This drama was unbelievable for its incongruities. Executives who hate trade unions, and would never permit them in their companies, formed one through the RWAs. Those who angrily condemn ordinary people for venting their frustration at injustices through demonstrations and ‘bandhs’ suddenly become votaries of protest. And those who had celebrated the death of the (admittedly inefficient and corrupt) Delhi Vidyut Board (DVB), began to long for its return.

Thirty-nine per cent of Delhi residents polled by the Times of India last week want the DVB back! Only 43 per cent say no to its return, 18 per cent "don’t know". Only 48 per cent believe privatisation has improved matters. Fifty-two per cent disagree or "don’t know".

Two reasons explain this change of mood. A short-term one is growing power cuts in Delhi after the peak of the summer. A longer-term reason is that privatisation has betrayed the hopes the elite placed in it three years ago. The hopes were that the distribution companies would remedy the DVB’s greatest malady — power theft by slum dwellers — substantially reduce corruption and inefficiency, while delivering better consumer service, including accurate billing and prompt complaints redressal.

This didn’t materialise. Power theft continues at 30 per cent-plus despite harsh action against slum dwellers. The distribution companies’ internal assessment is that slum dwellers account for under 5 per cent of power theft. Industries, hotels, and affluent residences account for the bulk.

As I write this, one distribution company is conducting raids on bungalows in Sainik Farms. It has just found an opulent home, which illegally connected an unmetered 10-kilowatt load, including 10 air conditioners, 6 geysers, and 96 lamps. Distribution companies’ employees reportedly collude with rich residents in tampering with meters so they slow down. As if in retaliation, the distribution companies have been installing fast meters. Many residents refuse to have the old ones replaced, even inspected. This is becoming a new non-cooperation campaign.

There’s no improvement in complaints redressal. Earlier, you at least got a belated response after dialling the DVB. Now, you get a call centre operator. Distribution companies give you plenty of information on where to pay your bill, but not a complaints number!

Faulty billing has become commonplace and bill collection more stringent. The quality of supply is appalling, with two to three daily power cuts in most districts. As one privatisation votary says: "We are back to the DVB days [in service]. But pay twice as much".

Delhi is India’s third region where extensive power-sector "restructuring" was undertaken, the first being Orissa 10 years ago, followed by Andhra Pradesh. These too witnessed sharp rate hikes, respectively 15 percent annually, and 35 percent in four years. Neither experienced efficiency improvement. Rather, they have seen profiteering by power generating and distributing companies, endless disputes between them, revenue shortages, and persistent transmission losses.

These in turn raise demands for unreasonable hikes, subsidies or "sweeteners" in violation of contracts. For instance, Delhi has pampered its distribution companies with ‘sweeteners’, including interest-free loans of Rs 1,416 crores and a Rs 850-crore subsidy.

During its power privatisation experiment, India tried a second route too: buying electricity from independent power producers like Enron and AES. This has proved costly, inefficient and damaging to public welfare.

Of eight IPP fast-track projects, only three have materialised — all scandals. The worst was Enron. It set up gold-plated plant with costs padded up by 100 per cent. There was no competitive bidding. The power purchase agreement was opaque and loaded against the Maharashtra SEB. Dabhol’s guaranteed high plant-load factor meant MSEB backed down its own cheap hydro stations and paid Enron eight times more.

Dabhol was (partially) operational for under two years, but inflicted a Rs1,000-crore loss on MSEB, driving it into insolvency. Enron is now being revived under pressure from the US and multinational companies — at people’s expense. Other IPPs remain mired in scandals. India’s power privatisation experience isn’t unique. It’s unpleasant elsewhere too. It shows that private companies aren’t more efficient, nor produce cheaper power. They look for "regulatory bargains" through high returns, and indulge in cherry-picking affluent customers. They won’t go to rural or poor neighbourhoods. The logic of profit and imperatives of public service don’t match. This creates discontent.

So there’ve been grassroots anti-privatisation revolts in Australia, Brazil, Canada, Colombia, France, Indonesia, Mexico, Senegal, South Africa, South Korea, Thailand, and the US. South Africa witnessed a mass campaign to reconnect disconnected power lines to poor shantytowns. In Sri Lanka, South Korea, Mexico, Brazil and parts of Canada, Australia and the US, privatisation has been halted. In Western Europe, it’s slowed down. Britain and Indonesia, which went headlong into privatisation, have come a cropper.

Privatisation hits the poor especially hard. Private companies sharply raise rates and disconnect those who can’t pay. There’s been a rethink on privatisation even in the World Bank, a major lender to privatisation (in excess of 75 percent of its power loans). It now admits privatisation is "no panacea". An official report (2003) notes that its power portfolio is one of its worst performers. Another report (2004) acknowledges failures, warning that unbundling "makes the regulatory task more complex. This is likely to be a problem in ... most developing ... economies".

Power multinationals too are withdrawing the world over because of high currency risks, demand volatility and political risks, including US companies Edison International, NRG, Aquila, CMS Energy, Duke Energy, Powergen and TXU, and Canada’s Hydro-Quebec.

The real issue in power is not ownership, but governance and accountability. There’s no evidence anywhere that private ownership produces better results.

There’s a powerful case for reforming the SEBs and other public enterprises-by stopping power theft, metering all electricity (only half is currently metered), improving efficiency, and fighting corruption in cooperation with workers’ unions. But privatisation is the wrong road. India must abandon it before other states go down the tube.

Praful Bidwai is a veteran Indian journalist and commentator