HindustanTimes Thu,23 Oct 2014

Regulator asks power companies not to make fresh recruitments

Hitender Rao, Hindustan Times  Chandigarh, June 01, 2014
First Published: 12:36 IST(1/6/2014) | Last Updated: 12:38 IST(1/6/2014)

While Haryana government, in a please-all move, on Wednesday decided to regularise the services of several thousand contractual employees, including a few thousand working with the Power Utilities, the power regulator on Thursday yet again directed the two distribution companies not to make any fresh recruitment, including those against sanctioned posts unless specifically approved by the regulator.

The directions have been issued with a view to bring down the employee cost and improve efficiency in the functioning of the companies.

The Haryana Electricity Regulatory Commission (HERC) in its order on aggregate revenue requirement (ARR) for Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN) has also directed the two distribution companies to outsource as many services as could be done without compromising on the quality of service.

These, however, are excluding of technical services.

“The distribution licensees should endeavour to outsource additional services and link the rewards to efficiency parameters so that both the targets are met— cutting of employee cost and improved efficiency — and try to implement the franchise model in distribution management.

The Cabinet though on Wednesday allowed utilities to engage skilled or unskilled workers or retirees against vacant sanctioned posts through outsourcing.

The regulator said that employee cost included cost incurred by the distribution companies on working and retired employees.

The cost of working employees included salary, dearness allowance and other allowances such as HRA, LTC, medical reimbursement etc.

In case of retired employees, the distribution companies will have to discharge financial liabilities towards pension, gratuity and leave encashment benefit.

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