First set dept right, then increase power tariff

Power Minister Nilesh Cabral, while announcing the extension of the one-time settlement scheme until the end of the month, also said that there is a proposal from the Electricity Department to increase the power tariff, which the minister says is inevitable. According to the Power Minister, the government is granting a subsidy of Rs 437 cr every year to meet the electricity bill as the tariff has remained stagnant, and that the Joint Electricity Regulatory Commission does not permit such a huge subsidy. So the department has proposed a hike in the power tariff, and this proposal will be placed before the State cabinet, which will decide on the matter.

The subsidy that the government is doling out on the power charges may be high, as per the Joint Electricity Regulatory Commission norms, but the department has also been able to recover Rs 113 cr outstanding dues from consumers through the scheme in the last month itself. Given the ‘overwhelming response’ to the one-time settlement scheme, the Electricity Department has now decided to extend the scheme and keep it open until the end of this month so more consumers may benefit. This has helped the department to recover dues that may otherwise have been forfeited, and with the scheme having been extended, this will perhaps help increase the recover. 

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At the same time, the department has permanently disconnected 9197 connections for non-payment. These are mostly of residences that are closed or business that have shut. In that respect the department is doing a good job, but it needs to do more, especially since in the last few weeks the power situation in the State has been a matter of great debate in the past weeks. 

The Electricity Department, therefore, needs to take its efficiency level up a few notches, especially since in recent weeks the Aam Aadmi Party had taken the department to task over the electricity billing in the State. Even now the party has questioned whether a tariff hike is the only solution. During the debate in November between the Power Minister and an AAP representative, on the question of free electricity in Delhi, Cabral had responded saying, “What Delhi government is providing is a scheme, under which free power is given.” Another statement of his was, “Though the consumer is not paying the bill, it is being paid by the government. And from where is the government of Delhi paying it? From public money.” Both statements are absolutely true and cannot be faulted, but the valid question that does arise is what AAP has posed of whether the tariff hike is the only solution? 

Goa needs to look at more options when it comes to power billing, and an increase in tariff across the board should not be introduced, unless other alternatives at raising revenue are looked at. At least the domestic consumers have to be spared.

For that the power distribution and billing system in Goa requires to be streamlined before there is any increase in the tariff. In the past the minister has admitted to poor infrastructure and this being the cause of not being in a position to provide 24×7 electricity supply to the consumers. The poor infrastructure also leads to transmission and distribution losses that add to the revenue loss of the department. The department has to improve the electricity supply if it expects the consumers to pay more. It cannot expect to increase tariff and continue with the same poor quality of supply, which trips often, and where the voltage fluctuates continuously, especially in the rural areas. It is only if the department can improve its performance, that consumers can be charged more, not otherwise.

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