainable growth.

On key benefits, the Administration stated that privatisation would enable faster resolution of complaints, accurate billing and seamless customer interactions through advanced technologies such as real-time outage tracking, online payment platforms and integrated customer care offices. “Facilities like 24/7 call centres and WhatsApp support will enhance consumer convenience, ensuring solutions within minutes for issues like power outages or billing errors. Applications for new connections will be processed within 48 hours,” it stated.

The privatisation of the department will bring expertise in reducing aggregate technical and commercial (AT&C) losses, optimising power distribution and minimising wastage. With innovative strategies and smart technologies like advanced metering and grid management systems, Chandigarh’s transmission and distribution (T&D) losses are projected to decline from 9.77 per cent in FY 2024-25 to 7.60 per cent in FY 2025-26. This improvement will lead to better financial viability and reduced cross-subsidies, aligning tariffs closer to the actual cost of supply.

The Administration further stated that it would drive investments in modernising infrastructure, including smart grids and renewable energy integration, ensuring fewer outages and improved grid reliability. This transition supports the broader goal of energy security and a sustainable energy mix.

On employee welfare safeguards, the Chandigarh Administration has ensured that the rights and benefits of employees will be fully protected during the transition. Under the ‘Chandigarh Electricity Reforms Transfer Scheme,’ all existing service benefits, pensions and terminal liabilities of transferred employees are safeguarded through the Chandigarh Electricity Employees Master Trust. Employees will not be posted outside Chandigarh without their consent and grievances will be addressed by a dedicated committee.

By reducing AT&C losses, privatisation will free up government funds for essential public infrastructure projects, including roads, schools and healthcare facilities, fostering holistic urban development.